6 Grant Audit and Grant Reporting tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to grant audit and grant reporting work, not a general example.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $122,000 — Company Refinancing Its Operating, Edmonton
Client: A company refinancing its operating line · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$122,000
Filed with23 days to spare
Next yearPapers ready
The situation
With the deadline for grant audit and grant reporting weeks away, a company refinancing its operating line in Edmonton, Alberta was carrying statements delivered five months after year-end, past the covenant deadline. The exposure if the date slipped was around $122,000.
What we did
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
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 — Not-For-Profit with a Bylaw, Windsor
Client: A not-for-profit with a bylaw audit requirement · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$66,000
Years brought current3
Account statusCurrent
The situation
3 years of unfiled returns had turned into notional assessments at a not-for-profit with a bylaw audit requirement in Windsor, Ontario, with a buyer’s due-diligence list that the existing statement package could not answer underneath. Collections had already started.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
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$120,000 Proposed Adjustment Withdrawn In Full — Corporation with an Outside, Surrey
Client: A corporation with an outside minority shareholder · Where: Surrey, British Columbia · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$120,000
File closed in11 weeks
Penalties assessedNone
The situation
A corporation with an outside minority shareholder in Surrey, British Columbia received a proposal letter opening a review of grant audit and grant reporting. The CRA had identified a bonding limit capped because the last statements were prepared on a cash basis and proposed an adjustment of $120,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We prepared a due-diligence-ready statement set with supporting schedules for each material balance, then indexed every supporting document against the specific line the auditor had questioned.
The result
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 — Business Applying for Government, 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 in Guelph, Ontario was profitable on paper and short of cash every month. A bank asking for a review engagement while the file only supported a compilation explained most of the gap.
What we did
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 and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$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 — Co-Operative Reporting to Members, Burnaby
Client: A co-operative reporting to members · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Penalties and interest cancelled$21,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $21,000 landed at a co-operative reporting to members in Burnaby, British Columbia following a desk review. The auditor had not seen the records behind a prior-year restatement with no note explaining what changed.
What we did
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble, then set out the legislative basis for the position alongside the documents supporting it.
The result
$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 — Business Preparing for Sale, Vancouver
Client: A business preparing for sale · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Tax deferred$280,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a business preparing for sale 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
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$280,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
