Subagreement Process


A subagreement is a document written under the authority of, and consistent with, the terms and conditions of an award (a grant, contract or cooperative agreement), that transfers a portion of the research or substantive effort of the prime award to another institution or organization.

When a portion of the project is going to be carried out at another institution or organization (third parties), a subcontract or subagreement with the University is required in order to ensure compliance with sponsor requirements. The third party is required to provide the necessary resources to conduct the work, including providing an investigator at the work site to oversee the project activities.

The AU Subrecipient Commitment Form is required at the proposal stage for all proposed subagreements.

In addition, some federal agencies require a completed cover sheet and certifications signed by the institution's authorized official. Subagreements may also require the prior written approval of the agency's grants officer.

At the award stage, all subrecipients must register as a vendor before a subcontract will be written.

The Office of Sponsored Programs (OSP) writes and executes subagreements with other institutions. OSP will encumber the funds in the grant/contract account for projected expenses pending actual expenditure of the funds for subagreements. The AU department for which the subagreement was written will be notified of the encumbrance number. The department is then responsible for monitoring the subrecipient’s progress and processing the subrecipient’s invoices for payment. OSP is responsible for issuing the subagreements and any modifications, monitoring payments and cost-share reporting, and closing out of subagreements.

Subaward vs. PSC  AU Subrecipient Commitment Form
Subagreement Process FDP Subagreement Template (Link to FDP Website)
Subrecipient Cost Sharing Definition Attachment 3B
Subrecipient Invoicing Procedures Subagreement Invoicing Checklist
Vendor Registration Information (Link to PPS) Subrecipient Cost Sharing Documentation Form (right click and select "Open in New Window")
Subaward Definition Subrecipient Sample Invoice (right click and select "Open in New Window")
Outgoing Subaward Process - Roles and Responsibilities Subagreement Close Out Documents