I shared an article on LinkedIn on the 7 warning signs for grant management monitoring, and I was amazed by the response!
It felt like people were leaping up from their desks to get their 2 cents in for the top grant management monitoring tips as well!
And many of the ideas were much more comprehensive than my humble little post, so I wanted to share the top tips with you!
(Thank you to everyone who contributed to the comment thread on LinkedIn!)
What Is Grant Management Monitoring?
First, it’s important to remember that grant management is not just about doing all the right things…
It also includes “monitoring,” which ensures wrong things aren’t happening, despite the best intentions.
Monitoring serves a critical function as part of the organization’s internal controls to defend against grant fraud and misuse of grant funds.
With the grant regulations in 2 CFR Part 200, monitoring and strong internal controls may decide whether your organization is picked for future grants.
(This is thanks to the requirements for risk assessments to be performed by Federal agencies before awarding work.)
Top Tips for Grant Management Monitoring
When good grants go bad, there are almost always warning signs that the grant management train is going off the tracks.
Here are some of the top tips from our readers for monitoring:
Step One: Review the Invoices Thoroughly
When you get invoices from subawardees and contractors, take the time to review the invoices completely to ensure you are monitoring them thoroughly.
Tip #1: Make sure the math on the invoice adds up.
You would be surprised at how often a simple calculation or math error can trip up even the seasoned budget analyst or grant specialist.
Tip #2: Ensure that the indirect costs on the invoice match the agreed upon (and allowed) indirect cost rate.
Again this seems simple enough, but communication doesn’t always flow as we would like.
(And with a larger organization, it seems even more common)
Tip #3: Require supporting documentation, such as the GL detail ledger supporting the invoice charges.
Remember, as the prime recipient, you bear the ultimate responsibility to keep sufficient documentation to support the costs charged to the allowable federal award!
Tip #4: Compare the type of work to the timeline for the work to be performed.
Here are some examples of what to look for:
If you see recruiting costs and know the hiring phase is over, it’s time to throw up the red flag!
Likewise, suppose you see meeting and conference spending for “dissemination of results” before there are any results to share.
In that case, you should also get on the phone with the Principal Investigator. (PI)
Tip #5: Make sure the work is completed within the period of performance.
Understanding when the work was performed is another reason to see the details.
It’s a critical step to avoid disallowance of costs after the federal grant ends.
Tip #6: Check if the PI reviews the services on the invoice.
Are they “in the know” about what’s happening at on-site and off-site locations?
Does the PI get regular progress reports to compare the spending against the project timeline?
Tip #7: Verify that performance objectives are being met by the subawardees and contractors
If the project scope calls for 200 new participants each year and the entire year has been invoiced, but only 30 participants have been recruited, you have an issue to investigate.
(Remember it’s yours to catch in your role as a responsible grant manager monitoring subawardees and contractors effectively.)
Step Two: Examine the Reporting Process
Tip #8: Look for regular monitoring from others
It takes a village to monitor effectively, and if you are the only one monitoring spending and compliance, you can feel as lonely as the old Maytag repairman.
Know who else monitors your subawardees and contractors inside your organization and at other organizations.
The more people check the more likely that missteps will be caught.
Tip #9: Are the program and financial reports received on time?
When reporting is delayed, it often signals problems with the results or the processes to generate reliable reporting.
No one wants to be the bearer of bad news.
But when you are responsible for effectively monitoring grant performance, you can just about bet that a late report is a sign of trouble.
Tip #10: Read the darn reports!
Do I have to say this?
You may also be surprised by how often the reports from subrecipients and contractors are viewed as a box to be checked off rather than a source of important communication.
It’s not enough to receive their audit report!
You must also open it up and look for findings and other warning signs.
Step Three: Actively Look for What’s Missing
Tip #11: Watch the flow of information
When you ask for further details or information, do you get stone-walled?
Worse, are you given answers that don’t add up?
It’s time to look further.
Tip #12: Inspect the written policies and procedures
If the subrecipient or contractor doesn’t have key written policies and procedures, this points to bigger issues.
Take the time to ask people where the written policies live and what they say.
Having policies no one reads or understands means people will only follow them through blind “luck.”
Tip #13: Conduct the “sniff” test
As I mentioned before, in most cases, the warning signs of grant mismanagement were there for all to see but were still missed.
What is the demeanor of the program and finance staff when you talk with them about the project?
Does the “feel” of the report leave you with more questions than when you started?
We all have a little inner voice picking up on signals we may not want to admit consciously.
Listen to your “gut” and look further.
Remember, when federal funds are lost to mismanagement and outright waste, fraud, and abuse, the ultimate losers are those who should have benefited from the federal award.
Ready to Deepen Your Understanding of Federal Funding?
Would you like to be a better grant writer or manager?
Deepen your understanding of procurement and the single audit for federal grants?
We have another grant training seminar coming soon.
Click here to get all the details!
Hope to see you there!
Rachel Werner, MPA, GPC, PMP
MyFedTrainer Principal, Compliance Champion
Linda A. Rossi says
The link to free special report: The Basics of Internal Controls didn’t work. Please send this to my home address.
admin says
Thanks for letting us know about the link issue! We have fixed it and I will follow up with you personally to get a copy of the report into your hands. 🙂