Hurricane Hunters Preventing the Damage from the Storm of Subawards
Who knew preparing for major natural disasters such as hurricanes could also translate into building a robust subrecipient monitoring system! As we enter the peak of hurricane season, read how the preparation against the elements can also prepare you to weather any subcontracting storm.
For anyone living in the South or along the Eastern Coast of the United States of America, preparing for hurricanes is an all-too familiar activity that is burdensome but also necessary. Subrecipient monitoring requires just as much time and consideration as one would put forth towards preparing for a hurricane. Building a robust subrecipient monitoring system and controls at an institution can prevent both short-term and long-term damage as well as ensuring strong research collaborations across research institutions. It can be a lengthy process and require several iterations, but after a few small storms/subaward issues, remaining committed to building effective controls will pay off. As we move into the 2024 hurricane season, we thought it would be good to revisit some of these topics and how they correlate to hurricane preparation.
For those unaware, hurricanes are massive storms originating over bodies of water that have excessive rains and winds ranging from 74 mph to in excess of 157 mph. How big is massive? One of the more notable storms, Hurricane Katrina from 2005, covered 400 miles. Subrecipient monitoring can cover just as much territory. How do you best prepare?
Start with the low-hanging fruit by having necessary items on hand like batteries, 72 hours’ worth of water for each individual in the household, non-perishable food for 48 hours, and a hand-crank radio. Subrecipients monitoring starts with similar low-hanging fruit during the proposal phase. At minimum, you need the subaward partners’ scope of work, budget, and budget justification. However, we recommend going beyond that. Other things to consider are: subrecipient institutional information including appropriate contacts for potential pre-award negotiations, invoicing contract, banking information for reimbursement, and , necessary information required to complete a subrecipient risk assessment. The Federal Demonstration Partnership has a great checklist for starting a risk assessment. Subaward Templates and Tools - The Federal Demonstration Partnership (thefdp.org)
When an award first arrives at an institution, it can feel like those first bands of a hurricane starting to come ashore – chaotic, noisy, and a bit wild. But that is why we prepared during the proposal phase! The biggest hurdle can be the agreement negotiations but having the basic proposal/award documentation and appropriate subrecipient contact can start that process on the best foot.
During a hurricane, there is almost a certainty that the power will go out at some point. While most of us have cell phones these days that can give us about a day of connectivity, what do you do when you lose that communication and inflow of information? That is where the hand-crank radio or a similar device comes into play. Having this item on hand allows for you to make the best decisions to mitigate risk. Subrecipient information and communication is crucial in suppressing risks. Reviewing invoices and asking questions upon receipt utilizing the information gathered during the proposal process are the best plan of action to minimize subrecipient risks.
Furthermore, having a plan in place for any kind of disaster or process is one of the first steps towards success. For example, hurricane plans are best used when they are documented for everyone to see and when those involved are knowledgeable about their required actions. The same rings true for an institution wishing to have a subrecipient awards program. Sometimes the simplest part of a plan is identifying the task owner and being transparent about the ownership and accountability. Unfortunately, with research administration, sometimes the bystander effect can take place, because everyone else thinks someone is doing a particular task.
In addition to roles and responsibilities, reviewing invoicing in relation to expenditures and constantly evaluating work performance are extremely important. The administrator should keep the principal investigator (PI) informed of the current budget and remaining balance and intentionally ask the PI’s if the work is being performed satisfactorily.
As research administrators, we can take some ownership in the management of the subawards to ensure compliance, solid work performance, and proper billing. Being prepared and constantly monitoring a subaward is crucial to ensure compliance with funding requirements, maintain financial accountability, and achieve project objectives. Fostering communication between the primary awardee and subrecipient ensures that both parties are aligned with the project goals and standards.
In the end, having both a hurricane preparedness plan and subrecipient monitoring plan mitigate the risks and extent of the damage of a “storm.” Storms are inevitable, some might have a slight surge, while others are potentially catastrophic. Regardless, you need to be prepared for both scenarios. Ensuring you define responsibilities, communicate effectively, have appropriate documentation, and implement strong internal controls will help you weather the storm.
Amanda Seymour, CRA, Manager
Attain Partners
SRAI Southern Section President
John Hedberg, Senior Associate
Attain Partners
#Catalyst
#August2024
#ManagementandOperations
#researchethicsandcompliance