A Few Simply Ways to Track Grants

Tracking grant funds does not need to be a daunting task. The procedure can be very simple or as complex as
the organization it resides in. If you are responsible for tracking grants, be proactive and organized. This article
will describe simple ways to create an efficient process for grant tracking.

The first thing a grant manager should do when the agency is awarded a new grant is to create a folder, (a six
section file with prongs works the best), for the new funding source. Produce a one-page grant summary
document that contains contact information, awarded amount, reporting deadlines, lifespan of the funding,
which agency program is funded by that grant, and who in the agency is responsible for the funded-program.
This document should live on the first page of the folder. Each of the subsequent sections should contain the
following:

• Grant Agreement and budget

• The internal budget for the grant as how the agency accounting system will use it.

• Correspondence with the funders

• Financial reports that are supplied to the funder

• Program reports

• Audit and end of program information

Organizing your grant information upfront will allow you to keep all of the information in one place and allow
for efficiency in retrieving the information later (Flood, 2001).

Another important step is being able to allocate and document both direct and indirect costs. All staff members
who are responsible for spending grant funds must be well-informed about how direct and indirect costs are
defined, allocated, and charged to different funding sources. This is essential for proper accounting and
communication, otherwise misallocations will occur and the mismanagement of funds will cause the loss of
continued funding.
1
One of the easiest ways to accomplish a clear communication between those who spend the funds and those
who record them is to go old school and put the pen to the paper. Whether you have received an invoice from
an outside contractor or need to allocate supplies to a funding source, a short form can work wonders in the
financial management of a grant. Below is an example of a Payment Request Form that allows the program
staff to communicate with the Accounting department on how to charge an expense.

Expense Program Expense Funding Amount Reason for the

Category Source Expense
Mileage to Case Travel Area Agency 21 miles Resident Meeting
outreach site Management on Aging @$.44

Sample Payment Request Form

Employee Signature: ______________________________________ Date: ____________

Supervisor Signature: _____________________________________ Date: ____________

When an expense is incurred, the program staff completes the form using the program budget for expense
categories. By this point, the program staff should be knowledgeable regarding acceptable grant expenses. In
the first column, briefly describe the expense. In the second column, write in the program that incurred the
expense. In the third column, list the budget category that best matches the expense, i.e. mileage goes under
travel, legal pads is under supplies. In the fourth column, list the funding source for the expense. In the fifth
column, write in the amount. Lastly, write the reason for the expense. Then attach either receipts or other
documentation (mileage log) that provide proof that the expense occurred. In most cases, this is the only
information an accounting department will need to properly allocate and charge an expense to a grant. The
employee signs the form and then submits it to the supervisor for final approval. Once the supervisor has signed
the form, the form and documentation are submitted to the accounting department for processing.

In the case of allocating staff time, this only becomes complicated when there are multiple funding sources for a
program. For example, a case management program for the elderly has seven different grants, in-kind
contributions, and a state contract. Each funding source has different requirements on the different case
management activities, i.e. not assisting clients in filling out paperwork, not transporting, etc. Essentially, a case
manager may charge the time for one client to the in-kind contribution and another client to the state contract.
The agency timesheet needs to be able to record the amount of time that is allocated to each of the different
funding sources. In this case, it would be more efficient to automate this process.

2
It is always a good idea to keep a spreadsheet tracking expenses that are incurred outside of payroll, i.e.
mileage, supplies, outreach, marketing, etc. The accounting department can make mistakes in their entry, in
which case this acts as a way to reconcile the expenses that are handed in with the monthly financial reports.
However, this could be a daunting task if you manage many grants that incur many expenses.

Efficiency and organization are the key when managing grants. There is little need to create complex
procedures that only add layers of bureaucracy and paperwork to an organization. Hopefully, this was helpful in
shedding some light on ways to simplify certain tasks associated with managing grants.

For more information on grant management, visit Henry Floods’ article “Essentials of Grant Management, A
Guide for the Perplexed” at http://www.tgci.com/magazine/Essentials%20of%20Grants%20Management.pdf.

2010 Copyrighted material. Please seek permission before reprinting.