Call us at 888.368.2463    CONTACT US
 Back to Blog

Are Your Systems & Processes Optimized for Grant Compliance Reporting?

In the absence of the right tools and processes, gathering, organizing, validating and presenting the information becomes a labor-intensive, manual exercise that must be repeated at each reporting interval.  Multiply this by the number of funding sources requiring reporting and it can overcome an organization’s finance team.

When this goes wrong, there is not only a risk to funding.  It can also create the appearance of impropriety.  It’s one thing to understand the stipulations attached to the funding you receive. It’s something else entirely to design your internal processes and optimize your systems to make compliance automatic.  Unfortunately, there are regularly news reports where government funders are threatening sanctions of varying severity to organizations that, for whatever reason, failed to meet the compliance reporting requirements attached to their grant funding.

It’s important to reevaluate your systems and processes from time to time to make sure that you have the right tools and that you’re considering all of the regulatory details and industry best practices in both your tools and your related business processes.  Some things to keep in mind:

  • Make sure you fully understand the conditions, data collection and reporting requirements attached to each funding stream
  • Make sure your financial management system is configured to capture grant-related data at the required level of detail for reporting
  • Ensure that the systems can accurately report on the fiscal calendar dictated by the funding source
  • Validate that you can track financial performance at the grant level, including budget to actual comparisons, on demand without significant offline manipulation

Using a financial management system that is optimized by its very nature to facilitate grant budgeting, tracking and reporting will go a long way towards keeping your organization in good graces with your funders.  It will also free up your finance staff to work on more strategic activities if their productivity is currently being lost due to recurring, labor-intensive manual grant reporting processes.

To learn more about proposed regulatory changes that may impact nonprofit financial reporting and the tools that can help position your organization to successfully and efficiently adapt, please join us at one of our upcoming Executive Seminars in a city near you.

Related Posts:
The True Costs of Nonprofit Budgeting with Excel
February 23, 2018
The True Costs of Nonprofit Budgeting with Excel

Excel is the go-to reporting and budgeting tool for countless finance teams, including financial planning and analysis (FP&A) professionals. In fact, there are more than one billion users worldwide—that’s about one in seven people! Excel is comfortable and familiar, but for growing nonprofits, it can be a real drag on your budgeting processes and productivity….

Outputs vs. Outcomes: What’s the Difference and Why Does It Matter?
February 6, 2018
Outputs vs. Outcomes: What’s the Difference and Why Does It Matter?

Donors want to know if their donations are impacting the work of your nonprofit through its mission. Increasingly, this means telling your story through numbers—something that nonprofits don’t always do well. Marc J. Epstein, co-author of the book, Measuring and Improving Social Impacts: A Guide for Nonprofits, Companies, and Impact Investors, says that “The need…

Why Your Grant Management isn’t Working (and How to Fix it)
March 3, 2017
Why Your Grant Management isn’t Working (and How to Fix it)

A special breed of nonprofits, Community Action Agencies are the primary source of direct support for the more the 34.5 million people living in poverty in the United States. Community Action Agencies and Head Start Programs serve more than 16 million individuals and more than 3 million families every year. While exhibiting at the Annual…

What’s wrong with your chart of accounts and the solutions you need to make it right
April 21, 2017
What’s wrong with your chart of accounts and the solutions you need to make it right

In the most basic terms, a Chart of Accounts (COA) gives a complete listing of every account in your accounting system. To a nonprofit financial manager or controller, a chart of accounts is much more than that. Your chart of accounts is the framework that gives insight into your nonprofit organization’s financial health. If well-designed,…

 Back to Blog