Kirk Rice Blog

Grant assurance reports explained: what they are and when they are requiredWritten on March 27, 2026 by Kirk Rice LLP

Key Points

• A grant assurance report is an independent review of how grant funding has been used, typically required by funders before releasing payments or approving claims.
• Reports are often prepared as Independent Accountant’s Reports under ISAE (UK) 3000 and focus on whether expenditure meets grant conditions.
• Requirements are set by the funder and commonly apply at key stages, such as milestone claims or final project submissions.
• Early preparation and clear records can help reduce delays where funders require independent assurance.

What is a grant assurance report?

A grant assurance report is a review of how grant funding has been used, prepared to confirm that expenditure meets the conditions set out in the grant agreement.

It is often delivered as an Independent Accountant’s Report (IAR). This type of report focuses on a specific project or funding arrangement rather than the organisation’s overall financial statements.

The work typically involves reviewing project costs, supporting evidence, and whether spending aligns with the agreed terms of the grant.

When is a grant assurance report required?

Whether a grant assurance report is required depends on the conditions set by the funder.

Common trigger points include:

• Submission of a final claim
• Stage or milestone-based funding drawdowns
• Specific reporting requirements set out in the grant agreement

Funders often require independent assurance before releasing funds or confirming that claims are valid.

If you require support with a grant assurance report, see our Grant Assurance Reports service page.

What does an independent accountant check?

An independent accountant reviews whether the costs claimed under the grant meet the agreed conditions.

This may include checking:

• Whether expenditure is eligible under the grant rules
• Whether costs fall within the approved project scope and timeline
• Whether supporting documentation is available and consistent with claims

The work is focused on the specific requirements of the grant, rather than providing a full audit of the organisation.

What is ISAE (UK) 3000?

ISAE (UK) 3000 is a professional standard used when performing assurance engagements that are not audits or reviews of historical financial statements.

In the context of grant assurance, it provides a structured framework for preparing Independent Accountant’s Reports. This helps ensure that the work is carried out consistently and that the findings are reported clearly in line with the funder’s expectations.

What is limited assurance?

In many cases, grant assurance reports are prepared on a limited assurance basis.

This means the level of checking is narrower than a full audit. The accountant performs procedures designed to identify whether anything has come to their attention that suggests the grant conditions have not been met.

The scope and level of assurance are defined by the funder and the terms of the engagement.

When should you seek support with a grant assurance report?

It may be worth seeking support where:

• A funder requires an Independent Accountant’s Report as part of a claim
• You are approaching a reporting deadline or milestone
• The grant involves detailed or complex expenditure rules
• You want to ensure records and evidence are prepared in line with requirements

Why Kirk Rice?

Kirk Rice prepares Independent Accountant’s Reports under ISAE (UK) 3000 to support organisations receiving grant funding.

This includes reviewing project expenditure against grant conditions and helping ensure the reporting aligns with the funder’s requirements. Work is scoped to the specific grant, with a focus on clarity and practical delivery.

Grant assurance requirements can vary depending on the funder and the project. Understanding what is needed early can help reduce delays and support a smoother claims process.

If you would like to discuss your situation, contact info@kirkrice.co.uk

Please note: This article is correct as at the publication date. The answers are given for general guidance only and specific advice should be taken before acting on any of the suggestions made. The information is based on current tax legislation which may change in future. Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of relief from taxation are subject to change. The Financial Conduct Authority does not regulate tax planning.