Federal Sub Grant Requirements

• When an agency or organization, known as a subgrantee, accepts federal grant funds, it must follow a set of rules or standards associated with that particular grant. If a subgrantee does not comply with subgrant requirements, consequences can include "the withholding or disallowance of grant payments, the reduction or termination of the grant award and/or the denial of future grant awards," according to the State of Ohio's "Standard Federal Subgrant Conditions Handbook." Though each federal grant has its own subgrant rules, some are commonly included.

Conflicts of Interest

• Conflicts of interest, whether in matters of advice or appearance, are not allowed under federal subgrant requirements. A conflict of interest can be any situation in which an official or employee of the subgrantee organization gains personal or financial interest from the grant. Subgrantees are also required to avoid any situation or action that may create the appearance of partiality, preferential treatment, using a public position for private gain or loss of government integrity.

Certifications and Assurances

• Subgrantees must certify that they will follow the federal granting agency's civil rights and non-discrimination policies. If a grant is more than $100,000, subgrantees must certify that the organization has not been convicted or charged of certain crimes, had a previous government grant terminated for cause or been debarred from conducting business with the federal government. If a grant is more than $500,000, the subgrantee must also provide an Equal Opportunity Employment plan, which includes assurance that the subgrantee "shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, national origin, disability, age or Vietnam-era status," according to the State of Ohio.

Drug-Free Workplace

• The subgrantee must agree to follow all federal and state laws related to drugs in the workplace, based on the Drug-Free Workplace Act of 1989. State government subgrantees may have to submit a drug-free certification. Non-state agency subgrantees must "make a good faith effort to ensure that all Subgrantee employees, while working on State property, will not purchase, transfer, use or possess illegal drugs or alcohol or abuse prescription drugs in any way," according to the State of Ohio.

Lobbying

• Subgrantees must certify that they will follow the federal government's restrictions on lobbying. These include activities such as the use of grant money to try and influence government officials into making an award, cooperative agreement or contract. If a grant is more than $100,000, subgrantees must sign a lobbying disclosure form detailing any and all funds, including non-federal, that have been used for lobbying activities.