Transcript Strengthening Your Financial Management System

Lessons from the Front Lines:
Streamlining Grants Management
Pew Fund Capacity Building Workshop
Presented by:
Helen Fox, Manager
Your Part time Controller
December 12, 2013
Introduction
“Business and government
should build better bridges
to each other – rather than
viewing each other as
adversaries – to advocate
for free enterprise and
shared prosperity.”
--Wall Street Journal CEO
Council Meeting
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Goal
To work in partnership with your
development, project and finance
departments to foster smooth grant
management and successful
outcomes.
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Workshop Overview
I. Centralized Control of Grant
Activities
II. Assign Responsibilities
III. Implement Policies
lV. Understand Grant Specifics
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I. Centralized Control of Grant Activities
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I. Centralized Control of Grant Activities
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Allows for efficient and effective grant management
Established policies and guidelines provide
instructions for staff
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II. Assign Responsibilities
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II. Assign Responsibilities

Grant Manager/Development Department

Project or Program Manger

Finance Manager
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II. Assign Responsibilities – Receive Notice
of Grant Award
Grant Manager starts process
Alert Project and Finance Managers of grant award
Schedule initial meeting
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II. Assign Responsibilities – Grant Manager
• Present grant outline to Project and Finance Manager,
including:
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Budget
Term
Approved amount
Interim and close out reporting schedule
Restrictions on use
Eligible uses of funds
Other terms specific to the grant
Expected outcomes
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II. Assign Responsibilities – Project or
Program Manager
• Review project and purpose for grant
• Review approved budget categories
• Discuss contractors, vendors, staff assigned to project
• Review project timeline against grant term
• Responsible for approval and coding of invoices before
submitting to finance department for processing
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II. Assign Responsibilities – Finance
Manager
• Review grant award letter
• Review budget
• Create general ledger accounts to be used when
coding grant funded costs; submit accounts and codes
to Project Manager
• Develop a grant worksheet, update throughout life of
grant
• Determine that you have a good financial tracking
system in place that is easy for readers to understand.
• Submit reports monthly to Development and Project
Manager
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Small Group Discussion Challenge
• Project evolves and need for use of grant funds can
change among approved budget line items. Project
Manager is focused on completing task. Development
and Finance Manager are aware of restrictions on
grant use.
• Was the project change communicated to the
Development and Finance Managers?
• What do you do?
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Quick tips
1. Project progress reports
2. Budget to actual cost reports
3. Share information and communicate
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III. Implement Policies
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III. Implement Policies
• Assign staff to projects funded by grants and inform
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them of responsibilities
Approval and submission of invoices - Project Manager
Prepare invoices for payment – Finance Manager, post
to general ledger
• Do not process invoices if not approved or coded
Routinely submit updated grant schedules to
Development and Project Managers for review
Reimbursable grants - establish frequency of
submitting for reimbursement..
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Small Group Discussion Challenge
• Nearing end of the grant, you realize grant funds will
be unspent. Program Manager states they could have
used those funds if they had known they were
available.
• What do you do? What are your options? How do you
prevent your organization from being in this position?
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Quick tips
1. Maintain a grant calendar
2. Prepare budget to actual per grant bucket with
balance remaining
3. Timely, discuss options for repurposing among
buckets, have a plan to present to grantor
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Small Group Discussion Challenge
• Development prepares an invoice for reimbursement to
accompany interim report. The invoice is outside of the
general ledger.
• Do the costs agree to what has been paid through
accounts payable? Was the invoice amount correct?
• Less than costs expended, cash shortfall. More than
costs expended, violation of grant terms.
• What do you do?
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Small Group Discussion Challenge
• Program manager submits report to Development
Manger on grant uses to date to accompany narrative
interim report. Finance has not reviewed report.
• After the fact, Finance determines that schedule
submitted does not agree to general ledger or costs
previously charged to another grant.
• What do you do? Why are faced with this problem?
How do you respond to grantor?
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IV. Understand Grant Specifics
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IV. Understand Grant Specifics
• Source and amount of funds triggers requirement for
government audit
• Finance and Development determine original source of grant
funds
• Specific support documentation is required with
Federal funds
• Can have impact when hiring contractors and vendors
• Other grants may require program audits for grants
over certain dollar limits
• Auditors need to be informed before fieldwork
• Certain grants require funds to be deposited in a bank
account separate from the operating account
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IV. Understand Grant Specifics, cont’d
• Identify and monitor restrictions
• Level of risk increases with restricted funding
• Communicate problem areas immediately
• Institute controls to ensure that restricted funds are
used only for their restricted purpose
• Only grantor or donor can impose restrictions on grants
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Small Group Discussion Challenge
• Check arrives and Finance Department is unaware of
grant; deposits check to bank account.
• Should this have been deposited to a separate
account? Is it an advance? Is it an initial installment?
How was it recorded in the general ledger?
• Program audit determines grant receipt handled
incorrectly, leads to finding and internal control
comment.
• How to avoid?
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Small Group Discussion Challenge
• Receive letter from government that an A-133 audit
was required for a fiscal year end and it was not
received.
• Do you have the schedules prepared to defend your
position that a government audit was not required?
• Were you aware that the grant was funded with
Federal dollars? Negative findings can impact your
organization for future funding.
• What do you do?
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Quick tips
1. Communication
2. Follow established policies
3. Understand grant
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Action Steps
What are 3 things you can do or
steps you can take that are
easy to implement?
Write them down!
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Reflections and Questions
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