This Financial Guide is provided for the use of all recipients and their subrecipients of Federal grant programs administered by the Office of Justice Programs (OJP). We have developed the Guide to serve as a compilation of the various laws and regulations governing Department of Justice grants financial management and administration.

Direct Recipients

• A direct recipient is an individual or entity that receives funds directly from OJP (for example, via block, formula, or discretionary grants or cooperative agreements).
• Direct recipients (except for those who receive funds via a contract) are required to adhere to applicable law of their jurisdiction, and the financial and administrative rules summarized in this Guide.  Other programmatic and technical requirements (for example, as set out in award conditions or contained in program-specific guidelines) may also apply. 
• Direct recipients are required to adhere to the requirements of Office of Management and Budget (OMB) circulars and Federal Government-wide common rules contained in the Code of Federal Regulations (CFR).

Subrecipients

• A subrecipient is any organization receiving Federal funds from a direct recipient of Federal funds.
• Subrecipients are required to adhere to the applicable law of their jurisdiction and the financial and administrative rules summarized in this Guide. The direct recipient may also impose additional financial and administrative requirements.
• Subrecipients are also required to adhere to the requirements of Office of Management and Budget (OMB) circulars and Federal Government-wide common rules contained in the Code of Federal Regulations (CFR).

Individuals

• Any individual who works for a direct recipient or subrecipient should use this Guide as a reference for financial and administrative management of OJP-funded grant programs or projects.
• These individuals may include administrators, financial management specialists, grants management specialists, accountants, and auditors.
• This Guide may also be used as a training resource for new employees.

Contractors

• This Guide is not for the direct use of entities or individuals contracting directly with OJP.
• However, direct recipients should ensure that they are monitoring any organizations they have contracted with to make sure they are in compliance with Federal financial management requirements.

FINANCIAL MANAGEMENT TIP

When determining whether an activity has been subcontracted or subawarded, the legal document is NOT the driving determinant. The substance of the activity that has been contracted or subawarded will be the major factor considered. If you delegate program activities to another entity, that delegation will generally be considered a subaward. On the other hand, if you purchase or procure goods or services from another entity, that activity will generally be considered a subcontract.