Audit of a civil society organisation in Ukraine<\/h1>\n
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.<\/p>\n
![\"Audit](\"\/wp-content\/plugins\/mk-landing\/img\/handshake.jpg\")
<\/div>\n- \n
- Audit of the annual financial statements under ISA 700<\/li>\n
- Audit of project activity: expenditure of each project separately<\/li>\n
- Verification that grants and membership fees were used as intended<\/li>\n
- Reconciliation of the non-profit income use report with the accounts<\/li>\n
- Management letter with findings and recommendations for the board<\/li>\n<\/ul>\n<\/div>\nTimeline<\/span>2 to 4 weeks<\/strong><\/div>\nFee<\/span>proposal after we review the assignment<\/strong><\/div>\n<\/div><\/div>\n<\/section>\n
\n \nWhen an organisation needs an audit<\/div>\nFour situations we are usually called for<\/h2>\n<\/div>\n
\n\nDonor requirement<\/div>\nThe donor asks for an audit before the next tranche or at closure<\/b><\/p>\n
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<\/a>.<\/p>\n<\/div>\n
\nCharter and board<\/div>\nThe audit is required by the charter or by a resolution<\/b><\/p>\n
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.<\/p>\n<\/div>\n
\nGrant application<\/div>\nAn audit report is part of the application package<\/b><\/p>\n
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.<\/p>\n<\/div>\n
\nChange of management<\/div>\nHandover, a new accountant or a new director<\/b><\/p>\n
An independent review records the state of the accounts at the handover date. It protects both the person leaving and the person taking over.<\/p>\n<\/div>\n<\/div>\n
\n\nWhat the auditor examines<\/div>\nSix areas of the review<\/h2>\n<\/div>\n
\nTargeted financing<\/b><\/p>\nGrants, charitable contributions and membership fees: whether income is recognised correctly and matched against the costs of the project it was received for.<\/p>\n<\/div>\n
Project activity<\/b><\/p>\nExpenditure of each project separately, comparison against the budget, explanation of variances, allocation of shared costs between projects.<\/p>\n<\/div>\n
Procurement<\/b><\/p>\nThresholds, collection of quotations, the selection record, conflicts of interest. This is where donors disallow costs most often.<\/p>\n<\/div>\n
Staff costs<\/b><\/p>\nEmployment and service contracts, timesheets, allocation of salaries between projects, calculation and payment of taxes and social contributions.<\/p>\n<\/div>\n
Assets and balances<\/b><\/p>\nEquipment purchased with project funds, physical count, and unspent grant balances at the year end.<\/p>\n<\/div>\n
Non-profit status<\/b><\/p>\nRisks to the non-profit status: distribution of income, arm’s length terms, and whether the charter meets the Tax Code requirements.<\/p>\n<\/div>\n<\/div><\/div>\n<\/section>\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, the list of projects and the requirements of the donor or the board, then send a proposal and an audit plan.<\/p>\n<\/div>\n
02<\/b>Engagement letter and document checklist<\/strong><\/p>\nA list of documents by area: accounting, grants, procurement, staff, assets. Secure file exchange, remotely across Ukraine.<\/p>\n<\/div>\n
03<\/b>Fieldwork<\/strong><\/p>\nWe 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.<\/p>\n<\/div>\n
04<\/b>Report and follow-up<\/strong><\/p>\nAudit report in English and Ukrainian, a management letter, and answers to donor questions after the report has been submitted.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nWhat you receive<\/div>\nThree documents and one answer to every donor question<\/h2>\n<\/div>\n
\nAudit report<\/b><\/p>\nAn 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.<\/p>\n<\/div>\n
Management letter<\/b><\/p>\nA 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.<\/p>\n<\/div>\n
Support after the report<\/b><\/p>\nIf 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.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nKnowledge base<\/div>\nWorth reading before the audit<\/h2>\n<\/div>\n
\nAudit and reporting<\/b><\/p>\n- \n
- Annual NGO financial statement audit<\/a><\/li>\n
- When an audit is mandatory<\/a><\/li>\n
- Annual NGO report for donors<\/a><\/li>\n<\/ul>\n<\/div>\n
Grants and projects<\/b><\/p>\n- \n
- Verification of grant use<\/a><\/li>\n
- Procurement in grant projects<\/a><\/li>\n
- Staff costs and timesheets<\/a><\/li>\n<\/ul>\n<\/div>\n
Accounting and status<\/b><\/p>\n- \n
- NGO accounting through the year<\/a><\/li>\n
- Non-profit status in Ukraine<\/a><\/li>\n
- Non-profit income use report<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
\n \n\n\n\nFAQ<\/div>\nWhat clients ask most often<\/h2>\n<\/div>\n
\n\nIs an audit mandatory for a Ukrainian civil society organisation?<\/summary>\n
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.<\/p>\n<\/details>\n
\nHow much does the audit cost?<\/summary>\n
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.<\/p>\n<\/details>\n
\nHow long does it take?<\/summary>\n
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.<\/p>\n<\/details>\n
\nWhich documents should we prepare?<\/summary>\n
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.<\/p>\n<\/details>\n
\nDo you work with organisations outside Kyiv?<\/summary>\n
Yes. The audit is performed remotely through secure file exchange anywhere in Ukraine. We travel only where the donor explicitly requires it.<\/p>\n<\/details>\n<\/div>\n<\/div>\n
\nRequest a proposal<\/h3>\n
Tell us about the organisation, the donors and the deadlines. We reply within 1 working day.<\/p>\n\n
\n<\/p>
- <\/ul><\/div>\n
- Non-profit status in Ukraine<\/a><\/li>\n
- Procurement in grant projects<\/a><\/li>\n
- When an audit is mandatory<\/a><\/li>\n
- Annual NGO financial statement audit<\/a><\/li>\n