Many grants have the potential for unemployment claims which the county would have to pay when assessed. The Council accepts fiduciary responsibility and may have to pay the cost of a special audit if required in the grant. The county must handle payroll, withholding, subcontracts, tax forms locally and may not have adequate staff time or expertise to handle all these functions. Grants may be federal or federal flow-through dollars. Most counties have limited or no knowledge of the requirements of these circulars.
Some grants require matching funds.
Most counties have limited knowledge of the procedures to document matching funds for audit purposes and in some cases have limited dollars to use as match.