26 July 2011
Recipients of federal grant awards often execute their grant-funded projects using the help of other organizations with specialized expertise. In general, these organizations may be classified either as grant award subrecipients or as vendors (which are also sometimes referred to as contractors). Each type of entity can help fulfill important project needs, but it is vitally important that a grant award recipient carefully consider the role of each of its partner entities before classifying it as a subrecipient or vendor. Failure to do so may put the recipient at risk for audit findings, create reporting and other compliance violations, render project-related costs ineligible for grant funding, and expose the recipient to charges of waste, fraud or abuse. Any of these occurrences may impair the recipient’s eligibility for future grants.