What is an IAR?

Grant funded? What an independent accountant’s report involves, and how to keep your claim on track

Winning grant funding is a real achievement. It can pay for the research, people and equipment that move a business forward. But with public money comes accountability, and for many grants that means an independent accountant’s report, often called an IAR, before the funder releases each payment.

Why do funders ask for one?

Funders such as Innovate UK want comfort that their money is paying for the costs the grant was meant for, and that those costs were incurred under the grant’s terms. An independent accountant checks your claim against your records and reports on what they find.

Who arranges it?

Usually you do. Most funders leave it to the grant recipient to appoint the accountant, and many insist that it’s a registered auditor. The report is addressed to you, though everyone involved knows the funder will read it.

When is it needed?

That depends on the funder and how much you’re claiming. Some want a report on an early claim and another later in the project; others want one at the end. Check your grant offer letter, and if it isn’t clear, ask us.

What will we need from you?

Typically:

• Labour costs: payroll records and timesheets
• Subcontractor costs: Invoices and the agreements behind them
• Overheads
• Travel and subsistence: receipts and invoices.
• Materials: invoices
• Capital expenditure: invoices

How to make it painless

• Keep a separate cost code or tracking category for the project from day one.
• Record project time as you go, not at the end of the quarter.
• Keep invoices and proof of payment together, matched to each claim.
• Tell us early when a claim is coming, so the report doesn’t hold up your payment.

How we can help

Alexander Myerson are registered auditors with experience of grant audits for a range of funders. We’ll tell you up front exactly what we need, keep the process cost-effective, and turn the report around promptly.

If you have a claim coming up, get in touch.