Sustainable development and efficiency of public sector remain priority of governments. Hence, governments are concerned with assessment, plan and measure of functions performed by public institutions. However, various problems related to the methodology of functional review are indicated. The paper aims to develop the model appropriate for the planning and execution of functional reviews in public institutions. The research is based on the method of systemic analysis what let us carry out comparative analysis and synthesis of prevailing models developed by different scholars and practitioners. Suggested model contributes to sustainable development of public institutions by providing consistent guidelines relevant for various stakeholders.