01/09/2026
A Polish family foundation (fundacja rodzinna) is subject to a special mandatory audit at least once every four years (in the remainder of this article we use the term foundation audit (or audit) to clearly distinguish this obligation from the audit of financial statements under the Polish Accounting Act). This dedicated foundation audit is expressly separated in the Family Foundation Act from the audit of financial statements carried out under the Accounting Act.
In larger foundations it is possible that both engagements will have to be performed in the same year, by two teams independent of each other.
For the thousands of family foundations registered after the Act entered into force in May 2023, the first audit deadlines fall no later than in 2027. Below we explain who may perform the audit of a family foundation, what exactly it covers and how to prepare for it.
Legal basis – Articles 77–80 of the Family Foundation Act
The audit obligation follows directly from the Act of 26 January 2023 on Family Foundations (Journal of Laws 2023, item 326, as amended). Under Article 77(1) of the Act, the assembly of beneficiaries appoints an audit firm or a team of auditors to audit:
- the management of the family foundation’s assets,
- the incurring and performance of liabilities,
- public-law obligations (taxes and social security contributions)
– as regards their correctness, reliability and compliance with the law, with the foundation’s purpose and with its governing documents.
The audit of a family foundation is a comprehensive assessment of whether the foundation actually operates as the founder intended and whether it exposes the family wealth or the beneficiaries to legal or tax risk.
Who performs the audit of a family foundation?
The Act allows two options. The audit may be performed by an audit firm (hereinafter: AF) – an entity entered on the list kept by the Polish Audit Oversight Agency (PANA) – or by a team of auditors composed of: a statutory auditor (biegły rewident), a tax adviser, and an advocate or attorney-at-law. This composition is no accident – it mirrors the three risk areas of a foundation: financial and accounting, tax, and legal.
Auditor independence requirement
Under Article 78 of the Act, the audit may only be performed by a person who is independent of the given family foundation and who, during the period covered by the audit and while it is being carried out, has not taken and does not take part in the foundation’s decision-making and has not provided and does not provide statutory audit services or advisory services to the foundation. In practice this means that the Article 77 audit should not be performed by the same audit firm that audits the foundation’s financial statements – the two roles must be kept separate.
How often must the audit be performed? Key deadlines
The frequency of the audit is governed by Article 79 of the Act:
- the general rule – the audit is performed at least once every four financial years;
- “large” foundations – if the foundation’s financial statements are subject to a mandatory audit under the Accounting Act, the foundation audit is performed annually, before the approval of the financial statements.
The obligation to have the financial statements audited annually (Article 64(1)(4) of the Accounting Act) applies to entities that met at least two of the following three conditions: total assets of at least EUR 3,125,000, net revenues of at least EUR 6,250,000, average annual employment of at least 50 people (thresholds applicable to financial years beginning after 31 December 2024).
First audits no later than 2027
The register of family foundations has been operating since 22 May 2023. For foundations registered in 2023, the four-year period covering financial years 2023–2026 ends in such a way that the first mandatory audit must be performed no later than in 2027. It is worth not leaving it to the last minute – appointing the auditors requires a resolution of the assembly of beneficiaries, and the audit itself covers up to four years of activity, which means gathering and organising extensive documentation. Many of these steps can be spread over time so that the final audit deadline does not coincide with the financial statement audit deadlines.
What does the auditor examine? The scope of the audit in practice
In the course of the audit, the audit firm or the team of auditors assesses in particular: the management of the assets contributed by the founder and acquired later, contracts concluded (including transactions with the founder, the beneficiaries and related parties), benefit payments to beneficiaries, the foundation’s tax settlements (CIT, tax on benefits, the risk of so-called hidden profits) and the compliance of the governing bodies’ actions with the foundation’s statute and purpose. Under Article 80 of the Act, the auditors have the right to request the foundation’s documents from the management board, including the current list of beneficiaries.
The audit report
The audit ends with a written report delivered to the management board. The management board presents the report to the supervisory board or, if no supervisory board has been established, to the assembly of beneficiaries at its next meeting. For the founder’s family the report is a real oversight tool: it makes it possible to verify whether the management board is managing the foundation’s assets properly.
Consequences of failing to carry out the audit
The Act does not provide for a direct financial penalty for failing to carry out the audit, but neglecting this obligation is a serious risk: it exposes management board members to liability for acting contrary to the Act, weakens the foundation’s position in disputes with the tax authorities and deprives the beneficiaries of a statutory oversight instrument. Irregularities not detected in time – especially tax irregularities – can cost many times more than the audit itself.
Frequently asked questions (FAQ)
Does every family foundation have to undergo an audit?
Yes. The audit obligation under Article 77 of the Family Foundation Act applies to every family foundation, regardless of its size – at least once every four financial years.
Does the audit of a family foundation have to be performed by a statutory auditor?
The audit is performed by an audit firm or by a team of auditors that must include a statutory auditor (alongside a tax adviser and an advocate or attorney-at-law). A statutory auditor is therefore always involved in the audit. An AF may organise the audit on its own or as part of the team performing the audit.
When must a family foundation carry out its first audit?
Foundations registered in 2023 should carry out their first audit no later than in 2027. Foundations whose financial statements are subject to a statutory audit carry out the audit every year, before the approval of the financial statements.
Who appoints the auditor of a family foundation?
The audit firm or the team of auditors is appointed by the assembly of beneficiaries.
Family foundation audit vs. financial statement audit – not the same thing
Two independent obligations should be distinguished. The audit of financial statements (Article 64 of the Accounting Act) applies only to foundations exceeding the size thresholds and answers the question whether the financial statements fairly present the entity’s financial position. The audit under Article 77 of the Family Foundation Act applies to every family foundation without exception and assesses the legality and correctness of the foundation’s operations themselves. Due to the independence requirement, the two engagements should be performed by different firms.
Biegly.pl performs audits of family foundations under Article 77 of the Polish Family Foundation Act as well as audits of financial statements. If your foundation was registered in 2023, the deadline for the first audit expires in 2027 – contact us to plan it in advance.
