02.17.2009

Subrecipient Monitoring

Subaward Definition

• A formal binding legal agreement between your institution and another legal entity• A portion of your sponsored project's intellectually significant activity is

assigned to another entity (“the subrecipient”) to fulfill• Work is generally performed by the subrecipient’s personnel using their

resources, usually at their site• The subrecipient takes full responsibility, including

intellectual leadership, for a portion of your work statement

• The award terms and conditions (T&C) you accepted are “flowed down” to the sub, which must also agree to comply with them• audit requirements, restrictions on rebudgeting, human and animal

subjects approvals, conflict of interest, etc.

Decision Matrix A subaward may be appropriate if you

can answer “yes” to any of the following questions:

• Does the entity’s statement of work represent an intellectually significant portion of the programmatic effort of the overall project?

• Does the entity have responsibility for programmatic decision making?

• Could the entity’s work result in intellectual property developed or publishable results (including co-authorship)?

• Will the entity need animal and/or human subjects approvals for its portion of the work?

Proposal Preparation

Subrecipient must submit:• Signed Letter of Intent (Commitment Form) • Scope of Work • Budget• Budget Justification• Other items as required

Fair and Reasonable Costs Analysis Forms

• Tools for investigators choosing collaborators

• Helpful during audits• These forms do not need

to be submitted to SPA with one exception: federal contracts (Form 2 should be submitted to SPA).

FFATAFederal Funding Accountability and

Transparency Act

• SPA collects and sends data to Feds • SPA will not pay invoices until the FFATA form is

returned by the subrecipient • Any FFATA questions/forms received should be

forwarded to SPA

Subaward Issuance

• Subrecipient Principal Investigator and institutional contact information

• Statement of Work• Budget (including cost sharing if applicable)• Technical/financial reporting requirements• Payment terms and schedule• Subaward performance period• Other information as required

Determining Invoice Payment Status

The Job Aid Find A Voucher and Pay Date can be found at www.ospa.umn.edu/subaward/index.htm under “Job Aids.”

Finding a Subcontract’s Balance

The Job Aid PO Balances by Project can be found at www.ospa.umn.edu/subaward/index.htm under “Job Aids.”

Payment and PI Approval

• PI monitors subrecipient technical progress

• PI/Dept. review, monitor receipt of invoices

• PI reviews and signs invoices

Quick Tips:• Invoices may be emailed to the GA• PI may email GA with approval, no

ink signature necessary

Wire Transfers and Special Handling

• Disbursements only allows wire transfers to foreign sites

• SPA does the wire transfer• Special Handling options, such as expedited

payment, are available with good reason

Requesting a Subaward Modification (Amendment)

• Modification may need sponsor approval• Notify your GA of proposed modifications• Provide SPA the following (if applicable)

• Revised Budget• New Period of Performance• Changes to Scope of Work• Subrecipient PI change

Closeout• SPA recommends starting close out process three

months prior to end date• Final Invoice should be marked “Final”• On Federal projects final invoices and reports should

be received in a timely manner• SPA will send a “Subaward Release Form” and will not

process payment until received• Late invoices and invoice disputes handled on a case

by case basis. Contact your GA.

Subaward Best Practices

• Proper documentation of sub choice (see Fair & Reasonable Cost Analysis Forms)

• Timely monitoring of subs progress by PI• PI review and sign invoices• Departmental monitoring of sub invoices• Contact your GA right away if a problem

develops

ResourcesSPA’s Subaward Website:

www.ospa.umn.edu/subaward/index.htm

SPA’s Helpline: 612-624-5599

• To find Vouchers and Pay Dates in PeopleSoft: Purchasing > Purchase Orders > Review PO Information > Activity Summary

• To find PO Balances by Project in PeopleSoft: Purchasing>Purchase Orders>Reports>Req and PO Budgetary Activity

Thank you for Attending!