Grant-in-aid

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A grant-in-aid is funding granted by government, the use of which is subject to parliamentary oversight, to finance all or some part of the costs of another organization. This kind of funding is usually used when the government and parliament have decided that the recipient should be publicly funded but operate with reasonable independence from the State. Most bodies in receipt of grants-in-aid are non-departmental public bodies.

A grant-in-aid is the monies allocated by one level of government to another level of government to be used for specific purposes. They usually have requirements and standards set by the governing body for how they are to be spent. An example of this would be how the United States Congress required states to raise the drinking age for alcohol from 18 to 21 in order for the individual states to continue to qualify for federal funds for their highways.

[edit] Reference

• UK Government's accounting website