Billing Agreements

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Billing Agreement Graphic

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.

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 Process

RAS has implemented a new process for Salary Billing Agreements with an effective date of July 1, 2022 or later.

  1. 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.)
  2. RAS verifies with DLC effort, period and amount is correct
  3. RAS logs and routes agreement for signature via DocuSign to external institution.
  4. RAS administration signs agreement once external institution signs
  5. RAS sends request to VPF to establish individual account to be charged by the DLC.
  6. 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: 

  1. 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.)
  2. RAS verifies with DLC effort, period and amount is correct
  3. RAS logs, and routes agreement for signature via DocuSign to external institution.
  4. RAS signs agreement once external institution signs.
  5. DLC receives fully executed agreement. In most cases, a purchase order is also issued to allow for payment.