Why do grantors continue to fund program initiatives when grantees don’t spend the money?

Throughout my career, I’ve seen many entities receive funding that they don’t spend and ask for more once the period of performance is over. When a grantee applies for a grant opportunity, they must learn and follow the rules of the overall grant management process. The majority of Federal, State, Local, Corporation, Foundation, and Pharmaceutical opportunities have stipulations that accompany all award notifications, grant agreements/contracts. 

Grantors must exercise their due diligence in ensuring that funds are being spent through periodic programs and financial reporting. They should require an explanation earlier on in terms of why funds are being spent while continuing to monitor the progress of the overall award. I’m aware that there may be valid reasons as to why funds are not being spent early on, but there’s no reason after a year, as to why the funds were not spent. All entities need to remember to strategize and plan accordingly before even applying for funding. During the initial proposal writing stage, the programmatic plan is being developed in order to carry out the goals and objectives of the project. If there’s no plan, then don’t submit the proposal. All grantees must develop a realistic budget that aligns with the over-programmatic plan. If a budget revision is needed during the course of the project, it is important to communicate it to the grantor. Both the grantors and grantees must work together in order to avoid problems like this down the road.