When teaching an intensive federal grant management workshop, I often look out and see one of two reactions: eyes glazed over or a very panicked face.
It’s understandable, federal grant management entails so many rules and regulations from more than one agency. You need to be familiar with the legislation creating the program to begin with, the rules set forth by the Office of Management and Budget (OMB), the funding agency’s regulations, and your own agencies policies and procedures. It’s a lot. In fact, it’s too much for any one person.
And then there is funding from state and local governments, who often have their own set of rules (which may or may not perfectly align with how federal funding works).
But let’s be honest, managing private grant funding (awards from foundations and corporations) isn’t always a walk in the park either.
What’s the difference and where is the overlap? Let’s talk about it.
Whether you are managing a public (federal, state, or local government) or private (foundation and corporation) grant, here’s what you need to know.
(1) Award Agreements – Most funders are going to give you a letter or award agreement that spells out what rules are expected to be followed. If you sign that agreement (or accept that award), understand that you need to meet all those requirements.
(2) Account for the Money – Even if a funder does not expect copies of all your invoices/receipts, there is an expectation that you will spend the money as approved in your grant application (or award agreement) budget.
(3) Goals & Objectives – Funders expect you to meet the goals and objectives you outlined in your grant application. And if you don’t or can’t, then you explain what happened to your funder.
(4) Reports – Whether you are submitting monthly narrative reports or one final report at the end of the grant period, most funders want some sort of description on how their money was spent, people were served, and goals/objectives were met.
(5) Grant Period – Most funders have an expected start and end date of the grant period, and that’s when all grant activity should take place.
(6) Match Requirement – If there is a cost share or match requirement, funders expect you to include your share of the match during the grant period. That match should be documented as well as your grant funded expenditure.
You’ll notice that I use words like “usually” and “most”, because in the world of grants there is always an exception to the rule. I had a grant from Target once that only entailed a grant application and a check delivered to our mailbox. The funder didn’t want any sort of report or documentation of our funding. So yes, trust-based funding does happen on occasion, but that is not the norm.
I always fault on the side of documenting everything. I’d rather have it and the funder not need said information than the other way around. Besides, even if the funder doesn’t want to know how the money was spent and whether your program was a success, your elected officials, board members, finance department, community members, stakeholders, and others probably want to know. So, tracking the money and outcomes is always a good rule of grant management.
Like many things in life, the devil is in the details. And when it comes to public grant funding, particularly federal grants, there are so many details.
Federal funding, no matter the funding agency, is governed by 2 CFR Part 200, also known as the Uniform Guidance (UG). Overseen by the Office of Management and Budget (OMB), these rules and regulations cover both pre- and post-award requirements related to all federal funding.
Here’s a handful of examples regarding requirements for recipients of federal funding:
• Your agency must have a procurement policy that is equal to or more stringent than the federal procurement regulations;
• All costs must be allowable, allocable, reasonable, and necessary;
• Agencies must have effective internal controls in place; and
• Agencies must have a conflict of interest policy and report any conflicts of interest related to grant funding.
In addition to the regulations found in the Uniform Guidance, there are other federal rules and regulations that grant recipients may have to follow (and you’ll know you have to follow them because they will be spelled out in your award agreement). Examples include:
• Davis Bacon Wage Act;
• Federal Funding Accountability and Transparency Act; and
• Disadvantaged Business Enterprise requirements.
For grant recipients, the grant award is a document we must be familiar with – because it will spell out your grant start and end dates, show your approved budget, and list all the terms and conditions your agency must follow (which could include some of the items in the list above).
When it comes to private funding, federal regulations don’t apply. Not only that, private funding does not have an overarching agency (like the OMB) that regulates private funding. Sure, there are general rules when it comes to accounting, but generally each funder can set up the hoops they may (or may not) want your agency to jump through when it comes to grant management.
Generally, private grant management is simpler than public grant management, and a big reason is often because there are less dollars involved with private grant funding. With that being said, I’ve experienced some small foundation grants that have more rules and regulations than any public grant.
No matter what grant you are seeking, it’s always vital to understand what you are getting your agency into. Grant management can be so time consuming that it is not worth the funding awarded.
Even though federal grant funding has a lot more string attached and is typically more time consuming, I appreciate knowing what I’m getting myself into. Most federal grant awards detail what is expected in terms of grant management, plus there are the OMB guidelines that always apply. I like the consistency of that. But with that being said, federal funding grant management is way more time intensive and easy to miss a vital piece of the process. On more than one occasion I’ve missed a requirement, but thanks to consistent communication with my funder I’ve always managed to play catch up and ensure all vital elements were handled. (When you learn on the job, that is to be expected – plus, we’re all human and federal grant management is A LOT.)
Foundation grant management is often less intensive, but it really does vary from funder to funder. And in my experience private funders are less likely to share what the grant management expectations are until after you’ve received a grant award. It can be hard to understand the cost of that grant without knowing the post-award expectations up front.
Either way, grant management takes a team approach. You want the involvement of your finance department, program directors, and others to ensure that every “i” is dotted and every “t” is crossed. Every funder has expectations (some are just more complicated and detailed than others), and it’s up to your entire agency to meet those expectations. It’s too much for any one person.
What about you? Do you prefer managing public or private grant funds? Let us know at hello@haydayservices.com.
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