What are some good practices for grant managers to follow when assessing the health of grant programs within an inherited portfolio?

There are several ways a grants manager may approach evaluating the health of various grant programs within a newly inherited portfolio. The following recommendations are based on the experiences of financial management professionals skilled in designing and implementing grant programs across various stages of the grant lifecycle. These recommendations may assist new grants managers with ways to familiarize themselves with a grants program. However, these recommendations may not apply to every government organization. Municipalities may wish to consult with counsel and their accounting team to ensure compliance with federal, state, and local laws.

• Review program requirements for each grant program within the portfolio. A grant manager should identify and review relevant information for each grant program within the portfolio to gain insight into the program’s eligibility requirements, allowable activities, performance periods, reporting, and any applicable Uniform Guidance provisions. To understand the requirements for each grant program, it may be helpful to identify the “assistance listing” associated with the specific programs, if this information is available. Assistance listings outline all requirements associated with federal awards and can be accessed here: https://sam.gov/content/assistance-listings.[1]
• Review previous audit or Single Audit reports. For most federal programs, recipients who expend more than $750,000 in federal funding in any given fiscal year are required to conduct a Single Audit.[2] Single Audits typically focus on:
• Eligibility
  • Allowable Costs and Activities
  • Cash Management
  • Equipment and Real Property Management
  • Matching, Level of Effort, and Earmarking
  • Period of Performance
  • Procurement, Suspension, & Debarment
  • Program Income
  • Reporting
  • Subrecipient Monitoring
  • Special Tests and Provisions

Audit reports can inform a grants manager of any weaknesses, deficiencies, adverse conditions, or changes identified during the audit. Audit reports also include recommendations for improvements to the areas outlined above.

• Review financial or performance reports. Most federal, state, and local grant programs require a progress report, including financial and programmatic data. These reports are often submitted on a quarterly or annual basis and outline the status of the grant program and how funding has been spent. Reviewing these reports may be another way to identify if program requirements are being met.
• Read Legislative Updates on grant programs, if available. Most legislative bodies are responsible for the appropriation of grant funding for an organization. Often, program managers and department directors prepare legislative updates for general legislative meetings or budget hearings. Reading these reports may provide additional details on how the program was established, legislative input and feedback on the design of the program, and any program status updates.
• Review grant program documentation. To better understand an inherited grant program, it may be useful to review existing grant program documentation, including standard operating procedures, or other administrative policies establishing internal controls. These documents may help provide additional information on the efficiency of a grant program.
• Request a transition meeting or status update from existing grant program managers or relevant stakeholders on the progress of the grant program. Speaking directly with program stakeholders, such as the program manager, may assist a grants manager with understanding the overall requirements and status of each grant program, including:
  • Eligibility requirements associated with a grant;
  • Funding available under a grant program;
  • Proposed timelines for implementation of a grant project;
  • Performance metrics associated with a grant project; and
  • Internal or external reporting requirements associated with a grant project.

Program stakeholders may also be able to assist a grants manager with obtaining access to key program documentation relevant to the transition from one grants management team to the next.