The information regarding the level of audit (actually, it is an accountants report that is sample-based and fairly light touch) is quite hard to come by, and is buried in an annex which comes with your successful grant paperwork.
Each claim is quarterly for costs defrayed in the previous quarter. The cost of the report is ineligible towards your project.
Briefly (and this is subject to change) the current levels are:
- Very large grant or special circumstances
Grant of £2m or more – report required with all claims.
- Grant £500k – below £2m
Report required with first claim, last claim and each anniversary of the project start date.
- Grant £100k – below £500k
First and last claims only.
- Grant below £100k for all organisations
Last claim only.
- Grant <= £25K
Formal report replaced by statement of expenditure, including eligible costs incurred and paid, signed by a Director of the Participants.
It is useful to be aware of this, as failure to comply can lead to delays with claims. It also focusses the minds of project participants who are sloppy with their financial paperwork.