Understanding the Federal Grant Management Process

Feb 18 / Rachel Werner


When organizations request support from MyFedTrainer, it is sometimes in response to audit findings or a requirement from the funding agency to create more robust internal controls. While our trainings assist organizations and agencies in developing cultures of compliance, it is important to be proactive (even before a grant is awarded) to create solid grant management processes. These processes cover the entire grant lifecycle and help to ensure that you are setting yourselves up for continued success and understand the critical importance of each phase.

What do these grant management processes do?
  • Instill a sense of confidence that the organization is able to serve as a good steward of the award.
  • Ensure successful project outcomes as outlined in the award.
  • Outline and designate roles and responsibilities to govern all grant management activities.
  • Ensure adherence to 2 CFR 200 (Uniform Grant Guidance).

If you don’t know where to start, we’ll break some of these concepts down. Our partner firm, RBW Strategy, has posted about this as well so you can see the breakdown of each part of the grant lifecycle.

Why a Strong Federal Grant Management Process Matters

Before we dive into the different grant management processes, we should start with a “why.” Why should we be focusing on effective grant management and why is this important in our federal grants work?

The simple answer is that, duh, it’s required! 2 CFR 200 Part 303 states that “the recipient and sub-recipient must:

(a) Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award….

(b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal award.

(c) Evaluate and monitor the recipient's or subrecipient's compliance with statutes, regulations, and the terms and conditions of Federal awards.

(d) Take prompt action when instances of noncompliance are identified.

(e) Take reasonable cybersecurity and other measures to safeguard information including protected personally identifiable information (PII) and other types of information….”

While these requirements are broad, the specific approaches that you take to adhere to these requirements generally come in the form of:

  • Written policies and procedures
  • Systems and processes
  • Assigned roles and responsibilities/segregation of duties
  • Training to ensure appropriate implementation

If these internal controls are not developed and followed, the common penalties could be audit findings with required corrective actions, disallowed costs, withdrawal of the award, or even legal action.

What is the Grant Management Process?

The grant management process (aka the grant lifecycle) is the continuous series of activities that govern all grant-seeking and management activities. Essentially, what required functions have to happen during each phase. If you want to dig deeper and find out more about how grants are appropriated, check out this past MyFedTrainer grant management blog post.

If your organization is assessing ways to improve the grant management process, it is helpful to look at each phase of the lifecycle to fully grasp the significance of each one.

The Grant Management Cycle

The chart below outlines the key components of the grant management process as organized into key phases. Some important questions to consider within each phase are noted:

Research and Strategic Planning Process 

This is a critical phase as this is where you set the stage for a successful grant-seeking and management process. 

Have you identified the funding areas that are best supported with grant funding? Have you identified funders that are appropriately aligned with your mission and support similar projects and initiatives? Have you identified partners to collaborate with? Have you created a Unique Entity Identifier number and profile in SAM.gov (required for all federal grant submissions)?

Grant Application Process & Development

During the grant writing process, there are some key items to ensure a smooth and fluid process. 

Do you have access to all relevant attachments and narrative information? Is there sufficient time to complete the application process before submission? Do you have a project plan or task matrix to ensure alignment with the funding opportunity announcement or request for proposals? Have you completed the required forms in Grants.gov (SF 424, SF 424A, etc.) and checked them for accuracy?

Award and Project Start-up

Congratulations, you won the award. Now what?! There are specific actions you want to take to ensure that all stakeholders are aware of their roles and how you can incorporate the financial, programmatic, and operational functions. 

Do you have the accounting systems set up so that grants are each given a unique code? Have you conducted risk assessments of contractors to ensure they will be good partners? Are the partners aware of their expectations and have agreements been established with subrecipients? Are you adhering to the appropriate procurement methods to purchase goods and services through contracts?

Award Management and Grant Monitoring Process

If you want to maintain your grant funding, it is important to follow some specific actions. This phase is all about what you need to do to be a good steward of federal grant funding.

Are you implementing the subrecipient monitoring plan and checking on the adherence to a contractor’s scope of work? Are you drawing down funds accordingly and making budget modifications as needed? Are you submitting financial and programmatic reports by the stated deadlines to the funding agency? Are you notifying the agency program officer if there are any updates that impact the execution of the award before the reports are submitted?=

Grant Closeout Process

You always want to stick the landing so finishing things up in a positive way will provide proof that you are a trusted recipient (or subrecipient) and can manage federal grant funding.

Have you expended all the funds associated with the grant? Have you submitted the final reports? Are you maintaining files and records for the required period of time as outlined in the notice of grant award? Are you aware of the required compliance requirements for a single audit and reviewed the associated compliance supplement?

Refine Your Federal Grant Process with MyFedTrainer

As you can see, there are so many ways that you can control the outcome of your grant awards. While there may be shifting priorities, it is important to instill a strong grant management process within your organization as this is your value proposition and proof to the funder, partners, and the community that you are a trustworthy resource.

Here are some additional tips for why internal controls matter, as shared through the National Grant Management Association.

Need a refresher or additional information on how to become more grant-compliant? Start with our Grant Management Bootcamp - we’d love to see you there!