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Subcontracts

Effective November 2010, all F&A charges for any new primary awards and related subcontracts will automatically be charged to your budget and display in MyFinancial Desktop under Account code 25-99.

To see a summary of all subcontract direct charges to your budget, from the Report option in MyFinancial Desktop, select Transaction Summary. All subcontract direct charges will display under Account Code 03-62 (Outside SVC-SUBCONTRAC).

Effective November 2010, all F&A costs (also known as indirect costs or IDC) for subcontracts are being calculated automatically in the Financial Accounting System (FAS) and added to F&A expenditures for the primary award (budget) under Account Code 25-99.

In the past, Grant and Contract and Accounting (GCA) manually entered the F&A for subcontracts as journal vouchers (JVs). These JVs appeared in MyFinancial Desktop under Account Code 25-99 as expenditures against your budget.

You will no longer see JVs used to charge F&A costs due on subcontract expenditures. In addition, GCA will no longer create a 37-99 restricted encumbrance for F&A costs due on subcontract expenditures. F&A transactions for subcontracts will be generated every time an invoice is paid on that subcontract up to the amount subject. As a result, you will see more timely and accurate F&A expenditures under Account Code 25-99.

Generally, the subcontract amount subject to UW F&A costs is based on the business rules of the Funding Action. If, for example, the cost base type for your funding action is Modified Total Direct Costs (MTDC), then your subcontract is subject to F&A on the first $25,000 at the same rate as the primary award. If the cost base type for your funding action is Total Direct Cost (TDC), then all of the subcontract is subject to UW F&A at the same rate as the primary award. You can always use GrantTracker or review the Funding Action associated with your award for more information about the F&A charges to your subcontract(s). If you still have questions after you review the Funding Action, contact the Office of Sponsored Programs (OSP) at osp@uw.edu for assistance.

Account Code 37-99 was used to track F&A encumbrances for subcontracts related to your award budget. Effective November 2010, F&A charges for subcontracts are managed just like F&A charges for the primary award. All F&A transactions for the primary award and associated subcontracts will only display under Account Code 25-99.

If you currently have an award that is classified as MDTC (Cost Base Type 18), the F&A charges for any subcontracts will continue to be manually adjusted until the award has expired. GCA has established a new cost base (Cost Base Type 38) for MTDC awards that include subcontracts. Effective November 1, 2010, all new MTDC awards will use Cost Base Type 38.