The following are the closeout documents associated with subawards or subcontracts, when applicable. Specific closeout requirements can be determined by referencing the subaward or subcontract. University procedures for subaward or subcontract closeout can be found within the "Procedures for the Administration of Subawards" and "Procedures for the Administration of Subcontracts," as included under policy RA80.

Subawards (RA80)

Subcontracts (RA80)


Audit Review (Subrecipient Monitoring)

Why?  The Uniform Guidance is the federal regulation which establishes audit requirements and defines federal responsibilities for implementing and monitoring requirements for institutions of higher education/other nonprofit organizations receiving federal awards either directly or indirectly. As a recipient of federal funds, Penn State is responsible for the programmatic and financial monitoring of its sponsored research award subrecipients. A key element of such financial monitoring is reviewing the single audit and/or other audit reports filed by subrecipients.

How?  When an single audit or audited financial statement review is necessary, the following steps are taken by OSP:

  • The audit report is accessed online via the Federal Audit Clearinghouse or, if the information is not available in the Clearinghouse, the subrecipient is contacted directly for the audit report.
  • The audit report is reviewed for findings.
  • If there are no findings, the subrecipient is considered low risk and the review is complete.
  • If any findings are indicated, OSP sends a request to the subrecipient for a copy of their corrective action plan.
  • Upon receipt of the corrective action plan, a risk assessment is done based on the information provided.
  • A determination of low or high risk is made.
  • If low risk, OSP documents the risk assessment details and the review is considered complete.
  • If high risk, guidance is sought from the Director/Associate Director of OSP and further monitoring may be required.
  • In a case where no audit is available, a risk assessment is performed based on several factors including history, alternative financial information provided by the subrecipient, amount of the subaward/subcontract, etc.