A well-drafted subaward agreement is an essential compliance tool for pass-through entities. Federal regulations require subaward agreements to include specific information about the source of federal funding, the parties to the agreement, and the terms and conditions governing the subaward. This checklist highlights the key provisions required by 2 C.F.R. § 200.332(b).

Required Elements of a Subaward Agreement

At a minimum, a subaward agreement should address the following items:

Subrecipient Identification

• Subrecipient’s name (must match the name associated with its unique entity identifier (or “UEI”))
• Subrecipient’s UEI

Subaward, Funds, and Timing

• Federal Award Identification Number (FAIN) of the prime award
• Federal award date
• Name of the federal awarding agency, the pass-through entity, and contact information for the pass-through entity’s awarding official
• Subaward period of performance (start and end date)
• Subaward budget period (start and end date)
• Amount of federal funds obligated under the subaward
• Total amount(s) of federal funds obligated and committed to the subrecipient by the pass-through entity, including the current financial obligation
• Project description required by the Federal Funding Accountability and Transparency Act (FFATA)
• Applicable Assistance Listing (ALN) and title and number(s) 
• Whether the federal award is for research and development
• Applicable indirect cost rate,  including whether the de minimis rate is used

Monitoring and Oversight

• Pass-through entity risk assessment with monitoring rights
• Applicable federal statutes, regulations, award terms and conditions,  and any additional requirements imposed by the pass-through entity 
• Subrecipient certification requirements when requesting payment or submitting financial reports. 2 C.F.R. § 200.415(b)
• Allowable costs per 2 C.F.R. § 200, Subpart E
• Invoicing, payment, and adjustments procedures
• Reporting requirements
• Closeout procedures

Verify the Subrecipient is Not Suspended or Debarred

Before issuing a subaward, pass-through entities should verify that the proposed subrecipient is not suspended, debarred, or otherwise excluded from participation in federal programs. Common methods include checking SAM.gov and requiring the subrecipient to certify that it is eligible to receive federal funding.

Questions about drafting or reviewing subaward agreements? Feldesman’s Federal Grants attorneys regularly advise recipients and pass-through entities on subaward agreements, compliance obligations, monitoring requirements, and other federal grants management issues. Contact Phillip A. Escoriaza or Kevin R. Lutes.

For more practical tips and strategies on federal grant management issues, visit our Grants Practice Shorts page.