Subcontracts are issued to a third party when projects require expertise and/or facilities not available at Clemson University. Subcontracts are prepared and negotiated by the Office for Sponsored Programs. Once the subcontractor and Clemson University’s authorized official sign the subcontract agreement, it is sent to Grants and Contracts Administration for purchase order set up.
The PI is responsible for certifying technical progress and expenditures. The PI must sign the subcontractor’s invoices before payment is made. Grants and Contracts Administration is responsible for 1) monitoring the expenditures to ensure that the total subcontract is not exceeded, 2) ensuring required audits are performed and 3) requiring corrective action on findings.
Any changes needed in the subcontract should be discussed with the appropriate person in Grants and Contracts Administration to determine if the subcontract can be amended or changed.
If a new subcontract is needed during the life of the project, the Office for Sponsored Programs will negotiate the subcontract. The process outlined previously in Preparing and Negotiating Subcontracts should be followed.
Approximately sixty days prior to subcontract closing, Grants and Contracts Administration sends a Final Closeout Notice to the subcontractor to determine if the subcontract is ready to close. A copy is also sent to the PI. When the final invoice is received, a final progress report and the invoice are sent to the PI for approving signatures. This signature verifies all contract work has been satisfactorily performed and payment is authorized.
When a project wholly or partly sponsored with federal funds generates income, the PI must follow federal standards in accounting for the income. In most circumstances, program income is retained by the recipient and, depending on the regulations of the federal awarding agency, should be used in one or more of the following ways:
When a sponsoring agency authorizes the use of program income according to items 1 and 2 above, income in excess of any stipulated limits must be applied to item 3.
If the federal awarding agency does not specify how program income should be used in its regulations or the program award, item 3 above should be automatically applied to all but research programs. Item 1 should be automatically applied to research programs when another use for program income has not been specified by the agency.
Unless the terms and conditions of the award or the regulations of the awarding agency specify otherwise, the following points apply to program income: