Grant Audit Singapore: Ensuring Compliance for Government Funding
In Singapore, government grants such as the Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), and various innovation support schemes help businesses grow and innovate. While these grants provide valuable financial support, recipients are often required to undergo a grant audit to ensure funds are used appropriately.
A grant audit in Singapore is a crucial process for companies that have received government funding. It ensures transparency, accountability, and compliance with funding agency requirements. Failing to comply with audit guidelines can lead to repayment of funds or disqualification from future grants.
In this article, we’ll explore what a grant audit involves, why it’s important, and how businesses in Singapore can prepare for a successful audit.
What Is a Grant Audit?
A grant audit is a review conducted by an independent audit firm to verify that government grant funds have been spent according to the approved budget and purpose. It provides assurance to government agencies that the grant has been used properly.
This audit is typically required after project completion and before final disbursement of grant funds. Some grants may also require interim audits for ongoing projects.
Common Government Grants That Require Audits
Singapore offers several popular grants that may require audit certification from an approved public accountant:
1. Enterprise Development Grant (EDG)
Administered by Enterprise Singapore, the EDG supports projects related to core capabilities, innovation, and market access. A post-project grant audit is mandatory for claims above a certain threshold.
2. Productivity Solutions Grant (PSG)
The PSG funds IT solutions and equipment to improve productivity. While audits are not always required, selected cases may be audited to ensure proper fund usage.
3. Market Readiness Assistance (MRA)
For businesses expanding overseas, the MRA grant may require an audit to validate expenses related to marketing and internationalization efforts.
4. Innovation and Capability Voucher (ICV)
Though now replaced, older ICV projects may still be subject to post-audit reviews to validate the impact and use of funds.
Why Is a Grant Audit Important?
Engaging a professional audit firm ensures your business:
- Remains compliant with grant terms and government regulations
- Avoids penalties or the need to return disbursed funds
- Strengthens credibility with future grant applications
- Identifies internal control improvements for better financial reporting
Auditors will examine project costs, assess supporting documents, and ensure the expenses match the approved scope and timeline.
What Is Covered in a Grant Audit?
During a grant audit in Singapore, auditors will typically:
- Verify that expenses claimed are consistent with the grant proposal
- Check for supporting documents like invoices, receipts, contracts, and payment vouchers
- Ensure payments were made within the approved project timeline
- Confirm proper allocation of manpower and other project resources
- Identify any unapproved or ineligible expenditures
The final output is an audit report that must be submitted to the grant agency—typically Enterprise Singapore or IMDA.
Choosing a Grant Audit Firm in Singapore
When selecting a firm to conduct your grant audit, consider the following:
✅ Public Accounting License
Ensure the firm is approved by ACRA and has experience handling government grant audits.
✅ Industry Experience
Choose auditors familiar with your industry to ensure accurate interpretation of expenses and project scope.
✅ Transparent Pricing
Clarify the audit fees in advance, especially for smaller grants with tighter budgets.
✅ Timeliness
Audits must often be completed within a strict time window after project completion. Select a firm known for meeting deadlines.
Tips for a Smooth Grant Audit Process
To prepare your company for a grant audit:
- Keep clear records: Maintain original copies of invoices, receipts, contracts, and bank statements related to the grant.
- Track manpower costs: Document time spent by staff on the project with time sheets or HR reports.
- Stay within budget: Only claim approved items listed in the grant application.
- Communicate with auditors: Respond promptly to queries and submit all requested documents.
Well-prepared documentation not only simplifies the audit process but also ensures faster grant disbursement.
Final Thoughts
A grant audit in Singapore is more than just a formality—it’s a key step to secure and justify the funding your business has received. With increasing emphasis on transparency and accountability, grant audits are here to stay.
By working with an experienced audit firm, businesses can meet compliance requirements, avoid issues with IRAS or Enterprise Singapore, and build a track record that improves their chances of future grant approvals.
Whether your company is claiming the EDG, PSG, or other government support, be audit-ready from the start. Good financial practices combined with expert audit guidance ensure smooth reporting and continued funding opportunities.