Guide to project accounts and audit

For projects that have been granted funding after 01.01.2026, the project accounts must be audited by the Fund’s central audit firm. The audit procedures to be carried out by the auditor, as well as the deadline for completion, will be set out in the project agreement.

The provisions below apply to projects that have been awarded funding up to and including 31 December 2025.

1. About the guide

1. All projects must prepare final project accounts for the entire project period as part of the final reporting.
2. Grants of more than NOK 350,000 and up to NOK 1,000,000 must also submit a declaration fromState-authorized public accountantwith “Agreed-upon procedures” in accordance withISRS 4400 Agreed-upon procedures.
3. Grant allocations above NOK 1,000,000 must submit a declaration from theState-authorized public accountantwith the audit of the project accounts in accordance withISA 805 (Revised), Special considerations – audits of single financial statements and specific elements, accounts or items of a financial statement.

This guide describes the requirements for the project accounts and the auditor's statements.

The purpose of the auditor’s review is to verify that the funding from The Norwegian Retailers' Environment Fund has been used for the purpose stated in the project application. We ask the auditor to focus on this area in their work.

2. Project accounts

All projects must prepare final project accounts for the entire project period as part of the final reporting. The project accounts must include the following:

1. Total project costs for the entire period, regardless of the share of the project financed by The Norwegian Retailers' Environment Fund (HMF). Where projects are financed from several sources in addition to funding from HMF, this must be specified in an income statement in the project accounts.
2. Description of the accounting principles applied in the financial statements
3. Notes specifying accounting items where relevant

Requirements from “The Norwegian Retailers' Environment Fund's Special terms and conditions for grant allocations”:

• The Norwegian Retailers' Environment Fund may carry out spot checks of the project accounts.
• If breaches of the agreement are discovered during the spot check, The Norwegian Retailers' Environment Fund may decide to carry out a full audit of the project accounts. In such an inspection, relevant documentation must be made available to The Norwegian Retailers' Environment Fund within 30 days of the request.

3. Grants over NOK 350,000 up to and including NOK 1,000,000: Agreed-upon procedures (ISRS 4400)

An agreed-upon procedures (ISRS 4400) report from a state-authorized public accountant must be submittedAgreed-upon procedures (ISRS 4400).

The Norwegian Retailers' Environment Fund recommends that the following documentation be submitted to the auditor before the auditor starts work:

• Guidance on project accounts and audit (this web page)
• Recipient's application
• The project agreement with appendices, including the Recipient's Letter of Acceptance
• The Norwegian Retailers' Environment Fund's Special terms and conditions for grant allocations
• Project accounts
• Copy of vouchers or electronic access to vouchers

Requirements from “Handelens Miljøfonds Special Terms and Conditions for Grant Allocations”:

• The auditor's statement must be submitted as soon as it is available, but no later than six months after the end of the calendar year for the project accounts.
• If breaches of the agreement are identified through agreed-upon procedures, The Norwegian Retailers' Environment Fund may decide to carry out a full audit of the project accounts. In the event of such an audit, relevant documentation must be made available to The Norwegian Retailers' Environment Fund within 30 days of the request.

The auditor carries out a sample-based voucher review in accordance with the following points:

Project income, including own financing

1. The auditor must state whether the project has received funding from parties other than The Norwegian Retailers' Environment Fund for the same project, and, if so, from which scheme and in what amount.

2. If the project is based on a share of self-financing to fund the project:

1. Check what proportion of the project’s total costs is covered by self-financing.

Operating expenses

3. Review the five highest-value vouchers in the project, as well as ten randomly selected vouchers. State the total amount of the costs reviewed, and indicate what percentage this represents of the project's total costs.

1. For internal cost allocation:
   1. Check that the costs are related to the project and that the costs were incurred within the project period.
2. For incoming invoices:
   1. Check that the cost was incurred within the project period
   2. The incoming invoice has been issued to the Recipient and paid from the bank account (payment control)
   3. Costs are related to the project as described in the project description submitted with the application for funding (and any additional information submitted).

Salaries and personnel costs

4. When charging hourly costs:

1. Ensure that salaries and social costs charged to the project can be substantiated by timesheets, employment contracts or other documentation demonstrating the actual use of resources in the project.
2. Check that the hourly rate is in accordance with the approved budget

Additional information for the auditor: The maximum hourly rate for personnel costs approved by The Norwegian Retailers' Environment Fund is NOK 1,100. Up to 1,695 hours per full-time equivalent may be approved.

Related parties

5. Ask management whether any transactions with related parties* have occurred.

1. If yes, specify what type of costs the transactions relate to and provide a brief description of the transactions.
2. If yes, request confirmation that all transactions have taken place in accordance with the arm’s length principle (i.e. at market price), and provide a brief description of the relationship.

*“Related party” is defined here as any person or entity that has control, joint control or significant influence, or is key management personnel. This also includes their close family members and companies controlled by these parties, pursuant to the Norwegian Accounting Act / IFRS (IAS 24 – Related Party Disclosures)

4. Grant allocations above NOK 1,000,000: Project audit

An audited project accounts with an auditor’s report from a state-authorized public accountant must be submitted in accordance with ISA 805(Revised), Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement.

The Norwegian Retailers' Environment Fund recommends that the following documentation be submitted to the auditor before the auditor starts their work:

• Guidance on project accounts and auditing (this website)
• The recipient’s application
• The project agreement with appendices, including the Recipient’s Letter of Acceptance
• The Norwegian Retailers' Environment Fund’s Special Terms and Conditions for Grant Allocations
• Project accounts
• Copy of supporting documents or electronic access to supporting documents

It is requested that the project accounts be audited as a separate financial statement in accordance with the wording of ISA 805.Statement of cash receipts and disbursements). The auditor must plan and perform the audit of the project accounts by obtaining sufficient and appropriate audit evidence as a basis for the conclusion on the project accounts.

It must be verified that the costs appear relevant and necessary for the project and that the costs have been incurred within the project period. In cases where projects have been financed by more than HMF, it must be verified that no double funding has been provided for the same purpose.

Requirements from “The Norwegian Retailers' Environment Fund’s Special terms for grant allocations”:

• The auditor's report must be submitted as soon as it is available, but no later than six months after the end of the calendar year for the project accounts.

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