If you receive Grant-In-Aid funds, you’ll be receiving your “Grant-In-Aid Recipient Letter” shortly, if you haven’t already.
I recently spoke with the Delaware Controller General’s office, responsible for Grant-In-Aid (GIA), and they confirmed that they’ve been developing the language to implement new epilogue provisions in the GIA Bill for this year. They expected to be mailing out the letter on Thursday, July 10th to GIA Award Recipients. This is the same epilogue language I mentioned in my July 1st blog post.
I did recommend clarifications for the letter, but they had already prepared the mailing at that time. However, they confirmed my understanding of two points that you may have questions about, so I'd like to share them with you in the interest of being prepared and informed.
GIA Clarification #1
They confirmed the below pertaining to letter point #1:
If funds are directly deposited electronically by ACH, the GIA funds should be transferred to a separate account in a reasonable timeframe.
Follow Generally Accepted Auditing Standards of the American Institute of CPAs (GAAS) for restricted grant accounting.
In cases where the GIA funds are combined with other sources to cover payroll or other program expenses, you simply need to be able to show the transfers from the GIA account. So an accounting journal entry may be: "Payroll transfer out of GIA Account to General Account for portion of payroll expense as described/approved in GIA Budget Application and Award."
GIA Clarification #2
They also confirmed the below pertaining to letter point #3:
The “Random Assessment” will be focused on the “performance measures and program evaluation” proposed in the recipient nonprofit’s GIA proposal/application, not agency-wide "performance measures and program evaluations." The “Random Assessment” will have the authority to look at all aspects of the organization’s operations.
This statement is taken from the GIA letter, and describes the new random assessments "review of the agency’s performance measures and program evaluation metrics."
I clarified this because the GIA recipient nonprofits may not have agency-wide “performance measures and program evaluations” for all other programs that are funded by other sources; e.g. funded by individual donations and fundraisers or grants that don’t require measures.
As always you can contact me with any questions or comments at firstname.lastname@example.org or 302.777.5500