Subawards and Subrecipient monitoring

Subaward - 2 CFR 200.92 A formal legal agreement between your institution and another legal entity An award provided by a pass-through entity (PTE) to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor It does not include payments to an individual Typically subrecipient will be utilizing their own personnel, space and materials to complete the scope of work for the subaward To be a proper steward of Federal funds, to exercise our responsibility as a PTE we have to do what the Feds are doing to us First – assessing Second – monitoring subaward as you go along http://www.udel.edu/research

Risk as a Pass Through Entity Prime recipient responsible for actions of subrecipient Adhering to federal regulations Appropriate systems/controls in place Work accomplished Monitoring plan sufficient to mitigate potential risks of non-compliance by subrecipient http://www.udel.edu/research

Subaward Set Up/Management Subaward Document – 200.331 Subrecipient Information Name, contact information, DUNS, EIN, IDC rate Award Information Name of Federal awarding agency, Federal award date, FAIN, amount of obligated federal funds in this action, total amount of obligated funds, total amount of award to PTE, CDFA number and name, R&D Terms/Conditions of Award FFATA (if applicable), flow down from Federal award Specific Terms/Conditions Management decision from RAQ Reporting Requirements Audit Requirements Name on subrecipient agreement must match name on the unique identifier (DUNS or EIN) FFATA – federal award project description as required for FFATA reporting In subaward doc – also include SOW, Budget (payment schedule if fixed price) and Justification as well as prime agreement (for flow down T/C) Audit Requirements – must comply with annual audit requirements per UG, and also allow PTE and representatives of the Prime Sponsor access to audit their records http://www.udel.edu/research

Risk Assessment – 200.331 Conduct risk assessment PTE prior experience with subrecipient Results of previous Federal single audits If not subject to single audit, review alternative financial information Subrecipient has new personnel/systems Results of prior direct federal funding if applicable Type of work being conducted Animals/human subjects Export controls Where is work being conducted Domestic or foreign organization Amount of subaward in relation to prime award Conflict of Interest Policy If not subject to single audit, review alternative financial information  Mini Audit from PTE Does subrecipient have compliant policy or will subrecipient adhere to pass through entity (PTE) COI policy http://www.udel.edu/research

Risk Assessment – 200.331 200.512 PTE should use Federal single audit results to evaluate subrecipient risk by accessing it on the Fed Audit Clearinghouse (FAC) 200.331, 200.521 if risk assessment findings are non compliant, PTE should make management decision noting: Reason for decision Expected action Timetable for follow-up if needed Six months to issue 200.338 Noncompliance Remedies If not subject to single audit, review alternative financial information  Mini Audit from PTE http://www.udel.edu/research

Noncompliance Remedies – 200.338 Temporarily withhold cash payments pending corrective actions Disallow part or all of cost of activity Wholly or partly suspend or terminate subaward Initiate suspension or debarment as per 2 CFR part 180 Withhold further subawards to entity http://www.udel.edu/research

Specific Conditions – 200.207 Additional potential terms and conditions to mitigate risk Payments as reimbursement Not allow automatic carryover More detailed financial reports Require subrecipient to obtain technical/management assistance Additional prior approvals Payments as reimbursement rather than advance payments Not allow automatic carryover into future budget periods More detailed financial reports – i.e., quarterly receipts as backup docs Require subrecipient to obtain technical/management assistance Additional prior approvals Do not require terms/conditions if cannot monitor them appropriately http://www.udel.edu/research

Fixed Amount Subawards – 200.332 Prior written approval from prime to provide fixed amount subaward Up to Simplified Acquisition Threshold $3,000 - $150,000 Required to meet standards in 200.201 MOST of the time we pay subs on a cost reimbursable basis, not fixed amount Simplified acquisition threshold is 3k to 150k – so can go up to 150k So weigh the risks of using fixed amount subaward Provides specific level of support without regard to actual costs incurred Reduces some of the administrative burden Reduces record-keeping requirements Accountability primarily based on performance and results Award amount negotiated using cost principles Project scope is specific Adequate cost, historical or unit pricing is available – provide reasonable estimates of actual costs Accountability is based on performance and results Except in case of early termination no review of actual costs incurred Several partial payments, amount agreed upon in advance & the milestone or event triggering payment agreed upon in advance. Unit price basis for a defined unit or units, defined price or prices agreed to in advance One payment at award completion http://www.udel.edu/research

Risk Assessment Doc Does subrecipient have compliant policy Subrecipient adhere to pass through entity (PTE) COI policy http://www.udel.edu/research

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Indirect Costs – 200.331, 200.414 Obligated to pay subrecipient’s federally negotiated F&A rate de minimus 10% MTDC Obligated to pay subrecipient’s federally negotiated F&A rate at time contract is fully executed – for full duration of the award even if their negotiated rate changes (some exceptions: e.g., hospitals) If no federally negotiated F&A rate, provide de minimus 10% MTDC http://www.udel.edu/research

Subrecipient Monitoring Invoice Review and approval by PI and Department Administrators Payment – 200.305 Expected 30 calendar day payments (unless not compliant) Financial & Progress Reports and deliverables – 200.331, 200.328 Must specify required reports Review of programmatic reports Institutional officials should be alerted if there are problems with any of the above Invoice Review – PI review – only one who can assess whether or not the invoice reflects the progress of the work being accomplished Cost reimbursement – 200.305 Expected 30 calendar day payments Non performance or non compliance Financial & Progress Reports – 200.331, 200.328 Must specify required reports Review of programmatic reports Institutional officials should be alerted if there are problems with any of the above – this is HOW we monitor subawards – deal with it sooner rather than later (don’t wait until closeout for a year 1 invoice) http://www.udel.edu/research

Closeout – 200.331 Appropriate terms/conditions for closeout of subaward Programmatic reports Financial reports Final invoice & closeout documentation Other reports required by Prime award, as applicable http://www.udel.edu/research