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

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:

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

G. Recordkeeping Requirements

None

H. Implementing Documents

I. Contact Information

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

J. Revision History

DOCUMENT INFORMATION

Source Requirements Documents

• DOE Order 481.1C
• DOE Accounting Handbook, Chapter 13
• Financial Practices and Procedures Relating to UC/DOE Contract Funds, University of California Laboratory Administration Office (November 2001) Section 3.1 (available in the Budget Office)

Implementing Documents

Other References

• DOE Guide 481.1-1