AUDIT Q & A’S
Do we need to be accountable for funds received?
Yes, all grants funded by The Lion Foundation must be audited no matter how small or what the authorised purpose is.
Is there a time frame in which to spend the grant?
Yes, either 3, 6 or 12 months from the date of receipt of funds. On request, your audit date can be extended to a maximum period of 12 months. IT MUST NOT EXCEED 12 MONTHS – all required audit materials must be received on or before the audit date.
What is an ‘authorised purpose’?
An authorised purpose is defined by Section 4 of the Gambling Act 2003. The authorised purpose for your grant will be clearly stated in the email communication sent to the organisation upon approval of the grant. What all authorised purposes have in common is that they benefit the community and do not result in commercial or personal gain.
Please note the APPROVED SPECIFIC PURPOSE as stated in the email communication.
Can we amend the authorised purpose?
Grant recipients may only use the funding for the specific Authorised Purpose for which the grant application was made and approved.
If funding is applied or used for any other purpose, the funds must be refunded.
Any request for permission to amend the Authorised Purpose must be made in writing to audit@lionfoundation.org.nz. If TLF agrees to amend the Authorised Purpose, this will be communicated in writing.
If the authorised purpose contains a timeframe, do we have to comply?
Yes, it is important that the grant must be spent in the timeframe stated.
What is a line of payment?
A line of payment comprises the following:
- Supplied quote at time of application.
- Copy of paid invoice that matches quote.
- Copy of bank statement proving payment of item or service.
- Audit summary or report (prior to 1 January 2025)
- Declaration- Audit and Accountability (after 1 January 2025)
What audit/accountability documentation is required?
Grants prior to 1 January 2025 – For a Lion Foundation audit summary, you will need to provide a signed copy of the Audit Summary Report, including copies of paid invoices and bank statements proving payment. Documentation can still be posted or couriered to TLF.
Grants after 1 January 2025 – All audit/accountability requirements must be completed in the COMS grants system. Hard copies of documentation will not be accepted. Please download the Declaration Audit and Accountability and upload together with all other required documentation.
Once the funds are granted, do we need to use the same quotes and suppliers we provided in our application?
Yes, however if the supplier is no longer in existence or unable to provide the service then you must request a change of supplier in writing ( email audit@lionfoundation.org.nz) and attach a copy of the replacement quote. If TLF agrees to a different supplier/vendor, this will be communicated in writing.
What if the grant is for wages?
Please provide myIRs showing gross salary payment for every month funding is required, as well as copies of bank statements proving the payment of wages.
Should we notify the Lion Foundation if the position or person changes (salaries/wages)?
Yes, if the person is replaced, please forward a copy of the signed current employment contract. If the position changes, please forward an updated job description. All changes must be applied for and explained. TLF will communicate its approval in writing.
What do we do if the purchase price is less than originally quoted in the application?
You must return all unspent funds.
Can we reallocate the unspent funds on other items or activities?
NO, THEY MUST BE RETURNED. Funding for other items must be applied for separately.
What is a refund?
A refund is either a total or partial amount of the grant monies funded by The Lion Foundation. We will request a refund for unauthorised purposes e.g. items not requested at time of application, retrospective payments or ‘double dipping’ (applying to more than one Trust for the same purpose).
What does retrospective mean?
We will not accept an application for ANY payments made prior to notification of approval of funding e.g. deposits, set-up, planning or printing costs or reimbursement of payments. No exceptions.
What about airfares and accommodation?
All payments made by the applicant organisation must be made after approval of funds. So if you need to book airfares or accommodation, you will need to get your application to us well in advance.
How does the Audit/Accountability procedure work?
All grants funded by The Lion Foundation are audited within a specific time frame of 3, 6 or 12 months depending on the purpose of the grant.
Grants approved prior to 1 January 2025 – Within 2, 5 or 11 months of receiving the grant, we’ll request that you send us a signed Audit Summary Report form. This should include copies of paid invoices and bank statements proving payment of invoices for the quotations submitted with your application.
Grants approved after 1 January 2025 – Within 2, 5 or 11 months of receiving the grant, you will receive an email reminder to complete the audit/accountability process. All audit/accountability requirements must be completed in the COMS grants system. Hard copies of documentation will not be accepted. Please download the Declaration-Audit and Accountability and upload together with all other required documentation which should include copies of paid invoices and bank statements proving payment of invoices for the quotations submitted with your application.
If you do not respond, then a further letter will be sent. If you fail /refuse to account to us in terms of the Audit/Accountability process, we will use best endeavours to recover the grant.
Applications from an organisation with outstanding audit or accountabilities from a previous TLF grant will not be put forward for consideration.
POINTS TO NOTE
Payments
Payments to suppliers relating to an invoice to prove a payment line must be made by direct credit or credit card. (Please note that Cash payment for goods & services are not acceptable as this does not meet our accountability processes).
Retrospective costs cannot be approved
The grant application must be approved by The Lion Foundation prior to the event or before purchase of the items requested in the application. All unpaid future costs thereafter will be considered. We cannot fund any transactions or costs that are already underway or pre-paid e.g deposits and purchases made prior to approval of the grant. No exceptions.
Operational expenses
All monthly expenses such as telephone, power and rent must be proven by monthly invoice and bank statements.
Fuel
The Lion Foundation does not accept payments for fuel charges, unless otherwise specified.
Gift Cards / Vouchers
The Lion Foundation does not accept payments for gift cards / vouchers.
Airfares
Airfares must be paid by the applicant organisation after approval of grant payment has been sought. All payments required to book airfares, accommodation or venues will not be accepted if paid prior to grant approval.
Goods and Services Tax
Grants are made by The Lion Foundation as an unconditional gift. No portion is claimed by The Lion Foundation as a deduction for Goods and Services Tax paid. If an applicant is GST registered, only the GST exclusive amount can be funded (as GST is not a real cost to such organisations).
Wages
Please provide myIRs showing gross salary payment for every month funding is required, as well as copies of bank statements proving the payment of wages.
If a person is replaced, please forward a copy of the signed current employment contract. If the position changes, please forward an updated job description. All changes must be applied for and explained.
Refunds
Regulation 12 of the Gambling (Class 4 Net Proceeds) Regulations 2004, requires that The Lion Foundation must recover a grant or any portion of a grant, by whatever means necessary, where;
- A recipient has received other funding for the same purpose.
- The grant has not been spent on the specific purpose for which the grant was made (i.e. the authorised purpose).
- When adequate audit documentation cannot be obtained.
- Where there is any indication of non-compliance with the requirements of the Gambling (Class 4 Net Proceeds) Regulations 2004.
- The Lion Foundation may also seek to recover funds not spent by the audit due date; if actual costs are less than those indicated in the application; or where there is any irregularity in the grant process.