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A subgrant agreement refers to a legal contract between a primary grantee and a subrecipient. The primary grantee is typically a government agency or an organization that has received funding from a grant provider such as a foundation or a corporation.

A subrecipient refers to an individual or an organization that receives a portion of the grant funding from the primary grantee. The subrecipient is required to use the funding for specific purposes outlined in the grant proposal.

The subgrant agreement establishes the relationship between the primary grantee and the subrecipient. It outlines the terms and conditions of the subaward, including the scope of work, budget, timeline, and reporting requirements.

The subgrant agreement also defines the roles and responsibilities of both parties involved. The primary grantee is responsible for monitoring the subrecipient`s performance and ensuring that they comply with all the requirements outlined in the subgrant agreement.

The subrecipient, on the other hand, is responsible for meeting all the objectives and delivering all the outputs as specified in the agreement. They must adhere to all the reporting requirements and submit progress reports to the primary grantee.

Furthermore, the subgrant agreement includes provisions for financial management, including budgeting, accounting, and audits. The subrecipient must maintain accurate financial records, ensure that the funds are used for the intended purposes, and follow all the financial guidelines set forth in the agreement.

In conclusion, a subgrant agreement is a vital document that governs the relationship between the primary grantee and the subrecipient. It outlines the terms and conditions of the subaward, defines the roles and responsibilities of both parties, and provides a framework for financial management. As such, it is essential to ensure that the subgrant agreement is well-drafted and adhered to by both parties involved.