Subaward Invoicing

SPA

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 and the Subaward Tracker.

Units & PIs

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. The use of the Subaward Invoice Review Checklist for Units and PIs is a recommended practice to ensure invoices are compliant.

Verify 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 completing the review or approving the invoice in the Subaward Tracker.

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 approving the invoice. For additional information related to the questionable costs, please review SPA's Cost Principles page.

Conduct Timely Reviews

Review and approval of the invoice should be conducted in a timely fashion. Per Uniform Guidance, payment must be made to the subrecipient within 30 calendar days from receipt of the invoice. Days remaining are displayed in the Invoice Details section of the Subaward Tracker review page.

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 approved until the subrecipient has met all subaward agreement requirements.

PI Delegates

In some cases, the PI may delegate invoice review and approval authority to a designee who can attest to the performance of the subrecipient (see BFPP 16.5.1 Review and Pay Subrecipient Invoices for reference). For example, the PI may choose to delegate this authority to a fund-level PI on the same award.

See the Subaward Tracker PI Delegates guidance for more information.

1. Invoice Submission

Currently, the Subrecipient submits an invoice by email to spasubinvoices@illinois.edu. In the future, they will upload the invoice and supporting documents through the Subaward Invoice Submission Form.

2. System Validations & Review

The Subaward Tracker system checks key invoice submission details before it is available for the Unit to review. Once the validation is complete, the Unit and PI review the invoice in the Subaward Tracker. SPA will only review invoices in specific cases (e.g. final invoices, fixed price/advance payment, or when compliance concerns arise.)

Conduct Invoice Review

The Subaward Invoice Review Checklist for Units and PIs is available to ensure invoices are compliant. Units may also add attachments and comments to invoices under Unit review but cannot edit invoice data. SPA records compliance status and monitoring notes to help inform SPA, Units, and PIs of issues that may affect invoice review or payment. For more information, see What do the Status, Concerns, and Desk Review buttons indicate?

Review Status

Units and PIs will receive automated email notifications once an invoice is ready for their review. In addition to notification emails, Units and PIs may use the invoice review queues to view invoices awaiting action. For invoice status descriptions, see the Subaward Tracker Invoice Statuses.

• Unit Review Queue: Lists all unpaid invoices for that Unit (in any status)
• PI Approval Queue: Lists invoices assigned to a specific PI pending review

All invoices in-process, including those returned to the Subrecipient, are also visible in the invoicing history for each subaward.

3. Resolution of Concerns

If issues are identified, the Unit or PI returns the invoice to SPA for further review and possible return to the Subrecipient.

This option should be used when financial, programmatic, or other concerns are identified that require additional review or action by SPA and/or the Subrecipient. Invoices cannot be directly returned to the Subrecipient by the Unit or PI.

To return the invoice to SPA in the Subaward Tracker:

• Enter a clear explanation of the issue or questions in the New Invoice Comment field
• Click Return to SPA

4. Invoice Approval

Once the invoice is confirmed as proper, or any concerns have been resolved, the Unit completes its review, and the PI certifies and approves the invoice in the Subaward Tracker.

The final stage of review requires both the Unit and the PI to take the following specific action before the invoice can be processed for payment:

Unit Responsibilities

PI Responsibilities

Update the Payment Information section Click Unit Review Complete

Check the required Certification checkbox:      As PI for subaward XXXXX-XXXXX, in accordance with BFPP 16.5 Sponsored Programs Subawards, I verify the work performed by the subrecipient is acceptable and completed in a timely manner. This invoice was compared to the subrecipient's budget, and all costs are reasonable and in accordance with the award terms. I approve this invoice for payment. Click Approve

Reminder: The PI is responsible for reviewing, certifying, and approving all invoices, in consultation with their Unit, with regard to the Subrecipient's performance (see BFPP 16.5.1 Review and Pay Subrecipient Invoices for reference).

5. Payable Processing

Approved invoices route to University Payables, where payment is processed via Banner.

6. Payment & Notification

Payment is issued to the Subrecipient, and the system updates the invoice status with payment details.

System Access & Invoice Submission

System access to the Subaward Tracker varies by role and is managed through existing University system permissions. Subrecipients submit invoices through a separate submission form. Units, PIs, and SPA access the Subaward Tracker directly to complete their review and approval responsibilities.

1. Where do Subrecipients submit invoices?
2. Who can access the Subaward Tracker?

System Validations for Subaward Invoice Submissions

The Subaward Tracker performs several automatic checks when invoices are submitted. These system validations ensure accuracy on financial details, allowing Units and PIs to focus on reviewing costs, performance, and deliverables.

1. What does the system check when a Subrecipient submits an invoice?
2. What invoice details are validated?
3. How does validation affect routing?
4. What if the subrecipient is not compliant?
5. What elements are important for Units and PIs to review?

Subaward Invoice Review - Roles of Units and PIs

Subaward invoices must be approved by PIs before payment. SPA and University Payables have additional responsibilities, but Units and PIs are the primary reviewers. Use the Subaward Invoice Review Checklist for Units and PIs to ensure invoices are compliant.

1. Who reviews subaward invoices?
2. What is the Unit and PI's role?
3. What happens if a Unit or PI returns an invoice?
4. What should be considered when reviewing final invoices?
5. How will I know an invoice needs review?
6. Can PIs delegate their access or approval authority?
7. What do the Status, Concerns, and Desk Reviews buttons indicate?