Appendix J to Part 1138 - Terms and Conditions for SUB Article X, “Subrecipient Monitoring and Other Post-Award Administration”
2:1.2.8.6.18.12.64.3.65 : Appendix J
Appendix J to Part 1138 - Terms and Conditions for SUB Article X,
“Subrecipient Monitoring and Other Post-Award Administration”
Unless modified as provided in § 1138.5, a DoD Component's
general terms and conditions must use the following wording for SUB
Article X.
SUB Article X. Subrecipient Monitoring and Other Post-Award
Administration. (DECEMBER 2014)
Section A. General requirement for subrecipient
monitoring. You must do the post-award monitoring of the
subrecipient's activities under each subaward that is needed in
order for you to ensure that:
1. The subrecipient carries out the portion of the substantive
project or program under this award.
2. The subrecipient is using funds under the subaward (including
any cost sharing or matching the subrecipient provides that is
counted as project costs in the approved budget of this award) for
authorized purposes.
3. The subrecipient's performance under the subaward is in
compliance with applicable Federal statutes and regulations, and
the terms and conditions of your subaward.
Section B. Subrecipient monitoring actions.
1. Required monitoring actions under cost-type subawards.
You must, as part of your post-award monitoring of each
subrecipient:
a. Review the financial and programmatic information that your
subaward terms and conditions require the subrecipient to provide,
in accordance with Sections B and C of SUB Article VII of this
award.
b. Follow up and ensure that the subrecipient takes timely and
appropriate action to remedy deficiencies detected through any
means, including audits and on-site reviews.
c. With respect to audits of subrecipients that are required
under FMS Article V of this award:
i. Verify that the subrecipient is audited in accordance with
those requirements, as applicable (note that Section F of SUB
Article IV requires you to include those audit requirements for the
subrecipient in the subaward's terms and conditions).
ii. Resolve and issue a management decision for audit findings
that pertain to your subaward. Doing so is a requirement under
either Section A or B of FMS Article V of this award (Section B
requires that explicitly and Section A does so by implementing OMB
guidance in 2 CFR 200.521, as well as other portions of Subpart F
of that part).
iii. Consider whether you need to adjust your own records
related to this award based on results of audits, on-site reviews
or other monitoring of the subrecipient and, as applicable, notify
the award administration office.
2. Other monitoring actions. OMB guidance in 2 CFR
200.331(e)(1) through (3) describes other actions that may be
useful as part of your subrecipient monitoring program, depending
on the outcomes of the pre-award risk assessment you conducted in
accordance with Section B of SUB Article II.
Section C. Remedies and subaward suspension or
termination. With respect to any subaward under this award, you
must:
1. Consider whether you need to take any remedial action if you
determine that the subrecipient is noncompliant with an applicable
Federal statute or regulation or the terms and conditions of your
subaward, as described in Section D of SUB Article VIII.
2. Provide a notice of termination to the subrecipient if you
terminate its subaward unilaterally for any reason prior to the end
of the period of performance.
3. In the case of suspension or termination of a subaward prior
to the end of the period of performance, allow or disallow subaward
costs in accordance with Section D of OAR Article III.
Section D. Subaward closeout.
1. You will close out each subaward when you either:
a. Determine that the subrecipient has completed its
programmatic performance under the subaward and all applicable
administrative actions; or
b. Terminate the subaward, if you do so prior to the end of the
subaward's period of performance.
2. With respect to the closeout of each subaward:
a. You must pay the subrecipient promptly for allowable and
reimbursable costs.
b. Consistent with the terms and conditions of the subaward, you
must make a settlement for any upward or downward adjustments to
the Federal share of costs after you receive the information you
need from the subrecipient to close out the subaward.
c. You should complete the closeout of the subaward no later
than one year after you receive and accept the final reports and
other information from the subrecipient that you need to close out
the subaward.