According to the latest news, an agreement is close to being reached: approximately HUF 92 billion in funding may become available to Hungary from the Norway Grants. The planned launch in 2026 represents a major opportunity — but from an auditor’s perspective, it also entails a significant risk. Winning the grant is only the first step; the real challenge is properly accounting for it at the end of the project.
Why Everything Is Decided at the Application Stage of a Norway Grants Project
A common mistake is that organizations only contact their auditor two weeks before submitting the final report. However, the accounting and eligibility rules of the Norway Grants are strict, and the foundations of compliant reporting must be laid from day zero.
If the beneficiary organization does not maintain records that allow clear, factual traceability of costs, the funding awarded under the Norway Grants can easily turn into a repayment obligation.
Three Questions to Ask Yourself Before Submitting a Norway Grants Application
1. Is the organization prepared for transparent, segregated project accounting?
Transparency is a core principle of the Norway Grants. Project-related costs must be recorded separately from day-to-day operations in a clear and identifiable manner. In practice, this requires project-level general ledger analytics and timesheets documenting employees’ project-related activities.
It is advisable to establish routines at the very beginning that ensure these documents are accurate and up to date.
2. Does the company have appropriate internal policies and documented processes in place?
As part of the agreed-upon procedures performed in connection with the final audit, the auditor’s work typically goes beyond reviewing invoices. In accordance with the donor guidelines, it also extends to the audit trail of procurement and decision-making processes.
Do your procurement procedures comply with program requirements?
Is decision-making properly documented?
3. Is the organization willing to consult an expert at the start of the application process?
An initial professional consultation can highlight shortcomings that may later lead to certain costs being deemed ineligible. It is important to clarify that this consultation is not an audit and does not provide assurance — it is an advisory discussion to assess whether your systems are prepared for the procedures required during the final audit.
What Is the Auditor’s Role in the Norway Grants Funding Process?
In connection with the final report under the Norway Grants, the auditor typically acts under an agreed-upon procedures engagement (ISRS 4400).
This means that the beneficiary and the auditor agree on performing specific procedures defined in the donor’s guidelines, such as:
- reconciling costs item by item from the general ledger to supporting documents,
- comparing timesheets with payroll payments,
- reviewing procurement documentation.
This type of engagement is not a statutory audit and not an assurance service. The auditor does not express an opinion or provide general confirmation of compliance. Instead, the auditor reports objective, factual findings, from which the donor draws its own conclusions. This is precisely what makes the report credible and acceptable to the funding authority.
Expert Advice
When planning the project budget, do not forget to include auditor fees related to the final audit and the necessary administrative capacity. Many programs also require auditor independence, which should be clarified well in advance.
What Should You Do If You Plan to Apply for the Norway Grants or Have Recently Been Awarded Funding?
Before submitting an application, it is worth conducting a brief preparatory consultation to assess your organization’s readiness for compliant financial reporting. We help establish the records and internal policies that enable a smooth final audit — and ensure that no ineligible costs appear among the findings.
Contact us and prepare together for the opportunities offered by the Norway Grants.
