FloridaAtlantic University Division of Research Subcontract and Monitoring Guidance Grid Principal Investigator (PI) Sponsored Programs (SP) Research Accounting (RA) BEFORE Issuance of Subcontract 1. Determine the need for subcontracting: a. Identify a subcontractor; or b. Issue a Request for Proposal (RFP) 2. Potential subcontractors are required to fill out Subaward Application: a. Subaward Application Form includes: □ Scope of Work □ Detailed Budget □ Financial Conflict of Interest □ Financial Profile Note: If a subcontractor application has not been submitted in full during the proposal stage, an application will be required in order to issue a subcontract agreement. 3. Review and approve subcontract application, and forward to SP for further approval. 4. Upon approval from SP, the PI will request a Letter of Intent (LOI) from the subcontractor to be submitted withthe proposal. 1. Review Subcontract Application for eligibility: 1. Assist Pre-Award with risk assessment regarding A-133 Audit Reports. a. Verify if the contract is the acquisition of goods and services to determine a vendor from a subcontractor b. Verify ifthe organization is debarred c. Budget evaluation (cost analysis) to determine allowability, allocability and reasonableness d. Review most current A-133 Audit (contact RA for assistance, if needed) e. Determine if there are export control issues f. Determine financial conflict of interest g. Assess level of risk associated with the proposed subcontractor (low, medium, high) 2. Inform PI of approval and the risk level assessed. If risk level is “high,” then General Counsel is required to approve 3. Upon receiving award notification and approval, SP will negotiate an agreement with the subcontractor 4. Prepare subcontract agreement for execution DURING the Subcontract Agreement 1. Establish and maintain channels of communication with subcontractor; perform on-site visits, if applicable 2. Review and ensure that invoices are: a. Submitted in a timely manner b. Expenses are allowable, allocable and reasonable c. Expenses are incurred within the period of performance d. Expenses are aligned with technical progress e. Cost-sharing is appropriately reflected; if applicable f. Invoices are approved by PI or their designee and forwarded to A/P for payment 3. Review technical progress to ensure performance goals are achieved; and identify any problems in carrying out the project a. PI is required to fill out a semi-annual Subcontractor Verification Form 4. If changes occur with the prime or subcontractor; the SP must be notified in order to amend an agreement 5. Approve close-out a. PI is required to fill out a Subcontractor Verification Form 1. Process no cost extensions; when applicable 1. Maintain documentation for monitoring efforts 2. Process amendments; when applicable 2. Request and review annual A-133 Audit Reports or audited financials 3. Review A-133 reports or other audited Financial statements for material weaknesses, reportable conditions, current audit findings and prior audit finding resolutions a. If a finding is reported and is related to the project that FAU has subcontracted for, then General Counsel will be requested to review to determine if a management decision is required 4. Issue Management Decision; when applicable a. Notify PI and SP issued management decisions, when applicable 5. Assist PI in carrying out their monitoring responsibilities a. Issuing semi-annual and close-out Subcontractor Verification Forms 6. Close-out