Our Grants Office (University of Wisconsin-River Falls, a regional
comprehensive of 5,000 students) reports to the Associate Vice
Chancellor, thence to the VC.  Our VC is active in the grants world, so I
work closely with him.

I think that grants offices should definitely report to the academic chief of
the institution.  Faculty at all of the institutions I have worked at tend to
look down upon anyone who is in student affairs or other support
functions.  In order to be credible to the faculty--our chief clientele, after
all--grants offices must work in the academic side of the institution.

Regards, WEC