Government grants are the help provided by the government to the organizations for some projects which will benefit the common interest of the common man. This concept is most widely used in federal government system only. This help may be in terms of direct monetary help, giving loans on very low rate of interest or relaxing some rules for conducting the project. The government tries to extend a full support for the projects of noble causes by providing such Government grants. The term “federal grants” is used synonymously to the term government grants.
This gift, the government grant, does not come free, with it comes a lot of obligations for the grantee towards the grantor i.e. the government. If the grantee fails to match up to these obligations then he\she can land into serious legal troubles.
Moreover the organizations which are granted the government grants must meet up to strict oversight performance standards set by the federal government throughout the complete duration of the project.
All the expenditure incurred during the complete durations of the project must be accounted for strictly and at least annually, government conducts detailed audits. Moreover all the funds that have been granted to the organization must be spent.
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