Objectives

Upon completion of this course, participants will be able to:

• Apply the core principles of fund accounting and distinguish them from for-profit accounting.
• Manage the entire **grant lifecycle**, from pre-award budgeting to post-award reporting and closure.
• Properly classify and track transactions based on various **restriction types** (permanent, temporary, without restriction).
• Design a chart of accounts (COA) and a general ledger structure that supports granular fund tracking.
• Prepare accurate and timely financial reports that meet the specific requirements of various grantors and government bodies.
• Ensure compliance with key regulatory standards (e.g., Uniform Guidance, specific donor covenants).
• Develop and implement robust internal controls for grant expenditures and fraud prevention.
• Master the calculation of indirect cost rates and their compliant application to grant budgets.
• Manage the grant close-out process, including final reconciliations and audit preparation.
• Utilize accounting software to facilitate effective grant tracking and reporting.

Target Audience

• Accountants and Financial Managers in Non-Profit Organizations
• Finance Staff in Governmental Agencies and Educational Institutions
• Grant Managers and Program Directors
• Auditors specializing in non-profit and governmental sectors
• Budget Analysts and Compliance Officers in grant-receiving entities
• Fundraisers and Development Directors needing to understand financial implications
• Board members and Oversight Committee members of non-profit organizations

• Case studies on compliance failures and their impact on funding loss (e.g., Uniform Guidance violations)
• Interactive workshops designing a fund-based Chart of Accounts structure
• Group activities simulating the calculation and application of an Indirect Cost Rate (ICR)
• Hands-on exercises preparing a grant-specific financial report and reconciliation
• Expert-led discussions on navigating the complexity of various donor requirements
• Role-playing scenarios for managing a conversation with a grant auditor or a program manager

Unit 1: Fundamentals of Fund Accounting and the Grant Lifecycle

• Understanding the concept of the **fund entity** and the focus on stewardship
• Differentiating between Net Assets with Donor Restrictions and Without Donor Restrictions
• Identifying and accounting for permanent, temporary, and programmatic restrictions
• Applying the modified accrual basis (governmental) vs. full accrual (non-profit)
• Designing a Chart of Accounts (COA) for effective fund and grant tracking
• The unique structure of the Statement of Financial Position and Statement of Activities

• Pre-award phase: proposal budgeting, cost allowability, and negotiation
• Award acceptance and the formalization of grant agreements and contracts
• Post-award phase: execution, monitoring, and reporting
• The grant close-out process and final financial reconciliation
• Identifying and managing key compliance milestones and deadlines
• Understanding the role of the program staff versus the finance staff

Unit 2: Budgeting, Cost Allocation, and Compliance

• Developing a detailed, line-item budget aligned with the grant proposal
• Identifying and documenting direct costs vs. indirect costs
• Understanding cost allowability, allocability, and reasonableness (e.g., Uniform Guidance)
• The process of calculating and negotiating the **Indirect Cost Rate (ICR)**
• Budget tracking, re-budgeting, and securing approval for budget modifications
• Managing personnel effort reporting and time allocation compliance

• Overview of key compliance frameworks (e.g., FASB, GASB, OMB Uniform Guidance)
• Establishing internal controls to prevent misuse of restricted funds
• Segregation of duties in expenditure approval, disbursement, and reporting
• Managing procurement rules and contract compliance for grant-funded purchases
• Dealing with program income, interest earnings, and other grant-related revenues
• Best practices for documentation and record retention for audit purposes

Unit 3: Grant Accounting and Reporting

• Proper accounting for conditional vs. unconditional pledges and contributions
• Recognizing grant revenue over the life of the award and expenditure method
• Tracking expenses to the fund, project, and activity level (e.g., using project IDs)
• Accounting for in-kind contributions and donated services
• Managing interfund transfers and correcting accounting errors
• Reconciling financial system records with external grant reports

• Preparing custom financial reports required by government agencies and foundations
• Understanding the importance of narrative reporting alongside financial data
• Key components of a standard grant financial report (e.g., cumulative expenses, balance remaining)
• Managing reporting frequency and ensuring timely submission
• Preparing the Schedule of Expenditures of Federal Awards (SEFA) for the Single Audit
• Techniques for clear and transparent communication of financial status to program managers

Unit 4: Auditing and Advanced Fund Management

• Understanding the purpose and scope of the Single Audit (for federal funds)
• Preparing the organization for an external grant-specific or Single Audit
• Common audit findings and strategies for proactive remediation
• The role of the auditor in testing major programs and internal controls
• Managing the audit process: documentation, timelines, and response to findings
• Post-audit follow-up and corrective action plans

• Managing endowments, quasi-endowments, and investment accounting for funds
• Financial modeling for long-term sustainability and funding diversification
• Accounting for collaborative grants and sub-recipient monitoring
• Strategies for integrating the budget, grant management, and accounting systems
• Financial aspects of fundraising and planned giving accounting
• Ethical considerations in fund reporting and transparency