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Business and Financial Policies and Procedures

Sponsored Projects Subawards

Policy Statement

The University of Illinois System may issue a subaward to a subrecipient for the purpose of performing a portion of the scope of work under an award for a sponsored project. In issuing a subaward, the system assumes responsibility for the oversight of programmatic and financial activities of the subrecipient throughout the life of the subaward, including but not limited to the determination of subrecipient versus contractor, assessing subrecipient's capacity to perform, and subrecipient's compliance with award terms. The Principal Investigator shall be responsible for confirming the subrecipient performs the awarded scope of work and all costs are reasonable and in accordance with the terms of the award.

Reason for the Policy

As a recipient of an award, the system must comply with the requirements outlined in 2 CFR § 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards that require the system  to manage and monitor each subaward to reasonably ensure that costs are allowable, awards are used for authorized purposes, and performance goals are achieved. Subawards must also be administered in compliance with applicable laws, regulations, and the provisions of the grant or contract agreement.

Applicability of the Policy

This policy applies to all sponsored projects and programs.

Related Policies and Procedures

Review and Pay Subrecipient Invoices
Close a Subaward

Additional Resources

Guidelines on Subrecipient Performance
Responsibilities to Monitor a Subrecipient

Last Updated: July 7, 2015 | Approved: Senior Associate Vice President for Business and Finance | Effective: July 7, 2015

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