Billing Agreements

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
Billing Image
  • 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

  • Personnel from MIT
  • No work done at MIT
  • Funds are granted to another institution
  • No technical or financial reporting requirements

  • Personnel from another institution
  • All work done at MIT
  • Funds are granted to MIT
  • No technical or financial reporting requirements

  • Non-MIT Personnel working at another institution, or
  • Technical and financial reporting requirements, or
  • Reimbursement for other budget items besides stipend/tuition/salary *

* 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.