What is a grant?

If you’re a non-profit organization and you are at least partially funded by grant money, then you are subject to accountability to the funding source that awarded you the grant.  

A grant is an award of financial resources, or funds, by a funder, or grantor -- such as a government entity (local, state, or federal), a foundation, or another non-profit -- to a grantee -- usually an organization such as a nonprofit or educational institution.  A grant does not have to be paid back, but there are usually spending and reporting guidelines that the grantee must abide by.  

The grant agreement may require that the grant money be used for specific programs (e.g. Early Childhood Center, Afterschool Program, Senior Housing, or Counseling Services.)  A program can be funded by one or more grants.  Grant agreements may also require the submission of regular reports to prove compliance with the grant requirements.  A government entity may also perform scheduled or unscheduled audits to ensure compliance.

In order to prove compliance to grant funders and be ready for an audit, you may need to keep track of employees' time spent across grants or programs.

Although you may already have a Time and Attendance system to keep track of employees' hours worked, they are not designed to allocate salaried employees' actual time to specific grants.  Instead they allow for a guesstimate through fixed allocations, leaving you to rely on spreadsheets or manual calculations for accurate time and effort reporting, which can be unreliable and time-consuming to manage.

Example of a salary allocation scenario:
  • Employee charges 84 grant hours and 16 vacation hours in the semi-monthly pay period:
    • 20 hours Grant 11111
    • 40 hours Grant 22222
    • 24 hours Grant 33333
  • Employee’s pay period salary is $2000

How can IDI help?

IDI can automate your time-consuming processes and help prevent audit anxiety!  

Our Time Bank™ Salary Allocation solution is designed for salary exempt employees that work over or under standard pay period hours and need to have their earnings allocated proportionally across different labor codes worked (e.g. department, program, project, grant, fund).   This Time Bank solution also has the flexibility to allocate the exempt employee’s PTO earnings proportionate to the worked time labor distribution or to a fixed account.  

The solution can be tailored to reallocate employee hours instead of earnings and also accommodate different allocations for non-worked time (e.g. allocate PTO in same proportions to grants as worked time).

When Time Bank is run at the end of the pay period, it retrieves the time and labor information from the time system and then determines worked vs. non-worked earnings, determines percentage worked by grant in the pay period, calculates worked earnings by grant, calculates non-worked (PTO) earnings by grant, and creates a file with the results for import into payroll.

With the click of a button, Time Bank reads the earnings from the time and attendance system, performs the allocations, and the results are passed to payroll with the accurate details needed for reports to government and other funding sources.

Time Bank can be further enhanced with solutions to meet the following needs:

OT / PTO Redistribution, or allocating non-exempt/hourly overtime or paid time off by percentages worked -- reassigning employee overtime or PTO hours by labor codes worked (instead of to the grant when 41st hour occurs in the week).

Grant Budgeting and management tool -- add on GrantAlytics, the only grant budgeting and management solution fully integrated with your time and payroll modules with dashboards, reporting, and other tools so you can quickly gain clarity on how each grant is performing and why with actual data from your time and payroll systems, not estimates, so you can take corrective action as well as justify through reports to your funding sources that grants are performing as expected.  Features include non-labor expense import capability and milestone and outcomes tracking.

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ADDITIONAL RESOURCES:

IDI Non-Profit Solutions Video

IDI Non-Profit Solutions Blogs

GrantAlytics Overview

GrantAlytics Video