When subawards are made by the direct recipient to another organization or organizations, the direct recipient is responsible for making sure that subrecipients comply with the audit requirements set forth in this chapter.
If a subrecipient is not required to have an audit as stipulated in OMB Circular A-133, the direct recipient is still responsible for monitoring the subrecipient???s activities to provide reasonable assurance that the subrecipient administers Federal awards in compliance with Federal requirements.