Guide
What to prepare for a grant acquittal audit in Australia
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Overview
Start with the signed grant agreement, then trace the spending report back to invoices, payments and payroll. That gives an independent auditor a way to check where the funding went.
Turn the agreement into a working file
The prototype is finished. Now the funding body wants an acquittal. In plain English, it’s asking you to account for how you used the grant. Some agreements require an independent audit of that statement. The first document to open is the signed funding agreement, because it sets the period, eligible spending and the type of report the funder expects.
Find the budget, reporting dates, approved variations and any conditions on GST, co-contributions or unspent funds. Check whether the funder supplies a template or specifies the auditor’s qualifications. Discuss those requirements with the auditor early enough to resolve a question with the funder before the due date.
Export project transactions from the ledger and group them under the agreement’s cost categories. Choose one cost and walk it through. For a testing machine, can you show the invoice, payment, delivery date and where the cost sits in the approved budget? If the equipment was shared with another project, the agreement determines whether an allocated portion is eligible.
Explain movements while people remember them
Staff time often needs more explanation than equipment. Keep payroll records and a supportable basis for the hours charged. If you moved money from travel to contractors, save the funder’s written approval where required. Reconcile the spending report to the ledger and explain any funds left over.
