Streamlining The Subcontract Process

DGCA Home Page | Rutger Home Page |

STREAMLINING THE SUBCONTRACT/SUBAWARD PROCESS

This past fiscal year a committee (see below) of business managers with numerous subcontracts/subawards and central administrators reviewed the processing of subcontracts/subawards in an effort to streamline and improve the process. The results of the review are below.

The current processing of subcontracts/subawards leads to delays in processing of invoices, payment of vendors, and the closing of the subcontracts/subawards, which can jeopardize the recovery of our costs from the sponsor. It is also difficult sometimes to determine why the process is not going as planned. A major part of the problem is that the current process involves a four-way match in RIAS. The committee has decided to use a two-way match process.

Under this approach the ORSP will set up the purchase order in RIAS as a two-way match. When the invoice is received by Distribution Control they will enter it into the system as usual. However, since the purchase order was set up as a two-way match it will pop up as a "Manual Certification Hold." This means Distribution Control will send out a copy of the invoice to the department to get a manually signed receiver. This is the same procedure currently used for receiving invoices for products or services over $5,000. The only difference is that all subcontract/subaward invoices will be manually received. This should not be a problem in most cases since almost all subcontract/subaward invoices are over $5,000.

When the departments receive the manual receiver they should do what they are doing currently to make sure the following items are covered before RETURNING it to Distribution Control (no more sending to the DGCA):

1. The invoice has the RU Purchase Order Number and Grant Account Number, the time period (not just invoice date) covered by the invoice (which is within the award period), and that there are itemized expenditures for the current period and cumulative-to-date.

2. The subcontractor certification is affixed per the terms and conditions of the award.
3. The Principal Investigator/Project Director has approved the invoice signifying that he or she is satisfied with the work performed.

Reminder: This review is a critical part of the University's subrecipient (subcontractor) review function.

When Distribution Control receives the properly approved manual receiver they will enter the receiver into the system for subsequent automatic payment unless otherwise specified by the department.

The committee feels this approach will streamline and improve the processing of subcontracts/subaward invoices.

Implementation:

Effective July 1, 2004 the ORSP will start using the two-way match in their subcontract/subaward purchase order processing. Effective July 1, 2004, Administrative Computing Services will take all in-house purchase orders currently with a four-way flag and change that flag to two-way match. There is no additional work required at the departmental level.

Committee:

        Michele Conlin                 Candace Grace
        David Hamlin                    Maureen Jones
        Susan Keller                    Richard Lee
        Ralph Lindauer                 Pauline Mustacciulo
        Maryellen O'Brien               Roberta O'Haeri
        Keith Osterhage                 Pat Szary
        Ron Thompson