Billing agreements are used to reimburse one institution for a portion of the effort of one of its employees or students working at another institution on a grant of the other institution. The best way to think about it: they/we are purchasing only someone’s time.
Types of Billing Agreements
There are two types, depending on whether funds are coming in or going out of MIT
- Incoming: to reimburse MIT for our students/staff who are working at another institution on a grant awarded to the other institution

- Outgoing: to reimburse another institution for their students/staff who are working at MIT on a grant awarded to MIT
Subaward vs. Billing Agreement
Incoming |
Outgoing |
Subaward |
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* exceptions for training grants: Training grants are a special exception to having other expenses on the billing agreement besides stipend and tuition. Training related expenses may include travel and M & S. |
Incoming Billing Agreements - Standard
Incoming Billing Agreement [DOCX] - September 2021
- Need proposal routed in KC with brief SOW and budget
- RAS will set up in “6” WBS using RESMF* costing sheet and marked as off-campus (*DLC must use the correct off campus G/L for salaries/stipends)
- Ideally one invoice for the entire amount up front, but many institutions request monthly billing
- VPF is responsible for billing
Outgoing Billing Agreements
Outgoing Billing Agreement [DOCX] - September 2021
- No proposal is needed.
- Personnel from another institution will need:
- Appointment at MIT to use our facilities
- To sign our IPIA
- RAS assists DLC in drafting and RAS signs the agreement
- DLC is responsible for invoicing and payment
- Most likely a purchase order is also issued to allow for payment
- Agreement will mirror incoming agreements
Broad Billing Agreements – Under Broad Separation Agreement
- Broad determines which billing agreements fall under the Broad Separation Agreement
- MIT faculty/students/staff working on a project awarded to the Broad, at the Broad, and the MIT PI is also the PI at Broad
- No proposal needed
- Route letters to Laureen Horton for processing
- Send copy of signed agreement to Ron Haseltine
- DLC will set up in “4” Internal Order provided by VPF
- No Overhead (0% F&A) or underrecovery, per VPR
- DLC is responsible for invoicing and payment
RAS should check internal Broad Billing Agreement Guidance for more information.