Grants are an important source of revenue for many governments and allow investments in infrastructure, development of programs, and results for the community that otherwise would not be possible using local sources alone. State and local governments rely on federal grants for a portion of funding to provide essential programs and services in every community.

1) Prepare an Inventory of All Grants

Work with staff from all departments to create an inventory or database of your current grants and federally funded programs. The grant inventory should identify the following:

• Current status
• Grant terms
• Grant amount
• Grant administrator (Department)
• Eligible expenses
• Capital asset restrictions
• Does grant involve any pass through funding for other organizations
• Is subrecipient monitoring required

2) Prepare for the Single Audit

If your organization expends $750,000 or more in federal awards, you are required to have a Single Audit, per the White House Office of Management and Budget’s Uniform Grants Guidance.  For fiscal years beginning on or after 10/1/2024, the threshold is $1,000,000. The Single Audit requires you to prepare a Statement of Expenditures from Federal Awards (SEFA). 

3) Prepare for future grant activity

Be mindful of grant and funding application and reporting deadlines.  Consider sharing timelines and due dates among different parts of your organization.

4) Alert program staff of grant requirements

Make sure federal grant information and awareness is shared in multiple levels of your organization.  Program managers, procurement staff, facility and equipment managers may be in various stages of a solicitation or contract related to a federally funded program.  It is important that any actions your locality is taking until more information is known, reaches the right people at this time.   

4) Exercise Due Diligence Before Entering into Third Party Contracts

Consider placing written controls in place that help your jurisdiction exercising due diligence and caution by having program staff communicate internally before taking unilateral action to enter third party contracts that use federal funds.