Grants management is the management of the program and financial activities that occur when a Tribe, organization, or educational institution signs an agreement with a grantor to accept a grant award and becomes a grantee. The grants management period for a grant does not end until the records retention period for the grant has been reached. With the exception of records retention, the grants management typically starts from the specific date stated on the grant award document (also known as the Notice of Grant Award) and ends on the end date of the grant award period provided all close out activities have been completed.
Grantees who accept grant awards are entering into legal contracts with the grantor. In exchange for financial support, grantees are promising that they will honor the intent of the project and implement it to the best of their ability asoutlined in the proposal that was submitted. Grantees will conduct activities to achieve the objectives and goals stated in the proposal. Grantees will spend the award funds as delineated in the line items listed in the budget.
It is important that grantees have established systems in place to ensure that grants are managed properly. Prior to establishing internal policies and procedures grantees need to have a working knowledge of the financial management rules that govern all grants issued by the Federal government. An understanding of the rules will assist grantees in designing policies and procedures that support effective grants management. Section 2 provides a summary of the Federal financial management rules and regulations.