Preparing for Grant Management and Single Audits*

Before applying for grants from local, state, or federal governments—or other not-for-profit organizations—it’s important to establish a strong foundation for grant management. This includes developing a system to track funds, ensure compliance, and stay aligned with program requirements. A clear understanding of both general grant guidelines and the specific terms of awarded funding will help your organization make the most Preparing for Grant Management and Single Audits

Before applying for grants from local, state, or federal governments—or other not-for-profit organizations—it’s important to establish a strong foundation for grant management. This includes developing a system to track funds, ensure compliance, and stay aligned with program requirements. A clear understanding of both general grant guidelines and the specific terms of awarded funding will help your organization make the most of available resources.

Key Areas of Focus for Grant Management

With so much online information—some of it conflicting—it’s easy to feel overwhelmed. To simplify the process, we’ve outlined key areas for setting up and maintaining an effective grant management system, along with reliable resources straight from the source. Focusing on these areas will help build a strong foundation and pave the way for a smoother Single Audit:

With so much online information—some of it conflicting—it’s easy to feel overwhelmed. To simplify the process, we’ve outlined key areas for setting up and maintaining an effective grant management system, along with reliable resources straight from the source. Focusing on these areas will help build a strong foundation and pave the way for a smoother Single Audit:

1. Information gathering - You don’t know what you don’t know, so the first step is ensuring you have all relevant information. This includes:
1. Grant application - information used to apply for the grant may be referenced in the award agreement and may be useful for future reporting. Read carefully for any references to a Single Audit, 2 CFR 200, or the Uniform Guidance – these terms usually indicate that the funding is from Federal sources, and may result in a Single Audit requirement!
1. Single Audits are required when an organization expends (not receives) federal awards during its fiscal year of:
1. For years ending before September 30, 2025, $750,000
2. For years ending on or after September 30, 2025, $1,000,000
2. Award documents - depending on the source of the funding, and whether the funding was direct or pass-through, the agreement will have information including the Assistance Listing Number (ALN) (for federal funds), authorizing regulations and legislation, relevant state and local laws, regulations, and codes; and the terms and conditions of the award itself.
3. Regulations, legislation, laws, and codes – speaking of those items above, it’s a good idea to read these and be alert for any items that impact your organization and how the program is designed to function as a whole. Federal awards may point to certain CFRs (Code of Federal Regulations); the best place to look these items up is at www.ecfr.gov.
4. Assistance Listings – All Federal awards are associated with a specific ALN. These can be looked up at www.sam.gov by searching for the number (XX.XXX) under the domain “Assistance Listings.” This will provide a summary of the program and a brief description of the program’s requirements.
5. Grantor contacts – Whether the funding is direct from the source or passed through another entity, there should be a primary contact for questions and information. Reach out early and often to clear up any questions!

2. Grant tracking – Keeping track of spending and progress on grant objectives, due dates for reports and deliverables, and budgets is essential. Some grants also include matching amounts and earmarks, which should be tracked over the life of the grant – not only at the end! Information to be tracked may include the following:
1. Financial tracking – each grant should ideally be set up in the accounting system to use specific accounts that include no other activity. Systems may use separate funds, classes, or other tracking mechanisms. Budgetary information should also be tracked along with the actual expenditures and revenues received. Keeping all of this together allows for easy comparison to budget and expected results.
2. Performance tracking – many grants include evaluating the grant’s accomplishments against certain criteria or mandate reporting of non-financial information related to goals and objectives. Keeping tabs on this information throughout the life of the grant will make reporting much easier.
3. Single Audit (Schedule of Expenditures of Federal Awards/SEFA) tracking – if the organization expends more than $750,000 (moving to $1 million for years ending September 30, 2025, or later) in total federal awards in one year are required to undergo a Single Audit under the Uniform Guidance. As this is calculated based on all Federal awards expended, and it takes significant time, tracking them throughout the year is important. Some items to be aware of include:
1. Expenditures are incurred when “the activity related to the Federal award occurs” (2 CFR 200.502(a)). This is typically when the expenditure is incurred – not necessarily paid out. In Federal lingo, disbursing cash for an expenditure is referred to as “liquidation” of the expenditure. It doesn’t have any bearing on when the Federal expenditure is included on the SEFA. This is typically when the expenditure is incurred – not necessarily paid out. In Federal lingo, disbursing cash for an expenditure is referred to as “liquidation” of the expenditure. It doesn’t have any bearing on when the Federal expenditure is included on the SEFA.
2. Non-cash assistance from Federal sources is typically included on the SEFA, including:
1. Receipt of property or surplus property;
2. The use or distribution of food commodities;
3. Interest subsidies, cash, or administrative cost allowances received related to Federal loans and loan guarantees.
3. Speaking of Federal loans – loans received directly from the Federal government often have requirements imposed on the borrower (other than just making payments). In this case, after the original loan funds have been spent, the loan balance is reported on the SEFA. The dollar amount will be the beginning balance of the loan for the year.
4. Record retention – most grant agreements include record retention requirements. It’s extremely important to follow these, as granting agencies may request grant records for review during that retention period.

Being aware of these requirements will set your organization up to manage grants effectively and efficiently and go through the Single Audit or other grant review process as painlessly as possible.

Seek Guidance for a Smoother Audit

Understanding these requirements is key to managing grants effectively, but navigating compliance and audits can still be challenging. If you have questions or need guidance, reach out to your CRI advisor. Our team is here to help you make the most of your funding, stay compliant, and simplify the audit process.