Subaward Management: Mitigating Risks & Compliance

1. Subawards and Subrecipient monitoring

2. 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 http://www.udel.edu/research

3. 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

4. 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 http://www.udel.edu/research

5. 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 http://www.udel.edu/research

6. 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 http://www.udel.edu/research

7. 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

8. 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 http://www.udel.edu/research

9. 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 http://www.udel.edu/research

10. Risk Assessment Doc http://www.udel.edu/research

11. http://www.udel.edu/research

12. Indirect Costs – 200.331, 200.414 • Obligated to pay subrecipient’s federally negotiated F&A rate • de minimus 10% MTDC http://www.udel.edu/research

13. 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 http://www.udel.edu/research

14. 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