437.37—Subgrants.
(a) States.
States must 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 must:
(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 § 437.42 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 SSA.
(b) All other grantees.
All other grantees must follow the provisions of this part 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 must:
(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 part 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 § 437.21; and