Why does my company need an accountant’s report?        
Grant funding bodies, such as Innovate UK, like to have some comfort that the grant they are providing is funding the right expenditure and in accordance with the terms of the grant. Therefore, it is often a requirement that companies obtain a report from an independent accountant.

Who arranges an independent accountant’s report?
In most cases the grant funding body will leave it to the grant recipient to arrange the appointment of an independent accountant to undertake the report. It is often stipulated that the accountant must be a registered auditor.

As the independent accountant is selected and appointed by the grant recipient, the IAR is issued to the grant recipient. It is recognised by the independent accountant that the report will also be seen by the grant funding body.

When is an independent accountant’s report due?
This is largely dependent on the grant funding body and the level of expenditure. Some reports are required for the first quarter for which the grant is claimed, and a quarter later in the project. Some reports are required at the end of the grant period.

What information and records do I need for the grant audit?

Below is a breakdown of the items that may be requested for the audit testing:

• Labour – payroll details, timesheet details if appropriate
• Subcontractors
• Overheads
• Travel and subsistence,
• Material expenditure
• Capex

Upon our engagement a meeting or telephone call will be held to discuss all the information and records needed and to set out timeframes.

Common errors
A number of common errors that we have encountered whilst preparing IARs:

Labour

• Inadequate timesheet records to support the hours included in the claim.
• Use of estimated hourly rates.
• Inclusion of non-qualifying bonuses.
• Inclusion of dividend payments

General

• Insufficient evidence
• Invoices not received and paid before the end of the grant period.

The above errors and pitfalls could be avoided by:

• Keeping paperwork and records up to date.
• Internal auditing of the company’s systems.
• Ensuring that adequate controls are in place and followed correctly.
• Closely reviewing the grant terms.

We understand that many companies want the audited reports done quickly. We have a team of audit specialists available to help companies meet their requirements to the funding bodies with minimum hassle.

Why choose Alexander Myerson?

• Specialist – you’ll deal with dedicated grant audit team
• Experienced – we know exactly how to prepare most common grant audits
• Knowledgeable – we keep up to date with funders’ audit requirements
• Efficient – once we have received acceptance and all requested documents, your grant audit will be delivered as soon as possible
• Excellent value – competitively priced quality audit service

If you would like more information please contact us today.