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Grant Reporting - Ethics & Transperancy

We're at the end of a grant and have 25k left over. A manager suggested we bill an additional portion of our Comms Manager's salary to the Comms/Marketing expense line, and then issue another invoice for a pre-payment to contractor/deposit into vendor account for about 10k for troubleshooting costs for next 3 months.

Is this standard grant reporting practice? It seems to lack transparency and is untruthful, unless we note these additions and explain them in the notes.

I would appreciate input as the report is due tomorrow and I'm pretty sure it is wrong and we can not do that.

Instead I would search to see if we missed any actual expenses that should have been charged to it.

Thank you.

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

You are right. You should NOT do that. (You can, but you should not). It is easy to do some creative stuff.

First, I would do what you said....go through the expenses and see if you have missed anything.

Second, I would go through the grant letter again and see if there are clauses/provisions pertaining to left over money.

Third. if there are no provisions, I would write a letter to the grantor and tell him about the left over money/budget (and maybe boast on how you utilized the limited $$ to achieve the goals of the grant) . This is also the time where you can tell him other organizational needs.

Good ethical practices would go a long way in your future fundraising activities and the reputation of the organization....and also it's officers.

Anonymous
(Founder) |

That's what I thought - Thank you Emerson! We are going to report that we're under budget and file for an extension - per the contract.

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