Reviewing Invoices and Subaward Close-out

Report
Conducting Collaborative Projects
Part 4
OSP Awareness
Feb 16, 2011
osp.syr.edu
[email protected]
Today’s Topics –
• Reviewing subaward invoices
efficiently and effectively
• Closing-out your Subaward
Lisa Kaley-Heyn
Office of Sponsored Programs
The Process in Review
Why necessary anyway?
Subaward Setup
PI/Department submits
Request to Issue to OSP
OSP Post Award Administrator
completes required
subrecipient risk assessment
Subrecipient submits the
Subrecipient Commitment
Form
OSP RA reviews the terms of
the prime award, subrecipient
work plan, budget, risk
assessment and subrecipient
commitment
OSP RA negotiates and
executes subaward
OSP Post Award Administrator
establishes the subaward file
and submits requisition to
establish subaward
commitment in Peoplesoft
Subaward Management
PI coordinates the
technical aspects of
the collaboration with
subrecipient
Subrecipient invoices
SU for work done
OSP Post Award
Administrator reviews
invoices and forwards
to PI for approval
PI reviews and
approves invoice for
payment as
appropriate
OSP submits approved
invoice for payment
Subrecipient
completes work and
submits final invoice
PI receives and
approves both final
report and invoice
OSP Post Award
forwards the Subaward
Closeout Form to PI for
completion
PI returns Subaward
Closeout Form to OSP
for final subaward
closeout
Subaward Invoices
Contract Language Re: Invoices
• University shall reimburse Collaborator not more often than
monthly for allowable costs.
• All invoices shall be submitted using Collaborator’s standard
invoice, but at a minimum shall include current and
cumulative costs (including cost sharing), subaward number,
and certification as to truth and accuracy of invoice.
• Reimbursement shall be made upon receipt of itemized
invoices and receipt of progress reports in accordance with
the Scope of Work.
Contract Language Re: Invoices
• Each invoice must reference the SU account number and
must include documentation of cost sharing expenditures, if
applicable, during the invoice period.
• Invoices shall be submitted not more frequently than
monthly, but must be submitted at least quarterly in
accordance with the Approved Budget,
• The final invoice must be submitted promptly following
completion of the work under this agreement but in no event
later than thirty (30) days
Sample Invoice
Invoice Review by OSP
• OSP performs the initial administrative review to:
– Confirm that the invoice’s billing period is within
subaward’s period of performance;
– Confirm there are sufficient funds committed to process
the invoice (i.e. subaward is not over expended);
– Identify any clearly unallowable costs;
– Identify expenditures that may require OSP or sponsor
approval; and
– Confirm the correct application of subrecipient’s F&A rate
(randomly conducted).
Invoice Review by PI
• The PI/PD should consider the following
questions in conducting his/her assessment:
– Are budget line expenditures consistent with those presented in
the sub award?
– Are expenditures reasonable and appropriate for the project?
– Are expenditures allowable and, as applicable, appropriately
documented?
– Are participant support costs included? And if so, are these
reasonable in the context of known work and associated
budget?
– Is the pace of expenditures appropriate for the subaward?
• No work  no pay? No expenditures  no work?
– If cost sharing is required, is cost sharing also appropriate and
timely?
Invoice Review by PI
To document a proper approval process, the PI/PD must approve
payment of all subaward invoices by responding to the following
request:
Please review the attached invoice from Subrecipient, PI - Name, Contract
Number in the amount of $xx.xx.
“
If you find these charges acceptable please respond to the email/fax so that
the payment may be processed.
By approving the invoice, you certify that you have reviewed the expenditures
and determined that they are reasonable in the context of the sub-recipient’s
work performed to date. You also certify that you have received and approved
all technical reports required to date and are satisfied with project
performance.”
Payment of Invoices
• Common subaward invoice issues:
– Invoices include charges outside of the project
period; i.e. expired subawards
– Charges not clearly identified and/or included in
the approved budget; i.e. travel, consultant
charges
– No subaward number included
– Mathematical errors in the calculation of the F&A
or the cumulative charges to date
– Charges for overlapping billing periods
Payment of Invoices cont’d
• Once invoices are approved for payment they
are processed through the Purchasing
Department and are then forwarded to
Disbursements for payment.
• From the time payment is approved, invoices
are generally paid within a week or two.
Closeout
When the Subaward Period Ends
- Annual Budget Period -
• OSP will notify the PI that the subaward has
ended and that the subrecipient has submitted
an invoice through the end of the period.
• The PI must submit a Request to Modify the
Subaward to OSP to extend the agreement
beyond the original end date.
• OSP will amend the subaward and the associated
commitment (Purchase Order).
When the Work is Done-Done
• OSP Responsibilities
– Request a Final Invoice from the Subrecipient
– Process payment upon PI approval
– De-obligate any remaining commitment and close
all related standing orders
– Forward the Closeout Form to the PI
– Upon completion and receipt, formally close the
Subaward File
When the Work is Done-Done
• PI Responsibilities
– Review the Final Invoice and approve as
appropriate
– Review and approve any required final technical
report or other report i.e. invention
– Sign and return the Closeout Form to OSP
PI Closeout Form
Questions?
Collaborating with Others
What’s Next?
• Part 2 – April 6, 2011
– SU Collaborators - Voices of Experience

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