Budget Execution (Step 3)

Budget execution begins with a financial award. The type of financial award used for CTPs is a “cooperative agreements.” You may hear this term used interchangeably with “grants,” though there is a difference.  The distinguishing factor in a cooperative agreement is that a cooperative agreement requires “substantial Federal involvement” beyond routing, monitoring, and technical assistance.

Additionally, grant/cooperative agreements are used rather than contracts, due to the following definition of contracts:

  • If the purpose of the funded activity is to provide something for the direct benefit or use of the Federal Government, then a contract is the appropriate legal instrument to use.
  • If the purpose of the funded activity is to support or stimulate activities that are not for the direct benefit or use of the Federal Government, an assistance agreement (grant or cooperative agreement) may be used.
Transcript
Images compares cooperative agreements and contracts: Contracts-To provide something for the direct benefit or use of the Federal Government, Assistance Agreement (Grant or Coorperative Agreement) - To support or stimulate activities that are not for the direct benefit or use of the Federal Government