Managing grants represents an important responsibility that spans community services to infrastructure development. For seldom fully resourced local governments, the administration of grant applications, compliance, and even reporting is immensely burdensome. Fortunately, advanced grant management software solutions for local governments go a long way in effectively easing operations, enhancing transparency, and making sure funds achieve their rightful programs.
In this blog, we look at how local government grants work, what the key features required to enable such processes are, and why Fluxx is necessary to make such grant-making efficient.
What are Local Government Grants?
A local government grant can be from state, federal, or private organizations to finance various local government programs. These can be for everything, from public safety and economic development initiatives down to educational programs. Local governments depend on these grants as supplements to manage the community needs for which their budgets are usually inadequate, but there are several challenges to manage these grants effectively.
Many of these grants from local governments require close tracking, compliance, and reporting to meet the various requirements of funders. Without the right tools in place, governments are put at a greater risk of losing their funding or failing to meet key milestones that have associated negative impacts on important services.
How Local Government Grants Work
Most of the grant processes, in general, go through some form of cycle: funding opportunity identification, grant application, management of funds that have been secured, and reporting on outcomes. Well, theoretically speaking, that is not as easy as it sounds.
- Application: This involves sourcing potential sources of funds. In most cases, this means access to complex applications, ensuring eligibility, and submitting relevant documents.
- Management: The responsibility of the local government is to track the expenditures in compliance and utilize funds for what is stated when a grant is awarded.
- Reporting: Most grantors require periodic updates and final reports on exactly how funds were used and what effect they achieved.
Manual or clumsy-tool management of these phases makes the process slow and error-prone, and ultimately expensive.
Regulatory Implications of the Management of Local Government Grants
There are so many regulations concerning how local governments are supposed to manage their grants. Federal funding is usually connected with strict requirements outlined by the Uniform Guidance, or 2 CFR 200, that dictates principles around financial management, record-keeping, and reporting. Compliance measures also come from state and local governments, which must be satisfied to make sure the public funding falls into the right hands and that it is used responsibly. Non-compliance can lead to punishments like loss of funds and reputational damage.
This therefore calls for the need to have grant management systems instituted by local governments that, while automating the checking of compliance requirements, generate audit-ready reports to ensure full adherence to the set regulations. Keeping up with these regulatory requirements will enable them to position themselves for future funding eligibility while showing fiscal responsibility to their stakeholders.
Key Capabilities of Local Government Software
With these challenges, comprehensive grant management software can help a lot for a local government. Here are some key features that make grant management software solutions effective for local government:
- Centralized Management of Data: All the documents concerning grants, applications, and related communications shall be stored in one place for easy access by the team for whatever critical information.
- Compliance Tracking Automation: Many software solutions have automatic tracking of compliance issues, flag them, and ensure that the local government meets all required regulatory compliances.
- Real-Time Reporting: Grant management software provides real-time data and reporting tools to help local governments create accurate, timely reports for stakeholders.
- User-Friendly Interfaces: Simplified workflows lessen the burden of the grant application and management process for your staff, allowing them time to focus more on impact rather than admin tasks.
- Collaboration Tools: The most efficient grant management systems provide the capability for collaboration in order to enhance the communication between various departments and even external stakeholders in the grant lifecycle.
How Local Government Grants Are Different
Local government grants are usually narrower in focus; these grants can be infrastructural, housing, educational, and in other aspects of the community. They may have smaller budgets, yet they require the same intensive attention to detail for tracking, compliance, and reporting like major federal grants.
Also, due to the community-level impact of such grants, they can be more sensitive to public scrutiny and sometimes even other levels of scrutiny. That is why local governments require software which can deal with these unique pressures by managing accountability and transparency at each and every stage of the grant cycle.
Common Types of Local Government Grants
Local governments typically manage a range of grant types that may include but are not limited to:
- Community Development Block Grants (CDBGs): These are federal funds allocated to the local governments to develop housing, assure economic development, and provide public services.
- Public Safety Grants: Appropriation of funds toward the improvement of local law enforcement, fire departments, and emergency services.
- Infrastructure Grants: Appropriations utilized in the development of public facilities such as roads, bridges, and other public buildings.
- Educational Grants: Grants are invested in enhancing local schools, widening the scope of their educational programs, and improving student outcomes.
Each of these types of grants has its rules and requirements, thus further driving the need for effective management systems.
How Fluxx Can Help
What local governments need are solutions that make grant management not only easier but more transparent and accountable. That is where Fluxx comes in: designed with the grantmaker in mind, Fluxx offers a highly capable yet user-friendly platform able to streamline every stage of grant management in local government.
Fluxx allows the local government to:
- Automate Compliance Tracking: A local government grant may have strict regulations such as 2 CFR 200 or specific funding guidelines provided by your state. Fluxx would automate your compliance through reporting requirements, non-compliance flagging, and support of ongoing grant eligibility.
- Streamline Reporting: Fluxx provides real-time reports that local governments use to demonstrate the outcomes of grants to city councils, state officials, and federal agencies. Whether tracking a Community Development Block Grant to see how it improves infrastructure or displaying the improvement in public safety through grants from federal agencies, Fluxx makes it easier and faster.
- Improve Collaboration: More often than not, local government departments work in silos. Fluxx helps break down these barriers by offering communication tools that interconnect departments such as public works, economic development, and law enforcement. Such collaboration tools ensure that grant objectives effectively trickle down to multiple sectors.
- Customizable Workflows: Governments operate a wide variety of grants in separate sectors, including infrastructure developments and public safety. Fluxx thus obliges governments to create custom workflows to best fit their grant process so that funds can be utilized effectively in response to the needs of the community.
Using tools like Fluxx will significantly reduce administrative burdens and free the local governments to invest more time and energy in making meaningful programs for their communities.
Smoothen Your Government Grant Process with Fluxx
Care for the grants of local governments is not easy, but once the right software is in place, the task will definitely become much easier to handle. Grant management software solutions for local governments streamline application stages such as management, reporting, compliance, and transparency for your organization. With Fluxx and similar platforms, this will definitely boost efficiency, particularly due to the aspect of confidence among stakeholders, in further improving impacts on the communities in which they serve.
Ready to see how Fluxx can transform your grant management process? Schedule an intro call today to learn how our software can meet the unique needs of your local government.