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Article

Do I need a Grant Audit?

Article

Do I need a Grant Audit?

4 May 2020

2 minute read

If you are applying for funding through a grant such as Innovate UK, Horizon 2020 or the forthcoming Future Fund, it is possible that the project costs will need an audit.

Do I need a Grant Audit? - news article image

If you are applying for funding through a grant such as Innovate UK, Horizon 2020 or the forthcoming Future Fund, it is possible that the project costs will need a grant audit.

Audit requirements are set by the funding body and are stated within specific grant agreements. It is therefore important to check your award letter and associated grant conditions carefully as to whether you need an independent audit on the claims you have submitted.

The audit is carried out in order to ascertain whether you, as the recipient of the grant, has used the funding in-line with the grant conditions. Often, the audit report is in a format which is specified by the funder and it is usually necessary that the audit and final report preparation are carried out by a Registered Auditor.

It is important that you appoint an auditor at the acceptance stage of the grant rather than leaving this until a later stage. The auditor will then have a good level of understanding of your project from an early stage which will result in a more cost, and time-efficient grant audit. Unfortunately, not having an auditor in place may result in the awarding body clawing-back funds at a later date.

Whilst it is possible to use your current financial auditor for a grant audit, the work would need to be carried out under a separate engagement. It is worth noting that grant auditing is a specialised area and you may find that using an adviser who deals with a volume of grant audits beneficial.

How can Shaw Gibbs help

Shaw Gibbs can deliver an efficient grant audit based on our experience of the process. Our dedicated Grant Audit team are familiar with the standardised paperwork and processes agreed between the funding bodies and the accountancy profession. Our team can talk you through the process and help you avoid some of the pitfalls. We can advise on the relationship between grant funding and Research and Development (R&D) tax relief programmes as well as recommending a network of contacts who can assist with grant applications.

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+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you

Email
info@shawgibbs.com

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