Subfunds are separate fund numbers assigned to track specific expenses within a project. Subfunds are linked to the parent fund; they are numbered sequentially (1-Z as the last digit of the fund number); and they have the same Banner coding screens as the parent fund. The establishment of subfunds may be required by the terms and conditions of a specific award.
- Examples include but are not limited to:
- Participant Support costs on an NSF award
- Awards for Research Experiences for Undergraduates
- Different F&A rates for expenses within an award
A request from the PI or Department Administrator is not needed if a subfund is required by the award or if a subcontract is involved.
A request for a subfund from the PI or Departmental Administrator is needed if equipment fabrication is involved, if the PI wishes to track costs by a Co-PI, or for other internal budgeting and tracking purposes.
Subfund for Subcontracts to Another Institution
A subcontract subfund is needed when Rice issues a award to another institution, typically a university, with a defined scope of work to carry out a portion of Rice’s programmatic effort under a sponsored project. Research & Cost Accounting receives e-mail notification of a subcontract award from SPARC, similar to the notice received for a new award. Documents required for setting up the subcontract subfund include:
- Subaward Notice
- Specifies the subawarder
- Specifies the agency awarding fund
- Specifies the period of performance
- Specifies the compensation (maximum amount to be paid by Rice)
- Specifies allowable cost and payment information
- Includes assurances
- Includes signatures by both parties
- Scope of Work
- Budget and Budget Justification from the other institution.
The budget in Banner for the subfund includes not only the direct costs authorized to be paid to the subcontractor, but also the Rice F&A costs on the first $25,000 of each subcontract.
Amendments to Subfund for Subcontracts
To amend a subcontract subfund, RCA must receive an e-mail notice of an amendment from SPARC. RCA staff will then:
- Update Banner screens as needed
- Prepare a Budget Revision Notice of Amendment
- Enter a budget journal entry in Banner
- E-mail budget revision notices to department