NO / ENG

Guide to project accounting and auditing

The guide applies to all projects subject to the ‘The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants’.

1. About the guide

  1. All projects must prepare final project accounts for the entire project period as part of the final report.

  2. For grants from NOK 350,000 up to and including NOK 1,000,000, a statement must also be provided by a state-authorised auditor with ‘Agreed-upon procedures’ in accordance with ISRS 4400 Agreed-upon procedures.

  3. For grants exceeding NOK 1,000,000, a statement must also be provided by a state-authorised auditor with an audit of the project accounts in accordance with ISA 805 (Revised), Special considerations – audits of single financial statements and specific elements, accounts or items of a financial statement.

This guide describes what is expected of the project accounts and audit statements.

The purpose of the audit is to check 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 make this an area of focus during his/her work.


2. Project accounts

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

  1. Total project costs for the entire period, regardless of how much of the project is funded by the Norwegian Retailers’ Environment Fund (HMF). In cases where projects are funded using sources of funding other than from HMF, we request that this is specified in a presentation of revenue/income in the project accounts.

  2. Description of accounting principles that form the basis for the accounts.

  3. Note for specification of accounting items where relevant.

Requirements from ’The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants’:

  • The Norwegian Retailers’ Environment Fund may perform spot checks of the project accounts.

  • If breach of the agreement is identified through spot checks, the Norwegian Retailers’ Environment Fund may decide to carry out a full audit of the project accounts. During such checks, relevant documentation relating to the Norwegian Retailers’ Environment Fund must be made available within 30 days of request.

3. Grants above NOK 350,000 up to and including NOK 1,000,000: Agreed-upon control procedures

A statement must be submitted by a state-authorised auditor in accordance with ISRS 4400 Agreed-upon procedures.

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

  • Guide to project accounting and auditing (this document)

  • The Recipient’s application

  • The Project Agreement with annexes, including the Recipient’s Letter of Acceptance

  • The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants

  • Project accounts

  • Copy of receipts or electronic access to receipts

Requirements from ’The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants’:

  • The audit statement must be submitted as soon as it is available, and no later than six months after the end of the calendar year of the project accounts.

  • If breach of the agreement is identified through agreed-upon procedures, the Norwegian Retailers’ Environment Fund may decide to carry out a full audit of the project accounts. During such checks, relevant documentation relating to the Norwegian Retailers’ Environment Fund must be made available within 30 days of request.


The auditor performs spot checks of receipts in accordance with the following points:

  1. Check the five largest receipts in the project and five randomly selected receipts, and add up the total:
    1. For internal cost allocation:

      1. check that the expenses are related to the project and that they were incurred during the project period.

    2. For incoming invoices:

      1. Check that reported project costs have been incurred during the project period.

      2. Incoming invoices have been issued and charged to the Recipient.

      3. Project costs are related to the project as set out in the project description submitted when applying for funds (and any additional information submitted)

  2. The auditor must state whether the project has received funding for the same work from sources other than the Norwegian Retailers’ Environment Fund, from which scheme and the amount.

  3. When charged by the hour: Check that timesheets have been set up, that the hours are added up correctly, that the hourly rate matches the hourly rate in the budget, and that the number of hours multiplied by the hourly rate corresponds with the cost in the accounts.

  4. Check which funds the project owner has transferred to project partners/subcontractors, assessed against the original budget. Any deviations must be listed (actual vs budgeted).

  5. Check for major deviations between the budget and accounts (>30% in one entry), after taking any reduced amounts and additional agreements into consideration.


4. Grants of more than NOK 1,000,000: Project audit

Audited project accounts must be submitted with an auditor's report by a state-authorised auditor 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 the audit:

  • Guide to project accounting and auditing (this document)

  • The Recipient’s application

  • The Project Agreement with annexes, including the Recipient’s Letter of Acceptance

  • The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants

  • Project accounts

  • Copy of receipts or electronic access to receipts

We request that the project accounts are audited equivalent to a single financial statement in accordance with the wording of ISA 805 (‘Statement of Receipts and Disbursements’). The auditor must plan and perform the audit of the project accounts by obtaining sufficient appropriate evidence on which to base his/her conclusion.

It must be ensured that the costs appear relevant and necessary to the project, and that the costs are incurred during the project period. In cases where projects are funded by additional sources than the Norwegian Retailers’ Environment Fund, we request a check that no double funding has been provided for the same purpose.

Requirements from ’The Norwegian Retailers’ Environment Fund’s Special Terms and Conditions for Grants’:

  • The audit report must be submitted as soon as it is available, and no later than six months after the end of the calendar year of the project accounts.