Audit of non-profit organisations in Ukraine: annual statements, grant projects, capacity<\/h1>\n
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.<\/p>\n
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- Annual financial statement audit of the NGO under ISA 700 with an auditor’s report<\/li>\n
- Grant project and grant fund audits under ISA 805, ISRS 4400 or in the donor’s template<\/li>\n
- Verification of the targeted use of grants and charitable contributions<\/li>\n
- Reconciliation of the non-profit income report to the ledger and the financial statements<\/li>\n
- Management letter with findings and recommendations<\/li>\n<\/ul>\n<\/div>\nTimeline<\/span>2-4 weeks<\/strong><\/div>\nFee<\/span>individual proposal<\/strong><\/div>\n<\/div><\/div>\n<\/section>\n
\n \nTypes of NGO audit<\/div>\nWhich audit your organisation needs<\/h2>\n<\/div>\n
\n\nAnnual statements<\/div>\nFinancial statement audit of an NGO<\/b><\/p>\n
Review of the year’s balance sheet and statement of financial results, targeted financing, assets and payroll. What the auditor checks: annual NGO audit<\/a>.<\/p>\n<\/div>\n
\nBy law, donor or charter<\/div>\nMandatory audit of NGOs and foundations<\/b><\/p>\n
When an audit is required by law and when by a donor or the charter: mandatory NGO and charity audit<\/a>.<\/p>\n<\/div>\n
\nGrant projects<\/div>\nGrant project and grant fund audits<\/b><\/p>\n
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<\/a>.<\/p>\n<\/div>\n
\nUse of funds<\/div>\nVerification of grant use<\/b><\/p>\n
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<\/a>.<\/p>\n<\/div>\n
\nBefore a grant<\/div>\nCapacity assessment and due diligence<\/b><\/p>\n
We prepare the organisation for the donor’s review: policies, accounting, procurement, internal control: donor capacity assessment<\/a>.<\/p>\n<\/div>\n
\nReporting and status<\/div>\nNon-profit income report, non-profit status<\/b><\/p>\n
We reconcile the NGO tax report to the financial statements and check the risks to non-profit status: non-profit income report<\/a>, non-profit status<\/a>.<\/p>\n<\/div>\n<\/div>\n
\n\nHow we work<\/div>\nFour steps with no surprises at the end<\/h2>\n<\/div>\n
\n01<\/b>Request and proposal within 1 day<\/strong><\/p>\nWe review the charter, grant agreements and the requirements of the donor or the board, then send a proposal and a plan.<\/p>\n<\/div>\n
02<\/b>Engagement letter and document checklist<\/strong><\/p>\nA document list for each area: accounting, grants, procurement, staff, assets. Secure file exchange, remote work across Ukraine.<\/p>\n<\/div>\n
03<\/b>Fieldwork<\/strong><\/p>\nQuestions are raised as we go, not at the end, so you have time to locate documents and fix the books before the report.<\/p>\n<\/div>\n
04<\/b>Report and support<\/strong><\/p>\nAuditor’s report in English and Ukrainian, a management letter and answers to donor queries after submission.<\/p>\n<\/div>\n<\/div><\/div>\n<\/section>\n
\n \nKnowledge base<\/div>\nWhat to read before an NGO audit<\/h2>\n<\/div>\n
\nGrants and donor projects<\/b><\/p>\n- \n
- How to prepare for a grant audit: checklist<\/a><\/li>\n
- Procurement in a grant project<\/a><\/li>\n
- Staff costs and timesheets<\/a><\/li>\n
- Final audit at grant closure<\/a><\/li>\n
- Consortium and sub-grant audits<\/a><\/li>\n<\/ul>\n<\/div>\n
Donors and standards<\/b><\/p>\n- \n
- EU grant audit<\/a><\/li>\n
- GIZ project audit<\/a><\/li>\n
- UN project audits under HACT<\/a><\/li>\n
- Embassy and private foundation grants<\/a><\/li>\n
- ISA 800, ISA 805, ISAE 3000 and ISRS 4400<\/a><\/li>\n<\/ul>\n<\/div>\n
NGO accounting and reporting<\/b><\/p>\n- \n
- Project-based grant accounting<\/a><\/li>\n
- Humanitarian aid accounting<\/a><\/li>\n
- NGO accounting through the year<\/a><\/li>\n
- NGO annual report for donors<\/a><\/li>\n
- Common donor reporting mistakes<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
\n \nSelection criteria<\/div>\nWhat donors require from the auditor, and how we meet it<\/h2>\n<\/div>\n
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.<\/p>\n
\n\nRequirement 1<\/div>\nExperience in the non-profit sector<\/b><\/p>\n
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.<\/p>\n<\/div>\n
\nRequirement 2<\/div>\nMembership of an international network<\/b><\/p>\n
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.<\/p>\n<\/div>\n
\nRequirement 3<\/div>\nRegistration and the right to audit<\/b><\/p>\n
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.<\/p>\n<\/div>\n
\nRequirement 4<\/div>\nA report in the form the donor accepts<\/b><\/p>\n
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.<\/p>\n<\/div>\n<\/div>\n
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.<\/p>\n<\/section>\n
\n \nWho we work with<\/div>\nWhose donor rules we know by heart<\/h2>\n<\/div>\n
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.<\/p>\n
\nInvite us to a tender<\/b><\/p>\nIf 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.<\/p>\n<\/div>\n
Free review of the terms of reference<\/b><\/p>\nSend 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.<\/p>\n<\/div>\n
References on request<\/b><\/p>\nWhere needed we provide contacts of organisations whose donor-funded projects we audited, so the donor or the board can hear it first hand.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nAll services<\/div>\nWhat we do for non-profit organisations<\/h2>\n<\/div>\n
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.<\/p>\n
\nGrant audit<\/b><\/p>\nConfirmation of project expenditure for the donor under ISA 800, ISA 805 and ISAE 3000.<\/p>\n
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\nVerification of grant use<\/b><\/p>\nAgreed-upon procedures under ISRS 4400 and a report of factual findings in the donor’s format.<\/p>\n
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\nDonor audit requirements<\/b><\/p>\nWhat the EU, GIZ, UN agencies, Sida and embassies require, and which report applies to you.<\/p>\n
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\nCivil society organisation audit<\/b><\/p>\nAnnual statements, project activity, membership contributions and statutory activity.<\/p>\n
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\nCharitable foundation audit<\/b><\/p>\nUse of contributions, administrative costs, reporting to donors and the supervisory board.<\/p>\n
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\nHumanitarian aid audit<\/b><\/p>\nCustoms, recognition at assessed value, warehouse, beneficiary registers and reporting.<\/p>\n
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\nHACT micro-assessment<\/b><\/p>\nCapacity assessment before the first significant cash transfer from a UN agency.<\/p>\n
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\nISRE 2400 review<\/b><\/p>\nLimited assurance instead of a full audit where that is what the donor requires.<\/p>\n
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\nISRS 4410 compilation<\/b><\/p>\nPreparation of statements from your data where presentation is needed rather than assurance.<\/p>\n
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\nAudit readiness<\/b><\/p>\nWe find what the donor would disallow while it can still be fixed.<\/p>\n
- Humanitarian aid accounting<\/a><\/li>\n
- GIZ project audit<\/a><\/li>\n
- Procurement in a grant project<\/a><\/li>\n
- How to prepare for a grant audit: checklist<\/a><\/li>\n