Subawards

Content

Subaward Budget Setup and Purchase Orders

Monitoring and Invoicing

Modifying a Subaward Agreement

Closeout


Subawards to conduct research on behalf of UC Berkeley may be made to other UC campuses, other universities or other entities. UC Berkeley can also receive subawards from, and perform research on behalf of, other institutions. IMPORTANT: all subaward agreements -- both from Berkeley and to Berkeley -- must be arranged through and approved by the Sponsored Projects Office (SPO). It is the PI’s responsibility to request SPO establish a Subaward Agreement when the primary award proposal identifies other universities or entities that will conduct research on behalf of UC Berkeley.

Fund Advances for Subawardees

In general, advancing funds to subawardees prior to primary award set up is not allowed. Most subrecipients can meet their short term working capital needs and can do business on a cost reimbursable basis rather than requiring an advance. More information is available on the SPO site(link is external).

Subaward Set-up and Initial Spending

When Berkeley Receives a Subaward…it is processed by SPO and CGA like any other award:

1. SPO sends a Phoebe Award Summary to the PI, department, and CGA.

2. RA/Dept. submits a budget within two business days to CGA via the BFS Grants WorkCenter

3. Within two business days of receiving the budget, CGA sets up the award in BFS and notifies the PI and department that spending may begin.

When Berkeley Makes a Subaward it is typically referenced in the primary award Phoebe Award Summary. Outgoing subaward budget requirements vary depending on the subrecipient (UC campus or other entity) and the subaward amount (less or more than $25,000).

IF the subrecipient is another UC campus (no overhead is charged):

1. SPO notifies the PI, the department, and CGA when the subagreement is finalized (typically included in the primary award Phoebe Award Summary).

2. RA/Dept. includes a row for the subaward direct expense amount in the primary award budget submitted to CGA (do not make a separate budget for a subaward).
-- Use account # 58014 for the entire amount (see Budget Categories)
-- If the subaward include cost sharing, add another row for this 3rd party cost share (see Cost Share Budgeting)
-- Unless the sponsor requires specific reporting on subaward activities, there is no need to create a separate “body of work” Project for the subaward in the primary award structure (no CF1 needed)

3. CGA notifies PI/RA when set-up is complete and spending may begin.

4. Department then creates a Purchase Order (PO) in BearBuy for the subaward budget amount

-- use appropriate intercampus expense account (see below) and the primary award's fund # and other chartfields in the PO chartstring

Campus - Account

UCSF - 57820

UCD - 57830

UCLA - 57840

UCR - 57850

UCSD - 57860

UCSC - 57870

UCSB - 57880

UCI - 57890

UCM - 57895

-- reference the primary Award# as well as the SubAward# in the PO documentation.

5. The PI notifies the subrecipient that work may begin.

IF the subrecipient is a non-UC entity or a DOE Lab (overhead is charged on only the first $25k of costs):

1. SPO notifies the PI, the department, and CGA when the subagreement is finalized (typically included in the primary award Phoebe Award Summary).

2. RA/Dept. includes two or three rows for the subaward (depends on the budget amount) in the primary award budget submitted to CGA. (click to see an example
-- Use account # 58013 to budget for subaward direct expenses up to $25k (unless the sponsor requires more detailed reporting). Include a budget for indirect expenses on this amount
-- a third line uses account #58014 to budget for direct expenses over $25k (no overhead)
-- If the subaward include cost sharing, add another row for this 3rd party cost share (see Cost Share Budgeting)
-- Unless the sponsor requires specific reporting on subaward activities, there is no need to create a separate “body of work” Project for the subaward in the primary award structure (no CF1 needed)

3. CGA notifies PI/RA when set-up is complete and spending may begin.

4.0 Department then creates a Purchase Order (PO) in Bearbuy with one or two lines, depending on the subaward amount:
-- first PO line is for budget amount up to $25,000 -- use expense account# 57811 and the primary award fund# in the chartstring
-- second PO line is for any budget amount over $25,000 – use expense account# 57810 and the primary award fund# in the chartstring.
-- reference the primary Award# as well as the SubAward# in the PO documentation

5. The PI notifies the subrecipient that work may begin


Subrecipient Monitoring and Invoices

UC Berkeley relies on Principal Investigators (PIs) to be the primary control point to ensure subrecipient work progresses per the agreement. The administrator, program manager, or Principal Investigator reviews periodic reports of technical and programmatic activities, as well as reviews subrecipient invoices for allocability, allowability, and reasonableness of costs. Subcontractor invoices should have enough detail to determine how the funds are used to meet the subaward agreement. Invoices/costs which differ materially from the approved budget, or which appear unusual or unallowable, should be held until a satisfactory explanation is received. It is the responsibility of the PI or their delegate to ensure the work/expenses included on the subawardee invoice has been performed in accordance with the terms of the subaward. Additional guidance for monitoring subrecipients is provided on the SPO website: http://spo.berkeley.edu/guide/subrecipient_monitoring.pdf

Invoices

When Berkeley is the Subawardee: CGA manages invoicing the primary awardee per the terms of the subaward (identical to the way CGA invoices a sponsor).

When the Subawardee is another UC campus: requests for reimbursement are sent to directly to CGA. Payment is an intercampus transfer processed via BearBuy by CGA.

When the Subawardee is a non-UC entity or a DOE Lab: invoices are sent directly to the Department (with a copy to the Disbursements Office) for review. Code the first $25,000 in direct expenses to Account #57811 (incurs overhead), and expenses above that to Account #57810 (exempt from overhead), unless other requirements are specified by the sponsor. The Department then uploads the approved/coded invoice to BearBuy, and Disbursements processes the payment.

UC Berkeley is responsible for ensuring subrecipients are in compliance with the requirements of appropriate standards for good business practices, including internal controls in accordance with OMB Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations.

Amending a Subaward Agreement
To revise a subaward -- for instance, to provide additional funding or modify the scope of work -- the PI must submit a Request to Amend Existing Subaward form (PDF) to SPO. CGA cannot alter the terms of a subaward agreement.


Closeout for Subawards

When Berkeley is the Subawardee… The PI is responsible for submitting technical reports or other required deliverables by the stated deadline in the subaward agreement.

When Berkeley Makes a Subaward The PI is responsible for ensuring that

  • all required reports and deliverables have been received
  • that Cost Sharing commitments (if applicable) have been met
  • the final invoice is accurate, complete and marked “Final”

The Subaward Closeout Checklist (PDF) provides a list of reports and deliverables typically required.

Subawardees/subcontractors are now contractually required to submit their final invoice within 45 days of the award expiration date. This will ensure adequate time for the invoice to be posted to the GL and the PO to close as part of normal award closeout procedures. If the final invoice is not received on time, accrue for the outstanding amount to close the award (see accrual procedures).