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Guidance note for Pathway 2 Desktop Audit

Financial Controls

You will be asked to provide evidence that non-pay expenditure relating to this project has been appropriately incurred, i.e. approval of purchase orders and invoices for payment, and that payments to suppliers have been made promptly.  

Examples of acceptable evidence: Standard Operating Procedures; transaction lists; budget statements; performance against better payment practice code (if grant recipient organisation is a public sector organisation)  

Specific requirements for evidence / suggested additional evidence: If your organisation has an internal audit function, internal audit reports relating to non-pay expenditure may be requested and reviewed.  

For high-risk grant recipients, where projects are still ongoing, there will be a check that the organisation remains financially viable in order to deliver the remainder of the project.  

Examples of acceptable evidence: Budget statements; bank statements; most recent annual accounts 

 Specific requirements for evidence / suggested additional evidence: Annual accounts are only adequate evidence if they are dated within the last three months, as an organisation’s financial position may change over time. 

Checks will be undertaken that expenditure claimed for project management, dissemination or translation costs has actually been incurred, is relevant to the project and corresponds to the original application. 

Examples of acceptable evidence: Transaction lists from accounting system; invoices; receipts; approved purchase orders; original application 

Specific requirements for evidence / suggested additional evidence: Receipts and invoices must state the cost, supplier, date, currency and (where applicable) the VAT number. Credit card statements are not acceptable as evidence. 

Dissemination costs

Evidence will be requested to confirm that the outputs of the project have been communicated with its target audience. 

Examples of acceptable evidence: Copies of reports; marketing materials; articles in newspapers or magazines; electronic resources such as websites, portals or apps 

Specific requirements for evidence / suggested additional evidence: If evidence provided by grant recipient is incomplete or in doubt, undertake own checks via online searches and professional networks. 

Staff costs 

Where costs have been claimed, there will be a check that the individuals claimed for are employed by your organisation and are in the type of role for which the day rate is being claimed, e.g. senior manager, teacher / trainer, support / admin staff. 

Examples of acceptable evidence: Contracts of employment; payroll / accounting records; staff database entries; organisational charts 

Specific requirements for evidence / suggested additional evidence: Evidence should be triangulated with other information, e.g. website or LinkedIn profiles for key people, if any of the evidence provided is incomplete or in doubt.

 If only part of an employee’s time has been claimed for, check the amount of time which has claimed back to your organistion’s records.

 Examples of acceptable evidence: Timesheets; processed claim forms for temporary / casual workers 

Specific requirements for evidence / suggested additional evidence: Timesheets should usually be signed by the employee, either on paper, or electronically, if an electronic system is used.