To include subcontract expenses in the budget, multiple line items may be required. Per A-21 Cost Principles, most subcontracts are subject to F&A for only the first $25,000 of the entire award. The remaining amount over $25,000 is not subject to F&A. Cost elements are available to support this entry requirement.
To manually add line items, do this for each subcontract:
a. For the first $25,000, select Subcontracts – Subject to F&A.
b. You may wish to enter the name of the subcontractor or subcontract PI in the Description field.
c. Click the Cost field and enter the cost of the subcontract that is subject to F&A (up to $25,000).
d. Click Add to save this detail line
2. If the subcontract is for $25,000 or less, go to step Error! Reference source not found.. If the subcontract is for more than $25,000, add another line item (See next step.
3. .In the Add row, select Subcontracts– No F&A and click OK.
a. Click the Description field and enter the name of the subcontractor.
b. Click the Cost field and enter the amount by which the subcontract exceeds $25,000.
4. If you have already generated your budget periods, you will need to add line items to each budget period.
a. Use the Add to Later Periods to have the system create the line items. You will need to review each budget period to verify the costs generated.
b. Or you may prefer to manually insert the necessary line items in each budget period.