How can grant managers effectively manage their finances?

You need to keep a close accounting where you can compare the awarded budget with the actual expenditures. You also need to keep the PI of the award up-to-date on the award so if they are way overspending in a category, you can explain they will need to request a rebudget (if it meets the threshold), and try to forecast out the project as much as possible based on budget and actuals so they can see an idea of how much they can spend per month on personnel, supplies, etc. Also, keep notes handy with the accounting on any items of note, such as cost share, if it's milestone invoicing, if additional reports are due, if pre-approval is requested for certain categories (such as travel).

Setting clear goals and budgets is a crucial starting point, but grant managers can further enhance their financial management through these additional strategies: Implement a reliable financial tracking system for grant funds, allowing for expense tracking, detailed reporting, and reconciliation tools. Regularly monitor and review expenses to identify deviations and make informed decisions. Foster collaborative communication with stakeholders, including project team, donors, and financial team, to ensure accurate accounting practices and grant compliance. Maintain comprehensive documentation of all financial transactions related to grant projects.

Good coordination between Programmatic and Operations people is a key .Regular meeting and sharing information on time to anticipate risks and to taky any necessary measures .

by employing the available resources, ERPs & online resources with great adherence to the budget constraints fund managers will have it easy managing the funds. Another thing is using the report and fund management guidelines that help guide on the exchange rates to be applied in a multi-currency setup

Grant managers need to closely monitor the rate of achievement of set targets and milestones against the rate of budget utilization while taking note of instances of variances on a regular basis. On project implementation, prudent grant managers always utilize the value for money principles and keep a lookout for opportunities for collaboration with other players in the same or adjacent sectors in order to share resources and experiences while maximizing reach and impact. Monitoring, Evaluation, and Learning are fundamental skills in effective grant management as they keep pushing project implementation methodologies and strategies toward constant improvement and refinement thereby maximizing efficiency and impact.

To ensure the proper tracking and recording of expenditures, we involve our institution’s bookkeeping department from the outset. In so doing, we have on board a team who handle their respective parts while contributing to the whole. It’s important to remember that even when delegating a portion of the project, we are still accountable for the proper implementation of the grant in its entirety, so regular communication is essential. I personally find that having our financial professionals on board ensures that we remain in compliance with all local, state and federal guidelines and requirements.

Tracking and recording the spends brings in the aspect of compliance, all these should be as per the organization guidelines or donor guidelines.

Be sure to set up and manage your own budget tracking sheet. If you have an accounting department or bookkeeper, they will track the budget as well. Meet with them often to review your expenses and reconcile your budget. Having your own tracking sheet with back up documentation will be helpful especially if there are discrepancies. I worked at a large community college district as a project manager for state grants. We had one bookkeeper managing budgets and expenditures for 3 campuses. She did a great job, but occasionally expenditures were charged to the wrong budget account or missed all together. We met quarterly before reports were due. Having my own documentation really helped during those meetings.

Having an internal control systems will help build trust with donors (who authorizes expenses, who manages bank accounts & cash, who records transactions, etc.) and mitigate the risks of misallocation of funds. Also, having a chart of accounts aligned with the budget helps to save time when drafting financial reports.

Effectively manage grant funds by selecting user-friendly accounting software for tracking expenses and ensuring adherence to grantor guidelines. Start early by setting up systems to record transactions accurately and keep financial records organized for easy access. Regularly reconcile accounts and review expenditures against the budget. Engage in frequent check-ins with stakeholders to align on financial health and project objectives. Being proactive and maintaining open communication with project teams and financial officers ensures compliance and facilitates smooth financial management throughout the grant period.

Initiating a monitoring and evaluation (M&E) plan at the proposal stage is vital. It sets clear, measurable objectives early, ensuring activities align with expected outcomes. This foresight enables real-time project adjustments and underscores a commitment to accountability, making proposals more appealing to funders. Early M&E integration streamlines reporting processes, alleviating last-minute pressures. Overall, starting M&E early enhances project management, leads to better outcomes, and supports long-term impact goals, demonstrating a proactive approach to achieving and measuring success.

Under or overspending is unavoidable since even the best plans & budget can never foresee what will happen in the future. Don't hesitate to ask donors to reallocate funds according to needs to best achieve the objectives of the project.

Es ist immer gut in einer zeitlichen Rhythmik, dem Projektteam über die Lage der Finanzen zu berichten, wie ebenso ohne Vorwurf oder Tadel Best-Practice sowie Worst-Practice Beispiele zu liefern. Ebenso ist es gut festzulegen, wann welche Projektteile erledigt sein werden und eine konstruktive Fehlerkultur zu pflegen. So kann ein Lernprozess entstehen und jeder Fehler wird zu einer neuen Chance. Sei es die Optimierung einzelner Prozesse oder die Möglichkeit, strategisches Denken in eine neue Richtung zu lenken. Nur wer Neues ausprobiert, kann scheitern oder Neues hervorbringen. Ebenso muss Verantwortung auf vielen Schultern gelagert werden. Das Überwachen und Bewerten von Leistungen innerhalb des Projekts muss von allen geschehen.

Monitoring of activity implementation is very critical to avoid surprises, site field visits. Indicators must be well defined with realistic targets to give value for money. Document progress capture success stories, what worked well, and challenges and proposed mitigation measures. If not documented in never happened. Analyse project risk according to low medium and high risk, propose risk mitigation strategies and monitor.

From my experience, and in addition to what Jeniffer Carinci has outlined, one can gain some amount of insight into project performance even before the periodic data collection cycle by participating in project meetings

A common oversight in grant management is not strictly adhering to cost allocability, where expenses must directly relate to the grant's objectives. Misallocating shared or indirect costs, like administrative salaries or utilities, can easily happen but leads to non-compliance with regulations like the U.S. Uniform Guidance (2 CFR Part 200). To avoid this, organizations need proper training, clear understanding of grant requirements, regular audits, and transparent record-keeping to ensure expenses are allowable and directly linked to the project, maintaining ethical and legal integrity in grant management.

Rechtliche Standards also den Auflagen der Vergabeordnung und der Steuergesetzgebung zu folgen ist immer ratsam. Ethik und Moral gehören aber nicht dazu und sind weiche Faktoren, die sich nicht unbedingt in Gesetzestexten widerspiegeln. Kurzum, was für die große Wirtschaft erlaubt ist, darf auch bei Projektförderung gelten. Des weiteren ist die Frage, was tun, wenn man eine gerechtere Gesellschaft fördern will, dann sollten sie dies auch in ihrem Projekt so halten. Dies fördert die Zufriedenheit und Bindung der Beteiligten, aber auch insbesondere kommt es dem Erfolg ihres Projektes zu Gute. Häufig haben die Fördergeber*inen keine Ahnung wie es auf der Ebene der Projektrealisierung aussieht. Teilen sie ihre positiven u negativen Erfahrungen.

C'est pourquoi il faut faire preuve de transparence auprès des publics en intégrant les logos dans toutes les communications visuelles.

As a grant manager, it would be wise to consider enhancing the capabilities of your current team by offering them online courses on project management, grant management or best practices in finance.

Niemals keine Fragen stellen. Sachbearbeiter*innen in den Förderinstiutionen sind hilfsbereit und sie haben auch keinen Erfolg, wenn ihr Projekt keinen Erfolg hat respektive die Probleme und Fragen in der Projektrealisierung nicht auch klar diskutiert werden, denn hier könne sie theoretisch auch behilflich sein. Fragen sie auch ihre*n Steuerberater im Vorfeld, was es für das Finanzamt zu beachten gilt. Und wenden sie sich an Personen ihres Vertrauens, die schon geförderte Projekte durchgeführt haben oder nehme sie diese gar in ihr Team auf.

Grant management is one of the most overwhelming but exciting job. One need have short and long terms plans. While implementing these, the organisation should have a continuous review and evaluation of the whole process. The approval, disbursement and the transactions parts of this activity needs discipline, accountability, and transparency which helps to translate your achievements into reality.

Sometimes you do not have the answers and that is okay. Engage with financial experts, advisors, and professional associations to access guidance and support in managing grant finances effectively. Leverage training programs, workshops, and networking opportunities to enhance your financial literacy and proficiency in grant management practices.

Understand your donor, rules and regulations and ensure compliance. Manage relationship with the donor through constant communication.

Plan effectively for cashflow. Ensure that you meet all the submission requirements on time to receive new disbursements ASAP. Coordinate with project team to plan activities around the cash availability to prevent running short. Have contracts that allow you to pay at a later time as possible.

From 17 years of working in a lab and 20 years post award grant management experience, the most important piece of advice I can give is to know the researcher, the research lab and what is needed to complete the investigators research project. To many times grant managers make decisions not knowing the facts or needs of the project. Work closely with the PI and the rest comes naturally. Also understand how all the projects relate and how to distribute staff and other expenses within policy guidelines. One other thing, be open minded and think about all options available in balancing grant budgets. Do not get drawn into one two common practices.

Virement is another consideration for good financial management and general project performance. This should however be done in consultation with the program partners and importantly it must comply with the donor rules

J'aimerai ajouter que la plupart du temps, plusieurs subventions sont demandées pour une même structure. De ce fait, établir un planning avec les dates de dépôts de dossiers et de dépôts de bilan facilitera l'administratif et pourra faire corréler les subventions qui tendent vers le même projet.