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SAP Solution Brief

Public Sector

GRANTS MANAGEMENT
IN THE PUBLIC SECTOR
An efficient grants management For public sector organizations struggling to obtain funding,
process is vital for organizations there’s a lot at stake.
involved in grant or sponsorship
Billions of dollars are available to grantee organizations from
programs. The SAP® Grants
grantors in government, private, and nonprofit sectors. But for
Management application meets both grantors and grantees, the grants process is often inefficient
the needs of grantors giving and cumbersome. Critical financial and business information
financial assistance and grantees is too often stored in disparate systems in multiple locations,
hampering any attempt at automating the requisite process
competing to receive it by offering
steps, document status, and work tasks. Information cannot be
tools to manage a wide range of integrated into a single view, and users must navigate multiple
grant programs and automating systems and extract and compile key data manually. This drives
the grants management life cycle. up administrative costs, reduces productivity, and slows
SAP Grants Management im-
customer service.

proves access to grant services,


Grantors have unique challenges. The public demands trans-
streamlines business processes, parency and accountability for how they manage funds and
and reduces the cost and com- what productive outcomes result from awarding those funds.
plexity of the grants environment. They strive to offer customer-oriented, grant-payment processes
that provide common access to grant-assistance programs and
information for stakeholders. In addition they must ensure all
transactions and data are auditable. Too often, they have to
accomplish this with no single view of the grantee because the
data is scattered and incomplete and access to the grantee’s
information is restricted.
For grantees, the variety of ways in which sponsors process appli- to grant services by supporting Web-based processing of grants,
cations is complex. Sponsors have different requirements for how claims, and change requests as well as automated application
their funds may be used and how to show accountability. Grantees workflow for approvals and notification.
often use multiple accounting methods to manage these funds,
and many organizations have developed expensive, customized, Complemented by the SAP Records Management application and
in-house software to address the audit and monitoring require- the case management functionality that comes with the SAP for
ments of the grantor. Public Sector solution portfolio, SAP Grants Management helps
organizations manage cases, documents, and records – in both
To streamline the grants process for both grantors and grantees, paper and electronic formats – to support the file management
SAP offers the SAP® Grants Management application, which ad- and documentation requirements of the grant process. The soft-
dresses the delivery, administrative, and compliance require- ware also delivers robust reporting functionality through the SAP
ments of grant program management. NetWeaver® Business Intelligence (SAP NetWeaver BI) component,
which helps organizations measure and improve performance.
Integrated Case Management SAP Grants Management improves the effectiveness of the fol-
The SAP Grants Management application includes comprehen- lowing essential business processes:
sive functionality that supports the management of public finan- • Program management – Keeps the grant process transparent
cial assistance programs by specifically addressing the following to facilitate internal and external accountability and controls,
needs of grantors: defines how granting activities are managed and funded, and
• Grantees demand easy-to-use, easy-to-understand govern- how the grants are delivered to the grantee.
ment services and programs, while grantors want better ways • Application process – Easily manages application processing,
to interact with grantees. eligibility assessment, and award amounts, helping the poten-
• Grantors want enhanced transparency to be sure that grantee tial grantee receive information about the grantor program
organizations use their budgets responsibly and can provide and apply for a grant either online, by telephone, or by letter.
measurable results. • Grantor agreement – Captures the terms and conditions of
• Hampered by limited budgets and finite workforce resources, the awarded grant and triggers billing and payment activities
grantors need to be able to deploy people and programs when an agreement is finalized.
efficiently and cost-effectively. • Change request – Manages changes to a grantor agreement
• Because of tightened regulations for security, governance, and after the agreement has been approved and released, evaluates
data protection, grantors need new, appropriate security and important changes to the agreement, and generates new ver-
risk mitigation strategies. sions of the agreement as PDF documents for internal tracking
and external processing.
SAP Grants Management functionality for grantors supports a • Claims management – Provides a Web-based claim form for
broad range of business processes including program definition, a specific agreement with which a grantee can submit requests
application, assessment, agreement, claim, change request, grant for payment or reconciliation of payment. Claim items are
payment, monitoring, and analysis. The software improves access verified manually or automatically for eligibility and availability,
with checking executed against the agreement. Claims are then
approved, released, and paid.
• Case management – Provides a central location for all docu- SAP Grants Management supports all business processes a
ments, data, and transactions related to a particular grant appli- grantee must engage in, starting with preparatory activities prior
cation and its follow-on processes. Grantor cases can be linked to receiving funds to the accounting and reporting activities re-
to other cases based on program or grantee, or created on an quired after grants are awarded. With SAP Grants Management,
exception basis for audit purposes. grantees have support for the following activities:
• Monitoring – Stores and quickly retrieves project status • Prepare grant applications – Support all preliminary
reports, financial statements, and performance status reports activities using centralized document management and
that detail the efficiency and effectiveness of programs. Meetings built-in workflows.
and site visits can be arranged, recorded, and integrated into • Record sponsor’s details – Record the attributes unique
workflows to track grantee activities. to sponsored program management, such as budgeting, cost
• Analysis – Performs standard queries that support application, sharing and matching, billing, and indirect cost and overhead
agreement, claim, and program analysis as well as full life-cycle calculations.
analysis. Customized reporting is also supported. • Execute the awarded grant – Manage sponsor receivables,
standardize business processes across all organizational units,
Capture All Available Program Funding for Those and automate the budget process. An agency’s financial
Seeking Grants administrators can manage and control grant transactions
Grantee organizations want solutions to help win sponsored and postings and perform availability checks to ensure that ex-
program funding in a competitive environment where other penditures comply with agency budgets.
organizations are vying for the same financial assistance. SAP
Grants Management is the ideal management software for Improved Efficiency, Reduced Costs
grantees because it helps them overcome the following challenges: The SAP Grants Management application creates an integrated,
• Address disparate sponsor requirements for the application streamlined grants management life-cycle process that delivers
and administration process the following benefits for both grantors and grantees:
• Surmount reporting difficulties caused by discrepancies • Increased cost-efficiency due to accurate revenue and expenses
between sponsor and internal fiscal cycles planning, careful budgeting for internal and external funding
• Identify inaccurate, outdated, or inconsistent financial data sources, and precise calculation of overhead costs
spread across various systems • Efficient, cost-effective deployment of people and systems to
counterbalance reduced budgets and a shrinking work force
Grantee organizations need a solution with an integrated ap- • Improved efficiency through having separate views of grantor
proach that enhances their chances for success and provides op- and grantee financial transactions and by associating grantor
portunities for support and collaboration among their colleagues. requirements to the grantee’s financial structures
The solution must also balance sponsors’ guidelines and compli- • Enhanced flexibility that can accommodate the different
ance requirements. Because SAP Grants Management creates a funding periods of grantee and grantor organizations and
unique view based on the sponsor requirements, grantees can stay different currencies
well-informed, enabling them to report quickly and accurately in • Better customer service by efficiently managing grant-related
response to their sponsor’s programs. documentation and transactions online and providing faster
access to relevant, high-quality, accurate data across multiple
channels
www.sap.com/contactsap

• Faster decision making enabled by access to real-time informa- To Learn More


tion, streamlined workflow, integrated business processes, and SAP Grants Management software is scalable for all sizes of public
standardized management practices sector organizations and can be used by any entity that gives or
• Greater regulatory compliance through increased visibility receives grants, funds, or pledges, such as educational and research
into all financial management and administrative functions. institutions, as well as by international, non-governmental, and
Managing public funds transparently contributes to fulfilling not-for-profit organizations and foundations.
legal regulations concerning security, governance, and data
protection. SAP for Public Sector helps more than 1,500 public sector organi-
zations connect silos of information to increase efficiency, make
Powered by SAP NetWeaver processes more transparent, and improve communication with
SAP Grants Management is powered by the SAP NetWeaver their constituents. SAP for Public Sector reflects best practices
platform. SAP NetWeaver unifies technology components into a garnered from SAP’s 30 years as the leading provider of enterprise
single platform, allowing organizations to reduce IT complexity resource planning solutions, with experience in more than 25
and obtain more business value from their IT investments. It industries in over 100 countries.
provides the best way to integrate all systems running SAP or
non-SAP software. For more information on SAP Grants Management and SAP for
Public Sector, visit our Web site at www.sap.com/publicsector/.
SAP NetWeaver also helps organizations align IT with their
business. With SAP NetWeaver, organizations can compose and
enhance business applications rapidly using enterprise services.
As the foundation for enterprise service-oriented architecture
(enterprise SOA), SAP NetWeaver allows organizations to evolve
their current IT landscapes into a strategic environment that
drives business change.

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