Insights: Global Insights

New Grant Money? Here's What To Do Next

New grant programs can vary slightly from existing programs and may have different requirements to be mindful of. With that in mind, our team wanted to share these grant management best practices that can help recipients reap big rewards.

The federal government continues to announce grant programs that present new opportunities for food, beverage, and agribusiness. As one recent example, BCI was pleased to help several of our clients secure millions of dollars through the new Regional Agricultural Promotion Programs to help them build demand for American food and farm exports in high-potential markets around the globe. New grant programs can vary slightly from existing programs and may have different requirements to be mindful of. With that in mind, our team wanted to share these grant management best practices that can help recipients reap big rewards.

Last October USDA Secretary Vilsack authorized $1.2 billion in Commodity Credit Corporation funding to help U.S. exporters expand their customer base beyond traditional and established markets, focusing on regions such as Africa, Latin America, the Caribbean, and South and Southeast Asia, where consumer demand and purchasing power are growing. In May, some of this funding became reality for 66 US organizations who received a total of $300 million under the new Regional Agricultural Promotion Program (RAPP).

The Market Development team at BCI has tremendous expertise in securing federal grants under programs that have existed for numerous years and many of our products are eligible for funding under these grant programs.

Our experience with the new RAPP application process brought to mind some basic tips for the early stages of any new grant allocation that will allow recipients to hit the ground running and set themselves up for success throughout the grant’s lifecycle.

Step 1: Build a deep understanding of the grant agreement.

Most grant agreements include a list of important elements that are much easier to manage if planned for from the beginning. Not doing so can create difficult surprises later in the grant cycle.

  • Grant Timeline. Familiarize yourself with the grant timeline and set reminders for all important deadlines.
  • Reporting Requirements. This is usually spelled out in the Grant Agreement or Notification of Funding Opportunity (NOFO). We recommend reviewing your agreement to understand the required reports and ensuring there is a plan in place to track and share results.
  • Eligible Expenditures. Ensure that all expenses included in your project workplan and budget are eligible for funding and become familiar with any expenses that may have maximum established rates.
  • Travel requirement. Does your grant proposal involve travel? If it does, then it is important to establish which specific travel regulations apply. Requirements can vary between federal and state grants, and travel between states may include restrictions.
  • Reimbursements. Does the grant program reimburse recipients for expenses? If so, make sure that you understand the expectations for submitting a claim for reimbursement. Can reimbursement requests be submitted at any time, or are they allowed on a quarterly or semi-annual basis? If claims need to be submitted on a regular basis, it is best to set due dates that allow adequate time to collect all needed supporting documentation.
  • Matching Funds. What matching funds or contribution did you commit to in your application? It is best practice to:
    • Understand the required dollar amount.
    • Confirm what can count toward that total. Are cash expenditures the only option, or are in-kind contributions also allowed? What types of expenses or in-kind contributions are eligible?
    • How will your organization track this contribution? Does a tracking system already exist, or will it need to be developed?

Step 2: Prioritize finding contractors and setting expectations.

Contractors and in-country representatives can be important partners on grant projects. If you plan to utilize outside support, it is important to thoroughly understand all requirements under the grant program for hiring contractors.

  • RFPs. It is common for grant programs to require a competitive bidding process when hiring contractors, but that isn’t universal. If an RFP is required, its distribution should be a top priority. The process can take from a few weeks to a month or longer, depending on the stakeholders involved. Delaying this process will slow the rollout and kick-off of implementing grant-funded activities.
    • The Office of Management and Budget sets out guidelines for contracting. Ensure your process meets the current requirements as well as any grant-specific requirements specified in your agreement or the grant regulations.
    • It is important is to document the RFP process as much as possible and include information on your organization’s internal policies, strategic priorities, and justification for the final decision.
  • Contractor Fees and Responsibilities. Once a contractor is selected, the contract should outline the following:
    • Agreed upon fees, budget, and scope of work
    • Meeting and communications expectations
    • Invoicing guidelines and requirements
    • Key Performance Indicators (KPIs)
    • Reporting requirements

Step 3: Schedule a kick-off meeting.

Once contractors have been selected, we recommend conducting a kick-off meeting. With all stakeholders at the table, it is good to reiterate the program motivations, planned activities, and goals to ensure a unity of purpose across all shareholders.

  • A kick-off meeting is an excellent forum to provide detailed guidance on the specific regulations relevant to the program including:
    • Travel guidelines
    • Reimbursement requirements (timelines and back up documentation)
    • Reporting timelines

Step 4: Plan for extra diligence during the initial months of your grant project.

Build time in your project workplan for extra diligence during the first 3 to 6 months of your timeline to help ensure your contractors and representatives understand expectations. This will save time in the long run, and can help avoid unnecessary questions or misaligned expectations.

  • Work with your contractors constantly. A healthy working relationship with contractors will help to smooth out the inevitable bumpy bits as your grant project progresses. And, if you see something wrong, you can catch and correct it early.
  • Double check reimbursement documents. During the first few months of your project, make sure that all documentation requirements for reimbursements are met and don’t hesitate to withhold payment from contractors who have not provided proper documentation until adequate backup is received.

Please don’t hesitate to reach out to BCI’s Market Development team with questions or for more information about grant applications, or to discuss potential grant strategies. Contact Sarah Gelpi at sarah.gelpi@bryantchristie.com.