Federal Subgrant Requirements
- Federal agencies, state governments, and even local or city governments that provide grants can maintain a list of federal subgrant requirements, which are stipulations or requirements that the grant recipient must abide by during the funding period. Failure to meet an agency's regulations can result in a required repayment of grant money or a stop payment on funds committed to your organization.
- The term subgrantee refers to the legal recipient of the subgrant award. This is when federal funds may be distributed through a federal, state or local agency. The subgrantee and the agency providing the award must follow the subgrant requirements.
- Agencies that provide daily activities related to a project must follow all state laws and procedures, as well as IRS regulations on reporting income and charitable contributions. Any full-time staff and volunteers should understand the subgrant requirements to ensure ongoing compliance. Contractors should also maintain an understanding of the subgrant guidelines.
- Organization employees and officials must avoid conflicts of interest, in which they or immediate family may benefit from a decision or transaction personally or financially. If a conflict of interest arises, then the subgrantee must notify the funding agency in writing. Officials or employees must avoid transactions that create an appearance of using a position for private gain or preferential treatment; lead to loss of independence in decision making; lead to decisions without using proper channels; or affect government integrity.
- Based on federal regulations, a subgrantee must comply with nondiscrimination and offer equal opportunity employment, meaning that an organization cannot deny employment based on race, gender, religion, sexual orientation, origin, age, disability or Vietnam era status. A nondiscrimination clause should remain in sight of employees and potential applicants.
- As a subgrantee, you must provide an accurate taxpayer identification number to the government. The number will either be your taxpayer identification number (EIN) or your social security number, depending on the type of organization or business.
- Subgrantee must not have any debt owed to the state government.
- Debarment and Suspension certification is required prior to being awarded a subgrant. Federal regulations focus on subgrantees maintaining solid programs and activities by conducting business with responsible individuals. As part of the certification process, the subgrantee signs a form that none of the principal executives are presently debarred, suspended, declared ineligible or excluded from consideration because of a federal decision.
- Subgrantees must comply with both state and federal laws regarding a drug-free workplace in order to maintain eligibility for federal funding. If receiving funding as an individual, you must certify that your conduct will remain drug free.
- When signing a subgrant agreement, the subgrantee must comply with the Department of Justice and its restrictions on lobbying, which means to pay for the influence of an officer or employee of any agency, anyone in Congress or other governmental positions. Signing the agreement will certify that your organization has not made and will not make a payment for lobbying. If nonfederal funds have been used, then you must complete a disclosure of lobbying activities. If the federal funding request is in excess of $100,000, then you must file a disclosure form that states the name and address of the entity, the federal grant program name, federal grant award number, federal award amount, and the name and address of a lobbying registrant. This requirement does not apply to tribal organizations or federally registered tribal governments.