Source: https://research.utdallas.edu/wiki/guidelines/opm/subrecipient_monitoring
Timestamp: 2019-04-22 08:39:46+00:00

Document:
Office of Management and Budget (OMB) Uniform Guidance (UG) 2 CFR 200 assigns certain responsibilities to primary recipients of federal awards that, in turn, grant subawards to other organizations. These primary recipients are termed “pass-through entities“.
§200.330, §200.331, and §200.500 require pass-through entities to monitor the activities of subrecipients to ensure that federal awards are used appropriately and that performance goals are achieved. Pass-through entities must also ensure that subrecipients meet any audit responsibilities.
This document provides information to assist The University of Texas at Dallas (UTD) in complying with the above requirements.
All federal award recipients are required to maintain and monitor each subaward or subrecipient supported by funds the institute receives from the federal government. All subcontract documents must describe applicable laws and regulations required to be followed by the subrecipients. All subrecipients expending federal funds of $750,000 or more in grant dollars must perform a fiscal year audit and should be monitored routinely by UTD in accordance with UG.
UTD must ensure compliance with federal laws, regulations, contract and grant agreement provisions and that performance goals are achieved by the subrecipients.
Institutions not subject to the provisions of §200.500 or expend less than $750,000 in federal funds will receive a ranking to determine the frequency of monitoring.
Federal Award: Federal financial assistance and federal cost-reimbursement contracts that non-federal entities receive directly from federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts used to buy goods or services from vendors.
Limited Scope Audit: For purposes of the subrecipient monitoring requirements of UG, limited scope audits only include agreed-upon procedures engagements conducted in accordance with either the AICPA's (American Institute of Certified Public Accountants) generally accepted auditing standards or attestation standards, that are paid for and arranged by a pass-through entity and address only one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/ cost principles; eligibility; matching, level of effort, earmarking; and reporting.
Recipient: A non-federal entity that receives a federal award directly from a federal awarding agency to carry out an activity under a federal program. The term recipient does not include subrecipients.
Research and Development: All research activities, both basic and applied, and all development activities that are performed by a non-federal entity.
Single Audit: An audit which includes both the entity's financial statements and the federal awards.
Subrecipient: A non-federal entity that receives a subaward from a pass-through entity to carry out part of a Federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency.
Uses federal funds to carryout 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.
When determining whether a subrecipient or contractor relationship exists, the substance of the relationship is more important than the form of the agreement. It is not expected that all of the characteristics will be present and judgment should be used in determining whether an entity is a subrecipient or contractor. For example, a provider of professional services could be a subrecipient or contractor, depending on the facts and circumstances.
The University's compliance responsibilities for vendors typically are to ensure that the procurement, receipt, and payment for goods and services comply with laws, regulations, and the provisions of contracts or grant agreements.
Responsibility for following these guidelines lies primarily with Principal Investigators (PIs), their Department Chairs or other direct supervisors, and unit-level fiscal personnel with the general guidance and oversight of the colleges, schools, and divisions.
Maintain documentation of monitoring efforts (copies of emails, phone log, etc).
Review returned certification letters to verify that no audit findings related to federal funds provided by UTD are reported.
If no findings are indicated, OSP will save the certification on the G:drive and no further action is necessary.
Whether or not the audit finding is sustained.
Expected auditee action – repay disallowed costs, make financial adjustments, or take other action.
If the auditee has not completed corrective action, a timetable for follow-up should be given.
Any appeal process available to the auditee.
Retain all documentation in official award files.
The Uniform Guidance effective December 26, 2014 implements new definitions of Contractor and Subrecipient. Generally, the determination of the relationship with an external entity is verified through the institutional review of the proposal narrative, budget justification, and other related proposal documents, including a description of the work to be performed, as well as through discussions with key personnel prior to proposal submission. Once awarded, this form will be used to provide documentation evidence of the decision making process for audit purposes.
§200.93 Subrecipient means a non‐federal entity that receives a subaward from a pass‐through entity to carry out part of a federal program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency.
§200.23 Contractor means an entity that receives a contract as defined in §200.22 Contract. §200.22 Contract means a legal instrument by which a non‐federal entity purchases property or services needed to carry out the project or program under a federal award.
Complete sections one and two of the checklist by marking all characteristics that apply to the outside entity. The section with the greatest number of marked characteristics indicates the likely type of relationship the entity will have with the University. On occasion there may be exceptions to the type of relationship indicated by the completed checklist. In these situations, the substance of the relationship should be given greater consideration than the form of agreement between the University and the outside entity. Section 3 should be used to provide documentation on the use of judgment in determining the proper relationship classification.
Sample letter to be issued when a subrecipient has an audit finding (or findings) related to the University and when their corrective action plan is acceptable. When applicable, the letter should further address situations where costs are disallowed and require repayment, financial adjustments are necessary, or other action is needed. In those cases, the management decision should describe any appeal process available to the auditee.
Those corrective action plans that may not be acceptable to the University should be handled on a case-by-case basis.
We have completed our review of the reporting package for name of organization for the period ending fiscal year end. Based on our review of your corrective action plan for the finding number(s) [list reference number(s) per report] related to the, it appears your plan will reasonably address the related finding(s). If, however, you do not implement your plan as intended or your plan does not adequately address the finding(s) noted, you are required to notify the of further corrective action plans.
If you have any questions, please contact our office at phone number.

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