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Why
is grant record keeping and administration
important?
Granting
agencies
typically
require
reports
showing
how
the
money
they
provide
is
spent.
In
order
to
track
the
information
to
be
reported,
the
grantee
has
to
set
up
a
record
keeping/records
management
system
that
organizes
this
information
in
a
manner
that
allows
it
to
be
easily
retrieved,
understood,
and
reported. The
grant
budget
is
the
plan
for
how
the
grant
money
will
be
spent
and
needs
to
realistically
reflect
all
the
costs
of
the
project
and
all
the
money
available
to
complete
the
project
(local
as
well
as
grant
money).
The
grant
budget
must
also
be
monitored
carefully
to
ensure a
successful
grant
project.
Each
agency
that
grants
money
has
rules
about
how,
when,
and
where
the
grant
funds
can
be
spent.
Most
granting
agencies
will
require
records
of
all
financial
transactions
and
back
up
documentation
associated
with
the
grant.
A
grantee
may
need
to
prove
to
the
granting
agency
that
the
grant
was used
for
exactly
what
it
was
intended.
The
best
way
to
prove
that
is
by
keeping
complete
records
of
everything
connected
with
the
grant.
If
a
grantee
cannot
prove
the
money
was
spent
as
stated
in
the
grant
agreement,
it
is
possible
that
the
grantee
will
have
to
pay
money
back and/or
may
not
receive
future
grants
from
that
funding
source
and
possibly
other
funding
entities
that
share
information.
Who
is responsible for administering
grants?
Ultimately,
the
governing
body/grant
recipient
is
responsible
for
ensuring
any
grant
it
accepts
is
administered
and
completed
according
to
the
grant
conditions.
The
actual
day-to-day
responsibilities
are
usually
handled
by
assigned
staff
that
ordinarily
would
handle
the
administrative
and
financial
management
duties
of
the
organization.
Job
descriptions
should
be
developed
to
ensure
all
the
necessary
duties
are
assigned.
What
needs to already be in place
when a grant is awarded?
When
a
grant
is
awarded,
have
specific
staff
assigned
to
administer
the
grant
and
have
a
reliable
and
user-friendly
financial
management
and
reporting
system
and
a
reliable
and
user-friendly
records
management
system
in
place.
At
a
minimum
the
grant
administration
system
has:
- A
working and reliable system for
tracking revenues;
- A
working and reliable system for
tracking expenditures;
- A
working and reliable financial
reporting system (regular monthly
financial reports to the governing
body);
- A
working and reliable filing,
retrieval, and storage system
for documents and files.
How
do you ensure acceptable grant
records and administration?
Be
organized.
Each
grant
should
have
a
unique
identifier
to
make
it
possible
to
track
and
report
each
grant
separately.
Have
a
separate
grant
file
for
each
grant
and
FILE
ALL
the
information
for
the
grant
in
the
grant
file.
At
a
minimum,
the
grant
file
should
be
a
four-part
folder with
a
separate
section
for
grant
application
and
back
up
documents,
grant
correspondence,
grant
contract(s),
and
financial/vendor
information.
There
should
also
be
separate
personnel
files
for
each
person
hired
under
the
grant
-
see
the
LOGON
section
on Payroll
Record
Keeping
for
additional
information
on
this
topic.
Set
up
the
financial
records
for
each
grant
to
reflect
the
grant
budget.
The
grant
budget
forms
the
basis
of
the
financial
record
keeping
for
the
grant
and
determines
the "line-item" categories
that
will
be
reported
to
the
granting
agency
and
governing
body.
Most
granting
agencies
require
a
separate
bank
account
for
grant
money
to
ensure
grant
funds
are
not
accidentally
spent
on
operating
or
other
expenses
that
are
not
approved
in
the
grant
budget.
Track
all
money
coming
in
and going
out.
Provide
timely
and
complete
reports
to
the
granting
agency
and
governing
body.
What
kind of records do I need to
keep?
Administering
a
grant
requires
keeping
track
of
several
pieces
of
information.
Grant
reporting
requires
proof
that
funds
were
spent
according
to
the
grant
agreement.
This
means
you
have
to
show
where
and
how
the
money
was
spent
by
providing
copies
of
receipts,
accounts
payable,
timesheets,
and
payroll
records.
Funding
agencies frequently
require
that
grant
funds
be
kept
in
accounts
separate
from
the
organization's
operating
accounts.
If
operating
funds
and
grant
funds
are
not
kept
in
separate
accounts,
there
is
a
danger
that
grant
funds
may
be
spent
on
something
that
was
not
approved
in
the
grant
agreement.
If
this
happens,
the
grantee
is
usually
required
to
pay
back
any
grant
funds
that
were misspent.
In
addition
to
the
financial
records,
keep
construction
and
inspection
reports,
permits,
engineering
reports,
and
all
other
documents
that
show
the
progress
of
the
grant
project.
Set
up
a
correspondence
file
with
copies
of
all
the
letters
that
have
been
sent
and
received
on
the
grant
and
the
grant
project.
Where
can I get additional information
on grant administration requirements?
Grants
usually
come
from
one
of
three
sources:
the
federal
government,
state
government,
or
private
foundations.
The
federal
government
provides
grants
through
specific
agencies.
An
example
might
be
the
Environmental
Protection
Agency
(EPA)
providing
funds
for
a
water/sewer
or
solid
waste
grant,
or
a
bulk
fuel
grant
from
the
Denali Commission.
The
State
has
several
grant
programs.
The
Community
Development
Block
Grant
(CDBG),
mini-grant
program,
and
emergency
shelter
grant
programs
are
some
examples
of
common
state
grant
programs.
Private
foundations
are
a
source
of
funds
that
typically
deal
with
program
grants.
The
Department
of
Community
and
Economic
Development
maintains the Economic
Development
Resource
Guide,
which
provides
a
comprehensive
list
of
available
grants
and
requirements.
There
are
also
several
publications
available
that
provide
information
on
grant
management
and
administration.
See
the Additional
Resources section
below
for
a
complete
listing.
How
do
I
record
and
track
an "in-kind" match?
An "in-kind" match
is
a
non-cash
contribution
to
the
project.
The
match
can
be
goods,
services,
land,
facilities,
space,
personnel,
equipment
or
materials,
that
are
assigned
a
cash
equivalent
value.
For
example,
if
the
cost
of
administering
the
grant
is
the
in-kind
contribution,
the
number
of
hours
spent
on
grant
administration
and
wage
costs
would
be
tracked
and
reported
as
a
cash
equivalent.
Whenever
calculating
the
amount
of
in-kind
contribution
to
a
project,
use
the "fair
market
value" or
actual
cost
of
whatever
is
being
provided
as
the
contribution.
Will
I need an audit?
Whether
or
not
an
audit
is
required
depends
on
how
much
money
your
organization
received
and
spent
during
a
certain
period.
State
and
federal
laws
require
that
an
entity
provide
an
audit
if
it spends a
certain
amount
in
federal
or
state
money.
This
requirement
should
be
spelled
out
in
the
agreement
awarding
the
money.
That
amount
was
$300,000,
however,
that
has
changed
to
$500,000
effective
December
31,
2003.
(Check
with
the State
Audit
Coordinator at
at 465-4666
to
verify
the
amount.)
See
the
LOGON
section
on Audits
and
Financial
Reports for
additional
information.
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