Grant acquittal audits
Independent audit of your grant acquittal, delivered on time for the funder's deadline.
Funding bodies want an auditor's report on how their money was spent. J O'Connor Pty Ltd audits grant acquittals for councils, not-for-profits, community organisations and small businesses across Queensland, either as a standalone engagement or alongside your annual audit.
Fixed fee quoted up front. Standards-based reports that funding bodies accept. One practitioner who does the work and signs the report.
What a grant acquittal audit is
A grant acquittal is the financial report you give the funder showing the grant received, how it was spent and any unspent balance. Many funding agreements require that report to be audited by an independent auditor before it is lodged.
The audit is a special purpose engagement under the Australian Auditing Standards (ASA 800 and ASA 805). We examine the acquittal statement, trace grant receipts to the funder's remittances and your ledger, test a sample of expenditure to supplier invoices and payroll records, and issue an auditor's report in the form the funding agreement calls for.
Typical triggers:
The funding agreement or service agreement says the acquittal must be "audited" or "certified by an independent auditor"
The funder's template (for example a CHAFR return, a Statement of Receipts and Expenditure or an Annual Financial Acquittal) has an auditor's certification section
Total grant funding for the year is above the funder's audit threshold
The grant has closed and a final acquittal is due
Standalone grant acquittal audits
You do not need to be an existing client, and you do not need us to audit your whole organisation. If all you need is an auditor's report on one grant, that is the engagement we quote.
This suits:
Local councils whose annual financial statements are audited by the Queensland Audit Office, but whose State or Commonwealth program grants require a separate auditor's statement
Not-for-profits and community organisations that are below the size threshold for a full audit but hold one or two grants with an audit condition
Businesses and sole traders receiving industry, research or export grants with an audited acquittal requirement
Organisations whose regular auditor does not take on small special purpose engagements
We work from your ledger extract, remittance advices and a sample of invoices. You do not need to prepare a full set of financial statements; the acquittal statement in the funder's format is enough.
Acquittals for existing clients
If we already audit your annual financial statements, grant acquittals are a natural add-on. We know your ledger, your systems and your people, so the acquittal audit draws on work already done and costs less than a cold engagement.
What that looks like in practice:
Grant receipts and expenditure are reconciled to the audited financial statements, so the two reports agree
Expenditure testing on the annual audit is planned to cover grant-funded costs where it can
Acquittal deadlines are built into your annual audit timetable, not bolted on at the last minute
One representation letter and one set of client queries, not two
Tell us at planning time which grants have an audit condition and when each acquittal is due, and we schedule the work to meet every deadline.
What you get, and how it runs
Deliverables
An engagement letter setting out the scope, the records we need, the fixed fee and the timetable, signed by both parties before work starts
Independent auditor's report under ASA 800 / ASA 805
Auditor's certification in the funder's own template where one is required (for example the Queensland Department of Housing CHAFR return)
A client representation letter (ASA 580) drafted for your signatory, confirming the completeness of the records and the figures in the acquittal
A short management letter where we find anything worth telling you, such as cut-off errors, cost apportionment issues or notes that do not match the funding agreement
Signed, lodgement-ready documents in PDF
The process
You send us the funding agreement and the draft acquittal statement. We quote a fixed fee and issue an engagement letter the same week.
We send a records list: ledger extract for the grant cost centre, remittance advices, payroll summary, and a list of the invoices we have selected for testing. You provide only what is on the list.
We do the work remotely from your records, raising queries by email as they arise.
We return the acquittal statement with any corrections to the notes, our report and the certification for signing.
You lodge with the funder. We keep the file for seven years and are available if the funder has questions.
Funders and programs we work with
We audit acquittals for grants from Queensland Government departments, Commonwealth departments and agencies, local governments and philanthropic foundations. Recent and typical engagements include:
Queensland Department of Housing and Public Works community housing and Home Assist Secure programs (CHAFR returns)
Queensland Department of Child Safety, Seniors and Disability Services service agreements
Commonwealth Department of Social Services and Department of Health and Aged Care program grants
Local government community grants, sport and recreation grants and infrastructure funding
Philanthropic and corporate foundation grants with an audited acquittal condition
If your funder or program is not listed, send us the agreement. The audit requirement is set by the agreement, not the funder's name, and we will tell you plainly what form of audit report it calls for.
Fees and timing
Fixed fee, quoted before we start. A single-grant acquittal audit with a clean ledger extract starts from $1,100 plus GST for standalone clients, and from $550 plus GST for existing audit clients. The fee depends on the size of the grant, the number of funding streams the costs are split across, and whether payroll forms part of the expenditure. Multiple grants for the same organisation are priced together.
The quote covers the audit, the report and the funder's certification. Extra work you ask for outside the engagement letter, such as preparing the acquittal statement itself or reconstructing records, is charged at $120, plus GST, per hour and agreed first.
Turnaround. Most acquittal audits are completed within two weeks of receiving the full records list. If a lodgement date is close, tell us when you ask for a quote and we will say whether it can be met.
Frequently asked questions
How do I know an audit is required?
Read the acquittal clause of your funding agreement. "Audited", "independent auditor's report" or "auditor's certification" all mean an audit. Send us the clause and we will confirm what it requires.
Our organisation is too small to be audited. Does that matter?
No. The acquittal audit is on the grant, not the organisation. A single grant can be audited even if your annual accounts are not.
Our council's financial statements are already audited by the QAO. Why do we need another audit?
The QAO audits the council's general purpose financial statements. Most program funding agreements also require an auditor's statement on the program's own receipts and expenditure, which the QAO audit does not provide.
What if we cannot find an invoice?
Tell us. We look for alternative evidence, such as a purchase order, delivery record or bank payment, and record the result. One missing invoice rarely changes the opinion; we will tell you if it does.
Do you prepare the acquittal statement as well?
We can help with the notes and format, but independence rules mean we cannot prepare the figures we then audit. If you need the statement prepared, we can recommend a bookkeeper and audit their work.
Can you work with our existing auditor?
Yes. Many of our acquittal engagements are for organisations whose annual auditor does not take on small special purpose reports. We liaise with them where needed.
Final Call to Action
Let’s make compliance clear, calm, and straightforward — so you can stay focused on your mission.
To prepare an accurate audit quote or tender, we just need a few key details from you:
Legal name of your organisation
Accounting software or cashbook used (e.g. Xero, MYOB, Excel, manual records)
Your funding agreement and your draft acquittal
You’re welcome to email these through or request a secure Dropbox link for upload.
Once we have this information, we’ll provide a clear, fixed-fee proposal tailored to your organisation.