6 worked Grant Audit and Grant Reporting case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to grant audit and grant reporting work, not a specific client's file.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $122,000 — Bylaw-Audit Non-Profit, Edmonton
Client: A not-for-profit with a bylaw audit requirement · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$122,000
Filed with23 days to spare
Next yearPapers ready
The situation — A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
A not-for-profit with a bylaw audit requirement in Edmonton, Alberta was weeks away from the deadline for grant audit and grant reporting. Behind that sat a bonding limit capped because the last statements were prepared on a cash basis. The exposure if the date slipped was around $122,000.
What we did for A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A not-for-profit with a bylaw audit requirement, Edmonton, Alberta
Filed with 23 days to spare. $122,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 2 · Backlog brought current
$66,000 Of Arbitrary Assessments Vacated After 3 Years — Member-Reporting Co-Operative, Windsor
Client: A co-operative reporting to members · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$66,000
Years brought current3
Account statusCurrent
The situation — A co-operative reporting to members, Windsor, Ontario
3 years of unfiled returns had turned into notional assessments at a co-operative reporting to members in Windsor, Ontario. Underneath lay a prior-year restatement with no note explaining what changed. Collections had already started.
What we did for A co-operative reporting to members, Windsor, Ontario
We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A co-operative reporting to members, Windsor, Ontario
All 3 years were accepted as filed. $66,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 3 · CRA review defended
$120,000 Proposed Adjustment Withdrawn In Full — Refinancing Borrower, Surrey
Client: A company refinancing its operating line · Where: Surrey, British Columbia · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$120,000
File closed in11 weeks
Penalties assessedNone
The situation — A company refinancing its operating line, Surrey, British Columbia
A company refinancing its operating line in Surrey, British Columbia received a proposal letter opening a review of grant audit and grant reporting. The CRA had identified a buyer’s due-diligence list that the existing statement package could not answer. It proposed an adjustment of $120,000, with 30 days to respond.
What we did for A company refinancing its operating line, Surrey, British Columbia
We treated the response as an evidence exercise rather than an argument. We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A company refinancing its operating line, Surrey, British Columbia
The proposed adjustment was withdrawn in full — all $120,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 4 · Cash and remittance control
$34,500 Of Working Capital Freed From The Tax Cycle — Government Funding Applicant, Guelph
Client: A business applying for government funding · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Working capital freed$34,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A business applying for government funding, Guelph, Ontario
A business applying for government funding in Guelph, Ontario was profitable on paper and short of cash every month. A shareholder agreement calling for audited statements that had been satisfied with a compilation for years explained most of the gap.
What we did for A business applying for government funding, Guelph, Ontario
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A business applying for government funding, Guelph, Ontario
$34,500 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · Objection and relief
$21,000 Of Penalties And Interest Cancelled On Relief — Late-Statement Business, Burnaby
Client: A business whose statements arrive late every year · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Penalties and interest cancelled$21,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A business whose statements arrive late every year, Burnaby, British Columbia
An assessment of $21,000 landed at a business whose statements arrive late every year in Burnaby, British Columbia following a desk review. It turned on an unusual revenue recognition policy that appeared nowhere in the basis-of-accounting note. The auditor had not seen the records behind it.
What we did for A business whose statements arrive late every year, Burnaby, British Columbia
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A business whose statements arrive late every year, Burnaby, British Columbia
$21,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $280,000 Deferred — Minority-Shareholder Corporation, Vancouver
Client: A corporation with an outside minority shareholder · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Tax deferred$280,000
TransferCompleted
RecordsReview-ready
The situation — A corporation with an outside minority shareholder, Vancouver, British Columbia
A generational transfer at a corporation with an outside minority shareholder in Vancouver, British Columbia had been discussed for years without a plan. A minute book with no resolutions behind a decade of dividends meant the transfer as contemplated would have been fully taxable.
What we did for A corporation with an outside minority shareholder, Vancouver, British Columbia
We converted the records to the accrual basis, restated the comparative year with proper disclosure, and rebuilt the statement package around the bonding company’s requirements. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A corporation with an outside minority shareholder, Vancouver, British Columbia
$280,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
