§ 200.332 - Requirements for pass-through entities.

§ 200.332 Requirements for pass-through entities.

All A pass-through entities entity must:

(a) Verify that the subrecipient is not excluded or disqualified in accordance with § 180.300. Verification methods are provided in § 180.300, which include confirming in SAM.gov that a potential subrecipient is not suspended, debarred, or otherwise excluded from receiving Federal funds.

(b) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the

following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the

information provided below. A pass-through entity must provide the best available information when some of the information below is unavailable. A pass-through entity must provide the

best information available to describe the Federal award and subaward

unavailable information when it is obtained. Required information includes:

(1) Federal award identification.

(i) Subrecipient's name (

which

must match the name associated with its unique entity identifier);

(ii) Subrecipient's unique entity identifier;

(iii) Federal Award Identification Number (FAIN);

(iv) Federal Award Date

(see the definition of Federal award date in § 200.1 of this part) of award to the recipient by the Federal agency

;

(v) Subaward Period of Performance Start and End Date;

(vi) Subaward Budget Period Start and End Date;

(vii) Amount of Federal Funds Obligated

by this action by the pass-through entity to the subrecipient

in the subaward;

(viii) Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity, including the current financial obligation;

(ix) Total Amount of the Federal Award committed to the subrecipient by the pass-through entity;

(x) Federal award project description, as required

to be responsive to

by the Federal Funding Accountability and Transparency Act (FFATA);

(xi) Name of the Federal

awarding

agency, pass-through entity, and contact information for awarding official of the

Pass

pass-through entity;

(xii) Assistance Listings title and number

and Title

; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at the time of disbursement;

(xiii) Identification of whether the Federal award is

R&D

for research and development; and

(xiv) Indirect cost rate for the Federal award (including if the de minimis rate is

charged) per

used in accordance with § 200.414).

(2) All requirements of the subaward, including requirements imposed by

the pass-through entity on the subrecipient so that the

Federal

award is used in accordance with Federal

statutes, regulations, and the terms and conditions of the Federal award;

(3) Any additional requirements that the pass-through entity imposes on the subrecipient

in order

for the pass-through entity to meet its

own responsibility to the Federal awarding agency including identification of any required

responsibilities under the Federal award. This includes information and certifications (see § 200.415) required for submitting financial and performance reports that the pass-through entity must provide to the Federal agency;

(4) Indirect cost rate:

(i) An approved

federally recognized

indirect cost rate negotiated between the subrecipient and the Federal Government. If no approved rate exists,

the

a pass-through entity must determine the appropriate rate in collaboration with the subrecipient

, which is

. The indirect cost rate may be either:

(A)

The negotiated

An indirect cost rate negotiated between the pass-through entity and the subrecipient

; which can

. These rates may be based on a prior negotiated rate between a different

PTE

pass-through entity and the

same

subrecipient

. If basing the rate on a previously negotiated rate,

, in which case the pass-through entity is not required to collect information justifying

this

the rate

,

but may elect to do so; or

(B) The de minimis indirect cost rate.

(ii) The pass-through entity must not require the use of

a

the de minimis indirect cost rate if the subrecipient has

a Federally

an approved indirect cost rate negotiated with the Federal Government. Subrecipients

can

may elect to use the cost allocation method to account for indirect costs in accordance with § 200.405(d).

(5) A requirement that the subrecipient permit the pass-through entity and auditors to

have

access

to

the subrecipient's records and financial statements

as necessary

for the pass-through entity to

meet the requirements of this part

fulfill its monitoring requirements; and

(6) Appropriate terms and conditions concerning the closeout of the subaward.

(

b

c) Evaluate each subrecipient's fraud risk and risk of noncompliance with

Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining

a subaward to determine the appropriate subrecipient monitoring described in

paragraphs

paragraph (

d

f)

and (e)

of this section

, which may include consideration of such factors as

. When evaluating a subrecipient's risk, a pass-through entity should consider the following:

(1) The subrecipient's prior experience with the same or similar subawards;

(2) The results of previous audits

including

. This includes considering whether or not the subrecipient receives a Single Audit in accordance with

Subpart

subpart F

of this part,

and the extent to which the same or similar

subaward has

subawards have been audited as a major program;

(3) Whether the subrecipient has new personnel or new or substantially changed systems; and

(4) The extent and results of any Federal

awarding

agency monitoring (

e.g.

for example, if the subrecipient also receives Federal awards directly from

a

the Federal

awarding

agency).

(

c) Consider imposing specific subaward conditions upon a subrecipient if appropriate

d) If appropriate, consider implementing specific conditions in a subaward as described in § 200.208 and notify the Federal agency of the specific conditions.

(

d

e) Monitor the activities of

the

a subrecipient as necessary to ensure that the

subaward is used for authorized purposes, in compliance

subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward

; and that subaward performance goals are achieved. Pass-through entity monitoring of the subrecipient must include

. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must:

(1)

Reviewing

Review financial and performance reports

required by the pass-through entity

.

(2)

Following-up and ensuring

Ensure that the subrecipient takes

timely and appropriate

corrective action on all

deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward.(3) Issuing a management decision for applicable

significant developments that negatively affect the subaward. Significant developments include Single Audit findings related to the subaward, other audit findings, site visits, and written notifications from a subrecipient of adverse conditions which will impact their ability to meet the milestones or the objectives of a subaward. When significant developments negatively impact the subaward, a subrecipient must provide the pass-through entity with information on their plan for corrective action and any assistance needed to resolve the situation.

(3) Issue a management decision for audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by § 200.521.

(4)

The

Resolve audit findings specifically related to the subaward. However, the pass-through entity is not responsible for resolving cross-cutting audit findings

specifically related

that apply to the subaward and

not responsible for resolving crosscutting findings

other Federal awards or subawards. If a subrecipient has a current Single Audit report

posted in the Federal Audit Clearinghouse

and has not

otherwise

been excluded from

receipt of

receiving Federal funding (

e.g.

meaning, has not been debarred or suspended), the pass-through entity may rely on the subrecipient's cognizant agency for audit

agency

or

cognizant

oversight agency for audit to perform audit follow-up and make management decisions related to cross-cutting audit findings in accordance with section § 200.513(a)(

3

4)(

vii

viii). Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and award-specific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward.

(

e

f) Depending upon the pass-through entity's assessment of the risk posed by the subrecipient (as described in paragraph (

b

c) of this section), the following monitoring tools may be useful for the pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals:

(1) Providing subrecipients with training and technical assistance on program-related matters;

and

(2) Performing

on-site reviews of

site visits to review the subrecipient's program operations; and

(3) Arranging for agreed-upon-procedures engagements as described in § 200.425.

(

f

g) Verify that

every

a subrecipient is audited as required by

Subpart

subpart F of this part

when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in § 200

.

501.

(

g

h) Consider whether the results of

the

a subrecipient's

audits

audit,

on-

site

reviews

visits, or other monitoring

indicate conditions that

necessitate adjustments to the pass-through entity's

own

records.

(

h

i) Consider taking enforcement action against noncompliant subrecipients as described in § 200.339

of this part

and in program regulations.

[85 FR 49543, Aug. 13, 2020, as amended at 86 FR 10440, Feb. 22, 2021]