INSTRUCTIONS ON THE PERFORMANCE OF AUDIT TASKS IN
CONNECTION WITH THE MANAGEMENT OF GRANTS FROM THE
PARTY-TO-PARTY SUPPORT
POLITICAL PARTY COOPERATION
ANNEX 10: 2ND EDITION – JULY 2013
These instructions describe the tasks that are required by the Danish Ministry of Foreign Affairs in
connection with support from DIPD to the party from the Party-to-party support pool.
Article 1. Preferentially, the audit shall by performed by a state-authorised public accountant or a
registered public accountant, but may also be performed by a non-certified accountant elected by
an association. If the latter is the case, the accountant shall meet general competence
requirements, i.e. there must be no circumstances that could raise doubts about the accountant's
independence.
Article 2. The audit examines whether the project accounts are true and fair, and whether the
transactions covered by the report are in accordance with the grants issued, the project agreement
with the host organization [DIPD], contracts entered into, as well as acts and other regulations
governing the grant administration. In addition, the accountant shall assess whether due financial
considerations have been made in the management of the grants that are covered by the project
accounts.
Article 3. In the review the auditor shall verify the following:
1. whether the project accounts present a true and fair picture, i.e. without significant errors and
omissions,
2. whether the conditions for support are met, including the provisions of the agreement with the
host organisation [DIPD] and the regulations of the host organisation [DIPD] in all other respects,
3. whether the support received has been applied in accordance with objectives and the basis of
the grant,
4. whether the recipient of the grant has shown thrift,
5. whether the organization has provided the host organisation (DIPD] with correct and complete
information on the fulfilment of objectives,
6. whether the financial reports from partners abroad have been submitted and have been properly
documented in the Annex or have been audited by a local accountant. The auditor shall carry out a
general assessment of the extent and quality of the external audit and the extent to which the audit
carried out abroad has given rise to significant comments or reservations. If any auditors abroad
have made reservations, this must be mentioned in the auditor's report re. the Danish accounts,
7. whether project accounting figures are matched with the general accounts of the organisation.
(2) The audit may be carried out by spot checks, e.g. based on an assessment of materiality and
risk.
DIPD Audit Instructions
(3) The auditor should verify that the grants received are held in a separate bank account, and that
the transasctions in the account are balanced with payment instructions from (the host
organisation). It should also be checked, that grants that are forwarded to the foreign partners,
are kept in a separate account held by the foreign partner. The auditor must ensure that there is
no confusion of grants and own resources.
Article 4. The management of the organisation must provide the auditor with information that must
be regarded as being important to the assessment of the accounts, as well as for the auditor's
assessment of the management, including objectives and results achieved. The management of
the organisation shall provide the auditor with access to carry out investigations which the auditor
considers necessary and to ensure that the auditor receives the information and the assistance
that is considered necessary for the performance of the audit.
Article 5. If, in connection with management of the grants, the auditor becomes aware of offences
or material breaches of the agreement or the basis of the grant, the auditor shall inform the
management of the organisation and the competent body thereof immediately and ensure that
notification of the findings will be sent to the host organisation (DIPD] accompanied by the auditor's
comments within 3 weeks. Otherwise, the auditor shall inform the host organisation (DIPD) thereof.
(2) The same shall apply, if the auditor during its audit or otherwise notices that the continuation of
the operation is uncertain of financial or any other reasons.
Article 6. The revised project accounts shall be provided with an auditor's report stating that the
accounts have been audited in accordance with the rules set out in these instructions. Any adverse
opinion shall appear from the endorsement.
Article 7. These instructions must be included as an annex to the agreement between the
organisation and the host organisation (DIPD] and shall enter into force at the same time. Before
signing the agreement it shall be the responsibility of the organisation to ensure that the appointed
auditor will review the grants received in accordance with these instructions.
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