Navigating the post-award management of Innovate UK grants: essential guidance for SMEs

Securing an Innovate UK grant is a monumental achievement for any small or medium enterprise (SME). It signifies that your innovative ideas have gained recognition and the support needed to move forward. But, as many grant recipients discover, winning the grant is just the beginning. The post-award phase is where the real work begins, requiring meticulous management and strategic execution to ensure compliance, to maximise the benefits of your funding, and to remain eligible for future funding.

In this guide, we’ll outline the key aspects of post-award management, offer practical advice for navigating common challenges, and explain why specialised support can make all the difference. Whether you’re a first-time grant winner or a seasoned recipient, these insights will help you approach post-award grants management with confidence and clarity.

Understanding the Innovate UK grant post-award process

Once your grant application is approved, the post-award phase typically unfolds in several stages:

Notification and due diligence

After receiving a conditional notification of success via email (and taking a moment to celebrate this achievement), grant recipients enter a project setup phase which is managed within the Innovation Funding Service (IFS) portal, often lasting around 90 days. During this period, Innovate UK will verify your capacity to deliver the grant that you’ve been conditionally awarded, requiring you to provide:

– Detailed management accounts to confirm your ability to match-fund (typically 30% of the total project cost)

– A fully-executed collaboration agreement if working with partners, including intellectual property (IP) terms (the Lambert Toolkit provides a wide-range of available templates for this)

– An exploitation plan, outlining how you plan to commercialise your innovation and deliver a positive return on public investment

– An updated spend profile with an accurate forecast for how you plan to claim the grant across your awarded budget headings

Offer letter and project start date

Once the due diligence is successfully completed, you’ll receive a formal offer letter, which must be signed (typically within 30 days) before your project can formally start. The grant becomes active on the agreed project start date, but note that funding is disbursed in arrears—your first claim can only be made after completing the first quarter and inputting your expenses accrued (with supporting evidence) during this time. Forward planning for how you will cover the first quarter of expenditure is essential to avoid potential delays to your project.

Quarterly reporting requirements

Throughout the project, you must submit:

Quarterly progress reports: narrative updates on the status of your project milestones, risks, project scope and project exploitation.

Quarterly expenditure claims: submitted via the IFS portal for all accrued eligible expenditure and must be supported with sufficient financial evidence in the form of e.g. receipts, timesheets, and an independent accountant’s report (for the first and final quarters)

Best practices for Innovate UK grant post-award management

To manage your grant effectively, it’s essential to be proactive, organised, and transparent. Here are some strategies to help:

Prepare early

– Understand the terms and conditions outlined in your offer letter before signing

– Select an independent auditor familiar with R&D grants as soon as possible to avoid delays in financial reporting

– Review and update your project plan, spend profile, risk register and exploitation plan to reflect any changes which have occurred since the submission of your grant application

Stay organised

– Use project management tools like Asana or Monday to create a shared and interactive reporting delivery timeline, especially for collaborative projects

– Establish a centralised digital folder structure (i.e. Google Drive) with secure access for all team members. Categorise financial records, supporting documentation, and progress updates in an organised and logical manner

Maintain open communication

– Build a strong relationship with your assigned Monitoring Service Provider (MSP). Be transparent, respond promptly to queries, and proactively set deadlines for meetings and reviews

– Regularly update all stakeholders, including project partners, to ensure alignment and timely claim submissions

Monitor and mitigate risks

– Keep your risk register up to date, anticipating potential challenges like recruitment delays or market changes

– Act quickly to address issues, such as adjusting your exploitation plan in response to new competitors or unforeseen technical hurdles

Common pitfalls to avoid in grant post-award management

While managing the post-award phase, many SMEs encounter challenges that can jeopardise their funding or project timeline. It’s important to be aware of and try to avoid these common pitfalls:

Delayed recruitment or late hires
Recruitment delays can derail your project timeline. Mitigate this risk by building team capacity early and identifying key hires in advance where possible.

Ineligible expense claims
Carefully review grant guidelines to ensure all expenses are eligible and submitted with accurate supporting evidence. Incorrect claims can delay payments and raise red flags with Innovate UK.

Underestimating administrative work
It’s easy to focus primarily on project delivery while neglecting the extensive background administration & reporting requirements. Allocate sufficient time and resources to meet these obligations.

Communication breakdowns in collaborative projects
Poor co-ordination with partners can lead to missed deadlines and rejected claims. Ensure regular communication and use shared tools to track progress.

Inadequate financial planning
Since funding is paid in arrears, ensure you have sufficient reserves or investor support to cover upfront costs during the first quarter.

Inaccurate forecasting
It’s important that the spend profile submitted during the project set-up phase is as accurate as possible and takes account of any changes which may have occurred since the application budget was submitted. Inaccurate forecasts can result in significant under or over-spends at the end of the claim period, which without adequate justification can result in delayed or withheld payments.

Why get professional support for the grant post-award phase?

Managing the post-award phase of an R&D grant requires expertise and attention to detail. For many SMEs, partnering with a consultancy like ours offers significant advantages:

Expert guidance: our team understands the complexities of Innovate UK funding requirements and can navigate funding portals that may not be intuitive for first-time users.

Tailored support: unlike other providers, we offer bespoke services, including weekly review calls, customised project timelines, and hands-on training, not a ‘one size fits all’ approach.

Reduced risk: we ensure your claims are accurate and complete, minimising the risk of delays, rejected expenses, or additional audits.

Resource efficiency: by handling administrative tasks, we free up your team to focus on project delivery and innovation.

How we can help

Our approach to post-award management reflects our commitment to SMEs. We prioritise building strong, collaborative relationships with our clients, offering personalised support at every stage. By working with us, you can expect:

Dedicated expertise: our specialists have years of experience managing Innovate UK grants, ensuring compliance with all funding requirements.

Proactive communication: we provide carefully considered responses for your MSP and review feedback received, facilitating smooth reporting and prompt resolutions to any issues.

Capacity building: beyond managing claims, we provide training to help your team navigate the funding process more confidently in the future.

Turning innovation into impact

The post-award phase of an Innovate UK grant is a critical time for SMEs. With careful planning, strong communication, and the right support, you can navigate this phase successfully and realise the full potential of your funding, while remaining eligible to secure future funding.

Let us help you turn your innovation into lasting impact. Book a free consultation with our team today to explore how we can support your post-award management needs. Together, we’ll ensure your project delivers exceptional results—now and in the future.