This project was implemented as part of Phase II of the “Assessment of Municipal Financial Management Systems in Amalgamated Hromadas” under the U-LEAD with Europe Programme.
The primary goal of the project was to evaluate the level of administrative financial management capacity at the local level by analyzing the structure and procedures of public financial management (PFM) systems in selected amalgamated hromadas, and by developing recommendations for their improvement.
The assessment was designed to help hromadas:
● Better understand the requirements of the national public finance system;● Strengthen their capacity to manage financial resources independently;● Achieve strategic development goals and become more attractive for residents and business development.
The assessment methodology involved a combination of expert desk research, community surveys, and in-depth interviews with key local officials. Each step was carried out according to a predefined Methodology, which structured the evaluation across 10 thematic chapters reflecting the core functions of local financial operations.
Each chapter included expert recommendations tailored to two target levels:
● National government level – focusing on improving the regulatory and procedural framework;● Local government level – aimed at internal capacity building and system improvement based on local conditions.
To provide a comprehensive understanding and usability, all recommendations were summarized at the end of the report.
The results of the assessment serve multiple purposes:
● To identify hromadas where local governments effectively fulfill their fiscal and budgetary responsibilities and can serve as models or mentors for others;
And to highlight those hromadas that may require targeted support to improve their financial management systems.