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Office of Community Services skip to primary page contentIncreasing the Capacity of Individuals, Families and Communities

Managing Public Grants

Roles and Relationships in Managing Federal Grants | Developing an Operational Plan

The Grant Award Process

Once a funding decision has been made, the Federal awarding agency will issue the applicable award instrument, as specified in the program announcement in the Federal Register. Award instruments include grants, cooperative agreements and contracts.

Grants and cooperative agreements are used when the principal purpose of the transaction is to support a public purpose authorized by the awarding agencies Federal statute. Contracts are used when the principal purpose is the acquisition of property or services for the direct benefit or use by the Federal government.3 Grants are used when a recipient organization is expected to implement and achieve programmatic goals autonomously. Cooperative agreements are used when substantial involvement is expected between the funding agency and the recipient when carrying out the funded activities.

Generally, only cooperative agreements and grants will be used. Federal grant funds are restrictive, meaning they must be used for a specific purpose detailed in the grant or cooperative agreement. The actual terms of the arrangement between your organization and the Federal awarding agency will be specified in the cooperative agreement or grant, which will be mailed to you for negotiation and signature prior to issuing an award. If the Federal funding agency requires cost sharing or matching, you may be required to produce those funds before a cooperative agreement is signed and Federal funds are disbursed. Once you have signed and returned your cooperative agreement, an award will be made and funds will be released.

When a funding award is made, the Federal funding agency and the Division of Payment Management (DPM) initiate the process for receiving award payments.

Process for Receiving Award Payments

  1. Recipient submits application for grant
  2. Awarding agency reviews application and approves
  3. Data regarding grant is transmitted to Payment Management System (PMS)
  4. Payment Management System (PMS) updates databases

These steps occur before any payment is made to your organization. The processes for submitting reports and ensuring timely payments are addressed in detail in forthcoming sections of this guidebook.

Roles and Relationships in Managing Federal Grants | Developing an Operational Plan