How to prepare for acquittals before 30 June
The best acquittals are prepared progressively throughout the year, not rushed after EOFY.
Here are several practical steps charities and NFPs can take now to stay ahead.
Review all grant agreements. Start by reviewing every active funding agreement and documenting:
- Acquittal due dates
- Reporting formats
- Audit or review requirements
- Eligible expenditure categories
- Milestone obligations
- Any unspent funding conditions
Reconcile grant expenditure monthly. Each grant should ideally have its own tracking code, cost centre or project account within the accounting system. Monthly reconciliations allow finance teams to identify missing documentation, coding issues or under/overspending before EOFY pressure builds.
Organise supporting documentation. Funding bodies may request evidence to support expenditure claims. Ensure records are stored centrally and include:
- Supplier invoices
- Payroll records
- Timesheets
- Bank statements
- Contracts and approvals
- Outcome reports and KPIs
Monitor budget variances. Compare actual spending against approved grant budgets regularly. If expenditure differs materially from the approved budget, some funders may require written approval before reallocating funds. Addressing these issues early can prevent complications later.
Prepare for audit requirements early. Some acquittals require independent audits or reviews, particularly for larger government grants. Engaging with your auditor before EOFY ensures timelines are clear and supporting documentation is ready when needed.
Build acquittals into cash flow planning. Acquittal deadlines should be incorporated into broader financial planning and cash flow forecasting. Understanding when reports are due and when future funding depends on acquittal completion can help organisations avoid funding gaps and operational stress.
For charities and NFPs, acquittals are ultimately about accountability and trust. Well-managed acquittals demonstrate that funds are being used responsibly and that the organisation has the financial capability to deliver impact. With the EOFY approaching, now is the ideal time to review systems, strengthen processes, and ensure your organisation is well prepared before 30 June.
