Advanced Grant Payments: Creating a More Equitable Public Health System
September 30, 2024 | Jignasa Jani, Ryan Rivera
Community-based organizations are critical partners to state health agencies in implementing public health programming, often reaching underserved populations and those at greater risk of experiencing health disparities. However, smaller or less-established organizations frequently face significant barriers when receiving grant funding (e.g., not having the necessary upfront capital to cover initial project costs). The Colorado Department of Public Health and Environment (CDPHE) recognizes these challenges and is taking bold steps to improve administrative processes for grant funded programs. These steps will go a long way towards ensuring that smaller community-based organizations have the resources they need to succeed, creating greater equity in the public health system.
Redesigning Payment Structures for Greater Access
To improve its administrative process, CDPHE is redesigning its payment structure for grant-funded programs. Historically, many grants have operated on a cost-reimbursement basis, where organizations must first cover the costs of services or goods before being reimbursed by the state department. This approach can exclude or unfairly burden smaller or less-established organizations that lack the upfront capital to participate fully in grant-funded initiatives, many of which serve disadvantaged and under-resourced populations.
As such, CDPHE identified advanced payments as a priority, reflecting the department’s commitment to inclusion, diversity, equity, and accessibility. Following the enactment of Colorado House Bill 21-1247, CDPHE worked with policymakers to allow the department to provide advance payments to certain grantees and were granted the authority to provide certain grant recipients up to 25% of the total award value immediately on execution or renewal of the contract. By doing this, CDPHE may provide funding opportunities for eligible organizations to have the financial support they need from the start to support their communities.
“The advance payment is to provide grantees with cash flow assistance. The advance payment amount will be deducted from invoices over the life of the contract in a manner consistent with the repayment method selected by the grantee until the balance of the advance payment is repaid.”
– Jignasa Jani, Auditor, Prevention Services Division, CDPHE
The Prevention Services Division (PSD) within CDPHE led implementation of House Bill 21-1247 and administers a wide range of programs, including those focused on chronic disease prevention, tobacco cessation, injury prevention, suicide prevention, sexual health, and women’s health. By offering advanced payments, PSD empowers smaller organizations to carry out these important public health programs, which are essential to improving the health and well-being of Colorado’s most vulnerable populations.
Overcoming Challenges in Implementation
While the benefits of advanced payments are clear, implementing this new process has come with its fair share of challenges. The complexity of state and federal rules often places smaller organizations at a disadvantage, making it difficult for them to navigate the administrative requirements of grant funding. PSD staff dedicated significant time and effort to developing the necessary guidelines, policies, and procedures to support the advance payment process. These safeguards were crucial in gaining the support of department fiscal staff, ensuring that taxpayer funds are used appropriately and effectively.
PSD staff had to go above and beyond their regular duties to create a robust process that would mitigate risks while providing necessary support to grantees. Their dedication to this initiative reflects a deep commitment to equity and inclusion, and to ensuring that all organizations, regardless of size, have equitable access to grant funds for public health work.
“As with any new process or procedure in government, it’s important to take the time upfront to develop robust safeguards, policies, and procedures.”
– Jignasa Jani, Auditor, Prevention Services Division, CDPHE
Supporting Grantees Through Ongoing Assistance
To ensure the success of the advance payment process, PSD staff work closely with grantees to help them understand and comply with the new requirements. This includes providing technical assistance on financial management, invoicing, and compliance with state and federal regulations. By offering this support, CDPHE helps organizations build the capacity they need to manage grant funds effectively and reduce the likelihood of being classified as high-risk in the future.
PSD’s efforts extend beyond the initial implementation of the advance payment process. The division is committed to continuous improvement, regularly gathering feedback from grantees and internal staff to refine and enhance the process. This approach ensures that the system remains responsive to the needs of community-based organizations and continues to support their success.
Looking Ahead
This initiative has the potential to increase the number of applications and funding awards to community-based organizations serving under-resourced populations, further enhancing the diversity and reach of public health programs in Colorado. As more organizations successfully navigate the grant funding process, the overall capacity of Colorado’s public health system will grow stronger, leading to better outcomes for all communities.