Independent Accountant’s Reports (IARs) for Grant Claims

Securing innovation funding’s a major milestone worth celebrating for any organisation, but as soon as funding’s awarded, it comes with strict reporting and compliance requirements.

At TC Group, we provide Independent Accountant’s Reports (IARs) to ensure your claims to funding bodies, including Innovate UK, are accurate, compliant, and fully supported by robust financial evidence.

Whether you’re submitting your first claim, final claim, or annual report, our experienced Audit team makes the process straightforward so you can focus on delivering your project.

 

What’s an Independent Accountant’s Report (IAR)?

An Independent Accountant’s Report is a financial verification report prepared by a registered auditor to confirm that project costs claimed against grant funding are:

• Eligible under the funding rules
• Accurate and properly recorded
• Supported by appropriate evidence

Think of it as a financial checkpoint.

With grant funding typically coming from government or public sources, and in some cases charitable organisations, these funding bodies want to ensure your grant’s spent exactly as agreed. The IAR provides independent confirmation that the costs claimed are both correct and compliant.

An IAR involves reviewing evidence such as:

• Timesheets
• Payroll records
• Invoices and receipts
• Project documentation

 

When’s an Independent Accountant’s Report required?

For many projects funded by UK Research and Innovation (UKRI), an IAR’s mandatory depending on the level of funding awarded.

Typical requirements include:

• Grants under £50,000: Usually only a Statement of Expenditure (SoE) signed by a director’s required
• £50,000 – under £100,000: One IAR, typically submitted with the final claim
• £100,000 – under £500,000: An IAR’s required for both the first and final claim
• £500,000 – £2 million: IARs are required for the first and final claims, and annually at the project anniversary
• Over £2 million: An IAR’s generally required with every claim submitted

Any partner in a consortium with eligible project costs exceeding £50,000 must submit an IAR as part of the compliance process.

 

Why getting it right matters

If an IAR or Statement of Expenditure isn’t submitted, organisations may be blocked from receiving future funding through UKRI competitions until the required reports are provided.

It’s also important to note that IAR and accounting services are classed as ineligible project costs, meaning they can’t be claimed as part of the grant.

Therefore, getting the report right and submitting it on time’s critical to protecting your current and future funding opportunities.

 

How TC Group supports your IAR submission

Our specialist in-house Audit team has extensive experience supporting organisations claiming funding from Innovate UK and other grant bodies.

As part of our IAR service we’ll:

• Review your accounting records and project correspondence
• Examine the grant offer letter, budgets and forecasts in great detail
• Verify that the amounts claimed are both reasonable and accurate
• Test overhead calculations and confirm no double funding’s occurred
• Ensure VAT and interest are excluded from claims
• Confirm no profit margin has been applied to project costs
• Verify that all invoices were paid within the claim period

If you’re preparing a funding claim, having the right expertise in place can save time, reduce risk, and help ensure your funding continues successfully.

Get in touch with our TC team today to find out how we can support your IAR and keep your funded project fully compliant.

Audit Services 

 

FAQs on Independent Accountant’s Reports

What funding bodies and grants require an IAR?

While not exhaustive, funding organisations such as Innovate UK, Regional Growth Funds, Arts Council England and Wales, Horizon Europe, and Department for Business, Energy and Industrial Strategy may require an IAR as part of their assurance and compliance processes.

How long does it take to prepare an IAR?

The timeframe depends on the size and complexity of the claim, but our team plans carefully to ensure your IAR’s ready in time for submission deadlines.

What documents do I need to provide for an Independent Accountant’s Report?

In most cases we’ll need access to:

• Payroll records and timesheets
• Supplier invoices and receipts
• Project budgets and forecasts
• Grant documentation
• Supporting project records

What does an Independent Accountant’s Report involve? 

1. An initial conversation to understand requirements, followed by a formal engagement proposal
2. You’ll provide the funding agreement along with relevant documentation
3. We’ll review a sample of transactions in detail
4. We’ll ask for evidence such as invoices, bank records, and payroll information
5. Detailed testing is carried out
6. You’ll have the opportunity to provide clarification where required
7. The Independent Accountant’s Report is finalised and issued