The administration of federal grants is not a trivial task. With big money involved, along with strict reporting and a growing number of stakeholders, doing things right is critical. Federal Grants support vital activities in the education, infrastructure, health sectors, and other areas. However, the efficacy of grant programs is contingent on having the right means to effectively administer the programs and the budget involved.
Let’s walk through the essentials: what federal grants are, where to find them, what platforms like Grants.gov offer, and what resources can simplify your grant management efforts. If your agency or nonprofit works with federal dollars, this guide is for you.
A Discussion on Federal Grants
Federal grants refer to funding awards presented to eligible recipients by U.S. government agencies for public purposes. They are used to finance various sectors including social services, disaster assistance, scientific studies, and economic development.
The other hand, loans are repaid. However, there is no repayment required in the case where one acquires funds from the government through grants. There are, however, terms to fulfill. The grant money should be applied for the stipulated use.
Federal assistance can be broken down into three groups:
- Formula Grants: Money allocated according to established criteria such as population (e.g., Medicaid recipients).
- Competitive Grants: Awarded based on a proposal and review of merits, for example, for NIH research grants.
- Continuation Grants: Support continuing projects that have already shown results.
Who Issues Them and Who Applies for Them
Being informed about the source and scope of federal grants and applicants eligible to apply for these grants is an important element to understand while traversing the funding process. Federal grants are granted by a wide range of U.S. federal agencies, which are concerned with distinct areas related to public service.
Some of the most notable grant-funding organizations are:
- Department of Health & Human Services (HHS)
- Department of Education (ED)
- Department of Transportation (DOT)
- National Science Foundation (NSF)
- Environmental Protection Agency (EPA)
These entities create strategies to deal with issues ranging from public health to infrastructure development, educational equity, to scientific development.
Eligible Applicants: Eligible applicants differ and can be:
- State and Local Governments
- Legal entities
- Schools
- Non-profit Organizations, Foundations
- Tribal organizations
- Research institutions and healthcare providers
Each program has its own eligibility criteria, timeline to submit the programs, and documentation required, making it imperative that applicants remain organized.
The Significance of Grants.gov
Grants.gov is the official website for discovering and applying for grant opportunities from the U.S. government. Launched in 2002, it is a centralized platform where more than 1,000 grant opportunities from 26 grant-making agencies of the U.S. government are posted.
Grants.gov assists applicants in the following ways:
- Offering the latest information on available grants
- Providing standardized forms for applications
- Allowing grant applications to be submitted electronically
- Providing webinars or tutorial sites, and/or FAQs for helping with the application process
Grants.gov is a critical resource for both the seekers and the administrators of grants. This is because it not only simplifies the search and application stages but also helps the applicants satisfy the federal submission guidelines.
Key Resources for a Federal Grant Manager
Whether you are managing one or dozens of government grants, the right tools make the difference. Here are many government grant management tools you should know:
- SAM.gov (System for Award Management): Used in the registration of entities and checking exclusions
- 2 CFR Part 200 - Uniform Guidance: This is the main government regulation used for handling grant money. It deals with cost principles, audits, and government administration
- FSRS.gov (Federal Funding Accountability and Transparency Act Subaward Reporting System): Reporting of Sub-Awards and Executive Compensation
- GrantSolutions.gov: Utilized for some agencies, particularly HHS, to manage their grants after the award
- PMS (Payment Management System): Manages the drawdown and cash management for federal grant payments
Knowledge about these tools and systems allows for a smoother workflow, reduced compliance-related risks, and quick access to data about funding.
Why Compliance Matters
Compliance is not merely an obstacle to be addressed in grant administration. It is a critical function of sound grant management. When receiving federal grants, it is necessary to keep financial accounts up to date, be able to differentiate restricted and unrestricted funds, as well as tracking performance data in order to be in compliance.
Non-compliance with grant agreements could result in severe outcomes such as audits, demands to repay funds, loss of funds, and future ineligibility for funding. Compliance with grant agreements promotes responsibility to taxpayers and grantors, besides helping to build trust with stakeholders on all fronts. Being proactive in grant compliance enhances the capacity of an organization to handle grants confidently.
Streamline Your Federal Grant Management
The management of federal grants using a spreadsheet or an un-integrated solution often results in inconsistencies and errors. A solution such as Fluxx allows for the management of the whole grant cycle, even including grant reporting.
Fluxx helps teams monitor everything that is going on within grant performance, such as disbursements, compliance obligations, deadlines, and deliverables. This is enabled by the removal of the need for manual processes, which was the case with the previous system. Also, with Fluxx, there are dashboards that offer real-time information.
Though Fluxx is not an official government platform, it still connects to accounting and reporting systems to offer a smooth user experience when working with teams that handle federal funds. For institutions managing a number of grants, being compliant, or working with different teams, Fluxx makes managing federal grants smarter.
Confidence with Every Federal Dollar
Federal grant dollars have the power to change communities for the better, but only when they're handled carefully. Knowing how to successfully use Grants.gov or select the best tools for grant compliance and reporting is your greatest resource.
When proper systems are set up, a transition from reactive to strategic grant management can take place. If you're ready to simplify your federal grant management and focus more on your mission, request a demo from Fluxx today.
