One of the main principles of SNPA-project is its transparency. It is provided, in particular, through an annual audit which is a requirement of the donor to this project. Recently the Disposition Fund of the project was audited for the accounting periods from 23 June 2017 to 14 December 2017 and from 15 December 2017 to 08 January 2019. The Audit Company “DK-Ukraine” Ltd, which won the tender, audited the special purpose financial reports of the project’s so-called “Disposition Fund” (which is the main funding instrument of the project). The audit comprises the status of accounts and cumulated statements, and statements of expenditures.
The audit was conducted in accordance with International Standards on Auditing (ISAs) (with the application of ISA 800) and in compliance with Terms of Reference for Financial Audit of the SNPA-project Disposition Fund. Here is a summary of the audit report:
“In the opinion of Audit Company “DK-Ukraine” Ltd, the accompanying special purpose financial reports of the Disposition Fund are prepared, in all material respects, in accordance with the underlying Financing Agreement including the corresponding Separate Agreement dated 10 April 2015. We also state that:
– all of the payments out of the Disposition Fund have been made in accordance with the conditions of the Financing Agreement and the corresponding Separate Agreement dated 10 April 2015 and there are no ineligible expenditures identified;
– the Disposition Fund has been maintained in accordance with the provisions of the Financing Agreement and Separate Agreement (including the Supplementary Conditions of KfW for payments under the Disposition Fund procedure). This also comprises interest earned from balances;
– all of the expenditures are supported by relevant and reliable evidence. All supporting documents and records with respect to the statements of expenditure submitted as the basis for withdrawal applications have been made available;
– the audited statements of expenditures can be relied upon to support the related withdrawal applications. Clear linkage exists between the statements of expenditures, the withdrawal applications presented to KfW and accounting records;
– all of goods and services financed have been procured in accordance with the Financing Agreement including the corresponding Separate Agreement dated 10 April 2015.”
The audit for the 2019 accounting period will be conducted at the beginning of 2020.