Grant Audit & Independent Verification
Official Definition & Legal Scope
Grant auditing is an independent examination conducted by registered statutory auditors (ROAC) or public oversight bodies (IGAE) certifying lawful fund application and expense eligibility.
- •Ley 38/2003 General de Subvenciones (Artículo 74 del Reglamento RD 887/2006)
- •Norma de Actuación de los Auditores de Cuentas en la justificación de subvenciones (Orden EHA/1434/2007)
Scope and statutory mandate of grant audits
The auditor audits all project invoices, payroll records, bank transfer slips, and competitive procurement compliance under Art. 31.3 LGS.
Issues an Agreed-Upon Procedures (AUP) report submitted alongside final justification accounts.
Statutory audit protocol under Ministerial Order EHA/1434/2007
Verification of staff allocation records and employment contracts.
Validation of invoice compliance under fiscal invoicing regulations (RD 1619/2012).
Verification that expenses are free of double funding.
Common findings by statutory auditors
Missing 3 vendor quotes for procurement exceeding 15,000 €.
Discrepancies between invoice descriptions and approved project activities.
How FundingQuarry prepares audit-ready packages
FundingQuarry structures justification files indexed by line-item budget categories, cutting auditor review time and fees by up to 70%.
Key Regulatory Takeaways
- Mandatory when required by regulatory terms or specified funding thresholds.
- Must be performed by an independent statutory auditor registered with the ROAC.
- An auditor report does not preclude subsequent financial inspections by the IGAE.
Want audit-ready documentation structured for statutory reviewers?
Related Glossary Terms
Official References & Sources
- Orden EHA/1434/2007, de 17 de mayo (Norma de actuación de los auditores de cuentas)
Frequently Asked Questions
Are external audit fees eligible under grant budgets?
Yes, Article 74 RGS confirms auditor fees qualify as eligible costs when budgeted in the approved application.
Can an NGO's annual statutory auditor perform the grant audit?
Yes, the existing statutory auditor can be commissioned to audit project closeout accounts.
What happens if an auditor report includes qualifications or reservations?
The public agency will review questioned items and issue a formal clarification query prior to resolving the final liquidation.
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