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NFP Experts Discuss Sub-recipients vs. Vendors

Consider these insights from OSAP Strategic Partner Clark Schaefer Hackett

Clark Schaefer Hackett (CSH) gets a lot of questions from our not-for-profit (NFP) clients, and we thought it would be valuable to publish our answers. Reach out to us if you would like to see a question in a future newsletter.

Dear CSH:

How do I determine whether federally funded grant expenditures need to be included on my organization’s Schedule of Expenditures of Federal Awards? Issues that have brought up this question include: how we can determine whether the grant represents a subrecipient or vendor/contractor relationship? Will the grant trigger a federal single audit requirement at my organization?


As certain grants can trigger a single audit requirement, it’s vital to determine early on whether a federally funded grant is under a sub-recipient or vendor/contractor relationship. Sub-recipient organizations who expend federal awards above $750,000 during their fiscal year are required to have a single audit and report these expenditures to the federal government on a Schedule of Expenditures of Federal Awards. On the other hand, vendor/contractor organizations are not required to report these expenditures and are not subject to a single audit. The Code of Federal Regulations discusses the following points (2 CFR §200.331):

Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett.

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