Federal Grants Training & FAQ
A federal grant is when a federal agency gives something of value, usually money, to a recipient, such as a state or local government or a private party, to carry out a public purpose. This process was first established under the Federal Grant and Cooperative Agreement Act of 1977, which guides government agencies in their use of federal funds by distinguishing between contracts, cooperative agreements, and grants.
Learn more about Grants, and PCI’s Grants offerings on this FAQ page.
Federal Grants Frequently Asked Questions
What is the difference between a grant and a contract?
- Grants: Awarded when the primary purpose is to support or stimulate a public purpose with minimal federal involvement. Think of things like medical research or highway construction. The funds are generally provided upfront for the recipient to use, and oversight primarily involves monitoring, auditing, and project supervision.
- Contracts: Awarded when the primary purpose is for the direct benefit or use of the government. The government entity is essentially “buying” a good or service, such as tanks, telecommunications services, or consulting services. This requires a more hands-on approach for the government agency, and payments are typically made upon delivery or completion of services.
- Cooperative Agreements: Similar to grants in that the goal is a public purpose. However, the government agency plays a more substantial role in the execution of the project.
Where can I find grant opportunities?
Grants.gov is a central resource for finding and applying for federal grants. You can search by keyword, agency, or category. In addition, individual federal agencies often have their websites or portals dedicated to grant opportunities.
What is the "Super Circular" or the "Uniform Guidance"?
The Super Circular, formally known as the Uniform Guidance (2 CFR 200), is a set of regulations governing the administration of federal grants. It aims to streamline and standardize the grant process across different federal agencies. The Uniform Guidance covers various aspects, including:
- Definitions and Acronyms: Providing clear and consistent terminology for grant administration.
- General Provisions: Outlining overarching rules applicable to all federal awards.
- Post-Award Requirements: Detailing requirements for subrecipient monitoring, procurement, accounting, and internal controls.
- Cost Principles: Defining allowable and unallowable costs for federal awards.
- Audit Requirements: Setting standards for single audits and program-specific audits.
How do I ensure compliance with the Uniform Guidance?
- Understand the Regulations: Familiarize yourself with the Uniform Guidance and any agency-specific supplements relevant to your grant.
- Develop Strong Internal Controls: Implement effective accounting systems, procurement procedures, and subrecipient monitoring processes aligned with the Uniform Guidance requirements.
- Document Everything: Maintain comprehensive records to support all your grant-related activities and cost allocations.
- Seek Expert Guidance: Consult with experienced grant professionals or legal counsel when needed.
What is a subrecipient, and what are my responsibilities as a pass-through entity?
A subrecipient is a non-federal entity that receives a subaward from the primary recipient of a federal grant to carry out a portion of the grant program. As a pass-through entity, you are responsible for:
- Determining Subrecipient vs. Contractor: Carefully assess whether the entity receiving funds meets the criteria of a subrecipient or a contractor.
- Flow Down Requirements: Ensure that all applicable Super Circular provisions and grant terms are flowed down to the subrecipient.
- Monitoring and Oversight: Establish a risk-based subrecipient monitoring program to assess compliance, review financial reports, and address any deficiencies.
What are some common compliance issues related to federal grants?
- Mischarging Costs: Improperly allocating personal expenses as business expenses or charging unallowable costs to the grant.
- Timekeeping and Effort Reporting: Inaccurate recording of time spent on grant activities or allocating effort to the wrong projects.
- Procurement Violations: Failing to follow the procurement standards outlined in the Uniform Guidance, such as not obtaining competitive bids or properly documenting sole-source justifications.
- Conflicts of Interest: Engaging in activities that create a conflict of interest, such as awarding subgrants to entities with close personal or financial ties to the recipient.
What steps can I take to mitigate grant compliance risks?
- Develop Robust Policies and Procedures: Establish clear written policies and procedures covering all aspects of grant administration, including procurement, timekeeping, effort reporting, and subrecipient monitoring.
- Provide Training: Train staff members responsible for grant management on Uniform Guidance requirements and best practices.
- Conduct Regular Internal Reviews: Implement a system of internal reviews or audits to proactively identify and address potential compliance issues.
- Establish a Whistleblower Hotline: Encourage employees to report any suspected fraud or misconduct related to grant activities.
- Seek Legal Counsel: Consult with an attorney experienced in government contracts and grants to address any complex legal issues.
What are the consequences of non-compliance with grant regulations?
Non-compliance can lead to various penalties, including:
- Suspension or Debarment: Exclusion from receiving future federal awards.
- Disallowance of Costs: The government may refuse to reimburse unallowable costs, requiring the recipient to repay funds.
- Termination of Award: The awarding agency may terminate the grant entirely.
- Civil or Criminal Penalties: Fraudulent activity can result in substantial fines, imprisonment, or both.
Federal Grants Training
PCI’s Federal Grants Training Offerings Coming Soon!