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Att;6.1.B. - Page 3 ADMINISTRATIVE POLICY NUMBER: EFFECTIVE: SUBJECT: Grant Management Policy Purpose To set forth an overall framework for guiding the City's use and management of grant resources. Goals 1. Set forth the importance of grant programs in accomplishing City goals and objectives. 2. Establish general concepts and framework for seeking and managing grant programs. 3. Identify roles and responsibilities in managing grant programs. 4. Set forth the City's policy in complying with Single Audit Act requirements. General Concepts and Framework 1. The City will aggressively pursue grant funding from federal, state and other sources, consistent with identified City goals and objectives. 2. Aside from entitlement grants (grants disbursed automatically on the basis of legally defined formula to all agencies that qualify for such), the City should focus its efforts on securing grants for capital improvements. This approach will allow the City to compete for projects we might not otherwise be able to afford while maintaining financial independence should future grant sources diminish. Grants for operating purposes may be considered on a case-by-case basis after careful consideration of the benefits of the program and the ongoing impacts on the City if grant funding is no longer available. 3. The City should avoid grants that fund "pilot" operating programs or short-term staffing enhancements to existing programs unless future funding sources are identified to cover the increased on-going costs. Taking on these programs could ultimately aggravate the City's fiscal position should the desire for the program remain once the grant funding is no longer available. 4. The City will only seek grants when sufficient staff resources are available or hire a consultant if needed to effectively administer the program in compliance with grant requirements and successfully perform the grant work-scope. 5. Indirect costs of administering grant programs will be recovered to the maximum extent feasible. 6. Operating departments have the primary responsibility for seeking out grant opportunities, for preparing effective grant applications and for successfully managing grant programs after they have been awarded. 7. Operating departments should develop a simple system that identifies potential grant funding availability in their functional areas. 8. Funds derived from grants are City funds and are to be expended in accordance with grant terms. 9. Federal cost principles: It is the City's policy to follow federal cost principles for federal awards as set forth in OMB Circular No. A-87 "Cost Principles for State, Local, and Indian Tribal Government." 1