Can a subgrant be signed electronically?

Yes. The ESIGN Act and UETA establish that electronic signatures are legally enforceable when intent, consent, attribution, and record retention are present. Confirm the funder has no statutory exception and collect any required consumer disclosures when applicable.

Who should sign on each party's behalf?

An authorized signatory with documented authority should sign. Verify authority via corporate resolution, government delegation, or board minutes to prevent later challenges to signature validity.

Is notarization required for validity?

Not usually for contract enforceability, but some state statutes or funder requirements may ask for notarization or RON for specific filings. Check state rules and funder terms before assuming notarization is unnecessary.

How do I amend an executed agreement?

Document amendments in writing, reference the original agreement, include effective dates, obtain signatures from the same authorized signatories, and retain the amendment with the original file.

What records are needed for an audit?

Keep the signed agreement, budgets, invoices, receipts, payroll records, timesheets, progress reports, and correspondence. Retain these per applicable retention rules such as IRC §6501(a) and funder requirements.

How can the agreement be revoked or cancelled?

Follow the termination clause and required notice periods, document grounds for termination, reconcile funds disbursed, and implement closeout steps including final financial reports and possible recovery of disallowed amounts.

Electronic Signature
Templates
Finance
Financial Subgrant Agreement

Financial Subgrant Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL SUBGRANT AGREEMENT

Parties and Identification

This Financial Subgrant Agreement (the Agreement) is made between the Subgrantor and the Subgrantee identified below effective as of (Effective Date).

Subgrantor (Primary Grantee) - Organization Name Subgrantor - Address and Contact Subgrantee (Recipient) - Organization Name Subgrantee - Address and Contact

Recitals and Purpose

WHEREAS, Subgrantor has been awarded funds for specific activities and agrees to subgrant a portion of those funds to Subgrantee to accomplish the project described in this Agreement (Project); and WHEREAS, Subgrantee will perform the work and expend funds in accordance with the terms, budget, and reporting obligations set forth herein.

Term and Performance Period

The performance period shall begin on and end on , unless earlier terminated in accordance with this Agreement.

Subgrant Amount, Budget and Payment

Subgrantor agrees to provide funding up to the total amount of $ (Subgrant Amount) as detailed in the Budget below. Disbursements will be made only for allowable costs documented in the Budget and in accordance with the payment schedule set forth in this Agreement.

Budget Detail (Itemize expenses)

Description	Quantity	Unit Rate	Amount



Subtotal
Tax
Other (e.g., shipping)
Total

Payment Schedule: Subgrantor will disburse funds according to the schedule below, subject to satisfactory performance and receipt of required reports. Initial payment shall be $ within days of Effective Date. Subsequent payments contingent on deliverables and approval.

Payment Method (select all that apply)

ACH / Electronic Transfer Check Wire Transfer Other (specify):

Allowable Costs and Budget Modifications

Subgrantee shall charge only allowable, allocable and reasonable costs to the Subgrant. Any transfer of amounts among Budget line items in excess of $ or % of a line item requires prior written approval from Subgrantor.

Reporting and Recordkeeping

Subgrantee shall submit financial and programmatic reports according to the following schedule: Reports due and within days after the end of each reporting period. All supporting documentation shall be retained for a period of years and made available for inspection or audit upon reasonable request.

Reporting Requirements - Describe Deliverables and Metrics

Audits, Inspections and Access to Records

Subgrantor, its authorized representatives, and any applicable auditors shall have the right to inspect and audit records, books, papers, and documents related to the Subgrant, and to interview personnel. Subgrantee shall provide reasonable access to facilities, personnel and records and shall cooperate with any audit. Disallowed costs identified by audit are subject to repayment.

Compliance with Laws and Policies

Subgrantee shall comply with all applicable federal, state and local laws, regulations and policies, including requirements governing nondiscrimination, labor standards, and procurement. Subgrantee warrants that it has and will maintain all licenses and approvals necessary to perform the Project.

Procurement and Subcontracting

Subgrantee shall follow written procurement procedures that provide for full and open competition and avoid conflicts of interest. No major subcontract or assignment of funds shall be made without prior written approval by Subgrantor. Subgrantee remains responsible for performance of subcontractors.

Termination, Suspension and Remedies

Subgrantor may suspend or terminate this Agreement for convenience or for cause upon written notice. For termination for convenience, Subgrantor shall provide days' notice and pay allowable costs incurred prior to termination. For cause, Subgrantor may terminate immediately upon written notice for material breach, failure to comply with reporting or misuse of funds. Remedies include withholding payments, recoupment of disallowed costs, and pursuit of other legal remedies.

Indemnification and Insurance

Subgrantee shall indemnify, defend and hold harmless Subgrantor and its officers, agents and employees from liabilities, claims, actions and costs arising from Subgrantee's performance or negligence. Subgrantee shall maintain insurance coverage appropriate to the Project, including commercial general liability and workers' compensation where required; evidence of insurance shall be provided upon request.

Confidentiality and Records

Confidential information exchanged under this Agreement shall be used only for purposes of the Project and not disclosed except as required by law. Public release of information about the Project shall be coordinated with Subgrantor as set forth in the Notices section.

Amendments and Assignment

No amendment to this Agreement shall be valid unless in writing and signed by authorized representatives of both parties. Subgrantee may not assign or transfer its rights or obligations without prior written consent of Subgrantor.

Notices

Notices required under this Agreement shall be given in writing to the contact addresses below and shall be deemed effective upon delivery when sent by recognized overnight courier or when sent by certified mail, return receipt requested.

Notice to Subgrantor - Address Notice to Subgrantee - Address

Miscellaneous Provisions

Severability: If any provision of this Agreement is held invalid, the remaining provisions shall remain in full force and effect. Entire Agreement: This Agreement, including the Budget and any attachments incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter herein.

Additional Terms, Conditions or Special Provisions

Certification

By signing below, the persons signing certify that they are authorized to bind their respective parties, that funds will be used only for allowable purposes, that financial records will be retained and made available for inspection, and that all information provided to Subgrantor in connection with this Agreement is true and accurate to the best of their knowledge.

Subgrantor - Printed Name:

By:

Date:

Subgrantee - Printed Name:

By:

Date:

What a Financial Subgrant Agreement Is and Why It Matters

A Financial Subgrant Agreement is a written contract that governs the transfer of grant funds from a primary grantee to a subrecipient. It sets the scope of work, eligible costs, payment schedule, reporting obligations, audit rights, and compliance requirements tied to the sponsoring award. The agreement clarifies financial controls, recordkeeping responsibilities, allowable cost rules, indirect cost treatment, monitoring procedures, amendment processes, and closeout obligations so both parties understand performance expectations and consequences for noncompliance.

Why a Clear Subgrant Agreement Reduces Risk

A Financial Subgrant Agreement documents responsibilities, payment terms, and compliance duties to reduce audit exposure and disputes. It creates an enforceable framework for monitoring expenditures, recovering disallowed costs, and maintaining consistent reporting to the funder.

Who Typically Prepares and Signs These Agreements

Typical users include grant administrators, subrecipient program managers, finance officers, and legal counsel who manage or oversee pass-through funding.

State and local government grantmakers administering federal pass-through awards and ensuring compliance oversight
Nonprofit subrecipients responsible for project delivery, budget management, and program reporting to the grantee
University research offices and healthcare finance teams managing award budgets, deliverables, and sponsor reporting requirements

Clear role assignment and verified signatory authority help avoid execution delays and post-award compliance problems.

Step-by-Step: How to Complete a Financial Subgrant Agreement

Follow a clear sequence to draft, verify, execute, and store the Financial Subgrant Agreement so payments and reporting proceed without administrative delay.

01

Prepare Draft: Assemble scope, budget, and funding conditions for the proposed subaward.
02

Identify Parties: List legal names, FEIN/TIN, and authorized signers for each organization.
03

Define Budget: Specify award amount, budget line items, indirect cost rates, and payment triggers.
04

Sign and Store: Execute signatures, capture audit trail, and retain signed records for audits.

How to Configure an Online Signing Workflow

Configure an online workflow to automate approvals, signer authentication, notifications, and retention of the signed subgrant documents.

Field	Configuration
Notification Email	Sender address and recipient roles for all notices.
Authentication	Email link, SMS code, or KBA where higher assurance is needed.
Template Fields	Use conditional budget lines and required attachment flags for consistent forms.
Automated Reminders	Set intervals such as 7, 14, and 30 days for unsigned items.

Digital Signing and Technical Requirements

Digital execution requires secure transport, tamper-evident output, and an audit trail that meets funder and audit expectations.

Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace supported
File Formats: PDF, Word DOCX, and scanned images accepted
Authentication: Email, SMS, or advanced KBA options available

Typical eSignature Workflow for Subgrant Execution

A standard eSignature workflow moves the agreement from draft through signer authentication to a stored signed record with an audit trail.

Upload Document: Add master agreement, budget, and required attachments.
Place Fields: Assign signature, date, and initial fields for each signer.
Send to Signers: Email links or bulk invites to authorized signatories.
Archive with Audit: Store signed PDF plus timestamped certificate and logs.

Core Elements to Include in a Professional Subgrant Agreement

A professional Financial Subgrant Agreement contains essential clauses that establish duties, financial controls, and remedy paths to protect both grant integrity and legal compliance.

Parties

Identify grantee and subrecipient with full legal names, addresses, tax IDs, and primary contacts for finance and program oversight.

Purpose

Describe funded activities, objectives, outputs, and performance indicators with sufficient specificity for monitoring and evaluation.

Budget

Attach a detailed budget showing line items, allowable costs, indirect cost rates, and limits on rebudgeting without prior approval.

Payment Terms

Specify award amount, invoice requirements, documentation to support disbursements, payment timing, and remedies for late or disallowed costs.

Reporting

Define frequency, format, and supporting documents for financial and program reports plus portals or addresses for submission.

Compliance

Require adherence to applicable statutes and funder terms, grant audit access, recordkeeping, and procedures for resolving findings or recovering funds.

Required Identifying Information and Key Fields

Grantee Legal Name: Enter exact name as on IRS records.

Subrecipient TIN/FEIN: Provide nine-digit TIN as issued by IRS.

Grant Identifier: Include the funder award number or ID.

Award Amount: List total dollar value of subaward.

Authorized Signer: Name, title, and contact for signing official.

Attachments List: Include budgets, scopes, and certifications.

Penalties, Risks, and Consequences of Errors

Fund Recovery: Repayment of disallowed costs.

Audit Finding: May require corrective action plans.

Withholding: Future funds suspended pending review.

Interest & Penalties: Charges per funder or statute.

Legal Action: Breach may trigger litigation or remedies.

Reputational Risk: Negative impact on future awards.

Common Preparation Mistakes to Avoid

Failing to define allowable expenses and budget line items creates ambiguity during audits and can lead to disallowed costs and required repayments.
Referencing attachments that are not included or unsigned causes inconsistencies and may invalidate expense claims during monitoring.
Designating an unauthorized signatory or not verifying a board resolution can delay execution and require re-signing by the proper official.
Submitting incorrect TINs or mismatched legal names triggers backup withholding, complicates IRS reporting, and often requires corrective filings.

Typical Timelines, Reporting Deadlines, and Payment Expectations

Key timing items include the award effective date, reporting cycles, invoice submission windows, audit availability, and the project closeout deadline.

Effective Date of Award:

Marks start of performance and allowable cost period.

Interim Financial Reports:

Often quarterly or monthly; due within 30 days after period end.

Invoice Submission Window:

Invoices commonly processed net 30 unless funder sets other terms.

Audit Period Availability:

Records must be available for a minimum three-year period for review.

Final Report and Closeout:

Final reports and closeout documents typically due 60 to 90 days after project end.

Entry-Level Pricing and Core Capabilities: signNow and Competitors

The table compares entry-level pricing and common capabilities across major eSignature vendors. signNow is listed first per platform comparison guidance.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Financial Subgrant Agreements

Answers to common questions about electronic execution, signatory authority, notarization, amendments, records for audit, and cancellation procedures.

Need help? Contact support

Can a subgrant be signed electronically?
Yes. The ESIGN Act and UETA establish that electronic signatures are legally enforceable when intent, consent, attribution, and record retention are present. Confirm the funder has no statutory exception and collect any required consumer disclosures when applicable.
Who should sign on each party's behalf?
An authorized signatory with documented authority should sign. Verify authority via corporate resolution, government delegation, or board minutes to prevent later challenges to signature validity.
Is notarization required for validity?
Not usually for contract enforceability, but some state statutes or funder requirements may ask for notarization or RON for specific filings. Check state rules and funder terms before assuming notarization is unnecessary.
How do I amend an executed agreement?
Document amendments in writing, reference the original agreement, include effective dates, obtain signatures from the same authorized signatories, and retain the amendment with the original file.
What records are needed for an audit?
Keep the signed agreement, budgets, invoices, receipts, payroll records, timesheets, progress reports, and correspondence. Retain these per applicable retention rules such as IRC §6501(a) and funder requirements.
How can the agreement be revoked or cancelled?
Follow the termination clause and required notice periods, document grounds for termination, reconcile funds disbursed, and implement closeout steps including final financial reports and possible recovery of disallowed amounts.

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