Subawards are established when the prime recipient (often a university or research institution) determines that a portion of the project requires the expertise, facilities, or capacity of another organization. Subawards allow for collaboration with other institutions, which bring specialized knowledge or capabilities to the project.

Prime Recipient
The prime recipient is the organization that received the original grant or contract. It holds primary responsibility for the overall project, including:

• Ensuring compliance with all federal regulations, including reporting and financial requirements.
• Managing the project’s scope, budget, and timelines.
• Overseeing subrecipients to ensure adherence to programmatic and financial requirements.

Subrecipient
The subrecipient is the organization receiving the subaward. Its primary responsibilities include:

• Carrying out the agreed-upon portion of the project in compliance with the subaward agreement.
• Ensuring that their work is aligned with the objectives of the federal program.
• Submitting required performance reports and financial documentation as outlined in the subaward agreement.

Identification of Need

The PI identifies the need for a subaward during the proposal preparation phase, based on the need for specialized expertise or facilities.

Proposal Development

The PI works with the PreAward Office and the subrecipient to develop a comprehensive SOW, budget, and any other necessary documentation for submission to the funding agency.

Sponsor Approval

After the prime award is received by UTA, the PreAward Office forwards the necessary subaward setup paperwork to the PostAward Office for subaward establishment.

Subaward Agreement

After receiving the prime award, the PostAward Office reviews all relevant documents, including the budget, SOW, budget justification, and risk assessment. The office then drafts and negotiates the subaward agreement and oversees its execution. This agreement includes all performance expectations, payment terms, reporting requirements, and any additional sponsor terms and conditions.

Once the signed subaward agreement is in place, the PostAward Office establishes a purchase order (PO) in UT Share to encumber the subaward obligation.

Subaward Amendment

If any changes are required during the life of the subaward (e.g., increments, NCEs, PI changes), the PostAward Office facilitates the drafting, negotiation, and execution of a subaward amendment in collaboration with the PI and subrecipient. At this stage, the PostAward Office also reviews subaward expenditure rates and confirms satisfactory performance with the PI.

Payments
The subrecipient sends invoices for payments to Grant and Contract Accounting (GCA) at subawardinvoices@uta.edu. GCA reviews and routes the invoice to the PI/Department for approval. Once the PI confirms approval, GCA processes the payment, ensuring it is consistent with the established PO in UT Share.

When reviewing subaward invoices, the PI should ensure the following:

• Satisfactory Performance:
  Confirm that the subrecipient’s performance has been satisfactory and aligns with the project’s objectives.
• Timely Reports:
  Ensure that the subrecipient is up to date on submitting performance updates and reports, as required by the subaward agreement.
• Invoice Justification:
  Verify that the invoice is substantiated by the work performed and the progress achieved to date. Ensure that expenses align the approved budget and that work is advancing according to plan.

Both the PI and the PostAward Office are responsible for ensuring continuous monitoring and oversight of the subrecipient’s performance, financial status, and compliance with the subaward terms.

PI responsibilities

• The PI should monitor both programmatic and financial progress to ensure the subrecipient is fulfilling its obligations
• PIs should evaluate the subrecipient’s performance regularly, ensuring they are meeting milestones, objectives, and deliverables outlined in the SOW.
• Performance issues should be addressed immediately to avoid delays or non-compliance.
• The PI must review and approve subaward invoices based on the work performed and the progress made on the project.
• When reviewing invoices, the PI should ensure that the expenses align with the budget and that they reflect the work completed as per the project’s objectives.
• The PI should ensure that subrecipients submit timely and complete reports, including financial and progress reports, in accordance with the subaward agreement.
• These reports may include performance metrics, financial status reports, and deliverables such as data or research findings.
• As the project nears its end, the PI should ensure that the subrecipient completes any final deliverables and submits final reports.
• Effective and ongoing communication with the subrecipient is essential to ensure alignment on expectations, timelines, and deliverables. Any issues or changes in scope should be addressed as soon as possible to avoid delays.