Many companies receive grants to support specific projects, activities or investments. Whether funding is provided by a government body, local authority, charitable organisation or other funding provider, recipients are often required to demonstrate that the funds have been used correctly and in accordance with the grant conditions.

A grant audit provides independent assurance that grant monies have been spent appropriately and helps satisfy the reporting requirements of the funding body.

What Is a Grant Audit?

A grant audit is an independent review of expenditure incurred under a grant funding agreement.

The purpose of the audit is to verify that:

  • Grant funds have been used for their intended purpose.
  • Expenditure claimed is eligible under the funding agreement.
  • Supporting documentation is available for all claims.
  • The organisation has complied with the conditions attached to the grant.

Following completion of the review, the auditor will usually provide a report or certificate to the funding body confirming their findings.

Who May Require a Grant Audit?

Grant audits can be required by any organisations that has received grant funding.

The requirement is typically determined by the grant provider and will be specified within the funding agreement.

What Does the Audit Involve?

The scope of a grant audit will vary depending on the funding programme and reporting requirements. Common procedures include:

  • Reviewing the grant agreement and funding conditions.
  • Testing expenditure claimed against supporting invoices and records.
  • Verifying payroll costs where staff expenditure is included.
  • Confirming that expenditure relates to the funded project.
  • Reviewing procurement procedures where required.
  • Assessing compliance with specific grant conditions.

The auditor may also review systems and controls used to manage grant funding throughout the project.

Why Are Grant Audits Important?

Grant providers need assurance that public or private funds are being used appropriately.

A grant audit helps:

  • Demonstrate accountability and transparency.
  • Support future funding applications.
  • Reduce the risk of funding disputes.
  • Identify compliance issues before claims are submitted.
  • Provide confidence to stakeholders and funding bodies.

Effective record keeping throughout the life of the project can significantly reduce the time and cost involved in completing the audit.

How Cube Partners Can Help

Our audit team provides independent grant audit and certification services across a range of funding programmes. We work closely with our clients to understand the specific reporting requirements and ensure the process is completed efficiently and professionally.

By engaging early, we can also help identify potential compliance issues before they become problems, helping to protect valuable funding arrangements.