Control procedures

1.1. Review the application and offer letter for the project, including the approved cost framework and the terms set out in our offer letter. 

1.2. Obtain a printout of the project accounts specified in the offer letter.

1.3. State the total approved costs in the project accounts on which the audit procedures were performed.

2.1. Check that the accounts are prepared in line with the approved costs set out in the offer letter.

2.2. Check that the organisation number/identification in the offer letter matches the entity that will submit the project accounts.

2.3. Check that the project accounts match the recorded project accounts and that the figures have been transferred and totalled correctly.

2.4. Check that the approved project period stated in the offer letter matches the period in which costs were incurred, including any hours recorded for the project.

You must comply with the bookkeeping regulations. Review at least five supporting documents covering at least 50% of the external project costs, and check that:

3.1. The invoice is addressed to the company receiving the grant.

3.2. The invoice has been recorded in the project accounts for the correct amount excluding VAT and in the correct period.

3.3. The invoice has been paid or is listed as an outstanding item in the supplier ledger. Also check that no credit notes have been recorded against the invoice.

3.4. The invoice relates to the project and is consistent with the approved costs set out in the offer letter.

3.5. The delivery and/or specification of the goods and/or services delivered is consistent with the approved costs set out in the offer letter.

3.6. If the purchase is from a related party, check that the hourly rate does not exceed the approved rate. Read more about approved hourly rates and the definition of related parties. However, if an hourly rate is specified in the special terms and conditions, you must use this rate.

Overhead costs are included in the standard rate for any internal hours and cannot be charged separately to the project accounts.

4.1. Check that no overhead costs have been charged to the project accounts.

If the approved project includes a proportion of the depreciation on new investments:

4.2. Check that the project's depreciation charges for the investment relate to the project and are consistent with the approved costs set out in the offer letter.

5.1. Check that any use of your own employees and equipment is in line with the amounts specified in the offer letter.

5.2. Check that the company has a system for recording the number of hours its own employees spend on the project in accordance with the guidelines in section 3, and obtain the supporting timesheets.

5.3. Check that those who have recorded hours on the project are employed by the company and are included in the payroll reported in the A-melding.

5.4. For self-employed individuals, check that timesheets have been prepared in accordance with the guidelines above.

5.5. Check that no employee has recorded more than the maximum permitted number of hours (1,850), and assess whether the number of hours recorded by each employee is reasonable in light of their other responsibilities within the company.

5.6. Check that employees involved in the project have not reported hours on the project during periods when they were on holiday or had reported sick leave.

5.7. Check that the timesheet has been signed/approved by the employee and their project manager. The project manager and employee must sign timesheets on an ongoing basis in accordance with the guidelines above.

5.8. Check that the hourly rates comply with our applicable rates for each income year. Read more about approved hourly rates.

5.9. Check that the employee's nominal annual salary for the relevant period is used.