Award Risk
EXPLANATIONS
200.330 a.4 Is responsible for adherence to applicable Federal program
requirements specified in the Federal award;
Yes No
If the funding is given to the
entity with a purpose of com-
pleting the goal of the grant, the
recipient will be required to en-
sure the entity adheres to feder-
al grant program guidance. The
recipient will also be required
to monitor the activities of the
entity per Uniform Guidance
section 200.331. The entity as-
sumes little risk should federal
grant guidance not be met. The
risk falls with the recipient.
If the recipient directs specific
activities to be completed by
the entity, by providing goods or
services, the risk falls on the en-
tity to deliver, per the agreement
terms. In this case, the entity
would not be required to adhere
to the federal grant program
requirements, just the terms
and conditions in the agreement
with the recipient.
a. Funding to the entity depends on the entity’s ability to
best meet the objectives of the award. Although performance
is measured against federal award objectives, the entity
assumes little risk if the objectives are not met.
200.330 b.5
Is not subject to compliance requirements of the Federal
program as a result of the agreement, though similar
requirements may apply for other reasons.
Yes No
b. The entity assumes financial risk if they fail to deliver the
goods or services agreed upon.
Criteria for Selection
200.330 a.5 In accordance with its agreement, uses the Federal funds to
carry out a program for a public purpose specified in
authorizing statute, as opposed to providing goods or
services for the benefit of the pass-through entity.
Yes No
a. Does the entity demonstrate a financial or public need for
funding to carry out a project or provide a service?
a. Will the entity be contributing match or other non-Federal
funding in support of the award?
OR
200.330 b.3
Normally operates in a competitive environment;
b. Were procurement policies applied in the selection of the
entity?
Contractor
If you selected “yes” to ANY item a, this is an indicator of a subrecipient relationship.
If you selected “yes” to ANY item b, this is an indicator of a contractor relationship.
If the entity was chosen because
it has the best widgets or service
for the price, it has a contractor
relationship with the recipient.
Typically, a procurement method
is followed, such as a compet-
itive bid or RFP process. In this
type of agreement, the entity
usually makes a profit by deliv-
ering this good or service to the
recipient. Payments to contrac-
tors are typically made based on
contract terms.
Conversely, if the entity was
chosen because it was already
providing a service within the
guidelines of the grant program
and wants to partner with the
recipient to expand the delivery
or assist in meeting the goal of
the grant, it may be a subrecipi-
ent. Typically, the entity may not
make a profit and may provide
its own non-federal funding as
match or cost sharing. The entity
may have been chosen through
an application process or an
announcement of funding, as
opposed to the procurement pro-
cess described above. Payment
to a subrecipient is generally
based on actual expenses unless
awarded on a fixed amount
subaward (2 CFR 200.332). It is
typical of subrecipients to submit
budgets, financial reports, or
copies of invoices to the recipi-
ent, to document activity.
www.agacgfm.org
OR
Contractor
If you selected “yes” to item a, this is an indicator of a subrecipient relationship.
If you selected “yes” to item b, this is an indicator of a contractor relationship.
a. Will the entity be reimbursed for only actual costs
incurred?
b. Was the entity’s proposed price a factor in the selection
process?
b. Will the entity derive a profit from the agreement?
3
EXPLANATIONS
Yes No
Yes No
Subrecipient
Subrecipient
Yes No
Yes No
Yes No
