Audit of a civil society organisation in Ukraine
Independent audit of a Ukrainian civil society organisation: annual financial statements, audit of project activity, verification of grant funds and of the use of contributions for their intended purpose. Report in English and Ukrainian, in the format your donor, board or general meeting accepts. Audit firm since 2000, Ukrainian audit register No. 4624, member of DFK International.
- Audit of the annual financial statements under ISA 700
- Audit of project activity: expenditure of each project separately
- Verification that grants and membership fees were used as intended
- Reconciliation of the non-profit income use report with the accounts
- Management letter with findings and recommendations for the board
Four situations we are usually called for
The donor asks for an audit before the next tranche or at closure
The most frequent reason. The donor wants evidence that previous funds were spent in line with the budget and the agreement. The report format is usually named by the donor: ISA 805, ISRS 4400 or its own template. More: grant audit for donors.
The audit is required by the charter or by a resolution
Many charters of Ukrainian organisations provide for an annual independent review. The board or the audit commission orders an audit of the annual statements in order to report to the members.
An audit report is part of the application package
Some grant makers require an audit of the latest year already at the application stage. Timing matters here: start about a month before the call deadline.
Handover, a new accountant or a new director
An independent review records the state of the accounts at the handover date. It protects both the person leaving and the person taking over.
Six areas of the review
Grants, charitable contributions and membership fees: whether income is recognised correctly and matched against the costs of the project it was received for.
Expenditure of each project separately, comparison against the budget, explanation of variances, allocation of shared costs between projects.
Thresholds, collection of quotations, the selection record, conflicts of interest. This is where donors disallow costs most often.
Employment and service contracts, timesheets, allocation of salaries between projects, calculation and payment of taxes and social contributions.
Equipment purchased with project funds, physical count, and unspent grant balances at the year end.
Risks to the non-profit status: distribution of income, arm’s length terms, and whether the charter meets the Tax Code requirements.
Four steps with no surprises at the end
We review the charter, the list of projects and the requirements of the donor or the board, then send a proposal and an audit plan.
A list of documents by area: accounting, grants, procurement, staff, assets. Secure file exchange, remotely across Ukraine.
We raise questions as we go rather than at the end, so that you have time to find documents and correct the accounts before the report is signed.
Audit report in English and Ukrainian, a management letter, and answers to donor questions after the report has been submitted.
Three documents and one answer to every donor question
An independent opinion on the organisation’s financial statements or a report of factual findings on a project, in English and Ukrainian. Accepted by donors, boards, audit commissions and grant competitions. Signed by a certified auditor from the Ukrainian register.
A separate document for the board: what to correct in the accounts and documents, which risks to the non-profit status we noticed, what to do before the next grant. It is not sent to the donor; it is for you only.
If the donor or grant manager raises questions after submission, we answer them together with you. Usually it takes one or two letters and the matter is closed without a further review.
Worth reading before the audit
What clients ask most often
Is an audit mandatory for a Ukrainian civil society organisation?
By law, statutory audit covers only certain categories of legal entities, and most civil society organisations do not fall within them. In practice an audit is ordered because a donor, the charter or a board resolution requires it. We review your documents and tell you which format applies to you.
How much does the audit cost?
The fee depends on the number of projects, the volume of transactions for the year and the report format the donor asks for. We send a proposal after reviewing the assignment, usually within one working day.
How long does it take?
Normally two to four weeks after we receive the complete set of documents. If the organisation runs several grants at the same time, we agree the timeline after reviewing the scope.
Which documents should we prepare?
Charter and register extract, financial and tax statements, trial balances, grant agreements and budgets, bank statements, procurement files, staff orders and contracts, timesheets. We send the full checklist together with the engagement letter.
Do you work with organisations outside Kyiv?
Yes. The audit is performed remotely through secure file exchange anywhere in Ukraine. We travel only where the donor explicitly requires it.
Request a proposal
Tell us about the organisation, the donors and the deadlines. We reply within 1 working day.