The Grant Cycle

Reimbursement & Direct Grants

Reimbursement Process

Grant recipients do not automatically receive payment if an LCC approves their grant request. The LCC Program is reimbursement-based: recipients need to spend the money to then be reimbursed from LCC funds. Beginning once the LCC completes their reporting to Mass Cultural Council (November – January) and continuing throughout the year, grant recipients can submit their reimbursement requests. LCCs specify exactly what kind of documentation a grantee needs to provide in order to be reimbursed in the approval letter. LCCs must also check with their town/city to see if they have specific requirements. Grantees have one year from the date of the award notification to request reimbursement unless the LCC approves an extension.

To initiate the reimbursement process, grant recipients must submit their reimbursement request, using the reimbursement form (PDF) provided by the LCC.

A formal meeting of the LCC is not required to approve reimbursement requests, as long as the LCC has established a subcommittee of at least two members to review requests for payment of work completed. This can be done by email. Only one person needs to sign the form and forward it to the city or town for payment. In order to preserve a record of the decisions, notes from the review should be kept or a copy of the email from the second member should be printed and kept with the reimbursement request. If it is not possible to print, then a copy of the email should be saved electronically as part of the LCC’s records. LCCs should process reimbursements as they arrive and take no longer than four weeks to forward approved reimbursement requests to the municipal treasurer.

If the LCC, or subcommittee, is satisfied that the project has been completed as promised, one member signs the reimbursement form and forward the request to the municipal treasurer to release funds from the LCC’s account. The LCC must retain a copy of the documentation provided by the applicant with the application as part of the LCC’s records. LCCs should check with their municipality to determine how they ought to retain copies of applicant documentation.

If the LCC is not satisfied that the project was completed as promised, the LCC must contact the grantee with their concerns and allow the grantee the opportunity to respond. Two LCC members and the grantee may work out a compromise solution, which should be finalized in writing. If a compromise cannot be agreed upon, the LCC must convene a quorum of LCC members to vote on the request and/or any compromise solution put forward by the grantee or LCC. The results should be reflected in the meeting minutes, and the grantee should be given final notification in writing as to the outcome of the vote.

Progress Payments

Progress payments are reimbursements made before the project is complete. They can be made at the discretion of the LCC and should be proportionate to the percentage of the project that has been completed.

Third-Party Vendors

Reimbursements can be directed to third-party vendors who have provided goods, materials, or services to the grant recipient. The LCC must retain a copy of the documentation provided by the applicant with the application as part of the LCC’s records. LCCs should check with their municipality to determine how they ought to retain copies of third-party documentation.

To reimburse a third-party vendor the grantee simply needs to check off that option on the reimbursement form and supply the name and address of the vendor to be paid. The grantee should sign the reimbursement form, not the third-party vendor. However, if the municipality requires a completed tax form such as a W-9 or 1099, the third-party vendor should complete that documentation since they will receive the payment.

Council Programs

Please note that because the Local Cultural Council is a municipal entity, any expenses or programs, including Council Programs that use Mass Cultural Council’s allocation, must be reimbursement-based. LCC members must keep track of receipts and other proof of expenditures and submit them to the municipality using a reimbursement form once the project or purchase has been completed.

Direct Grants Process

The Direct Grant process for LCCs provides grant funding up front to grantees in lieu of reimbursement based granting to enhance and encourage more programming opportunities by imposing less financial hardship on potential grantees, and to simplify the payment process for municipalities and councils.

The timeline of the Direct Grants process is not much different than reimbursement.

Once the LCC Annual Report is completed in January of each year, Local Cultural Council send grant packet to grantee which includes: An Approval Letter, Grant Agreement, W-9 and Final Report.
Grantee signs and sends Grant Agreement & signed W-9 back to LCC (ideally it is returned within 2-4 weeks)
LCC forwards Grant Agreement & W-9 to Municipal Officer for payment. (LCC does NOT keep copy of W-9 form).
Municipality processes paperwork in a timely manner (usually within two weeks of receiving the paperwork) and sends payments directly to the grantees.
Grantee, at the completion of the program, fills out the Final Report Form and sends to the completed form to the LCC.
Grantees must return the completed final report outlining the completion of the program/project that was funded.
If the grantee does not comply with the process set out in the Approval Letter, the LCC can request that the grantee return the funds. If funds are not returned, the LCC can choose to not allow the grantee to apply for the following year or any other sanctions they have made clear in their approval letter.

Forms

Approval Letter: Can be tailored to meet the needs of each LCC. Sets out special conditions, if any, for the grantee to comply once they receive the funds. An approval letter template is available as a Word document and a PDF.

Grant Agreement Form: LCC sends this agreement to the grantee to sign off on the direct grant they will receive. LCC reviews the agreement and signs-off on the agreement before sending it to the Municipal Fiscal Officer.

W-9 Form: IRS-required form that allows the municipality to pay performers, organizers, and vendors. This form must accompany the Grant Agreement Form that is received from the grantee and should be signed by the grantee. LCC sends the original W-9 to the municipal accountant or treasurer and does not keep a copy as W-9 forms include private information.

Final Report Form: Grantees must send a Final Report to LCCs upon completion of project/program. It is suggested that the report be filed within two weeks of program completion but absolutely within one year of date on approval letter. Additions can be made to the Final Report on a council-by-council basis.

The Final Report:

Confirms Grantee completed the project/program and details and completion.
Provides participation information and impact of program.
Acknowledges compliance with Mass Cultural Council and LCC guidelines.
Includes required documentation, if any.

Councils have ability to request additional documents that will accompany the Final Report and state those requirements in the Approval Letter.

Local Cultural Councils have the right to request return of grant funds if grantee does not submit a Final Report or program was not completed.

Grantees that do not repay the grant funds to the Local Cultural Council jeopardize their future funding.

A formal meeting of the LCC is not required to approve direct grant requests, as long as the LCC has established a subcommittee of at least two members to review requests for payment of work completed. This can be done by email. Only one person needs to sign the form and forward it to the city or town for payment. In order to preserve a record of the decisions, notes from the review should be kept or a copy of the email from the second member should be printed and kept in the grantee file. A copy of the email should be saved electronically as part of the LCC’s records. LCCs should process direct grant paperwork as they arrive and take no longer than a week to forward approved forms to the municipal treasurer.