# Preparing your Yemen project for a donor audit or spot check

A donor audit rarely goes wrong because the money was misused. It goes wrong
because the paperwork cannot prove the money was used as agreed. The gap
between "we did it" and "we can evidence it" is where findings come from, and
it is entirely avoidable.

## Spot check and audit are not the same

Both give the donor assurance, but they differ in depth and timing.

- A **spot check** is a lighter, interim review of expenditure and records,
  usually during implementation. It confirms that reported costs are supported
  and that controls are working, while there is still time to correct course.
- A **project audit** is a fuller, scheduled examination against the agreement
  and the approved budget, typically after a period or at project close, ending
  in a formal opinion and, often, a management letter.

Knowing which one you face tells you how deep the sampling will go and how
formal the outcome will be.

## What they verify

Whatever the label, the reviewer is testing the same chain:

- **Eligibility** — was the cost allowed under the agreement and the budget?
- **Support** — is there a voucher, invoice, contract or payroll record behind
  it?
- **Payment** — does a bank or cash record show the money actually left?
- **Allocation** — was it charged to the right budget line and the right
  project, not shared across grants without basis?
- **Procurement** — for purchases, was the required process followed and
  documented?

A cost that cannot walk through all five links becomes a finding, even when the
activity genuinely happened.

## How to stay audit-ready

1. **File as you spend, not at year end.** A voucher pack assembled in real
   time is complete; one reconstructed months later has holes.
2. **Keep the budget line on every document.** Coding an expense when you book
   it makes the allocation test trivial later.
3. **Protect procurement records.** Quotations, selection notes and contracts
   are the first thing a reviewer asks for and the first thing that goes
   missing.
4. **Reconcile monthly.** Bank, cash and ledger agreeing every month means no
   surprises when someone samples a transaction.
5. **Read the agreement's reporting and eligibility clauses.** Most findings
   trace back to a rule in the agreement that no one revisited after signing.

## A note on Yemen

Cash-based payments, exchange-rate movement and split banking are facts of
delivery here. Document the rate you used and its source, keep signed
distribution and cash records, and show the control around every cash step.
Reviewers expect these conditions; what they test is whether you managed them
deliberately.

## Where we fit

We prepare NGO projects for spot checks and donor audits, and we perform
agreed-upon procedures and project audits against donor terms of reference. We
review your expenditure and records against the agreement before the donor
does, so findings are fixed while they are still yours to fix.

## Sources

- [UNICEF-UNDP-UNFPA Harmonized Approach to Cash Transfers (HACT) Framework](https://www.unicef.org/media/83331/file/HACT-Framework.pdf)
- [Donor audit and assurance terms of reference conventions](https://www.unicef.org/)