Accounting for grants and projects in a Polish NGO

Good project accounting should show not only how much was spent, but also which funding source, task and budget category each transaction belongs to. This is essential for grant reporting and audit trails.

Published: 28 August 2026Substantively updated: 28 August 2026Prepared and substantively reviewed by: LOGOS NON-PROFIT – ACCOUNTING OFFICE team

KEY POINTS

Public grant rules often require separate financial and accounting records that identify each project transaction.
Accounting evidence must meet general accounting requirements and any additional conditions in the specific grant agreement or programme rules.
A correctly booked expense is not automatically an eligible project cost; eligibility also depends on timing, purpose and the approved budget.
Costs split across projects or funding sources need a documented allocation method.

Why should a project be separately identifiable?

Grant providers need an audit trail from the funding received to each expenditure item. Public programme rules commonly require separate project accounting that allows individual transactions to be identified.

What should connect a document with the project?

Depending on the agreement and internal procedures, records should identify the project or agreement, funding source, budget category, amount allocated to the project and substantive approval.

project or agreement identifier
funding source
budget category or task
amount allocated to the project
substantive and financial approval

Accounting evidence and eligible cost are different concepts

An expense may be correctly recorded in the books and still be ineligible under a particular grant. Eligibility follows from the agreement, programme rules, approved budget and implementation period.

How should shared costs be allocated?

When a document relates to several projects or is financed partly from a grant and partly from own funds, the allocation key should be reasonable, documented and reproducible during a review.

Close the project before the final reporting date

Before project end, reconcile open liabilities, final payment dates, missing documents, own contribution and the accounting records against the approved budget. Retention and audit periods should be taken from the applicable agreement and rules.

Sources and legal status

Sources checked on 28 August 2026.

This article is general information and does not replace advice based on the reader’s individual tax, legal or accounting situation.