Federal grants can have a profound impact on communities. According to the Government Accountability Office’s FY 2024 Report on Federal Grants, federal agencies awarded approximately $1.25 trillion to state and local governments, universities, tribal nations, and other community-based organizations. Whether you represent a large state government or a community-based nonprofit, managing federal grants involves numerous moving parts.
Think of grants management as like building a house—many admire the craftsmanship and intentionality of the finished product, but few consider the underlying structure that supports it. The foundation may not be the most visually appealing aspect, but it is ultimately the most crucial.
Similarly, the success of grant programs greatly benefits from the structured and repeatable methodologies provided by a project management office (PMO). In this article, we will explore what a PMO is and its key benefits to the grants management process, helping your projects withstand challenges throughout the grant life cycle.
What Is a PMO?
A PMO is a centralized function within an organization that standardizes project management processes and facilitates the sharing of resources, methodologies, tools, and techniques. Where a PMO sits in an organization greatly affects the amount of control over program aspects and projects it oversees. While no one organization’s PMO will look the same, there are three distinct types of PMOs as defined by the Project Management Institute’s Project Management Body of Knowledge (PMBOK® Guide):1
| Type | Characteristics | Level of Control |
|---|---|---|
| Supportive | · Provides consultation on projects, primarily around templates, best practices, training, information access, and lessons learned · Acts as a repository for project management documentation | · Low control · Primarily advises/offers guidance and support without enforcing compliance |
| Controlling | · Requires compliance with project management standards/methodologies by enforcing the use of templates/forms · Regularly reviews projects in the PMO’s program/portfolio | · Moderate control · Assists with adherence to project practices/methodologies, but with limited authority to enforce compliance |
| Directive | · Directly manages/controls projects · Assigns project managers/resources and is responsible for the successful outcomes of the project | · High control · Full authority over project execution, including decision making and resource allocation |
Applying PMO Best Practices to Grants Management
A PMO is at the intersection of strategic and operational delivery, helping ensure projects are delivered on time, within budget, and to high-quality standards. For grants management, a PMO serves as the foundation supporting the entire grant life cycle—from application to closeout. In this section, we’ll examine the intrinsic benefits a PMO can bring to your grant management practices.
Standardization in Governance & Compliance
Without unified project governance and methods, teams can often develop tunnel vision and lose sight of the bigger picture. A PMO reinforces accountability and uniformity in grants management activities and documentation by implementing clear processes, procedures, and guidelines. This focus on compliance with federal regulations not only helps simplify the administrative burden but also can help enhance the ability to meet grant award requirements and achieve desired goals and outcomes.
Project Planning & Execution
One of a PMO’s key functions in grants management is to oversee project planning and execution of grant research and application activities. In addition, it supports the administration, design, and implementation of grant-funded programs to help promote economic growth and rebuild communities stronger than before. This includes developing detailed project plans, setting realistic timelines, and allocating necessary resources. A PMO also monitors project progress, identifies potential risks, and implements corrective actions to help keep projects on track.
In addition, a PMO facilitates communication and collaboration among stakeholders, helping the parties involved stay aligned and informed throughout the grant life cycle. By providing the support activities described above, a PMO can help organizations efficiently achieve their grant program outcomes and objectives, ultimately contributing to the successful implementation of grant funding.
Enhanced Data Management & Performance Monitoring
Another crucial element to any successful grants management project is data management and integrity. Solid data management practices are primarily driven by consistency, transparency, and flexibility. Establishing a well-defined PMO is instrumental in achieving this goal. A PMO can leverage cutting-edge project management tools, including data analytics, artificial intelligence, and powerful benchmarking services, while emphasizing the importance of security and confidentiality. Thus, a PMO provides you with real-time access to what’s happening, which can give you peace of mind about a project’s strategic priorities and direction.
Proactive Approach to Risk Management
Another key aspect of effective grants management is proactive risk management. A PMO is fundamental in identifying potential risks, developing mitigation strategies, and working with stakeholders during implementation. This involves regularly monitoring project timelines, budgets, key performance indicators (KPIs), financial reports, and other performance metrics to help track progress and proactively address any deviations from the plan.
Continuous Feedback Loop & Lessons Learned
Finally, a PMO helps foster a positive environment that supports continuous improvement by encouraging feedback and integrating lessons learned into grant-funded projects. By promoting industry-defined best practices in grants and project management and providing ongoing support, a PMO helps navigate the complexities associated with grants management. This proactive approach can help to reduce the risk of fraud and deobligation, which can have long-lasting negative repercussions.
Conclusion
When taking the first steps in establishing a PMO, you may feel uncertain about where to start or whether you have the internal resources and expertise to execute it successfully. Our Grants Management practice and experienced project management professionals are here to assist. We have successfully helped clients establish a solid PMO foundation for their grants management programs, enabling them to operate efficiently and confidently. If you have any questions or would like to learn more about how we can help, please reach out to a professional at Forvis Mazars.
- 1 “A Guide to the Project Management Body of Knowledge, PMBOK Guide®, Seventh Edition,” pmi.org.