Subaward and Contractual Agreement Management Policy

I. Policy Summary

The purpose of this policy is to establish procedures for the awarding, management, and monitoring of subawards and contractual agreements in accordance with 2 CFR 200, Uniform Guidance (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), and State of New Jersey requirements for pass-through funding.

II. Policy Purpose

This policy ensures NJIT provides the oversight required by federal and state regulations to verify that Subrecipients and Contractors comply with programmatic, financial, and compliance terms. It specifically addresses:

• Distinction between Subrecipients and Contractors.
• Risk-based monitoring protocols.
• Management of State-funded MOAs (Memorandums of Agreement) where NJIT acts as a pass-through entity.

III. Policy Scope and Applicability

This policy applies to all Sponsored Research Programs conducted under the auspices of NJIT. It covers all funds (Federal, State, and Private) managed by the Office of Research (OR). Consistency in administration is required regardless of the funding source to ensure institutional compliance.

IV. Definitions

• Subrecipient: An entity that receives a subaward to carry out part of a Federal or State program; creates a federal assistance relationship. (See 2 CFR 200.1).
• Contractor: An entity that receives a contract for the purpose of providing goods and services for the pass-through entity’s own use; creates a procurement relationship.
• MOA (Memorandum of Agreement): Often used for funding transfers between NJIT and State Agencies. When NJIT passes these funds to a third party, the third party is typically treated as a subrecipient under Uniform Guidance.
• Pass-Through Entity (PTE): NJIT, where it provides a subaward to a subrecipient to carry out part of a sponsored program.
• Uniform Guidance (UG): 2 CFR 200, the foundation for all federal grant management.

V. Contractor vs. Subrecipient Determination (2 CFR 200.331)

NJIT must make a case-by-case determination for every outgoing agreement.

VI. Policy Statement & PI Responsibilities

The Office of Research is the sole authority for negotiating and executing agreements. PIs cannot sign agreements or authorize work to begin without a fully executed document and a Purchase Order (PO).

The PI is responsible for:

1. Technical Oversight: Ensuring deliverables are met on time.
2. Invoice Review: Verifying that costs align with technical progress.
3. Conflict of Interest: Ensuring all subrecipient key personnel have filed required COI disclosures.
4. State MOA Compliance: Ensuring specific state reporting metrics (if applicable) are gathered from the subrecipient.

VII. Contract Negotiation and Execution

The Director of Pre-Award Services (or designee) is responsible for:

1. Risk Assessment: Performing a pre-award risk assessment of the subrecipient (audit history, SAM.gov status).
2. Flow-down Provisions: Ensuring all "Prime" award terms (Federal or State) are legally incorporated into the subagreement.
3. SAM.gov Verification: Confirming the entity is not debarred or suspended.

VIII. State of New Jersey Specific Requirements

For agreements funded via State Agency MOAs, the following additional documentation is required during the setup phase:

• NJ Business Registration Certificate (BRC): Required for all NJ-based contractors/subrecipients.
• Chapter 51/Executive Order 117: Pay-to-Play compliance forms for certain threshold amounts.
• AA302 (Affirmative Action): Evidence of a valid employee information report.

IX. Risk-Based Monitoring (2 CFR 200.332)

NJIT evaluates subrecipients to determine the appropriate level of monitoring.

High-Risk Indicators:

• First-time subrecipient with NJIT.
• Prior audit "Material Weaknesses" or "Significant Deficiencies."
• Foreign entities or complex SOWs.
• Large dollar amounts (>$500k/year).

Monitoring Actions:

• Standard: Review of financial/technical reports.
• Enhanced: Requirement for backup documentation (receipts, payroll logs) with every invoice.
• Audit: On-site or virtual desk audits of the subrecipient’s financial systems.

X. Management of Equipment (2 CFR 200.313)

Subrecipients must manage equipment acquired with federal/state funds in accordance with the specific terms of the subaward. The PI must ensure the subrecipient maintains an inventory of "Government-Funded Property" and provides a final inventory report at closeout.

XI. Invoice and Payment Certification

Per 2 CFR 200.415, all invoices must include the following certification statement signed by the subrecipient's authorized official:

"By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements, and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal (or State) award..."

XII. Roles and Responsibilities Matrix