Subcontractor Award Invoicing
OFFICE OF GRANTS AND CONTRACTS
This tutorial will allow you to understand the invoicing process for Subcontract awards.
August 2012
SUBCONTRACT INVOICING
Table of Contents Objectives ....................................................................................................... 1 What is a Subcontract? ................................................................................... 2 What is a Subcontract Invoice? ....................................................................... 2 Log in the Invoice ............................................................................................ 2 Receiving an Invoice ........................................................................................ 3 Appendix A: Invoice Memo ...................................................................................... i
SUBCONTRACT INVOICING
Objectives When you have completed the Subcontract Award Invoicing tutorial you will be able to do the following: Identify a Subcontract Award Identify an invoice Analyze the invoice Match the invoice with existing contract/subcontract information Process the invoice according to the status of the subcontract.
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What is a Subcontract? On occasion, Grant Awards have services that will not be completed by East Carolina University personnel attached to the original grant, but will be completed by an individual or business that is hired by the primary investigator. The work that is to be completed by this individual or business must be approved. Once approved, then there is a subcontract for the grant and we must track the subcontract information in addition to the primary grant information.
What is a Subcontract Invoice? A subcontract invoice is an invoice from those we subcontract work to for services rendered. There is no standard invoice format for subcontractors; therefore, you will receive them in all formats and a variety of ways (email, mail from ECU department). Though the entire invoice should be reviewed for accuracy, there are a few pieces of key information we need to identify and check against the Sorted Subcontracts Log in order to know how to proceed with the invoice - Do we have this approved subcontract on file? Can we pay it? Is it still active? Are there any areas of concern or discrepancy?
Log in the Invoice Logging the received subcontract invoice in the Invoice Received Log allows us to keep a record of the details of the invoice and where it is currently. You can access the Invoice Received Log on the share drive under Grants and Contracts > Grants > Subcontracts > Invoices Received Log. Log in the following information: Fund Number, Invoice Number, PI Name, Date Received, Date Forwarded, Notes, and Amount. Save your changes.
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Receiving an Invoice 1. Once you receive an invoice from a subcontractor you will need to find
the subcontract information on the Sorted Subcontract Log. a. Open the Sorted Subcontract Log excel file. b. Use the Find (Ctrl + F) feature to search the log for matching information given to you on the invoice. For example: Search for the subcontract number, amount awarded, or company name. Excel will show you all matching results for your search. Of these results, you should be able to match the invoice to the correct grant. 2. Once you locate the correct entry, write the fund number and the Primary Investigator’s (PI) name in the top right corner of the invoice. Check to make sure the invoice is within the correct date range to be paid. a. Lookup the end date on the Sorted Subcontract Log Is the invoice for after the end date? o Check all the information regarding the subcontract and consult the Financial Analyst assigned to the Grant. Is the invoice for before the end date? o Continue on to step #3. 3. Once you verify the award is within the correct date range, you then need to verify that there are sufficient funds available to use for payment. a. Look up the available balance on the award using the FRIGITD screen in the Banner system.
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b. Type in the grant number and press Ctrl+Page Down c. Look in the Available Balance column of account 73072 (0-25,000 Subcontracts) or 73073 (25,000+ Subcontracts) to see if funds are sufficient to pay the invoice. If there are insufficient funds, consult the Financial Analyst assigned to the Grant. If there are sufficient funds continue to step #4. 4. Forward the invoice to the appropriate PI/department. a. Make a copy of the invoice and any other included documents and put into Linda’s Invoice Box filed by invoice amount b. Send the original invoice with the Invoice Memo to the Department/PI through campus mail. Make sure you have marked on the Invoice Received Log the date that the invoice was forwarded to the department c. Departments/PI’s pay subcontract invoices through PORT.
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This concludes the Subcontract Award Invoicing tutorial.
The subcontract is paid directly from the departments. Next
Who
1. Primary: Suhail Guzman 2. Backup: Stephanie Hendrix
Subcontract Tracking Related Training
Author
Kari E Busard Training Specialist Office of Grants and Contracts East Carolina University
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Appendix A: Invoice Memo
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Office of Grants & Contracts, Suite 2900 Greenville Centre Main telephone 328-9530, grantsc@ecu.edu
Enclosed is an invoice from your subcontractor. Please carefully review the invoice for accuracy and the period of performance. Please verify that the subcontractor is adequately performing services under their scope of work. If there are no concerns, payment should be processed, as soon as possible; no later than 30 days. Payment should not be made on this invoice if there are any questions about the amounts invoiced or the performance of the work scope. Please contact your OGC representative if you have any questions/concerns about the invoice or the subcontractor's performance. Payment should not be withheld without discussion of your concerns with OGC. If payment is to be withheld, OGC should make the contact with the subcontractor to discuss the issues and assure timely remedy, in accordance with the contractual terms of the agreement. All subcontractor invoices must be approved by the PI. The PI should sign the invoice or an attached memo verifying approval and authorization to pay the invoice. The PI should certify the adequate performance of the subcontractor. The following statement should be included as part of the PI approval process for all subcontractor payments.* By my signature, I verify that the subcontractor is adequately performing under the terms of this agreement (data, reporting, etc.). I understand that I should contact/advise OGC if there are any performance or other issues related to this subagreement. PI Signature OGC will not be able to approve the invoice for payment if it does not include this certification statement and the PI signature. Please contact your OGC representative if you have any questions concerning this invoice or any other matter related to this subcontractor or your award.
* As an efficiency, you might want to have the statement pre-typed on file or mailing labels so that it will be easy to attach to your invoice documents and you do not need to create the statement for each individual invoice. The statement and signature can be either on the invoice or in a separate attached memo. The statement/signature must be uploaded with the PORT process or attached to the direct pay documents before OGC can approve the invoice for processing.
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