The University of Arizona

Subaward Management

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Step 1: Subrecipient Monitoring
Step 2: Payment to Subrecipient
Step 3: Initiating Subaward Amendment
Step 4: Amendment Approvals
Step 5: UAccess Financials Purchase Order Amendment (POA)

Upon completion of a fully-executed subaward, the business/finance office and principal investigator should begin to fulfill the roles and responsibilities of managing and monitoring the subaward. 

Step 1: Subrecipient Monitoring

Based on the compliance review at the subaward initiation phase, the Sponsored Projects Services (SPS) SubAwards Team established a risk level for the subaward. The Subrecipient Monitoring Guide include a risk assessment level matrix. The matrix describes the subrecipient monitoring actions required at each risk level by the principal investigator and the business/finance office for the subaward. An example of the Subrecipient Monitoring Responsibilities Acknowledgement Form is available under Forms & Templates.

Subrecipient monitoring activities by the principal investigator and business/finance office according to the assigned risk level include:

  • Implementing the communication schedule established in the subaward 
  • Monitoring progress of the subaward
  • Reviewing invoices and financial reports for irregularities, lack of progress, and improper cost accounting
  • Sample review of cost items by the business/finance office on a regular basis
  • Invoices, annual and final financial reports MUST include the invoice certification requirement from OMB Uniform Guidance for any new prime award funds received AFTER December 26, 2014
  • Review performance/progress report as determined by risk level
  • Site visits to the subrecipient by the principal investigator
  • Periodic desk audit by the business/finance office and/or SPS SubAwards

Subrecipient monitoring by the principal investigator and business/finance office also includes keeping a copy of the following:

  • Budget Negotiation Documentation form – including copy of rate agreement and other documentation to support costs associated with the budget
  • Each invoice should have the required system-generated financial report and Payment Authorization Form
  • All reports – technical, progress/performance, financial, annual, etc.
    • Financial report submitted with invoice should include transactional and payroll records
    • Annual financial report should be a summary, by cost categories, of expenses incurred during the prior year, as well as a cumulative total
    • Final financial report submitted with the final invoice should be a summary, by cost categories, of the total expenses for the ENTIRE Subaward
    • Performance/progress reports include verification of the work being conducted and the results are in line with the approved scope of work
    • Technical report should be a detailed report of the activities carried out and ALL deliverables associated with the approved scope of work
  • All other documentation serving as the proof of subrecipient monitoring activities. For example, meeting agenda and notes, etc.

Step 2: Payment to Subrecipient

Subrecipient payment approval process is an opportunity for the principal investigator and business/finance office to review an invoice and supporting financial report for allowability and reasonability of costs. The Subrecipient Monitoring Guide provides detailed guidance on invoice review. Once the invoice is reviewed and approved, the principal investigator and business/finance office will complete the Subaward Payment Authorization Form and submit it together with the subrecipient’s invoice to Accounts Payable (AP) for payment. The SPS SubAwards Team reviews/approves UAccess Financials Payment Request initiated by AP and approved by the business/finance office.

The invoice certification requirement from the OMB Uniform Guidance (2 CFR 200), Section 200.415 is required on all invoices, annual and final financial reports for any new prime award funds received AFTER December 26, 2014. The SPS SubAwards Team has incorporated the following required language into terms of the new and existing subawards:

“By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”

Step 3: Initiating Subaward Amendment

When necessary, the principal investigator and business/finance office will modify a subaward by completing the Subaward Modification Initiation Form and submitting it to SPS SubAwards Team via email at SPS-Subawards@email.arizona.edu. Please do NOT initiate a Purchase Order Amendment (POA) until notified by SPS SubAwards Team.  A POA in UAccess Financial will prevent invoice payments from being processed.

Generally, a modification is required for these changes:

  • Add additional funding
  • Extend the subaward end date
  • Modify or add terms and conditions
  • Change of prime award PI or subrecipient PI
  • Change of scope of work or budget

Upon receipt of the initiation form, the SPS SubAwards Team begins the various required compliance checks:

  • Financial audit checks based on OMB Uniform Guidance under 2 CFR 200, Subpart F
  • Compliance requirement checks (Export Control, Conflict of Interest, SAM.gov registration, etc.)
  • Compliance check for debarred/suspended entities and individuals as stipulated in the Subrecipient Monitoring Guide
  • Complete risk assessment of subrecipient to establish risk level. Each risk level conveys a different set of responsibilities for the principal investigator and business/finance office as defined in the Subrecipient Monitoring Guide

Note: Per OMB Uniform Guidance, compliance checks must be performed on an annual basis.

After completing the compliance check and drafting the subaward modification, SPS SubAwards Team sends the draft modification and a SC-227 form to the business/finance office and principal investigator for approval.

Step 4: Amendment Approvals

Upon receipt of the signed SC-227 form, the SPS SubAwards Team sends the subaward modification to the subrecipient for review and signature. Additional negotiation of the subaward terms may be necessary and require further principal investigator and business/finance office involvement. Upon final agreement between the University of Arizona and the subrecipient, the SPS SubAwards Team will obtain a partially signed modification from the subrecipient.

Step 5: UAccess Financials Purchase Order Amendment

Once a partially signed modification has been obtained, the SPS SubAwards Team will direct the business/finance office to initiate the UAccess Financials Purchase Order Amendment (POA). For more information about amending a purchase order for a subaward, navigate to the UPK training provided by University Information Technology Services (UITS). Enter "subcontract" in the search box and select "Amending a Purchase Order for a Subcontract."

Not all subaward modifications require a POA via UAccess Financial. A POA is required for these actions:

  • No cost extension
  • Addition or reduction of funds
  • Additional funds and extension of time period
  • Change in subrecipient legal name
  • Changes in subrecipient PI name

All other changes such as change of scope and budget, change of UA PI, and modify terms and conditions will require the issuance of a legal modification but a POA via UAccess Financial is not required.

When the POA routes to the SPS SubAwards Team for approval, the SPS SubAwards Team will approve the PO Amendment in UAccess Financials. Procurement & Contracting Services (PACS) will finalize the POA and Contract & Research Support Program will fully execute the subaward modification. The SPS SubAwards Team will provide a fully-executed subaward modification to the subrecipient and the University of Arizona business/finance office.