Subawards

Some sponsored awards require the need to collaborate with colleagues at other institutions or organizations to conduct scientific or programmatic portions of the project. In these cases, NIU is transferring a portion of the sponsored project to the collaborating institution; that institution is identified as a subrecipient. In these arrangements, NIU assumes the role of the sponsor and is responsible for monitoring that institution’s technical progress and financial management of the project. This monitoring is done via a subaward agreement (i.e., outgoing subaward) that SPA will issues to the subrecipient.

Whenever possible, SPA uses the Federal Demonstration Partnership approved subaward agreement templates.

Two key aspects of these arrangements are:

• Subrecipient monitoring
• Subrecipient reporting

In addition to subrecipient monitoring, under the Federal Funding Accountability and Transparency Act (FFATA), NIU needs to report to the federal government on how subrecipient funds are being spent. SPA completes this reporting for any subaward exceeding $30,000.    

Outgoing subawards may be issued with either a cost-reimbursable (most common) or a fixed-price payment mechanism.  

Issuing fixed-price subawards from federal grants requires a sponsor’s prior approval. Obtaining prior approval can be avoided, however, if the subaward is listed as a fixed price within the proposal. If prior approval is needed, SPA will facilitate that request to the agency.

It is important to note that subrecipient budgets must match the payment mechanism within the subaward. For example, a cost reimbursable budget should not be based on deliverables or milestones.

See Fixed Price Subawards for additional information.

Collection of financial data, review of subrecipient invoices, monitoring of award expenditures, and collecting data for programmatic and financial reporting (including FFATA)  takes a collaborative effort among investigators and administrators, both at NIU and at the subrecipient organization.