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 (also known as a Reverse billing agreement): to reimburse another institution for their students/staff who are working at MIT on a grant awarded to MIT
Most billing agreements use the same form. However, when funding a student through a NIH training grant, use a training billing agreement. Training billing agreements allow for the funding of training-related expenses which would normally not transfer through a regular 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. |
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Incoming Billing Agreements Process
RAS has implemented a new process for Salary Billing Agreements with an effective date of July 1, 2022 or later.
- DLC or external institution sends completed incoming billing agreement to salarybillingagreements@mit.edu. (If funding a student through an NIH agreement, use the training billing agreement instead.)
- Include the following information in body of email for account set up:
- Names: Salary Billing Agreement for (fill in name)
- Purposes: To collect charges and bill salary/stipend to (fill in other institution name)
- Supervisor: (fill in name)
- Addressee: (fill in name)
- PC : (enter profit center)
- FC: (enter fund center)
- RAS verifies with DLC effort, period and amount is correct
- RAS logs and routes agreement for signature via DocuSign to external institution.
- RAS administration signs agreement once external institution signs
- RAS sends request to VPF to establish individual account to be charged by the DLC.
- DLC receives fully executed agreement and new account number from RAS.
Note: Those agreements with an effective date before July 1, 2022 will follow the prior process where a proposal is required. Please reach out to your CA for further guidance.
Outgoing (or “Reverse”) Billing Agreements Process
Personnel from another institution will need:
- Appointment at MIT to use our facilities
- Completed Inventions and Proprietary Information Agreement (IPIA) may be required for those who are not MIT faculty, employees or students
- DLC or external institution sends completed outgoing billing agreement to salarybillingagreements@mit.edu. (If funding a student through an NIH agreement, use the training billing agreement instead.)
- RAS verifies with DLC effort, period and amount is correct
- RAS logs, and routes agreement for signature via DocuSign to external institution.
- RAS signs agreement once external institution signs.
- DLC receives fully executed agreement. In most cases, a purchase order is also issued to allow for payment.