Outgoing Subcontract Administration for Sponsored Programs

Report
University of Washington
Outgoing Subcontract
Administration
for Sponsored Programs
May 2010
1
Michael J. Blackwell, Sponsored Programs
Debbie Emerson-Carter, Sponsored Programs
Suzi Freelund, Financial Services
Michelle Schrader, Procurement Customer Service
S U B C O NTRACTS
 Through this presentation, you will
learn…
 What a Subcontract is and how it differs from a
Purchase Order for goods and services;
 The proposal requirements for including a
Subcontractor and administering a Subcontract;
 How to process invoices to pay the Subcontractor;
and
 The procedures for closing out a Subcontract.
2
SUBCONTRACTS
 PROCESS IMPROVEMENT
• Currently engaged in USER Task Group #2
• Part of Seamless Procure to Pay Project
• Goal is to Streamline Operations between
the Academic Dept., OSP, and Accounts
Payable
• New GIM 7 Subcontracts for Sponsored
Programs just released
• Plan is to be finished by mid 2010
3
S U B C O NTRACTS

I. Background, Definition, and Budget Format

II. Responsibilities of the UW PI and Various
Offices

III. Subcontracts to the UW from Another
Institution
IV. Questions or Need More Help?

4
S U B C O NTRACTS
 I. Background, Definition, and Budget Format
5
Background
 From fiscal year 2005 to 2009, the growth in
dollars of UW issued subcontracts has been
21.7%. During the same period, overall
sponsored awards grew by 12% at UW.
 This is part of a larger national trend by
Federal and private sponsors to encourage
cross-disciplinary collaborative research, e.g.,
in RFAs or RFPs.
6
S U B C O NTRACTS
Background, Definition, and Budget Format
 Definition
 Characteristics indicative of a Federal award
received by a subcontractor are when the
organization (UW PI):
 Determines who is eligible to receive what Federal financial
assistance;
 Has its performance measured against whether the objectives
of the Federal program are met;
 Has a responsibility for programmatic decision making;
 Has responsibility for adherence to applicable Federal
program compliance requirements; and
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 Uses the Federal funds to carry out a program of the
organization as compared to providing goods or services for a
program of the pass-through entity.
S U B C ONTRACTS
Background, Definition, and Budget Format
 Definition
 Characteristics indicative of a payment for goods
and services received by a Subcontractor are when
the organization (UW):
 Provides the goods and services within normal business
operations;
 Provides similar goods or services to many different
purchasers;
 Operates in a competitive environment;
 Provides goods or services that are ancillary to the
operation of the Federal program; and
 Is not subject to compliance requirements of the Federal
program.
8
S U B C O NTRACTS
 II. Responsibilities of the UW PI
and Various Offices
9
S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 Proposal Stage:
 When a UW PI selects one or more
Subcontractors, be sure to get a signed
proposal (at a minimum, work scope and
detailed budget) from authorizing official.
 Encourage use of prime sponsor forms by
the Subcontractor, e.g., R&R 424.
10
S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 This Subcontract proposal is then folded into the
UW proposal for transmittal through UW channels
and on to the sponsor.
 This is then loaded into Grants.gov or whatever
portal/method UW uses by UW dept. staff.
 Attach in SAGE to GC-1 also.
 The first $25K is subject to UW IDC, unless the
standard rate is not allowed by the sponsor, e.g.,
a 10% of TDC base.
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S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices: UW Budget Format
 Budget Format
 01







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Salaries
$100 K
07
Benefits
$ 22 K
05
Supplies
$ 5K
03-62 Subcontract (MIT)
$ 35 K
03
Other
$ 5K
-Subtotal DC
= $167 K
25-99 Subtotal [email protected]% MTDC = $87.92 K
-GRAND TOTAL
= $254.92 K
S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 Award Stage:
 When the award, including the proposed Subcontract,
is made to the UW, a Budget No. is assigned by Grant
and Contract Accounting (GCA) and the PI and dept.
staff notified.
 Next step is to start the Purchasing Requisition in PAS
using the budget number. Note: only one budget
number can be used.
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SUBCONTRACTS
 OUTGOING SUBCONTRACTS ARE
FINANCIALLY SOLVENT!
 WHY?
 WE DON’T ISSUE SUBCONTRACT
AWARDS WITHOUT THE MONEY!
14
S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
•
To avoid unnecessary delays, the PI or designated
staff person in the local UW department must:
 immediately enter an on-line Purchase Requisition
(PR) in the amount of the Subcontract,
 which is then directed via Purchasing’s Buyer
Assignment to OSP,
 where the Subcontract, including all applicable
conditions, is prepared.
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SUBCONTRACTS
 PROPER WAY TO FILL OUT A PURCHASE
ORDER FOR A SUBCONTRACT REQUEST
• Use Object Code 03-62
• Always Check “NO” for Attachments in PAS
Send Attachments to Subcontract Manager in
OSP with PR Number on Them
• Refer to OSP website for detailed guidance
•
16
S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 Subcontract Preparation:
 OSP’s Subcontracts Group will use a standard
template of general conditions (see OSP web site) and
add the special “flowdown conditions” from the prime
sponsor.
 The Subcontractor will be contacted for review and
confirmation of all terms, especially the budget (cost
and price analysis) and the need for an audit report.
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S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 Once signed by the OSP Subcontract Manager
and e-mailed to the Subcontractor, then signed
and returned to OSP, it is at this point that the
funds are encumbered in ordered status in PAS
so that invoices from the Subcontractor may be
received and processed for payment.
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S U B C O NTRACTS
Responsibilities of the UW PI and Various Offices
 Invoice or Voucher Review and Approval:
 Subcontractor submits invoices at least quarterly, not
more frequently than monthly, to Accounts Payables
(AP).
 AP coordinates with PI and department staff on
approval of invoices, then authorization is granted
back to PA for check issuance. Both RIP and Non-Rip
($10K +) procedures are used.
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S U B C O NTRACTS
Responsibilities of the UW PI and Various
Offices
 Renewals or Modifications:
 If the PI, under the prime award, receives a
new Budget No., do a new PR.
 If the existing Budget No. is used to
continue the research program, just send a
request in writing/e-mail to the OSP
Subcontract Manager.
 PIs are not authorized to amend
Subcontract terms (see Article VI).
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SUBCONTRACTS
 PROPER WAY TO REQUEST A
MODIFICATION TO A SUBCONTRACT
• New Form created about a year ago (UW PI or
authorized designee must sign)
• Using the Form is Optional, but Completing it
Properly may result in Faster Service
• The Form is available at the OSP website under
Subcontracts section
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S U B C O NTRACTS
 III. Subcontracts to the UW from
Another Institution
22
S U B C O NTRACTS
Subcontracts to the UW from Another Institution
 Members of the faculty are sometimes
invited by colleagues at other
institutions to participate in research
and other sponsored programs.
23
S U B C O NTRACTS
Subcontracts to the UW from Another Institution
 Faculty member should prepare and
submit, through regular UW channels, a
proposal with Form eGC-1 outlining the
extent of participation and funding and
facilities commitment necessary to carry
out the participation.
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S U B C O NTRACTS
Subcontracts to the UW from Another Institution
 This will provide an opportunity for the
same type of review given proposals going
to primary funding sources, and will assure
the awardee institution of official UW
approval of the proposed collaboration.
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SON - S U B C O N T R A C T S
 IV. Questions or Need
More Help?
26
S U B C O NTRACTS
Questions or Need More Help?
 Questions concerning preparation, execution and
close out of subcontracts should be directed to:
 Tru Ambrose, Verenice Barbosa, Jessica Brase and
Lorri Vlcek (for new subcontracts, renewals, and
modification requests)
 Adelina Caberto (execution and ordered status in
PAS)
 Debbie Emerson-Carter (close out matters and
ATA or invoice discrepancies)
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S U B C O NTRACTS
Questions or Need More Help?
 Questions concerning how to process invoices and
payments to Contractors should be directed to:
 Accounts Payable/Financial Services
 206-543-4500 – Main Customer Service Line
 [email protected]
 (Must have the Subcontract No. to contact this office.)
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S U B C O NTRACTS
Questions or Need More Help?
 Questions concerning subcontracting using gift
and state budgets should be directed to:
 Purchasing Services
 206-543-5810
 [email protected]
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Subcontracts in Accounts Payable
 How Invoices Get Paid
Suzi Freelund – Accounts Payable
Michelle Schrader – Procurement Customer Service
206-543-4500
[email protected]
Sorting & Batching Online Invoices
 Invoices get sorted by the following criteria:
 Manual vs. Online
 Direct/Priority vs. Regular Handling
 RIP vs. NonRIP
 Invoices are then given to the appropriate team to
log into batches
Sorting & Batching Online Invoices
 RIP and NonRIP invoices have notices sent to the
department
 RIP notices let the department know the invoice is
pending
 NonRIP invoices require written approval to be paid
 Direct invoices already have written approval to pay
 Currently piloting with several departments to have
all subcontract invoices verified in department before
being sent to AP for payment.
 Allows departments to stop problems before they
happen.
 Allows AP to expedite payment of invoices
AP Glossary
• “Online” Invoices are invoices processed through
PAS and payment is automatically generated by
the system.
• “Manual” Invoices are processed completely by
hand and manually keyed into PAS for payment.
• “Wire Transfers” are manual invoices paid via
electronic bank communications to
Subcontractors in foreign countries.
Paying Online Invoices
 Direct invoices are cleared for payment within 24-
48 hours of being logged
 NonRIP invoices are processed for payment then
held pending written approval to pay.
 Priority & RIP invoices are processed 5 business
days after the RIP notice is sent but within 30 days
of the invoice received date.
Manual Invoice Payments
 Invoices given to Subcontract team for
batching & processing.
 Hard copies of the Subcontract are pulled
from the Subcontract filing cabinet in AP.
 Currently piloting with several
departments to have all subcontract
invoices verified in department before
being sent to AP for payment.
 Allows departments to stop problems before
they happen.
 Allows AP to expedite payment of invoices.
Processing Manual Invoices
 Department may submit these with an
invoice voucher (see handout).
 The AP technician matches the invoice
against the subcontract, including
performance period, encumbrance, and
dollar amount.
 This information is logged in a
spreadsheet and in Doc Logging.
 FAS enters data in PAS and FIN to issue
the check.
 Payment sent to Subcontractor
Wire Transfers
 Wire Transfers are logged into their own batch in Doc
Logging.
 Allows Procurement Customer Service to know if the wire
has been sent.
 Allows for data collection.
 Wires are sent using Bank of America Direct.
 Initiated by Suzi or Mesfin.
 Approved by Julie, Suzi or Pramilla.
 Wires can be sent in US Dollars or most Foreign
Currencies.
 Wires sent inside US cost $10 and can take 5 business
days to reach the beneficiary
 Wires sent Internationally cost $25 and can take 14
business days to reach the beneficiary
Continued…
 Wires logged into Wire Log Spreadsheet
 Funds unencumbered in PAS
 PO is closed if one-time payment
 JVs entered into FASTRANS Spreadsheet and sent
to JVREQ
 Once JVs are uploaded, spreadsheet is returned
with JV numbers and batch number
 Updated JVs are saved into an Excel workbook
 Emails are sent to department contacts with JV and
Wire information attached in Excel files for BAR
reconciliation
Invoice Discrepancies
 Manual – When invoice entered in Doc-Logging
 Order in Pre-Buy Status
 Subcontractor Mismatch
 Online – Generated while clearing invoice for
payment





Exceeds Order or Line NTE amount
Beyond Contract Terms
Order Closed
Item doesn’t match order
Freight not authorized
 Sent to Subcontract Manager for resolution
 Cleared for payment when approved by Subcontract
Manager
CLOSEOUT PROCESS
FOR
SUBCONTRACTS
Presented by: Debbie Emerson-Carter
Background
 OSP receives monthly reports for Subcontract
budgets that expired the month prior.
 Depending upon the performance period, OSP
Subcontract Coordinator (Currently Debbie EmersonCarter) will send closeout or amendment memos
electronically to the UW PI and department contact,
informing them that the subcontract has expired and
requires a response.
 Memos were previously sent via campus mail with
original signature. Effective 12/09 all amendment and
closeout memos are being sent via email with an
electronic signature.
Modifications and New Subcontracts
Note: All other requests for amendments or new
subcontracts should be made directly the
Subcontract Manager (currently Mike Blackwell)
only.
What’s Required of the Subcontractor?
The Subcontractor must provide the department
with a Final Technical Report within 30 days after
the end of the subcontract performance period.
The Subcontractor must provide the Final Invoice
to UW Payables, Marked Final with the A-133
statement if it is a requirement stated in the
subcontract within the time specified in the
subcontract terms.
A-133
“The Contractor assures to the University that all
expenditures were incurred in full compliance with
OMB Circular A-133 or its own applicable audit
regulations. Disallowed costs if found during the
retention period of this Subcontract will be promptly
refunded to University.”
Continued…
The Subcontractor must submit Exhibit D Close
Out Certification to the University’s Subcontract
Manager no later than 60 days following the
termination of the Subcontract under Federal
Contracts, DoD and NASA Grants only.
What’s Required of the Departments?
Departments must review and retain a copy of the
final invoice prior to payment to make certain all
requirements of the subcontract have been met,
which is due no later than 60 days following
termination of the subcontract.
Final Closeout Steps
Final invoice is received and paid, Departments
must contact me via email at
[email protected] requesting the
subcontract be closed out and any remaining
encumbrance be liquidated.
The request is received, OSP Subcontract
Coordinator (Debbie Emerson-Carter) will send an
email to SAF at [email protected] giving the
ok to close the subcontract (copying the department)
requesting the subcontract to be closed to verify that
the final invoice was received and paid in
accordance with all of Article IV. requirements
(Allowable Cost and Payment Section of the
QUESTIONS
Contact Information:
Debbie Emerson-Carter
[email protected]
(206) 543-5823

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