Page History
...
Frequently Asked Questions
Whose responsibility is it to make the subrecipient vs contractor determination?
It is the responsibility of the pass-through entity to make the correct determination between subrecipient or contractor determination. This determination is to be made on a case-by-case basis depending on the unique relationship of each individual situation.
Why is it important to properly distinguish between a subrecipient vs contractor?
Federal regulations differ between subrecipients and contractors. One of the biggest reasonings is that subrecipients are required to comply with applicable Federal compliance requirements (these get passed down from the pass-through entity to the subrecipient), while contractors are not subject to the same compliance requirements of the Federal program. It is the responsibility of the pass-through entity to identify the subaward to the subrecipient and include the information listed in 2 CFR 200.331(a)(1-6) in the agreement form between the pass-thru-entity and the subrecipient.
Our organization uses a "contract" as the legal instrument to enter into agreements with both subrecipients and contractors. Therefore we consider all of our relationships as contractors. Is this acceptable?
No. Many non-Federal entities, particularly State agencies, call all of their legal instruments "contracts". 2 CFR 200.330 is clear, "A non-Federal entity may concurrently receive Federal awards as a recipient, subrecipient, and a contractor, depending on the substance of its agreement with the Federal awarding agency and pass-through entities. Therefore, a pass-through entity must make a case-by-case determination whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor." Pass-through entities need to reflect upon the nature of the case-by-case relationship of the agreement in order to determine if the non-Federal entity is a subrecipient or a contractor.
...
Scenario #1: A state fish and wildlife agency receives a Federal Sport Fish Restoration grant to study the effects of stocking white crappie into a large flood control reservoir in terms of bolstering the population in order to improve abundance for recreational anglersfishing. The state fish and wildlife agency in turn enters into a relationship with a local university to conduct the research as approved in the grant application. Under this scenario, the state fish and wildlife agency acts as the pass-through entity and the university becomes the subrecipient. A subrecipient determination would be adequate in this scenario because the university (1) has its performance measured against whether the objectives of the Federal program at met; (2) most likely has responsibility for programmatic decision making; (3) has responsibility for adherence to applicable Federal compliance requirements; and (4) uses the Federal funds to carry out a program of the organization as compared to simply providing goods or services.
...
Scenario #1: A state fish and wildlife agency receives a Federal Wildlife Restoration grant for annual operations and maintenance of its wildlife management areas and buildingsfacilities located at the areas. The state fish and wildlife agency determines that a new roof is needed on one of its regional wildlife offices located on at one of the wildlife management areas. The state agency in turn enters into a relationship with a local business to remove the existing roof and replace with a new roof. Under this scenario, the state fish and wildlife agency acts as the passnon-through Federal entity and the local roofing business becomes the contractor. A contractor determination would be adequate in this scenario because the local roofing business (1) provides goods or services within normal business operations; (2) provides similar goods or services to many different purchasers; (3) operates in a competitive environment; (4) provides good or services that are ancillary to the operation of the Federal program; and (5) is not subject to compliance requirements of the Federal program.
Scenario #2: A state fish and wildlife agency receives a Federal Sport Fish Restoration grant to sample, monitor, and manage 50 public recreational sport fisheries across the state. Included in the grant, the state agency requests to purchase five new vehicles and two new electrofishing boats. Under this scenario, the state fish and wildlife agency acts as the passnon-through Federal entity. Both the vehicle dealership and the electrofishing boat manufacturer become contractors, respectively. A contractor determination would be adequate in this scenario because both entities are (a) providing goods and services within normal business operations; (2) providing similar goods or services to many different purchasers; (3) operating in a competitive environment; (4) providing goods or services that are ancillary to the operation of the Federal program; and (5) not subject to compliance requirements of the Federal program.
...
2 CFR 200.331(b) requires all pass-through entities to evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for the purposes of determining the appropriate monitoring needed to ensure that Federal funds are used properly. Pass-through entities are not required to complete a risk assessment on contractors.
What additional responsibilities requirements does the pass-through entity have in regards to its subrecipients?
sdfsdf 2 CFR 200.331 lists the various requirements that pass-thru entities have in regards to subrecipients.
...
Learning Aids
...
Related Pages
...
Resources
...
References
2 CFR 200.22-23
...
