Grant Acquittal Explained: How to Write an Acquittal Report

Winning a grant is the exciting part. Acquitting it is the part that decides whether you get the next one.

An acquittal is how you show the funder that you spent their money as agreed and achieved what you said you would. For many small groups it is an afterthought, done in a rush months after the project ended, with receipts scattered across three volunteers' cars. It does not have to be that way.

This guide explains what an acquittal is, what funders usually ask for, and how to make it quick and painless.

What a grant acquittal is

A grant acquittal is the final report you submit at the end of a grant. It usually has two parts:

A financial report showing how the grant money was spent, compared with the approved budget.
A project or outcomes report describing what you delivered, who benefited and what changed.

Some larger or longer grants also require progress reports during the project, with the acquittal at the end.

How much reporting to expect

The level of reporting usually reflects the size and risk of the grant. The Australian Government's Commonwealth Grants Rules and Principles 2024, which apply to federal grants, ask officials to apply a proportionality principle, so that reporting and acquittal requirements match the scale and risk of the grant. Small, low-risk grants should not carry heavy reporting.

In practice, across all funders:

Small council or community grants may need a short online form, receipts or a spending summary, and a few photos.
Medium grants often need a financial statement against the budget, a short narrative report and evidence of outcomes.
Large grants may need audited or independently reviewed financial statements, detailed outcome data and progress reports at set milestones.

Your funding agreement tells you exactly what is required and when. Read it as soon as you sign it.

What to do on day one

Set yourself up for an easy acquittal before you spend a dollar:

Diarise every reporting date in a shared calendar, with reminders a month ahead.
Create a folder for the grant, digital or paper, with sections for the agreement, receipts, photos, attendance records and correspondence.
Note the conditions, such as acknowledging the funder, required quotes, and what you can and cannot spend money on.
Set up tracking. A simple spreadsheet with your approved budget lines and a column for actual spending works well. Some groups use a separate bank account or a separate tracking code in their accounting software for each grant.
Decide who is responsible for collecting receipts and data, and tell everyone involved.

Records to keep

Keep these throughout the project:

Tax invoices and receipts for every purchase
Proof of payment, such as bank statements
Quotes used to choose suppliers
Payroll or contractor invoices for any paid work
Attendance records, sign-in sheets or participant numbers
Feedback, surveys or quotes from participants (with permission)
Photos of the project, the equipment or the event, ideally showing the funder's acknowledgement
Copies of promotional material that acknowledge the funder
Emails approving any changes to the project or budget

Remember privacy. Get consent before using photos of people, especially children, and do not send funders personal information they have not asked for.

How to write the financial report

The financial report compares what you planned to spend with what you actually spent.

A simple format:

Budget line	Approved budget	Actual spend	Variance	Explanation
Facilitator fees	$2,400	$2,400	$0
Kitchen equipment	$1,850	$1,795	$55 under	Supplier discount
Ingredients	$1,000	$1,060	$60 over	Higher attendance; covered by club funds
Total grant	$5,250	$5,255	$5 over	Overspend covered by club

Tips:

Match the line items to your approved budget.
Explain any variance briefly.
Show whether figures include or exclude GST, consistent with your original budget.
If money is left over, say so. Many agreements require unspent funds to be returned or a variation to be approved for using them.
Have your treasurer check and sign off the figures. Some funders require a declaration from an office holder.

How to write the outcomes report

The outcomes report tells the story of what happened. Keep it clear and honest.

Restate what you set out to do

One or two sentences summarising the project and its aims, as approved.

Report your outputs

What you delivered, with numbers: sessions held, people attending, items purchased, events run.

Report your outcomes

What changed as a result. Use the measures you promised in your application, for example survey results showing improved skills or confidence, more members, or new partnerships formed.

Include a short story

A brief example, quote or case study brings the numbers to life. "One participant, who had not left home regularly since her husband died, now helps run the Thursday lunch" says a lot in one line.

Be honest about what did not go to plan

Funders know projects change. Explain what happened, what you did about it and what you learned. Honesty builds trust. Hiding problems damages it.

Attach evidence

Photos, sample feedback, copies of promotional material showing acknowledgement, and anything else the agreement asks for.

What if plans changed?

Projects rarely run exactly as planned. If something changes:

Tell the funder early. Contact them as soon as you know a change is coming, not at acquittal time.
Ask for a variation in writing if you need to change activities, move money between budget lines, change suppliers or extend the timeline.
Keep the approval with your grant records.
If you cannot complete the project, talk to the funder about options. You may need to return some or all of the money.

Most funders are reasonable when they are kept informed. Surprises at acquittal time are what cause problems.

Why acquittals matter so much

Future funding. Many funders will not consider a new application while an earlier grant is unacquitted. Some councils make this an explicit eligibility rule.
Reputation. Funders talk, and a reliable track record helps across the sector.
Better applications. Good acquittal data gives you evidence for your next application.
Accountability. Grant money is public or donated money. Reporting on it properly is part of being a trustworthy organisation.

Quick checklist

Reporting dates in a shared calendar
Grant folder set up with agreement, receipts and evidence
Spending tracked against each budget line
Variations requested and approved in writing
Financial report matches approved budget, with variances explained
Outcomes reported using the measures you promised
Photos and acknowledgement evidence attached
Unspent funds handled as the agreement requires
Submitted on or before the due date

For help planning reporting from the start, see our guides on how to write a grant budget and how to write a grant application.

Find your next grant

See which grants match your organisation, free, at grantfinderpro.com.au/find. Matches are a rough guide to eligibility, so always check each grant's guidelines and reporting requirements.