HomeMy WebLinkAbout(2011, 09/27) - F-25 - AmendedF-25
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GRANT ADMINISTRATION
PURPOSE
To establish guidelines for the application, acceptance, administration, and financial
reporting of grants including, but not limited to federal, state, local, and restricted
donations (also considered grants for the purpose of this policy).
POLICY
A. Grant Application and Responsibility
Individual departments are encouraged to investigate sources of funding
relevant to their respective departmental activities.
The individual department applying for a grant or receiving a restricted
donation shall generally be considered the Program Administrator of the grant.
The Office of Management and Budget (OMB) in the Finance Department may
assist in the financial administration and reporting of the grant but the Program
Administrator is ultimately responsible for meeting all terms and conditions of
the grant, insuring that only allowable costs are charged to the grant program
and is responsible for adhering to City budgeting and fiscal procedures.
Individual Departments and Program Administrators are not authorized to
execute grant contracts. Grant contracts should be reviewed by the City
Attorney’s office and executed by the City Manager and or City Council.
B. Grant Acceptance & Appropriation by City Council
Even though the funding source for an activity may be provided by a
grantor/donor, only City Council can appropriate funds for official City
activities except as authorized by Council Policy F-3 (Budget Adoption and
Administration). Therefore, prior to the acceptance of a grant, the City Manager
and City Council shall:
1. Approve the terms and conditions of the proposed grant including the
specific City obligations that may be created by the grant contract in terms
of required City matching expenditures or staff activities, even if the
expenditures were previously appropriated through the budget adoption process.
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2. Approve budget appropriations for the grant expenditures and City
matching expenditures unless previously appropriated through the
budget adoption process.
3. Approve and execute the Grant Contract(s).
Note: The City Council review and approval of items 1 and 3 are not required if
the grant is under $30,000 however, Council expenditure appropriation is
required for all new appropriations in excess of $10,000 or as otherwise specified
by Council Policy F-3.
Any budget amendments requested by the Program Administrator or operating
department shall be reviewed by the OMB of the Finance Department and
submitted as a staff report to the Council for their review and approval. The
OMB of the Finance Department along with the Program Administrator shall
determine the proper amount of the appropriation request during the current
and future fiscal year(s).
C. Timely Reimbursement
The Program Administrator is responsible and should pursue and/or request
grant reimbursements or draw-downs on a timely basis. If requested, the OMB
of the Finance Department will assist with grant reimbursements or draw-
downs. All checks shall be made payable to the City of Newport Beach and
remitted to Program Administrator.
Grant checks should be deposited immediately with the City Treasurer along
with supporting documentation received by the Program Administrator. Copies
should also be forwarded to the OMB of the Finance Department.
The Program Administrator will keep the OMB of the Finance Department
apprised of the annual estimated grant revenues and expenditures and a
tentative schedule of cash-flows for the grant program.
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D. Financial and Grant Reporting
Grant reporting requirements vary widely by grant and sometimes include
monthly, quarterly, and or annual reporting. Subsequent to the approval of a
grant application, and during the project period, any required reports shall be
the responsibility of the Program Administrator, or if requested by the Program
Administrator, the OMB of the Finance Department. Program Administrators
submitting their own reports shall forward a copy of each report to the OMB of
the Finance Department.
E. Grants Containing Direct Federal Assistance of Federal “Pass-Through” Funds
Program Administrators acknowledge that Federal Funds or Federal Funds that
“pass-through” state and local programs are required to be reported on the
City’s Schedule of Federal Financial Assistance and included in the City’s annual
Single Audit (compliance audit of all Federal Funds). Program Administrators
will identify and keep the OMB apprised of those grant programs that contain
direct Federal Funding or Federal pass-through funds identifying the Catalog of
Federal Domestic Assistance (CFDA) number when at all possible.
F. Record Keeping & Retention Requirements
For the purpose of Grantor inquiries and grant specific compliance audits,
Program Administrators are responsible for maintaining adequate records to
evidence that program activities and expenditures met the terms and conditions
of the grant and that all grant reporting requirements were met timely. Record
retention requirements vary by grant but it is recommended that grant records
should be maintained for a minimum of the life-of-the-grant plus three years,
unless otherwise specified by the grant contract.
G. Documents to be forwarded to Accounting:
Information received from a granting or donor agency that is pertinent to the
terms, conditions, approval, extension, denial, revocation, and administration of
a grant shall be forwarded to the OMB of the Finance Department including but
not limited to:
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Grant Award Notification
Expenditure Authorization Date (if applicable)
Grant Contracts
Grant Extension Letters
Grant Termination Letter
Program and or Financial Reports
Notices of Questioned Costs or instances of non-compliance
Any Document setting or modifying terms and conditions of the grant
Adopted – September 13, 2005
Amended – September 27, 2011