1. Subawards and Subcontracts Sponsored Projects Training Program October 17 th, 2011 Renee Hunt, Julie Macy & Dawn Pelkey

2. 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 Sponsored Projects Training Program2

3. Terminology SPA – Sponsored Project Administration Subaward/Subcontract Subrecipient Subrecipient vs Vendor Prime Recipient Substantive Work Sponsored Projects Training Program3

4. 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….”

5. 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? 5Sponsored Projects Training Program

6. 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? Sponsored Projects Training Program6

7. 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. Sponsored Projects Training Program7

8. 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 Sponsored Projects Training Program8

9. 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 Sponsored Projects Training Program9

10. 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 (pre- encumbrance is liquidated) ◦ Procurement creates Vouchers against Purchase Order as invoices are received/approved by PI & SPA (liquidates encumbrance) Sponsored Projects Training Program10

11. Subaward at time of Award, continued PI responsibilities ◦ Programmatic – monitors sub-recipient performance ◦ Compliance – ensure all compliance requirements UVM is subject to, the sub- recipient adheres to ◦ Administrative/Fiscal – approves sub-recipient invoices Sponsored Projects Training Program11

12. Post Award and Close-out Invoice review & approval ◦ SPA responsibility ◦ PI responsibility 12Sponsored Projects Training Program

13. 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 – 10 th day following end of quarter  Subrecipient – 5 th day following end of quarter ◦ SPA responsibility ◦ PI responsibility Sponsored Projects Training Program13

14. Post Award and Close-out, continued Closeout ◦ Final invoice  Due 60 days from end date of subaward ◦ PI responsibility ◦ SPA responsibility Sponsored Projects Training Program14

15. Post Award and Close-out, continued Audit ◦ Federal requirement ◦ UVM subrecipient monitoring ◦ UVM’s A-133 audit Sponsored Projects Training Program15

16. Additional Resources A-110 – Uniform Administrative Requirements ◦ http://www.whitehouse.gov/omb/circulars_a110 http://www.whitehouse.gov/omb/circulars_a110 A-21 – Cost Principles for Ed. Institutions ◦ http://www.whitehouse.gov/omb/circulars_a021_2004 http://www.whitehouse.gov/omb/circulars_a021_2004 A-133 Audits of States, Local Governments, and Non- Profit Organizations ◦ http://www.whitehouse.gov/sites/default/files/omb/assets/a133/a1 33_revised_2007.pdf 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 http://www.uvm.edu/policies/grants/subrecipient_monitoring.pdf Sponsored Projects Training Program16

17. Conclusion ◦ Explained relevant terminology ◦ Described what’s necessary and the process at:  Proposal  Award  Close-out ◦ Demonstrated how to access information through SPA website 17Sponsored Projects Training Program

18. Questions/Contact Info Sponsored Project Administration (SPA) ◦ http://www.uvm.edu/spa/ ◦ Main Campus Office 217 Waterman Building, 6-3360 18Sponsored Projects Training Program