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Outgoing Subaward and Subcontract Initiation and Management

NAVIGATION GUIDANCE

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Outgoing Subaward and Subcontract Initiation and

Management

Multiple Campus AwardsMultiple Campus Awards

In this module we will learn about Multiple Campus Awards. What they are, how they are established and administratively and fiscally managed.

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ObjectivesAfter completing this module you will…

• Understand what is a Multiple Campus Award (MCA)

• Understand how an MCA differs from a subaward or subcontract

• Be familiar with the MCA set-up, invoicing, and reimbursement process

After completing this module you will understand what an MCA is, and how it differs from subawards or subcontracts in terms of set up and the invoicing and reimbursement process

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Definitions and Acronyms Used in this Module

• Subaward or subcontract agreement = sub and/or agreement

• Subrecipient or Subcontractor = Sub• Multiple Campus Award = MCA• Non-UC sub = a sub issued to an entity

that is not another UC campus• UC-sub = a sub issued to another UC

campus

Because the way this module is formatted, we needed to abbreviate terms and use acronyms.

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What is an MCA?

A Multiple Campus Awardis the type of subaward or subcontractused between UC Campuses

A Multiple Campus Award is the type of subaward or subcontract used between UC campuses.

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Sends Sends package to package to

UCLA PIUCLA PI

Differences between an MCA and a Subaward or Subcontract - Proposal Stage

UC Sub prepares UC Sub prepares proposal with budget proposal with budget that has their full and that has their full and appropriate F&Aappropriate F&A

PI incorporates UC PI incorporates UC SubSub’’s full cost into s full cost into prime budget and prime budget and assesses assesses NONO F&A on F&A on the UC subthe UC sub

OCGA reviews prime OCGA reviews prime proposal (especially proposal (especially the budget; time the budget; time permitting review permitting review subsub’’s budget) and s budget) and submits proposal to submits proposal to the Sponsorthe Sponsor

Non-UC Sub’s proposal

UC Sub’s proposal

Sub prepares Sub prepares proposal with budget proposal with budget that has their full and that has their full and appropriate F&Aappropriate F&A

PI incorporates SubPI incorporates Sub’’s s full cost into prime full cost into prime budget and assesses budget and assesses F&A on first $25,000 of F&A on first $25,000 of the subthe sub

OCGA reviews prime OCGA reviews prime proposal (especially proposal (especially the budget; time the budget; time permitting the subpermitting the sub’’s s budget) and submits budget) and submits proposal to the proposal to the SponsorSponsor

Forwards Forwards package to package to OCGAOCGA

Forwards Forwards package to package to OCGAOCGA

Sends Sends package to package to

UCLA PIUCLA PI

This slide illustrates the difference between an MCA and a Subaward or Subcontract ProposalFor a subaward or subcontract proposal that is not going to another UC Campus:

Sub prepares proposal with budget that has their full and appropSub prepares proposal with budget that has their full and appropriate F&Ariate F&A and submits their proposal package to the UCLA PIThe UCLA PI incorporates the Sub’s full cost into the prime budget and assess F&A on the first $25,000 of the SubThe Department submits the proposal package to OCGA.OCGA reviews the prime proposal (especially the budget and, time permitting, the subs budget.) The proposal is then submitted to the sponsor

At the proposal stage, the only difference between UC and Non-UC subs is that UCLA does not assess F&A on any of the UC sub’s budget. We assess the F&A on the first $25,000 for each sub except UC subs. The other UC still budgets F&A for itself, but UCLA does not assess F&A on top of that because, in the end, it’s all Regent’s money.

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UCSB Budget

UCSB requests its full and appropriate F&A

UCSB total costs are included in UCLA’s budget

Here is an example of a proposal budget from a UC sub. You will see that the UC sub requests its full and appropriate F&A. UCLA then includes the UC sub’s total costs in the UCLA budget.

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UCLA Budget

F&A is assessed on first 25K of sub to USC, and none assessed on sub to UCSB

Here you see where and how the UC sub’s total costs are inserted into the UCLA proposal budget. F&A is assessed on the first $25,000 of the sub to USC, and none is assessed on the sub to the sister campus.

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Subs in S2S Grants Because S2S automatically assesses F&A on first 25,000 for each Sub, it is necessary to overwrite this field with a “0” for any UC Subs

Because S2S automatically assesses F&A on the first $25,000 for each sub, it is necessary to overwrite this field with a zero for any UC subs.

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Differences between an MCA and a Subaward or Subcontract - Award Stage

Sponsor approves Sponsor approves UCLAUCLA’’s budget that s budget that includes costs for UC includes costs for UC SubSub

ORA iORA i--PAS team PAS team appropriates funds to appropriates funds to subs 08 (Direct costs) subs 08 (Direct costs) and 9H (F&A costs)and 9H (F&A costs)

Dept. asks EFM to Dept. asks EFM to reallocate funds from reallocate funds from sub 8 into a 119XXX sub 8 into a 119XXX Receivable AccountReceivable Account

Sponsor approves Sponsor approves UCLAUCLA’’s budget that s budget that includes costs for any includes costs for any subaward or subcontractsubaward or subcontract

ORA iORA i--PAS team PAS team appropriates funds to appropriates funds to subs 08 (Direct costs) subs 08 (Direct costs) and 9H (F&A costs)and 9H (F&A costs)

Dept. reallocates Dept. reallocates fundsfunds in accordance in accordance with the approved with the approved budget, allocating funds budget, allocating funds for the Sub into sub 7for the Sub into sub 7

Appropriating funds for a non-UC Sub in the Financial System (FS)

Appropriating funds for a UC Sub (MCA) in the Financial System

In this slide, we see that at the award stage, the processing for UC and non-UC subs is the nearly the same.

Prime sponsor approves UCLA’s budget that includes costs for any outgoing subaward, subcontracts or UC subsThe ORA IPAS team establishes the award in the Financial System and appropriates the funds into subs 08 (direct costs) and 9H (F&A costs)The department reallocates the funds in accordance with the approved budget, allocating funds for any non-UC subs into sub 7The department does not reallocate the funds for any UC subs. Instead, the department will asks EFM to reallocate funds from Sub 8 into a 1198 Receivable Account.

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The funds for the UC sub appear in the 1198XX Receivable Account in the General Ledger.

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Differences between an MCA and a Subaward or Subcontract - Agreement Stage

Department sends a Department sends a memo/email to the OCGA memo/email to the OCGA Analyst requesting that Analyst requesting that an MCA be issued to UC an MCA be issued to UC SubSub

Using information Using information provided by dept., OCGA provided by dept., OCGA Analyst will prepare an Analyst will prepare an MCA and submit to the MCA and submit to the UC SubUC Sub’’s Sponsored s Sponsored Projects Office along Projects Office along with a copy of the with a copy of the SponsorSponsor’’s award s award

Dept. establishes Dept. establishes requisition in requisition in BruinBuy and BruinBuy and prepares the prepares the appropriate checklistappropriate checklist

Purchasing or OCGA Purchasing or OCGA Subaward Team Subaward Team prepares, negotiates, prepares, negotiates, and submits a and submits a subaward/subcontract to subaward/subcontract to Sub for signature Sub for signature

Establishing a Non-UC Sub agreement

Establishing a UC Sub agreement (MCA)

Submits the Submits the checklist to checklist to either OCGA either OCGA Subaward Team Subaward Team or Purchasingor Purchasing

We see a big difference in the establishment of the agreement for a subaward, subcontract or UC subFor a subaward or subcontract going to a subrecipient or subcontractor that is not another UC campus:The department establishes a requisition in BruinBuy and prepares the appropriate checklist The checklist and accompanying documents are submitted either to the OCGA subaward team for a subaward, or the Purchasing for a subcontract.The Purchasing or OCGA Subaward Team prepares, negotiates, and submits a subaward or subcontract to the subrecipient or subcontractor for signatureFor a subaward or subcontract going to another UC campus:Department sends a memo/email to the OCGA Analyst requesting that an MCA be issued to UC SubUsing information provided by the dept., the OCGA Analyst will prepare an MCA and submit to the UC Sub's Sponsored Projects Office along with a copy of the Sponsor’s award

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Establishing an MCA

• PI/Department sends to OCGA:– Sponsor name and award number– Prime campus PI and department– Participating campus PI and department– Subaward amount (Direct and F&A)– Performance period – Budget– Any special terms & conditions– Cost sharing (if applicable)

Here is a list of items that the PI or his/her department should send to OCGA when requesting that an MCA be prepared and submitted to another UC campus

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Sample MCA from UCLA to UCB

Ms. Baldwin is in the UCB’s Sponsored Projects Office, which is the equivalent of UCLA’s OCGA

Here is a sample MCA, a copy of which can be retrieved from the Resources tab.

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Differences between an MCA and a Subaward or Subcontract - Monitoring Stage

Requests for Requests for reimbursements (IRR) reimbursements (IRR) go directly to EFMgo directly to EFM

UCLA PI/Dept. must UCLA PI/Dept. must monitor reimbursements monitor reimbursements by reviewing 1198XX by reviewing 1198XX Receivable Account. Receivable Account. Request copy of UC Request copy of UC SubSub’’s General Ledgers s General Ledgers for documentationfor documentation

If PI dissatisfied with work If PI dissatisfied with work progress, EFM should be progress, EFM should be contacted and asked that no contacted and asked that no further reimbursements be further reimbursements be processed without PIprocessed without PI’’s prior s prior approvalapproval

PI review/approval of SubPI review/approval of Sub’’s invoices prior to submission to s invoices prior to submission to Accounts Payable for payment. If PI is dissatisfied with work Accounts Payable for payment. If PI is dissatisfied with work progress of the sub, s/he has some measure of control by not progress of the sub, s/he has some measure of control by not approving all or part of the invoices submitted by the subapproving all or part of the invoices submitted by the sub

Monitoring a Non-UC Sub

Monitoring a UC Sub (MCA)

One must exercise a bit more diligence in monitoring a sub to a UC sister campus than to a non-UC sub.Non UC sub invoices are reviewed and approved by the PI prior to being submitted to Accounts Payable for payment. If the PI is dissatisfied with the work progress of the sub, s/he has some measure of control by not approving all or part of the invoices submitted by the sub.

On the other hand, MCA requests for reimbursement via the Intercampus Reimbursement Request (IRR) go directly to EFM.

Therefore, the department needs to monitor the reimbursements to UC subs by reviewing the 1198XX Receivable Account. It is not unreasonable to request a copy of the UC Sub’s general ledgers for documentation. If the PI is dissatisfied with the work progress by the UC Sub, EFM should be contacted and asked that no further reimbursements (IRRs) be processed without the PI’s prior approval.

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MCA Post-Award

• It is critical that the department monitor IRR transactions monthly via Receivables Account as a means to monitor the work being performed by the UC Sub

• Recommend the department establish a contact with their UC Sub counterpart and keep in touch through-out life of the sub

• EFM and OCGA can provide assistance when needed

It is critical that the department monitor IRR transactions monthly via Receivables Account as a means to monitor the work performed by the UC Sub.We recommend the department establish contact with their UC Sub counterpart and keep in touch through-out the life of the sub.EFM and OCGA can provide assistance when needed

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Differences between an MCA and a Subaward or Subcontract - Reimbursement

UC SubUC Sub’’s Extramural s Extramural Accounting Office Accounting Office submits an submits an Intercampus Request Intercampus Request for Reimbursement for Reimbursement (IRR) to EFM (IRR) to EFM

EFM reviews IRR via 1198XX Receivable Account to ensure EFM reviews IRR via 1198XX Receivable Account to ensure costs are within approved budget period and awarded costs are within approved budget period and awarded amount; prepares intercampus financial journal to reimburse amount; prepares intercampus financial journal to reimburse the UC Sub UNLESS notified by the PI to withhold the UC Sub UNLESS notified by the PI to withhold reimbursement due to dissatisfaction with work progressreimbursement due to dissatisfaction with work progress

Sub submits invoice for Sub submits invoice for reimbursement to the reimbursement to the UCLA PIUCLA PI

PI reviews invoice to PI reviews invoice to ensure costs are ensure costs are appropriate and appropriate and reasonable; indicates reasonable; indicates approval of Subapproval of Sub’’s progress s progress by signing the invoiceby signing the invoice

Dept. performs receiving Dept. performs receiving in BruinBuy for the in BruinBuy for the invoiced amount and invoiced amount and submits invoice to submits invoice to Accounts Payable for Accounts Payable for processingprocessing

Reimbursement of Costs to a non-UC Sub

Reimbursement of Costs to a UC Sub

As indicated in earlier, the method of reimbursement greatly difAs indicated in earlier, the method of reimbursement greatly differs between fers between subawards and subcontracts and Multiple Campus Agreements. subawards and subcontracts and Multiple Campus Agreements. For nonUC Subs:For nonUC Subs:

Sub submits invoice for reimbursement to the UCLA PISub submits invoice for reimbursement to the UCLA PI

PI reviews invoice to ensure costs are appropriate and reasonablPI reviews invoice to ensure costs are appropriate and reasonable. Indicates e. Indicates approval of Subapproval of Sub’’s progress by signing the invoices progress by signing the invoice

Dept. performs receiving in BruinBuy for the invoiced amount anDept. performs receiving in BruinBuy for the invoiced amount and submits invoice d submits invoice to Accounts Payable for processingto Accounts Payable for processing

For NON UC Subs:For NON UC Subs:UC SubUC Sub’’s Extramural Accounting Office submits an Intercampus Request fos Extramural Accounting Office submits an Intercampus Request for r Reimbursement (IIR) to EFM Reimbursement (IIR) to EFM

EFM reviews IRR via 1198XX ledger to ensure costs are within theEFM reviews IRR via 1198XX ledger to ensure costs are within the approved approved budget; prepares intercampus financial journal to reimburse the budget; prepares intercampus financial journal to reimburse the UC Sub UNLESS UC Sub UNLESS notified by the PI to with hold reimbursement due to dissatisfacnotified by the PI to with hold reimbursement due to dissatisfaction with work tion with work progress. progress.

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Sample Intercampus Request for

Reimbursement (IRR) from UC Davis to UCLA

Here is an example of an IRR. You see that the Fund Manager at the UC Davis Extramural Fund Accounting office sent the IRR to the Fund Manager in UCLA’s Extramural Fund Management Office. There is no cc: to the UCLA PI on these IRRs.

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EFM Cash Management Team processes Journal to reimburse UC campus

Here is an example of what an IRR looks like in the Detailed General Ledger.

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Differences between an MCA and a Subaward or Subcontract – Administrative Close-out

Dept/PI acquires required non-fiscal final reports such as technical, equipment, patent, etc. from the sub and incorporates the sub’s reports into PI’s reports

PI submits reports to the Sponsor

Administratively closing a non-UC Sub

Administratively closing a UC Sub (MCA)

Dept/PI acquires required non-fiscal final reports such as technical, equipment, patent, etc. from the suband incorporates the sub’s reports into PI’s reports

PI submits reports to the Sponsor PI submits reports to the Sponsor

The administrative close-out for a non-UC sub and a UC sub is the same. That is, the department acquires the required non-fiscal final reports which may include technical, equipment, patent from the subrecipient and incorporates those reports into the PI’s reports . The PI submits the report(s) to the sponsor.

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Differences between an MCA and a Subaward or Subcontract - Fiscal Close-out

By date specified in MCA, Dept. ensures that UC Sub submits the final IRR (marked as such) to EFM and requests a copy of the IRR for Dept’s review

Dept. reviews final IRR and any requested documentation, confirming with PI acceptability of UC Sub’s performance

Unless PI/Dept. notifies Unless PI/Dept. notifies EFM of any outstanding EFM of any outstanding issues or discrepancies, issues or discrepancies, EFM processes final IRR EFM processes final IRR and deobligates any and deobligates any unexpended balanceunexpended balance

Closing out a non-UC Sub

Closing out a UC Sub (MCA)

Dept/PI acquires from Sub the final invoice (marked as such)

PI reviews final invoice and signs if found acceptable. Dept. performs receiving in BruinBuy and submits final invoice to Accounts Payable for processing

Accounts Payable reviews final invoice and if found compliant, processes payment

There are differences in the fiscal close-out between a non-UC sub and a UC sub.

For a non-UC sub. Department/PI acquires from the Sub the final invoice, makred as such. The PI reviews final invoice and signs if found acceptable. Dept. performs receiving in BruinBuy and submits final invoice to Accounts Payable for processing. Accounts Payable reviews final invoice and if found compliant, processes payment.

For the UC Sub: Dept. ensures that UC Sub submits the final IIR (marked as such) to EFM and requests a copy of the IRR for Dept’s review. Dept. reviews final IRR and any requested documentation, confirming with PI acceptability of UC Sub’s performance. Unless PI/Dept. notifies EFM of any outstanding issues or discrepancies, EFM processes final IRR and deobligates any unexpended balance

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Differences between an MCA and a Subaward or Subcontract – Final Steps in Closing a Non UC Sub

Preparation and submission of the the appropriate Sub Closeappropriate Sub Close--out out Certificate to designated Certificate to designated ee--fax or emailfax or email

Upon receipt of the Close-out Certificate, Purchasing closes the PO and releases any encumbrance

EFM deobligates any unexpended balance

There is one final step for the non-UC sub fiscal close out, and that is the preparation and submission of the appropriate sub close-out certificate to the designated efax or email. Upon receipt of the close-out certificate, Purchasing closes the PO and releases any encumbrance. EFM then deobligates any unexpended balance.

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MCA Grid

• The differences between a subaward or subcontract and an MCA can be confusing

• The MCA grid may help minimize confusion (see Resources tab)

The differences between a subaward or subcontract and an MCA can be confusing. The MCA grid, available on the Resources tab, may help minimize confusion.

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In Summary

• A Multiple Campus Award is a subaward issued by UCLA to another UC Campus

• The set-up, administrative, and fiscal management of an MCA differs from a non-UC sub– Set up is done by OCGA Officer/Analyst

• Not the Subaward Administrator or Purchasing– Billing is done via an Intercampus Request for Reimbursement (IRR)

from the sister campus’ accounting office to EFM• Not via an invoice submitted by the subrecipient to the PI

– Reimbursement is done by EFM via an intercampus transfer of funds• Not by the review and approval of a subrecipient’s invoice that is submitted

to Accounts Payable for processing• Extra diligence must be exercised by the PI/Department to ensure

work is being performed satisfactorily and that expenditures arereasonable, allowable and allocable

A Multiple Campus Award is a subaward issued by UCLA to another UC CampusThe set-up, administrative and fiscal management of an MCA differs from a non-UC sub.

Set up is done by OCGA Officer/Analyst, not the Subaward Administrator or Purchasing.Billing is done via an Intercampus Request for Reimbursement (IRR) from the sister campus’s accounting office to EFM and not via an invoice submitted by the subrecipient to the PIReimbursement is done by EFM via an intercampus transfer of funds, not by the review and approval of a subrecipient’s invoice that is submitted to Accounts Payable for processing.

Extra diligence must be exercised by the PI/Department to ensure the work is being performed satisfactorily and that expenditures are reasonable, allowable and allocable.

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ORA acknowledges and thanks Karen Marchant and Kim Duiker from the

Office of Contract and Grant Administration, and Becky Henricksen, Evelyn Balabis, and

Maurice Taylor from EFM for their contributions to the content of this module

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ORA acknowledges and thanks the “voice” of the

Subaward and Subcontract modules

Ken Castro-Oistad, Sr. Grant Analyst Office of Contract and Grant Administration