Обязателен ли аудит гранта для донора: когда нужна проверка проекта

When a grant audit is mandatory

A grant audit becomes mandatory in three cases:

• the grant agreement or donor policy expressly requires it;
• the grant amount exceeds a threshold set by the donor (in many programmes, above a certain amount per year or per project);
• an audit is envisaged at the end of the project or reporting period as a condition for recognising expenses.

Even when an audit is not mandatory, donors often regard an independent auditor’s report as grounds for continued funding.

Who usually requires a project audit

An audit of the targeted use of funds is most often required by UN agencies, the European Union, European governmental donors (GIZ, SDC, Sida), embassies, international charitable foundations and the headquarters of international organisations to which Ukrainian representative offices report.

Audit report formats

• Report of factual findings from agreed-upon procedures (ISRS 4400), the most common format for grants: the auditor performs the procedures agreed with the donor and describes the factual findings without expressing an opinion;
• auditor’s report on the project’s financial statements (ISA 800/805), when the donor requires a full special-purpose audit;
• management letter, with recommendations for addressing the deficiencies identified.

What the auditor checks

• the targeted use of funds in line with the approved budget;
• the completeness and quality of source documents;
• compliance with the procurement procedures set by the donor;
• the calculation and taxation of payments to the project team;
• accounting for foreign-currency funding and exchange-rate differences.

How much a grant audit costs and how long it takes

The cost depends on the size of the project budget, the length of the grant period and the number of transactions, and the timeline is usually from one to three weeks. We calculate the exact cost of the audit of grants and donor projects within 1-2 business days after receiving the grant agreement and the financial report.

How to prepare for a grant audit

Gather in advance the grant agreement with the budget, the project financial reports, bank statements, contracts and acts, procurement documents and HR documents for the team. Correct bookkeeping for non-profit organisations throughout the project makes the audit fast and painless.

Frequently asked questions

Is an audit mandatory for every grant?

No. An audit is mandatory only when required by the grant agreement or donor policy, often for grants above a defined amount or at the end of the project.

What report format does the donor need?

Most often, a report on agreed-upon procedures (ISRS 4400). The exact requirements are set out in the grant agreement; we prepare the report in the format the donor needs, in Ukrainian and English.

How long does a grant audit take?

Usually from one to three weeks depending on the volume of documentation and the donor’s deadlines. If needed, we work to tight deadlines.

Need a grant audit for a donor? Call +38 (050) 671-55-67 or write to mkauditsend@gmail.com.