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Subrecipient vs. Contractor: Making the Correct Determination

Webinar • Monday, January 27, 2025 • 2:00-3:30 p.m. EDT

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Webinar Details

Prerequisites: Some knowledge of federal grant management and audit requirements is helpful

Recommended Field of Study: Specialized Knowledge and Applications

Program Knowledge Level: Basic

Advanced Preparation: None

Credit Information

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The Office of Management and Budget keeps trying. For more than ten years, the agency has sought to provide clear guidance to federal grant recipients that are passing through federal funds to “lower tier” organizations. The “pass-through entities” are supposed to use this guidance to make defensible determinations about whether they are subawarding federal financial assistance to subrecipients or placing procurement contracts with contractors.

There’s no question that the determinations are consequential. They affect how the resulting awards are solicited, provisions contained in legal agreements and how organizations receiving the awards are managed, monitored and, perhaps, audited. OMB’s revised Uniform Guidance (2 CFR 200), which became effective on Oct. 1, 2024, takes another stab at helping pass-through entities clear up their decisionmaking. They’ve added some additional factors to consider but they still rely on other criteria that are often confusing.

Since OMB says that pass-through entities should “exercise judgment” when they make the required determinations, this webinar will take a fresh look at all of the factors that might affect the decision, including some that aren’t included in OMB’s guidance document. We will examine the requirements from the differing perspectives of the federal awarding agencies, the pass-through entities and the lower tier outfits that are receiving the awards.

WHO SHOULD ATTEND:

  • Grant managers
  • Grant project directors
  • Sponsored projects administrators
  • Executives
  • Finance directors
  • Accounting staff
  • Purchasing agents
  • Internal auditors
  • External auditors

Hand-out Materials:

Attendees will receive presentation slides as well as access to background materials.

Allowable Charges

The costs of webinars sponsored by Federal Fund Management Advisor™ are allowable charges to your federal grants and subgrants. The cost principles issued by OMB under its uniform guidance (and applicable to all types of awardees) state, “The cost of training and education for employee development is allowable” (2 CFR 200.472).

Attend this Live Webinar and Earn up to 1.5 CPE Credits

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This comprehensive resource blends age-old conventional wisdom with the historic changes in OMB’s uniform guidance. You'll benefit from the advice of experts on time and effort reporting, procurement under grants, direct charging certain costs, single audit preparations, subrecipient monitoring and much more. The 500+ page softbound book is a valuable management guide, compliance document and training tool for busy grants managers, program directors, financial officers and auditors at nonprofit organizations, educational institutions, and state and local governments.

This valuable resource will help you and your grants management team:

  • Understand the differences between direct and indirect costs
  • Make the subrecipient vs. contractor determination
  • Realize the full impact of OMB’s emphasis on internal controls
  • Understand which familiar elements of time and effort reporting have been retained in the uniform guidance ... and which are new
  • Know the nuances of requirements for subrecipient assessment and monitoring
  • Understand contract clauses in agreements for procurement under grants
  • Apply the general tests of allowability
  • Understand special issues confronting pass-through entities contracting with foreign organizations
  • Know which clauses flow down when crafting a subaward
  • Understand what is meant by a 10% de minimis indirect cost rate
  • Audit the vulnerabilities in your grants management operation
  • Understand what is meant by audit "resolution"
    ...and much more

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