Audit of grants, projects and non-profit organisations
Grant audit in the format your donor accepts
We verify project expenditure against the budget and the grant agreement and issue a report under the standard the donor cites: ISA 800, ISA 805, ISAE 3000 or ISRS 4400. Report in English and Ukrainian, remote work across Ukraine.
A full member of DFK International - Report standards
- ISA 800, ISA 805, ISAE 3000, ISRS 4400
- Typical timeline
- 2-4 weeks for a grant audit
- Report languages
- English and Ukrainian
- Register and association
- APOB No. 4624, member of DFK International
Short answer
What a grant audit is and what the donor receives
A grant audit is an independent check of project expenditure against the budget and the grant agreement. The donor receives an auditor's report in the format set out in its requirements: ISA 800 or ISA 805 (an opinion on the project financial report), ISAE 3000 (assurance on compliance with the agreement) or ISRS 4400 (a report of factual findings from agreed-upon procedures). Typical duration is 2 to 4 weeks, the report is issued in English and Ukrainian.
What exactly we verify
Expenditure against the agreement budget
Each budget line is compared with the approved budget and the donor’s eligibility rules. Variances are explained together with you.
Source documents and procurement
Contracts, acts, invoices, payments, procurement procedures under the donor’s rules. Sample or full check, as the terms of reference require.
Staff costs and timesheets
Employment and service contracts, timesheets, how a person's time is split between projects, and payroll taxes on project staff.
Allocation of indirect costs
The basis for allocating indirect costs between projects and the administrative percentage the agreement allows. We also check that the same cost has not been claimed from two donors.
Currency transactions and rates
Conversion of expenses into the reporting currency by the method set in the agreement, exchange differences, balances on project accounts.
Partner reports and sub-grants
Verification of partner and sub-grantee expenditure, reconciliation of their reports with the consolidated project report.
Non-profit status
For NGOs and foundations: whether activities and reporting meet the Tax Code requirements for non-profit organisations.
Internal control
Segregation of duties, payment approval, accounting policy. Observations go into the management letter.
Report formats we issue
- ISA 800
Audit of a project financial report prepared under the donor’s rules. Report with an auditor’s opinion.
- ISA 805
Audit of a single statement or element, for example an expenditure report for one project component.
- ISAE 3000
Assurance engagement other than an audit or review of financial information: compliance with the agreement, reported indicators.
- ISRS 4400
Agreed-upon procedures: the donor sets the list of procedures, we perform them and report factual findings without an opinion.
Which report format to choose: a comparison
The donor sets the format in the grant agreement or the terms of reference. If it only says "audit", we confirm with the donor which report they will accept before the work starts.
| Format | What we examine | What the donor receives | When it is required |
|---|---|---|---|
| ISA 800 | The project financial report prepared under the donor's rules | An auditor's report with an opinion on the project financial report as a whole | The donor asks for an audit report or audit opinion on the project financial report |
| ISA 805 | A single statement or element: expenditure under one component or budget line | An auditor's opinion on that specific statement | Only part of the expenditure needs confirming, not the whole project |
| ISAE 3000 | Non-financial information: compliance with the agreement, procurement procedures, indicators | An assurance report, reasonable or limited | The donor's ToR mentions assurance, compliance or verification of indicators |
| ISRS 4400 | Procedures listed by the donor: sampling expenditure, agreeing to documents and bank records | A report of factual findings without an audit opinion; the donor draws the conclusions | EU expenditure verification, donor-template checks, most grant ToRs |
Who needs a grant audit
NGOs
Annual audit and project audits for the donor, a report for the board
Charitable foundations
Donations, humanitarian aid, reports to international foundations
Partners in international projects
Partner expenditure in a consortium, verification for the lead applicant
Sub-grantees
A report for the grant-maker in the form it requires
How a grant audit runs
We read the agreement and the terms of reference
We identify the report format, sample size and timeline, and send a proposal within one business day.
Engagement letter and document checklist
A document list tailored to your project, access to a secure file exchange, a work schedule.
Fieldwork
Expenditure, source documents, partners, currency. Questions as we go so you have time to provide documents.
Report and post-submission support
Report in English and Ukrainian, management letter. We answer the donor’s queries together with you.
What donors and organisations say after an audit
Excerpts from reference letters. Full letters are on the reviews page.
During FY 2024 MK Audit conducted 7 HACT spot checks and 3 HACT micro assessments of Responsible Parties for UNDP in Ukraine. We confirm that we will continue our contractual relationship for 2025.
MK Audit’s auditors completed the work on time and showed a high level of professionalism and competence.
MK Audit was selected in a highly competitive open tender thanks to its experience in auditing non-profit organisations and international donor projects. We note the high professionalism and business ethics of its staff.
What the audit fee depends on
Audit costs are normally budgeted inside the grant agreement and covered by the donor. We prepare a proposal once we have seen the donor terms of reference and the project budget. Four things drive the amount.
Volume of source documents
The number of transactions and the sample size the auditor must test under the donor terms of reference.
Partners and sub-grantees
Whether spending by partner organisations on the ground has to be tested and their reporting consolidated.
Report format and language
A standard donor template or an extended agreed-upon procedures format with its own list of questions.
Deadline
Whether the audit has to be finished before the reporting deadline, which means putting a second team on the job.
MK Audit: a full member of the international association DFK International
DFK International is a global alliance of accounting firms and their expert teams, working closely together across over 430 offices in over 90 countries and territories. Each member firm, independently owned and managed, meets the DFK standard of excellence. For a donor or a foreign parent company this means an auditor working to the standards of an international association, with English-language reports read in any country.
An independent Member Firm of DFK International, a global alliance of accounting firms and their expert teams.
About DFK International- member firms
- 200+
- offices worldwide
- 430+
- countries and territories
- 90+
DFK International figures, February 2025
Reports in two languages. Auditor’s report and management letter in English and Ukrainian, in the format of the donor or the parent company.
Donors whose requirements we know. EU, GIZ, UN agencies, Sida, embassies, the Global Fund, international foundations.
Foreign-owned companies. Roche, B. Braun, Acumen International, Oriflame, Samsung, Kodak: audit, IFRS, accounting for representative offices.
Frequent questions about grant audits
Is a grant audit mandatory for the donor?
It depends on the donor and the amount: the threshold and report format are usually set in the grant agreement. Send us the agreement and we will check it free of charge.
What do we need to prepare?
The grant agreement with the budget, the project financial report, bank statements for project accounts, source documents, partner reports. The exact checklist follows the engagement letter.
How much does a grant audit cost?
We prepare a proposal after reviewing the assignment: the donor agreement, the budget and the volume of documents. Reply within one business day.
Do you issue the report in English?
Yes, in two languages, in the format the donor accepts. If needed, we answer the donor’s queries after submission.
Detailed pages by topic
In-depth material on the firm’s current website.
- Grant audit for EU-funded projects
- ISRS 4400 agreed-upon procedures in Ukraine
- Audit of UN-funded projects and HACT
- Grant and donor project audit
- Audit of a non-profit organisation
- Verification of grant spending
- HACT micro-assessment of a partner
- Humanitarian aid audit
- Donor requirements for audits
- What drives the cost of an audit
Send us the donor’s terms of reference
Within one business day we will tell you which report format is required and how long it will take. Proposal after reviewing your assignment.
Ukrainian register of auditors and audit entities, No. 4624. An independent Member Firm of DFK International, a global alliance of accounting firms and their expert teams.
or directly +38 (050) 671-55-67, Telegram