What are subawards in grants management?

Subawards in grants management refer to financial assistance that a primary grant recipient provides to another entity to carry out a portion of the work specified in the primary grant. This may include funding to non-profit organizations, educational institutions, or other eligible entities that will perform specific tasks or projects related to the objectives of the original grant. The primary recipient remains responsible for the overall management and administration of the grant but delegates certain responsibilities and funds to the subrecipient through the subaward.

This definition is critical to understanding the structure of grant funding and compliance, as subawards must adhere to the same federal regulations and requirements as the primary funding agreement. This ensures that all entities involved in the implementation of a grant are accountable and operate under the granted conditions.

The other options do not accurately describe subawards. Grants to private companies, funds reserved for administrative costs, and payments made to the main funding agency are distinct aspects of grants management and do not encompass the concept of subawards, which specifically involves the transfer of funds for project execution to another entity rather than operational support or administrative functions.