After Your Grant Is Approved: Claims, Compliance and Audit Guide for Singapore Companies

The Grant Journey Does Not End at Approval

Winning a government grant in Singapore is a significant milestone for any business. But many companies make the mistake of thinking that approval is the finish line. In reality, the post-approval phase — covering claims submission, compliance obligations, and audit readiness — is where most grant-related problems arise. Delayed claims, missing documentation, ineligible expenditure, and audit failures can result in clawback of disbursed funds, rejection of future applications, and reputational damage with government agencies.

This guide covers what Singapore companies need to do after their grant is approved, with a focus on the Enterprise Development Grant (EDG), the Productivity Solutions Grant (PSG), and other Enterprise Singapore-administered schemes.

Step 1: Understand Your Letter of Offer

The Letter of Offer (LOO) is the governing document for your grant. It sets out the approved scope of work, the funding quantum, the eligible cost categories, the project period, and the conditions the company must fulfil. Before spending a single dollar, every director and project manager involved should read the LOO carefully:

• Project start and end dates: Only costs incurred within the approved project period are eligible. Costs incurred before the start date or after the end date will not be reimbursed.
• Eligible cost categories: Grants typically reimburse specific cost types — third-party consultancy fees, equipment, software licences, or salary costs for qualifying staff. Costs outside the approved categories are ineligible even if they are genuine project expenses.
• Approved vendor or solution: For PSG, the grant is tied to a specific pre-approved vendor and IT solution. Using a different vendor renders the claim ineligible.
• Co-funding ratio: The grant covers a percentage (e.g., 50% or 70%) of eligible costs. The company is responsible for the balance.
• Milestones and deliverables: Some grants require specific milestones to be achieved before claims can be submitted. Missing a milestone may delay or reduce reimbursement.

Step 2: Set Up a Proper Record-Keeping System

Establish a dedicated record-keeping system for all project-related documents immediately after approval. You will need to retain and produce these at the claims stage and in the event of an audit:

• Invoices and receipts: All invoices must reference the approved vendor and the project scope, and be addressed to the company.
• Proof of payment: Bank statements or transaction confirmations showing payments were actually made. Cash payments are generally not eligible.
• Contracts and quotations: The signed contract with the vendor, along with quotations provided before contracting. For EDG, document any competitive quotation process.
• Delivery documentation: Evidence that goods or services were received — delivery orders, implementation reports, training attendance lists, or project completion reports.
• Salary records (if applicable): For grants covering staff salary costs, retain CPF statements, payslips, and timesheets showing the employee’s time allocation to the project.

Step 3: Submitting Your Claims

When to Submit

For most Enterprise Singapore grants, claims can be submitted at defined intervals (interim claims) or at project completion. Check your LOO for the claims schedule. Submit on time — late claims can result in forfeiture of that tranche.

How to Submit

Claims are submitted via the Business Grants Portal (BGP). You will need to log in using CorpPass, navigate to your approved grant, select “Submit Claim”, enter eligible costs by category, and upload all supporting documents. For EDG, include a project completion report describing what was achieved and how it aligns with the approved scope.

Common Claim Errors to Avoid

• Claiming costs outside the approved project period;
• Claiming ineligible cost categories;
• Uploading incomplete or illegible document scans;
• Submitting invoices that do not match the contracted vendor name;
• Failing to include proof of payment for each invoice claimed.

Step 4: Ongoing Compliance During the Project Period

Grant recipients must comply with the terms of the LOO throughout the project period. Key ongoing obligations include:

• Maintain eligibility: The company must remain a Singapore-registered business with at least 30% local shareholding for most Enterprise Singapore grants. Changes in ownership or corporate structure should be notified to the agency promptly.
• Notify of material changes: If the project scope, approved vendor, or timeline changes significantly, notify Enterprise Singapore before proceeding. Continuing without approval for material changes may result in the grant being deemed ineligible.
• Do not dispose of grant-funded assets prematurely: Equipment or software purchased with grant funds must typically be retained and used for a minimum period (often two to five years). Early disposal without approval can trigger clawback.
• Maintain required headcount: Some grants require the company to maintain or increase its local employee headcount. Failure to do so can result in partial or full clawback.

Step 5: Preparing for a Grant Audit

Enterprise Singapore and other government agencies conduct post-disbursement audits of grant recipients. These are a standard part of public fund stewardship. Companies that are unprepared can face significant difficulties.

What Auditors Will Look For

• Whether the costs claimed match the supporting documents;
• Whether payments were made to the approved vendor (not related parties);
• Whether the deliverables described in the LOO were actually achieved;
• Whether the company continued to meet the eligibility criteria throughout the project period;
• Whether grant-funded assets are still in use.

How to Prepare

• Maintain a dedicated grant file (physical or digital) with all project documents organised by category;
• Retain documents for at least five years after the project end date (or as specified in the LOO);
• Brief your finance and operations teams on what documents are required and why;
• Flag grant-related transactions in your accounting software with a specific project code for easy retrieval.

What Happens if Your Claim Is Rejected or a Clawback Is Issued?

If Enterprise Singapore rejects a claim or issues a clawback notice, the company has the right to appeal and provide additional documentation. Common grounds for rejection include missing documents, ineligible costs, or non-compliance with LOO conditions.

If a clawback is issued, the company must repay the amount within the specified period. Failure to repay can affect the company’s eligibility for future grants. In serious cases, misuse of grant funds can result in legal action.

Getting Professional Help With Grant Administration

Many Singapore companies — especially SMEs — lack dedicated grant management staff. A professional corporate secretarial firm can assist with reviewing the LOO and advising on eligible costs, setting up compliant record-keeping processes, preparing and submitting claims via BGP, responding to agency queries, and advising on corporate changes that may affect grant eligibility.

For companies already using our corporate secretarial services, grant administration can be integrated into your existing compliance calendar. Companies looking for information on available grants can also explore our resources on the Enterprise Development Grant. It is also important to ensure your annual return filing and company records are current, as these may be reviewed during grant audits.

Conclusion

Receiving a government grant is only the beginning. The real work lies in managing claims, maintaining compliance, and keeping records that will withstand audit scrutiny. Companies that treat grant administration as seriously as the application itself are far more likely to receive full reimbursement, pass audits, and remain eligible for future support.

If your company has a grant approval in hand and is unsure about next steps, seek advice early. The cost of professional guidance is almost always lower than the cost of a rejected claim or a clawback.