Tips on Managing Federal Funding

Effective management of federal funding is of paramount importance in the maximization of governmental programs, especially when considering all the aspects of compliance with often complex regulations. With the variation of funding types right from grants to cooperative agreements, it is important to know how to manage such efficiently. In this blog we will look at the basics of federal funding, essential management tips, and how technology can simplify the process.

What Is Federal Funding?

Federal Funding refers to the money given by the United States federal government to state and local governments, businesses, and nonprofits for public programs, research studies, or community development. It is the essential financial input required for major projects, infrastructural development, or provision of public services. Three key areas where the need for effective management of funds arising from such schemes becomes imperative include compliance, maximizing impact, and maintaining a healthy relationship with funding agencies.

How Does Federal Funding Work?

Federal funding is allocated through a structured process, beginning with the federal budget. Once the federal budget has been acted upon in Congress, there is an apportionment of the funds to several federal departments and agencies. These turn around to make funding opportunities available to eligible organizations. Applicants undergo an application process that includes showing alignment with federal priorities and meeting eligibility criteria.

After awarding, recipients are expected to comply with reporting, auditing, and performance measurement requirements to assure that funds are used appropriately and contribute to expected results and impacts.

Are Federal Funding and Grants Different?

Yes, even though the grant is a form of federal funding, it is only a part of the whole universe of funding. Federal funding may be in the form of loans, contracts, and cooperative agreements. Each category of funding has its own rules, different eligibility conditions, and reporting requirements. Understanding the differences between those forms of federal assistance helps government entities manage resources more effectively and results in better compliance with federal regulations.

Where Does Federal Funding Come From?

Federal funding is a result of federal tax revenues that are allocated to various agencies and their different programs through the federal budget. It is disbursed to support projects that respond to national priorities, including in areas such as healthcare, education, infrastructure, and scientific research. The funds are managed by the recipient departments, which include but are not limited to the Department of Health and Human Services (HHS) and the Department of Transportation (DOT) in various related areas where they are supposed to serve.

What Types of Federal Funding Are There?

Federal funding can be put into different categories:

• Grants: Funds provided to eligible recipients for specified activities with less restriction than is associated with many other funding mechanisms.
• Contracts: Legally binding agreements in which the government pays for goods or services provided.
• Loans and Loan Guarantees: Financial assistance that is intended, at a minimum, to be conditionally or contingently repaid, possibly on better-than-normal terms.
• Cooperative Agreements: Award instruments similar to grants but with more substantial federal agency involvement in the conduct of the project.

Each type of finance serves a different purpose; knowing which one is best for a certain project is where effective management begins.

How Fluxx's Grant Management Makes Funding Management Easier

The management of federal funding is a complex endeavor, and some serious systems and processes go into keeping that well-oiled. The demand for transparency and accountability continually goes up the ladder, and the right tools can make all the difference for a government agency. Fluxx's grant management platform offers a streamlined solution to simplify compliance, reporting, and data management. Key features include:

• Standardized Data Collection: Uniformity in reporting formats ensures ease of tracking outcomes and measuring impact.
• Report Automation: Set up automatic notifications regarding any upcoming deadlines for ease of report submission and compliance checking.
• Custom Dashboards: Showcase the full overview of all funding activities to easily manage in case of multiple funding streams.
• Easy to Use: Fluxx uses an intuitive platform that reduces the learning curve for employees, helping to avoid common user adoption challenges. It also makes communication with sub-recipients easier because everyone is on the same page.

Effective Federal Funding Management

A deep understanding of the many different funding types and remaining in compliance with their ever-changing federal regulations is required. By utilizing technology, such as Fluxx's grant management platform, government agencies can work more effectively, from reducing tremendous amounts of manual workloads to ensuring that public funds are better utilized. Whether through standardized reporting or automated checks on compliance, the right tools make all the difference in navigating the complexities within federal funding.

Ready to make the process of finding and applying for federal funding fast and easy? Schedule a call to learn more about Fluxx's grant management solution today and let us show you how we can help.