Steps for Setting Up An Outgoing Northeastern Issued Subcontract:

Note: If your subcontract is incoming from another institution (i.e. Northeastern is the subcontractor), please contact your ORAF Grant Officer for set-up instructions.

1. Complete the Subcontract Request Form.

a. Be sure to always attach a Statement of Work (SOW) and Line Item Budget with a Budget Justification.

Please note that Northeastern issues subcontracts in one year increments only. Therefore, the Line Item Budget needs to be for one year only. The subcontractor period of performance and cumulative incremental funding will be extended by yearly modifications.

2. Submit the Subcontract Request Form, signed by the Northeastern PI, to:

Dan Gilbert
Subcontracts Manager
Research Administration & Finance
960 Renaissance Park

The subcontract agreement will be drafted by the Subcontracts Office and sent to the subcontractor for review, negotiation, and signature. The subcontract will then be reviewed and signed by ORAF.

A PO/Encumbrance will be generated by the Subcontracts Office. The encumbrance (reserved funding) will reside in your grant budget. Account numbers 78050 through 78059 are used for subcontracts. Please contact Dan Gilbert if you would like to know more about how subcontracts are setup in your grant using the Northeastern accounting system.


Invoices from the subcontractor will first be sent to the Subcontracts Office for review and then to the PI for additional review and signature. After signature, the PI will send the signed invoice back to the Subcontracts Office for Accounts Payable processing. Please note that Northeastern is a net 35 institution i.e., a check will be disbursed from the Accounts Payable Office 35 days after the invoice date.

Subcontractor invoices must be based on actual expenses incurred by the subcontractor unless noted otherwise in the subcontract agreement.

The Northeastern PI must approve all subcontract invoices to attest that all subcontractor charges appear reasonable and the progress to date on the project is satisfactory.


If your subcontract is more than one year in length, a subcontract amendment will be needed. Please submit a Subcontract Request Form for year two of the subcontract (and for each subsequent year) approximately one month prior to the year two start date. Be sure to include the year two line item budget and SOW (if different from year 1).The subcontract amendment agreement with the cumulative subcontract dollar amount will be drafted by the Subcontracts Office and sent to the subcontractor for review, negotiation, and signature. The subcontract will then be reviewed and signed by ORAF. The PO/Encumbrance will be modified by the Subcontracts Office to reflect the new subcontract amendment amount.

Useful Information

  1. The period of performance of a subcontract cannot start earlier or end later than the period of performance of the main grant award.
  2. Prior approval will be needed from Northeastern (and possibly from the Sponsor) for: changes to the the scope of work; a new principal investigator; change in period of performance; significant changes to the budget.
  3. A final report of expenditures must be submitted to Northeastern normally within sixty days (or as otherwise stated in the subcontract agreement) of the period of performance end date.
  4. Conflict of Interest. Northeastern PI and subcontractor PI must disclose any financial interests that could pose a conflict with their professional obligations to the University before a subcontract is issued. Investigators who apply for or receive PHS (Public Health Service) funding must now adhere to new Financial Conflict of Interest (FCOI) regulations. Please be advised that ORAF is unable to process new proposals or awards for PHS funded researchers until the required training and disclosure are completed. Please visit: for more information.
  5. Monitoring. All subcontracts require monitoring to ensure that they comply with Federal regulations and with the awarded subcontract terms. In addition, the subcontractor will be asked annually to provide their most recent financial audit as part of the monitoring process.
  6. Closeout. Please remind each of your subcontractors to submit a final invoice, final progress report, and final invention statement (if any) within the time period stated in the subcontract agreement. Final invoices must be paid before the grant closes. Make sure that any remaining PO encumbrances are removed from the grant budget prior to close. An ORAF Financial Analyst will send a comprehensive Grant Closeout Checklist to you several weeks prior to the grant end date.


For questions or clarification about the subcontracting process, please contact Dan Gilbert at or 617-373-2127.

Last Modified: August 29th, 2013