Audit of non-profit organisations in Ukraine: annual statements, grant projects, capacity
Independent audit of Ukrainian NGOs, charitable foundations and associations: annual financial statement audits, grant project and grant fund audits, verification of the use of grants, and preparation for a donor capacity assessment. Reports in English and Ukrainian, in the format your donor, board or charter requires.
- Annual financial statement audit of the NGO under ISA 700 with an auditor’s report
- Grant project and grant fund audits under ISA 805, ISRS 4400 or in the donor’s template
- Verification of the targeted use of grants and charitable contributions
- Reconciliation of the non-profit income report to the ledger and the financial statements
- Management letter with findings and recommendations
Which audit your organisation needs
Review of the year’s balance sheet and statement of financial results, targeted financing, assets and payroll. What the auditor checks: annual NGO audit.
When an audit is required by law and when by a donor or the charter: mandatory NGO and charity audit.
Audit of grant funds against the budget and the donor agreement, report in the EU, GIZ, UN agency or foundation template: grant audit for donors.
Audit of the targeted use of grants, charitable appeals and founder funds when the review is commissioned by a donor, a board or a partner: project and earmarked funding audit.
We prepare the organisation for the donor’s review: policies, accounting, procurement, internal control: donor capacity assessment.
We reconcile the NGO tax report to the financial statements and check the risks to non-profit status: non-profit income report, non-profit status.
Four steps with no surprises at the end
We review the charter, grant agreements and the requirements of the donor or the board, then send a proposal and a plan.
A document list for each area: accounting, grants, procurement, staff, assets. Secure file exchange, remote work across Ukraine.
Questions are raised as we go, not at the end, so you have time to locate documents and fix the books before the report.
Auditor’s report in English and Ukrainian, a management letter and answers to donor queries after submission.
What to read before an NGO audit
What donors require from the auditor, and how we meet it
Donors almost never select an auditor on price alone. Most terms of reference list requirements for the audit firm, and the organisation has to verify them before signing. Below are the four requirements we see most often, with our answer to each.
Three to five years of practice specifically with NGOs, not with commercial clients, is the usual bar. MK Audit has operated since 2000, and audits of civil society organisations, foundations and donor-funded projects are a standing practice area, not occasional work.
Donors want to see that someone else also reviews the firm. MK Audit belongs to DFK International, a network present in more than 90 countries with its own quality control requirements for member firms.
The firm must appear in the register of audit entities. MK Audit is in the Ukrainian audit register under No. 4624, company code 39419346. The register is public, so the data can be checked before the tender.
Audit under ISA, expenditure verification under ISRS 4400, a report under ISA 800 or ISA 805, an assurance conclusion under ISAE 3000. The report is issued in English and Ukrainian in one package.
If your terms of reference contain a requirement not listed here, send it with your enquiry. We answer plainly whether we qualify, before you spend time on the tender.
Whose donor rules we know by heart
Reporting formats, procurement rules and the view of eligible costs differ from donor to donor. We work regularly with reporting on projects funded by the European Union, GIZ, UN agencies, Sida, embassies and international charitable foundations. Among the organisations that recommend us are the International HIV/AIDS Alliance in Ukraine and the Centre for Democracy and Rule of Law.
If the organisation selects its auditor by tender, send the invitation and the terms of reference by email. We reply within one working day and state directly whether we meet the requirements.
Send the terms of reference before you submit, and we will tell you which report the donor actually needs: an audit, an expenditure verification or a review. This costs nothing and commits you to nothing.
Where needed we provide contacts of organisations whose donor-funded projects we audited, so the donor or the board can hear it first hand.
What we do for non-profit organisations
The form of engagement depends on who requires it and why. Below are all the service lines we run for civil society organisations, charitable foundations and donor-funded projects. If you are not sure which one applies, send us the terms of reference and we will tell you free of charge within one working day.
Confirmation of project expenditure for the donor under ISA 800, ISA 805 and ISAE 3000.
Verification of grant useAgreed-upon procedures under ISRS 4400 and a report of factual findings in the donor’s format.
Donor audit requirementsWhat the EU, GIZ, UN agencies, Sida and embassies require, and which report applies to you.
Civil society organisation auditAnnual statements, project activity, membership contributions and statutory activity.
Charitable foundation auditUse of contributions, administrative costs, reporting to donors and the supervisory board.
Humanitarian aid auditCustoms, recognition at assessed value, warehouse, beneficiary registers and reporting.
HACT micro-assessmentCapacity assessment before the first significant cash transfer from a UN agency.
ISRE 2400 reviewLimited assurance instead of a full audit where that is what the donor requires.
ISRS 4410 compilationPreparation of statements from your data where presentation is needed rather than assurance.
Audit readinessWe find what the donor would disallow while it can still be fixed.
Accounting for NGOsProject level accounting, payroll, taxes and reporting to donors and the state.
Knowledge baseArticles on accounting, donor reporting and the mistakes non-profits make most often.
What documents to prepare
We send the full checklist for your assignment together with the contract. Below is what it always contains, so you can judge the effort before we even talk about the fee.
The charter with all amendments, the state register extract, the decision including the organisation in the non-profit register, and minutes of the board and general meetings.
The financial statements, the non-profit income utilisation return, tax returns and payroll filings.
Trial balances, the accounting policy, restricted funding ledgers, statements for every bank account and cash records.
Grant agreements with budgets, reports to donors, records of donations and membership fees, and decisions on how funds were used.
Employment and service contracts, orders, timesheets, payroll registers, payroll tax filings and the allocation of salaries between projects.
Records for equipment bought with project funds, inventory counts, requests for quotations and supplier selection minutes.
What we are asked most often
Are you on donor shortlists?
Accreditation with a particular donor depends on that donor’s rules and selection cycle. Send us the terms of reference and we will say plainly whether we meet that donor’s requirements and whether we have comparable project experience to show.
How do we invite you to an audit tender?
Send the invitation and the terms of reference to mkauditsend@gmail.com. We reply within one working day, stating whether we meet the requirements, which report format is needed and which documents to prepare.
Is an audit mandatory for a Ukrainian NGO or charitable foundation?
By law a mandatory audit applies only to certain categories. In practice NGO audits are most often required by donors, the charter or the board, and by the terms of grant agreements. We review your documents and tell you which format you actually need.
How does an annual NGO audit differ from a grant project audit?
An annual audit covers the whole organisation and ends with an opinion on the financial statements. A grant project audit covers the expenditure of one grant against its budget and donor agreement, under ISA 805, ISRS 4400 or the donor’s template.
How long does an NGO audit take?
Usually two to four weeks after the complete document package is received. For an organisation running several grants at once we agree the timeline after reviewing the scope.
Do you work with organisations outside Kyiv?
Yes. The review is carried out remotely through secure file exchange anywhere in Ukraine; site visits only where the donor explicitly requires them.
What are the NGO audit requirements in Ukraine?
Ukrainian law does not require an annual audit from most NGOs and foundations; the requirement usually comes from a donor or the charter. The donor sets the format: a project audit under ISA 800 or 805, agreed-upon procedures under ISRS 4400, or an audit of the annual statements. Auditors test the use of funds against the budget, procurement, documents and the accounting records.
How much does an NGO audit cost?
It depends on the project budget, the number of projects and donors, the volume of documents and the report format. We give an estimate after a short call and a proposal after reviewing the task, usually within one business day.
Get a proposal
Describe the organisation, its donors and deadlines. We reply within 1 business day.
More in this section
Grant and donor project audit under ISRS 4400 or ISA 805, report in the donor format.
Audit of a single projectWe reconcile project spending with the budget and the donor rules.
Verification of grant spendingAgreed-upon procedures under ISRS 4400: eligibility of costs, procurement, source documents.
Final project auditClosing a grant: what the auditor checks and which documents to prepare.
Audit of a membership NGOMembership fees, grants and economic activity of an NGO.
Audit of a charitable foundationCharitable and humanitarian aid, targeted use of donations.
Donor requirements for auditWhat the EU, UN, GIZ and other donors ask for and how it looks in the terms of reference.