A subaward is a contractual agreement between the primary award recipient (lead) and a secondary institution. It contains the work specifications, approved budget, and the terms and conditions under which the work is to be accomplished. A subaward is issued when a third-party organization (e.g., collaborator at another university) is needed to perform a scientific or programmatic portion of a 51猎奇 sponsored program.
51猎奇 as the Primary (Lead) Institution
If you are a principal investigator and are funding one or more colleagues from another institution from your grant, your colleagues must provide the following information to you prior to proposal submission:
- 础听letter of commitment聽or聽statement of intent to enter into a consortium agreement聽from their organization(s) signed by an individual authorized to bind the institution to a grant/contract. If cost-sharing is proposed, the letter must include a statement indicating the institution will provide the cost-share amount during the award term.
- 础听statement of work聽for the organization鈥檚 role in the project.
- 础听budget and budget justification, approved by their organization, of their share of the project costs (including information related to cost-sharing, if applicable).
Additional documents may be required depending on the requirements of the grant program and sponsor.
Collaborative Linkages
When sponsors and program guidelines allow collaborative applications to be submitted as a simultaneous submission of proposals from different organizations with each organization requesting a separate award, it is assumed that this method will be used.
The benefits of collaborative linkages are significant: in addition to being a collegial way to treat partners, submission of a collaborative proposal from multiple organizations reduces for the lead organization the administrative burden that comes with managing subawards, provides direct and quicker access to funding for the non-lead organization, and has cleaner reporting responsibilities for both.
In the event a Principal Investigator has a strong desire to submit as a single proposal in which a single award is being requested with subawards administered by 51猎奇, then, if funded, the F&A generated from each subaward will be split evenly between the applicant College/School/Unit and OSP.
51猎奇 as the Subawardee
If you will be key personnel on a proposal in which another institution is the primary award recipient, provide the following information to the Principal Investigator prior to proposal submission:
- 础听letter of commitment聽from the聽51猎奇聽Office of Sponsored Programs (contact your聽Pre-Award Specialist聽for assistance).
- 础听statement of work, for聽51猎奇鈥榮 role in the project.
- 础听budget and budget justification, approved by the聽51猎奇聽Office of Sponsored Programs, for聽51猎奇鈥榮 share of the project costs.
The lead institution may require additional documents depending on its policies and the requirements of the grant program or sponsor.
Subaward requirements vary among sponsors and programs; carefully review the sponsor鈥檚 guidelines and contact the Pre-Award Specialist assigned to your Division/School/College for assistance.
Other Costs
Consultants
A consultant is an individual who provides professional advice or services for a fee, but normally not as an employee of the lead institution. Consultants typically possess a unique skill, expertise, and/or education to participate in a particular project. Consultant charges and use must be appropriately justified in the proposal. Proposed consultant rates must align with rates used from all sources of funding鈥攂oth federal and non-federal.
Sponsors may have specific criteria for the inclusion of consultants in project budgets; please refer to the sponsor鈥檚 guidelines for further information. Employees of the UW System may NOT be paid as consultants on any sponsored project; the inclusion of other UW System employees must be handled as a subaward for budgeting and payment purposes. For additional guidance, contact the Pre-Award Specialist assigned to your Division/School/College.
Maintenance
Typically refers to costs associated with equipment maintenance, such as software, technology, or vehicles used in the project. These costs must be appropriately documented to be allocated to the project.
Materials and Supplies
The cost for the materials and supplies for a project may be included in the budget if they are necessary, reasonable, and allocable. Materials and supplies usually cost less than $5,000 to acquire; most computing devices are considered a 鈥渟upply.鈥� To include computing devices in a budget as a direct cost item, the budget justification should clearly state that the cost is essential and necessary for the project.
Publications
Many peer-reviewed journals charge authors for the publication of their scholarly products, and most sponsors allow PIs to include 鈥減age charges鈥� in their project budgets. These expenses typically support the dissemination plan.
Other Direct Costs
Includes costs that may be directly allocated to a particular project but do not align with any of the other direct cost categories listed above. This may include tuition for graduate students and human subject payments.
| Proposal To: | Indirect Costs Rate: | Tuition Remission Required |
| I. Federal Entities | ||
| A. Direct Federal (unless federal regulations stipulate an alternate rate). | Full* | Yes |
| B. Non-direct Federal (All sources except the State of Wisconsin and Wisconsin Governmental Units鈥擲ee Below). | Full | Yes |
| II. Non-Federal Entities | ||
| A. For-profit Entities | Full | No |
| Except: | ||
| Clinical Trial | 20% | No |
| Matching Funds for a Federal or Non-Profit Funded Grant/Contract. | Rate Applicable on Original Award | No |
| B. Non-Profit Entities | Full | No |
| Except: | ||
| Agencies with University Approved Rate that Differs (See Indirect Cost Policy). | Stipulated Rate | No |
| Agencies without University Approved Rate but with Documentation to Establish an Acceptable Rate. | To Be Determined | No |
| Non-Wisconsin Governmental Units (e.g., foreign, or domestic states, counties, municipalities, etc.). | Full | No |
| Wisconsin Governmental Units (counties or local municipalities or government units).** | 15% | Yes |
| C. State of Wisconsin Agencies*** | 15% | Yes |
| Except | ||
| DPI, VTAE, and H&FS Training, Instructional, and Public Service Proposals. | 8% | Yes |
*鈥滷ull鈥� indicates the entire Indirect Cost Rate appropriate for the project type (research, instruction, or public service).
**All proposals must include the following statement: 鈥淚f funded with federal pass-through funds, Indirect Costs must be awarded at the highest allowable rate. If no federal funds are involved, tuition remission may be excluded from the award.鈥�
***All proposal budgets must include the following statement: 鈥淚f funded from state GPR funds, tuition remission and Indirect may be excluded from the award.鈥�
Other Budget Considerations
Below are additional considerations for the development of sponsored program budgets at 51猎奇. Please contact the Pre-Award Specialist assigned to your Division/School/College with questions related to any of these topics.
Budget Justifications
The budget justification is a vital part of the proposal. The budget justification serves as the basis for the figures included on the budget pages and is critical in the proposal review process. Below are a few items to remember when developing your budget justification:
- Show your work. Reviewers and sponsor administrators should be able to determine how you arrived at your budget figures.
- The budget justification serves as the rationale for your costs. Be certain to tie each cost to the overall project so that readers understand the importance of each cost/item to the overall project.
- If portions of your budget include an escalation for costs, be sure to state this in the budget justification. If you use the Budget Tool, salary may be escalated within the Budget Tool. Fringe benefits are automatically escalated by one percent each year within the Tool.
- Be certain to keep your back-up documentation. Sponsors may request estimates for equipment and other major purchases during a pre-award audit.
- Present the budget justification in a format that allows a reader to easily assess the costs in relation to the budget. For instance, if the budget uses headers such as 鈥渟alaries,鈥� 鈥渇ringe benefits,鈥� and 鈥渢ravel,鈥� be certain to use the same headers in your budget justification. It allows readers to quickly skim the budget and the budget narrative to find specific items of cost.
- Take time to read the budget, budget justification, and narrative. Do all the expenses in the budget appear in the budget justification? Do the budget, budget justification, and proposal narrative all align?
Primarily, remember that the reviewers and program officer are not the only individuals reading your budget justification. If a proposal is recommended for funding, many sponsors send the proposal for a pre-award audit. Many pre-award auditors do not have a scientific or technical background and may not understand vague budget items. It is recommended that you provide as much detail as possible in the budget justification during the submission phase鈥攊t may result in a faster pre-award audit and award processing.
National Science Foundation Budget Justifications
NSF policy requires proposing organizations to define and consistently apply the term 鈥測ear鈥� when requesting salary compensation for senior personnel, and to specify this definition in the budget justification. Sample language to satisfy this expectation follows:
Budget Justification
The following cost items are directly tied to project objectives and activities as described in the project description. Rates follow standard university travel, purchase, and expenditure policies. UW-Milwaukee鈥檚 definition of a 鈥測ear鈥� for budgeting and management of senior personnel compensation is the fiscal year (July 1 to June 30).
Cost-Sharing (Matching Funds)
If a project requires cost-sharing, or matching funds, contact your chair, dean, and/or division head to discuss the proposed cost-sharing commitment. All cost share commitments must be appropriately documented in the proposal and in the Record; failure to provide the appropriate documentation may result in the delay of proposal submission and/or award acceptance.
As a resource to campus, the Office of Sponsored Programs has assembled a list of Frequently Asked Questions as it relates to cost-share.
If the project includes a subrecipient that will provide cost-sharing for the project, the institutional commitment letter must include a reference to the proposed cost-sharing. See Subawards for additional information.
Space Renovations/Implications
All projects that involve the construction or modification of facilities at 51猎奇 will require additional review by the UW System Office of Capital Planning and Budget and/or the State of Wisconsin Building Commission. Contact the Pre-Award Specialist assigned to your Division/School/College to discuss whether the project will require additional institutional clearances or review.