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 Read modified quote: For our purposes today, “Development, project and finance managers should build better bridges to each other – rather than viewing each other as unnecessary – to advocate for strengthening procedures that will lead to successful grant management and project outcomes”   A little heavy, but you get my point!

Goal To work in partnership with your development, project and finance departments to foster smooth grant management and successful outcomes. Grant management requires collaboration among staff

Workshop Overview Centralized Control of Grant Activities Assign Responsibilities III. Implement Policies lV. Understand Grant Specifics

I. Centralized Control of Grant Activities A point person has to be designated, this person is responsible for coordinating with the other two departments, who understand their responsibility to report to the point person. Defined procedures and assigning staff avoids confusion of who is responsible for what, a typical response when things are not running smoothly Each of the key staff has their own tasks but are co dependent on the other two for successful grant management Job description of each key staff I. Centralized Control of Grant Activities

I. Centralized Control of Grant Activities Allows for efficient and effective grant management Established policies and guidelines provide instructions for staff A point person has to be designated, this person is responsible for coordinating with the other two departments, who understand their responsibility to report to the point person. Defined procedures and assigning staff avoids confusion of who is responsible for what, a typical response when things are not running smoothly Each of the key staff has their own tasks but are co dependent on the other two for successful grant management Job description of each key staff

II. Assign Responsibilities A point person has to be designated, this person is responsible for coordinating with the other two departments, who understand their responsibility to report to the point person. Defined procedures and assigning staff avoids confusion of who is responsible for what, a typical response when things are not running smoothly Each of the key staff has their own tasks but are co dependent on the other two for successful grant management Job description of each key staff II. Assign Responsibilities

II. Assign Responsibilities Grant Manager/Development Department Project or Program Manger Finance Manager A point person has to be designated, this person is responsible for coordinating with the other two departments, who understand their responsibility to report to the point person. Defined procedures and assigning staff avoids confusion of who is responsible for what, a typical response when things are not running smoothly Each of the key staff has their own tasks but are co dependent on the other two for successful grant management Job description of each key staff

II. Assign Responsibilities – Receive Notice of Grant Award Grant Manager starts process Alert Project and Finance Managers of grant award Schedule initial meeting Kick off meeting Development/Grant Manager – Deliver grant specifics including budget, timeline, interim and close out report dates, restrictions on grant use, grant purpose, eligible uses , etc. Determine everyone has clear understanding of grant Progam/Project Director – Review project timeline, vendors, contracts, staff assigned. Project director is responsible for approving invoices and assigning cost code before submitting to finance for payment Finance Director – Reviews grant, trigger for how to account for grant, review budget , create general ledger accounts and funding codes, submit accounts and codes to project director. Develop grant worksheet, update routinely and submit to project and development managers

II. Assign Responsibilities – Grant Manager Present grant outline to Project and Finance Manager, including: 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

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

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

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? As long as the overall purpose of the project has not changed, and the change is communicated timely, the development manager can go back to the funder to explain the change and ask to redirect line items within the budget. The project manager becomes aware that the project will come in under budget, can the funds remaining be redirected or repurposed, can they be rolled over to fund another phase of the project? Timely communication allows for planning, ie; are there other funding sources to fund available? Is there another funder that is easier to work with when requesting modifications to budgets? Timely communication among departments allows you to be proactive not reactive

Quick tips Project progress reports Budget to actual cost reports Share information and communicate

III. Implement Policies

III. Implement Policies Assign staff to projects funded by grants and inform 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..

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?

Quick tips Maintain a grant calendar Prepare budget to actual per grant bucket with balance remaining Timely, discuss options for repurposing among buckets, have a plan to present to grantor

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?

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?

IV. Understand Grant Specifics

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

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

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?

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?

Quick tips Communication Follow established policies Understand grant

Action Steps What are 3 things you can do or steps you can take that are easy to implement? Write them down!

Reflections and Questions