Grants/Contracts Management ACT MO


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Grants/Contracts Management ACT MO

  1. 1. Grants/Contracts Management ACT MO Jefferson City, MO September 15, 2004 Carey W. Kaltenbach VP for Fund Development St. Louis ARCHS 4236 Lindell Blvd., Suite 400 Saint Louis, MO 63108 314-534-0022, Ext. 182 [email_address]
  2. 2. Federal and State Financial Assistance <ul><li>Subject to </li></ul><ul><li>laws, </li></ul><ul><li>regulations </li></ul><ul><li>requirements. </li></ul>
  3. 3. Federal and State Funding <ul><li>No money moves from the coffers of either government without an appropriations bill (law). It establishes the amount of funding, the rules under which the money can be spent, and prohibitions regarding the spending of those funds. </li></ul>
  4. 4. Federal Regulations <ul><li>Federal Regulations are set out in cost principles (appropriate uses for taxpayer money) and administrative principles. </li></ul><ul><li>OMB Circular A-122 </li></ul><ul><ul><li>Cost Principles for Nonprofit Organizations </li></ul></ul><ul><li>OMB Circular A-110 </li></ul><ul><ul><li>Uniform Administrative Requirements for Nonprofit Organizations </li></ul></ul>
  5. 5. State Regulations <ul><li>Since federal funds pass through to the states, the states wisely adopt the same cost and administrative principles of the federal government. </li></ul><ul><li>In states these principles are codified in law. </li></ul>
  6. 6. Requirements <ul><li>On the federal and state levels, requirements are stated in Requests for Proposals (RFPs) or Requests for Bids (RIBs). </li></ul><ul><li>Courts hold both makers of and applicants to RFPs responsible for their contents. </li></ul><ul><li>This responsibility mandates grants and contracts management for any entity receiving public- or private-sector funds. </li></ul>
  7. 7. Grants versus Contracts <ul><li>Contracts </li></ul><ul><ul><li>Stipulate deliverables </li></ul></ul><ul><ul><li>Present core activities in a scope of work </li></ul></ul><ul><ul><li>May stipulate remedies for certain situations </li></ul></ul><ul><ul><li>Can be subject to the bid laws </li></ul></ul><ul><ul><li>Reside on their own “contracts” case law </li></ul></ul><ul><ul><li>Pay out in increments </li></ul></ul><ul><li>Grants </li></ul><ul><ul><li>May stipulate performance measures </li></ul></ul><ul><ul><li>Fund projects </li></ul></ul><ul><ul><li>Are governed by federal/state cost principles </li></ul></ul><ul><ul><li>Reside on their own “grants” case law </li></ul></ul><ul><ul><li>Pay out in lump sums or larger increments. </li></ul></ul>
  8. 8. Fundamental Grants Management Principle “ . . . It is a fundamental principle of grants management that a grantee is required to document its costs, and that the burden of demonstrating allowability and allocability of costs for which funding was received under a grant rests with the grantee.” Current Issues, Federal Grants Management Handbook , June 2001
  9. 9. Grants Management Tasks <ul><li>Performance </li></ul><ul><li>Compliance </li></ul><ul><li>Reports </li></ul><ul><li>Documentation </li></ul><ul><li>Monitoring </li></ul><ul><li>Communication </li></ul><ul><li>Evaluation </li></ul>
  10. 10. Performance <ul><li>Initiating expenditures of grant funds in a timely manner after an award. </li></ul><ul><ul><li>Both public- and private-sector funders are growing more insistent on timely expenditure of funds. </li></ul></ul><ul><li>Following the timeline for a grant-funded project, ensuring that it is initiated and completed according to the grant time line. </li></ul>
  11. 11. Compliance <ul><li>Ensuring that grant/contract funds are spent exactly as an application as promised. </li></ul><ul><li>Each pass-through entity is legally responsible for the compliance of its subagent. </li></ul>
  12. 12. Compliance <ul><li>Ensuring compliance involves </li></ul><ul><ul><li>documentation and </li></ul></ul><ul><ul><li>monitoring. </li></ul></ul>
  13. 13. Compliance <ul><li>Ensuring moving grant funds from one budget category to another is not prohibited by an RFP. </li></ul><ul><li>Ensuring that grant funds moved from one budget category to another are not greater than 10% of the total grant award (unless the CFR identified in an RFP or RFB states otherwise). </li></ul>
  14. 14. Compliance <ul><li>Ensuring that grant funds exceeding 10% of the total are not moved from one budget category to another without “prior written approval” (public) or permission from a funder (private). </li></ul>
  15. 15. Compliance <ul><li>Securing written permission from a funder to carry funds over (some federal agencies are tightening this policy). </li></ul><ul><li>Ensuring that carry-over funds are not spent outside the original boundaries of a funded intervention. </li></ul>
  16. 16. Reporting <ul><li>Ensuring that all reporting deadlines are met. </li></ul>
  17. 17. Documentation and Compliance <ul><li>The repository for these auditable activities is a Central Grants/Contracts File. </li></ul><ul><ul><li>The Central File needs to be “auditor friendly,” meaning an auditor can walk in the door and find everything necessary in a file. </li></ul></ul><ul><ul><ul><li>The RFP or RFB </li></ul></ul></ul><ul><ul><ul><li>The proposal or bid </li></ul></ul></ul><ul><ul><ul><li>All major correspondence (can include e-mails) </li></ul></ul></ul><ul><ul><ul><li>Records of site visits or audits </li></ul></ul></ul><ul><ul><ul><li>Reports </li></ul></ul></ul>
  18. 18. Documentation <ul><li>Ensuring that all expenditures are appropriately documented. </li></ul><ul><li>Ensuring that records are accurate and up-to-date. </li></ul><ul><li>Ensuring that staff time paid out of a grant or contract – funded and in-kind – is documented. </li></ul>
  19. 19. Documentation Issues <ul><li>The federal government does not stipulate what form documentation of expenditures must take. </li></ul><ul><li>At this point, one’s sense of good business practices supplies the answer – appropriate receipts, invoices, payroll documents, etc. </li></ul>
  20. 20. Monitoring <ul><li>Tracking progress of interventions. </li></ul><ul><li>Ensuring that grant funds are expended in a project year within the approved budget categories. </li></ul><ul><li>Ensuring that funded interventions are completed in the project/budget year. </li></ul><ul><li>Coordinating and ensuring that collaborators are on track </li></ul><ul><li>Keeping one eye on the timeline and another on the bottom line. </li></ul>
  21. 21. Evaluation <ul><li>Ensuring that data on performance measures is being collected. </li></ul>
  22. 22. Barriers in Systems Dr. Walter Hunter FOCUS MOTIVATION INTERPERSONAL INTELLECTUAL + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
  23. 23. GRANTS MANAGEMENT TEAM I:CHART/1John/Diagram 2 Team Leader Marketing Spec. Office Manager Executive Director Evaluation Guru
  24. 24. Management Responsibilities RISK BARRIERS RELATIONSHIP- BUILDING COMMUNICATION PROCESS Executive Director Team Executive Director Evaluation Guru Executive Director Funding Team Leader Marketing Specialist Executive Director, Funding Team Office Manager, Evaluation Guru Marketing Specialist Program Director Evaluation Guru
  25. 25. Funding Team Leader: aka “The Communications Coordinator” <ul><li>The funding team leader can coordinate </li></ul><ul><ul><li>the information-gatherers and the information disseminator, </li></ul></ul><ul><ul><li>their work with the executive director, </li></ul></ul><ul><ul><li>and ensure that all parties know the information needed and the basic template of knowledge. </li></ul></ul>
  26. 26. Office Manager: aka “Information Gatherer” <ul><li>The Office Manager pulls together information related to management activities by </li></ul><ul><ul><li>creating and updating the funding calendar with reporting dates , </li></ul></ul><ul><ul><li>tracking and documenting in-kind contributions in an in-kind journal, </li></ul></ul>
  27. 27. Office Manager (cont.) <ul><li>The Office Manager pulls together information related to management activities by (cont.) </li></ul><ul><ul><li>making certain that accounts that reveal the “bottom line” are accessible to the management team, </li></ul></ul><ul><ul><li>alerting the executive director to changes that need to be communicated to a funder. </li></ul></ul><ul><ul><li>collecting documentation on all material (how money spent, time allotments, receipts, in-kind contributions, etc.) that an auditor would be reviewing . </li></ul></ul>
  28. 28. The Evaluation Guru: aka “Information Gatherer” <ul><li>The Evaluation Guru </li></ul><ul><ul><li>coordinates the critical evaluation component necessary in sound management, </li></ul></ul><ul><ul><li>collects data that can reveal barriers or measure the effect that are exerting against achievement, </li></ul></ul><ul><ul><li>assists in communicating those data to the management team and other important constituents. </li></ul></ul>
  29. 29. Marketing Specialist: aka “Information Disseminator” <ul><li>The Marketing Specialist </li></ul><ul><ul><li>assists in determining what needs to be communicated to various parties, including funders and those with whom relationships are planned, </li></ul></ul><ul><ul><li>identifies the most strategic manner for communicating this message. </li></ul></ul>
  30. 30. Communications <ul><li>The common denominator of all teamwork and relationship-building is communications. </li></ul><ul><li>Thus, good communication isn’t one person’s responsibility – effective communication is everyone’s responsibility. </li></ul>
  32. 32. Shaping an Outcomes Approach <ul><li>The entire management team assists in determining learning orientation. </li></ul>
  33. 33. Learning Orientation <ul><li>What factors in our resources (inputs) and interventions are influencing results in what ways? </li></ul><ul><li>What factors in our resources (inputs) and interventions influenced results in what ways? </li></ul>
  34. 34. Learning Orientation (cont.) <ul><li>What unintended results were observed? </li></ul><ul><li>What external factors may have influence results in what ways? </li></ul>
  35. 35. Return on Investment <ul><li>Return on investment is too critical to be solely the responsibility of the executive director. </li></ul>
  36. 36. Return on Investment (ROI) <ul><li>Risk reduction </li></ul><ul><ul><li>Capacity-building </li></ul></ul><ul><li>Diversification of responsibility and function </li></ul><ul><ul><li>Integration of groups, funders, and resources in a community </li></ul></ul><ul><ul><li>An observable growth pattern </li></ul></ul>
  37. 37. ROI (cont.) <ul><li>Replicability of interventions </li></ul><ul><li>Documentation of outcomes through data </li></ul><ul><li>Sustainability </li></ul><ul><li>Relationship - building </li></ul>
  38. 38. Essentials of Grants Management: A Guide for the Perplexed <ul><li>This article by Henry Flood is included in the Grantsmanship Center Magazine, Issue #45, Fall 2001. </li></ul><ul><li>Downloadable at: </li></ul><ul><li> </li></ul>
  39. 39. Grant Tracking and Compliance Management <ul><li>This article by Henry Flood is included in the Grantsmanship Center Magazine, Spring 2002 Issue </li></ul><ul><li>Downloadable at </li></ul><ul><li> </li></ul><ul><li>tracking.htm </li></ul>