For businesses aiming to grow and innovate, grant funding can be a vital source of support. However, with funding comes certain requirements, including the need to submit an Independent Accountant’s Report (IAR) alongside claims for grant drawdown. In this article, Lara Marshall, UNW’s Grant Support Services Manager and resident grant specialist, explains what an IAR is, why it’s essential, and how UNW can guide you through the process.
What is an Independent Accountant’s Report?
Many grant schemes require businesses to submit an IAR, on at least an annual basis, to support their claims for grant drawdown.
The IAR is prepared by a registered auditor and provides assurance that the costs claimed in the period are eligible and that the terms and conditions of the funding agreement have been met.
Through this process, businesses gain validated assurance that their grant claim is properly prepared and compliant, enabling smooth access to funding.
When is an IAR Required?
The frequency of IAR submissions depends on the terms outlined in your grant funding agreement. While some grants require quarterly reports, others may only mandate an IAR at the end of the project. However, it’s important to note that an IAR is always required when submitting the final claim.
In some cases, the cost of producing the report can be included as part of the eligible expenditure under the grant funding agreement. This means audit fees may be covered by the grant itself, reducing the financial burden on the recipient.
What Does the Process Involve?
An IAR will be produced once the grant audit work has taken place. It involves a structured review of the costs and jobs submitted in your claim. Key steps include:
Gathering Evidence: This typically includes proof of costs incurred, proof of payment and payroll documentation.
Testing Compliance: The auditor ensures the terms of the grant agreement are adhered to.
Providing Assurance: A formal report is prepared, giving an opinion on the eligibility of the claim.
The specific scope of work will depend on the grant scheme’s requirements, but maintaining clear records and documentation is essential for a smooth process.
How UNW Can Help
UNW’s Grant Support Services team has extensive experience providing IARs across a wide range of schemes, including:
- Innovate UK
- Industrial Energy Transformation Fund
- Automotive Transformation Fund
- Life Sciences Innovative Manufacturing Fund
- Offshore Wind Manufacturing Investment Support
- Regional Growth Fund
- Exceptional Regional Growth Fund
- Horizon Europe
- Horizon 2020
- Department for Education Funding (including Annex Gs)
With over 25 years of expertise in grant support, our specialists are here to guide you through every step of the process—from grant applications to audits and IAR preparation. Since 2012 alone, we’ve supported over 550 UK and overseas businesses and organisations in accessing more than £550m in grant funding.
Our thorough approach ensures your claims are maximised while staying fully compliant with the terms of your funding agreement.
If you have received, or are in the process of receiving grant funding, our team is here to help. Contact Lara Marshall, UNW’s Grant Support Services Manager, for expert advice and support.