Learn the essentials of subrecipient monitoring under the Uniform Guidance. Discover best practices, compliance tips, and how training and webinars can help you manage subawards effectively.
When your organization passes federal funds down to another entity—whether it’s a nonprofit partner, a university, or a local government—that entity becomes a subrecipient. As the prime recipient, you’re responsible for ensuring the subrecipient follows all federal rules, including the Uniform Guidance (2 CFR Part 200).
In other words: if your subrecipient isn’t compliant, you could be held accountable.
That’s why subrecipient monitoring is one of the most critical parts of federal grant management. Done well, it strengthens partnerships, reduces risk, and ensures the funds achieve their intended impact. Done poorly, it can trigger audit findings, questioned costs, and even repayment of federal funds.
Many organizations turn to grant management training and webinars to build confidence in handling these responsibilities. Learning the monitoring requirements step by step gives teams practical tools to stay compliant.
Under
2 CFR 200.332, prime recipients must:
- Evaluate risk before awarding funds to a subrecipient.
- Clearly document expectations in the subaward agreement.
- Monitor performance throughout the project, not just at year-end.
- Ensure corrective actions are taken when issues arise.
The key point: monitoring is not optional. It’s a regulatory requirement covered in most grant management courses because of its importance.
1. Start With a Risk Assessment
Before issuing a subaward, assess the subrecipient’s experience, prior performance, and audit history. You may add certain special conditions in the agreement based on the information you gather, and the level of risk associated with each potential partner.
2. Write Clear Subaward AgreementsSpell out requirements for reporting, financial documentation, and compliance with Uniform Guidance.
3. Stay in Touch Regularly
Monitoring isn’t just paperwork. Regular check-ins and documentation reviews help you stay on track. Technical assistance support is a great way to ensure your subrecipients receive the appropriate training and guidance to manage the grants work. You might need to impose different actions if the subrecipient is not meeting expectations.
4. Conduct On-Site or Virtual Reviews
Periodic reviews verify correct fund use and strengthen partnerships.
5. Document Everything
Auditors expect to see clear evidence of monitoring.
Subrecipient monitoring is more than a box to check—it’s a safeguard for your organization and federal funds. By following best practices and investing in federal grant management training courses or webinars, your team can build the skills and confidence needed to monitor subrecipients effectively.
If your team could use more guidance, our
federal grant management training and webinars cover subrecipient monitoring step by step—with practical tools and real-world examples to help you stay compliant. Explore our upcoming courses to strengthen your oversight process.
