Frequently Asked Questions Regarding Grants

1. What is Public Law 106-07?
This is the Federal Financial Assistance Management Improvement Act of 1999. The purpose of the Act is to 1) improve effectiveness and performance of the Federal financial assistance programs, 2) simplify application and reporting requirements, 3) improve delivery of services to the public, an 4) facilitate coordination among those responsible for the delivery of services. PL 106-07 includes grants and cooperative agreements.

2. What is GPRA?
GPRA stands for the Government Performance and Results Act of 1993. In essence, GPRA requires agencies to establish strategic plans and performance goals to be achieved by program activities. Agencies receiving funding are being held accountable for outcomes resulting from program activities. This represents a significant change as agencies used to focus on process objectives, i.e., major tasks/activities associated with a project as opposed to outcome indicators.

3. What is the OMB Circular A-102?
The A-102 is the Uniform Administrative Requirements for grants and cooperative agreements with state and local governments. The document was intended to establish consistency and uniformity in grants management. The A-102 may be moved to Title 2 Code of Federal Regulations in the near future.

4. What is a high-risk grantee?
According to the A-102, a grantee may be considered high-risk if the awarding agency determines that the grantee has a history of unsatisfactory performance, has not conformed to the terms of the award, or is not responsible. A funding agency may also designate a recipient agency as high-risk before an award is made. It is important for grant recipients to conform to all conditions contained in the Notice of Grant Award (NGA) and to maintain regular dialogue with the Federal program officer. Substantive changes in the funded program, e.g., a change in project scope, key personnel or budget, generally requires advanced approval from the awarding agency. The AOC Office of Budget and Policy requires advance notification of proposed changes prior to contact with the program officer.

5. What is the OMB Circular A-87?
The A-87 contains cost principles for state, local and tribal governments. This Circular establishes principles and standards to provide a uniform approach to determining costs and to promote effective and efficient program delivery. The principles are for determining allowable costs such as public relations, meetings, compensation for personal services, fringe benefits, etc. The A-87 may be moved to 2CFR in the near future.

6. What is supplanting?
Per the Office of the Comptroller Financial Guide, supplanting is defined as deliberately reducing state funds because of the existence of federal funds. For example, if a state appropriates money for a stated purpose and then replaces the appropriation with dollars from a federal award, supplanting has occurred. Supplanting is prohibited.

7. What are public policies and how do these impact grants?
Public policies, also known as national policies, are established through Congress or by Executive Order of the President. Examples of public policies include: age discrimination, the Civil Rights Act of 1964, National Environmental Act of 1969, Protection of Human Subjects and Animal Welfare, etc. When you apply for Federal funding you are asked to sign Standard Form 424B to ensure compliance with these and other public policies.

8. What is the value of donated services?
According to OMB-A102, the valuation of donated services is essentially the value of the job performed, not the person performing the labor. Volunteer labor should be calculated using rates consistent with those ordinarily paid for work in the grantee’s organization. If the grantee does not have an employee performing similar work, rates should be consistent with those for similar work in the labor market.

9. How long do I have to maintain records of grant activities?
According to OMB-A102 Section .42, grant records must be maintained for three years.

1. What is the difference between a discretionary and mandatory grant?
Discretionary grants are competed through a request for proposal process. Mandatory grants, also known as formula grants, are distributed to states by Federal government agencies based on a formula. Mandatory grants may also be referenced as state-administered programs.

2. What is the difference between a grant and a cooperative agreement?
Both grants and cooperative agreements support agency projects. The major distinction is that when an agency is awarded a cooperative agreement, they should anticipate substantive involvement in project activities by the Federal agency making the award.

3. Why should I review the funding agency’s strategic plan before submitting my application?
Funders are interested in making awards to agencies that can further their mission through innovative, but effective use of grant funds. Funders tend to award proposals that are closely aligned with their long-range strategic plans.

4. How much preparation time is needed in order to compile a grant?
This is a common question that is somewhat difficult to answer. Depending on competition and size of the award, some professional grant writers will start compiling documentation a year in advance. The AOC Office of Budget and Policy Grant Policy requires a six week notification. Research and compilation will be conducted on a first come, first serve basis unless the Director’s office issues a priority.

5. At what point in the proposal development phase should the budget be prepared?
The budget is derived from the application narrative and should be prepared upon completion of the narrative. The budget request must match the tasks specified in the proposal, and provide the appropriate level of detail in the budget narrative.

6. What if my project is not awarded funding?
Most projects are not funded. As many professional grant trainers note, “The odds are against you before you start writing the proposal.” If your proposal is rejected, request a copy of the reviewers’ comments and begin revising in preparation for the next round of funding. Most proposal writers end up submitting their ideas two, three or four times before funding is realized.

7. Where can I locate the Office of Budget and Policy grant guidelines?
Kentucky Court of Justice officials and employees can access the grant guidelines through the intranet. To access the document, click on Departments, then on Budget and finally click the link to the policy.

1. What if I want to modify the order of the narrative elements requested in the RFP?
Funding agencies have specific reasons for asking you to respond to the narrative as presented in the RFP. It is ill advised to reorder the narrative elements and will be confusing for reviewers to follow. Modifying the order may result in a reduced score.

2. What is a logic model?
Logic models are visual depictions of your project. Most logic models contain elements such as: the target population(s), activities or inputs, goals, resources, background factors, mediators and program concerns. Many federal and state funding agencies now require development of a logic model as part of the proposal. Example Logic Model: Child Witness to Violence Project (20KB-PDF)

3. What is an evidenced-based practice or strategy?
In general, EPBs refer to interventions that have supporting evidence. EBPs specify a target population, reference supporting scientific research, adhere to strict implementation criteria, project specified outcomes for the target population and are replicable across a spectrum of settings. There is considerable debate in the social science community re EPBs, nonetheless more funding agencies are requiring applicants to identify a proven strategy as part of the RFP.

4. Is it true that proposal problem statements are often confused with strategies/methods?
Yes. It is important to remember that problem statements must be developed with the target population, i.e., people, as the primary focus. Consider the following problem statement: “The main problem that we will be addressing in the request for proposal is the lack of student computers at Johnson Elementary.” Most reviewers would not consider this a true problem statement. The purchase of computers would be considered a strategy to address an underlying problem associated with the elementary students. A statement that more clearly describes the problem might be: “Over the course of the last three years students at Johnson Elementary have scored below the national average on reading comprehension examinations.” The focus is now on the target population and the purchase of computers in this case would represent one possible strategy to improve reading comprehension. Again securing computers for the students is more appropriately addressed in the methods or activities section of the proposal.

5. What is the difference between a process objective and an outcome objective?
Thinking about GPRA will help you remember this distinction. Recall GPRA now requires funders to place heavy emphasis on results (or outcomes) for a given population. When an RFP calls for process objectives, you need to specify the tasks that you will be performing in order to meet your outcome objectives or results. Process objectives are tasks/activities associated with a grant project, e.g., project staff will conduct five, two-hour training sessions throughout the first year of the project. Outcome objectives must focus on a change in the target population specified. For example, as a result of attending the truancy prevention program, participating youth will increase attendance during the forthcoming academic year by 80%. Quantify all project objectives.