There are many non-profit organizations in Ukraine, the majority of which receive funding from so-called donors. In most cases, each donor requires reporting on the proper use of funds and the amount of spend funds. In fact, this means that the organization must have documents and evidences that the grant funds have been spent on the purposes approved for it, without overspending or unscrupulous waste with a positive intermediate or final result.
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Ukraine receives more and more funds from international organizations for various public purposes, such as developing democracy, ensuring health, fighting corruption, etc. In this context it is more and more important for non-profit organizations to comply with the requirements of donors. Usually, audit of financial statements may be very interesting for donor before starting his cooperation with non-profit organization. In such case donor could obtain an overview of the transparency of recipient’s activities and understand if it can trust this organization and if it’s good idea to work with it. It is also important for non-profit organization to confirm the adequacy and sufficiency of the processes existing internal control.
In addition, at the end of the project implementation period, the donor usually requires report to be provided and in some cases this report should not only be compiled by a non-profit organization, but also confirmed by the auditor. Consequently, the successful audit of financial report and obtaining an unqulified audit report is an additional guarantee that the donor will confirm all expenses and consider the possibility of providing of a new grant for future goals and projects.
There are two types of financial reporting of non-profit organizations, which may require the Auditor report to the donor: “the project reporting” and “the general reporting”.
The purpose of the audit of the project reporting is to confirm each item of expenses, to compare it with the project budget and as a result to receive report on the conformity of the project financial reporting with the requirements of the grant agreement (in case of any deviations, provide recommendations for their elimination).
For more than ten-year audit practice of non-profit organizations, our company’s experts made audit of the reports of various non-profit organizations as part of their implementation of projects funded mostly by international donors working in Ukraine, such as:
- The Global Fund to Fight AIDS, Tuberculosis and Malaria;
- The EltonJohn AIDS Foundation;
- International Organization for Migration;
- The Royal Norwegian Ministry of Foreign Affairs;
- International Development Law Organization (IDLO);
- Swedish International Development Cooperation Agency (Sida);
- Swiss Confederation;
- Royal Danish Ministry of Foreign Affairs;
- Swiss Agency for Development and Cooperation (SDC);
- European Commission,
- World Bank (IBRD);
- National Democratic Institute for International Affairs (USA);
- Federal Republic of Germany;
- Ministry of Foreign Affairs of Canada;
- European Endowment for Democracy;
- Commonwealth Office of the Government of the United Kingdom of Great Britain and Northern Ireland;
- Robert Carr civil society Networks Fund (RCNF);
- Global Network of People living with HIV;
- The Rotary Foundation;
The list of our clients (non-profit organizations), who’s project reporting and general reporting was audited by us, amounts more than thirty organizations. Among them you can find large non-profit organizations, which in their turn are donors for smaller non-profit organizations, for example: The International Renaissance Foundation, All-Ukrainian Network of People Living with HIV / AIDS, ISAR Ednania and other.