Payments to Subcontractors
In order to receive payment, the subcontractor must request payment according to the terms specified in the agreement. Generally, the subcontractor requests payment by submitting an itemized invoice. When the Office of Sponsored Programs Accounts Payable unit receives an invoice, it is reviewed according to the following criteria:
- Invoice has a stated period of performance, which is in agreement with the terms of the subcontract.
- Invoice total does not exceed the subcontract amount and contains the cost detail which defines the types or categories of costs claimed.
- Costs are allowable
- Invoices are not duplicates of previous submissions
- Cost sharing is properly documented or other contractually binding information has been provided in the required format
- Signatures, if already provided, are from personnel authorized to approve expenditures for the project
The Accounts Payable manager then approves the invoice for payment. If the principal investigator has already signed the invoice, it is entered into the Financial System and scheduled for payment. If a signature is required, the invoice is placed on a thirty-day hold and Accounts Payable forwards the invoices to the principal investigator for approval before payment is issued. The investigator approves payment based on work performed and in accordance with contract terms and conditions. If the subcontractor is required to report cost sharing, the investigator should check to see that this is clearly specified on the invoice before approving it for payment. At this point, the investigator returns the invoice to the Accounts Payable unit for payment.
Advance payments are generally not permitted. No payments may be made until a valid purchase order is issued.