Pass-Through Entities

Pass-through Entity

A Non-Federal entity that provides a Federal award to a subrecipient to carry out a Federal program. The subaward subrecipient provides services that directly fulfill a deliverable or work product requirement of ACC’s.

As a pass-through entity, ACC provides subgrants to subrecipients, accepting the following responsibilities:

1. Pass along to the subrecipients all of the relevant details of the federal award (CFDA, Award name & number, awarding agency, etc.)
2. Advise the subrecipient of all program requirements and contract provisions imposed by the federal agency, as well as any additional requirements imposed by ACC.
3. Monitor the subrecipients to ensure compliance with all requirements.
4. Ensure that subrecipients (expending more than $300,000 or more in Federal awards during a fiscal year) have met all of the audit requirements for that year.
5. Issue a management decision on audit findings within six months after receipt of the subrecipient’s audit report, ensuring that the subrecipient takes appropriate and timely corrective action.
6. Consider whether subrecipient audits necessitate adjustment of ACC’s records.
7. Require each subrecipient to permit ACC and auditors to have access to financial statements as needed for compliance.

The pass through object code is 6583

CFR, Title 2, Subtitle A, Chapter II, §200.331 Requirements for pass-through entities