SUBJECT:Grant Policies and Procedures

REFERENCE:N/A

PURPOSE:To establish policies, procedures, and guidelines to ensure that the administration of all grants received by the Town of Lantana (Town) meets established standardized guidelines and regulations, and complies with all program requirements.

POLICY AND PROCEDURES:

Policy

All Town employees that are responsible for the administration and/or coordination of grants in any form, including but not limited to application, budgetary administration or distributing grant proceeds, shall follow the procedures set forth in this policy.

Procedures

Application

As part of the preliminary application process, the department director that intends to request funding from any outside source through the grant application process shall notify all other department directors of the intention to seek outside funding. The purpose of this notification is to eliminate the possibility of two or more departments competing for the same award. In the event that two or more departments plan to apply for the same source of funding, the Town Manager shall decide which of the proposed use of funds best furthers the interests of the Town.

Notification

The Town Manager shall be notified of all pending grant applications, so that Town Council may be appropriately informed. All grants which require a Town cash match over $15,000 shall require the approval of the Town Council before application is made. The Finance Department, specifically the Assistant Finance Director, shall be notified of all grants for which the Town intends to apply. Once the grant application is submitted, a copy of the signed application, including all addendums and related information, shall be provided to the Assistant Finance Director for the master files.

It is the intent of this policy that the Assistant Finance Director shall have all grant related information, including contracts, amendments, and site-visit notifications in the Finance Department master files.

Administration

The initiating department director shall be responsible for:

  • Ensuring that the project progresses according to the grant time schedule.
  • Administrating all aspects of the grant progress, including the completion of any necessary progress reports and processing grant payment requests at least quarterly unless otherwise noted in the grant agreement.
  • Filing all necessary reports with the granting agency in a timely manner as specified in the grant agreement.
  • Providing copies of all reimbursement requests filed to the Assistant Finance Director.
  • Verifying that sufficient funds exist in the budget to meet any matching fund requirements prior to execution of the grant agreement by the Town Manager.
  • Completing the Grant Information Form and providing a copy to Finance.

The Finance Department shall be responsible for all grant related accounting, including the filing of all required financial statements and documentation unless other arrangements have been made. The Assistant Finance Director shall manage all financial and budgetary aspects of grant activities and maintain adequate records to document allowable costs and revenues attributable to each grant project.

Purchasing and Procurement

Any purchase or procurement accomplished with grant funding shall be made in accordance with the Town’s established Purchasing Policy and the grant agreement. Contradictions between the Town’s purchasing policy and the grant agreement must be researched and resolved prior to execution of the grant agreement. The use of suspended or debarred vendors for federally funded grants is prohibited.

Receipt of Award

Upon receipt of the executed grant award document, the department director shall promptly review the grant agreement to ensure that all vital information is correct. The department director shall retain a copy of the agreement in the departmental files and forward a copy to the Assistant Finance Director for the Finance Department master grants file. Upon notification of the award, the Finance Department shall establish and/or designate appropriate account numbers. The Finance Department is to be notified prior to initiating a request for grant funding advances.

Grant Administration

Any department director receiving a grant award shall be responsible for administering all funds received by their department in accordance with the terms of the grant agreement and for ensuring compliance with the applicable items on the Town’s Grant Checklist (Table 1). These responsibilities may include documenting and monitoring compliance provisions, laws, and regulations including, but not limited to, the Davis-Bacon Act, Drug Free Work Place Act, and Federal requirements regarding the use of debarred vendors. Both the department director and the Assistant Finance Director may act as liaisons between the granting agencies and the Town.

Receipt of Funds

All grant funds received by the Town shall be forwarded to the Assistant Finance Director for processing and recording in accordance with the Town’s established accounting practices.

Grant Accounting

The Assistant Finance Director is responsible for the overall grant accounting process. A quarterly grant analysis is prepared to ensure proper reimbursement and expending of funds, which is distributed to the Town Manager and directors that are responsible for the active grants. On an annual basis a Schedule of Expenditures of Federal Awards and Financial Assistance (SEFA) is prepared.

All grant funds will be deposited and recorded by the Finance Department and the department director will be notified of the receipt. The Assistant Finance Director will be responsible for properly accounting for the revenue in the appropriate general ledger account.

Grant Records

The Assistant Finance Director shall be responsible for maintaining all grant master files, all financial and program records, and statistical information in accordance with the retention terms specified in the grant agreements. All completed grant records shall be disposed of pursuant to the guidelines set forth in OMB Circular A-102, and Chapter 119 of the Florida Statutes.

Grant Assets

All grant funded assets that are defined by each grant or meet the Town’s fixed asset threshold shall be recorded in the fixed assets management system. Disposal of these assets should follow the normal guidelines of disposing an asset unless otherwise specified in the grant agreement.

Annual Audit

Federal and State grants are subject to an annual audit by the Town’s external auditors as mandated by governing laws and regulations. The audit tests for accurate reporting of expenditures and revenues, compliance with the grant agreement and internal controls. The information for the annual audit is presented in the form of a Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA) and supporting documentation as requested by the external auditors.

Table 1

Town of Lantana

Grant Checklist

To properly report all grants on the Schedule of Expenditures of Federal Awards and State Financial Assistance (Single Audit) the following documents must be provided to the Finance Department.

____ Signed copy of the Grant Application

____ Copy of Grant Award Letter

____ Signed copy of the Grant Agreement including attachments

____ Completed Grant Information Form

____ Copy of Financial Status Report sent to the granting agency (if applicable)

____ Copy of grant reimbursement requests

____ Signed copy of grant amendments or changes including attachments (if applicable)

____ Copy of the final grant close-out report sent to the granting agency

Reminder:

Before a purchase order or invoice can be approved, the Finance Department must have the application, award letter, agreement and information form. It is the responsibility of the department director or other designated person of each grant to provide these documents in a timely manner.

Appendix

Governing Laws and Regulations

  • OMB Circular A-87 – Establishes principles and standards for determining cost for Federal awards carried out through grants, cost reimbursement contracts, and other agreements with State and local governments and federally recognized Indian tribal governments.
  • OMB Circular A-102 – Establishes consistency and uniformity among Federal agencies in the management of grants and cooperative agreements with State, local and federally recognized Indian tribal governments.
  • OMB Circular A-133 – Establishes audit requirements for federally sponsored awards and defines federal responsibilities for implementing and monitoring institutions that receive federal awards.
  • OMB Circular A-133 Compliance Supplement
  • Florida Single Audit Act, Florida Statutes 215.97

PREPARED BY: ______DATE: ______

Stephen Kaplan, Finance & Admin Svcs Director

APPROVED BY: ______DATE: ______

Deborah S. Manzo, Town Manager

Town of Lantana

Grant Information Form

Name of Grant: / Grant Number:
Funding Agency: / Grant Period:
Grant Amount: / $
Is Matching Required? / Type of Matching: / Cash In Kind Local Town
Type of Grant: / Federal-Direct Federal Pass-Through State County
CFDA/CSDA#:
Description of Grant:
Reporting Requirements:
Progress Report: / Monthly Quarterly Annually Other ______Not Required
Reimbursement Request: / Monthly Quarterly Annually Upon Request
Accounting Information:
Year Budgeted:
Expense GL#: / Revenue GL#:
Department: / Contact Person: