Post-Award Grant Management

The grant agreement (also called a grant letter, funding agreement, or contract) is the legal document setting out the terms of your award. Read it carefully before signing and ensure you understand every condition. Key clauses to look for include: the grant amount and any payment schedule; eligible and ineligible expenditure; the project start and end dates; reporting requirements and deadlines; clawback conditions; monitoring visit provisions; data sharing and publicity obligations; and the process for requesting changes.

If anything in the agreement is unclear or seems unworkable, raise it with your funder before signing. Most funders are willing to clarify language or make minor adjustments before the agreement is executed. Once signed, you are bound by its terms, and failure to comply can result in grant clawback even if your project has delivered excellent outcomes. Do not sign an agreement you do not understand or cannot comply with.

Note the eligible expenditure period — the window during which costs can be incurred against the grant. Costs incurred before the start date or after the end date are typically ineligible regardless of how relevant they are to the project. Ensure your project plan and procurement timeline align with the eligible expenditure period.

Maintain a dedicated project cost code or ledger for each grant. All income and expenditure relating to the grant should be posted to this code, making it simple to produce financial reports and respond to audit requests. Do not mix grant funds with other income in a general account unless the funder explicitly permits this.

Keep original evidence of all grant expenditure — invoices, receipts, payroll records, bank statements, and timesheets for any staff time charged to the grant. Many grant agreements require you to retain records for five to seven years after the project ends, and some funders (including HMRC for R&D credits) can audit claims up to four years or more after submission. A structured filing system — whether physical or electronic — saves enormous time during monitoring visits and audits.

Submit financial claims and reports on time. Late claims delay grant payments and can signal poor management to funders. If a deadline cannot be met, notify your funder in advance and agree an extension. Most funders are understanding about genuine difficulties provided you communicate promptly and professionally. Silence or missed deadlines without explanation are much more problematic.

Projects rarely run exactly as planned. Staff leave, costs change, timelines slip, and priorities shift. Most grant agreements include a change request process allowing you to formally request variations to the agreed project plan, budget, or timeline. Always use this process — do not make significant changes without funder approval, even if you think the change is clearly beneficial.

Common changes requiring funder approval include: budget virements above a certain threshold (typically 10–20% of a budget line); changes to key project outputs or milestones; delays to the project end date; changes to key personnel; and significant changes to the project methodology. Submit change requests as early as possible — last-minute requests are harder to approve and may be refused.

Clawback — the requirement to repay grant funds — most commonly arises from: undeclared changes to the project; ineligible expenditure claimed in error; failure to achieve agreed outputs without prior discussion; misrepresentation of the project or organisation; and financial irregularities. Keeping your funder informed, submitting accurate claims, and using the change request process diligently are the most effective ways to avoid clawback. If a clawback demand is issued, seek specialist advice promptly — disputing the amount or negotiating a repayment plan is often possible.