How Do I Monitor The Technical And Financial Performance Of A Subrecipient?
The frequency and scope of monitoring procedures should be consistent with the terms of the subaward. The PI and departmental administrators should use the following subrecipient monitoring procedures when appropriate:
1. The PI should review technical performance reports or other specified deliverables on a timely basis. Any unforeseen issues should be documented, investigated, and resolved.
2. The PI and departmental administrator(s) should perform an expense to budget comparison for cost-reimbursement subawards.
3. The PI and departmental administrator(s) should review invoices and financial reports. When issuing payments on cost-reimbursement subawards, USC is expected to issue payment on allowable costs within 30 calendar days after receipt of the billing, unless USC reasonably believes the payment to be improper.
4. PIs are required to document their review and approval of invoices. Such documentation may include, for example: PI initials or authorizing signature on invoices, email communications, notes of meetings with the department/school administrator(s), etc.
5. Departmental administrators should request the subrecipient to provide clarification of invoiced charges that appear unusual, excessive, or otherwise questionable. If the subaward terms permit, departmental administrators may request detailed justification to verify the allowability of the cost. Examples of detailed justifications include:
- Payroll records
- Copies of paid invoices showing item cost if required
- Descriptions of services rendered by consultants including hourly rates and time reports
- Details of incurred travel charges stating the purpose of the travel
- Records identifying any unallowable costs
6. If the subaward terms permit, the PI and/or departmental administrators may conduct on-site visits and audits to evaluate compliance with the project’s scientific objectives, and the appropriateness of the subrecipient’ s administrative systems, processes and charges. PIs and departmental administrators should work with the Department of Contracts and Grants if on-site visits or audits are deemed necessary.