There are many reasons a grantee should exercise effective Grant Management. Grant funding can be lost if a grantee has neglected to use decisive grant management in implementing projects and accounting for grant funds received.
When an award agreement is executed you have taken on the responsibility of complying with the terms of the agreement. This agreement is a legally binding contract and if not adhered to can result in a loss of funding and/or persecution.
Your organization is expected to comply with the program plan proposal submitted to the grantor in exchange for financial support. The systems that you will put in place will measure the success or failure in fulfilling your contracted obligations under the grant agreement.
If these obligations are not adhered to the grantor can request a return of funds already received and can result in discontinued grants from current funding sources and any future funding source.
Submitting reports to the grantor, that in most cases is a requirement, can show the mismanagement of funds and the lack for program deliverables and can have immediate and severe consequences resulting in damaged reputation for the organization, organization’s management and most severely criminal prosecution. Not submitting reports or not submitting reports timely can also result in negative outcomes.
Be extra diligent in putting monitoring systems in place and following those systems. Timely communication with the grantor when issues arise can save your organization from funding problems in the future.
Grant Management Non-Profit Fund Accounting
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ll help to ensure you can put your fiscal policies and document systems in place. It can also be used to create or enhance your fiscal manual, process manual and project implementation manual.
Be safe, not sorry!
