It is a major task to manage a federal grant because your agency's reputation will be at stake, in addition to the residents of the communities you serve. Federal grants come with various requirements of compliance. It can be quite challenging to manage federal grants with tools and processes in place to ensure effectiveness. It is therefore important to know the basics of federal grants to succeed.
In this blog, we will discuss what is a federal grant, its importance, who is responsible for it, and how products such as Fluxx can help government entities effectively manage compliance, funds, and results.
What is a Federal Grant?
A federal grant is a kind of funding given through a U.S. government agency, and the purpose of such funds is the support of public services, programs, or projects. The given funds do not have to be repaid by the recipients or institutions through which the funds were received.
The grants issued by the federal government are also governed by certain regulations and guidelines. These grants are mainly divided into three categories:
- Formula Grants: based on established formulas, which in some instances include population or need criteria
- Project (Discretionary) Grants: which are granted through application process
- Continuation Grants: ongoing support for projects making progress and having an impact
Although there are different kinds of grants to accomplish different tasks, they have identical reporting and tracking requirements.
Why They're Important
Grant funding by the federal government is an important part of what makes public sector work possible in the first place. Grant funding is the financial engine behind the programs that help to solve some of the greatest challenges facing the country, whether it’s healthcare, education, infrastructure, or disaster relief. For many of these agencies, grant funding may be the first source of funding to help them expand their offerings beyond what their own budgets could support.
In addition to funding, federal grants also ensure that funds from the government are spent appropriately and that the government is accountable. Through the use of federal grants, organizations and government agencies must set objectives and measure outcomes because the use of funds is closely monitored to ensure efficiency and that taxpayer money is put to good use.
A Step-by-Step Guide to Federal Grants Management
Grant management goes beyond the aspect of money; it also involves accountability. Now, follow these steps to manage a grant from the federal government successfully.
1. Understand the Grant Requirements
It is necessary to carefully read a Notice of Funding Opportunity (NOFO). You need to understand timelines, eligible costs, deliverables, and reporting.
2. Register and Prepare to Apply
Federal grants usually involve registering on portals such as SAM.gov, Grants.gov, and so on. Make sure that all the required documents are ready and updated.
3. Establish a Grant Budget
Prepare a comprehensive and feasible budget consistent with project objectives. Also include direct and indirect costs and provide for matching funds or cost sharing if necessary.
4. Submit the Application
Failure to comply with the guidelines will result in disqualification.
5. Award Notification and Acceptance
If awarded, officially receive the award and check the grant agreement to ensure that all is as expected.
6. Execute the Grant
Begin project implementation, keep good documentation, and track expenses to approved budget categories.
7. Monitoring and Reporting Progress
Monitor progress and costs. Make timely submissions of required reports and keep records of activities for audit traceability.
8. Close Out the Grant
You are required to submit a financial and performance report on the completion of the grant duration. Make sure that all mandatory requirements are met.
Who’s Responsible for Managing Them?
It is not very common for managing a federal grant to fall to one person or department. Rather, it entails taking ownership of different aspects of this process, each falling to a different role within the governmental organization. While this ensures there are no issues springing from misdirected spending, reporting, or deadlines.
Normally, federal funding administration requires cooperation among the following groups:
- The Program Officers, who oversee implementation, performance, and impact
- Grants Managers, for ensuring administrative requirements, budgeting, and documentation
- Finance Teams, who monitor expenses, help in auditing, and other related tasks
- IT & Data Analysts, who oversee system integration and data integrity
- Executive Leadership, who guarantee strategic alignment and public accountability
This mutual responsibility points to the significance of having central systems that allow all concerned parties to track relevant grant information accurately and in real-time.
Examples of Common Federal Grants
Grants issued by the federal government include a wide variety of policy and public priority matters, which implies that multiple grant programs might be handled by different agencies. Examples illustrate just how varied different grant requirements might include.
Some of the grants that are frequently used by the federal government include:
- Community Development Block Grants (CDBG): authorized by HUD and used primarily for housing, infrastructure, and community development activities
- Head Start Grants: funding of early childhood education programs by HHS
- Highway Safety Grants: overseen by the Department of Transportation
- NIH Research Grants: administered by the National Institutes of Health and provide financial support for carrying out research in medicine and science
- Department of Homeland Security Grants: to enhance disaster response and preparedness
Each of these involves different levels of funding and different requirements for compliance, thus underlining the need for a flexible and structured way of handling grants.
How Many Federal Grants Are Awarded Each Year?
As reported on the USAspending.gov website, the United States federal government spends over $1.2 trillion on grants each year to fund thousands of programs. There is, however, more uncertainty now as the current administration makes changes to the level of funding provided.
Over 26 federal agencies vigorously disseminate grants annually, and there are more than 1,000 grant programs accessible through such platforms as Grants.gov.
How to Apply Fluxx to Simplify the Process
When it comes to managing federal grants, using manual processes or unconnected systems exposes the government to undue risk. Missing deadlines, irregular reporting, and fragmented data could put grant funding at risk, as well as further damage public confidence in the government.
Fluxx allows grant agencies to handle the entire grant process within a single, secure, and cloud-based solution. Whether grant agencies are tracking intake and budgeting for projects or monitoring grant compliance, Fluxx helps keep grant information organized within a single source of truth, reducing the burden of administration and giving administrators real-time access to actionable grant information.
Whether it’s a small number of grants or several hundred, Fluxx can help ensure federal funding is traced, recorded, and connected to performance.
Establishing Trust via Efficient Federal Grant Management
Federal grants are not just funding, but pledges to the community, to taxpayers, and to public outcomes. Through clearer processes, shared ownership, and the proper technology, federal grants can be converted to positive impacts.
Fluxx helps governments with the capabilities they require to handle the demands of grant management. Are you ready to leverage Fluxx to simplify and improve the federal grant process within your agency?
Request a demo today to see how Fluxx can provide clarity, compliance, and confidence in every federal dollar.
