Financial audit of grants.
Our employees have experience in auditing financial statements prepared in accordance with the requirements of grant programs implemented both by the European Union, including in the form of Cross-Border Cooperation, and Grants received from national and international donor organizations.
We conduct our audit in accordance with:
International Standards of Auditing (ISA) 800 (Revised) – 800 (Revised), Special Considerations – Audit of financial statements prepared in accordance with special purpose frameworks;
International Standards of Auditing (ISA) 805 (Revised) – Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement;
International Standard on Related Services (‘ISRS’) 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information.
Key projects audited by our employees:
Projects implemented by the European Union:
• EU4Youth: Fostering potential for greater employability
• National Erasmus+ Offices Activities in support of the Erasmus+ Programme
• National Erasmus+ Offices activities in Support of HERES
• ENPI - European Neighbourhood and Partnership Instrument
• ENI - The European Neighbourhood Instrument
• NEAR - Neighbourhood and Enlargement Negotiations
• Cross-border Cooperation Programme
• Eastern Partnership Territorial Cooperation Programme
Projects implemented by donor organizations:
United Nations Development (UNDP):
SWISS RED CROSS (SRC):
Project: Community Action for Health
Project: Seniors’ Empowerment and Engagement in Decision-Making Processes (SEED)
Project: Assistance to socially vulnerable people
German Funding Association SOS-Kinderdörfer weltweit, Hermann-Gmeiner-Fonds Deutschland e. V. (SOS):
Project: Social and economic integration of disadvantaged youth and young parents
Project: Social Center “Happy Baby”: stabilization of families (women) in an acute crisis as funded by HGFD and BMZ, Germany
Project: Improvement of living conditions and economic substainability of vulnerable families as funded by HGFD and BMZ, Germany
Coalition Clean Baltic (CCB):
Project: Creating and sustaining positive change in key thematic areas related to water – strengthening the role of NGOs
City of Stockholm, Environment and Health Administration
Procedures for financial audit of grants
A financial audit of grants involves a comprehensive examination of the financial records, transactions, and activities related to grants received by an organization. This type of audit is crucial to ensure transparency, accountability, and compliance with the terms and conditions set forth in the grant agreements. Here's an overview of what's involved in a financial audit of grants:
Scope Definition:
Determine the scope of the audit, including the specific grants to be audited, the time period covered, and the relevant grant agreements.
Understanding Grant Agreements:
Review the terms and conditions of the grant agreements to understand the requirements for financial reporting, budget utilization, allowable expenses, and compliance obligations.
Financial Records Examination:
Audit the financial records, transactions, and accounting entries related to the grants.
Verify the accuracy and completeness of financial data, including income, expenses, and fund utilization.
Budget Review:
Compare the actual expenditures with the approved budgets outlined in the grant agreements.
Identify any discrepancies or deviations that need to be addressed.
Expense Verification:
Ensure that expenses charged to the grant are reasonable, allocable, and allowable as per the grant agreement and relevant regulations.
Compliance Assessment:
Evaluate the organization's compliance with the specific requirements and restrictions stated in the grant agreements.
Verify that the organization is adhering to regulations related to fund usage, reporting, and other grant-related obligations.
Internal Control Review:
Assess the organization's internal controls related to grant management and financial reporting.
Identify any weaknesses in internal controls that could lead to errors or fraud.
Documentation and Evidence Gathering:
Collect supporting documentation, such as invoices, receipts, contracts, and financial reports, to substantiate the financial transactions.
Reporting and Communication:
Prepare an audit report that outlines the findings, conclusions, and recommendations.
Communicate the audit results to relevant stakeholders, including grant providers, management, and board of directors.
Recommendations for Improvement:
If any deficiencies or non-compliance issues are identified, the audit report should include recommendations for corrective actions.
Follow-Up:
Track the implementation of corrective actions based on the audit recommendations to ensure that issues are addressed and improvements are made.
Financial audits of grants are essential for maintaining the integrity of grant-funded programs, demonstrating accountability to donors and regulatory authorities, and ensuring that funds are used effectively for their intended purposes. Organizations that receive grants should consider conducting regular financial audits to uphold their commitment to transparency and responsible financial management.