Section 4 - Issuing the Subaward

After the awarding agency has approved the selection of a subrecipient, whether by issuing an award that contains provisions for the subrecipient or by approving the selection of a subrecipient after the award has been made, the PI initiates the issuance of a subaward by completing a UM Request to Issue Subcontract/Subcontract Modification form. The completed form, along with a copy of the subrecipient’s budget and statement of work, should be forwarded to the ORSP.

Upon receipt of this request, the ORSP prepares the subaward and ensures that the subrecipient has supplied appropriate financial information. ORSP staff work with the PI/PD and the proposed subrecipient to design and negotiate acceptable subaward wording in keeping with sponsor guidelines and regulations and UM policies and procedures.

The ORSP will send two originals of the subaward to the subrecipient for signature by an authorized institutional official. Subrecipients are requested to return both copies of the signed subaward, along with other supporting documents as needed (e.g., audit certification, subrecipient questionnaire), to the ORSP for countersignature by the Vice Chancellor for Research and Sponsored Programs.

After the subaward has been fully executed, the ORSP will forward a fully-executed original to the subrecipient and a copy to the ORSP Contracts and Grants Accountant. Effective for all subawards issued on or after July 1, 2005, the ORSP Contracts and Grants Accountant will encumber the subaward funds by creating a purchase requisition in the UM SAP system. A purchase order is generated by Procurement (usually within 24 hours). The purchase order is for encumbrance purposes only, and is not mailed to the subrecipient. The ORSP Contracts and Grants Accountant will forward a copy of the subaward, including the corresponding purchase order number, to the PI.