subrecipient monitoring l.
Skip this Video
Loading SlideShow in 5 Seconds..
Subrecipient Monitoring PowerPoint Presentation
Download Presentation
Subrecipient Monitoring

Loading in 2 Seconds...

play fullscreen
1 / 23

Subrecipient Monitoring - PowerPoint PPT Presentation

  • Uploaded on

Subrecipient Monitoring. OFFICE OF RESEARCH ADMINISTRATION 2010. Definition:. Subcontract Subaward Consortium agreement Subrecipient agreement All are treated the same . . . . . . . . . . . . . . . All are initiated by Grant Services . . . . . . . Subaward Versus Vendor Agreement.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Subrecipient Monitoring' - vilmos

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
subrecipient monitoring

Subrecipient Monitoring






Consortium agreement

Subrecipient agreement

All are treated the same . . . . . . . . . . . . . . .

All are initiated by Grant Services . . . . . . .

subaward versus vendor agreement
Subaward Versus Vendor Agreement
  • Subrecipient:
    • performance is measured against the objectives of the federal program
    • has responsibility for programmatic decision making
    • is responsible for adherence to applicable Federal compliance requirements
    • does not provide goods or services for the program
    • is usually another higher education institution, hospital, or other non-profit organization
subaward versus vendor agreement cont
Subaward Versus Vendor Agreement cont…
  • Vendor:
    • provides goods and services within normal business operations
    • provides similar goods or services to many different purchasers
    • operates in a competitive environment
    • provides goods or services ancillary to the Federal program
    • is not subject to the compliance requirements of the Federal program
    • is usually a company or may be an individual
why is the type of agreement important
Why is the type of agreement important?
  • Problems with classifying a subaward as a vendor:
    • Federal compliance requirements do not flow down to vendor
    • no subcontract monitoring
    • costs might not be charged in accordance to budget
    • no restrictions on publicity or media releases
    • not subject to conflicts of interest or research misconduct policies
    • potential for audit findings if misclassified
why is the type of agreement important6
Why is the type of agreement important?
  • Problems with classifying a vendor agreement as a subaward:
    • procurement standards required by Federal Circular A-110 are bypassed (competitive bid process, cost and price analysis, sole source justifications, etc.
    • lack of IU Board of Trustee review, etc. for high dollar requisitions)
    • may impose unnecessary administrative and compliance burdens on the vendor (effort report system, annual audits, etc.)
    • requires our subrecipient monitoring
    • limits vendor profits
  • Annual A-133 audit of federal and federal pass through accounts
  • Ad hoc agency audits
  • IU Internal Audit completed FY08
    • IA Key Findings:
      • additional risk analysis needed
      • additional training needed
how it works
How it works:

Prime funding agency

IUB & regional awards

IUPUI awards

Subrecipient 1

Subrecipient 2, etc.


Subrecipient 2, etc.

Subrecipient Monitoring

types of sponsors



Higher Education

State of Indiana

Other Governmental


Can be Federal Pass Through

Federal funds do not lose their Federal identity when being passed through to a lower tier recipient

Types of sponsors:
we require from the subcontractor at the proposal stage
We require from the subcontractor at the proposal stage:


  • Institutional letter of support
  • Work statement
  • Detailed budget
  • F&A rate agreement


  • States where to send agreement for signature
  • Makes clear for both parties what will be accomplished
  • For ORA review in line with prime agency regulations
  • To ensure subcontractor applies correct rate to IU
the subcontracting process
The subcontracting process:

Grant Services

Reviews subcontractor’s

budget for completeness

and adherence to agency

guidelines. Processes


Grant Services

Contract Officer

After award received, writes subcontract; obtains all approvals.

Project Director

Writes proposal

---- subcontract in budget.

Fiscal Officer

Initiates requisition

Procurement Services

Initiates purchase order

Grant Services


Approves PO, records

subcontract in FIS.

Research Administration ACE Team

Monitors subrecipient institution, reviews risk


Monitoring Responsibilities

Grant Services Teams



State Board

of Accounts



Research Administration ACE Team



risk analysis risk may be high if
Risk Analysis: Risk may be high if:
  • Lack of good documented internal controls
  • No previous IU experience with this subcontractor
  • Lots of findings on previous A-133 reports
  • Small entity not subject to A-133
  • Foreign institution
  • For-profit with no audited financial report
  • Subcontract agreement provideing more than 75% of the award to the subcontractor
risk may be moderate if
Risk may be moderate if:
  • Previous A-133 findings related to IU
  • Subcontract fails to respond to our request for A-133 report certification (ACE Team)
  • Subcontractor fails to submit timely program/technical reports as requested in the subcontract agreement
risk may be low if
Risk may be low if:
  • Another educational institution in the State of Indiana that is audited by the State Board of Accounts (Purdue, Ball State, Indiana State, etc.)
  • Subcontract dollar amount low – less than $5,000
  • The subcontract agreement is with another educational institution having consistently good A-133 reports
things to note
Things to note:
  • We do not initiate subcontracts on underwritten accounts
  • A risk determination can change during the life of a subcontract if:
    • IU findings are noted on A-133 report
    • Subcontractor fails to submit progress reports
    • Subcontractor does not submit final invoices by the required date
research administration role
Research Administration Role:
  • Collects subcontract info at proposal stage
  • Award setup, account setup, budget setup
  • Prepare, negotiate, and sign subcontract
  • Establish subcontractor risk
  • Financial reporting
  • Fiscal compliance monitoring
project director role
Project Director Role:
  • One-on-one collaboration with subcontractor PD
  • Oversee programmatic aspects of subcontract – is work is in line with subcontractor’s proposed work statement and our expectation
  • Determine if work is proceeding at a reasonable rate
  • Overall management and responsibility for expenditures
  • Monitor changes in subcontractor’s key personnel where IU approval is required
fiscal officer role
Fiscal Officer Role:
  • Initiate requisitions
  • Review and approve subcontract invoices
  • Review rate of spending with project director
  • Ensure that IU account is charged correct indirect cost under object code 4073, 4074,or 4075
  • Collect final invoice within 60 days after subcontract end date.
how to monitor invoices
How to monitor invoices:


  • Rate of spending is reasonable given the work completed to date
  • Costs are reasonable
  • Subcontractor’s progress reports are submitted on time as outlined in the agreement


  • Time Period: Expense incurred within subcontract period
  • Expense: detailed by budget line
  • Costs: allowable per prime agency and appear reasonable to the project
  • Subcontractor’s indirect cost agrees with their F&A rate agreement
  • Office of Research Administration web
  • Subrecipient Monitoring Guidance on our web
  • Important Notice 04-1, Subrecipients
  • Project Director Reports
  • OMB Circulars
Jan Young

ACE Manager (Audit, Compliance, Effort)

Office of Research Administration