The Challenge
The Department of Housing and Community Development (DHCD) recognized the need to upgrade and integrate their Community Development Block Grant (CDBG) database and local accounting software program (SCA/GMS) into one grant management system, and the need to bring the systems into a more efficient WEB based platform. These systems were operating independently, the only link between them was electronic filing, and data upload of grantee quarterly reports from the local SCA/GMS. The introduction of the Housing & Urban Development (HUD) Information Database & Information System (IDIS) added another layer of accounting and reporting, which created additional and duplicate data entry that had to be done by State staff. It had become an unmanageable workload for staff to maintain three systems, plus comply with all the requirements of the State’s MMARS accounting system.

DHCD had a vision of a seamless flow of information from the local level, to the State, and then on to HUD with their IS department, state and local CDBG staff. This resulted in the concept of one integrated database for local and State grant management functions, which could also provide an electronic data interchange link to the HUD IDIS system and also link to the State’s MMARS system. DHCD conducted their search for a firm who had experience in developing grant management systems. In late 2005, they teamed up with Agate Software, Inc.

On average DHCD operates programs that provide CDBG funds to approximately 100-120 communities, who are managing 200 grants state-wide (depending on the timing of the grant cycle for new awards and grants closing out).

The Solution
The Massachusetts CDBG grant management system upgraded their old CDBG database to include the new data required of the HUD IDIS system regarding beneficiaries and performance measures. It also incorporates the local grantee SCA/GMS accounting/reporting software program within the same database.

In addition, the data required by the HUD IDIS system can be uploaded from the State to HUD via the electronic data interchange (EDI) built within the new system. This interface addresses the problem of state staff having to perform duplicate data entry and cleanup in both the State CDBG and HUD IDIS systems.

Both pre-award and post award functions have been automated from online grant application submissions, award notices, contracts, program/budget amendments, extension requests, grantee monitoring reports, single audit review, drawdown requests, and quarterly reports/final close-out reports. All of these grant management functions are processed and approved online with data immediately updated. These functions were captured via data-entry from paper submissions.

The Benefits
The system eliminated most of the grantee paper submissions and has increased DHCD’s efficiency by automating the major grant management functions and tracking systems via online for both the State staff and CDBG grantees. It provides the data link to HUD IDIS.

It also includes a Community Grants Management Module (CGMM) for the State grantee’s accounting and reporting. The State has had a mandated accounting and reporting software program in place for its CDBG grantees since 1994 (formally known as SCA/GMS). Taking that system from a stand-alone product and integrating it into our database has allowed for timely and seamless reporting to the State on accounting transactions, project and contract information, proposed and actual unit goals, beneficiary information, and performance measures. Therefore, this provides the State with timely and seamless reporting down to the individual transaction level. This facilitates the on-site monitoring by informing grantees which project/contract files, expenses, bank account records, etc. will be tested during the visit.

This also provides the State with a desk-top monitoring tool. It has improved the efficiency of our grantee on-site monitoring by allowing State CDBG staff to review and pre-select the expenses, program bank accounts; projects, and contract files prior to the site visit. It also has provided staff additional time in the field to view projects and provide technical assistance.

The Feedback

"The paperless grant application/review and scoring process has provided reviewers and program managers with a clear, organized work-flow. The average paper application would be 4-6 inches thick (80+applications/year), so the savings in file cabinet space is significant. Having the communities grant information in real-time provides staff and program managers with efficiency in desk-top monitoring. It also has enhanced on-site monitoring where staff can review and select the projects and files for testing prior to the site visit, therefore leaving more time for grantee technical assistance and project development. This helps the grantee's future applications to be more competitive. We have seen a decrease in processing time of 1-2 weeks for grant amendments, extensions and drawdown requests (claims) from an average of 3-4 weeks with a paper process. The Status History function helps to keep things moving! The overall savings in time and paper has been significant. For example, one community could have 2-4 grants open at any given time, occupying one entire file drawer. Except for a few transmittal documents and the original grant contract, all documents are now maintained on the grant management system."

- Beth Jeppson, Division of Community Services Finance Director, at Commonwealth of Massachusetts Department of Housing and Community Development.