How do you want to handle the null? You need to check for it first because of the way that databases handle null. Null is not actually a value, so when you do a comparison of a null value to a real value, the return value is null instead of true or false.
So, your formula will look something like this:
If IsNull({tblWilliamsGrantExpenditures.Expenditures}) then
''
else if {tblWilliamsGrantExpenditures.Expenditures} = '1' then 'IFS'
else 'Related'
-Dell