210-09
ADMINISTRATION OF GRANTS

POLICY & PROCEDURE

Subject:

ADMINISTRATION OF GRANTS

Index: FINANCE

Number: 210-09

Effective Date:

3/10/2014

Supersedes:

n/a

Page:

1 of 8

Staff Contact:

Iwen Wang

Approved By:

Denis Law

1.0 PURPOSE:

The purpose of this policy is to establish guidelines for the identification, application, administration and reporting of grants from various external sources.

2.0 ORGANIZATIONS AFFECTED:

All departments/divisions.

3.0 REFERENCES:

N/A

4.0 POLICY:

The City, through each department, shall actively pursue grant resource opportunities, maintain an active and diverse grant portfolio, and utilize grant funds to supplement and enhance the long-term goals and objectives of the City. Grant application and administration shall be coordinated with the Fiscal Services Director.

This policy is applicable to all government grants regardless of dollar amount and for private grants over thirty-thousand dollars ($30,000).

5.0 DEFINITIONS:

For the purpose of this administrative policy, the following definitions and descriptions apply:

5.1    Accounting System: the City’s financial and accounting software package used for entering, receiving, and monitoring departmental accounts; procurement of goods, services and assets and recording of fixed assets.

5.2    Administrative Policy: this policy may be revised from time to time and shall apply to all departments of the City.

5.3    Agenda Bill: A coversheet along with a resolution or ordinance and supporting grant documentation, completed by each department, submitted for City Council action at a Council meeting.

5.4    Fiscal Year: the 12-month period begins January 1 and ends December 31.

5.5    Fixed Asset Tag: an identifier or a numbering system that is used to identify the underlying asset and which indicates that asset is owned by the City of Renton and is recorded in the City’s fixed asset system.

5.6    Grant: funds, equipment or services obtained through a grant application process, which may be applied for by the City of Renton or jointly with another municipal or governmental agency and is documented by a written Grant Agreement. These grant funds or services shall include, but are not limited to: the acquisition of real property, equipment, materials, architectural, engineering, professional consultant or services; construction; development or renovation of City facilities; construction or renovation of public infrastructure; funds to operate public programs or services; and funds to pay administrative costs for the provision of public programs, projects or services, which includes direct awards or those that require matching funds.

5.7    Grant Agreement: a written contractual agreement, originated by the Grantor upon grant application approval, which contains all required conditions, specifications and regulations applicable to the receipt of funds from a specified grant.

5.8    Grant Application: the document submitted to the Grantor requesting funds. The document’s format is specified by the Grantor and contains a narrative and financial description of the program, project or service for which funds are being requested.

5.9    Grant Compliance Report: the form (online or hardcopy) utilized by Grantor to obtain performance information to monitor the compliance, funding, reporting and completion of the grant.

5.10    Grantee: the City of Renton or consortium of agencies, if a joint grant.

5.11    Grantor: the entity or agency from whom the grant is received.

5.12    Grant Profile: information related to the grant including but not limited to the award packet and the grant application submittal.

5.13    Grants Analyst: the City employee responsible for providing financial information assistance to Project Manager during the grant application process, obtaining reimbursements, and monitoring revenue/cost through project completion.

5.14    Grant Reimbursement Request: the form or system utilized by the Project Manager to submit to the Grantor that identifies the grant information needed to process a grant billing.

5.15    Miscellaneous Accounts Receivables (AR): the portion of the City’s accounting system records transactions and also establishes a receivable for the grant amount billed. When the money is received, the AR system reduces the outstanding AR receivable/balance.

5.16    Purchasing Policy: the City of Renton has adopted a Purchasing policy that applies to contracts for the procurement of goods, supplies, services, and construction contracts entered into by the City.

5.17    Project Number: text and/or number established to track revenues and expenditures pertinent to a specific grant, established by the Grant Analyst upon request from the Project Manager prior to the spending of any funds.

5.18    Project Manager: the City employee designated by the appropriate Department Administrator with responsibility for the application, implementation, compliance and completion of a grant.

5.19    Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA): required by OMB Circular A-133, SEFA is a schedule of expenditures of financial assistance. This schedule shall include all federal and state grant awards where applicable.

5.20    Single Audit Report: the report prepared by the State Auditor documenting the results of its organization-wide examination conducted under the Single Audit Act of 1984, subsequent amendments and the Rules of the Auditor General relating to agencies receiving federal or state grant funds.

5.21    Federal Grants: federally funded grants awarded to the City, whether directly from federal agencies or indirectly through the state, county, or other quasi-governmental agencies. Federal grant conditions must be met and are subject to the Single Audit Act.

6.0 PROCEDURES:

6.1    Grant Application

6.1.1    The project manager shall actively research/review and request information regarding grant opportunities. Responsibilities include, but are not limited to: the initial notification to the Administrator of the respective department and coordination with other departments who may participate in some phase of the Grant Application.

6.1.2    Once the grant has been selected to be funded by the Grantors, the Project Manager shall coordinate with the Grant Analyst; to prepare the Agenda Bill presenting the background, discussion, analysis and recommendation to City Council; preparation of the Grant Profile; project implementation; preparation of the required grant compliance reports per the Grant Agreement and audit standards; monitoring expenditures and using an assigned Project Number on the Accounting System; timely preparation of billing/reimbursement requests through AR; reporting on Performance/Status; preparation of the Final Close Out Report; and requesting the close of the assigned Project via the Grants Analyst.

The Grant Analyst shall monitor documentation for compliance and eligibility of reimbursement sought with grant requirements. Responsibilities may include the following: identifying, requesting and forwarding grant information to the appropriate departments regarding the Grant Application and the administrative process; reviewing all Grant Agreements; establishing Project Codes within the Accounting System; maintaining accurate documentation and accounting record for compliance with grant and audit requirements.

6.1.3    If required by Grantor, departments shall obtain Council approval before applying for grants. If pre-application legislative action is not required, departments shall obtain authorization from the Mayor, or her/his designee, to pursue any grant opportunities based upon the following considerations: likelihood of award; consistency with City objectives and priorities; City cash match or in-kind requirements, if any; and the ability of the City to both prepare an application, implement a program and meet compliance requirements should funding be received.

6.1.4    The Project Manager is responsible for meeting with the Grant Analyst, if necessary, to ensure that related grant purchases follow the City Procurement Code and that all grant requirements are addressed and incorporated in the purchasing bid, Request for Proposal and contract.

6.1.5    The Project Manager is responsible for ensuring that the cash match and in-kind services are clearly identified and applied during the application process to enable proper documentation throughout the grant implementation and close-out process, including identification in the City’s budget.

6.1.6    If grant revenues and expenditures monies have not previously been identified in the budget, a budget amendment request shall be submitted the Project Manager. All budget amendments shall be submitted in a timely manner in order to keep the budget current with respect to the financial status of the grant.

6.2    Grant Award Acceptance and Execution

6.2.1    The Project Manager shall notify Grant Analyst, in a timely manner, about grant awards.

6.2.2    The Project Manager shall prepare the Agenda Bill requesting City Council authorization for the Administration to execute the Grant Agreement and related documents in accordance with the agenda calendar. Please note all Intergovernmental grant awards regardless of the dollar amount require Council approval.

6.2.3    Once executed by the proper City officials, the Project Manager will forward the executed document to the Grantor.

6.2.4    The fully executed original Grant Agreement (executed by the City and the Grantor) shall be received by the appropriate department and filed with the City Clerk’s Office. The Project Manager will also forward a copy of the Grant Agreement to Finance to assist in all procurement decisions to comply with the grant requirement.

6.3    Grant Administration/Implementation:

6.3.1    Upon receipt of the fully executed Grant Agreement, the Project Manager will coordinate revenue and expenditure account numbers with the Grant Analyst. A Project Number will be assigned if one does not exist specific to the grant.

6.3.2    The Project Manager will create a grant file/folder to maintain all departmental grant documents and provide hyperlink and read access to the folder(s)/file(s) to the Grant Analyst for integration with accounting information.

6.3.3    It is imperative that the Project Manager have a thorough understanding of all compliance requirements stated in the Grant Agreement, including any audit requirements. If there are questions on any of the requirements, it will be the Project Manager’s responsibility to obtain an explanation or training on that requirement. Information regarding the grant requirements may be obtained from the Grantor itself or the Grant Analyst. Any unresolved questions should be directed to the Grant Analyst.

6.3.4    The Project Manager is responsible for the expenditure of grant funds in accordance with the City’s established policies. All invoices, billing request, grant funded equipment, etc. shall require the correct Project Number and account number. The Project Manager is responsible for obtaining the required authorization for all costs related to the applicable grant.

6.3.5    If the Project Manager is procuring an item in compliance with the Grant Agreement, all requisitions are to be in compliance with the Purchasing policy and should follow standard City procurement procedure.

6.3.6    Grant receipts and expenditures must be maintained in accordance with federal, state and local guidelines/laws applicable to the agreement (federal statute, state statute, local laws/ordinances, federal, state guidelines) and generally accepted accounting principles for local governments.

6.3.7    In addition to the requisitions and resultant purchase orders, the expenditure of the City cash and in-kind matching funds shall be reported by the Project Manager on a quarterly basis on the applicable “Grant Compliance Report” prescribed by the Grantor. A copy of the quarterly/annual grant reports should be forwarded to the Grant Analyst when filing with the Grantor.

6.3.8    A “Grant Reimbursement Request” shall be prepared by the Project Manager in accordance with the Grant Agreement or on a timely basis following the expenditure of funds and submitted to the Grant Analyst for verification of financial information prior to submission to the Grantor. The Project Manager shall forward a copy of all supporting documentation to the Grant Analyst for grant billing/receipting.

6.3.9    Grant reimbursements, when are not submitted directly online via a Grantor provided system, shall be processed in Miscellaneous Accounts Receivables. A Project Number must be used for all grant activity including issuance of requisitions, expenditures of funds and receipt of grant reimbursements.

6.4    Grant Monitoring/Reporting

6.4.1    The Project Manager shall prepare all reports of a statistical, programmatic or fiscal nature, with technical assistance available from the Grant Analyst; according to the reporting frequency (e.g. monthly, quarterly) as required in the Grant Agreement.

6.4.2    The Project Manager shall prepare departmental requests for changes in the scope, budget, or schedule of the Grant Agreement. Copies of extension requests and approval must be provided to the Grant Analyst. The Project Manager must update the “Grant Profile” and forward the changes to the Grant Analyst within 30 days of approval of any of the following: a change in the grant award amount; a change in the granting period; a change to other information required to maintain the schedules of federal and state assistance or the close out of a grant extension. All other changes of non-financial nature should be made in a timely basis.

6.4.3    When the Grant Agreement or Grantor requires public review and/or City Council approval for revisions, the Project Manager will prepare the agenda item and the Agenda Routing Form, with appropriate documentation.

6.4.4    As part of the final grant reimbursement request process, Project Manager shall complete the final report or a final acceptance/retainage release request and submit the same for the City Council approval as appropriate and to the Grant Analyst for processing the final billing or payment releases.

6.4.5    Grant program and financial records shall be maintained for a minimum of three years (or longer as may be mandated in the Grant Agreement) from the date of “close out” as designed by the Grantor entity.

6.5    Audit

6.5.1    After the end of the fiscal year, the Grant Analyst will prepare the Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA).

6.5.2    Federal and State grants are subject to annual audits by the City’s external auditors and must comply with all procurement, cost, inventory, and performance standards required by the Grantor. It is the responsibility of the Project Manager to have these documents available for review by the auditor if questioned.

6.5.3    The Grant Analyst will be responsible for the coordination and distribution of the audit report to each granting agency.

6.5.4    Each Project Manager shall receive a copy of the audit report and a copy of the SEFA when it becomes available.

6.5.5    If there are finding related to the grant reported by the external auditors in the Single Audit Report, the Project Manager handling the response will be required to assist the Grant Analyst in preparing a written response. In addition, the Project Manager will be responsible for taking the appropriate steps to ensure that the situation is corrected and that it will not recur in future years.