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

 


Incoming Billing Agreements - Standard

Incoming Billing Agreement DOCX]

  • Need proposal routed in KC with brief SOW and budget
  • OSP 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]

  • No proposal is needed.
  • Personnel from another institution will need:
    • Appointment at MIT to use our facilities
    • To sign our IPIA
  • OSP assists DLC in drafting and OSP 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

OSP should check internal Broad Billing Agreement Guidance for more information.