Grant Acquittals Without the Panic: Best Practice for Australian NFPs

Grant acquittals are the bane of many charity treasurers' existence. Months after a grant ends, you're scrambling to gather receipts, match expenses to budget categories, and write reports that satisfy the funder's requirements.

Miss a deadline or get the numbers wrong, and you risk losing future funding. Worse, you might be asked to return the grant.

But acquittals don't have to be stressful. With the right systems and planning, you can acquit grants confidently and on time. This guide shows you how.

Quick Summary

• **Grant acquittal** is your formal report to the funder showing how you spent the grant money
• **Typical timeline**: 30–90 days after the grant ends
• **Common requirements**: Receipts, financial statements, program outcomes, variance explanations
• **Key risk**: Missing deadlines or submitting inaccurate reports can result in penalties or loss of future funding
• **Best practice**: Start tracking expenses from day one, not at the end of the grant period

What Is a Grant Acquittal?

A grant acquittal is your accountability report to the funder. It says: "Here's the money you gave us. Here's how we spent it. Here's what we achieved."

Funders require acquittals for three reasons:

1. Accountability: They want to ensure you spent the money as agreed 2. Compliance: Government and foundation funders have legal obligations to report on how grants were used 3. Learning: They want to understand what worked, what didn't, and what you achieved

For you, acquittals are an opportunity to demonstrate good governance, maintain the funder relationship, and secure future funding.

Types of Acquittals

Acquittals vary by funder and grant size. Common types include:

Financial Acquittal

A detailed breakdown of how you spent the grant money. Typically includes:

• Actual expenses vs. budgeted expenses
• Explanations for any variances (spending more or less than budgeted)
• Receipts and supporting documentation
• Bank statements showing grant deposits and withdrawals

Program Acquittal

A narrative report on what you achieved with the grant. Typically includes:

• Number of people served
• Outcomes achieved (e.g., skills gained, behaviour change, services delivered)
• Challenges and learnings
• Photos or case studies (if applicable)

Combined Acquittal

Many funders require both financial and program information in a single report.

Compliance Acquittal

For government grants, acquittals often include compliance statements confirming you:

• Spent the money as agreed
• Didn't use the grant for prohibited purposes
• Maintained proper records
• Complied with relevant laws and policies

Best Practice: The Acquittal System

Step 1: Understand the Grant Terms Before You Start

Read the grant agreement carefully. Look for:

• Acquittal deadline (usually 30–90 days after grant ends)
• Acquittal format and template (if provided)
• Required documentation (receipts, reports, photos)
• Expense categories (what can and can't be funded)
• Variance tolerance (how much can you spend differently than budgeted?)

Document this information in a "Grant File" that you'll use throughout the grant period.

Step 2: Set Up a Tracking System

Create a spreadsheet for each grant that tracks:

• Date
• Expense description
• Budget category
• Amount
• Receipt attached? (Yes/No)
• Notes

Update this spreadsheet monthly as expenses occur. Don't wait until the grant ends to start tracking.

Step 3: Segregate Grant Funds (If Possible)

If you receive a large grant, consider opening a separate bank account for grant funds. This makes it easier to track spending and reconcile at the end.

If you can't open a separate account, use your accounting software (Xero, MYOB) to tag all grant-related transactions with a "grant code." This lets you filter and report on grant spending easily.

Step 4: Collect Receipts and Documentation

As expenses occur, collect receipts and file them. Create a folder (physical or digital) for each grant. Store receipts in chronological order.

For large expenses, also document:

• What was purchased and why
• Who approved the purchase
• How it relates to the grant objectives

Step 5: Track Program Outcomes

If the grant has program deliverables, track outcomes as they occur:

• Number of people served each month
• Outcomes achieved (e.g., skills gained, services delivered)
• Challenges and adaptations
• Photos or quotes from participants (with consent)

Don't rely on memory at the end. Record this data monthly.

Step 6: Reconcile Quarterly

Every three months, reconcile your tracking spreadsheet to your bank account:

• Do the totals match?
• Are all receipts accounted for?
• Are there any unexplained discrepancies?

Fix issues early, not at the end of the grant.

Step 7: Prepare the Acquittal 30 Days Before the Deadline

Don't wait until the last day. Start preparing 30 days before the deadline:

• Gather all receipts and documentation
• Calculate final expenses and variances
• Write the program narrative
• Prepare any required reports or forms
• Have someone (treasurer or board member) review before submission

Step 8: Submit Early

Submit your acquittal at least 5 days before the deadline. This gives you time to fix any issues the funder raises.

Common Acquittal Mistakes and How to Avoid Them

Mistake 1: Missing the Deadline

Many charities submit acquittals late, which can result in penalties or loss of future funding.

How to avoid it: Set a calendar reminder for 60 days after the grant ends. Start preparing then.

Mistake 2: Inaccurate Financial Information

Charities sometimes submit acquittals with incorrect totals or mismatched receipts.

How to avoid it: Reconcile your tracking spreadsheet to your bank account before submitting. Have someone else review the numbers.

Mistake 3: Large Unexplained Variances

If you spent significantly more or less than budgeted, the funder will ask why.

How to avoid it: Document variances as they occur. If you spend more on salaries because you hired an extra staff member, note it. If you spend less on travel because of COVID restrictions, explain it. Don't leave the funder guessing.

Mistake 4: Missing Receipts

Some charities submit acquittals without all required receipts.

How to avoid it: Collect receipts as expenses occur. If you lose a receipt, get a duplicate from the supplier or use a bank statement as evidence.

Mistake 5: Vague Program Outcomes

Some charities submit acquittals that say "we delivered the program" without specifics.

How to avoid it: Track specific outcomes: number of people served, skills gained, behaviour change, etc. Use data, not vague statements.

Mistake 6: Not Following the Funder's Template

Some charities submit information the funder didn't ask for or in a format they didn't request.

How to avoid it: Read the grant agreement and acquittal template carefully. Follow the format exactly. If the funder asks for three pages, don't submit ten.

What to Include in Your Acquittal

Financial Section

• Summary of grant amount and how it was spent
• Detailed breakdown by budget category (salaries, travel, materials, etc.)
• Actual vs. budgeted spending
• Explanations for any variances over 10%
• Bank statements showing grant deposit and withdrawals
• Receipts for all expenses (or summary if too many)

Program Section

• Overview of what you delivered
• Number of people served or outcomes achieved
• Specific examples or case studies (with consent)
• Challenges encountered and how you addressed them
• Learnings and recommendations for future programs
• Photos or testimonials (if applicable)

Compliance Section

• Confirmation that funds were spent as agreed
• Confirmation that no prohibited expenses were incurred
• Statement that records are available for audit
• Any conflicts of interest or issues to disclose

Frequently Asked Questions

Q: What if we spent less than the grant amount? A: Report it honestly. Explain why (e.g., lower than expected costs, fewer participants than anticipated). Most funders are okay with this, but some may ask you to return the unspent amount. Check your grant agreement.

Q: What if we spent more than the grant amount? A: You've funded the overspend from your own resources. Document this and explain why in your acquittal. Most funders won't reimburse overspends, so be careful not to commit to deliverables you can't afford.

Q: Can we use the same acquittal for multiple funders? A: No. Each funder has different requirements and templates. Tailor your acquittal to each funder's requirements.

Q: What if we can't find a receipt? A: Contact the supplier for a duplicate. If that's not possible, use your bank statement as evidence. Document the issue in your acquittal.

Q: How long should we keep acquittal records? A: At least 5 years. Some funders require 7 years. Check your grant agreement.

The Bottom Line

Grant acquittals don't have to be stressful. With a good tracking system, monthly reconciliation, and early preparation, you can submit confident, accurate acquittals on time.

Start tracking from day one. Collect receipts as expenses occur. Reconcile quarterly. Prepare early. Submit on time. Your funders will appreciate it, and you'll maintain the relationships that keep your charity funded.

Book a Free 30-Minute Board Briefing to discuss your grant management and acquittal processes. Book now →

References

[1] Australian Charities and Not-for-profits Commission. (2026). Grant Management Best Practice. https://www.acnc.gov.au/