Section 600.237 - Subgrants(a)States. States shall follow state law and procedures when awarding and administering subgrants (whether on a cost reimbursement or fixed amount basis) of financial assistance to local and Indian tribal governments. States shall:(1) Ensure that every subgrant includes any clauses required by Federal statute and executive orders and their implementing regulations;(2) Ensure that subgrantees are aware of requirements imposed upon them by Federal statute and regulation;(3) Ensure that a provision for compliance with § 600.242 is placed in every cost reimbursement subgrant; and(4) Conform any advances of grant funds to subgrantees substantially to the same standards of timing and amount that apply to cash advances by Federal agencies.(b)All other grantees. All other grantees shall follow the provisions of this subpart which are applicable to awarding agencies when awarding and administering subgrants (whether on a cost reimbursement or fixed amount basis) of financial assistance to local and Indian tribal governments. Grantees shall:(1) Ensure that every subgrant includes a provision for compliance with this subpart;(2) Ensure that every subgrant includes any clauses required by Federal statute and executive orders and their implementing regulations; and(3) Ensure that subgrantees are aware of requirements imposed upon them by Federal statutes and regulations.(c)Exceptions. By their own terms, certain provisions of this subpart do not apply to the award and administration of subgrants:(3) The letter-of-credit procedures specified in Treasury Regulations at 31 CFR part 205 , cited in § 600.221 ; and(4) Section 600.250 .Reports, Records Retention, and Enforcement
53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 1994, as amended at 61 FR 7166, Feb. 26, 1996