Subawards

Life of an Outgoing Subaward

In general, the life of a subaward will go through the following stages:

New Outgoing Subawards:

  • The URA Award Manager (URA-M) will initiate all new outgoing subawards as part of Award Acceptance
  • Once the university’s award is accepted and distributed, the URA-M will:
    •  Create a Concurrence Request (CR) in AURA  for each outgoing subaward
    • Draft subaward agreement based on information gathered at proposal and Just-in-Time (JIT) stages, including:
    • Perform a Risk Assessment and include any appropriate terms in the agreement based on the level of risk assigned to the subaward
    • Work with the Unit Administrator (UA) to finalize the subaward agreement
    • Obtain Principal Investigator (PI) concurrence
    • Email subaward agreement to subrecipient contact for signature
    • Negotiate any administrative terms with subrecipient, if needed, with UA input
    • Once subaward agreement is fully executed, forward to Sponsored Award Accounting (SAA) and cc UA
  • The goal is to issue the subaward/s to the subrecipient for signature within 2 weeks of Award Acceptance

Project Management of an Active Outgoing Subaward:

  • The PI should be monitoring the activities and performance of the subrecipient throughout the life of the subaward, for example:
    • Receiving data and progress reports
    • Receiving deliverables defined in subaward agreement
    • Participation in project conference calls
  • Subrecipient will submit invoices to the UA in accordance with the subaward agreement, but generally not more frequently than monthly
    • The UA will:
      • Work with the PI to monitor, track and pay subaward invoices for costs that are:
        • Allowable
        • Within the performance period of the subaward agreement
        • Consistent with award budget
      • Check for a cost sharing expenditure report, if applicable
      • Complete the Subrecipient Payment Authorization Form, Subrecipient invoice, and EPayment record.
    • The PI will need to attest that the invoice appears reasonable in light of the Subrecipient's progress reports

Modifications to Outgoing Subawards:

When a progress report for an award must be routed through URA for review and endorsement, it’s the UA’s responsibility to route a Continuation (CN) via AURA. Once an award document is received the URA-M will distribute the university’s award and then do the following:

  • Draft the subaward amendment using the most recent information collected or updated in AURA. This can include:
    • Information and dollar amounts given in the original Subrecipient Commitment Form for the appropriate budget period
    • Reconciled budget in AURA for the current budget period (if it’s been completed already)
    • Detailed budgets for subrecipients submitted with CN (usually for federal cooperative agreements and program projects)
  • Determine if there is automatic carryforward on the prime award and include the appropriate language regarding carryover
  • Request from the UA a detailed budget and any updated contact information for the subrecipient
  • Obtain PI concurrence and inquire as to whether there were any issues with the subaward that may warrant revised financial terms
  • Email the subaward modification to subrecipient contact for signature
  • Negotiate any revised administrative terms with subrecipient, if needed, with UA input
  • Once the subaward modification is fully executed, forward to Sponsored Award Accounting and cc UA

For any other subaward amendment that is needed:

  • The UA will initiate the amendment with a CR “Request for Outgoing Subaward Agreement/Modification” in AURA. The CR should include:
  • The URA-M will ask the UA to confirm with the PI whether there were any issues with the subaward that may warrant revised financial terms
  • The URA-M may need to work with the UA to make sure the amendment is correct and that there are no conflicts between it and the prime award
  • Email the modified subaward agreement to subrecipient contact for signature
  • Negotiate any administrative terms with subrecipient, if needed, with UA input
  • Once the subaward modification is fully executed, forward to Sponsored Award Accounting (SAA) and cc UA

Subaward Closeout:

  • At the end of the subaward performance period:
    • The subrecipient should provide a Final Invoice per the agreement terms
    • The PI and UA should review the invoice for payment
    • When closing a UC prime award, all subrecipient invoices should be included in the Closing Memo totals submitted to Sponsored Award Accounting

Special Situations:

  • Adding a subaward that was not included in the proposal
    • UA reviews prime award agreement and checks with their URA-M to determine if prior approval is required
    • If prior approval is required, UA routes a request in AURA as a CR with the following included:
      • Letter from the PI to the agency/sponsor indicating the reason for the change/addition and effect on the project
      • Completed and signed Subrecipient Commitment Form
      • Scope of work
      • Budget and Budget Justification
      • Subrecipient’s F&A Rate Agreement
         
  • Subrecipient PI Change of institution – When a PI from original Subrecipient institution moves to a new institution and the project is moving with him/her, a new subaward is required. Coordination is necessary as there are multiple steps:
    • Terminating the original subaward via a modification.
    • Approval from the sponsor to add the new institution as a Subrecipient, if necessary.
    • Issuing a new subaward to the new institution. This action will require the same information required for establishing a new subaward:

Common Terms In Subawards:

  • Sponsor: The organization that funds a research project. In AURA, this is the agency/sponsor, question 1.5.
  • Prime Institution: The institution that has directly received the award from the Sponsor.
  • Prime Award: The award letter/instrument provided by the Sponsor that funds the project.
  • Subrecipient: The legal entity to which a subaward is made when the Prime Award is a grant or cooperative agreement (assistance mechanism) and which is accountable to the Prime Institution for the statement of work.
  • Subaward: The formal agreement between the Prime Institution and the Subrecipient, written under the authority of, and consistent with the terms and conditions of an award (a grant, contract or cooperative agreement), that transfers a portion of the research or substantive effort of the prime award to another institution or organization.
  • Flow-down or Flow-through: Applying the terms and conditions in the Prime Award to the subaward.
  • Modification/amendment: Mechanism used to modify any aspect of an existing subaward agreement. Used interchangeably with Amendment.