There are a wide variety of grants and funding sources available for projects and research programmes from bodies such as Innovate UK and Horizon Europe.
Depending on the amount of the grant and the grant conditions, the funding organisation will mostly likely stipulate that at least part of your claim is audited. Most providers only permit audits to be carried out by Registered Auditors.
What is a Grant Audit?
Organisations that have been awarded funding by government body grants often have to have the claim audited as part of the grant conditions.
Bodies such as Innovate UK have specific claim requirements and an official format prescribed. The award letter will specify the frequency of the audit report which is based on certain threshold of the claim.
What do auditors check?
We will perform an independent audit to check that costs claimed are not in excess of actual expenditure. We will check that the grant form has been completed correctly, only includes eligible expenses and can be supported by appropriate documentation.
When is a Grant Audit required?
Depending on the specific grant agreements this may be required on the first claims, annual claims, the last claims or every claim.
Do I need a Grant Audit?
Whether you need a grant audit will depend on the level of grant funding, the value of project costs incurred and the specific grant agreements. Your grant award letter will guide you.
What do I need for a Grant Audit?
At Butt Miller, our objective is to ensure that the costs incurred are not less that the costs claimed. We will ask for access to payroll records, time-recording systems, bank statements, invoices and expenses receipts.
Contact Butt Miller for Grant Audit Services
If you have submitted grant applications that require Grant Audit Services, then please contact Butt Miller for a competitive quote.
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Check if our frequently asked questions can shed more light
What projects require a grant audit?
Innovate UK grants in excess of £25,000 and will require an audit report as part of their final claim. Funding in excess of £100,000 will require additional audit reports.
Other funding providers have different requirements. Please look at your grant offer letter for your specific requirements.
Who can conduct a grant audit?
An independent audit can only be carried out by a person or firm registered as an auditor on the audit register.
Where will the grant audit be completed?
We can either come to your office or carry out the work remotely. Our clients are based all over the UK and we tend to base our approach on the client’s requirements.
Our flexible work ability means that we are able to fit in with your specific requirements and timetable.
How do we select an auditor?
You must chose an independent external auditor – this usually means that you can’t use your company’s accountant or auditor.
You may wish to chose Butt Miller anyway as we have the expertise, sector experience, adaptability and can usually turn your report around quickly and efficiently.
What does a grant audit entail?
We will check the claim to the grant of letter and check that all costs claimed have been incurred.
Typically we will require access to payroll records including time sheets and employment contracts. We will also require copies of invoices, expense claims, evidence of authorisation and confirmation that the company’s procedures and rules have been followed.
How much does an audit cost?
The price depends on the size of the claim and the different costs involved. Most audits take two to five working days to complete, depending on the different types of expenses incurred and the number of sources of data.
Different claims may cover single or multiple reporting periods. We will specify our fee quote to suit your particular requirements.
What happens if errors are discover?
If we discover an error, we will discuss it with you and agree on the best way forward. If it’s a calculation error in the calculation of an employees hourly rate, for example, you may wish to adjust your claim accordingly.
You may have already claimed the maximum amount, in which case the error may not affect the claimed amount.
Alternately, you may decide not to adjust your claim and we can include an exception as part of the audit report.
