We once had a pass-thru subaward on an NIH grant where we were required to invoice for one payment for the entire year at the beginning of the year, which meant we had to keep the funds in an interest-bearing account while we accounted for actual costs each month.    They told me they had also drawn down the total of their award.  The “as-needed-basis” went unnoticed at NIH.  I kept waiting for the other shoe to drop in the PMS, but it never became an issue.  The NIH Program Manager had told them in an email that it was okay to do it that way.   

 

From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Rebecca Larrow
Sent: Wednesday, January 10, 2018 10:08 AM
To: xxxxxx@lists.healthresearch.org
Subject: Re: [RESADM-L] Query: Cost reimbursement payments to subawardees

 

Hi Beverly,

 

We have a similar situation with an NIH grant. We issue payment up front but place the payment against a university account and do not reconcile the charges against the NIH award until the receipts showing payments made are submitted by the PI/Subcontractor. 

 

Hope this helps some, 


Becky Larrow

Award Management Specialist

Clarkson University
315/268-3805

Help us serve you better! The Division of Research at Clarkson University is committed to providing quality service and support to the University community. We would appreciate your feedback on the service you have received from the Front Office Staff. All responses are confidential. http://goo.gl/forms/rl5zcH7cEI

 

On Wed, Jan 10, 2018 at 7:41 AM, Robertson, Beverly <xxxxxx@kent.edu> wrote:

Hi all –

We have an NIH cost reimbursement subaward with a small nonprofit which does not have the cash flow to support paying independent contractors before submitting to us for reimbursement. In doing some research we found language in the NIH Grants Policy Statement under #6 Payment that seems to support the option where the expenses can be incurred by them, but we can pay them before they pay their contractors, as long as they do so within one business day.

We would like to hear from others on this issue and/or other suggestions for maintaining a cost reimbursement subaward structure but still allowing payment without the sub incurring expenses they cannot pay up front. We will look at the option of a fixed price agreement if needed, but want to explore other options first.

Thanks in advance -

 

Beverly Robertson, CRA| Associate Director | Research and Sponsored Programs | Kent State University |

207K Schwartz Center / 800 E. Summit Street | 44242-0001 | 330.672.0711 (p) | 330.672.7991 (f) |xxxxxx@kent.edu

 

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Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.healthresearch.org (click on the "RESADM-L" link under "Sponsored Programs").

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