Be Aware That Every Grant Is Different

March 23, 2011 | By Jerry Ashworth | Post a Comment

Just like snowflakes, every grant is different. Each has its own specific terms and conditions designed to fit that particular award. Because the same holds true for subgrants and subcontracts, grantees should avoid trying force a standard agreement for each of its subrecipients.

During a Thompson audio conference Monday, grants management expert Bob Lloyd said that one problem has often sees in his consultant work is pass-through entities trying to use a boilerplate agreement for each type of organization with which they make subawards. “That gets into this notion of trying to follow all the requirements that are applicable, and sorting out the relationship becomes that much more difficult,” he said. 

Whether it’s a subaward to a nonprofit, for-profit, governmental entity or institution of higher education, the pass-through recipient should craft a distinct subreceipient agreement and should be aware of which requirements apply. For example, a for-profit subgrantee is excluded from an Office of Management and Budget Circular A-133 single audit, so any arrangements for obtaining an audit should be omitted (see OMB Circular A-133 §__.210(e)).

What issues arise when you try to develop your subrecipient agreements? Are you still having problems determining the difference between subgrants and subcontracts? Let us hear from you.

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