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A governmental entity may pass federal grant funds to another entity. The second entity, known as the “subrecipient” of the grant funds, may be another governmental entity or a non-profit organization. In this situation, the original recipient of the funds has a responsibility to monitor the subrecipient to ensure the grant funds are being used for authorized purposes and as required by the grant agreement and applicable regulations.

These monitoring activities should occur throughout the year and may take various forms, such as:

  • Reviewing financial and performance reports submitted by the subrecipient;
  • Performing site visits; and
  • Maintaining regular contact with the subrecipient and inquiring about program activities.

The Office of Management and Budget (OMB) Circular A-133, Compliance Supplement 2015, Part 3, provides detailed information on subrecipient monitoring. OMB Circular A-133 Compliance Supplement 2015 can be found at:


Date this Avoiding Pitfall was most recently published: 08/07/2015

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