Spending Federal Funds

With the new guidance on OMB 2 CFR 200--there is an extreme focus on accountability and transparency. Federal funders are leaving no stone turned when it comes to auditing bigger programs to ensure grantees are meeting and complying with all the required rules, regulations, and internal policies. In this blog post, we are going to share what you must do to accomplish post award success and if you have any additional questions that this blog doesn't answer please email, comment, or contact us. Here we go, 

To have a successful grant program, the two main processes every grantee needs to have in place are as follows: 

  1. Fiscal Management 
  2. Fund Accounting Policies & Procedures 
"Spending of federal funds must be proper and documented accurately." 

Basically, this means that you should only spend funds on budget that is approved by the funder and if audited you should be able to show the spent funds are documented accurately in your financial management system. 

Along with the above mentioned requirements, OMB circular requires grantees to have additional systems in place such as: 

  1. Financial Management 
  2. Inventory Control 
  3. Procurement Standards 

The Question is "Are you Spending Federal Funds" or "Any Grant Funds"? 
If you have answered YES, this is what you need to do: 

You must have these three systems in place before you choose to spend any federal funds because these steps lay the foundation for effective grant management. 

Bonus: Good internal controls are essential for grant management success too. Remember to always follow the organizational policies when it comes to grants. 

Let us know your thoughts on this blog post. What else would you like to know about grant management??