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56 <br /> that is a beneficiary of such award.A subrecipient may also be a recipient of other Federal awards <br /> directly from a Federal awarding agency. <br /> III. SUBRECIPIENT CLASSIFICATION <br /> The County must make a case-by-case determination whether an agreement with another government <br /> entity or private entity,that is not a beneficiary, casts the party receiving the funds in the role of a <br /> subrecipient or contractor. 2 CFR 200.331. <br /> A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal <br /> assistance relationship with the subrecipient. Characteristics which support the classification of the non- <br /> Federal entity as a subrecipient include when the non-Federal entity: <br /> (1) Determines who is eligible to receive what Federal assistance; <br /> (2) Has its performance measured in relation to whether objectives of a Federal program were <br /> met; <br /> (3) Has responsibility for programmatic decision-making; <br /> (4) Is responsible for adherence to applicable Federal program requirements specified in the <br /> Federal award; and <br /> (5) In accordance with its agreement, uses the Federal funds to carry out a program for a public <br /> purpose specified in authorizing statute, as opposed to providing goods or services for the <br /> benefit of the pass-through entity. <br /> A contract is for the purpose of obtaining goods and services for the non-Federal entity's own use and <br /> creates a procurement relationship with the contractor. Characteristics indicative of a procurement <br /> relationship between the non-Federal entity and a contractor are when the contractor: <br /> (1) Provides the goods and services within normal business operations; <br /> (2) Provides similar goods or services to many different purchasers; <br /> (3) Normally operates in a competitive environment; <br /> (4) Provides goods or services that are ancillary to the operation of the Federal program; and <br /> (5) Is not subject to compliance requirements of the Federal program as a result of the <br /> agreement,though similar requirements may apply for other reasons. <br /> In determining whether an agreement between a pass-through entity and another non-Federal entity <br /> casts the latter as a subrecipient or a contractor,the substance of the relationship is more important <br /> than the form of the agreement. All of the characteristics listed above may not be present in all cases, <br /> and the pass-through entity must use judgment in classifying each agreement as a subaward or a <br /> procurement contract. <br /> The County will use the above criteria to determine if an agreement involving the expenditure of <br /> ARP/CSLFRF is a contract or subaward.The Chief Financial Officer will document the determination in <br /> the Subrecipient or Contractor Classification Checklist in Appendix 1. (Appendix 1: Subrecipient or <br /> Contractor Classification Checklist.) <br /> If the agreement involves a contractor relationship (including a contract for services),the County must <br /> follow its UG Procurement Policy when entering into a contract. <br /> If the agreement involves a subrecipient relationship, the County must proceed to Sections IV.through <br /> VII. below. <br /> 4 of 39 <br />