10 Steps TO MANAGING GRANTS EFFECTIVELY.

Grants are an important source of revenue for many governments and allow investments in infrastructure, development of programs, and results for the community that otherwise would not be possible using local sources alone. Grants are not simply "free money," though, and if governments don't fully understand grant requirements, they can be a source of frustration and, in the worst-case scenarios, could end up actually cost you money and create regulatory compliance issues and legal challenges.

To help your organization manage its grants effectively, GFOA has developed the following ten steps, which are based on its best practices Grants Administration and Establishing an Effective Grants Policy (available at gfoa.org/grants). You can use these ten steps as a checklist to develop a grants management policy and procedure for your organization.

1 | Before completing a grant application, determine the extent to which the grant is consistent with your organization's mission, strategic priorities, and/or adopted plans. If a grant is not in line with the organization's goals, reconsider whether you should apply.

2 | Implement procedures for grant-seeking departments or agencies to notify other relevant departments (particularly the finance and/or budget offices) of their intention before applying. This will help ensure that all relevant parties within the organization are aware of the grant and are prepared to administer it.

3 | Identify the source of any required grant match. Next, determine what the grant would allow to count as a match. For example, is a 100 percent match required? Does the match need to include funding from local sources, or can another grant serve as a match?

4 | If the grant is for a new program, develop a project plan that outlines all the implementation steps. Identify who will be responsible for managing the different aspects of the grant, from providing direct services to submitting reimbursement requests and compliance reports. Determine if any staff responsible for managing the grant need additional training and include this in the project plan.

5 | Be aware of any procurement requirements, which may be more stringent than your organization's standard procurement policies. These...