Subaward Invoicing
Description
The PI is responsible for reviewing, certifying, and approving all invoices, in consultation with the business manager as required, with regard to the subrecipient’s performance. In some cases, the PI may delegate this authority to a designee who can attest to the performance of the subrecipient. When this occurs, written documentation must be kept on file, with a copy provided to SPA for their files.
Encumbrance Number: An encumbrance must be established in Banner before an invoice can be paid. After a subaward has been fully executed, a copy of the subaward agreement is sent to the PI and SPA. SPA will create an encumbrance number upon receipt. The encumbrance number can be found in Banner or on the subaward invoice cover letter provided when invoices are received and forwarded to the unit.
Guidelines and Responsibilities for PIs or their Delegates:
Review Each Invoice Carefully
It's important to review each subrecipient invoice carefully to ensure compliance with applicable regulations and the terms and conditions of the award. You should also confirm that the costs being claimed are reasonable, allowable, and incurred within the project period.
Verify that Cost Sharing Commitments Are Met
If the subaward includes a cost-sharing commitment from a subrecipient, it's critical to ensure that it meets the criteria specified in the University's cost-sharing policy as well as the award's terms and conditions. Any cost-sharing commitment should be reported on the subrecipient's invoices, including the cumulative cost-sharing total. If required, ensure the appropriate documentation has been received from the subrecipient prior to processing the invoice payment.
Investigate Unallowable, Unusual or Excessive Charges
If you notice any charges that appear to be unallowable, unusual, or excessive, you should investigate and resolve them before submitting the invoice for payment. For additional information related to the questionable costs, please review SPA’s cost principles page.
Submit Approved Invoices for Payment
Review and approval of the invoice should be conducted in a timely fashion. Per Uniform Guidance, payment must be made to the subawardee within 30 days from receipt of the invoice. Once you have reviewed and approved the subrecipient invoice, you can submit the invoice for payment using the Request a General Encumbrance/Wire Transfer Payment form. Instructions can be found on the Non-Purchase Order Invoices webpage.
Make Sure Final Invoices are Submitted ON-TIME
Payment may be denied if the subrecipient fails to submit their final invoice within the timeframe specified in the subaward agreement. The final invoice should be marked as “final” and should not be paid until the subrecipient has met all subaward agreement requirements.