| Let’s look at what you need to think about when your grant scheme reaches maturity.
On financial completion, there will usually be a need for the final claim or statement of expenditure to be independently certified.
Use the questions below as prompts. Click on each question to see our answer which sets out:
- what you ought to do as a minimum;
- the extra steps for good practice you can consider; and
- the benefits that good practice should bring for you!
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How will I make final settlements?
You should deal promptly with certified claims and, in particular, with qualified certificates. Failure to do so undermines the whole process and throws into question the purpose of seeking assurance in the first place.
Claims should be checked to ensure they are valid, acceptable and contain the necessary certifications.
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How will assurance be given (eg by auditors)?
This will entail either:
- for most public sector bodies, agreeing a certification instruction with the Wales Audit Office; or
- for commercial and voluntary sector grants and a minority of public sector bodies, issuing defined procedures/engagement letters to other auditors.
For claims certified under the Auditor General for Wales’ arrangements, the Wales Audit Office issues a specific certification instruction (CI) for his appointed auditors and contractors to follow. This sets out the key financial terms for the grant, advises auditors of the reference documents they will need to refer to; and a list of tests they must perform. It also confirms which document is to be certified and how and when it is to be submitted to the paying body. Grant paying bodies need to agree the CI with the Wales Audit Office before the latter is able to provide it to auditors and the certification work begins.
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How will I pursue overdue audits?
There should be clear arrangements for dealing with ‘stragglers’ where deadlines are missed. Paying bodies should keep a register of recipients expected to submit claims and monitor their eventual receipt and processing. Overdue claims should be chased, particularly where an auditor certificate is needed – in case there has been some misuse of money which is being concealed.
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How will I control extensions?
If the recipient misses their deadline for the submission of a certified claim, they will not have fully complied with your terms and conditions. To prevent this, recipients may ask you to allow them more time to arrange for production of the auditor’s certificate.
How you respond will be influenced by a number of factors, including the recipient’s track-record and performance, the information you have from recent monitoring, and anything you can find out from the grants database.
As additional good practice, it may also be worth obtaining a quick credit reference.
If you do allow an extension, you should always ascertain the reason for the applicant’s request, examine it with due caution, and then confirm it in writing setting out the deferred deadline clearly. The recipient will bear any other consequences of late certification provided for in your terms and conditions.
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How will I follow-up auditor qualifications?
You should resolve any uncertainties you may have about the contents of certified claims. You should process amendments accurately and notify recipients promptly if any amendments need further investigation before being accepted.
Similarly, matters in qualification letters should be dealt with promptly and effectively. You should:
- consider all of them and treat issues consistently;
- decide how to act on the facts provided;
- require recipients to confirm the lessons learned and the corrective action taken;
- consider if any further information/documents should be provided to you by the recipient;
- consider whether any further work is needed by the auditor;
- consider whether to recover overpaid grant and/or suspend future payments;
- consider any wider action needed by your colleagues.
As extra good practice, where qualifications suggest your terms and conditions should be revised to provide further clarity or eliminate ambiguity, this should be done.
This will help to reduce the likelihood of future qualifications and help everyone administer future awards.
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