In 2025, "municipal" auditors conducted 38 audits of the financial and economic activities of Kyiv municipal enterprises, structural divisions of the Kyiv City State Administration, and the District State Administration, and recorded violations totaling UAH 435,8 million, of which UAH 49,3 million was deemed permanently lost. What violations were discovered?
KV collage
This is more than what the "auditors" uncovered the year before last, when they uncovered violations amounting to 348 million hryvnias—although 108,2 million hryvnias were lost. As always, in 2025, the issues included unlawful inflated costs and volumes of work, discriminatory tenders tailored to specific participants, "strange" bonuses and allowances for employees, underpayment of rent for municipal property, and so on. Meanwhile, over the entire last year, Kyiv's leadership imposed "minor disciplinary sanctions" on only eight officials, none of whom were dismissed. Law enforcement opened 11 criminal proceedings as a result of last year's audits. However, it's clear that such cases will languish for years without producing any significant results—as is usually the case in such situations.
The Kyiv City State Administration (KCSA) learned of the instances of financial abuse and manipulation in the operation of city municipal structures recorded by "municipal auditors" last year from a report by the Department of Internal Financial Control and Audit of the Kyiv City State Administration (KCSA) on its performance in 2025.
As noted in the document, 38 audits (all scheduled, none unscheduled) were conducted in Kyiv's municipal enterprises, Kyiv City State Administration (KCSA) subdivisions, and Kyiv's district state administrations (DSAs) over the past year. Moreover, the annual report, apparently for the first time, only includes information on audits conducted by the Department of Internal Financial Control and Audit. Previously, such documents reported on all similar audits also conducted by internal audit units within various departments and offices of Kyiv City Hall and the DSA. At least, the 2025 report contains no data on other audits.
Based on these audits, the "auditors" identified violations totaling 435,8 million hryvnias, including 280,7 million hryvnias in violations that did not result in the loss of financial and material resources, 105,8 million hryvnias in violations with a risk of losses, and 49,3 million hryvnias in violations that resulted in losses. Furthermore, the "auditors" found that the city budget had lost 51,8 million hryvnias as a result of ineffective management decisions, and that the city authorities were at risk of losing another 866,3 million hryvnias.
Some of the aforementioned violations were corrected. According to auditors, losses were reimbursed and other violations were corrected totaling UAH 127,9 million, including UAH 11,7 million from previous periods (apparently referring to the return of funds lost in audits for previous years – KV). Furthermore, structural divisions of the Kyiv City State Administration, Kyiv Municipal Administrations, and the District State Administrations corrected deficiencies resulting from the ineffective use of funds totaling UAH 5,9 million and deficiencies and violations with a risk of losses totaling UAH 11 million.
According to the Kyiv City State Administration's Department of Internal Financial Control and Audit, the total financial impact of taking auditors' recommendations into account in 2024 is UAH 604,1 million. This reflects the utility resources saved and reclaimed. Meanwhile, the economic impact of utility providers and officials addressing their own mistakes is UAH 93,5 million. This refers to "future benefits from taking recommendations into account and correcting violations that did not result in losses."
The report also states that last year, materials on 55 audited entities were transferred to law enforcement agencies, 14 of which were from audits conducted in 2025 (the remaining materials relate to earlier inspections – KV) . As of December 31, 2025, law enforcement agencies had registered 273 criminal cases based on audit materials conducted by the Kyiv City State Administration's Audit Department or to which materials from such inspections were attached. Of these, 11 cases were opened based on the results of last year's audits.
And more violations
Kyiv City State Administration auditors also reported that 108 notices of suspicion have been prepared for "persons responsible for the violations" in all of these criminal proceedings, and indictments have already been submitted to the courts for 61 criminal proceedings. Furthermore, last year, based on the audit results, eight officials were held liable in various ways, four of whom were issued warnings, two were reprimanded, and the remaining two were deprived of bonuses and allowances or had such payments reduced.
Moreover, in 2025, during audits, auditors provided 570 recommendations for eliminating various violations and preventing them in the future, of which 347 were fully implemented, 91 were partially implemented, 96 were not implemented, and the deadline for implementation of another 36 comments had not yet arrived (as of the end of the year).
What the auditors found
In the 2025 report, the auditors grouped the "most glaring" deficiencies they identified into 13 areas, describing which specific entities committed violations and how they occurred. However, not all such cases directly resulted in losses or the risk of losses to budget funds. KV decided to describe some examples in certain areas—primarily those for which our media outlet had not previously prepared overview materials. KV wrote about some of the audits described in the 2025 report last year—for example, the audit of the Kyiv City State Administration's Department of Tourism and Promotion and its subordinate Kyiv City Tourism Development Center, as well as other audits.
As noted in the report, in the area of "Planning and Achieving Performance Indicators of City Targeted Programs" (CTP), auditors found that the Kyiv City State Administration's Department of Social and Veterans Policy failed to properly justify the performance indicators of the "Care. Towards Kyivites" program, making it impossible to fully assess the effectiveness of budgetary funds. The "auditors" also found that the same structural unit of the Kyiv City Hall, when implementing the same CTP in 2022-2023, achieved less than half of its approved indicators, and the auditors recorded significant deviations between planned and actual indicators.
In turn, in the "Budget and Utility Funds Management" area, it was established that the Kyiv City Social Services Territorial Center included a 15% seniority bonus for vacant positions in its budget requests without supporting documentation. According to auditors, this resulted in an unjustified planning of salaries estimated at 1,03 million hryvnias. The "auditors" also concluded that the institution's organized and functioning procurement system for the repair and maintenance of specialized vehicles does not fully reflect a rational and effective approach to budgetary use. Specifically, this system failed to take into account the cost of spare parts when planning repairs. Furthermore, the Center improperly controlled the issuance of waybills, which created risks of unconfirmed vehicle use and could have resulted in inefficient spending of 303,8 hryvnias.
Interesting details are also described in the "Remuneration" section. For example, the Department of Internal Financial Control and Audit of the Kyiv City State Administration has established instances of systematic non-compliance with the administrative documents of the Kyiv City Hall and the terms of concluded contracts at a number of public utilities. This concerns bonuses for
The existence of overdue debt, exceeding the limits of material incentives and financial plans, and paying additional payments without the approval of governing bodies (Kyiv City State Administration). Specifically, three municipal housing management companies (Dniprovsky, Svyatoshinsky, and Holosiivskyi districts) and the municipal green space department of Holosiivskyi district are mentioned in this context—all these institutions committed such violations totaling approximately 3 million hryvnias.
Moreover, according to the "auditors," the same municipal enterprise "Housing Stock Maintenance Management Company" also committed violations in the "Management of Municipal Property and Other Assets" category. The auditors found that this enterprise applied preferential lease terms for premises on its balance sheet, resulting in a loss of approximately 2,2 million hryvnias in 2024. Furthermore, this municipal enterprise also "sinned" in the "Lease Relations" category. Specifically, the auditors noted that this management company had no practice of imposing penalties on tenants, resulting in unpaid interest totaling approximately 346,9 hryvnias, representing lost profits for the enterprise. Among other things, the Dniprovskyi district management company lost approximately 1,09 million hryvnias in revenue in 2024 due to the misuse of leased premises—that is, when the contracts specified one purpose for such properties, but in reality they were used for another.
The said municipal enterprise also committed a violation in the "Housing and Utilities Infrastructure" category. Auditors discovered that this management company had not fully utilized the funds paid to it by Kyiv residents for routine repairs in 2022–2023. The company received UAH 114,8 million from residents of the buildings it services, but actually used UAH 29,5 million (26%).
But the capital's KPshki committed the most violations in the "Purchases" and "Repair and Construction Work" categories. In this context, auditors listed the "sins" of about fifteen enterprises and institutions.
Specifically, the municipal non-profit enterprise (NPE) Psychiatry inflated the scope and cost of work during a major overhaul of part of its building No. 11 at 103 Kyrylivska Street, including the installation of a civil defense structure, to the tune of 11,8 million hryvnias. Furthermore, during this overhaul, the enterprise accepted and paid for construction work that was not included in the main terms of the contract and design documentation, totaling 13,3 million hryvnias, and furthermore, inefficiently used 3,2 million hryvnias due to inflated prices for materials.
The Psychiatry Non-Profit Organization also purchased kefir at prices 41,2% above the market average. According to auditors' calculations, this resulted in inefficient spending of UAH 747,6. The institution similarly purchased certain medications—auditors recorded exceedances of market average prices ranging from 16% to 185%, resulting in inefficient spending of UAH 25,6. Furthermore, in some cases, the Psychiatry Non-Profit Organization prescribed procurement items in a manner that limited competition among tender participants and, consequently, discriminated against them. Auditors identified similar incidents in the procurement of containers for storing single-use sharp medical items, bakery products, dairy products, chicken eggs, cereals, generator repair and maintenance services, and other items.
The "auditors" also found similar violations of competition regulations in the work of the State Enterprise "Road Maintenance Department (RMD) for the Repair and Maintenance of Highways of the Shevchenkivskyi District" during the procurement of generators. Furthermore, during the procurement of generators (the same or different ones, it is unknown – KV), this enterprise failed to reject tender proposals that did not meet the requirements of the tender documentation. This RMD also lost 2,3 million hryvnias due to its failure to collect penalties from the contractor for violating the terms of one (or several – KV) contracts.
In addition to the aforementioned violations in the construction of the shelter at the Psychiatry State Non-Profit Organization, similar cases were numerous at other institutions. For example, auditors uncovered an overstatement of the volume and cost of work performed on the overhaul of the basic shelters and civil defense structures at Specialized School No. 89 at 4 Rybolovska Street (the client was the Department of Housing, Utilities, and Construction of the Pechersk District State Administration in Kyiv), an overstatement of 3 million hryvnias for the overhaul of the premises of the "Strange Castle" theater, including the adaptation of a basic shelter (the same institution was the client), and an overstatement of 2,7 million hryvnias for the overhaul of the civil defense structure at 39/1 Shelkovichna Street (the client was the St. Michael's Clinical Hospital of Kyiv).
The "list of violators" also included the Kyivzelenbud municipal association (KO). According to auditors, it inflated the scope and cost of work performed on the major renovation of a recreation park between Mykola Bazhan Avenue and Sribnokilska Street around Lake Serebryany Kruhiv in the Darnytskyi district by 4,6 million hryvnias. Furthermore, during the implementation of this project, Kyivzelenbud accepted and paid for construction work not specified in the main terms of the contract and design documentation, amounting to 4,5 million hryvnias, and also inefficiently used funds by inflating the prices of materials by 2,8 million hryvnias.
Meanwhile, during the reconstruction of sludge field dams No. 1 and No. 2 at the Bortnytskyi Wastewater Treatment Plant, the Kyivstroyrekonstruktsiya municipal enterprise overstated the volume and cost of completed construction work by UAH 102,7 million and inefficient use of funds by UAH 28,6 million. This occurred as a result of changes in the reconstruction technology and corresponding amendments to the contract for such work, which were not envisaged in the original design solutions. Auditors also found instances of overstated volumes of concrete foundation fill (a special structure that also serves as a foundation) and soil transportation (cut fringes).
What's happening with audits?
As KI regularly reports, Kyiv City State Administration auditors only audit a small portion of the structures subordinate to the Kyiv City State Administration and district state administrations—there are approximately 2 district state administrations in Kyiv alone. And despite the existence of obvious financial violations (both from routine "bureaucratic budgets" and from bureaucratic errors), they are held accountable.
Thus, from 2017 to 2024, the Department of Internal Financial Control and Audit of the Kyiv City State Administration, together with colleagues from other departments, conducted 482 audits in structures subordinate to the Kyiv City State Administration (as noted above, data on audits conducted by audit departments was previously included in annual reports). The highest number of audits during this period was conducted in 2023 (83 audits), and the lowest in 2022 (41 such "audits"). Over these eight years, "inspectors" from the Kyiv City State Administration counted financial violations totaling approximately UAH 5,7 billion—both those that resulted in the loss of resources by the capital's budget and those that did not result in direct losses. The "record" year for the capital was 2019, when the total of such violations recorded was UAH 2,2 billion, and the lowest number was recorded in 2023—only UAH 241,7 million.
Moreover, during 2017-2024, based on the results of audits, only 136 officials were brought to minor disciplinary responsibility for financial violations: the largest number of officials were “in trouble” in 2018 (48 people), the least in 2022 (only 5 officials).
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Let us also remember that financial "shortcomings" in the work of structures subordinate to the capital's mayor's office are found not only by specialists from its relevant structural divisions, but also by specialists from the State Audit Service.
In total, they conducted 137 such inspections between 2020 and 2024. These audits revealed various violations totaling UAH 444,5 million (in reality, this amount is clearly significantly higher, as not all violation amounts were recorded in the "general ledger"). These results were determined to be the best efforts by the Kyiv City State Administration (with violations amounting to UAH 118,8 million), as well as the Kyiv City State Administration's social policy (UAH 46,9 million), and culture (UAH 38,7 million) departments. According to the auditors, officials and utility providers routinely inflated the cost of work, overpaid employees, used municipal vehicles on dubious grounds, and so on. The results of 68 inspections were linked to criminal cases being investigated by various law enforcement agencies.
Oksana Koltik has headed the Kyiv City State Administration's Department of Internal Financial Control and Audit since March 4, 2016. Kyiv Mayor Vitali Klitschko has personally overseen the department's activities for several years now.
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