Accounting Services for Government Grants in Elk Grove, CA
Our Elk Grove tax accountants for government grants at Cook CPA Group offer a wide variety of accounting services to those with government loans and awards.
Government grants provide funding to people, organizations, projects, and programs to allow them to work on behalf of public causes. Government grants come with certain requirements that recipients must meet in order to obtain and keep this funding, which may be daunting for certain people and organizations. Maintaining the requirements of a government grant should not distract from work that benefits communities, which is why these groups can use the help of a licensed CPA. The Cook CPA Group’s accountants are eager to help recipients of government grants so that they can continue to do positive work. If you are the recipient of a government grant and would like help meeting the stipulations that come with the grant, get in touch with us as soon as possible.
The Difference Between Government Grants and Foundation GrantsGovernment grants are comparable to foundation grants in many ways, but there are still some major differences between the two. One major difference between government grants and foundation grants, besides using money from different sources, is that they work on different timelines regarding applications and the receipt of funds. However, the major difference between government grants and foundation grants is that government grants require financial recordkeeping and reporting, and they sometimes require cost-matching or cost-sharing. The government has the right to audit programs that receive government grants whenever they choose. People or programs that receive government grants must prove their intention to do work that benefits the public; they must demonstrate an understanding of the needs of the communities they work with. They may sometimes be required to match their services with similar organizations, or to show that they will have enough money to continue to do their work between grants.
Types of Government GrantsGovernment grants may be given in several forms: loans, awards, scholarships, fellowships, prizes, or program-related investments. Government grants cannot cover the cost of employee salaries or compensation and they cannot be used for payments to individuals for personal services; they may, however, be used to pay for asset acquisition or the reimbursement of certain costs. There are two categories that almost all government grants may be classified as: categorical grants and block grants. Categorical grants are given to people and organization for a specific purpose. Recipients may be required to match a portion of the funds that they are given though the grant. Categorical grants may be either project grants or formula grants. Project grants are given to recipients after the submission and acceptance of an application and are selected only if they meet certain criteria. Formula grants, on the other hand, are awarded based on a formula that determines how funds are divided between applicants. The other type of government grant is known as a block grant. This type of grant is intended to be used for a specific purpose and is given by the federal government to local and state governments. Frequently, there are guidelines that determine how the money should be used. Another type of grant is known as earmark grants, which are specified by the appropriations of Congress, but these are not commonly used today. Grant programs are offered by 26 different grant-making agencies and can fall into one of 20 different categories determined by the industry or field that they serve. These categories include agriculture, the arts, education, regional development, housing, social services and income security, transportation, and more.
Accounting Services for Government GrantsRecipients of government grants are required to perform certain analyses and may be subject to audits. An accountant that works with Cook CPA can help you or your organization provide all of the information necessary to acquire or keep a government grant. The most common services that Cook CPA Group accountants perform for recipients of government grants are:
- Expenditure analysis – Cook CPA Group accountants can help recipients of government grants keep track of how much money they spend in relation to their government grants. They can monitor where money from the grant is spent, the frequency of the spending, and the implications of spending for the grant.
- Financial reporting – Recipients of government grants are required to disclose the accounting policies that they abide by. They must also disclose any contingencies or conditions that have not been fulfilled.
- Auditing – Individuals and organizations that receive government grants may be audited once per year; if they receive more than $300,000 per year in funding, then the yearly audit is a requirement.