Audit Chamber: Lavra Reserve ineffectively spent UAH 29.5 million

Object in the Upper Lavra owned by the reserve. Photo: Screenshot from a video on facebook.com/1kozaktv

Following an audit by the Audit Chamber, significant shortcomings were identified in the use of budgetary funds by the National Reserve "Kyiv-Pechersk Lavra," amounting to UAH 29.5 million.

Auditors noted that due to ineffective management decisions, the reserve failed to utilize UAH 25.2 million of the approved budget and returned these funds to the state. This indicates that the reserve was unable to properly plan its expenditures and adjust its budget in a timely manner.

The Audit Chamber has raised concerns regarding the reserve’s misuse and inefficient use of funds. Specifically:

• UAH 21.2 million was allocated for bonuses to regular staff without proper justification.
• UAH 500,000 was paid to a senior researcher unlawfully dismissed in 2016 as compensation for forced unemployment.
• UAH 7.8 million was spent on bonuses for employees who did not perform creative, museum, or research functions.

Auditors also identified violations in the preparation of the reserve's budgets, including inadequately substantiated expenditures totaling UAH 1.9 million.

Additionally, the inspection highlighted that neither the reserve nor the Ministry of Culture had established a comprehensive internal control system. This resulted in negative financial and management trends not being identified promptly, leading to delayed problem-solving measures.

At the same time, the Audit Chamber report noted that the reserve was funded at only 51.2% of its required amount. This posed significant risks to both routine and capital projects:

• Routine expenses were funded at 82.3%, covering only part of the reserve's daily needs.
• Capital expenses were funded at just 9.7%, leading to significant delays and insufficient restoration and repair work on cultural heritage sites.

Due to chronic underfunding and inefficient use of budgetary resources, only 7 out of 140 objects underwent restoration work between 2020 and 2023. The total expenditure on restoration during this period was UAH 29.1 million. The audit revealed that 38 monuments remain in unsatisfactory condition, while 4 monuments are in critical condition, posing a real risk of collapse.

To address these shortcomings, the auditors recommended that the Cabinet of Ministers establish a procedure for developing the reserve’s organizational plan and approve a supervisory board. The Ministry of Culture was advised to create a management body for World Heritage Sites and a council on UNESCO heritage issues in Ukraine.

As reported by UOJ, the dire condition of objects in the Upper Lavra, managed by the National Kyiv-Pechersk Historical and Cultural Reserve, was previously highlighted online.

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