Grant funding: Independent accountant’s report and reasonable assurance report

Grant funding bodies such as as Innovate UK and the Department for Energy Security and Net Zero (DESNZ) , require an independent accountant’s report or reasonable assurance report submitting with a grant claim.

It depends on the requirements of the grant funding body and the size of the grant project. A company may need to obtain a report at the end of the project or in intervals during the project. Details outlining the requirements are on the grant offer letter.

It is usually the grant recipient’s responsibility to arrange the appointment of a registered auditor to complete the report.

What is Independent accountant’s report and reasonable assurance report for?

The aim of the report is to provide assurance to the grant funding body. The report will show the terms have been met and expenditure claimed meets the conditions of the grant offer letter.

This process usually involves selecting a sample from the company’s accounting records and undertaking detailed testing to make these checks. The testing will include verifying invoices, obtaining evidence of payments and reviewing payroll records to the claim.

How errors identified are dealt with

If errors are identified while preparing the report, we will raise these to you to allow you to correct the error before the claim is submitted.

When errors are corrected, the report is issued stating the claim has been made in accordance with grant funding terms.

That being said, when errors are not corrected, these will be highlighted on the report.

Common errors identified while preparing the report

We can work with you and review your workings before a claim is due to ensure that you are calculating these correctly.

Deadlines

Grant funding bodies have their own deadlines for when the report should be submitted and these are usually listed in the grant offer letter.

Should you require an independent accountant’s report, please contact Lana Marof at the Orpington branch.