Verification of grant use and audit of grant funds in Ukraine
Independent verification of grant use, audit of grant funds and audit of project financing: whether the money was spent in line with the budget and the agreement, whether it is supported by documents, and whether the results were delivered. Commissioned by donors, boards, founders or by the organisation itself before it reports. Report in English and Ukrainian under ISRS 4400, ISA 805 or the donor’s own template. Audit firm since 2000, Ukrainian audit register No. 4624, member of DFK International.
- Reconciliation of expenditure to the grant budget and agreement, line by line
- Testing of source documents on a sample or in full
- Procurement, staff costs, exchange differences, indirect costs
- Unspent balance and equipment purchased with grant funds
- Report of factual findings or ISA 805 audit report, plus a management letter
Four situations that call for verification of grant use
Verification of the use of grant funds at the donor’s request
A donor reviews its partner before the next tranche, at project closure or following a signal. We work to the donor’s terms of reference and report directly to the donor in its template. More on formats: grant audit for donors.
Audit of grant funds before the report is submitted
The organisation commissions the review itself before the report goes to the donor. We find ineligible costs and gaps in documentation while they can still be fixed, rather than after the donor has already disallowed them.
Audit of project financing from other sources
Earmarked funding from a founder, a project loan, public budget funds or community money. We check that the money went where it was meant to go and that the report on its use is accurate.
Review of partners and sub-grantees
The lead partner of a consortium is liable for all partners’ costs. We review sub-grantee reports before they enter the consolidated report to the donor. More: consortium and sub-grant audit.
Seven questions the review answers
Each line is compared with the approved budget; variances above the permitted percentage are recorded and checked for donor approval.
Project period, link to the activities in the agreement, prohibited cost categories, VAT, fines, hospitality. These are the items donors disallow first.
Contract, invoice, delivery act, payment record, and for staff a timesheet and a calculation. A missing link makes the cost unsupported.
Thresholds under the donor’s rules, collection of quotations, selection record, absence of conflicts of interest between buyer and supplier.
Conversion of costs into the reporting currency under the donor’s rule: daily rate, period average or the bank rate on the date the tranche was received.
Project indicators under the agreement: people reached, outputs produced, evidence for each. Donors do not accept a financial report without results.
Unspent funds at the end of the project, equipment and its fate under the agreement: transfer, continued use or return.
Which document you receive
A list of procedures agreed with the donor and what we found under each, without an audit opinion. The most common format for expenditure verification for the EU, GIZ, embassies and foundations. More: ISRS 4400 report.
The auditor’s opinion on the project financial report. Required when the donor asks for an audit rather than a verification. More: ISA 800, ISA 805, ISAE 3000.
Some donors provide their own auditor’s report form with a list of questions. We complete it and add a management letter with recommendations for the organisation.
Four steps with no surprises at the end
We review the grant agreement, the budget and the donor’s verification requirements, then send a proposal and the list of procedures.
A list of documents by budget line. Secure file exchange, remotely across Ukraine. Checklist: how to prepare for a grant audit.
We raise questions as we go, so that you have time to provide documents and correct the accounts before a finding reaches the report.
Report in English and Ukrainian, a management letter, and answers to donor questions after submission.
What clients ask most often
How does verification of grant use differ from a grant audit?
Verification under ISRS 4400 means performing agreed-upon procedures and reporting factual findings without an audit opinion. An audit under ISA 805 ends with the auditor’s opinion on the project financial report. Which one you need is usually stated in the grant agreement or in the donor’s terms of reference.
How much does verification of grant funds cost?
The fee depends on the project budget, the number of transactions, the sample size the donor requires and the report format. We send a proposal after reviewing the assignment, usually within one working day.
How long does it take?
One to three weeks after we receive the documents. For a small grant with a single tranche we often complete the work within a week.
What happens if you find ineligible costs?
We inform the organisation first and allow time to provide documents or explanations. Anything that cannot be supported goes into the report as a factual finding. If the organisation commissioned the review itself, it still has time to replace the cost or agree the variance with the donor before submitting the report.
Can you review sub-grantees in the regions?
Yes, remotely through secure file exchange. We visit a partner where the donor or the lead partner explicitly requires it.
Request a proposal
Tell us about the project, the donor and the deadlines. We reply within 1 working day.