Many organisations receiving grant funding face tight deadlines for submitting audit reports to funders. Whether your year or period end is 31 December, 31 March, 30 June, or another date, early planning is essential to avoid last-minute stress, audit delays, or non-compliance.
Know your deadline and what is due
Start by confirming:
- The exact audit submission deadline in your grant agreement
- Whether the funder requires an audit, assurance engagement, or AUP report
- Any reporting templates or formats that must be used
- Do you have to go through a procurement process to select your auditor
- How long it will take you to prepare your initial financial reports, factoring in time for partner reporting if applicable
Some funders require submission within 3 months of year-end, while others may expect it before releasing final payments.
Book your auditor early
Audit firms often face peak demand at certain points of the year. To avoid delays:
- Engage your auditor as early as possible. This will also help to clarify any issues identified in the audit clauses
- Confirm timelines for fieldwork and reporting
- Share the grant agreement and funder requirements upfront
At Menzies LLP, we work with clients to schedule grant audits well in advance, developing tailored audit approaches and ensuring deadlines are met without compromising quality through our Relationship Partner / Director led approach.
Prepare your financials and documentation
Ensure your team is ready to:
- Finalise grant expenditure records
- Reconcile grant income and spend
- Ensure that financial reports reconcile against transaction listings
- Organise supporting documentation (invoices, contracts, delivery evidence)
- Have realistic timelines for preparing your documentation
If your grant requires special purpose financial statements, these must be prepared separately from statutory accounts.
Coordinate internally
Grant audits often require input from:
- Finance
- Project delivery teams
- Procurement
- HR/payroll
- Governance or compliance officers
- Downstream partners
Set up a clear internal timeline, ensuring these are realistic, and assign responsibilities early to avoid bottlenecks
Consider downstream partners
If your organisation acts as a lead recipient or intermediary, and has passed funding to downstream partners or sub-grantees:
- Confirm whether their expenditure is subject to audit or review
- Ensure partners are aware of reporting deadlines and documentation requirements
- Consolidate partner data early to avoid delays in your own audit
Funder expectations around downstream accountability are increasing and poor partner oversight can result in audit qualifications or clawbacks for the lead organisation.
Avoid common pitfalls
- Late engagement with auditors
- Missing documentation or unclear audit trails
- Misunderstanding the audit requirement
- Overlapping deadlines with statutory audits or other reporting
- Unrealistic timelines
- Lack of internal engagement
These issues can lead to qualified audit reports, funding clawbacks, or reputational risk.
Preparing for a grant audit is not just about compliance, it is about demonstrating accountability, transparency, and value for money. With public and philanthropic funders under increasing pressure, organisations must be ready to meet higher standards of assurance.
If your organisation receives grant funding, now is the time to contact our team at Menzies LLP. We are here to help you navigate funder requirements with confidence.
Note: While we use the term “grant audit” throughout, funders may require different types of assurance – including audits, assurance engagements, or agreed-upon procedures (AUPs). We tailor our approach to meet these specific requirements.
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