Why January Is the Right Time to Review Grant Policies and Procedures
Jan 27
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Rachel Werner
January is a natural reset point for many organizations. Budgets are finalized, new grants may be starting, staff roles shift, and reporting cycles from the prior year are closing out. That makes it an ideal time to step back and confirm that grant policies and procedures still reflect how work is actually being done.
Reviewing grant documentation early in the year helps identify misalignment before it becomes a compliance issue. It’s far easier to address outdated language or unclear steps now than during an audit, monitoring review, or period of increased grant activity.
When procedures evolve without corresponding updates, organizations may still be doing good work—but lack the documentation to support it. Auditors don’t just assess outcomes; they look for consistency between written policies and actual practice. January provides a practical checkpoint to realign the two.
Reviewing grant documentation early in the year helps identify misalignment before it becomes a compliance issue. It’s far easier to address outdated language or unclear steps now than during an audit, monitoring review, or period of increased grant activity.
When procedures evolve without corresponding updates, organizations may still be doing good work—but lack the documentation to support it. Auditors don’t just assess outcomes; they look for consistency between written policies and actual practice. January provides a practical checkpoint to realign the two.
Policies vs. Procedures: Why Both Matter
Policies establish expectations and define how an organization adheres to federal grant requirements, including those in 2 CFR Part 200. Procedures, on the other hand, describe the specific steps staff follow to carry out those expectations.
When policies and procedures are reviewed in isolation, inconsistencies often emerge. A policy may require a control that no longer fits the workflow, or procedures may rely on systems or approvals that have changed over time. When those gaps exist, auditors are more likely to flag findings—even when staff are acting in good faith.
Reviewing policies and procedures together helps ensure clarity, reinforces accountability, and reduces confusion for staff responsible for day-to-day grant administration.
When policies and procedures are reviewed in isolation, inconsistencies often emerge. A policy may require a control that no longer fits the workflow, or procedures may rely on systems or approvals that have changed over time. When those gaps exist, auditors are more likely to flag findings—even when staff are acting in good faith.
Reviewing policies and procedures together helps ensure clarity, reinforces accountability, and reduces confusion for staff responsible for day-to-day grant administration.
Keeping Updates Practical
A policy review does not need to be a full rewrite of the grant manual. The most effective reviews focus on areas that carry higher compliance risk or receive consistent audit attention, such as:
Clear, accurate policies support staff and make compliance easier—not harder—especially as new grants, reporting deadlines, and operational demands increase throughout the year. Small, targeted updates in these areas can significantly reduce risk while keeping documentation usable and relevant.
- Financial management and cash handling
- Procurement and vendor selection
- Subrecipient monitoring activities
- Record retention and documentation practices
Clear, accurate policies support staff and make compliance easier—not harder—especially as new grants, reporting deadlines, and operational demands increase throughout the year. Small, targeted updates in these areas can significantly reduce risk while keeping documentation usable and relevant.
Document the Review
Even when policies and procedures remain appropriate, documenting that a review occurred is important. A short memo, checklist, or sign-off record demonstrates active oversight and shows that grant documentation is being intentionally maintained.
This type of documentation reinforces compliance expectations and provides valuable context if questions arise later in the year.
Starting the year with a focused policy and procedure review sets a strong foundation for consistent grant administration—and helps teams move forward with clarity and confidence.
This type of documentation reinforces compliance expectations and provides valuable context if questions arise later in the year.
Starting the year with a focused policy and procedure review sets a strong foundation for consistent grant administration—and helps teams move forward with clarity and confidence.
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Martha A Moore, MPA, DTM, CNAP, has been working in the accounting industry for over 35 years. Over that time, she has worked in the Grants Management area for 20 years. She has recently received the Certified Nonprofit Accounting Professional (CNAP) credentials. Martha’s expertise in grants management field is in the post-award/closing/audit areas, while serving as an advisor to preaward budgeting and program narrative. Thanks to her many years in the accounting/grants management industry, Martha has the ability to zoom out and holistically see the big picture and how external funding can be crafted for effective and efficient use. She believes in team approach with both finance and program team at the table to ensure a clear and comprehensive award application, with the end goal being grant awards. Martha also has extensive experience in subaward management from a university to a local nonprofit organization. Martha is a public speaker and trainer, thanks to her many years (20+) in Toastmasters International. She earned the highest designation, Distinguished Toastmaster, and puts those skills to use daily. Martha’s niche’ is the desire to see local nonprofits (BIPOC startups to mature nonprofits) succeed in securing funding to fulfill community gaps in partnership with the philanthropists, private sectors, local, state, and federal governments.

