What should be included in a subrecipient agreement?

• A. Scope, deliverables, budget, reporting requirements, compliance with terms, and audit rights.
• B. Staff training schedule.
• C. Marketing plan with external vendors.
• D. Only the project title.

Answer: (A)

When forming a subrecipient agreement, the essential piece is clearly defining what work will be done and how it will be managed and funded. This includes setting the scope and deliverables so everyone knows what must be produced and by when. The budget ties the funded activities to allowable costs and helps prevent overspending or misallocation. Reporting requirements establish how progress and financial information will be communicated, which keeps the oversight team informed. Compliance with terms ensures the subrecipient adheres to the prime award and applicable laws and program requirements. Audit rights provide the authority to review records and verify that funds are used appropriately and outputs meet the agreed standards. Together, these elements create a solid framework for accountability, governance, and smooth collaboration.

A staff training schedule, while potentially useful, does not by itself define the obligations, oversight, and financial controls important for a subrecipient relationship. A marketing plan with external vendors is not central to the agreement between the prime recipient and the subrecipient. Relying on only the project title fails to establish any meaningful terms or safeguards.