Subrecipient Annual Report (SAR)

If you received a federal grant award through the State of Vermont, then you must complete the Subrecipient Annual Report (SAR) annually as a condition of this award. It helps track federal funds and determine whether or not your municipality met the threshold that requires a Single Audit.  

The  Takeaways

• Mark your calendar and add the SAR to your list of tasks for fiscal year end
• Must be completed within 45 days of the end of your FY
• If you get a 2^nd notification letter, you are already delinquent
• If you see a discrepancy in the list of grants, contact the VT Department of Finance & Management
• FEMA PA funds are considered “expended” only when FEMA has approved a Project Worksheet and obligated the funds
• Questions or need help:
  • SAR FAQ Page
  • Email: FIN.Subrecipient@vermont.gov

The Basics

• A Subrecipient is an organization that receives a grant or loan of federal funds from a non-federal organization, such as the State of Vermont.
• The SAR only relates to Federal Funds, not State Funds
• It is based on the dollar amount of expenditures (not the award amount)
• Due annually within 45 days of the end date of your fiscal year
• It is a “condition” (requirement) of your grant agreements with the State of Vermont - see State Grant Agreement Attachment C – Standard Provisions for Contracts and Grants Item 31.A.

The Musts

• Must be submitted electronically (no more paper submissions!)
• Must include all your federal expenditures – those passed through the State (subrecipient) AND those received directly from a federal agency (recipient)*
• Must be submitted regardless of the amount of your federal expenditures
• Must have a Single Audit if you meet/exceed the federal expenditure threshold of $1,000,000 or more during your most recently completed fiscal year

* FEMA Public Assistance (PA) funds are not considered “expended” until  FEMA has approved the Project Worksheet (PW) and obligated funds. 

Will I Be Notified?  

• Yes. You will receive a notification letter within two (2) weeks after your fiscal year end date.  
• This letter contains:
  • Steps to Complete:
  1. Determine if a Single Audit is required ($750K/$1M federal expenditure thresholds)
  2. Submission Responsibility
  3. Completing the SAR
  • A list of grants currently identified in the Vermont Statewide Grants database at the end of the letter (includes ALN,s grant names, #s and total award amounts)
• A sample of this notification letter can be found HERE.

What Happens If You Don't Do It?

• You will receive a notification letter immediately after the 45-day window closes
• It looks almost exactly like your original notification letter but with a few additional critical details within it. 
• Your town is now in a “delinquent” status*
• Delinquent status means:
  • Ineligible to receive future grant awards
  • Delay reimbursements from grants until resolved
  • Request for repayment of the grant.
• A sample of the delinquent letter can be found HERE.
   

How Will I Know If My Grants Are Federal Funds?

Look at your grant agreement:

Part 1 – Grant Award Detail*:

Section I – General Grant Information

Section II – Subrecipient Award Information

Section III – Funding Allocation

Section IV – Contact Information

* A sample of the full Part 1 Grant Award Detail can be found HERE. 

The State of Vermont has a SAR Frequently Asked Questions (FAQs) page on their website.  Please note some of the information on their page might be outdated.