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I.   POLICY STATEMENT. 

This policy outlines the College’s policy and procedures for monitoring subawards and subrecipients of sponsored funding. This policy was developed to standardize subaward issuance, outline responsibilities related to administering subawards, and ensure compliance with federal, state and local laws that affect the administration and performance of subawards. While federal regulations form the baseline of this policy, this policy applies to all extramural subawards, regardless of the sponsor of such funding, to ensure consistent institutional compliance.

II.  APPLICABILITY. 

This policy applies to all subawards of sponsored funding issued by the College when the College acts as the Pass-Through Entity.

III.  DEFINITIONS.  

Contractor/Vendor: An entity that receives a contract (a legal instrument) for the purchase of goods, property, or services in support of a sponsored project or program.

Non-Federal Entity: A state, local government, Indian tribe, institution of higher education, or nonprofit organization that carries out an award as a Primary Institution or Subrecipient of Sponsor funds.

Pass-Through Entity (“PTE”): A pass-through entity is a non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal or non-Federal sponsored program. For the purposes of this policy, the College is the PTE.

Primary Institution: Institution that is awarded the sponsored agreement by the Sponsor.

Prime Award: The initial award of financial assistance (grant, cooperative agreement, or contract) a sponsor provides directly to the Primary Institution.

Sponsor: The external funding agency or organization that provides financial support for a project, research, or activity to the prime institution. The sponsor is the prime source of the funds (e.g., federal government, foundation) and sets the terms, conditions, and regulations for how those funds are spent.

Subaward:  A special type of binding legal contract between a PTE and a Subrecipient so the Subrecipient can carry out part of a Prime Award received by the PTE. Subaward also includes awards made by a Subrecipient to a lower-tier subrecipient. Subaward does not include (i) the procurement of goods and services funded by a prime award (ii) payments to a Contractor/Vendor for goods and services or (iii) payments to an individual that is a beneficiary of a Federal program. (2 CFR §200.330). 

Subrecipient:  A non-Federal entity that receives a Subaward from a PTE to carry out part of a Prime Award.

IV.  POLICY.

A.        Pre-Award

At the proposal stage, when the College intends to issue a subaward to another entity, the potential Subrecipient should submit the following to the Sponsored Research Office (SRO):

• Subrecipient commitment form [1] [2] [3] [4] , signed by the Subrecipient’s Authorized Organizational Representative
• Scope of work
• Budget and budget justification
• Any other documents required by the College or Sponsor

The SRO reviews the documents for compliance, to confirm the proposed collaboration is appropriately classified as a Subaward, and to assess the potential Subrecipient’s baseline level of risk.

B.         Post-Award

Should the Prime Award be made, the College (as the Primary Institution), with the Principal Investigator (PI)/Project Director (PD), SRO, and/or Business Office, will confirm the proposed collaboration necessitates a Subaward agreement as opposed to a Vendor or Contractor agreement. Below are key considerations in determining whether the collaborator is a Subrecipient or Contractor/Vendor:

 

Subrecipient

Contractor/Vendor

Substantive, programmatic work or an important or significant portion of the research program or project is undertaken by the other entity. The entity participates creatively in designing and/or conducting the research. The entity retains some programmatic control and discretion over how the work is carried out. The proposed work is uniquely designed in response to each project. A PI/PD has been identified at the entity and functions as a Co-PI/PD. The entity will retain rights to intellectual property.

Provides routine goods and/or services to other customers or clients. Provides goods or services developed according to the PI/PD’s specifications. Provides personal services that are primarily advisory in nature. Provides other ancillary services related to the sponsored project per the instructions of the PI/PD.

 

If the entity is determined to be a Subrecipient, the SRO will assess the Subrecipient’s financial status and internal controls; this includes confirming in SAM.gov that a potential Subrecipient is not suspended, debarred, or otherwise excluded from receiving Federal funds.

The College will include terms and conditions in the Subaward consistent with the level of perceived risk. In the event that risk cannot be mitigated (e.g., adverse audit findings, debarment, suspension, etc.), the College reserves the right to refuse, modify, or, in the case of an existing Subaward, terminate the Subaward per the processes outlined in the Subaward. Terms and conditions from a Prime Award are typically imposed on the Subrecipient to the same degree that they are imposed on the Prime Institution.

If a federal Subaward is equal to or greater than $30,000, the SRO shall file required Subrecipient information to SAM.gov by the end of the month following the month a Subaward is made. This includes awards that are initially below $30,000 but subsequent grant modifications result in an award equal to or exceeding $30,000.

Subrecipient Monitoring

All Subawards must be monitored to ensure that the Subrecipient complies with the terms of the prime agreement. Monitoring is a joint responsibility between the PI/PD and the SRO.

PI/PD Responsibilities:

• Periodic review of all expenditures, and confirmation that all Subaward costs are reasonable and allowable in accordance with the Allowable Expenses for Sponsored Funds Policy.
• Ensuring that invoices are dated and submitted timely, include pertinent information describing the services reflected by billing and periods of performance, and are signed by an authorized Subrecipient representative confirming that the charges billed are allowable.
• Signing and approving the invoice, to attest that the work performed was reviewed and complies with the scope of work and budget.
• Receiving and reviewing performance reports or other deliverables .
• If necessary, performing on-site reviews as required by the specific award to monitor Subrecipient compliance and to follow up on audits and other reports.

SRO Responsibilities:

• Conduct an initial and annual review for risk assessment throughout the life of the Prime Award to ensure that funds are used in accordance with applicable regulations and the Prime Award’s terms and conditions. Determinations will be made as to whether adjustments to the Subaward are necessary.

Subaward Modifications

If a Subaward modification is needed, the SRO will assist the PI/PD to determine whether approval is needed from the Sponsor and issue any required amendments. Modifications can include changes in:

• Budgetary amounts;
• Project dates; or
• Terms and Conditions.

Procurement: Contractor/Vendor

If the relationship should be treated as a Contractor/Vendor, the PI/PD and their department will be responsible for ensuring the proper execution of any relevant services or purchasing agreement, which must comply with the terms and conditions of the Prime Award, the College’s Contracts Policy, Equipment & Property Costs for Sponsored Projects Policy, and any other applicable internal policies and procedures.

V.  POLICY HISTORY.

Responsible Officer(s): Associate Vice President for Finance/Controller

Effective Date: July 1, 2018

Last Revised Date: March 1, 2023

VI.  RELATED POLICIES AND RESOURCES.

Allowable Expenses for Sponsored Funds Policy

Fiscal Responsibilities of Principal Investigators

Contracts Policy

Equipment & Property Costs for Sponsored Projects Policy