Subawards and Subcontracts

1. SPTP Subawards and Subcontracts Sponsored Projects Training Program October 17th, 2011 Renee Hunt, Julie Macy & Dawn Pelkey

2. Objectives • Become familiar with the terminology • Gain an understanding of the process and what is needed at the time of • Proposal • Award • Close-out • Understand the various components of a subaward/subagreement • Gain an understanding of where to locate subaward information on our newly developed SPA website Sponsored Projects Training Program

3. Terminology • SPA – Sponsored Project Administration • Subaward/Subcontract • Subrecipient • Subrecipientvs Vendor • Prime Recipient • Substantive Work Sponsored Projects Training Program

4. Definition of Subaward/Subcontract Taken from Office of Management and Budget (OMB) Circular A-110 “Subaward means an award of financial assistance in the form of money, ….. made under an award by a receipient to an eligible subrecipient or by a subrecipient to a lower tier subrecipient. The term includes financial assistance when provided by any legal agreement, even if the agreement is a contract, but does not include procurement of goods and services….”

5. Definition of Subrecipient and Who Qualifies • Subrecipient – is the legal entity to which a subaward is made and which is accountable to the prime recipient for use of the funds. • Who qualifies? • Universities, hospitals? • For profit entities? • Not for profit entities? • Foreign entities? • Individuals? Sponsored Projects Training Program

6. Differences between a Subrecipient and a Vendor • Questions to help determine: • Is this an individual or someone within an institution? • Will this person be listed as a co-author on publications? • Do you consider this person to be a collaborator or someone to provide a specific goods or services? • Does this person/institution provide this type of service for others? Sponsored Projects Training Program

7. Definitions Continued: • Prime Recipient – The prime recipient is the legal entity receiving a grant, contract or cooperative agreement directly from the awarding agency. • Substantive Work is effort in which a subrecipient/collaborator engages directly in carrying out the specific aims of a project. Sponsored Projects Training Program

8. Subaward at time of Proposal • Initial collaboration • Timeline for obtaining documentation: • Draft due to SPA two (2) weeks ahead of sponsor deadline • Final due to SPA one (1) weeks ahead of sponsor deadline • Formal arrangement includes information: • Letter of Intent to Subaward • Scope of Work • Budget with Justification • Other types of documentation Sponsored Projects Training Program

9. Subaward at time of Award • Proposal is awarded to “Prime” Institution • An agreement from the Prime to the Subrecipient is created by your SPA Research Administrator • At the time of creation: • SPA will review the type of agreement and coordinate granting the subaward to the subrecipient with the PI and/or Dept. • SPA will review the scope of work with the PI and/or Dept. (this will become attachment 5) • Budget dollars (in case of any revision goes along with attachment 5) • Contact information of PI (attachment 3A) • Reporting Requirements (attachment 4) • The agreement is sent to the subrecipient and negotiated and executed between the two parties Sponsored Projects Training Program

10. Subaward at time of Award, continued • Subaward is set-up in PeopleSoft • Award reviewed by set-up specialist • Requisition created and sent to Procurement; pre-encumbrance is created • Procurement sets up Purchase Order from Requisition; encumbrance is created (pre-encumbrance is liquidated) • Procurement creates Vouchers against Purchase Order as invoices are received/approved by PI & SPA (liquidates encumbrance) Sponsored Projects Training Program

11. Subaward at time of Award, continued • PI responsibilities • Programmatic – monitors sub-recipient performance • Compliance – ensure all compliance requirements UVM is subject to, the sub-recipient adheres to • Administrative/Fiscal – approves sub-recipient invoices Sponsored Projects Training Program

12. Post Award and Close-out • Invoice review & approval • SPA responsibility • PI responsibility Sponsored Projects Training Program

13. Post Award and Close-out, continued • ARRA • American Recovery and Reinvestment Act of 2009 • Goal of job creation and retention • Quarterly reporting deadlines • Prime recipient – 10th day following end of quarter • Subrecipient – 5th day following end of quarter • SPA responsibility • PI responsibility Sponsored Projects Training Program

14. Post Award and Close-out, continued • Closeout • Final invoice • Due 60 days from end date of subaward • PI responsibility • SPA responsibility Sponsored Projects Training Program

15. Post Award and Close-out, continued • Audit • Federal requirement • UVM subrecipient monitoring • UVM’s A-133 audit Sponsored Projects Training Program

16. Additional Resources • A-110 – Uniform Administrative Requirements • http://www.whitehouse.gov/omb/circulars_a110 • A-21 – Cost Principles for Ed. Institutions • http://www.whitehouse.gov/omb/circulars_a021_2004 • A-133 Audits of States, Local Governments, and Non-Profit Organizations • http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a133_revised_2007.pdf • UVM’s subrecipient monitoring policy: • http://www.uvm.edu/policies/grants/subrecipient_monitoring.pdf Sponsored Projects Training Program

17. Conclusion • Explained relevant terminology • Described what’s necessary and the process at: • Proposal • Award • Close-out • Demonstrated how to access information through SPA website Sponsored Projects Training Program

18. Questions/Contact Info • Sponsored Project Administration (SPA) • http://www.uvm.edu/spa/ • Main Campus Office 217 Waterman Building, 6-3360 Sponsored Projects Training Program