Conducting Collaborative Projects Part 4 OSP Awareness Feb 16, 2011 osp.syr.edu

Today’s Topics – Reviewing subaward invoices efficiently and effectively Closing-out your Subaward Lisa Kaley-Heyn Office of Sponsored Programs

The Process in Review Why necessary anyway?

Subaward Setup PI/Department submits Request to Issue to OSP OSP Post Award Administrator completes required subrecipient risk assessment Subrecipient submits the Subrecipient Commitment Form OSP RA reviews the terms of the prime award, subrecipient work plan, budget, risk assessment and subrecipient commitment OSP RA negotiates and executes subaward OSP Post Award Administrator establishes the subaward file and submits requisition to establish subaward commitment in Peoplesoft

Subaward Management PI coordinates the technical aspects of the collaboration with subrecipient Subrecipient invoices SU for work done OSP Post Award Administrator reviews invoices and forwards to PI for approval PI reviews and approves invoice for payment as appropriate OSP submits approved invoice for payment Subrecipient completes work and submits final invoice PI receives and approves both final report and invoice OSP Post Award forwards the Subaward Closeout Form to PI for completion PI returns Subaward Closeout Form to OSP for final subaward closeout

Subaward Invoices

Contract Language Re: Invoices University shall reimburse Collaborator not more often than monthly for allowable costs. All invoices shall be submitted using Collaborator’s standard invoice, but at a minimum shall include current and cumulative costs (including cost sharing), subaward number, and certification as to truth and accuracy of invoice. Reimbursement shall be made upon receipt of itemized invoices and receipt of progress reports in accordance with the Scope of Work.

Contract Language Re: Invoices Each invoice must reference the SU account number and must include documentation of cost sharing expenditures, if applicable, during the invoice period. Invoices shall be submitted not more frequently than monthly, but must be submitted at least quarterly in accordance with the Approved Budget, The final invoice must be submitted promptly following completion of the work under this agreement but in no event later than thirty (30) days

Sample Invoice

Invoice Review by OSP OSP performs the initial administrative review to : – Confirm that the invoice’s billing period is within subaward’s period of performance; – Confirm there are sufficient funds committed to process the invoice (i.e. subaward is not over expended); – Identify any clearly unallowable costs; – Identify expenditures that may require OSP or sponsor approval; and – Confirm the correct application of subrecipient’s F&A rate (randomly conducted).

Invoice Review by PI The PI/PD should consider the following questions in conducting his/her assessment: – Are budget line expenditures consistent with those presented in the sub award? – Are expenditures reasonable and appropriate for the project? – Are expenditures allowable and, as applicable, appropriately documented? – Are participant support costs included? And if so, are these reasonable in the context of known work and associated budget? – Is the pace of expenditures appropriate for the subaward? No work  no pay? No expenditures  no work? – If cost sharing is required, is cost sharing also appropriate and timely?

Invoice Review by PI To document a proper approval process, the PI/PD must approve payment of all subaward invoices by responding to the following request: “ Please review the attached invoice from Subrecipient, PI - Name, Contract Number in the amount of $xx.xx. If you find these charges acceptable please respond to the /fax so that the payment may be processed. By approving the invoice, you certify that you have reviewed the expenditures and determined that they are reasonable in the context of the sub-recipient’s work performed to date. You also certify that you have received and approved all technical reports required to date and are satisfied with project performance.”

Payment of Invoices Common subaward invoice issues: – Invoices include charges outside of the project period; i.e. expired subawards – Charges not clearly identified and/or included in the approved budget; i.e. travel, consultant charges – No subaward number included – Mathematical errors in the calculation of the F&A or the cumulative charges to date – Charges for overlapping billing periods

Payment of Invoices cont’d Once invoices are approved for payment they are processed through the Purchasing Department and are then forwarded to Disbursements for payment. From the time payment is approved, invoices are generally paid within a week or two.

Closeout

When the Subaward Period Ends - Annual Budget Period - OSP will notify the PI that the subaward has ended and that the subrecipient has submitted an invoice through the end of the period. The PI must submit a Request to Modify the Subaward to OSP to extend the agreement beyond the original end date. OSP will amend the subaward and the associated commitment (Purchase Order).

When the Work is Done-Done OSP Responsibilities – Request a Final Invoice from the Subrecipient – Process payment upon PI approval – De-obligate any remaining commitment and close all related standing orders – Forward the Closeout Form to the PI – Upon completion and receipt, formally close the Subaward File

When the Work is Done-Done PI Responsibilities – Review the Final Invoice and approve as appropriate – Review and approve any required final technical report or other report i.e. invention – Sign and return the Closeout Form to OSP

PI Closeout Form

Questions?

Collaborating with Others What’s Next? Part 2 – April 6, 2011 – SU Collaborators - Voices of Experience