Procedure Library

Include Subrecipients in a Proposal Budget

Purpose

Prepare and submit a proposal that includes a subrecipient.

Applicability

Principal Investigators (PIs) and administrators preparing proposal budgets that include funds for a collaborating organization or institution (subrecipient).

Before including a subaward in a proposal, PIs and administrators should consider the ability of the subrecipient organization to perform the work and adequately manage the administrative and financial responsibilities in accordance with the subaward terms and conditions.

Instructions

1. Gather required documents from the proposed recipient. The following are required for OSP review:

1. 1. Budget, including direct and facilities and administrative (F&A) costs.
      1. The F&A rate used for this budget is the subrecipient's rate.
         1. If the subrecipient doesn't have an approved F&A rate, a de minimus rate of 15% or a rate required by the invidual agencies can be used. 
      2. For Grants.gov submissions in Cayuse 424, see online training module 'How to Complete an Application in Cayuse 424'.
   2. Budget justification; detail should conform to sponsor proposal instructions.
   3. Scope of work describing the portion of the project that the subrecipient investigators plan to do.
   4. W9 (or W8 for foreign entities) to establish a vendor ID. See the Vendor ID Flow Chart for guidance (be sure to view in Adobe). You can also go directly to Accounts Payable's vendor search page to see if we have an entity in our system.
   5. Letter of Intent to Establish a Subaward (use appropriate template for circumstances). To be completed and signed by subrecipient's authorized official.

2. The subrecipients direct and indirect costs need to be included in the University's budget as direct costs. Additionally, only the first 25k of the total subcontract budget should be calculated in the direct cost base. See Cost Calculations

3. Communicate with the subrecipient when the proposal has been submitted and when the sponsor has made a determination on the proposal.

4. If the proposal is funded, submit a detailed budget to OSP that allocates sufficient funds in the subawards line and request that a subaward/s be established.

Related Policies and Procedures

• Grant Life Cycle > Develop Your Proposal > Obtain Subrecipient Documentation
• Research Handbook > Budget Development > Major Budget Categories > Subcontracts/Subawards
• Forms > Letter of Intent to Establish a Subaward (use appropriate template for circumstances)
• Grant Life Cycle > Submit Your Proposal > Electronic Submission & Registration > Cayuse 424