Sub-Award Management
Introduction
| Developing
Your Sub-Award Plan
Designing Sub-Award Programs Overview
Let’s look at a few key definitions before we get started. According to the Department of Health and Human Services Code of Federal Regulations (45 CFR Part 74), a sub-award is defined as "an award of financial assistance in the form of money, or property in lieu of money, made under an award by a recipient to an eligible subrecipient."1 Also from 45 CFR Part 74, a subrecipient (or sub-awardee) is defined as "the legal entity to which a sub-award is made and which is accountable to the recipient for the use of funds provided."2
Along with the provision of training and technical assistance, the granting of sub-awards is a demonstrated way for intermediary organizations to assist smaller organizations in building their capacity. The Department of Health and Human Services, through its Compassion Capital Fund (CCF) grant program, defined capacity building for faith-based and community organizations as "…increasing their effectiveness, enhancing their ability to provide social services, expanding their organizations, diversifying their funding sources, and creating collaborations to better serve those in need."3
As an intermediary, one of your key goals is to help build the capacity of smaller faith-based and community organizations. Combining a well-designed training and technical assistance plan along with a sound and detailed sub-award plan will put your organization on the road to achieving that goal. For more information on sub-award planning, see the Delivering Training and Technical Assistance and Identifying and Promoting Effective Practices guidebooks, part of the National Resource Center’s Intermediary Development Series. These guidebooks can help you in developing a comprehensive plan to provide both sub-awards and comprehensive training and technical assistance, including information on effective practices, to the faith-based and community organizations that you serve.
Why Develop a Sub-Award Plan?
Because a sub-award program involves the granting of
Federal funds from a Federal grantee to subrecipients,
most if not all Federal grant programs involving sub-awards
require grantees to develop and submit sub-award plans
for approval to the program’s Federal Project
Officer. The program announcement for the grant program
usually contains the necessary information and elements
required for the sub-award plan. Additional information
may be supplied by the Federal Project Officer to assist
intermediaries in developing plans that meet Federal
guidelines and requirements as well as particular grant
program purposes.
For example, in the 2003 CCF program announcement, intermediary organizations were asked to develop "a basic outline of its sub-award approach."4Intermediary organizations that receive CCF grants are required "to develop, with guidance from and in consultation with ACF (Administration for Children and Families), a detailed plan for this process within 60 days of receipt of award under this announcement."5
Other Federal agencies, particularly the Department of Labor, also offer grant programs for intermediary organizations that include sub-award plans as a part of the application and program implementation requirements. As of the writing of this guidebook, the Department of Labor has three grant programs designated to fund intermediary organizations. Each of the grant programs requires the intermediary organizations to sub-grant significant portions of the award to eligible local faith-based and community organizations6and to outline their plans to provide sub-awards in their grant applications.
Introduction
| Developing
Your Sub-Award Plan