Definition: The PRIME Sponsor is the entity that is the original source of the project funds.
For example:
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Department X receives a funded award from the Ohio Department of Education. They received an award from the Substance Abuse and Mental Health Services Administration “SAMHSA.” The Prime Sponsor is SAMHSA. The flow-thru sponsor is the Ohio Department of Education.
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Department X receives a funded award from Duke University. Duke received an award from the National Institute of Health (NIH). The Prime Sponsor is the NIH and Duke is the Pass-Thru Entity.