Sponsored Projects Training Program
Subawards and Subcontracts
October 17th, 2011
Renee Hunt, Julie Macy & Dawn Pelkey
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
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Terminology
SPA – Sponsored Project Administration
 Subaward/Subcontract
 Subrecipient
 Subrecipient vs Vendor
 Prime Recipient
 Substantive Work

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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….”
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?
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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?
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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.

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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
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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
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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 (preencumbrance is liquidated)
◦ Procurement creates Vouchers against
Purchase Order as invoices are
received/approved by PI & SPA (liquidates
encumbrance)
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Subaward at time of Award,
continued

PI responsibilities
◦ Programmatic – monitors sub-recipient
performance
◦ Compliance – ensure all compliance
requirements UVM is subject to, the subrecipient adheres to
◦ Administrative/Fiscal – approves sub-recipient
invoices
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Post Award and Close-out
 Invoice
review & approval
◦ SPA responsibility
◦ PI responsibility
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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
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Post Award and Close-out,
continued

Closeout
◦ Final invoice
 Due 60 days from end date of subaward
◦ PI responsibility
◦ SPA responsibility
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Post Award and Close-out,
continued

Audit
◦ Federal requirement
◦ UVM subrecipient monitoring
◦ UVM’s A-133 audit
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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 NonProfit Organizations
◦ http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a1
33_revised_2007.pdf

UVM’s subrecipient monitoring policy:
◦ http://www.uvm.edu/policies/grants/subrecipient_monitoring.pdf
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Conclusion
◦ Explained relevant terminology
◦ Described what’s necessary and the process
at:
 Proposal
 Award
 Close-out
◦ Demonstrated how to access information
through SPA website
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Questions/Contact Info

Sponsored Project Administration (SPA)
◦ http://www.uvm.edu/spa/
◦ Main Campus Office
217 Waterman Building, 6-3360
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