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.
- DLCI or external institution sends completed incoming billing agreement to salarybillingagreements@mit.edu. (If funding a student through an NIH training grant, use the training billing agreement instead.)
- Attach one Billing Agreement per email request for tracking purposes.
- 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)
- Is the Billing Agreement under a NIH prime award for faculty salary where the salary cap would apply?
- RAS verifies with DLCI 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 DLCI.
- DLCI 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.
Because these are not research accounts, vacation accrual should not be included in the budget. Indirect costs are not included on Billing Agreements.
In order to close out your billing agreement, please contact vpf-cost-objects@mit.edu. This should be requested as soon as all charges have been posted, but no later than 60 days after expiration.
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
- DLCI or external institution sends completed outgoing billing agreement to salarybillingagreements@mit.edu. (If funding a student through an NIH training grant, use the training billing agreement instead.)
- Attach one Billing Agreement per email request for tracking purposes.
- RAS verifies with DLCI 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.
- DLCI receives fully executed agreement. In most cases, the DLCI may request a purchase order to allow for payment.