The True Cost of Grants: What Every Municipality Should Know

1️ Indirect Costs

Even when a grant covers direct project expenses, indirect costs (administration, utilities, overhead, technology, etc.) often remain. If these aren’t reimbursable, the grantee may need to absorb them.

2️ Compliance Requirements

Grants come with federal, state, or agency-specific rules. Procurement processes, labor standards, environmental reviews, and equity reporting can add layers of administrative work — and risk if not handled properly.

3️ Reporting & Monitoring

Quarterly or annual performance reports, financial audits, and data tracking take significant time. Without dedicated staff or systems in place, these obligations can overwhelm departments and jeopardize future funding.

✅ The key takeaway: Winning the grant is just the beginning. Municipalities should treat grant funding like any other strategic investment by planning for both the dollars that come in and the resources required to manage them responsibly.

At B&A, we help communities not only secure grants, but also navigate the compliance and reporting landscape to ensure long-term success.

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