What is a Grant Acquittal Audit?
A grant acquittal audit is an independent verification that grant funds have been spent in accordance with the grant agreement terms and conditions. Funding bodies – including government departments, philanthropic foundations, and corporate sponsors – often require audited acquittal reports to confirm that their funds have been used appropriately.
The audit provides assurance to the funding body that the recipient organisation has met its obligations, maintained adequate records, and achieved the agreed outcomes or delivered the funded activities.
When is a Grant Acquittal Audit Required?
Grant acquittal audits are typically required when:
- The grant exceeds a specified threshold (often $50,000-$100,000)
- The funding agreement specifically requires an independent audit
- The grant spans multiple years and requires periodic acquittals
- Government funding is involved (Commonwealth, State, or Local)
- The funding body has concerns about financial management
- The organisation is not otherwise subject to statutory audit
What the Auditor Examines
A grant acquittal audit typically covers:
- Expenditure matches the approved budget categories
- All claimed expenses are supported by valid documentation
- Funds were not used for ineligible purposes
- Any variations were properly approved by the funding body
- Co-contributions or matching funds were provided as required
- Asset purchases comply with grant conditions
- Financial records are adequate and accurate
- Reporting to the funding body has been timely and accurate
Types of Grant Funding Requiring Acquittal
Common grant types requiring acquittal audits include:
- Commonwealth grants: Programs administered by federal government departments
- State government grants: Health, education, community services funding
- Local government grants: Community and infrastructure programs
- Philanthropic grants: Foundations and trusts with specific requirements
- Corporate grants: CSR and sponsorship programs
- Research grants: University and research body funding
Grant Acquittal Audit Costs
Grant acquittal audit fees vary based on grant size, complexity, and record quality:
- Single small grants ($20,000-$100,000): $800 - $1,500
- Medium grants ($100,000-$500,000): $1,500 - $3,500
- Large or complex grants ($500,000+): $3,000 - $8,000+
- Multiple grant acquittals: Often discounted when bundled
Many funding bodies allow audit costs to be included as an eligible grant expense.
Preparing for Your Grant Acquittal Audit
To ensure a smooth audit and minimise costs:
- Maintain separate cost centre or account coding for grant expenditure
- Keep all invoices, receipts, and payment records organised
- Document any budget variations and approval correspondence
- Track co-contributions and in-kind support with evidence
- Prepare a reconciliation of grant income and expenditure
Get Your Grant Acquittal Audit Quotes
Post your grant acquittal audit job on AuditLink for just $39 inc GST. Receive 3-6 fixed-price quotes from auditors experienced with NFP grant compliance within 24-48 hours.