Since as an intermediary you may be making subawards to faith-based and community organizations, some of these issues specifically involve matters that rise up when faith-based groups receive Federal funds. Request guidance on these matters from your Federal program officer.
Financial reporting requirements. To make sure that grant funds are used properly, organizations that receive Federal funds must file regular financial status reports based on the requirements of the individual grant. At the time of writing, the basic financial report for Federal funds is a one-page document called Standard Form 269. (Programs are slowly phasing out the use of this form and replacing it with the Federal Financial Report). As a Federal grantee providing subawards, you will need to complete and compile financial reports on your subawardees and submit them on a regular basis. Accordingly, your subawardees will need to submit financial reports to you in the same format used for your own report. For more information about the Federal Financial Report (FFR) visit the Division of Payment Management website, http://www.dpm.psc.gov.
Support of only non-religious social services. A subawardee cannot use any part of a direct Federal grant to fund "inherently religious" activities which can include religious worship, instruction, or proselytization. Instead, organizations should use government funds to support only the non-religious social services that they provide. This doesn't mean the organization cannot have religious activities. It does mean that they cannot use taxpayer dollars to fund those religious activities.
Social services open to all eligible persons. If an organization takes Federal money, it cannot discriminate against a person seeking help who is eligible for the service. Religious organizations receiving public funds for a service that they are providing cannot serve only persons of their faith and turn others away. In addition, the faith-based organization may not require those they serve to profess a certain faith or participate in religious activities in order to receive the services they provide for the Federal government.