The annual NGO project audit serves as an independent verification by qualified professionals of expenditures which have been reported by NGOs in their quarterly /annual financial reports.
Project Audit is an independent assessment of the operations and expenditures incurred by the NGO( implementing partner) for the implementation of the project funded by the donor . The audit requires the auditor to assess the compliance of the donor guidelines regarding procedures to be followed along with all generally accepted accounting and reporting practices.
At Dishtayate , we follow a comprehensive approach for our project's audit where financial reports are not reviewed in isolation but they are linked with the programmatic requirements to ensure that every amount has been incurred towards achieving the project requirements.
It requires us to understand, review and assess the project requirements and built a audit plan to be followed for the successful implementation of the project.
Our deliverable generally after the audit is 'The Management Letter' , providing NGO management and the donor with an assessment of the internal financial controls and the strengths and weaknesses of the organization’s financial, human resources, and administrative systems.
The reporting parameters however is determined specifically for each assignment , our management letter generally covers following key reporting points:
- Compliance with the Grant Agreement
- Compliance with the accepted accounting , records, systems and controls
- Cases of ineligible expenditure reported by the implementing partner
- Areas where the internal controls and system at the Organisation needs to be strengthen
- Matters/cases which came to our attention during audit which might have significant impact on the implementation and sustainability of the project.
- Other recommendations.
Thus our management letter not only highlights the compliance and non compliance of the grant agreements but also serve help NGOs and the donors build stronger system and processes to ensure smooth and progressive implementation of the project.