Subagreements

The following documentation should be uploaded to the RAMSeS IPF for the Prime Agreement:

• Subrecipient Scope of Work
• Should answer “Who is doing what, when where and how much?”
• Detailed, yet concise, description of research works specific to the subrecipient.
• Description should be clear for non-technical reviewers.
• List of deliverables or planned milestones including dates or timeframes
• Mirrors budget and justification
• May need updating each year, depending on work being completed or any changes at the sub site (SOW changes require sponsor prior approval)
  *Note: If the SOW is too generic and there are concerns of performance at the sub site, it may be difficult to terminate the subagreement!
• Subrecipient Budget
• Provide the detailed budget for this year. If preferred, you may provide the full project period budget (or current competing cycle) as long as each year is identifiable. This document should match the funding amount.
• Subrecipient Budget Justification
• Required for all subaward initial agreements; for amendments only if required by sponsor.
• Should clearly identify all cost categories.
• Detailed text version of budgeted line items
• Percent effort/calendar months should be listed for each person on budget for cost reimbursement agreements.
• Expenses for each category must match the budget and be for correct budgeted period.
• Indirect costs should state rate and any exclusions from calculation
• Outgoing Subrecipient Letter of Intent (LOI)
• When sending the LOI form (PDF) to the subrecipient for completion, include the instructions (PDF) as well to ensure all fields will be accurately completed.
• Please note that if the subrecipient enters any personnel on the fully executed LOI, those personnel must also be included on the RAMSeS IPF.
• Only the current version of the Outgoing Subrecipient LOI will be accepted for proposal submissions. This requirement was effective beginning 7/1/2022.

The required compliance documentation for subagreements varies depending on the elements of your proposal, including but not limited to the scope of work, the entity’s organizational status that we are partnering with as well as sponsor requirements.

It is important to be aware of any necessary information needed from the subrecipient in order to comply with Human/Animal Research subjects, data sharing, intellectual property, and conflict of interest requirements. These review processes take considerable time, which should be taken into account when planning submissions.

It is important to use the time prior to when an award is received to determine if you have the full subagreement package and what (if anything) you will need if or when the Prime award is received. This will reduce setup and issuance time.

Once a prime award has been received departments should complete the following to ensure a smooth subagreement process:

• Review all documentation from the subrecipient and ensure all information is up to date and documents are attached to the appropriate eIPF in RAMSeS.
• Verify budget and justification to ensure that the calculations are accurate and the documents match. Note that budgets should be broken out for each year of the project.
• Ensure the budget matches the anticipated payment method, I.e., cost reimbursable, fixed rate, milestones/ deliverables, time and materials, etc.
• Ensure the scope of work matches the science from the prime and allows the Contracting Officer to understand what the subrecipient is doing. This is important for proper subagreement drafting.
• Compliance components applicable to the subrecipient’s work should be contemplated and in process or completed which include, but are not limited to:
• Data sharing agreement or needs to be incorporated into subagreement.
• Material transfer agreement or needs to be incorporated into subagreement.
• IRB reliance agreement
• IACUC MOU
• Conflict of Interest (COI) requirements
• Intellectual Property (IP) needs
• Foreign travel restrictions (as applicable)
• Exchange rate variances (for foreign subrecipients)
• Export control requirements
• Specific reporting requirements for clinical trials

If you are working with a new subrecipient, ensure that they have been set up as a vendor to do business with UNC. A project ID cannot be set up if the subrecipient is not a vendor in ConnectCarolina. For more information visit Finance’s Becoming a Vendor with UNC .

See the Outgoing Subagreement Amendment Guidance for additional information. Here is a list of common reasons for issuing an amendment:

• Change in funding – adding or removing, awarding carryover, deobligations, etc.
• Change in the period of performance – extensions, terminations, etc.
• PI change
• Other administrative or corrective actions

For more information on administering subagreements, see the Subrecipient Award Management Checklist (PDF).

The following three payment types are the most common issued. Certain sponsors may have alternate requirements. Please reach out to OSPSubs@unc.edu with questions if you are unsure of the appropriate payment type.

If you have more than one payment type per award, a separate Project ID is required. We cannot combine payment types in the subagreement.

• Cost-Reimbursement references a method of billing, where costs that are deemed to be applicable and appropriate are then reimbursed by the Sponsor or Pass-Through Entity (PTE) after they have been incurred by the Recipient.
• Fixed-Rate references a method of billing where subrecipient is enrolling subjects on a per subject/capitation billing model and there is a negotiated cost per unit, e.g. per subject cost in a clinical trial (or participant in a non-Clinical Trial Human Subjects Study), and the total amount of the award may be unknown when the agreement is created a Fixed Rate Subagreement is appropriate. They are typically multi-site studies.
• Milestone/ Deliverables references a method of billing, where specific tasks or milestones are affiliated with a cost and payment is made by the Sponsor or Pass-Through Entity (PTE) after the tasks or milestones have been completed satisfactorily by the Subrecipient.

Departments are responsible for working with the PI of the project to review, approve and process all of their subrecipient invoices on time and correctly charge them to the appropriate project chartfield string in ConnectCarolina.

Subrecipient invoice review and approval should include, at minimum, the following:

• Ensure the subagreement or modification covering the invoice period has been fully executed.
• Scientific/ technical reports from subrecipient are being reviewed to confirm obligations are being met.
• Invoice matches payment method in subagreement.
• Correct entity name on the invoice that matches the supplier reference.
• Ensure that the PS Project ID is listed on the invoice.
• “Bill to: UNC” appears on the invoice.
• Ensure that the invoice dates are within the project period.
• The invoice should include both current and cumulative expenses.
• PI signature is required to approve the invoice for payment.
• The voucher submitted must match the amount on the invoice and the funds must be available in ConnectCarolina.

Invoicing account codes for subrecipient payments are as follows:

• Charges NOT subject to F&A, use account 569461.
• Charges that ARE subject to F&A, use account 569486.
• UNC’s indirects are loaded into account 559000 and subrecipient invoice charges should NOT be paid on this account code.

Federal sponsors only allow the first $25,000 of each subrecipient agreement to charge F&A per each five-year segment.

See OSP Operating Standard 500.11

OSP incorporates reporting requirements into our subagreements in order to allow us to meet our own reporting requirements with the sponsor. As a result, reporting requirements may vary from project to project based on the terms and conditions of the prime award.

If the PI feels that specific reporting requirements should be included to meet the requirements of the project, please be sure to include that information when certifying the SPARC.

Common reporting requirements include the following:

• Financial
• Technical/performance
• Patent/inventions
• Property reports.

It is particularly important for the UNC Lead PI to review the subrecipient’s technical reports and ensure they provide the information needed to meet the sponsor’s requirements. If there are any concerns with any reporting requirement, contact your department’s Contracting Officer and/or your assigned Sponsored Projects Accountant for financial matters.

The department and PI are responsible for collecting and verifying all required closeout information. All required documentation and due dates will be listed in the subagreement. For assistance with closing out a subagreement, please use the Subrecipient Closeout Checklist (PDF).

This information is required at the end of the subagreement even if the Prime award is continuing.

Required Documentation:

• Final technical report
• Final financial report
• Final inventions report (as applicable)
• Final property report (as applicable)

Please remember that there could be sponsor or project-specific regulations that are applicable to subrecipients as well. It is important to read the Prime Agreement carefully.

Federal Demonstration Partnership
The Federal Demonstration Partnership (FDP) is an initiative between select Federal agencies and recipient institutions to reduce the administrative burdens associated with research administration, including issuing subagreements by providing standardized templates.

Electronic Code of Federal Regulations

• CFR Subpart C – Recipient Requirements of Subrecipients
• 910.501 Audit Requirements
• 200.331 – Subrecipient and Contractor Determinations
• 200.332 – Requirements for pass-through entities
• 570.503 Agreements with Subrecipients

Electronic Federal Acquisition Regulations

• Contract Administration and Audit Services

UNC Office of Sponsored Programs

• Office of Sponsored Programs – 500.11 – Outgoing Subrecipient Agreements
• Office of Sponsored Programs – 500.02 – Departmental Award Management Responsibilities

The required compliance documentation for subagreements varies depending on the elements of your project. It is important to be aware of any necessary information needed from the subrecipient in order to comply with all compliance related items, including, but not limited to:

• Data sharing
• Material transfer
• Human subjects’ requirements and IRB reliance agreements
• IACUC MOU
• Conflict of Interest (COI) requirements
• Intellectual Property (IP) needs
• Foreign travel restrictions (as applicable)
• Exchange rate variances (for foreign subrecipients)
• Export control requirements
• Specific reporting requirements for clinical trials

These review processes can take considerable time, which should be taken into account when planning project timeframes.

Subrecipient compliance is vital for sponsored research because as UNC is the recipient of the sponsor’s funds, UNC is responsible for ensuring appropriate terms and conditions are flowed to the subrecipient and to have a process for subrecipient monitoring to ensure compliance! We are also responsible for ensuring that appropriate approvals are in place for research subjects.

This is a list of compliance checks that the Contracting Officer reviews when taking action on a subagreement:

• Visual Compliance
• SAM membership
• FDP Membership
• Conflict of Interest
• Foreign Entities
• IACUC – MOU needed for all NIH projects with animal subjects.

In addition to compliance checks, the Contracting Officer will conduct a risk assessment which includes determining if the subrecipient is domestic or foreign entity, evaluating audit report findings, and determining the percentage of the prime award being obligated to the subrecipient.

After a subagreement is executed, the department is responsible for monitoring the subrecipient’s technical/scientific progress, reviewing and processing invoice payments, and alerting OSP to any necessary amendments. The department is also responsible for obtaining any necessary closeout documentation from the subrecipient in a timely manner in order to facilitate appropriate reporting to the Prime sponsor.

Uniform Guidance details the requirements the University must complete for each subrecipient that receives Federal funding under a University project and the University completes the same review regardless of funding source for consistency:

• Evaluation of the subrecipient’s risk of noncompliance
• Obtain and review the subrecipient’s annual audit.
• Establish the appropriate level of monitoring for the subrecipient.
• Monitor the subrecipient’s activities and compliance throughout the life of the collaboration.

In order for OSP to effectively meet these requirements, the department and PI should perform the following at regular intervals:

• Verify the subagreement is fully executed prior to submitting a subrecipient invoice for payment.
• Verify the PI wants to pay the subrecipient invoice. Do not submit the invoice for payment if the PI suspects work is not being completed.
• Verify the invoice meets terms and conditions of the subagreement, including the payment method.

• Foreign Subrecipients and Small Community-Based Partners Guidance
• Foreign Subrecipients Roles & Responsibilities Guide (PDF)
• Matrix of Required Documentation
• NIH Foreign Subrecipients Data Access Requirements (PDF)
• Research Award Management (RAM) Tracker Guidance
• Subrecipient v. Contractor Guidance
• Subrecipient v. Contractor Certification Example (PDF)
• Subrecipient v. Contractor Determination Questionnaire (PDF)

General

Invoices/Vouchers

Multi-year Agreements (updating to Term and Termination)

Research Subjects and Data Transfer

Subagreement Termination

Subrecipient Compliance

Why are audits completed annually for subrecipients? Per 2 CFR §200.331 - Requirements for Pass-through Entities any pass through entity must monitor subrecipients according to the outlined requirements.

Why is the subagreement pending Conflict of Interest (COI)? For subrecipients under projects funded by National Science Foundation (NSF) or a Public Health Safety (PHS) agency, we are required to ensure COI is clear prior to executing an agreement. A Subrecipient COI Form (PDF) is collected at the initial agreement and at any time a change in subrecipient personnel occurs. All subrecipient personnel listed on the COI form receive an email with links for COI training and COI disclosure (as applicable) and both must be completed before the subagreement can be fully executed. The links sent to the subrecipient personnel do not expire. If there is an issue accessing the link or if the email request was not received, the subrecipient should contact OSPSubs@unc.edu to investigate further. If the subrecipient has questions regarding the COI links, please contact COI@unc.edu.

Are Federal Demonstration Partnership (FDP) members automatically compliant with UNC and sponsor policies? FDP membership does not ensure compliance to sponsor or UNC policies, but provides access to a repository of organizational profiles to help reduce administrative burden when subrecipient documentation is needed. Each member"s organizational profile includes the most recent Single Audit, F&A and fringe benefit rate information, certification regarding PHS Financial COI policy compliance, Federal Identifiers and other compliance-related information.

Why does UNC have to complete compliance requirements? As the recipient of the sponsor"s funds, we are responsible for ensuring appropriate use of those funds in accordance with the approved SOW. That entails monitoring any funds issued to a third party.

Subrecipient Entity

If the Subrecipient indicates that their name has changed, what do I do? Ask for a copy of their new W9, if their EIN has changed and if they have additional supporting documentation. If there is no change in EIN, the department should submit a supplier update with new W9 showing the new name to be updated for the campus supplier in ConnectCarolina. If the subrecipient has a new EIN, the Department needs to create a new supplier record. All documents required for new vendor creation must be submitted, and the existing supplier record must be deactivated. Email vendor_coordinator@unc.edu to let them know to deactivate the supplier with a note as to what supplier record replaces it. The Vendor Coordinator will add a note in the system to use new supplier record once it has been created.

How is a new subrecipient set up as a supplier (vendor)? Becoming a Vendor with UNC-Chapel Hill

Subrecipient Funding

Subrecipient Personnel

What to do if there is a change to a Subrecipient PI? 1. Key Personnel If the Subrecipient PI is listed a UNC key personnel, a Prior Approval Request (PDF) must be submitted to OSP (SponsoredPrograms@unc.edu) in advance of the PI change. Once the Sponsor has approved the change, Department will need to submit a request for a modification with the new PI"s effective date. 2. Non-key Personnel If the Subrecipient PI is not listed as a UNC key personnel, Department will need to submit a request for a modification with the new PI"s effective date. 3. All Subrecipient PI under UNC's COI Policy If the Subrecipient is subject to UNC"s Conflict of Interest (COI) policy , an updated Subrecipient Conflict of Interest (PDF) form is required and must be signed by the Subrecipient"s Authorized Official. This form should be used to make any needed updates to subrecipient personnel subject to UNC’S COI. The new personnel will be added to RAMSeS and an automated email requesting COI actions will be generated and sent to the new personnel referencing the new role. The subagreement cannot be fully executed until COI is completed.

What if the Subrecipient PI moves to another institution and the grant follows? A Prior Approval Request (PDF) must be submitted to OSP (SponsoredPrograms@unc.edu) in advance of the subagreement transfer. The SPS will help to determine if Sponsor prior approval is required. Once all approvals are obtained, the SPS will set up a new Project ID and an initial subagreement will need to be issued to the new entity.