When the Grant Falls Short: Managing Missteps and Mismanagement in School Funding

Even the most well-crafted grant proposals can falter once the funds hit the ground. Whether it’s due to district turnover, unclear contractual language, or year-end account consolidation, too often, the impact of funding is diluted—not for lack of vision, but for lack of follow-through.

Here’s what happens, why it matters, and how we can fix it.

When the Team Changes, the Plan Often Does Too

One of the most overlooked challenges in grant-funded work is leadership turnover. A new superintendent, finance officer, or program director can disrupt the implementation process simply because they weren't part of the planning. Priorities shift, familiarity with the original intent disappears, and in the absence of clear onboarding documents, grant deliverables are quietly deprioritized.

Solution: Include a sustainability and transition clause in your grant proposal and contract. Make sure it outlines not just the deliverables, but the roles, timelines, and non-negotiables. Grant administrators should also request a copy of the district’s continuity plan—if one even exists.

Year-End Consolidation Can Wash Away Impact

Districts often consolidate accounts at the end of the fiscal year, folding unused or unspent funds back into general budgets. This process may be well-intentioned, but it creates a major accountability gap: funders lose visibility, and grantees lose track of earmarked dollars.

Solution: Use contract language that clearly identifies funds as non-transferable or project-specific, even after June 30. Require year-end reporting that matches fund disbursement to line-item execution—not just aggregate totals.

Be Precise: The Power of Language in Contracts and Grants

A vague grant proposal is a risky grant. Avoid phrases like “as needed” or “to be determined” when describing budget use. Instead, spell out intended impact, key personnel, and spending benchmarks. Contracts should support this with funding release conditions tied to milestones, not calendar dates alone.

Sample language to consider:

"Funds will be released in three phases, contingent on documentation of instructional hours, equipment purchase receipts, and professional development logs tied to the outlined scope."

Also, encourage districts to require memo-level approvals before shifting grant use across categories—especially when staffing changes occur mid-year.

Non-Interest Bearing Accounts and Why They Matter

Grant funds are often stored in non-interest-bearing accounts to meet compliance requirements—but that doesn’t mean they should go unmonitored. Without active tracking, even modest grants can sit idle for months, especially during turnover or vacation cycles.

Best practice: Set monthly or quarterly check-ins between the grant manager and fiscal officer. Implement simple tracking tools—even a shared Google Sheet can go a long way in making sure funds don’t go dark.

Takeaways for Funders and Districts Alike

If you’re a funder: ask for clarity and build expectations into your contracts. Don’t just ask “what will you do with this money?”—ask “what will you track, when, and how will it be reported back?”

If you’re a district leader: prepare for turnover. Build continuity into your grant onboarding process. Make sure your team knows what was promised, to whom, and by when.

Grants are promises—not just between a funder and a district, but between a school system and its students. Let’s treat them like it.

Grant Accountability Addendum

Funders’ Checklist: Building Stronger Grant Contracts

Use this checklist when reviewing or drafting contracts to ensure clarity, accountability, and continuity:

• Does the proposal specify how each dollar will be used by category (personnel, materials, PD, etc.)?

• Are funding disbursements tied to completed actions (e.g., PD delivery, equipment receipt) instead of calendar dates?

• Does the contract state that funds cannot be consolidated or reassigned without written approval?

• Is there a clause outlining continuity of implementation in the event of turnover?

• Are monthly or quarterly updates required, and is the reporting format standardized?

• Will the final report tie expenditures directly to each grant objective?

• Does the contract specify use of a non-interest-bearing account with active tracking?

• Is there a shared digital folder or platform where receipts, PD logs, and updates are stored collaboratively?

Grant Implementation Timeline: Year-Long School District Cycle

This sample timeline shows where grants can fail—or flourish—depending on how they’re timed against district operations:

MonthDistrict ActivityGrant Strategy ConsiderationsJuly–AugustBudget rollover; admin turnover; hiring freezesOnboard new leaders; confirm alignment; update point-of-contactSeptemberNew initiatives launch; PD windows openInitiate first funding release if kickoff milestones are metOctoberEnrollment stabilization; data collection beginsFirst checkpoint report due; evaluate implementation fidelityNovemberGrant deliverables midpointMid-cycle spending review; make adjustments if timelines slipDecemberEarly planning for next budget yearFlag remaining grant balances; prep for rollover if contract allowsJanuarySemester change; staff reallocation risksReconfirm use of funds with key personnel; check tracking complianceFebruaryFederal/state compliance reviewsEnsure contract milestones are documented and reportableMarch–AprilTesting window; hiring season beginsAvoid program launches; instead, prepare year-end impact reportMayTransition prep; high staff turnover riskConduct full reconciliation; set up handoff documentationJuneAccount consolidation; budget close-outSubmit final report; trigger clawback provisions if necessary

Sample Grant Clause Language: Set Clear Expectations

Purpose: Use or adapt the following clause examples in your contracts or grant proposals to safeguard against mismanagement and shifting priorities.

A. Milestone-Based Fund Disbursement
Funds shall be disbursed in three equal installments upon the grantee’s submission of deliverables aligned with:
(1) project launch and stakeholder alignment documentation,
(2) mid-term training execution report,
(3) final implementation summary and budget reconciliation.

B. Fiscal Compliance and Account Use
All grant funds shall be deposited in a non-interest-bearing account that is segregated from general district operating funds. Quarterly financial reports must show line-item usage aligned to the approved grant budget.
Unused funds may not be rolled into general operating budgets without written consent from the funder.

C. Turnover and Continuity
Grantee agrees to maintain implementation continuity regardless of staffing changes. In the event of leadership transition, an updated point-of-contact and a continuity plan must be submitted within 14 days to avoid disruption of funding flow.