Subcontracts (Subawardees)

If a portion of the grant/contract is subcontracted to another school/agency, the funds are obligated in Oracle FMS as an encumbrance. When a subcontractor is identified through a funded grant proposal, the ORSP sends a requisition to Purchasing utilizing expenditure types 797000 (first $25,000 of a subcontract) or 797100 (balance of subcontract over $25,000, or the subsequent year of a subcontract that is not awarded on a competitive basis). Payment of subawardee invoices is tied to the subawardee’s performance in meeting the goals outlined in the scope of work. Once the PI/PD has determined the charges are appropriate, the work has been done, and he or she approves the invoice by signing and dating it, the invoice is forwarded to GCA for a final review before it is processed by Accounts Payable for payment. The PI/PD must review all such invoices in a timely manner so that the university can meet its responsibility to pay the subawardee in a timely manner. These should be submitted within 15 days of the invoice date. The staff of ORSP and GCA can assist the PI/PD if there are difficulties concerning subawardee performance.


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