Receiving a grant award is a major achievement, but compliance failures after award are one of the most common reasons agencies face funding delays, clawbacks, or audit findings. Many organizations underestimate the complexity of post-award requirements and assume compliance begins after the project is underway. At Grants America, we regularly help agencies correct avoidable compliance issues that could have been prevented with proper planning.

Here are the top five grant compliance mistakes agencies make when executing awarded grants.

1. Not Fully Reviewing Award Terms and Conditions

Agencies often begin spending before thoroughly reviewing the grant agreement. Each award includes specific requirements related to allowable costs, timelines, procurement rules, and reporting. Missing or misunderstanding these conditions can result in noncompliant spending that must be repaid.

2. Poor Financial Tracking and Documentation

Grant funds must be tracked separately from general operating funds. Failure to maintain clear documentation, such as invoices, payroll records, and procurement files, is a leading cause of audit findings. Without proper financial controls, agencies risk disallowed costs and delayed reimbursements.

3. Missing Reporting Deadlines

Late or incomplete reports are one of the fastest ways to jeopardize a grant. Programmatic and financial reports are mandatory, and missed deadlines can result in suspended funding or future ineligibility. Agencies should establish reporting calendars immediately after award.

4. Noncompliant Procurement Practices

Many grants require strict adherence to federal, state, or local procurement rules. Agencies that bypass competitive bidding, fail to document vendor selection, or do not follow purchasing thresholds risk serious compliance violations, even if the project itself is successful.

5. Lack of Internal Grant Oversight

Grant compliance is not a one-person responsibility. Agencies that rely on a single staff member without internal checks, cross-department coordination, or leadership oversight are more likely to encounter compliance issues. Strong governance and clear roles are essential for grant success.

At Grants America, we help agencies avoid these pitfalls by providing post-award compliance support, reporting management, and audit readiness guidance. Grant success is not just about winning funding, it’s about protecting it. With the right processes in place, agencies can execute grants confidently, maintain compliance, and strengthen their long-term funding eligibility.