Non-Profit and Grant Management Solutions

1. G/L Account (15)
   Link via: [81:1] = [15:1]

2. Grant/Donor (Custom Table)
   Link via: [81:CustomGrantNo] = [Grant:No]

[Grant:Restriction] is in ('Temporarily Restricted', 'Permanently Restricted')
AND [15:CustomExpenseCategory] is not in [Grant:AllowedExpenseCategories]

Type: Error

Message:
DONOR RESTRICTION VIOLATION

Grant/Fund: [Grant:Name]
Grant Number: [Grant:No]
Donor: [Grant:DonorName]
Restriction Type: [Grant:Restriction]

Transaction Details:
Account: [15:1] - [15:2]
Expense Category: [15:CustomExpenseCategory]
Amount: [81:8]
Description: [81:11]

DONOR RESTRICTION:
[Grant:RestrictionDescription]

Allowed Expense Categories for This Grant:
[FOR EACH category in [Grant:AllowedExpenseCategories]:
  • [Category]
]

Attempted Expense Category: [15:CustomExpenseCategory]
⚠️ NOT ALLOWED under grant restrictions

FASB ASC 958 - Not-For-Profit Entities:
Non-profits must honor donor-imposed restrictions on use of contributed assets.

Restriction Types:
1. TEMPORARILY RESTRICTED:
   - Purpose restriction (must be used for specific program/purpose)
   - Time restriction (cannot be used until future period)
   - Released when purpose accomplished or time requirement met

2. PERMANENTLY RESTRICTED:
   - Principal maintained in perpetuity (endowment)
   - Only investment income may be spent
   - Cannot invade principal without donor approval

Consequences of Restriction Violation:
- Breach of donor trust
- Requirement to return funds to donor
- Potential lawsuit for breach of fiduciary duty
- Loss of donor confidence and future contributions
- IRS scrutiny and potential loss of tax-exempt status
- Audit findings and reputation damage

Required Actions:
1. Change grant/fund to unrestricted or appropriate restricted fund
2. Verify expense is allowed under selected fund
3. Obtain donor approval if expense is necessary but not explicitly allowed
4. Document approval in grant file

Post expense to correct fund that allows this expense category.

Development Director: [Contact]
Grant Compliance Officer: [Contact]

[15:CustomAccountType] is 'Net Asset Release'
AND [Grant:Restriction] is 'Temporarily Restricted'
AND SUM([81:Amount] WHERE Grant posted to during period) < ABS([81:Amount]

Type: Error

Message:
NET ASSET RELEASE EXCEEDS RESTRICTIONS SATISFIED

Grant: [Grant:Name]
Period: [81:PostingDate]

Net Asset Release Transaction:
Account: [15:1] - [15:2]
Release Amount: [81:Amount]

Restrictions Satisfied This Period:
[FOR EACH expense posted to grant during period:
  Date: [Expense date]
  Account: [Expense account]
  Category: [Expense category]
  Amount: [Expense amount]
]

Total Restrictions Satisfied: [Sum of expenses]
Net Asset Release Amount: [Release amount]
EXCESS RELEASE: [Release - Expenses]

1. Grant (Custom Table)
   Link via: [39:CustomGrantNo] = [Grant:No]

2. Grant Budget (Custom Table)
   Link via: [Grant:No] = [GrantBudget:GrantNo]
   AND [PurchaseLine:ExpenseCategory] = [GrantBudget:Category]

[GrantBudget:ActualSpent] + [GrantBudget:Committed] + [39:LineAmount] > [GrantBudget:BudgetAmount]

Type: Error

Message:
GRANT BUDGET EXCEEDED

Grant: [Grant:Name]
Grant Period: [Grant:StartDate] to [Grant:EndDate]
Funding Source: [Grant:FundingAgency]
Grant Award: [Grant:TotalAward]

Budget Category: [GrantBudget:Category]

Budget Status:
Approved Budget: [GrantBudget:BudgetAmount]
Actual Spent: [GrantBudget:ActualSpent]
Committed (POs): [GrantBudget:Committed]
Available: [GrantBudget:BudgetAmount] - [ActualSpent] - [Committed]

This Purchase Order:
Vendor: [PurchaseHeader:VendorName]
Amount: [39:LineAmount]
Description: [39:11]

Budget Variance:
Requested: [39:LineAmount]
Available: [Available amount]
OVERAGE: [[39:LineAmount] - [Available]]

Grant Budget Requirements:
Grant agreements specify maximum amounts by budget category.
Expenses exceeding approved budget are unallowable and will not be reimbursed.

Options to Proceed:
1. REDUCE PURCHASE AMOUNT to stay within budget
   Maximum allowed: [Available amount]

2. REQUEST BUDGET MODIFICATION from funder
   - Submit budget modification request
   - Explain need for reallocation
   - Obtain funder written approval
   - Update grant budget in system
   - Then process purchase

3. CHARGE TO DIFFERENT GRANT OR FUND
   - Identify grant with available budget in this category
   - Change grant number on purchase
   - Verify expense is allowable under alternate grant

4. COST-SHARE WITH ORGANIZATIONAL FUNDS
   - Charge portion to grant (up to budget limit)
   - Charge overage to unrestricted funds

Grant Budget Modification Process:
☐ Complete budget modification request form
☐ Justify reallocation need
☐ Submit to Program Officer
☐ Obtain written approval
☐ File approval in grant file
☐ Update budget in system

Cannot commit funds exceeding approved grant budget.

Unapproved overspending results in:
- Disallowed costs
- Organization absorbs expense
- Grant audit findings
- Potential loss of future funding

Program Director: [Contact]
Grants Administrator: [Contact]

([T] - [Grant:StartDate]) / ([Grant:EndDate] - [Grant:StartDate]) > 0.5
AND [Grant:PercentSpent]

To: program.director, grants.manager
Subject: Grant Underspending Alert - [Grant:Name]

Body:
GRANT SPENDING PACE CONCERN

Grant: [Grant:Name]
Funder: [Grant:FundingAgency]
Grant Period: [Grant:StartDate] to [Grant:EndDate]
Total Award: [Grant:TotalAward]

Spending Status:
Period Elapsed: [[T] - [Grant:StartDate]] days ([Percent]%)
Period Remaining: [[Grant:EndDate] - [T]] days

Amount Spent: [Grant:ActualSpent]
Percent Spent: [Grant:PercentSpent]%
Committed: [Grant:Committed]
Remaining: [Grant:TotalAward] - [ActualSpent] - [Committed]

⚠️ UNDERSPENDING CONCERN

Expected spending pace: [Period elapsed]% = $[Expected amount]
Actual spending: [Grant:PercentSpent]% = $[Grant:ActualSpent]
Variance: $[Expected - Actual]

Underspending Risks:
1. Inability to achieve program objectives
2. Unexpended funds must be returned to funder
3. Reduced future funding due to inability to execute
4. Lost opportunity to serve beneficiaries
5. Funder perception of poor program management

Reasons for Underspending:
- Delayed program start
- Staff vacancy
- Participant recruitment challenges
- Vendor/contractor delays
- Seasonal program activities
- Overly conservative budget

Recommended Actions:
☐ Review program activities and timeline
☐ Identify barriers to spending
☐ Accelerate program activities if possible
☐ Request no-cost time extension if needed
☐ Communicate with funder about spending pace
☐ Adjust staffing or contractor support
☐ Reallocate budget to high-priority activities

If underspending continues:
- May need to scale back program scope
- Return unused funds to funder
- Negotiate grant modification

Meet with program staff to develop spending acceleration plan.

Program Timeline Review: [Document link]
Budget Reallocation Request: [Form link]

1. Grant (Custom Table)
   Link via: [81:CustomGrantNo] = [Grant:No]

2. Vendor (23)
   Link via: [81:CustomVendorNo] = [23:1]

3. G/L Account (15)
   Link via: [81:1] = [15:1]

[Grant:FederalGrant] is true
AND [15:CustomExpenseType]

Type: Error

Message:
UNALLOWABLE COST - FEDERAL GRANT

Grant: [Grant:Name]
Federal Agency: [Grant:FederalAgency]
CFDA Number: [Grant:CFDANumber]

Expense Details:
Account: [15:1] - [15:2]
Expense Type: [15:CustomExpenseType]
Amount: [81:8]
Vendor: [23:2]
Description: [81:11]

OMB UNIFORM GUIDANCE 2 CFR PART 200 SUBPART E:
This expense is UNALLOWABLE under federal cost principles.

Unallowable Cost Categories:
§200.423 Alcoholic beverages
§200.438 Entertainment costs
§200.445 Goods or services for personal use
§200.450 Lobbying
§200.421 Advertising and public relations (certain types)
§200.442 Fund raising and investment management
§200.431 Compensation - personal services (excessive)
§200.447 Insurance and indemnification (certain types)

Cost Allowability Standards (2 CFR §200.404):
To be allowable, costs must be:
1. Necessary and reasonable for grant performance
2. Allocable to federal award
3. Conform to limitations in grant agreement
4. Consistent treatment (accounting policies)
5. Adequately documented
6. Incurred during grant period
7. Net of applicable credits

Consequences of Charging Unallowable Costs:
- Cost disallowed upon audit
- Repayment required with interest
- Audit finding and questioned costs
- Potential suspension/debarment
- Loss of federal funding eligibility
- Damage to organization reputation

Required Actions:
1. Charge expense to unrestricted fund (organizational funds)
2. Do not charge to any federal grant
3. Document reason expense is necessary for organization
4. Ensure segregation from federal grant accounting

If expense is necessary for program:
- Review cost allowability guidance carefully
- Consult with Grants Compliance Officer
- Obtain written determination
- Document in grant file

Federal Cost Principles: 2 CFR Part 200.420-475
Grants Compliance: [Contact]

[Grant:FederalGrant] is true
AND [15:CustomCostType] is 'Direct'
AND [81:CustomSharedAcrossPrograms] is true
AND [81:CustomAllocationMethod]

Type: Warning

Message:
COST ALLOCATION REQUIRED

Expense: [15:2]
Amount: [81:8]
Classification: [15:CustomCostType]

This expense benefits multiple programs and requires cost allocation.

Direct Costs (2 CFR §200.413):
Costs that can be identified specifically with a particular final cost objective (grant).

Indirect Costs (2 CFR §200.414):
Costs incurred for common or joint objectives that cannot be readily identified with a single grant.

Cost Classification Decision:
[IF([81:CustomSharedAcrossPrograms],
'This expense benefits multiple programs/grants.

Question: Can you identify specific benefit to each program?

If YES: Direct cost - Must allocate based on benefit
If NO: Indirect cost - Include in indirect cost pool

Examples of Allocable Direct Costs:
- Salary of staff working on multiple grants (allocate by time & effort)
- Rent for space used by multiple programs (allocate by square footage)
- Equipment shared by programs (allocate by usage)

Allocation Methods:
• Time & Effort (personnel)
• Square footage (facilities)
• Direct labor dollars (certain shared costs)
• Units of service (program activity)
• Full-Time Equivalent (FTE)

For this expense, allocation method: [Required selection]
', '')]

If This is Truly a Direct Cost:
1. Document allocation methodology
2. Maintain supporting documentation
3. Apply consistently across grants
4. Allocate amount to grants:

[Grant allocation entry grid]

If This is Actually an Indirect Cost:
1. Reclassify as indirect cost
2. Include in indirect cost pool
3. Apply indirect cost rate to grants
4. Do not charge directly to grant

Misclassification Consequences:
- Audit questioned costs
- Double-charging (direct + indirect)
- Inconsistent cost treatment
- Disallowed costs

Determine proper classification and allocation before posting.

Cost Allocation Plan: [Document reference]

[Grant:FederalGrant] is true
AND [Grant:OrganizationIndirectCostRate] is 0
AND [Grant:DeMinimisElection]

To: cfo, grants.manager
Subject: Indirect Cost Rate Election - [Grant:Name]

Body:
INDIRECT COST RATE DETERMINATION REQUIRED

Grant: [Grant:Name]
Federal Agency: [Grant:FederalAgency]
Award Amount: [Grant:TotalAward]
Grant Period: [Grant:StartDate] to [Grant:EndDate]

Indirect Cost Recovery Options:

OPTION 1: DE MINIMIS RATE (2 CFR §200.414(f))
Non-profits without negotiated indirect cost rate may elect 10% de minimis rate.

De Minimis Rate:
• 10% of Modified Total Direct Costs (MTDC)
• No negotiation or cost study required
• Can be used indefinitely
• Must be used consistently for all federal awards

Modified Total Direct Costs (MTDC) Excludes:
- Equipment over $5,000
- Capital expenditures
- Rental costs over $5,000
- Tuition remission
- Participant support costs
- Subaward amounts over $25,000

Estimated Recovery:
Grant Direct Costs (MTDC): [Estimated MTDC]
De Minimis Rate: 10%
Indirect Cost Recovery: [MTDC × 10%]

OPTION 2: NEGOTIATE INDIRECT COST RATE
Develop indirect cost rate proposal based on actual costs.

Negotiated Rate Process:
1. Prepare indirect cost rate proposal
2. Document indirect cost pools
3. Select allocation base
4. Submit to cognizant federal agency
5. Negotiate rate
6. Execute indirect cost rate agreement (ICRA)
7. Apply negotiated rate to grants

Potential negotiated rate: [Estimated based on historical costs]%

Benefits of negotiated rate:
- May exceed 10% de minimis
- Based on actual indirect costs
- Valid for multiple years
- Recognized by all federal agencies

OPTION 3: WAIVE INDIRECT COST RECOVERY
Some organizations choose not to charge indirect costs.

Waiver considerations:
- Funder relationship preference
- Competitive advantage in proposal
- Full cost not recovered (organization subsidizes grant)

RECOMMENDATION:
[IF(Organization has negotiated rate, 'Use existing negotiated rate: ' + [Rate],
   IF(Estimated rate > 10%, 'Pursue negotiated rate for higher recovery',
      'Elect de minimis 10% rate - simplest option'))]

Select indirect cost rate option and update grant configuration.

Indirect Cost Rate Agreement: [If exists, attach]
De Minimis Election Form: [Template]

[Grant:IndirectCostCalculated] > [Grant:IndirectCostLimit]

Type: Warning

Message:
INDIRECT COST RATE LIMITATION

Grant: [Grant:Name]
Funder: [Grant:FundingAgency]

Indirect Cost Rate Structure:
Organization Rate: [Grant:OrganizationIndirectCostRate]%
Grant Agreement Limit: [Grant:IndirectCostLimitRate]%

Budget Calculation:
Total Direct Costs: [Grant:TotalDirectCosts]
Modified Total Direct Costs: [Grant:MTDC]

Indirect Cost Calculations:
At Organization Rate ([Org rate]%):
  [Grant:MTDC] × [Org rate]% = [Calculated amount]

At Grant Limit ([Grant limit]%):
  [Grant:MTDC] × [Grant limit]% = [Limited amount]

Unrecovered Indirect Costs: [Calculated - Limited]

Grant Agreement Restriction:
This grant agreement limits indirect cost rate to [Grant:IndirectCostLimitRate]%, which is below organization's rate of [Grant:OrganizationIndirectCostRate]%.

Common Grant Restrictions:
- Foundation grants often limit indirect costs to 10-15%
- Some federal programs have statutory restrictions
- Grant RFP may specify maximum indirect cost rate

Impact:
Organization will not recover full indirect costs.
Unrecovered amount ([Unrecovered]) will be absorbed by unrestricted funds.

This represents organization cost-share/matching contribution.

Options:
1. ACCEPT LIMITATION
   - Apply limited rate
   - Recognize unrecovered cost as cost-share
   - Factor into grant acceptance decision

2. NEGOTIATE WITH FUNDER
   - Request exception to policy
   - Justify need for full indirect cost recovery
   - Offer compromise rate
   - May be declined

3. DECLINE GRANT
   - If unrecovered costs too high
   - Organization cannot afford to subsidize grant

Grant Acceptance Considerations:
• Does program align with mission?
• Can we afford unrecovered indirect costs?
• Will grant lead to future funding opportunities?
• Does restricted indirect rate set precedent?

Proceed with indirect cost limitation?

CFO Approval Required: [For grants with significant unrecovered indirect]
Grant Acceptance Form: [Link]

EXISTS(Employee Time WHERE Grant-funded hours > 0)
AND NOT EXISTS(Time & Effort Certification for period)
AND [T]

To: [Employee:Email]
CC: supervisor, grants.accountant
Subject: Time & Effort Certification Required - [Month]

Body:
TIME & EFFORT CERTIFICATION DUE

Employee: [Employee:Name]
Position: [Employee:JobTitle]
Period: [Month]
Certification Due: [Last day of month following]

OMB UNIFORM GUIDANCE 2 CFR §200.430(i):
Charges to federal awards for salaries and wages must be based on records that accurately reflect work performed.

Grant-Funded Activities This Period:
[FOR EACH grant with hours charged:
  Grant: [Grant name]
  Hours: [Hours]
  Percent: [Percent of total hours]
  Amount: [Salary charged]
]

Total Grant-Funded Hours: [Total hours]
Total Hours Worked: [Total including non-grant]

Time & Effort Certification Requirements:

PERSONNEL ACTIVITY REPORT (PAR):
For employees working on SINGLE cost objective:
• Semi-annual certification
• Signed by employee and supervisor
• Certifies employee worked solely on that program

PERSONNEL ACTIVITY REPORT (Multi-Grant):
For employees working on MULTIPLE cost objectives:
• Monthly time distribution reporting
• Documents hours worked on each grant/activity
• After-the-fact reporting (not estimates)
• Signed by employee
• Reviewed and approved by supervisor

Your Certification:
You charged time to [Number] grants this period, requiring monthly certification.

Certification Statement:
"I certify that the hours reported represent actual time spent on each grant and activity, and that the distribution accurately reflects my work during the certification period."

Complete Time & Effort Certification:
1. Review time distribution report
2. Verify accuracy of hours charged to each grant
3. Make corrections if needed
4. Sign certification
5. Submit to supervisor for approval

Certification Form: [Link to online form]

Late Certification Consequences:
- Salary charges not supported by required documentation
- Audit questioned costs
- Grant audit findings
- Potential salary disallowances
- Non-compliance with federal cost principles

Complete certification by [Due date].

Questions? Contact Grants Accountant: [Contact]

1. Time & Effort Certification (Custom Table)
   Link via: [Employee:No] = [T&E:EmployeeNo]

2. Payroll Detail (Custom Table)
   Link via: [Employee:No] = [Payroll:EmployeeNo]
   Reference Filters:
     [Payroll:Period] = [T&E:Period]

ABS([T&E:PercentToGrant] - [Payroll:PercentChargedToGrant]

Type: Error

Message:
TIME & EFFORT CERTIFICATION DISCREPANCY

Employee: [Employee:Name]
Period: [T&E:Period]

Grant: [Grant:Name]

Time & Effort Certification:
Employee Reported: [T&E:PercentToGrant]%
Hours: [T&E:HoursToGrant]
Salary: [Calculated salary based on %]

Actual Payroll Allocation:
System Charged: [Payroll:PercentChargedToGrant]%
Hours: [Payroll:HoursChargedToGrant]
Salary: [Payroll:SalaryChargedToGrant]

Variance: [Difference]% ([Abs(T&E - Payroll)]%)

⚠️ EXCEEDS ACCEPTABLE VARIANCE (5%)

Time & Effort Reporting Requirements:
Certifications must reflect ACTUAL work performed.
Certifications must match payroll allocations.

Reasons for Discrepancy:
1. Time entry errors during period
2. Retroactive time entry corrections not reflected
3. Employee certification error
4. Allocation adjustment not communicated

Required Actions:
[IF([T&E:Percent] > [Payroll:Percent],
'UNDERBILLED TO GRANT:
1. Review actual work performed
2. If certification correct, adjust payroll allocation to match
3. Process payroll adjustment to charge additional salary to grant
4. Document reason for adjustment
', '')]

[IF([T&E:Percent] < [Payroll:Percent],
'OVERBILLED TO GRANT:
1. Review actual work performed
2. If certification correct, adjust payroll allocation to match
3. Process payroll adjustment to credit grant for excess salary charge
4. Charge corrected amount to appropriate funding source
5. Document reason for adjustment
', '')]

Materiality Threshold:
Variances under 5% are acceptable due to rounding and minor timing differences.
Variances over 5% require investigation and adjustment.

Cannot accept certification with material variance from payroll.

Revise certification or adjust payroll allocation to reconcile.

Grants Accountant: [Contact]