Securing grant funding is a significant achievement for any organisation, but it comes with the responsibility of ensuring that the funds are used appropriately.
In Australia, both the government and other providers offer billions of dollars in grant funding across thousands of programs.
Once the funding is secured and the project is underway, one of the most crucial financial reporting requirements is the Grant Acquittal Audit. This process is essential for verifying that the funds have been utilised according to the grant agreement and that all financial reporting requirements are met.
This article addresses frequently asked questions about Grant Acquittal Audits, including their purpose, who can perform them, how organisations should prepare, and what documents are needed.
By understanding these key aspects, organisations can ensure transparency, accountability, and compliance in their use of grant funding.
Frequently asked Grant Acquittal Audit questions:
What is a Grant Acquittal Audit?
A Grant Acquittal Audit is a process of verifying that the funding received through a grant have been used according to the grant agreement and that all financial reporting requirements have been met.
Why is a Grant Acquittal Audit necessary?
It ensures transparency and accountability in the use of grant funding, verifies that the funding received was used for its intended purpose, and ensures compliance with the grant terms and conditions.
Who can perform Grant Acquittal Audits?
Grant Acquittal Audits are usually required to be performed by a:
- Registered Company Auditor under the Corporations Act 2001 (Cth); or
- member of CPA Australia; or
- member of the Institute of Public Accountants in Australia; or
- member of the Institute of Chartered Accountants in Australia.
How should organisations prepare for a Grant Acquittal Audit?
Maintain thorough and accurate records of all expenditure, regularly review compliance with grant guidelines, including all terms and conditions and also ensuring all financial records and reports are up to date. Conducting internal reviews prior to the audit can also be beneficial.
What documents are required for a Grant Acquittal Audit?
Commonly required documents include financial statements, bank statements, receipts, invoices, payroll records, and any other documentation that supports the expenditure of grant funding.
How are Grant Acquittal Audits performed?
After RSMs initial planning meeting with management, the company provides a schedule of audit document requests required for the Grant Acquittal Audit.
A large majority of RSM Grant Acquittal Audits are completed remotely using a range of technology tools. You will then be able to upload the requested documents to RMS’s secure iManage Share platform which helps to facilitate the efficient transfer of information including the ability to upload large files at high levels of speed.
Alternatively, RSM can also arrange a traditional on-site visit should you prefer.
How does a Grant Acquittal Audit differ from a regular financial statement audit?
A Grant Acquittal Audit focuses specifically on the compliance and financial aspects of a particular grant, whereas a regular financial statement audit examines the overall financial health and practices of an organisation.
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RSM are here to help with the Grant Acquittal Audit process and can provide you with a quote which is fit-for-purpose and based on the size and complexity of your Grant Acquittal Audit requirements.