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The subrecipient vs contractor determination is an important one which affects Federal financial assistance in several ways. Improper identification of these two roles by either Federal awarding agencies or pass through entities may result in compliance problems with Federal statute and regulation, and may mean disallowed costs from audits and/or reviews.
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Definition
A "subrecipient" is defined in § 200.93 as a non-Federal entity that receives a subaward (as defined in § 200.92) from a pass-thru-entity to carry out part of a Federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency.
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