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pass-through grants

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What are pass-through grants? Under what circumstances must a recipient government report a pass-through grant as both a revenue and an expenditure?

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Pass through grants according to GASB Statement 24 are grants that are received by a recipient government to transfer to or spend on behalf of a secondary recipient. Pass through grants are those that are received by a recipient government to give or spend on behalf of recipients such as cities, counties, school districts, general and special law districts created in accordance with the program specific requirements. it is necessary to determine if there is administrative involvement. This can be determined if the state government monitors the recipients for compliance with program-specific requirements. For example, the state government monitors the spending of the Pass through grants by a city for compliance with the program. The other situation for administrative involvement is when the state government uses the grantor set criteria for selecting eligible secondary recipients. ...

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Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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