Ivano-Frankivsk Oblast, March 5-6, 2024. Over 140 heads of financial institutions and leaders from 100 communities, as well as financial specialists from 11 oblast military administrations, participated in the conference on State Financial Control Policy for Economic Well-Being of Communities, co-hosted by the USAID HOVERLA Activity and the State Audit Service of Ukraine (SASU).

The SASU Chair, Alla Basalayeva, emphasized that this conference, aimed at establishing cooperation, featured the first open dialogue between the SASU and communities. She also said:

"Today, we had an opportunity to share the key priorities of financial control measures with communities. We joined this event to change the communities’ perception of our work and show that we are partners. Our goal is not to record state losses during audits and inspections but to work preventively for effective budget spending, economic recovery, and successful future of Ukraine. We received a large tranche from the EU, and we need to align with its standards and justify the trust of the international community. We thank the USAID HOVERLA Activity for this timely event."

In preparation for the conference, communities completed a survey and submitted over 500 questions. These were used to structure the event. The experts from SASU and the USAID HOVERLA Activity provided answers to the most popular questions from participants on the following issues: audit risks and prevention of legislation violations during local budgets planning and execution; expenses to support defense forces; procurement; payroll fund; management of communal enterprises; new standards of financial control within European integration; and use of funds provided by international partners.

Yulia Kucher, the Chief Specialist on Budget and Financial Management of the Safiany Village Council in Odesa Oblast, highlighted, highlighted:

"Safiany community is the largest village community in Ukraine; we have 16 starosta’s districts and large volumes of procurement for energy resources, food, and medicines. We face many challenges, especially with the beginning of significant control over procurement. During the event, we learned about the risks connected to direct contracts, especially during the war. Also, we received guidance on communal enterprises management. I was surprised to learn about OLAF (European Anti-Fraud Office), which can come for an audit without warning at any time. This was a beneficial event by the USAID HOVERLA Activity, which showed me that auditors are trying to help us work in accordance with the law."

Participants discussed the specific examples of procurement violations and learned how to avoid them.

Oleh Demkiv, Deputy Head of the Lviv Oblast Military Administration and Head of the Financial Management Unit, noted:

"This is a unique conference. I have never seen so many finance specialists from communities and regions together communicating and exchanging experiences! The USAID HOVERLA Activity has chosen a very relevant topic - preventing violations and working preventively to increase the efficiency of fund usage. I respect the SASU for professional representation and openness. Together with colleagues, we concluded that such events are needed at the regional level as well - not only with auditors but also with treasury, tax services, and more. We are already planning the next steps and hope for USAID HOVERLA Activity support ."

The USAID HOVERLA Activity will continue to build cooperation with the SASU and support upcoming events, enhancing community knowledge on audits related to procurement and construction during recovery periods. HOVERLA support is aimed to ensure the communities have the necessary tools and knowledge to implement their mandates within the decentralization reform and recovery efforts led by the Ministry for Restoration.