A To Z Grant Writing Practice Test

In grant management, what distinguishes a prime award from a subaward and who is responsible for compliance?

The prime award-holder is responsible for overall compliance and reporting; subawardees execute parts of the project under a subgrant and must meet requirements. Subawardee has overall control; prime only funds. Subaward is the main grant; prime is the subsidiary. Neither has distinct responsibilities; both share equally.

Correct Answer:

The prime award-holder is responsible for overall compliance and reporting; subawardees execute parts of the project under a subgrant and must meet requirements.

Explanation:

In grant management, the main distinction is about accountability and who carries out the work. The prime award holder is the entity that receives the grant from the funder and bears overall responsibility for the award’s terms, including compliance and Reporting to the funder. Subawards are agreements to pass funds to a partner (the subrecipient) to perform parts of the project under a subgrant, and that subrecipient must meet the requirements of the subaward and applicable regulations. The prime must ensure that subrecipients comply, monitor their performance, and consolidate reporting for the funder. This setup keeps a single point of accountability to the funder while allowing specialized work to be carried out by partners under clear flow-down requirements.

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