OSBM Grants FAQ
Find answers to the most frequently asked questions about OSBM-administered grants here. Don't see your question here? Email NCGrants@osbm.nc.gov.
Receiving Grant Funds - Pre-Award Questions
Please email NCGrants@osbm.nc.gov.
Please reach out to NCGrants@osbm.nc.gov and we will provide your upload link and put you in contact with the assigned grant administrator.
Please review our online Grants Database to locate the point of contact for your grant.
You will need to submit documents to both agencies. Please keep in mind that other agencies may have different requirements than the OSBM-administered grants.
Yes, your OSBM Grant Administrator will get notified when you upload new documents into the secure upload site. You are free to also email the OSBM Grant Administrator and encourage ongoing communication with him/her.
You will not be notified when the document is received by our staff. If you are concerned or want to discuss something that you have submitted, please contact your assigned OSBM Administrator.
Adobe digital signatures are fine. Digital signatures don't appear when viewing the pdf in ShareFile, but they do show up when downloading the document. Signatures will be visible when the file is downloaded. No additional notations or comments online are needed as OSC will download the file automatically.
Yes, you can use your current Conflict of Interest policy. It should:
- Cover potential conflicts involving organization’s management and board or governing body members. .
- Address situations where these individuals might benefit—directly or indirectly—from how your organization uses state funds (outside of their official roles).
- Include steps your organization and those individuals will take to prevent conflicts and avoid any appearance of impropriety.
It is a best practice to have all board members sign your conflict-of-interest policy, but it is not required. If you have a policy in place already, you do not need to go back and get it signed before you submit it.
Yes, but please make sure the Conflict of Interest (COI) specifies it covers state grants. The federal COI says federal funds. What you submit must say state funds.
The more detailed the better. We understand not everything may be decided now, but we need to understand what you plan to use the grants funds for.
Provide the most extensive list of equipment you can in the description section of your Scope of Work. It's ok if, down the road, you find you won't purchase some of the pieces or the grant runs out before you can purchase everything. It's fine if you run out of funds before getting everything purchased. It is much harder to add items to your list at a later date.
Yes. It's fine if the grant doesn't cover the full cost of your project but the project information in the quote will be helpful. Just be sure your organization has funds to complete the project after the grant funds are exhausted.
We need to have all required documents and the final Scope of Work for a grant project before we can send an organization a grant contract.
Each grant will have it's own Contract with a unique Scope of Work.
Once all 5 statutorily required documents are submitted and approved and your grant contract has been signed.
OSBM will transfer the grant funds into the bank account that matches the Electronic Payment Form (EP) we have on file. Unless you have a Fund Accounting structure, you will need to transfer the funds into a separate account for each grant as soon as the funds are received. When submitting your EP and W9, please make sure the information is consistent.
You should not co-mingle state grant funds with your organization’s general fund. You will need to track and report on all grant funds separately from all other funds. If your accounting software is not set up to separate grant funds, you should deposit the grant fund into a new bank account. If your organization has more than one Directed Grant, each grant needs its own account. (internal transfer)
Once all requirements are met and the grant contract is signed, we typically make the grant payment in full.
No.
Grant Spending Deadlines
If the funds were appropriated in the FY23-25 biennium, the funds will revert on June 30, 2026.
S.L. 2023-134, sec. 40.7.(3) states that SCIF Grant funds “shall not revert until expended or the particular project has been completed.”
That said, grant agreements will have a termination date that can be extended as needed.
This is dependent on the source of your grant funds and their reversion date. Please let your assigned OSBM Grant Administrator know if you anticipate a longer grant term period.
Procurement Requirements
State funded grants currently administered by OSBM do not have additional procurement policies or requirements. Each organization should follow their own internal procurement and bidding process.
No, they are not because they are state dollars. However, you must abide by all state and local laws.
We recommend making payments directly from the account holding the grant funds, either through a debit card or checks.
It's always a good idea to buy from NC vendors when possible. However, there aren't any specific requirements for sourcing goods or services with this grant. You should always follow local, state and federal purchasing rules and laws.
Managing Grant Funds
Any interest earned on the grant funds must be used for same purpose of the grant (G.S. 143C-6-23.(j)).
Placing grant funds in a high interest savings account is acceptable, but a brokerage account or investing the funds is not allowed. These funds were intended to be spent in a prompt manner and investing the funds would be inappropriate.
We recommend making payments directly from the account holding the grant funds, either through a debit card or checks.
Yes, but staffing costs must be directly related to the grant project. We prefer staff be 100% dedicated to the grant if you plan to use grant funds for staffing. If the employee is not 100% dedicated to the grant project, timesheets must be kept for the efforts spent on grant project and should include a description of activities completed and signed off by the manager for each pay period (weekly or monthly depending upon the organization).
Per state law (SL 2023-134, Section 5.4), no more than one hundred forty thousand dollars ($140,000) in State funds, including any interest earnings accruing from those funds, may be used for the annual employee cost (salary, fringe benefits, employer taxes, etc.) of any individual employee of a nonprofit organization.
We understand that a capital project may have administrative expenses. Expenditures must be directly related to the project. Provide details in the project's scope of work about what those administrative costs will be in the budget section or provide attachments showing how the funds support it. These funds are not meant to support administrative activities already being done but instead could support new administrative tasks that the project requires.
Yes, your state grant funds may reimburse for project expenses that were paid during or after the fiscal year in which your grant funds were appropriated. State fiscal years begin on July 1.
The grant funds can't reimburse your organization for expenses paid prior to the fiscal year the grant funds were appropriated.
For example, if the grant was appropriated for the FY 2023-24 then the expenses can be reimbursed beginning on July 1, 2023.
State grant funds can't be used for debt service. Please speak to your assigned OSBM administrator to discuss the specific language of your grant and if or how it might be used for an ongoing project.
See Section 40.7 of SL 2023-134 for more details on the following requirements for SCIF grants:
- GS 143C-6-23 (b) through (f) and (f2) through (k) apply to all grants.
- Rules, reporting, conflicts of interest, reverting funds, etc., requirements
- Guidance on the use of funds for non-sectarian, nonreligious purposes.
Note, these provisions refer to the definition of Capital Improvement in GS143C-1-1(d) sub 5: "Capital improvement - A term that includes real property acquisition, new construction or rehabilitation of existing facilities, and repairs and renovations over one hundred thousand dollars ($100,000) in value."
Allowable costs are typically determined by the grant description in the legislation and the Scope of Work that is part of your signed grant agreement.
The appropriations act language for the grant will determine its allowable uses. The language in the law may be general, such as “capital improvements,” or it might name a specific project the fund must be used for. The description in the appropriations act is the basis of the grant contract and scope of work, which will clearly describe the allowable uses of the grant funds. Please consult the language in the appropriations act in which your organization’s grant was included.
Generally, no. However, please discuss your specific situation and plans with your OSBM Grant Administrator to get an answer about the specific costs you have in mind.
This will depend on what your grant description says. In most cases no, but please contact your grant administrator to determine if your specific grant would cover a vehicle.
Directed grant funds should not be used for general operating expenses. If you aren’t sure your costs might be part of the project’s Scope of Work, please discuss with your grant administrator at OSBM.
As the grant recipient, you remain responsible for the reporting and required documents. The rules governing how the money is spent remains the same for your subgrantees. The sub-recipient cannot use the funds for purposes outside the purpose of the grant and will need to provide you with information that allows you to submit all required reports.
Please include subgrantee information in your scope of work. We will also include it in your grant contract.
Revisions to the Grant
Yes, so long as it is the same town/county that was named in the Committee Report. For example, we cannot change Town of Lewisburg to County of Franklin but can alter things like "Township" to "Town of" since the recipient stays the same.
Be sure to let your OSBM Grant Administrator know if your organization has been in discussions with your state legislator about making changes to your grant with a technical corrections bill. If you have not spoken to anyone yet but feel your grant needs a technical correction, please let us know and we can provide information on how to request a change.
We are unable make these changes. Technical corrections must be enacted by the NC General Assembly.
Audit Requirements
Your organization should choose it's own auditor. Grant funds may be used to pay for a required program audit.
You can find helpful resources on audits and a list of auditors on the State Treasurer's website.
These audits are due within nine months of the end of your fiscal year.
See the NC Administrative Code for audit requirements for grants.
Any large CPA firm can assist with these audits and grant funds can be used to pay for the required audit.
Grants Funded by ARPA Temporary Savings Fund
Following Medicaid expansion in 2023, North Carolina received an additional 5% federal medical assistance percentage (FMAP) for 2 years beginning October 1, 2023. The General Assemby created the ARPA Temporary Savings Fund as a special fund for Medicaid savings as a result of additional federal receipts.
The General Assembly appropriated all of the anticipated funds and created a schedule that disbursed the funds over the course of the 2023-25 biennium.
See SL 2023-134, Sect 4.9 (e) for these limits.
Administrative Costs. – State agencies and departments and any non-state entities receiving funds from the ARPA Temporary Savings Fund may use part of these funds for administrative costs, including temporary positions, as long as they are related to the designated purpose of the funds. The amount of funds from the ARPA Temporary Savings Fund used for administrative costs may not exceed the lesser of the following amounts:
- Up to five percent (5%) of the amount of funds allocated for that specific purpose.
- One million dollars ($1,000,000).
In addition, the General Assembly has provided the following guidance:
Administrative costs are typically considered to be those necessary for day-to-day operations, but not directly tied to the specific purpose for which the funds were given. Recipients’ use of the ARPA TSF funds for these general administrative costs is capped at the lesser of 5% of the amount of funds allocated or one million dollars. Costs directly related to the purpose of the funds can use the full amount allocated for that purpose.