Heaven Sent Community Services and Veterans Assistance
SOP-FIN-GM-001
Finance & Grant Management
This viewable HTML packet combines your finance and grant management SOP with practical compliance tools that staff may need for FEMA, HUD, HHS, Department of Labor, IRS, auditors, pass-through entities, and internal finance operations. It is structured to work as a readable web reference and a printable working packet.
Overview
SOP + federal readinessThis HTML packet is based on the HSCVS finance and grants SOP and expands it into a practical operating page that staff can actually use. It keeps the original structure, then adds agency-facing readiness material that is commonly requested during monitoring, audits, reimbursement reviews, drawdowns, payroll verification, and grant closeout.
Core SOP coverage
Purpose, controls, budgets, procurement, grant lifecycle, federal compliance, in-kind, disaster finance, payroll, reporting, audit, and records.
Purpose, controls, budgets, procurement, grant lifecycle, federal compliance, in-kind, disaster finance, payroll, reporting, audit, and records.
Agency-ready additions
HUD, FEMA, HHS, Department of Labor, IRS, Single Audit, SAM/debarment, subrecipient, and monitoring response tools.
HUD, FEMA, HHS, Department of Labor, IRS, Single Audit, SAM/debarment, subrecipient, and monitoring response tools.
Staff-use additions
Checklists, quick reminders, forms packet, printable blank sections, and a monitoring binder guide.
Checklists, quick reminders, forms packet, printable blank sections, and a monitoring binder guide.
Financial controls
Separation of duties| Transaction | Initiates | Approves | Executes | Records |
|---|---|---|---|---|
| Operating expense under $5,000 | Program Manager | Finance Manager | Finance Manager | Bookkeeper |
| Operating expense $5,000–$25,000 | Program Manager | CFO | CFO + CEO dual approval path | Bookkeeper / CFO |
| Operating expense over $25,000 | CFO | CEO | CEO + Board Treasurer | CFO |
| Grant expenditure | Grant Manager | CFO | CFO + CEO | Bookkeeper / CFO |
| Payroll | HR / Payroll Admin | CFO | CFO ACH authorization | Bookkeeper |
| Grant drawdown | Grant Manager | CFO | CFO in federal portal | Bookkeeper |
Dual-signature rule: Any check, wire, or ACH payment at or above $5,000 requires two authorized signatories. Blank signed checks are prohibited. Online banking credentials must never be shared.
Budget management
Annual planning and variance reviewAnnual cycle
- September: CFO issues budget request forms.
- October: program managers submit requests and projected revenues.
- November: CFO and CEO review draft; Finance Committee recommends changes.
- December: Board approves annual operating budget; grant budgets enter accounting system.
Variance escalation
- Unfavorable expense variance over 10% must be reported to the Board Finance Committee promptly.
- Revenue shortfall over 10% also triggers notice with corrective action.
- Year-to-date variance over 15% requires special Board attention.
Procurement
Competition and documentation| Method | Threshold | Requirements | Key records |
|---|---|---|---|
| Micro-purchase | Under $10,000 | No formal bidding; distribute equitably when possible | Receipt, business purpose, coding, PO if required |
| Small purchase | $10,000–$249,999 | Minimum three quotes | Quote record, justification, approval |
| Sealed bid / IFB | $250,000 and above | Publicly advertised invitation and opened bids | IFB, bid tab, Board approval, contract |
| Competitive proposal / RFP | Professional services over $250,000 | Published criteria and evaluation matrix | RFP, scoring, negotiation memo, approval |
| Sole source | Any amount | Written justification and executive approval | Sole-source memo and grantor approval when needed |
Federal procurement reminder: For federally funded vendors, staff should document SAM.gov debarment/suspension checks and any actual or apparent conflict-of-interest disclosure before award.
Grant lifecycle
Pre-award through closeoutPre-award
- Log opportunities in pipeline tracker.
- Confirm eligibility, registrations, and organizational capacity.
- CEO approval required before submission.
- Board notification required for large applications.
Award setup
- Create grant code and line-item budget.
- Load reporting deadlines into calendar.
- Set payroll allocations and match accounts.
- Log special conditions and responsible staff.
Active management
- Drawdowns should be based on actual documented costs.
- Financial and program reporting calendars must be maintained.
- Budget modification requests must follow award terms.
Closeout
- Reconcile final spending against approved budget.
- Submit final financial and performance reports.
- Resolve equipment disposition and return any excess advances.
- Archive records for retention.
Federal compliance
Common grant requirementsAllowability test
- Necessary for the program
- Reasonable in amount
- Allocable to the award
- Consistently treated under written policy
- Supported by source documentation
Unallowable cost red flags
- Alcohol
- Entertainment and social activities
- Lobbying
- Fundraising charged to federal grants
- Fines, penalties, bad debts, or image advertising
Single Audit trigger: When federal expenditures reach $750,000 or more in a fiscal year, an independent Single Audit is required and the reporting package must be submitted on time through the Federal Audit Clearinghouse process.
In-kind & match
Volunteer, goods, and fair value| Contribution type | Valuation method | Needed support | Federal match use |
|---|---|---|---|
| Professional services | Current market rate | Written confirmation and rate basis | Usually yes if the service would be allowable if purchased |
| General volunteer labor | Applicable volunteer/comparable local rate | Volunteer time sheet signed by volunteer and supervisor | Yes when directly supporting award objectives |
| Donated goods | Fair market value at donation date | Itemized receipt and acknowledgment | Yes if goods would be allowable on the award |
| Donated facility use | Comparable commercial rental rate | Usage log and rate support | Yes if used for the grant program |
| Federal funds from another award | Not eligible | N/A | No |
Disaster financial operations
FEMA and emergency response costs| Cost area | What to document | Internal control |
|---|---|---|
| Force account labor | Employee name, title, regular/overtime hours, rate, activity, dates | Daily sign-in/out and payroll support kept together |
| Equipment use | Equipment ID, operator, hours used, task performed, applicable FEMA rate | Daily equipment logs maintained by operations |
| Materials and supplies | Receipts, POs, inventory use, disaster relation | Link all purchases to incident activity |
| Contract labor | Contract, scope, procurement record, invoices, completion support | Maintain procurement trail even in emergencies |
| Donated resources | Volunteer hours, donated goods, equipment use, FMV support | Keep donation and usage logs by incident |
Emergency procurement note: Immediate life-safety purchasing can move faster during a declared event, but post-event reimbursement still depends on clear written documentation, approvals, and justification.
Payroll & labor compliance
IRS, DOL, and grant charging supportPayroll controls
- Every pay period must use actual hours worked, not budget estimates.
- Supervisor approval should occur promptly after pay period close.
- Grant-coded payroll must reconcile to timesheets and personnel activity support.
- W-2 and 1099 processes require W-9 support and classification review.
Department of Labor readiness
- Maintain job descriptions, payroll registers, timesheets, wage rates, and leave records.
- Keep contractor-versus-employee classification support.
- Retain overtime basis, pay schedules, and deduction authorizations.
- Post wage and labor notices where required and maintain training acknowledgments.
| Recurring payroll filing | Typical timing | What staff should retain |
|---|---|---|
| IRS Form 941 | Quarterly | Filed return, proof of payment, payroll summary, supporting registers |
| IRS Form 940 | Annual | Filed return, unemployment support |
| State unemployment filings | Quarterly | State reports and payment proof for each operating state |
| W-2 / 1099 issuance | Annual January cycle | Recipient copies, e-file confirmation, W-9 file |
Reporting & audits
Board, donors, grantors, auditorsMonthly internal reporting
- Profit and loss
- Balance sheet
- Cash flow summary
- Budget versus actual
- AP aging
- Grant status summary
- Payroll summary
Audit binder tabs
- Financial statements and trial balance
- Bank reconciliations
- Revenue support
- AP and AR support
- Payroll records
- Grant files and drawdowns
- Board minutes
- Tax documents and policies
Records retention
7-year policy and legal hold| Record category | Retention | Notes |
|---|---|---|
| Financial statements / audit reports / tax records / board records | Permanent | Keep digital and physical where required |
| Grant records | 7 years from closeout | Longer if litigation, audit, or agency hold applies |
| Payroll records | 7 years from payment date | Includes timesheets, PARs, returns, registers, W-2s, 1099s |
| Contracts | 7 years after expiration | Include amendments and procurement trail |
| Disaster records | 7 years after FEMA closeout | Incident files should stay grouped by project and declaration |
Legal hold rule: If litigation, inquiry, monitoring, audit, or investigation is pending, destruction stops until the hold is formally released.
Agency readiness
What federal agencies may ask forFEMA / disaster funding
- Incident-specific labor and equipment logs
- Procurement and contract support
- Source invoices, proof of payment, and cost summaries
- Project worksheet support and closeout files
- Disaster activity narratives and photographs when relevant
HUD / housing-related grants
- General ledger and grant ledger detail
- Source documentation for drawdowns and beneficiary support
- Procurement files and conflict-of-interest records
- Environmental, affordability, or file support if required by program design
- Board approvals, policy set, and retention files
HHS / ACF / other federal grantors
- SF-425 support
- Payroll and effort support
- Match documentation
- Subrecipient monitoring files if HSCVS passes funds through
- Performance reports tied to spending
Department of Labor / wage and hour
- Time records and payroll registers
- Worker classification support
- Policies on overtime, leave, and deductions
- Job descriptions and compensation records
- Required notices and acknowledgment records
IRS / public charity oversight
- Form 990 workpapers and filed returns
- Donation acknowledgment support
- Noncash contribution records and Form 8283 support
- Reasonable compensation support
- Governance records and conflict disclosures
Single Audit / monitors / pass-throughs
- Current SOPs and internal control documentation
- Schedule of federal expenditures support
- Corrective action plans and status updates
- Debarment checks, procurement files, and approval trails
- Subaward files, risk assessments, and monitoring notes
Staff quick-use tools
What staff may need day to dayBefore charging a grant
- Is it allowable?
- Is it in budget?
- Do we have the right code?
- Do we have source support?
- Does procurement match the funding rules?
Before paying an invoice
- PO or justification on file
- Receiving confirmation complete
- Correct GL and grant coding
- Program approval complete
- CFO approval complete
Before a monitoring visit
- Policies current
- Reports submitted
- Grant file complete
- Payroll and match support ready
- Corrective actions updated
Appendix forms in HTML
Blank packet for staff use
FIN-PO-01FIN-REC-01FIN-CC-01FIN-PC-01FIN-IKD-01FIN-VOL-TIME-01FIN-GRANT-PIPE-01FIN-GRANT-APP-01FIN-GRANT-SETUP-01FIN-GRANT-CLOSEOUT-01FIN-CAP-01FIN-RDA-01FIN-BUD-MOD-01FIN-SOD-01FIN-COI-01FIN-TRVL-01FIN-PAR-01FIN-FEMA-EQ-01FIN-FEMA-LBR-01FIN-ACK-01
FIN-PO-01 — Purchase Order
Requesting Department
PO Date
Vendor Name
Grant / Account Code
Estimated Cost
Approval Level
Description, quantity, business purpose, quote summary
FIN-REC-01 — Receiving Confirmation
PO Number
Date Received
Received By
Condition of Goods / Services
Items received, shortages, issues, confirmation
FIN-CC-01 — Credit Card Expense Report
Card Holder
Statement Month
Total Charges
Grant Code if applicable
Business purpose and receipt reconciliation
FIN-PC-01 — Petty Cash Record
Custodian
Date
Amount Disbursed
Balance Remaining
Business purpose, receipt number, replenishment notes
FIN-IKD-01 — In-Kind Donation Record
Donor Name
Date of Contribution
Grant Code if Match
Receiving Staff
Description, quantity, FMV per unit, total value, valuation method, support attached
FIN-VOL-TIME-01 — Volunteer Time Sheet
Volunteer Name
Program / Grant
Date(s)
Supervisor
Hours worked, tasks completed, rate basis, signature lines
FIN-GRANT-PIPE-01 — Grant Pipeline Tracker
Funder
Program Name
Deadline
Estimated Amount
Match Requirement
Decision
Eligibility notes and leadership comments
FIN-GRANT-APP-01 — Grant Application Approval
Funder
Application Amount
Population / Scope
CEO Approval Date
Capacity check, match source, reporting readiness, Board notice if needed
FIN-GRANT-SETUP-01 — Grant Setup Form
Grant Code
Period Start
Period End
Drawdown System
Match Tracking Account
Special Conditions Owner
Reporting deadlines, budget lines, payroll allocations
FIN-GRANT-CLOSEOUT-01 — Grant Closeout Checklist
Final expenditures reconciled; final financial report submitted; final program report submitted; property disposition completed; advances returned if needed; records archived; CFO signoff
FIN-CAP-01 — Corrective Action Plan
Finding Reference
Finding Type
Responsible Party
Target Completion Date
Finding summary, management response, corrective action, verification method, status
FIN-RDA-01 — Records Destruction Authorization
Document Category
Date Range
Retention Met?
CEO Authorization
Destruction method, certificate reference, legal hold review
FIN-BUD-MOD-01 — Budget Modification Request
Program / Grant
Current Line
Proposed Revision
Percent Change
Reason for change, grantor approval required, approval trail
FIN-SOD-01 — Separation of Duties Certification
Annual certification of who initiates, approves, signs, records, and reconciles for major transaction streams, with exceptions and mitigation plan.
FIN-COI-01 — Conflict of Interest Disclosure
Person Completing Form
Role
Vendor / Matter
Date
Nature of financial or personal interest, recusal action, review outcome
FIN-TRVL-01 — Travel Expense Report
Traveler
Trip Dates
Destination
Program / Grant
Mileage, lodging, per diem, airfare, business purpose, receipts checklist
FIN-PAR-01 — Personnel Activity Report
Employee Name
Reporting Period
Primary Grant / Program
Supervisor
Certification that payroll allocation reflects actual activity distribution
FIN-FEMA-EQ-01 — FEMA Equipment Use Log
Incident / Declaration
Equipment ID
Operator
Date
Hours Used
FEMA Rate
Activity performed and location
FIN-FEMA-LBR-01 — FEMA Force Account Labor Log
Incident / Declaration
Employee Name
Job Title
Regular Hours
Overtime Hours
Hourly Rate
Disaster task narrative, dates worked, supervisor verification
FIN-ACK-01 — Donor Acknowledgment Letter Template
Organization name and EIN; donation date; amount of cash or description of non-cash gift; statement regarding goods or services provided; signature block and mailing date.
Signature page
Approval and implementation| Role | Name | Signature | Date |
|---|---|---|---|
| Chief Executive Officer | Joseph Ryan | ||
| Chief Financial Officer | |||
| Board Chair | |||
| Board Treasurer | |||
| Finance Manager | |||
| Grant Manager |
Document owner: Chief Financial Officer. Review cycle: annual. Distribution: all finance staff, grant managers, program directors, and Board of Directors.