Do you need a Grant Audit to draw down project funds?
Hello. My name is Miles Girdlestone and I’m a Client Director here at THP. For the last few years, I’ve had the privilege of heading up our dedicated Grant Audit team.
If you have been awarded an Innovate UK, UKRI or other government grant, you’ll know that funders often insist on an Independent Accountant’s Report (IAR) before they will release project funding. For example, every Innovate UK/UKRI report must be drawn up by an independent external auditor like THP Chartered Accountants.
When you choose THP to take care of your Grant Audit, our specialist team will help you get hold of your grant funding quickly and with minimum hassle. We’re expert at producing Innovate UK/UKRI audit reports and government business Grant Audits in double-quick time, so talk to us on 0800 6520 025 or send us a message today!
Why choose our Grant Audits?
With THP, you’ll be choosing grant auditors who are:
- Specialist – you’ll deal with a dedicated team
- Experienced – we know exactly how to prepare most common audits
- Knowledgeable – we keep up to date with funders’ audit requirements
- Fast – once we have received your acceptance and all requested documents, we will produce your independent audit report (IAR) as quickly as possible.
- Excellent value – you pay only a competitive fee from £995 + VAT.
In the vast majority of cases, we’ll carry out your Grant Audit online via a dedicated portal. We’ve developed this system to ensure project audits are completed as quickly as possible.
We will quote you a very reasonable price for this service before we start work. That means no unexpected surprises*
*Provided that the scope of the work remains the same.
We uploaded the relevant documents via the portal on the THP website, Miles came back to me with a couple of questions and he turned the audit round over a weekend. Innovate UK then approved our claim without question. I’ve already recommended THP’s service to others!
– Jeremy Mabbitt, Studybugs
Which funders can we help with?
You can use us as independent external auditors for almost any business grants. For example, we can prepare Grant Audits for:
- Innovate UK / UKRI (including Innovate UK Smart Grants)
- Scottish Enterprise grant schemes
- European Union grant schemes (such as Horizon Europe and Interreg EU)
- Government grants (such as from DEFRA, DECC and others)
- Local Enterprise Grants
We can also advise on you whether you can combine R&D tax credits with grant funding.
How does the audit process work?
THP’s Grant Audit services keep red tape to a minimum. When you ask us to complete an Independent Accountant’s Report for your Grant Audit, we:
- Ask you to send us only the information we need (you can upload this on our website).
- Get back to you with any further queries.
- Carry out your Independent Accountant’s Report – upon receipt of your signed acceptance and all requested documents, we will produce your Independent Audit Report (IAR) as fast as possible.
Our audit process really is that simple! Unlike some companies, we never insist upon an expensive visit to your business premises – our service is designed to allow your Grant Audit to be carried out remotely.
Prices for our Grant Audits start from £995 + VAT
What information do you need to quote for my Grant Audit?
To get a fast quote for your Grant Audit and Independent Accountant’s Report, you simply need to send our team the following information to review:
- The total amount of grant
- Period of grant in months
- Total labour costs
- The number of PAYE employees (if labour is covered)
- Approximate number of purchase invoices you have for each budget category for the project (subcontractors, capital usage, travel, materials and other expenditure)
What information will your Grant Auditor need to complete my Independent Accountant’s Report?
Once you have retained us to complete your Independent Accountant’s Report, we’ll let you know the information we need. You can upload this via our dedicated portal. The list below gives you an idea of the types of record we’ll ask you for.
- A spreadsheet summary of costs claimed per quarter (this is known as the ‘cost build up sheet’).
- A supporting spreadsheet for your payroll claim, detailing staff names, the time spent on the project and day/hour rate calculations.
- Payslips for all employees claimed for.
- Copies of employees’ timesheets supporting the days/hours claimed.
- A breakdown of costs claimed, by category.
- Copies of invoices for costs claimed.
- Bank statements covering the grant period and BACS listings where it isn’t clear who is being paid.
- Passports/driving licences for employees you are claiming labour costs for.
What are common problems found in Grant Audits?
It’s worth knowing some of the common problems that we find when we audit grant funding. This can help you to make sure you give us accurate information at the outset. Frequent issues include:
- Missing or incomplete documentation. Anything from receipts to payroll records.
- Expenditure outside the grant period. This is not allowable.
- Non-eligible costs. Overheads and entertainment are common examples.
- Incorrect allocation of staff costs. Employing the wrong proportion of salaries to the grant.
- Exchange rate errors. Using inconsistent or inaccurate exchange rates when converting expenditure in other currencies.
- Changes not notified to the funder. Examples include changing the project scope, timelines or budget categories without authorisation.
If you believe there may be problems with your records, please let our team know at the outset. We can take a closer look and advise you on what to do next.
Our Specialist Grant Audit Team
The THP Grant Audit team is headed by me, Miles Girdlestone. I work with my highly experienced team to offer you a uniquely streamlined Grant Audit service.
Although our specialist Grant Audit team carries out most of your work online, we always provide a very personal service. Rest assured that you will always be talking to real people!
Together we have many years’ experience in carrying out this type of technical audit and are particularly expert at complying with Innovate UK audit requirements. 100% of our Grant Audit clients have drawn down funds as a result of our work.
Miles Girdlestone
FCA – Client Director
Miles joined THP in 2014, bringing a breadth of experience gained from working with a range of organisations in statutory audit, accounts preparation and corporate tax. Now a Client Director, he heads up our Grant Audit team and manages an impressively diverse portfolio that spans industries including medical professions, property development and food processing. Miles’s commitment to building lasting relationships with clients is underpinned by trust, understanding and shared success: “My dedication goes far beyond numbers – it’s about being a true partner in their journey.”
Andy Green
FCA – Client Director
Andy is our lead director responsible for our audit services and also makes significant contributions to our Grant Audit team. As our Compliance Director, he ensures that THP’s impeccable standards and reputation are consistently upheld. With a background in accounting, investment banking and audit, Andy’s passion for the profession stems from its dynamic nature: “Every day presents new challenges and opportunities to achieve successes for clients.” Andy’s approachable style and positive outlook make him a highly regarded lead auditor for a broad array of clients, regardless of size or sector.
Need an Innovate UK audit report or other Grant Audit now?
If you need an Innovate UK audit report or a different Grant Audit either now or in the near future, get in touch for a no-obligation consultation. We’d be delighted to give you a quote and turn your Grant Audit around in next to no time.
Grant Audit FAQs
A Grant Audit for funding such as an Innovate UK Smart Grant is a formal check to make sure the grant money you’ve received has been used properly and in line with the grant agreement. For future grant assurance, you need to hire an independent auditor such as a THP accountant to undertake the Grant Audit. They will check your financial records and provide you with an Independent Accountant’s Report. Funders require a satisfactory report as evidence of compliant grant management before they will release a subsequent tranche of funding.
Grant audits are related to financial audits, but they are not the same thing. A financial audit is a formal review of an organisation’s overall financial statements. A good example is a statutory audit, which some (particularly larger) businesses need undertake annually. This kind of audit is undertaken to provide assurance that an organisation’s accounts give a ‘true and fair’ view of its financial position and are in compliance with accounting standards. A Grant Audit – sometimes called a ‘Grant Compliance Audit’ – is much narrower in scope. It focuses specifically on whether grant funds have been spent according to the grant agreement.
The best way to prepare for a Grant Audit is to comply with the conditions and requirements of your grant. It’s a good idea to set up a separate project code or cost centre in your accounting system. This means it’s easier to identify grant spending via timesheets, invoices, contracts, receipts and other items. It’s also wise to set up robust internal controls to make sure only eligible costs are claimed and that they are supported by evidence. Appointing a Grant Audit specialist early on is also helpful. They can advise you on topics such as record keeping and compliance, resulting in fewer potential problems further down the line.
A checklist can be very useful and speed up the process of claiming your funding. However, you’ll need a different checklist for different types of grant. Once you have retained THP to work on your Grant Audit, we can provide you with a checklist of information we need to undertake the process and deliver your Independent Accountant’s Report.
If irregularities are identified, you may need to provide additional evidence or repay part of the grant. THP’s team will review your records and help you prepare and minimise risks of clawback.
Your annual statutory audit is distinct from any grant audit, so the two can’t be combined. However, we can help you with both of these requirements.
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