UAH 1 million per quarter of salary for auditors: will Ukraine become better at controlling budget funds under such conditions?
28 November 2024 17:30
ANALYSIS FROM 
Ukraine continues to adapt its public financial system to transparently manage funds from the European Union. One of the key steps has been the expansion of the powers of the Accounting Chamber and the State Audit Service of Ukraine (SAU) and the introduction of new remuneration conditions for its employees.
Komersant investigated whether the salaries of several hundred thousand hryvnias are really provided for the specialists of these two structures, which control the spending of budget funds in Ukraine in various sectors of the economy, and what is hidden in the details of the bills registered by the Verkhovna Rada.
State Audit Service: a new approach to personnel policy
on November 25, 2024, the Ministry of Finance registered in the Verkhovna Rada draft law No. 12245, which proposes radical changes to the legislation on the functioning of the State Audit Service. The main emphasis is on improving working conditions and expanding the human resources potential of the body.
The main proposals include:
- Separation of special positions. According to the draft law, some positions in the State Audit Service will not be subject to the Law on Civil Service. Instead, the conditions of their work will be regulated by separate legislation.
- New requirements for candidates. Citizens of Ukraine with a university degree (bachelor’s degree or higher) in audit, economics, law, accounting or information technology can apply for positions with special status. An important condition is proficiency in the state language and an impeccable business reputation.
- Transparency and competition. The appointment of officials with special titles will be based on a competition, the criteria for which will be determined by the Ministry of Finance.
New salaries for new challenges
One of the central points of the draft law is a new approach to the formation of salaries. Remuneration will consist of:
- Base salary. For example, the salary of the head of the State Audit Service will be 55 times the subsistence level, which is currently equal to UAH 115,610.
- Additional payments for special ranks (up to UAH 33,632 for the state controller of the first rank) and additional payments for access to state secrets (up to 10% of the salary depending on the level of secrecy).
- Bonuses, the amount of which cannot exceed 30% of the official salary.
For positions in Kyiv, a coefficient of 1.2 is provided, which will increase the salary of the head to UAH 138,732. In total, the monthly income of the head of the service may reach UAH 227 thousand, including all allowances.
A system of special ranks for officials (from the state controller of the I to VI ranks) was also introduced, as well as an annual paid vacation of 45 calendar days for the management and 30 days for other officials.
Almost UAH 350 thousand per month for a member of the Accounting Chamber
on October 30, the Verkhovna Rada also passed the draft law No. 10044-d on the reform of the Accounting Chamber. This body, which carries out external financial control, also received significant salary increases. According to the law:
- The Chairman of the Accounting Chamber will receive a basic salary of 55 subsistence minimums (about UAH 199,848, taking into account the Kyiv coefficient of 1.2).
- Another member of the Chamber will receive 48 subsistence minimums (approximately UAH 174 thousand).
In addition to the basic salary, there are additional payments for length of service, work with state secrets, and bonuses. In total, the salary of a member of the Accounting Chamber can reach UAH 348 thousand per month. Employees are also entitled to vacation leave of up to 45 days with payment of their average monthly salary.
Why such expenses and what are the challenges?
The official motivation for the reforms is to increase transparency in the use of funds, gain the trust of international partners, and ensure a high level of accountability of officials. In particular, the new rules allow for the appointment of managers with international training and certification. However, a number of questions arise: will the high level of salaries set a precedent for other government agencies to demand higher salaries? How to ensure efficiency and prevent possible abuse?
Despite the positive vector of changes, raising salaries requires additional budgetary expenditures, which may raise questions in the context of the state budget deficit. It also remains a challenge to ensure real transparency and effective control over the activities of the service.
Author – Anastasia Fedor
