Subawards typically are charged Facilities & Administrative costs on the first $25,000 of each subaward, per project period.

Applies To

Subawards (also known as subcontracts or subrecipients)

Process Overview

Watch the video! Click on the video for a brief presentation on Subaward F&A. Keep in mind that the same video will be used as part of the requirements to complete CORE’s Certificate in Research Administration. You may be required to watch the video again in order to obtain the necessary CORE credit.

  • The portion of a subaward that is subject to Facilities and Administrative (F&A) costs is indicated on each Funding Action notification if the grant includes Facilities and Administrative (F&A) costs.
  • Grant and Contract Accounting encumbers Facilities and Administrative (F&A) costs when the award is established. (This encumbrance is shown on your budget with the code: BCSmmddyy, where mmddyy is the date of the NEA).
    • Note: When the budget is established, what seems to be a "double" encumbrance appears on your budget. The encumbered amount is shown in both the Restricted Funds category (37-99) and in the Facilities and Administrative (F&A) category (25-99). As charges are posted to your budget, both encumbrances are liquidated at the same time.
  • On a quarterly basis, GCA manually charges Facilities and Administrative (F&A) costs based upon actual subaward expenditures and reduces the encumbrances as the subaward is charged Facilities and Administrative (F&A) cost.
    • Note: If the Facilities and Administrative (F&A) cost rate assigned to a budget changes during the life of a subaward, the rate charged is the rate in effect at the time the charge is posted to the Budget Activity Report (BAR).

Department Responsibilities

To ensure that Funding Actions are prepared correctly and the budgets set up correctly to account for subaward F&A costs:

  • Be sure to include accurate information about the subaward in your budget proposal
  • Regularly monitor and verify Facilities and Administrative (F&A) cost adjustments posted on the monthly Budget Activity Reports (BAR)

Departments should regularly monitor and verify Facilities and Administrative (F&A) cost encumbrances related to subaward by reviewing monthly Budget Status Reports (BSRs). Discrepancies should be emailed to



  • Facilities and Administrative (F&A) cost policy and Facilities and Administrative (F&A) costs on proposals:
  • Facilities and Administrative (F&A) costs charges and journal vouchers: