1. Activities of the Municipal Financial
Strengthening Financial Initiative
(MFSI-II) Roll-out Project
2. INSTITUTE FOR BUDGETARY AND SOCIO-ECONOMIC RESEARCH (IBSER)
• The Institute for Budgetary and Socio-Economic Research (IBSER) is the Ukrainian public
nonprofit organization established in 2007 by leading Ukrainian experts with years of
experience in the financial area. The aim of IBSER is to facilitate the comprehensive and
stable socio-economic development of Ukraine via analytical and applied research, the
dissemination of information on budget and economic situation, and training programs.
IBSER Mission
• increasing transparency of the budget process and fighting corruption via the
implementation of advanced methods of budgeting and strategic planning at the central
and local levels
• promoting public awareness and facilitating public access to information about socio-
economic processes by disseminating information, conducting educational programs
• contributing to international integration, in particular via the organization of training
trips to foreign countries aimed at studying the best international experiences
• assisting democratic reforms by conducting analytical studies of budget and socio-
economic processes; observing taxation and budgetary trends to identify the impact of
fiscal and financial policy on sectors of the economy
3. Since 1st October 2011, IBSER has been implementing the new Municipal
Finance Strengthening Initiative (MFSI-II) Roll-out project supported by the
USAID (2011-2017). MFSI-II Activity Areas:
1
• Assistance in implementing reform of the public finance system
2
• Raising transparency and combating corruption
• Support and promotion for implementation of Citizens Budget
• Assist in implementation of the Extractive Industries Transparency Initiative (EITI)
• Strengthening Participatory Budgeting
3
• Preparation of analytical and educational publications
4. 1. Assistance in Implementing Reform of the Public Finance System
• Implementing PPB at the level of local budgets and improving it at the state budget level
• Improving the system of internal control and audit of public finance
• Developing a Public Finance Reform Strategy
What MFSI-II Project is doing:
• Improving the budget legislation
• Developing methodologies
• Conducting the training and public events
By means of:
• The final version of amendments to the Budget Code of Ukraine incorporates the provisions prepared
by MFSI-II experts
• The basic PPB methodology for local budgets developed and approved (total of 46 Orders by the
Ministry of Finance)
• The internal performance audit methodology developed by MFSI-II is to be approved by the State
Financial Inspectorate
• MFSI-II experts incorporated in the working group to develop a Public Finance Reform Strategy
Achievements:
5. 2. Improving Transparency and Combating Corruption
Assist in implementation of the Extractive Industries Transparency Initiative (EITI)
in Ukraine
•Assist in implementation of the Extractive Industries Transparency Initiative (EITI) in Ukraine (the Extractive Industries Transparency
Initiative - is an international independent standard of transparency, supported at the international level and implemented in 51
countries. Governments disclose how much they receive from extractive companies operating in their country and these companies
disclose how much they pay)
What MFSI-II Project is doing:
•The proposals of MFSI-II experts are included in the Terms of Reference for preparing of the 1st National Report on Extractive
Industries Transparency Initiative in Ukraine
•The experts of MFSI-II were part of the legislative draft's development team on EITI implementation in Ukraine
•MFSI-II Project competitively selected 3 NGOs for supporting the better public understanding, promotion of the EITI, supervision,
transparency and disclosure of the extractive industries in order to strengthen the impact and coverage (including the geographical
coverage) of the Multi-Stakeholder Group’s efforts and activities
By means of:
•MFSI-II facilitated the writing of the 1st National Report on Extractive Industries Transparency Initiative in Ukraine
• The legislation on EITI implementation in Ukraine was adopted (Law of Ukraine "On Amending Certain Legislative Acts of Ukraine on
Improving Transparency of Extractive Industries in Ukraine" Reg. No. 2591 of 7 April 2015, Resolution of the Cabinet Ministers of
Ukraine "Approving the procedure of ensuring transparency in the extractive industries“ Reg. No. 1039 of 2 December 2015).
• MFSI-II is strengthening its influence and extends its activities to all areas of Ukraine where the mining is conducted (acting through
such regional centers - civil society organizations)
Achievements:
6. 2. Improving Transparency and Combating Corruption
Support and Promotion for Implementation of Citizens Budget
• Assisting the MOF in launching the E-Data web-portal
• Providing expert consultations to MOF specialists in preparing the information and
analytical materials
What MFSI-II Project is doing:
• Developing and improving the legislative and methodological framework
• Training local specialists
By means of:
• Developing the E-Data web-portal methodology
• Delivery of trainings, which helped to start filling up E-Data web-portal with information
(4,320 local-level representatives)
Achievements:
7. 2. Improving Transparency and Combating Corruption
Strengthening Participatory Budgeting in Ukraine at the Local Level
• Assisting Kyiv and 46 other cities to implement Participatory Budgeting (PB) -- the process of
allocation of some part of city’s budget directly by its residents and putting such projects to
open vote
What MFSI-II Project is doing:
• Developing PB methodology and draft resolutions of municipal governments
• Delivering trainings and roundtables
• Providing subgrants to NGO for the developing of the electronic system that automize all PB
stages and to 4 NGOs to assist in holding the information and education campaign
By means of:
• The Concept of PB developed
• The electronic system installed in: Kiev, Baranivka, Berdyansk, Bilhorod-Dnistrovskyi,
Boyarka, Chernivtsi, Dnipro, Khmelnitsky, Kramatorsk, Lviv, Melitopol, Ohtyrka, Rivne,
Romny, Shepetivka, Ternopil, Zhovti Vody, Zhovkva, Zhytomyr, Vilnohirsk
• Public events for city residents and representatives of municipal government
Achievements:
8. 3. Preparation of Analytical and Training Publications
•Preparing quarterly publications, in which the performance of the consolidated, state, and local budgets is analyzed
•Monthly monitoring of key indicators of the budget system of Ukraine
•Publication of handbooks and methodological guidelines Planning of Local Budgets Based on Performance Program Budgeting
Handbook
- Modern Financial Planning Tools Handbook
- Use of Financial Instrument for Implementation of Local Infrastructure Improvement and Energy Saving Projects Methodological
Handbook
- The manual on EITI implementation in Ukraine
What MFSI-II Project is doing:
9. Extractive Industries Transparency
Initiative web site:
up to 80% of the content is about the
activities conducted by MFSI-II and
its subgrantees
The electronic system on participatory budgeting designed by
MFSI-II allows citizens to submit their projects for the
improvement of their cities and to vote for the selected ideas
and to track the realization of the winner projects
The electronic Bulletin on
MFSI-II activities is send
monthly out to the
representatives of state
authorities, donors, NGOs
and civic society quarterly
Our E-Achievements
10. The main objectives, which could be reached with the help of the
MFSI-II Project to overcome the existing obstacles
1
• Improving the system of planning of the state and local budgets
2
• Increasing transparency of the budget through improvement of its structure,
structure of PPB and budget documents
3
• Implementing an effective system for evaluating efficiency in using budget funds
4
• Increasing the level of citizen engagement in the budget process, in particular,
through implementation of Citizens budget, Participatory budgeting etc.
11. Long-Term Socioeconomic Impact of MFSI-II Project
1
• Creation of local capacity to support the PPB training process for specialists
2
• Financial stability of local budgets by means of effective planning and use of local budget funds
3
• Improving local democracy by strengthening of transparency and accountability in the budget process
4
• Improving local capacity in creating strong energy efficiency system
5
• Improving the environment to provide a positive impact on the national health and Ukraine’s demographic situation
6
• Strengthening Ukraine’s energy security as an integral part of the sustainable economic development of the country
12. Contacts
INSTITUTE FOR BUDGETARY AND SOCIO-ECONOMIC RESEARCH
15-v, Borysohlibska st., 2nd Floor
Kyiv, 04070, Ukraine
Tel.: (044) 353-58-68, 492-97-80, 492-97-81
Fax: (044) 492-97-83
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