Today, I take the initiative as the Chief Financial Officer of Anytown University to inform you about the financial state of our university. I am aware you all feel the challenges we are experiencing as an institution based on the bad financial state that has compromised all sorts of developmental activities of Anytown University in the recent past. The major financial challenge that we are experiencing is based on the level of decreased funding from numerous sources, especially federal funding. Hence, I take the platform to explain to you how the federal funding method works and also share with you a new approach that will enable the university to function effectively with or without the federal funding.
The method of federal funding is executed based on the technique of devolution and shared responsibilities. In this context, the financial assistance awarded to public institutions such as Universities and Colleges is intended to promote quality learning through the provision of adequate resources and materials for learning (Hundley, Brock & Jensen, 2016). The provision of incentives that outlines the core initiative of federal funding is to harmonize additional spending benefits to enable the public institution factor in all alternatives of boosting performance irrespective of the scarce resources. The additional spending benefits outline the need for an institution or a recipient to embrace accountability and focus on projects and only suit the interest and the needs of the recipients.
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Understanding federal grants as a funding method require a conclusive understanding of all the types of federal funding. Ideally, there are two major types of federal funding that includes the categorical grant and the block grants. Categorical grants are a restricted financial assistance method that focuses on the achievement of specific goals and objectives of responding to communal needs (Wagner, 2019). For instance, federal grants could be channeled to Anytown University to execute specific objectives such as building a library and a laboratory for the institution. Such funds are restricted based on the fact it is upon the management of the university in collaboration with the financial department to evaluate the preferences and the value the project would establish in the university. The block grants are offered to various public institutions, but give the recipient latitude in developing a strategic plan on how the financial assistance shall be used to manage projects (Yang, 2017). The block grants give the recipients the freedom to make decisions on the parameters that shall be considered to ensure that the funds are used effectively and efficiently. Besides, there is not time-bound with regards to the launching and timely completion of the projects.
The federal funding is always classified based on how the allocated funds and channeled and awarded to the recipients. The formula grants depict the consideration of the legal community to oversee the procedures and protocols of disbursing finds to public institutions and ministries (Hundley, Brock & Jensen, 2016). For instance, understanding the statistical figure of the entire student population would prove quite effective with regards to the determination and the classification of the amount the institution requires initiating the intended project.
Federal grants are always awarded based on the level of competitiveness of the state projects. The level of competition defines the chances of a state recovering revenues channeled to support state projects. For instance, the state would consider funding a health science projects in any institution based on the reasoning that the results of the research would generate good returns upon validation (Hundley, Brock & Jensen, 2016). Conversely, it is quite imperative to note that grants may require both the state and the locality to contribute their own resources as an initiative of implementing the technique regarding the maintenance of effort requirements. In this case, Anytown University, for example, has the mandate to explore alternatives in a bid to find an avenue of maintaining competitive performance with or without the federal grants.
The fact that federal grants and all other sources of funding may diminish over time, especially based on the concern of the vested interest of the public officials, means that coming upon with a new approach to redefining the shape of our bad financial state is quite essential. The new approach that I intend to share with you today is the need to establish research-based programs in the institution that target private donors and investors. For instance, I suppose that if Anytown University could begin research-based programs that are quite sensitive in the modern society, especially related to mental health issues than the university stands a better chance of finding potential investors who could effectively improve the financial face of the institution. Additionally, such innovative approaches to finding alternatives to sourcing funds alleviate the risks associated with overreliance on federal funds.
As I conclude, I would like to bring to your attention the fact that the university has suffered the frightening experience of inadequate financial assistance based on the lack of innovativeness from the students and various faculties. The ability for us to understand the dynamics of the economy and the need to consider all viable alternatives for reshaping the financial capability of the institution outlines the need regarding the consideration of the new approach that I propose. Ultimately, the state releases federal funds with expectations of getting good returns in the form of revenues (Wagner, 2019). Hence, the institution should be very much aware of the fact that federal grants are short-lived.
References
Hundley, M. F., Brock, E. S., & Jensen, L. S. (2016). FIDUCIARY RESPONSIBILITIES TO WHOM? FEDERAL GRANT RECIPIENTS'PERCEPTIONS OF THE PUBLIC INTEREST. Journal of Public Budgeting, Accounting & Financial Management , 28 (1).
Wagner, J. (2019). Using Advanced Analytics to Predict Risk for Grants Oversight.
Yang, W. (2017). Negotiating the economic challenges of attaining a college degree: a phenomenological exploration of Mong students and federal Pell Grants (Doctoral dissertation).
