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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 made by the pass-through entities may result in compliance problems with Federal statute and regulation, and may mean entity when electing to work with third parties on the Federal financial assistance award. These two roles have different purposes and Federal requirements, and improper identification of the relationship could result in disallowed costs from audits and/or reviews. 

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Contents

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Overview

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Authorities

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2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

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