Public sector organizations and government entities face several challenges in managing projects and grants, needing a systematic approach to ensure efficiency, compliance, and effective cost allocation. Oracle Projects Portfolio Management (PPM) offers a comprehensive solution for sponsored and non-sponsored projects to track costs, structure processes, and manage assets. This article is a detailed guide on how to make the most of Oracle PPM, covering everything from cost collection to project-to-asset transitions.

Understanding Funding Sources and Compliance in Public Sector Grants

Grants in the public sector come from various funding sources, each with its own set of rules and compliance requirements. This makes it important to understand these sources for effective project management, fund allocation, and regulatory standards compliance, also helping organizations take initiatives of the projects that align with the funding guidelines and their goals.

Typical Funding Sources:

1. Federal and State Grants: These grants fund research, infrastructure, and public services, typically offered to universities, government agencies, and public institutions.
2. Consortium and Partnered Grants: These cooperative awards share funds and duties among several groups, such as in public-private development initiatives or cooperative research.
3. Private and Institutional Grants: Private foundations or institutional contributors fund public sector initiatives that emphasize scientific research or social welfare.
4. Specific Funding Programs: Government-run initiatives that provide specialized financial support to particular industries including workforce development funds and NIH research grants.
5. Mandatory Departmental Budgets: Each year, departments receive designated funds for essential projects in areas like transportation, healthcare, and education, based on national priorities.

Key Compliance Requirements

1. Terms & Conditions of the Grant: These guidelines govern how funds must be used, ensuring proper financial and operational practices.
2. Regulatory Reporting: To maintain openness and comply with legal obligations, organizations must regularly submit reports on the distribution and use of funds.
3. Cost Allocation Standards: Direct and indirect expenses must be kept distinct to guarantee equitable fund distribution and regulatory compliance.
4. Audit and Financial Accountability: Regular audits to verify financial records, authenticate spending, and make sure projects achieve their intended goals are a part of it.

Step-by-Step Flow Government Grant Process Flow

A project’s success depends on each phase of the structured framework that governs the government grant process. An overview of the key steps, from proposal submission to execution and completion, is given below:

1. Pre-Award/Planning: Initial planning and scoping, including gathering requirements, feasibility studies, and preliminary budget preparation.
2. Project Requests and Approvals: Formal proposal submission for funding and receiving council approvals based on feasibility and priorities.
3. Award and Proposal Process: Project approval leads to funding awards and finalizing agreements, including terms, conditions, and reporting expectations.
4. Project Execution and Funding Management: The project is carried out with cash control measures and regular financial tracking to prevent overspending.
5. Ongoing Lifecycle Monitoring: Continuous oversight ensures the project adheres to goals and budget, with adjustments made as necessary.
6. Final Closeout and Reporting: After project completion, submit reports to funders, close the grant, and ensure all compliance and audit requirements are met.

Best Practices to Structure Different Project Models, Processes and Billing in PPM with Grants

Managing a grant-funded project isn’t about tracking progress, but handling billing, staying compliant, and keeping finances transparent. Here are some best practices for structuring project models and handling grant billing are:

1. Define Project Models: Create templates for different project types and establish Work Breakdown Structures (WBS) to manage tasks and resources to ensure projects are organized and tracked efficiently.
2. Billing Automation and Milestone-Based Payments: Automate invoicing based on deliverables and align billing with grant payment terms. This ensures timely payments and helps maintain cash flow stability.
3. Financial tracking and compliance monitoring: Conduct periodic reviews of financial records and use automated methods to monitor adherence to grant requirements. This helps avoid inconsistencies and guarantees compliance with requirements.

Accurate Cost Collection for Sponsored and Non-Sponsored Projects

Sponsored projects are externally funded and require strict compliance with terms and reporting, while non-sponsored projects are internally funded and focus on organizational priorities. Because of this, identifying the project type early on is essential to establishing precise cost collection.

Steps for Cost Collection

1. Set Up Project Parameters: Define the project type (sponsored or non-sponsored), funding source, and objectives.
2. Track Time and Expenses: Use automated tools to capture labour, material, and operational costs. Project team members should submit time reports and expense claims regularly for prompt review and approval.
3. Use Allocation Rules: Establish allocation rules to divide indirect costs, such as overhead, among tasks or funding streams for projects with shared costs or several funding sources.
4. Monitor and Balance Expenses: Examine financial records on a regular basis while comparing actual spending with the project’s projected and budgeted costs to find discrepancies.

Payroll Processing in Public Sector Grants

One of the most critical requirements in government grants is integrating payroll with project funding while bypassing traditional labour distribution methods.

Key Considerations for Payroll Processing

1. Assign payroll costs to grants or projects without using traditional labour distribution methods.
2. Ensure timely and accurate payroll cost tracking for efficient fund disbursement.
3. Keep clear records for audits and compliance verification.

For example, In federally funded research projects, employee salaries and benefits can be charged directly to grants based on time-tracking systems, ensuring compliance with cost allocation rules, as payroll expenses are accurately documented and aligned with the project’s funding terms.

Project Capitalization and Transitioning to Assets

Projects in the public sector often create an intangible asset like software platform or a tangible asset like new facility. Here are some tips to ensure a smooth project-to-assets transition:

1. Set asset categories early: Set asset categories, tags, and depreciation schedules during planning to avoid unnecessary adjustments later.
2. Perform regular cost audits: Do regular audits to verify that all eligible costs are accurately recorded and categorized.
3. Use automation tools: Automate processes with the help of Oracle tools, cutting down manual effort, minimizing errors, and ensuring faster, more accurate asset tracking.
4. Integrate with asset management systems: Integrate Oracle PPM with asset management systems for seamless tracking and reporting from project completion to ongoing asset maintenance.

Conclusion

Partners and Associates at Quantisage has been helping with Digital transformation projects for over 25 years. We are dedicated to making the transitions as seamless as possible. With our comprehensive services, from assessment and planning to training and support, we ensure that our clients achieve the results and capabilities that drive their business forward.

Contact us today to learn how we can transform your Project and Grants processes and revolutionize your financial processes with our expertise in Oracle PPM and Grants cloud solution.