Paying Subcontracts

As part of your research efforts at Case Western Reserve University, you may encounter the need to pay subcontractors through your grant. All subcontract agreements should indicate that all  invoices from the subrecipient should be sent by the subcontractor to

Steps for Setting Up and Paying Subcontracts

  1. Upon receipt of a fully executed subcontract agreement  and subcontract NOA  from PASA  the department administrator (or designee) initiates a requisition within PeopleSoft to request a blanket Purchase Order. 
    1. The requisition should be for the full amount of the executed contract.
    2. The start and end date must match the agreement.
    3. The account code in peoplesoft financials is 533800.
    4. The fully executed agreement must be attached to the requisition. 
    5. For amendments to subcontracts the requisition should include the same information and instead of requesting a new PO the requisition should be to increase the PO in the amount of the amendment. 
  2. Purchasing generates a blanket Purchase Order from the requisition.
  3. Work of the subrecipient begins as a result of their receipt of a full executed agreement. 
  4. Invoices from the subrecipient are sent to and forwarded to the department for review and processing for payment.  Note: If you have a subcontract and do not receive invoices regularly (at least every two months) please email requesting we follow up on receipt of invoices.
  5. Department administrators reviews the invoice to ensure expenses from the subrecipient are appropriate and completes the  Certification of Invoice for Payment form
    1. Invoices should have itemized costs by major categories such as salaries, fringe benefits, indirect costs, supplies and equipment. 
    2. DAs should review the agreement to the subrecipient and PO email issued from PASA to see if the subrecipient has been identified as high risk. Invoices from high risk subrecipients must be accompanied by a copy of  the subrecipient’s general ledger detailing expenses on the invoice.  
  6. The Department Administration forwards the invoice and the Certification of Invoice for Payment form to the PI for approval and signature. The PI reviews the invoice for allocability, allowability, reasonableness of costs, and programmatic and financial progress of the subaward. The principal investigator (PI) certifies that the invoice is approved for payment by signing the Certification of Invoice for Payment form. 
  7. The signed Certification of Invoice Payment form is returned to the Department Administrator. 
  8. The Department Administrator submits the invoice and the Certificate of Invoice for payment form to