Donor-funded project audits are easier, and cheaper, when the groundwork is done before the auditors arrive. These habits make the biggest difference.
Reconcile early and often
Reconcile the project bank account, the donor ledger and the grant agreement budget lines monthly. Differences are far easier to explain while the people involved still remember the transactions.
Keep supporting documents together
Every payment should be traceable to an approved request, a supplier document, evidence of receipt and proof of payment. File these by voucher number so a sample can be pulled in minutes.
Know the grant agreement
Eligible costs, procurement thresholds, reporting dates and prior-approval requirements are all set out in the agreement. A one-page summary for the finance team prevents most compliance findings.
Agree the timetable
Confirm the audit scope, the documents needed and the dates for fieldwork and the exit meeting at the start, so that nothing is a surprise at the end.