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REQUIREMENTS AND POLICIES MANUAL

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Bridge Funding

Title:

Bridge Funding

Publication date:

3/25/2013

Effective date:

12/31/2010

BRIEF

Policy Summary

Bridge funds are limited University of California (UC) funds that are used to temporarily cover funding requirements under certain conditions. UC authorizes Berkeley Lab to use these funds to cover Work for Others (WFO) costs under certain conditions.
Bridge funding does not serve as a substitute for appropriate cash and funding management. It does allow for the start or continuation of research due to various sponsor-timing issues. Agreements with sponsors that may represent a risk of becoming uncollectible are not candidates for bridge funding.

Who Should Read This Policy

All employees with financial responsibilities

To Read the Full Policy, Go To:

The POLICY tab on this wiki page

Contact Information

WFO Analyst, Budget Office
Office of Sponsored Projects and Industry Partnerships (OSPIP) Manager
Budget Officer

Title:

Bridge Funding

Publication date:

3/25/2013

Effective date:

12/31/2010

POLICY

A. Purpose

This policy defines the guidelines for the appropriate application and use of bridge funding to cover WFO costs at Lawrence Berkeley National Laboratory (Berkeley Lab).

B. Persons Affected

All employees with financial responsibilities who use, manage, or report on bridge funding at Berkeley Lab

C. Exceptions

None

D. Policy Statement

Bridge funding refers to limited University of California (UC) funds that are used to temporarily cover funding requirements under certain conditions. UC authorizes Berkeley Lab to use these funds to cover Work for Others (WFO) costs when:

  • There is assurance from the federal or Department of Energy (DOE) integrated contractor sponsor that additional funding is forthcoming on a continuing award (cannot be used for new awards), or
  • A nonfederal sponsor has not yet provided advance funding and it is in the best interest of Berkeley Lab to advance the funds to begin or continue an award.


Bridge funding is not intended to serve as a substitute for appropriate cash and funding management. However, it does allow for the start or continuation of research due to various sponsor-timing issues. Agreements with sponsors that may represent a risk of becoming uncollectible are not candidates for bridge funding.

This policy limits requests to less than $250,000, which may be used for no more than 90 days. If additional time and/or funds are needed, a new request is required. Due to unique scientific and financial reporting requirements, bridge funding requests are not required for agreements under the UC Office of the President (UCOP) Special Research Program pertaining to the final 20% advance withhold. The Office of Sponsored Projects and Industry Partnerships (OSPIP) will specify the future bridge funding need in the initial Sponsored Project Account Authorization (SPAA). See UCOP Special Research Programs for more information.

The use of UC funds does not relieve Berkeley Lab of its responsibility to comply with all other DOE requirements for WFO contracts. Any uncollectible receivables resulting from bridge funding activity are ultimately the liability of UC. However, if requested bridge funding is not reimbursed, it is the responsibility of the division director (of the requesting division) to propose appropriate alternate non-DOE sources of divisional funding for review (i.e., gifts) before use of Berkeley Lab UC contingency funding is considered. Uncollectible amounts that cannot be funded from divisional funding sources will be charged to the UC contract fee, thereby reducing the following year's allocation of Contractor Supporting Research (CSR) funding to Berkeley Lab.

Sponsor Criteria

The bridge funding request may be submitted for other federal agencies, state and local governments, public or private entities, and DOE integrated contractors.

  • Federal Entities and DOE Integrated Contractors: For federal entities and DOE integrated contactors, bridge funding may only be used to continue an award when there is assurance from the sponsor that additional funding is forthcoming. It may not be used for a new award (research) that has not been previously funded by the same sponsor.
  • Nonfederal Entities: For nonfederal entities, bridge funding may be used to cover short-term advance requirements for new or continuing awards. For a new award, a written reimbursable agreement, as defined in DOE Order 481.1, must be accepted prior to the allocation of bridge funds. For a continuing award, bridge funding may be used when there is assurance from the sponsor that additional funding is forthcoming.

Approval Criteria

Approval will be based on fund availability, institutional risk, and institutional need. As bridge funds are limited and may not be available in a particular month, costs should not be incurred until approved bridge funding is in place. Requests should be the minimum amount needed to begin and/or maintain the project. Requests should be submitted to OSPIP 60 days prior to the accounting period in which the funding will be needed. If the request is for a signed new or continuing award that is awaiting advance payment, submit the request directly to the Budget Office. Include a copy of the signed contract/amendment and advance invoice with the request.

For continuing awards, the bridge funding request must include written confirmation from the sponsor's contract officer or authorized administrative official confirming the intent to continue the research project and reimburse Berkeley Lab for costs incurred while on bridge funding.

In addition to the standard approvals, any bridge funding request exceeding $250,000 or for a period greater than 90 days is an exception to policy and must be signed by the OSPIP Manager. Additionally, an incremental monthly spending forecast must be provided by the requestor and accompany the request.
                                                   Example: Month 1 — $100,000
                                                                   Month 2 — $75,000
                                                                   Month 3 — $150,000
Additional processing time is required for requests that exceed the $250,000 or 90-day thresholds.

Bridge funding must expire on the specified end date or when the sponsor's funding has been received, whichever is sooner. If additional time and/or funds are needed, a new request is required. The request must include the following signatures before bridge funds are allocated:

SIGNER

PURPOSE OF SIGNATURE

Principal Investigator

States that there is no other method to deal with funding interruption and agrees to comply with all bridge funding control requirements

Division Director
(or designate – limited to Deputy Division Director or Business Manager)

Recognizes risk that any unallowable or uncollected costs from default will be funded out of appropriate alternative divisional funds or Berkeley Lab CSR funds, but that it is in the best interest of Berkeley Lab to assume the risk

OSPIP Contracts Officer

Certifies compliance with bridge funding and OSPIP policies

OSPIP Manager

Reviews requests that are over $250,000 or longer than 90 days, or other uses of bridge funds that may be an exception to the policy, and provides contractual risk assessment

Budget Office Analyst

Reviews and ensures that supporting documentation is appropriate. In consultation with Accounts Receivable, reviews sponsor's payment history and verifies that sponsor has not defaulted payment, resulting in collection by the U.S. Treasury.

Chief Financial Officer
(or designate)

Approves release of bridge funding

Procedures

  • Requestors (divisions) complete a Bridge Funding Request Form. The form must be signed by the Principal Investigator and Division Director and submitted to the division's respective OSPIP Contracts Officer for review, with a copy sent to the Budget Office. If the request is for a signed new or continuing award awaiting advance payment, requesters should submit the request directly to the Budget Office. The request must include a copy of the signed contract/amendment and advance invoice. If sent by e-mail, the award number should appear in the subject line. OSPIP must receive the request 60 days prior to the accounting period to which the funding will be needed (e.g., if funding is required for December 1, the request must be submitted to OSPIP by October 1).
  • The OSPIP Contracts Officer secures funding verification from the sponsor and certifies that the criteria and documentation are appropriate. The request is completed, signed, and forwarded to the Budget Office Analyst, with a copy sent to the division, no less than 10 days before Day Zero of the accounting period prior to which funding will be needed (e.g., if funding is required for December 1, the request must be submitted to the Budget Office Analyst no less than 10 days before Day Zero of November's close).
  • The Budget Office determines whether bridge funds are available and reviews the supporting documentation. In consultation with Accounts Receivable, the Budget Office reviews the sponsor's payment history and verifies that the sponsor has not defaulted payment, resulting in collection by the U.S. Treasury. The requestor and/or OSPIP will be contacted if there are any issues. The Budget Office secures the Chief Financial Officer's (CFO's) approval to release bridge funding. Notification of approval and a copy of the request will be sent to the division and OSPIP no less than one day before Day Zero of the accounting period prior to which funding will be needed.
  • Assuming that all other DOE and UC requirements have been met (Human Subjects approval, NEPA/CEQA); OSPIP enters the approved bridge funding information into the Research Administration, Proposal/Project Information Database (RAPID) and issues the SPAA.


High-Level Process Flow Diagram

E. Roles and Responsibilities

Managers, supervisors, and employees have the responsibility to adhere to the provisions of this policy.

F. Definitions/Acronyms

Term

Definition

CSR

Contractor Supporting Research

DOE Integrated Contractor

A contractor who has a Management and Operating (M&O), facilities-management, site-integrating, or other major contract with DOE

Federal Sponsor

Any entity that is part of the federal government

Reimbursable Agreement

A written agreement to perform work or provide a service for another federal agency or non-federal customer

Requestor

A Principal Investigator or designated Resource Analyst

Research Administration, Proposal/Project Information Database (RAPID)

Berkeley Lab's implementation of the PeopleSoft Grants system

Sponsored Project Award Authorization (SPAA)

A report from the RAPID system, issued by OSPIP, that authorizes initial award and post-award administrative and funding actions

Work for Others (WFO)

The performance of work for non-DOE entities by DOE/contractor personnel and/or the utilization of DOE facilities that are not directly funded by DOE appropriations. Work is in accordance with DOE Order 481.1C.

G. Recordkeeping Requirements

None

H. Implementing Documents

Document number

Title

Type

11.02.001.001

UCOP Special Research Programs

Guidance

11.02.001.002

Bridge Funding Request form

Form

11.02.009.000

Interlocation Appointments (ILAs) - Financial Management

Policy

11.02.010.000

Advance Payments for Nonfederal Work for Others (WFO) Sponsors

Policy

11.02.006.000

Stop Work Process for Funds Control Compliance

Policy

I. Contact Information

WFO Analyst, Budget Office
Office of Sponsored Projects and Industry Partnerships (OSPIP) Manager
Budget Officer

J. Revision History

Date

Revision

By whom

Revision Description

Section(s) affected

Change Type

3/25/2013

1.1

Moore

Review completed 12/31/2012, no changes

Pub & next review dates

Minor

1/2/2012

1

Moore

Reformat for wiki

All

Minor

DOCUMENT INFORMATION

Title:

Bridge Funding

Document number

11.02.001.000

Revision number

1.1

Publication date:

3/25/2013

Effective date:

12/31/2010

Next review date:

12/31/2014

Policy Area:

Budget

RPM Section (home)

Financial Management

RPM Section (cross-reference)

Section 11.19

Functional Division

OCFO

Prior reference information (optional)

 

Source Requirements Documents

Implementing Documents

Document number

Title

Type

11.02.001.001

UCOP Special Research Programs

Guidance

11.02.001.002

Bridge Funding Request form

Form

11.02.009.000

Interlocation Appointments (ILAs) - Financial Management

Policy

11.02.010.000

Advance Payments for Nonfederal Work for Others (WFO) Sponsors

Policy

11.02.006.000

Stop Work Process for Funds Control Compliance

Policy

Other References

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