Monitor Federal Grant Subrecipients

A governmental entity may pass federal grant funds to another entity, known as the “subrecipient” of the grant funds. A Subrecipient 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 federal Office of Management and Budget (OMB) provides detailed information on subrecipient monitoring. You may access the 2021 OMB Compliance Supplement on the White House website.

Date this Avoiding Pitfall was most recently published: 7/1/2022