Audit of a charitable foundation in Ukraine
Independent audit of a Ukrainian charitable foundation: annual financial statements, verification that donations and grants were used for their stated purpose, audit of humanitarian aid, and a report for the supervisory board and donors. Published assurance is the strongest argument a foundation can offer new donors. Audit firm since 2000, Ukrainian audit register No. 4624, member of DFK International.
- Audit of the foundation’s annual financial statements under ISA 700
- Verification that donations and public fundraising were used as stated
- Audit of humanitarian aid: receipt, recognition and distribution
- Audit of grant funds and donor-funded programmes of the foundation
- Management letter for the board and the supervisory board
Areas that matter more here than in a company audit
The audit is a public argument
A foundation raises money from people and companies who never see its accounts. An independent audit report published on the foundation’s website answers the most common question a donor has about where the money went.
Appeals, banks, payment systems, cash
A foundation receives thousands of small payments through different channels. The auditor tests whether all of them are recorded and reconciles payment system statements, not only bank accounts.
Humanitarian aid, equipment, services
In-kind aid has to be recognised at a measured value and its distribution supported by acts and signed lists. This is the area where documents are missing most often. More: humanitarian aid accounting.
Limits set by the charter and by law
Ukrainian charity law limits the share of administrative expenses. The auditor checks how the foundation splits administrative and programme costs and whether the limit is met.
Six areas of a foundation audit
Donations, grants and public appeals through payment systems and banks: completeness of recording, reconciliation to statements, evidence for large amounts.
Whether funds were spent on the purposes announced to donors, set out in the grant agreement or defined by the charter.
Beneficiary lists, applications, acts and distribution records. Personal data is reviewed in line with data protection requirements.
Customs documents, recognition at measured value, storage, distribution and warehouse balances, and reporting to the authorities.
Allocation between programmes and administration, compliance with charter and statutory limits, payroll and service contracts.
Risk of removal from the Register of non-profit institutions, charter compliance with the Tax Code, and the income use report.
Four steps with no surprises at the end
We review the charter, the list of programmes and grants and the requirements of the supervisory board or donor, then send a proposal and an audit plan.
A list by area: receipts, programmes, humanitarian aid, procurement, staff. Secure file exchange, remotely across Ukraine.
We raise questions as we go, so that you have time to collect supporting documents and correct the accounts before the report is signed.
Audit report in English and Ukrainian and a management letter. The report can be published on the foundation’s website and attached to grant applications.
Documents that work for the foundation’s reputation
An audit report on the foundation’s annual financial statements in English and Ukrainian. Publish it on the website, attach it to the annual report and to grant applications. Signed by a certified auditor from the Ukrainian register, backed by DFK International membership.
A separate document for management and the supervisory board: where distribution records are missing, how to split administrative and programme costs, which risks to the non-profit status exist. It does not need to be published.
A short list of what to change in the foundation’s accounting and document flow so that the next audit is faster and produces no findings. Where needed we help set up programme-based accounting.
Worth reading before a foundation audit
What clients ask most often
Is an audit mandatory for a Ukrainian charitable foundation?
Statutory audit by law applies only to certain categories of legal entities. For most foundations the audit becomes mandatory when the charter, the supervisory board, a donor or a grant agreement requires it. Many foundations commission an audit voluntarily in order to publish the report for their donors.
How much does a foundation audit cost?
The fee depends on the volume of receipts, the number of programmes and grants and whether humanitarian aid is involved. We send a proposal after reviewing the assignment, usually within one working day.
Can we publish the audit report on our website?
Yes. A report on financial statements is intended for publication. Many foundations publish it together with the annual report and attach it to grant applications.
How is humanitarian aid audited?
We review receipt and customs documents, recognition at measured value, warehouse records, distribution acts and signed lists, and closing balances. Reporting to the authorities is checked separately.
How long does it take?
Normally two to four weeks after we receive the complete set of documents. For foundations with a very high number of small receipts we agree the timeline after reviewing the scope.
Request a proposal
Tell us about the foundation, its programmes and the deadlines. We reply within 1 working day.