Managing relationships with external partners is an important part of administering sponsored projects. Understanding the difference between subrecipients and vendors, and knowing your responsibilities for oversight and compliance, helps ensure smooth project management and adherence to sponsor and University requirements.
A key step in managing external partners on sponsored projects is determining whether an entity receiving award funds from UMB is a subrecipient or a vendor.
UMB, as the pass-through entity (prime applicant or awardee), is responsible for classifying each arrangement. The classification is based on the nature of the agreement and the criteria in 2 CFR §200.331. This determination is made at the proposal stage and reviewed again before any subaward or procurement is initiated.
Use the Subrecipient or Vendor Checklist to guide your determination.