Pass Through Agreements 1 Pass Through Agreements Areas

Pass Through Agreements 1

Pass Through Agreements Areas of Concern: • Subrecipient or Contractor • Rick Assessment • Capital Improvements • Disposition of Income • Indirect rate • Match • FFATA 2

Pass Through Agreements Non-Federal entity A non-Federal entity may concurrently receive Federal awards as a: • Recipient • Subrecipient • Contractor 3

Pass Through Agreements Non-Federal entity Disbursement of federal award funds by a pass through entity creates a Federal assistance relationship between the pass through entity and the entity receiving pass through funds. 4

Pass Through Agreements Non-Federal entity A non-federal pass-through entity must make case-bycase determinations as to whether pass through funds will be disbursed to a subrecipient or contractor. 5

Pass Through Agreements Non-Federal entity The pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract. 6

Pass Through Agreements Subaward is an award provided by a pass-through entity to a subrecipient to carry out part of a Federal award received by the pass-through entity. 7

Pass Through Agreements Subrecipient • Determines who is eligible to receive Federal financial assistance • Has its performance measured against whether the objectives of the Federal program are met • Has responsibility for programmatic decision making 8

Pass Through Agreements Subrecipient • Has responsibility for adherence to applicable Federal compliance requirements, and • Uses the Federal funds to carry out a program for a public purpose as specified in authorizing statute opposed to providing goods or services for the benefit of the pass-through entity 9

Pass Through Agreements Contract means a legal instrument by which a non. Federal entity purchases property or services needed to carry out the project or program under a Federal award. 10

Pass Through Agreements Contractor • Provides the goods and services within normal business operations • Provides similar goods or services to many different purchasers • Operates in a competitive environment 11

Pass Through Agreements Contractor • Provides goods or services that are ancillary to the operation of the Federal program, and • Is not subject to compliance requirements of the Federal program. 12

Pass Through Agreements Pass Through Entity Responsibilities The State must ensure that their subrecipients comply with all applicable Federal laws, regulations and policies. 13

Pass Through Agreements Pass Through Entity Responsibilities Ensure subrecipients comply with: • Program Regulations • Public Policy Requirements • Audits • Site Visits • Document Reviews 14

Merit Review/Risk Assessment • For competitive grants, the Federal awarding agency must conduct a merit review of proposals submitted by applicants. • The Federal awarding agency must also conduct a risk assessment of applicants. • Grantees who subgrant Federal awards are also required to conduct and document a risk assessment of their subgrantees (2 CFR 200. 205) 15

Risk Assessment A Risk Assessment may include: • Prior experience with the same or similar subawards • Potential for implementation problems • Financial management systems and funds management record • Performance & delivery track record • Staff level / key staff qualifications • Reporting compliance • Review single audit or any other audit reports 16

Pass Through Agreements Subrecipient or Contractor Reference: • 2 CFR 200. 330 • 2 CFR 200. 22 • 2 CFR 200. 92 and 93 17

Capital Projects with Pass Through Entities 18

Background Common WSFR supported project Numerous examples in each region Shooting Ranges, Boat Access projects 19

Authorities 50 CFR § 80. 132 Does an agency have to control the land or water where it completes capital improvements? Yes, an agency must exercise this control by: • Holding title to a fee or • Leasehold interest or • Another Legally Binding Agreement (LBA) 20

Authorities 50 CFR § 80. 133 Does an agency have to maintain acquired or completed capital improvements? Yes. A State fish and wildlife agency is responsible for maintaining capital improvements acquired or completed under a grant to ensure that each capital improvement continues to serve its authorized purpose during its useful life. 21

Authorities 50 CFR § 80. 134 How must an agency use real property? (b) If a grant funds construction of a capital improvement, the agency must use the capital improvement for the purpose authorized in the grant during the useful life of the capital improvement. The agency must do this even if it did not use grant funds to: (1) Acquire the parcel on which the capital improvement is located, or (2) Build the structure in which the capital improvement is a component. 22

Protecting the Investment with a LBA Key Components: • Duration of agreement • Default/repayment conditions if used for other than intended purpose (See 50 CFR 80. 135) • Clearly stated project objectives • Disposition of user fees/income from the facility 23

Protecting the Investment with a LBA Key Components: • Fiscal records maintenance and inspection • Compliance requirements • Conditions for operations and maintenance • Long term monitoring plan 24

Questions? 25