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SUBAWARDS
These guidelines outline procedures for the administration of subawards when the University has been awarded a prime agreement (contract, grant or cooperative agreement) on which there are Subrecipients. The award terms and conditions (T&C) from the Prime Award are “flowed down” to the Subrecipient, (e.g. audit requirements, restrictions on rebudgeting, human and animal subjects, conflict of interest, etc).
For outgoing subawards, when the subaward was included in the University proposal, and approved by the Sponsor, a subaward agreement is prepared:
- PI and Department Administrator review award.
- The Department Administrator requests a current workscope, budget/justification and contact information from the Subrecipient.
- The Department Administrator uploads the Outgoing Subaward Request Form and required documents in the Update Subaward view in AURA. The Department Administrator then should send an email to outgoing-subs@uchicago.edu to notify the Subaward Manager that the documents have been uploaded to AURA.
- The Subaward Manager drafts the subaward and uploads the draft to AURA for PI and Department Administrator concurrence.
- The Subaward Manger sends the approved subaward PDF by email to the appropriate office at the Subrecipient’s institution for review and endorsement.
For incoming subawards, the Prime Institution will send the subaward agreement to the University for review and endorsement.
Adding a subaward that was not included in the proposal
All funding organizations, whether federal or non-federal, require prior approval for a subaward. If the PI wants to enter into a subaward after the award has begun, a written request to add a Subrecipient must be forwarded to URA through AURA for institutional endorsement, and submitted to the sponsor for approval.
Life of a Subaward – Outgoing
In general, the life of a subaward will go through the following stages:
1. UC receives prime award
- PI and Department Administrator review award to determine if a revised budget and/or workscope is needed for the Subrecipient
- The Department Administrator requests a current workscope, budget/justification and contact information from the Subrecipient.
2. UC issues subaward for budget period awarded
- Subrecipient submits invoices to the Department Administrator. Department Administrator monitors, tracks and pays subaward invoices for costs that are allowable and within the performance period of the subaward agreement. The administrator checks the invoice to ensure it is consistent with award budget (check also for a cost sharing expenditure report, if applicable) and the PI attests that the invoice appears reasonable in light of the Subrecipient’s progress reports. The Subrecipient Payment Authorization Form, Subrecipient invoice, Direct Payment Voucher and any explanations required by the Subrecipient Payment Authorization Form are sent to the Sponsor Award Accounting Section of the Comptroller’s Office. It’s recommended that the Department Administrator also keep a spreadsheet on payments made and balance available.
- Communicate early and often about any financial or technical progress report information required by the sponsor; if the sponsor requires approval for carryover of funds from one budget period to the next, Subrecipient must submit a request to The University of Chicago for carryforward.
3. UC receives prime award for subsequent budget period
- Review award for any new terms and conditions that need to be flowed down to the Subrecipient; address issues of budget and carryover with the Subrecipient; obtain budget for new budget period.
4. UC issues an amendment or modification to the Subrecipient for each new budget period
- Extend performance period, include budget for new budget period (include carryover funds if applicable), revised workscope (if applicable) and any other new terms/conditions or changes that need to be addressed.
5. Continue through step 2 through 4 until the end of the last budget period.
- Communicate early and often about final financial and technical report information required by the sponsor.
6. Closeout the subaward.
Note on amendments/modifications
Through the life of a subaward, any change can be addressed with an amendment or modification:
- Change in PI
- Change in performance period
- Change in workscope
- Revised budgets
- Reporting requirements
- Change of institution (PI from original Subrecipient institution may move to a new institution. This requires closing out the original subaward; approval from the sponsor to add the new institution as a Subrecipient.) This action will require the same information required for establishing a new subaward: workscope, budget, F&A agreement. This request must be routed through URA.
- Termination of the subaward agreement.
Contact the URA Subaward Manager to initiate any changes to subaward agreements. URA prepares and signs all subaward agreements and subsequent amendments/modifications.
Key words for working with subawards
1. Sponsor: The organization that funds a research project.
2. Prime Institution: The institution that has received the award from the Sponsor.
3. Prime Award: Funds that have been obligated by a funding agency for a particular project to the Prime Institution.
4. Subrecipient: The legal entity to which a subaward is made and which is accountable to the Prime Institution for the use of the funds provided.
5. 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.
6. Modification: Mechanism used to modify any aspect of an existing subaward agreement. Used interchangeably with Amendment.
Non-Research Subaward Agreements
Because of the special needs of such agreements, the local administrator should contact URA who will work with the Office of Legal Counsel to prepare an agreement appropriate to the requirements of the project.
