Title:

Sponsored Research – Nonstandard Financial Terms and Conditions

Publication date:

2/28/2024

Effective date:

6/29/2021

BRIEF

Policy Summary

This policy defines the guidelines for approval of nonstandard financial terms and conditions for Sponsored Research agreements to ensure all stakeholders agree that sponsors' requested terms are reasonable and practical to execute. Nonstandard financial terms and conditions are considered only when specifically requested by a sponsor.
Most nonstandard financial terms are associated with non-federal awards. However, there are instances when federal sponsors require additional processing, and these instances are governed by this policy.

Who Should Read This Policy

Any Lawrence Berkeley National Laboratory (Berkeley Lab) employee who works under a Sponsored Research agreement with a sponsor who requires nonstandard financial terms and conditions.

To Read the Full Policy, Go To:

The POLICY tab of this wiki page

Contact Information

Reimbursable Budget Manager

Title:

Sponsored Research – Nonstandard Financial Terms and Conditions

Publication date:

2/28/2024

Effective date:

6/29/2021

POLICY

A. Purpose

The purpose of this policy is to define the guidelines for approval of nonstandard financial terms and conditions for Sponsored Research agreements to ensure all stakeholders agree that sponsors' requested terms are reasonable and practical to execute.

B. Persons Affected

Any Lawrence Berkeley National Laboratory (Berkeley Lab) employee who works under a Sponsored Research agreement with a sponsor who requires nonstandard financial terms and conditions.

C. Exceptions

None

D. Policy Statement

  1. Nonstandard financial terms and conditions are considered only when specifically requested by a sponsor. Most nonstandard financial terms and conditions are associated with non-federal awards. However, there are instances when federal sponsors require additional processing, and these instances are governed by this policy.
  2. The following items are considered Berkeley Lab's standard requirements for non-federal Sponsored Research agreements:
    1. Receipt of an advance payment sufficient for maintaining a positive cash balance throughout the life of the award (e.g., typically the three highest months of costs) prior to the start of work on the award (see the Advance Payments for Sponsored Research Projects with Non-Federal Sponsors policy).
    2. Full advance for agreements that have an estimated cost of $25,000 or less or that have a completed performance period of 90 days or less.
    3. Monthly invoices with payment due upon receipt of the invoice.
  3. If a sponsor requests a substantive change to the standard requirements, a Nonstandard Financial Terms (NSFT) for Sponsored Research Request should be generated and routed for approval in the Electronic System for Research Administration (eSRA) prior to the execution of the agreement as diagrammed below.
     
  4. Some examples that could trigger an NSFT request include but are not limited to the following:
    1. Special handling terms, such as:
      1. Electronic billing, including an uploaded invoice or file to the sponsor's payment system.
      2. E-mailed or faxed invoices to multiple locations or recipients, or invoices submitted in duplicate.
      3. The use of the sponsor's special invoice template or format.
    2. Special billing or payment periods, such as scheduled billings, manual billing in foreign currency, or payment terms rather than due upon receipt.
    3. Monthly or other periodic invoices with additional requirements, such as:
      1. Invoice certifications and/or letters of truth and accuracy.
      2. Invoices accompanied by financial reports matching scientific tasks or milestones to invoice costs.
      3. Inclusion of spend plans.
      4. Submission of the final invoice and/or financial report no later than 60 days after the contract end date.
      5. Budgets or receipts for items purchased.
      6. Payment withholds (retention) until receipt of final reports or task completion or award close out.
    4. Advances insufficient to maintain a positive cash balance.
    5. Waiver of advance requirement for non-federal awards excluding approved WN funded awards (see the WN Funding Requests policy).
    6. Contractual clauses from the direct sponsor with specific restrictions will be flowed down to subcontractors (i.e., max rates, spending requirements, etc.).

E. Roles and Responsibilities

E.1. Inclusion of Nonstandard Financial Terms in Sponsored Research Agreements (negotiation actions to be completed prior to contract execution)

Role

Responsibility

Strategic Partnerships Office — Contracts Officer (SPO)

  • Consults with the division Resource Analyst (RA) and Reimbursable Group — Contract Accounting (RG-CA) to review the special handling terms and perform a risk assessment and identify any issues
  • Submits the sponsor's proposed terms NSFT request in eSRA with the agreement language and proposal review to RG-CA through eSRA for review and comment.
  • Secures required approvals from the Controller prior to executing the agreement.

Reimbursable Group — Contract Accounting (RG-CA)

  • Consults with the CO and RA to review the special handling terms and perform a risk assessment and identify any issues.
  • Within two business days from receipt of the nonstandard financial terms request in eSRA, reviews the financial terms, identifies accommodations required to meet the terms, and identifies potential risks, including impacts to cash status, prior history with the sponsor, and delinquent payment issues.
  • Reviews the terms on the NSFT request in eSRA and provides approval as appropriate.

Budget Office (BO)

  • Reviews the terms on the NSFT request in eSRA and provides approval as appropriate.
  • Evaluates whether bridge funding is appropriate to meet the identified accommodation.

Division Resource Analyst (RA)

  • Consults with the CO and RG-CA to review the special handling terms and perform a risk assessment and identify any issues.
  • Evaluates the bridge funding usage and the administrative effort needed to meet identified accommodations.
  • Confirms with the principal investigator that the terms are acceptable.
  • Confirms with the division director or designee that all nonstandard financial terms identified can be accommodated.
  • Reviews the terms on the NSFT request in eSRA and provides approval.
  • As necessary, assists PI with ensuring throughout the life of the project that all nonstandard financial terms are met.

Division Director (or designee — limited to Deputy Division Director or Business Manager)

  • Alerts the CO, RA, and Budget Office immediately when nonstandard financial terms are identified in the proposal/award.
  • Ensures terms are in the best interest of the Laboratory given required resources.
  • Agrees to provide sponsors' requested reporting/ certification/documentation requirements, if applicable. Approves the division's administrative effort to accommodate terms.
  • Recognizes the risk that any unallowable or uncollected costs from a default would be funded out of appropriate alternative divisional funds or a fee, but the best interest of the Laboratory is still to assume the risk.
  • Reviews the terms on the NSFT request in eSRA and provides approval.
  • Ensures throughout the life of the project that all nonstandard financial terms are met.

Controller (or designee)

  • Reviews the terms on the NSFT request in eSRA and provides approval.

Principal Investigator

  • Responsible for alerting the CO, RA, and Budget Office immediately when nonstandard financial terms are identified in the proposal/award.
  • Ensures that technical reports are submitted to the sponsor on time.
  • Ensures throughout the life of the project that all nonstandard financial terms are met.


E.2 For Signed Reimbursable Agreements with Approved Nonstandard Financial Terms (award monitoring responsibility)

Role

Responsibility

Strategic Partnerships Office — SPO

  • In the event the sponsor is late with the payment remittance due to the special financial terms, assists Contract Accounting with payment resolution, if requested.
  • Notifies RG-CA through the Help Desk ([email protected]) prior to renegotiating contract terms (e.g., funding increased or reduced or POP changed) for those receivables reported delinquent by RG-CA.
  • Ensures that all billing information, including name, address, phone and fax numbers, e-mail, and sponsor's reference number of the financial payment contact, is accurate and completed on the contract at the time of contract signature.
  • Sets up the non-federal award as a scheduled advance if the award proposes scheduled billing.
  • Sets up scheduled billing in the contract to coincide with the financial report schedule or with the sponsor's payment calendar, if requested by the sponsor. Due dates are required when the sponsor requests scheduled billing.
  • If the award is terminated prior to the contractual expiration date, amends the award end date in eSRA.

Division Resource Analyst (RA)

  • Prepares the financial reports (e.g., quarterly spend plans).
  • Assists with collecting the appropriate divisional approval on all letters of certification or truth on the schedule outlined by the sponsor (see Sponsored Research Awards – Financial Certifications).
  • Submits certifications that require Budget Office input through the Help Desk ([email protected]) by the tenth business day of the month. If the Division RA chooses to send the invoice directly, he or she will copy the RG-CA via ARHelp when the invoice is sent to the sponsor.
  • In the event that the sponsor is late with the payment remittance as a result of the nonstandard financial terms, assists RG-CA with payment resolution.
  • As necessary, assists PI with ensuring throughout the life of the project that all nonstandard financial terms are met.

Principal Investigator

  • Ensures that technical reports are submitted to the sponsor on time.
  • Ensures throughout the life of the project that all nonstandard financial terms are met.

Reimbursable Group — Contract Accounting (RG-CA)

  • Assists the RA and CO with payment resolution with the sponsor if the sponsor is late with payment remittance per the nonstandard financial terms.
  • Issues special invoices with required backup to the sponsor after receipt of division-prepared reports unless the division requests that RA send out the invoices.
  • Sets the advance to be drawn down first if the award uses scheduled billing or payment terms with partial advance.
  • If the award is terminated prior to the contractual expiration date, cancels the scheduled billing, reviews the account activities, and applies the advance balance against open invoices, if applicable.

Budget Office (BO)

  • Adds bridge funding to award in the funding system, based on need of award and contract end date.

F. Definitions/Acronyms

Term

Definition

Sponsored Research

The performance of work for non-Department of Energy (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 481.1D.

G. Recordkeeping Requirements

None

H. Implementing Documents

Document Number

Title

Type

11.02.010.000

Advance Payments for Sponsored Research Projects with Non-Federal Sponsors

Policy

11.01.001.003

Reprint Invoice Instructions

Procedure

I. Contact Information

Reimbursable Budget Manager

J. Revision History

Date

Revision

By Whom

Revision Description

Section(s) Affected

Change Type

1/2/2012

1

M. Mock

Re-format for wiki

All

Minor

4/22/2019

1.1

M. Fix

Clarify R&R; update for SPP and eSRA

All

Minor

6/29/2021

1.2

S. Bennett

Periodic review; minor clarifications

All

Minor

2/28/2024

1.3

S. Bennett

Periodic review; minor clarifications

All

Minor

DOCUMENT INFORMATION

Title:

Sponsored Research – Nonstandard Financial Terms and Conditions

Document number

11.01.001.000

Revision number

1.3

Publication date:

2/28/2024

Effective date:

6/29/2021

Next review date:

1/31/2027

Policy Area:

Budget

RPM Section (home)

Financial Management

RPM Section (cross-reference)

11.09

Functional Division

OCFO

Prior reference information (optional)

RPM, Chapter 11, Section 11.09

Source Requirements Documents

Implementing Documents

Document Number

Title

Type

11.02.010.000

Advance Payments for Sponsored Research Projects with Non-Federal Sponsors

Policy

11.01.001.003

Reprint Invoice Instructions

Procedure

Other References

Document Number

Title

Type

11.02.001.000

Bridge Funding for Sponsored Research Projects

Policy

11.01.009.000

Sponsored Research Awards — Financial Certifications

Policy

11.02.007.000

WN Funding Requests

Policy

ADDITIONAL INFORMATION

Title:

Sponsored Research – Nonstandard Financial Terms and Conditions

Document number

11.01.001.000

Revision number

1.3

Publication date:

2/28/2024

Effective date:

6/29/2021

Next review date:

1/31/2027

Policy Area:

Budget

RPM Section (home)

Financial Management

RPM Section (cross-reference)

11.09

Functional Division

OCFO

Author name/contact info

Reimbursable Budget Manager



Revision 0 publication date

3/10/2010

Retirement date

n/a

Prior reference information (optional)

RPM, Chapter 11, Section 11.09



Inputs from more than one Functional Area?

No

List additional Functional Areas & contacts




Inputs from more than one Policy Area?

No

List additional Policy Areas & contacts




30-day notification needed?

No

30-day start date

n/a

30-day end date

n/a



LDAP protected?

No



Need TABL reminders?

No

Frequency

n/a

Brief reminder text:

n/a



Approval Sheet for this revision received (date) [Note: author is responsible]


Key labels/tags:

  • Financial terms and conditions, nonstandard, Sponsored Research, Work for Others reimbursable work cash management, Sponsored Research agreements, WFO, NSFT

New terms that need to be added to Glossary/Acronym list:

  • (list items not found and context (Policy Area name) – full definition would be included in Policy)

Implementing Documents restricted to department/functional use

(optional – these will be used for tracing between requirements and associated documents)

Document Number

Title





Side bars:
Side bar 1 location (cite by Policy Section # - for example: Section D.2.a)

Sidebar 1 text:

Sidebar 2 location

Sidebar 2 text:

Sidebar 3 location

Sidebar 3 text