Grant Acquittal for Hospitality & Tourism
A structured procedure for preparing and submitting grant acquittal reports to funding bodies, demonstrating that grant funds were spent in accordance with the grant agreement.
Purpose
To ensure that all grant funding is acquitted accurately and on time, demonstrating compliance with the grant agreement conditions, maintaining eligibility for future funding, and fulfilling accountability obligations.
Scope
Covers the acquittal process for all grants received by the organisation, including government grants, philanthropic funding, and event-specific grants. Includes financial and narrative reporting.
Prerequisites
- Grant agreement document including acquittal requirements, reporting templates, and deadlines
- General ledger with grant expenditure tracked in a separate cost centre or event code
- Supporting documentation for all expenditure items charged to the grant
- Access to the funding body online portal for lodgement if applicable
Includes food safety compliance (HACCP), RSA requirements, liquor licensing documentation, and tourism accreditation record keeping.
Step-by-Step Procedure
Review the Grant Agreement Requirements
Review the grant agreement to confirm the acquittal requirements including reporting format, eligible expenditure categories, deadlines, and any specific conditions.
- 1.1Locate the grant agreement and any variations or amendments
- 1.2Identify the acquittal report format and template specified by the funding body
- 1.3Note the acquittal deadline and any interim reporting requirements
- 1.4Confirm the eligible expenditure categories and any conditions on fund usage
Extract and Review Grant Expenditure
Extract all transactions coded to the grant from the general ledger and review each item for eligibility and correct classification.
- 2.1Run a transaction report for the grant cost centre or event code
- 2.2Review each transaction for compliance with the eligible expenditure categories
- 2.3Identify and reclassify any ineligible or incorrectly coded expenditure
- 2.4Reconcile total expenditure to the grant funding amount received
Gather Supporting Documentation
Compile all supporting documentation for each expenditure item including invoices, receipts, payroll records, and timesheets as required by the funding body.
- 3.1Match each transaction to its supporting invoice or receipt
- 3.2Gather payroll documentation for any staff costs charged to the grant
- 3.3Compile evidence of procurement processes followed for major purchases
- 3.4Organise documentation in the booking it will be presented in the acquittal report
Prepare the Financial Acquittal Report
Complete the financial section of the acquittal report using the funding body template, showing how grant funds were expended against each budget category.
- 4.1Populate the acquittal template with actual expenditure by category
- 4.2Show the variance between budgeted and actual expenditure for each category
- 4.3Provide explanations for any material variances from the approved budget
- 4.4Include a statement of grant funds received and total expenditure
Prepare the Narrative Report
Complete the narrative or outcomes section of the acquittal report, describing the activities undertaken, outcomes achieved, and how the grant objectives were met.
- 5.1Describe the activities and deliverables completed under the grant
- 5.2Report on the outcomes achieved against the grant objectives
- 5.3Include any quantitative measures or evidence of impact
- 5.4Acknowledge the funding body in accordance with the grant conditions
Review and Obtain Sign-Off
Review the complete acquittal report for accuracy and compliance, and obtain the required sign-off from the authorised officer.
- 6.1The Finance Manager reviews the financial report for accuracy
- 6.2Cross-check the financial report to the general ledger and supporting documentation
- 6.3The authorised signatory reviews and signs the acquittal declaration
- 6.4Ensure any required independent audit or certification is obtained if stipulated by the grant
- Some grants require an independent audit of the acquittal — check this early and allow sufficient lead time
Submit the Acquittal Report
Submit the completed and signed acquittal report to the funding body by the due date via the specified submission method.
- 7.1Submit the report via the funding body online portal, email, or post as required
- 7.2Include all mandatory attachments and supporting documentation
- 7.3Obtain a submission confirmation or receipt
- 7.4Record the submission date and reference in the grant register
Archive and Follow Up
File all acquittal documentation and follow up on any queries from the funding body.
- 8.1Save the complete acquittal package to the grant folder in the document management system
- 8.2Retain all records for the period specified in the grant agreement (typically seven years)
- 8.3Respond promptly to any queries or requests for additional information from the funding body
- 8.4Note any lessons learned for future grant acquittals
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
All grant acquittals are submitted by the funding body deadline with zero late submissions.
At least 95% of acquittal reports are accepted by the funding body without requiring rework or additional information.
The organisation maintains eligibility for future grants by consistently meeting acquittal obligations.
Frequently Asked Questions
Can we reallocate funds between budget categories?
Some grant agreements allow minor reallocations between budget categories (e.g., up to 10%) without prior approval. Larger reallocations typically require written approval from the funding body before the expenditure is incurred.
Is an independent audit required for grant acquittals?
Some grants, particularly those above a certain dollar threshold, require the acquittal to be certified by an independent auditor. Check the grant agreement conditions early in the process to allow time for the audit.
What if we discover ineligible expenditure after submitting the acquittal?
Notify the funding body immediately, provide an amended acquittal report, and arrange repayment of any ineligible amounts. Early disclosure and transparency are critical for maintaining trust with the funding body.
What happens if we underspend the grant?
Underspent grant funds may need to be returned to the funding body depending on the grant agreement terms. Some agreements allow retention of underspent funds if the event objectives were achieved. Check the specific grant conditions.
How long must grant records be retained?
Grant records must typically be retained for seven years from the date of the final acquittal, or as specified in the grant agreement. Some funding bodies have longer retention requirements.
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