Audit of a charitable foundation in Ukraine<\/h1>\n
Independent audit of a Ukrainian charitable foundation: annual financial statements, verification that donations and grants were used for their stated purpose, audit of humanitarian aid, and a report for the supervisory board and donors. Published assurance is the strongest argument a foundation can offer new donors. Audit firm since 2000, Ukrainian audit register No. 4624, member of DFK International.<\/p>\n
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- Audit of the foundation’s annual financial statements under ISA 700<\/li>\n
- Verification that donations and public fundraising were used as stated<\/li>\n
- Audit of humanitarian aid: receipt, recognition and distribution<\/li>\n
- Audit of grant funds and donor-funded programmes of the foundation<\/li>\n
- Management letter for the board and the supervisory 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 \nWhat makes a foundation audit different<\/div>\nAreas that matter more here than in a company audit<\/h2>\n<\/div>\n
\n\nDonor trust<\/div>\nThe audit is a public argument<\/b><\/p>\n
A foundation raises money from people and companies who never see its accounts. An independent audit report published on the foundation’s website answers the most common question a donor has about where the money went.<\/p>\n<\/div>\n
\nMany small receipts<\/div>\nAppeals, banks, payment systems, cash<\/b><\/p>\n
A foundation receives thousands of small payments through different channels. The auditor tests whether all of them are recorded and reconciles payment system statements, not only bank accounts.<\/p>\n<\/div>\n
\nIn-kind support<\/div>\nHumanitarian aid, equipment, services<\/b><\/p>\n
In-kind aid has to be recognised at a measured value and its distribution supported by acts and signed lists. This is the area where documents are missing most often. More: humanitarian aid accounting<\/a>.<\/p>\n<\/div>\n
\nAdministrative costs<\/div>\nLimits set by the charter and by law<\/b><\/p>\n
Ukrainian charity law limits the share of administrative expenses. The auditor checks how the foundation splits administrative and programme costs and whether the limit is met.<\/p>\n<\/div>\n<\/div>\n
\n\nWhat the auditor examines<\/div>\nSix areas of a foundation audit<\/h2>\n<\/div>\n
\nReceipts<\/b><\/p>\nDonations, grants and public appeals through payment systems and banks: completeness of recording, reconciliation to statements, evidence for large amounts.<\/p>\n<\/div>\n
Use for the stated purpose<\/b><\/p>\nWhether funds were spent on the purposes announced to donors, set out in the grant agreement or defined by the charter.<\/p>\n<\/div>\n
Charitable assistance<\/b><\/p>\nBeneficiary lists, applications, acts and distribution records. Personal data is reviewed in line with data protection requirements.<\/p>\n<\/div>\n
Humanitarian aid<\/b><\/p>\nCustoms documents, recognition at measured value, storage, distribution and warehouse balances, and reporting to the authorities.<\/p>\n<\/div>\n
Administrative costs<\/b><\/p>\nAllocation between programmes and administration, compliance with charter and statutory limits, payroll and service contracts.<\/p>\n<\/div>\n
Non-profit status<\/b><\/p>\nRisk of removal from the Register of non-profit institutions, charter compliance with the Tax Code, and the income use report.<\/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 programmes and grants and the requirements of the supervisory board or donor, then send a proposal and an audit plan.<\/p>\n<\/div>\n
02<\/b>Engagement letter and document checklist<\/strong><\/p>\nA list by area: receipts, programmes, humanitarian aid, procurement, staff. Secure file exchange, remotely across Ukraine.<\/p>\n<\/div>\n
03<\/b>Fieldwork<\/strong><\/p>\nWe raise questions as we go, so that you have time to collect supporting documents and correct the accounts before the report is signed.<\/p>\n<\/div>\n
04<\/b>Report and publication<\/strong><\/p>\nAudit report in English and Ukrainian and a management letter. The report can be published on the foundation’s website and attached to grant applications.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nWhat the foundation receives<\/div>\nDocuments that work for the foundation’s reputation<\/h2>\n<\/div>\n
\nA report you can publish<\/b><\/p>\nAn audit report on the foundation’s annual financial statements in English and Ukrainian. Publish it on the website, attach it to the annual report and to grant applications. Signed by a certified auditor from the Ukrainian register, backed by DFK International membership.<\/p>\n<\/div>\n
Letter to the supervisory board<\/b><\/p>\nA separate document for management and the supervisory board: where distribution records are missing, how to split administrative and programme costs, which risks to the non-profit status exist. It does not need to be published.<\/p>\n<\/div>\n
Preparation for next year<\/b><\/p>\nA short list of what to change in the foundation’s accounting and document flow so that the next audit is faster and produces no findings. Where needed we help set up programme-based accounting.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nKnowledge base<\/div>\nWorth reading before a foundation audit<\/h2>\n<\/div>\n
\nAudit and reporting<\/b><\/p>\n- \n
- When an NGO or foundation audit is mandatory<\/a><\/li>\n
- Annual NGO financial statement audit<\/a><\/li>\n
- Annual report for donors<\/a><\/li>\n<\/ul>\n<\/div>\n
Aid and grants<\/b><\/p>\n- \n
- Humanitarian aid accounting<\/a><\/li>\n
- Verification of grant use<\/a><\/li>\n
- Embassy and foundation grants<\/a><\/li>\n<\/ul>\n<\/div>\n
Accounting and status<\/b><\/p>\n- \n
- Non-profit status in Ukraine<\/a><\/li>\n
- Non-profit income use report<\/a><\/li>\n
- NGO accounting through the year<\/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 charitable foundation?<\/summary>\n
Statutory audit by law applies only to certain categories of legal entities. For most foundations the audit becomes mandatory when the charter, the supervisory board, a donor or a grant agreement requires it. Many foundations commission an audit voluntarily in order to publish the report for their donors.<\/p>\n<\/details>\n
\nHow much does a foundation audit cost?<\/summary>\n
The fee depends on the volume of receipts, the number of programmes and grants and whether humanitarian aid is involved. We send a proposal after reviewing the assignment, usually within one working day.<\/p>\n<\/details>\n
\nCan we publish the audit report on our website?<\/summary>\n
Yes. A report on financial statements is intended for publication. Many foundations publish it together with the annual report and attach it to grant applications.<\/p>\n<\/details>\n
\nHow is humanitarian aid audited?<\/summary>\n
We review receipt and customs documents, recognition at measured value, warehouse records, distribution acts and signed lists, and closing balances. Reporting to the authorities is checked separately.<\/p>\n<\/details>\n
\nHow long does it take?<\/summary>\n
Normally two to four weeks after we receive the complete set of documents. For foundations with a very high number of small receipts we agree the timeline after reviewing the scope.<\/p>\n<\/details>\n<\/div>\n<\/div>\n
\nRequest a proposal<\/h3>\n
Tell us about the foundation, its programmes and the deadlines. We reply within 1 working day.<\/p>\n\n
\n<\/p>
- <\/ul><\/div>\n
- Non-profit income use report<\/a><\/li>\n
- Verification of grant use<\/a><\/li>\n
- Annual NGO financial statement audit<\/a><\/li>\n
- When an NGO or foundation audit is mandatory<\/a><\/li>\n