If you use your federal grant funds to pay another party, the entity you pay may be a subrecipient rather than a vendor. If you have a subrecipient of your grant, you are required to provide additional information to the subrecipient as well as maintain additional records. It is not always easy to determine whether you are paying a subrecipient or a vendor. Some entities have characteristics of both; some may not readily fall into either category. Some areas to consider when determining whether your payment is being made to a subrecipient or a vendor are:
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