C. SUBAWARDS ARE GENERALLY PROHIBITED

Generally, a clinic may not make a subaward of LITC grant funds to another organization or individual. A subaward is payment to another organization or contractor to deliver a key component of the program such as controversy representation or ESL education. Subawards may be considered if the award of a subgrant is likely to assist a grant recipient with expanding coverage to an underserved or uncovered area. Any subaward must be included in the application and approved in writing by the Director of the LITC Program. A subaward differs from payments made to a vendor or provider for providing goods or services to the clinic, which is permissible. For example, unless authorized, an LITC may not pay another organization to prepare and deliver its ESL educational activities. However, the clinic could pay a firm to translate its educational materials into another language or hire an interpreter to assist with delivery of education.

If a sponsoring organization is located outside the geographic service area and has capacity to provide services remotely, such as representation and advocacy services, a subaward to a local organization may be appropriate when local presence is needed to facilitate client contact and provide in-person education and outreach, and the area to be served is either underserved or uncovered.

NOTE: In accordance with 2 CFR § 25.300(a), a clinic may not make a subaward unless the subrecipient has obtained and provided a Unique Entity Identifier (the identifier assigned by SAM.gov). Grant recipients that make subawards must monitor and manage the subaward recipient per the requirements in 2 CFR § 200.332 and may have other administrative and reporting responsibilities. Organizations that provide subawards assume the responsibilities of the federal grantor regarding the subaward recipient.