The Civil Society Fund:

Auditing instructions

valid for grants below DKK 200,000

Attention: This is a translation of the original instructions written in Danish. The original instructions are attached to the legally binding agreement between The Danish NGO and The Civil Society Fund. Therefore – incase of differences of interpretations – theDanish version will be the legally binding version.

Instructions concerning the realisation of auditing assign- ments related to private organisations' (NGOs') administration of grants from the Civil Society Fund

These instructions refer to the auditing assignments to which NGOs receiving grants from the Civil Society Fund below DKK 200,000 have to subject themselves to account for the funding.

§ 1. The audit is carried out by a state-authorised or chartered public accountant appointed by CISU (henceforth: "the auditor"). The NGO enters its accounts and submits them with original receipts to the auditor.

§ 2. The auditor examines whether the accounts give a true and fair view, and whether the dispositions informed through the presentation of accounts are in accordance with the stated terms of the approved grant, the agreement with CISU, the signed contracts as well as legislation and other provisions within the domain of the grant administration. Moreover, the auditor assesses whether due financial considerations have been taken in the administration of the grant covered by the accounts.

§ 3. During the assignment, the auditor must verify:

  1. whether the accounts give a true and fair view of the financial dispositions, i.e. are without relevant errors and omissions,
  1. whether the accounts are in compliance with the terms of the grant, including the provisions in the agreement with CISU and the latter entity's rules in general,
  1. whether the grant has been spent in accordance with the stated objectives and foundation of the funding approval,
  1. whether the grant recipient has practised economy in the spending of funds,
  1. whether the NGO has submitted correct and adequate information on the achievement of objectives to CISU,
  1. whether the accounts of partners abroad have been submitted and either duly documented by attendant receipts or verified by a local auditor. The auditor must give an overall assessment of the extent and quality of the foreign audit, examining whether the audit carried out abroad has occasioned relevant comments or reservations. If the auditors abroad have qualified their approval, this must be mentioned in the auditor's report (also known as "audit opinion") on the Danish-made accounts,

Art. 2. The audit can be carried out through spot tests, for instance based upon an assessment of relevance and risk.

Art. 3. The auditor must check that state-provided funding is kept on a separate bank account, and that movements on the account are in line with the payment orders of CISU. Moreover, it must be verified that grant funding transferred by the NGO to partners or offices abroad are kept on a separate bank account. In this manner, the auditor must ensure that the funds granted by the Civil Society Fund are not mixed up with the NGO's own resources.

§ 4. The NGO's management must submit all information to the auditor considered relevant to examining the accounts and to the auditor's assessment of the grant's administration, including objectives and achieved outputs. The NGO's management must allow the auditor access to carry out all inquiries requested, ensuring that the auditor receives the information and assistance seen as required for the proper undertaking of the auditing assignment.

§ 5. If the auditor's examination of the grant's administration detects breaches of law or relevant disregard for the signed agreement or basis of approval, it is incumbent upon the auditor to immediately notify the NGO's management and competent governing body, as well as to ensure that the NGO informs CISU of the conditions ascertained, including the auditor's remarks, within three weeks. If the NGO fails to do so, it is the auditor's duty to inform CISU.

Art. 2. The same provision applies if the auditor, while examining the accounts or in any other way, discovers that continued implementation of activities is uncertain on financial or other grounds.

§ 6. The audited accounts must be attached to the auditor's report, wherein it must be stated that the accounts have been audited in compliance with the rules set out in these instructions. Any reservations must be included in the attached report.

§ 7. The present instructions are an appendix to the agreement signed between the NGO and CISU, entering into effect at the same time. Before signing the agreement, it is incumbent upon the NGO to ensure that the appointed auditor will examine the state-provided funding in accordance with these instructions.

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Rev. December 2013