Grant Management
The process of tracking, reporting, and ensuring compliance for grant-funded expenditures.
Definition
Grant management in AP involves tracking expenditures against grant budgets, ensuring costs meet grant eligibility requirements, maintaining documentation for grant audits, and preparing grant financial reports. It covers the entire lifecycle from award through closeout.
Why It Matters
Grant noncompliance can result in fund clawback, ineligibility for future grants, and reputational harm. Rigorous AP-level tracking prevents these costly outcomes.
Examples
Grant budget tracking
A federal grant allows $50,000 for personnel and $20,000 for supplies. AP tracks each invoice against these line items to prevent overspending.
Cost eligibility check
An invoice for alcohol is flagged as ineligible for federal grant reimbursement, preventing a compliance violation.
How Nexus AP Helps
Nexus AP tracks grant budgets, checks expense eligibility, and generates compliance reports for grantor reporting requirements.
Start Free TrialFrequently Asked Questions
What is grant cost eligibility?
Each grant defines which costs are allowable. Federal grants follow 2 CFR 200 (Uniform Guidance) which defines allowable, unallowable, and restricted costs.
What happens if grant funds are misspent?
The grantor can require repayment (clawback), reduce future funding, or impose additional monitoring requirements.
Category
nonprofitRelated Terms
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