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16.5.1 Review and Pay Subrecipient Invoices

Policy Statement

The University of Illinois System may issue a subaward to a subrecipient for the purpose of performing a portion of the scope of work under an award for a sponsored project. In issuing a subaward, the university assumes responsibility for the oversight of programmatic and financial activities of the subrecipient throughout the life of the subaward, including but not limited to the determination of subrecipient versus contractor, assessing subrecipient’s capacity to perform, and subrecipient’s compliance with award terms. The Principal Investigator (PI) shall be responsible for confirming the subrecipient performs the awarded scope of work and all costs are reasonable and in accordance with the terms of the award.

Before Beginning

The Principal Investigator (PI) is responsible for reviewing, certifying, and approving all invoices, in consultation with the business manager as required, with regard to the subrecipient’s performance. In some cases, the PI may delegate this authority to a designee who can attest to the performance of the subrecipient. When this occurs, written documentation must be kept on file. For UIS and UIUC, notify and provide this documentation to the sponsored programs offices.

Encumbrance Number

An encumbrance must be established in Banner before an invoice can be paid. After a subaward has been fully executed, a copy of the subaward agreement is sent to the PI and the sponsored programs offices. Additional details for each university are as follows:

Final Invoice

In order for the system to comply with its financial reporting requirements, subrecipients are required to submit a final invoice within the timeframe specified in the subaward. The final invoice should not be paid until the subrecipient has met all subaward requirements. In the event that a final invoice is received from the subrecipient after the specified time period has lapsed, payment may be denied. PIs and unit business managers are responsible for obtaining final closeout information, including invoices, from their subrecipients.

Begin

To review and pay subrecipient invoices, the PI or delegate should:

• Review each invoice with regard to applicable regulations and the terms and conditions of the award.
• Ensure the costs are reasonable (i.e., in line with the amount of work being reported or deliverables submitted), allowable in accordance with the cost principles, and incurred within the project period.
• Ensure any cost sharing commitment has been satisfied and that appropriate documentation is received from the subrecipient. The subrecipient’s cost sharing must meet the criteria specified in the system’s cost sharing policy. If a subaward includes a cost sharing commitment from a subrecipient, this should be reported on the subrecipient’s invoices, including the cumulative cost sharing total.
• Investigate any charges that appear to be unallowable, unusual, or excessive, and resolve them prior to submitting the invoice for payment.
• Submit the approved invoice for payment using the Request a General Encumbrance/Wire Transfer Payment form following instructions found at the Non-Purchase Order Invoices webpage.
• Make sure the final invoice is submitted by the subrecipient within the timeframe specified in the subaward or payment may be denied.

For UIC, the Subrecipient Monitoring—Invoice Checklist may be used to help ensure the invoice meets the criteria for completeness and compliance prior to release of payment.

Forms Used in this Procedure

Request a General Encumbrance/Wire Transfer Payment

UIC—Subrecipient Monitoring—Invoice Checklist

Additional Resources

Non-Purchase Order Invoices

First Published: July 2015 | Last Updated: March 2024 | Last Reviewed: March 2024