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Managing Subawards Issued by NYU

Background

A subgrant (or subaward) is a formal written agreement made between New York University (NYU) and a third party or subrecipient (also known as the subgrantee).  A portion of the award is performed by the subrecipient’s personnel, using its own facilities and resources.  A subgrant is a legally binding agreement that will include terms consistent with the prime award.

Federal regulations require the prime to actively monitor the activities of subgrantees in order to ensure compliance with award requirements.

NYU Approach

At NYU, the Principal Investigator (PI) has the authority to decide when a subrecipient relationship is necessary to further the objectives of the sponsor award. The PI works closely with the Contract Office in the Office of Sponsored Programs (OSP) to develop and negotiate the subrecipient agreement. Moreover, the PI is responsible for monitoring the subrecipient’s programmatic progress and compliance with the requirements of the subaward agreement.

How Subawards are Submitted and Awarded

The PI is responsible for determining the need for a subaward for the sponsored project. Please make sure to follow these guidelines:

Proposals should include:

  • A Statement of Work for the proposed subawardee, and
  • A Budget and Budget Justification.
  • A Fair and Reasonable Cost Analysis for subawards under a contract, as applicable.

The submission process mandates that, while subawards are initiated by the PI or Department, they must be negotiated and issued by OSP:

  • PI's should review agreements carefully and notify OSP of unusual requirements including a risk assessment that evaluates the likelihood that a proposed subawardee will fail to comply with the requirements of the subaward.
  • As soon as the fully executed subaward is issued by OSP submit a subaward requisition to Procurement.
  • For a subrecipient to begin working, a subaward agreement must be executed

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Monitoring Subgrantees

The PI must monitor the subrecipient’s programmatic and financial performance, including the statement of work and reviewing all invoices. The PI must also monitor the subawardee’s scientific progress in terms of the SOW and any required milestones.

Proposed subawardees must complete and sign NYU’s Subaward Agreement. See the OSP Wiki page How Subaward Agreements are Issued to a Collaborating Institution (NYUHome login required) for the procedure.

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Closeout of Subawards

Subawards should be closed out in a timely manner. Final technical and financial reports, as well as a final invoice are required to close the subaward. PIs/Departments should ensure that the subrecipient submits all necessary documentation to NYU, generally no later than 60 days after the end of the sub-award period. Timely and correct closeout may involve interfacing with SPA, OSP and Procurement.

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Frequently Asked Questions

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