Budget Detail and Payment Provisions



1.                  INVOICING PROCEDURES


A.     For services rendered in accordance with the terms of this Agreement, and upon receipt and approval of the invoices, the Commission agrees to compensate UC for actual expenditures incurred in accordance with the approved budget specified in each WA, which are not attached hereto but are made a part of this Agreement.


Invoices shall be submitted in duplicate not more frequently than monthly to:


California Energy Commission

Accounting Office, MS‑2

1516 9th Street, First Floor

Sacramento, California 95814


B.     Payment Request Format


A request for payment shall consist of, but not be limited to an invoice that references the Agreement number and the WA number being invoiced for the period.


The Commission will accept computer‑generated invoices or the equivalent without backup documentation to verify the expense. Backup documentation shall be retained by UC for audit purposes.


For each WA being invoiced, the request shall consist of, but not be limited to the following:


1.      An invoice that is a summary of actual expenses incurred during the billing period in accordance with the WA for that project as follows:


a)            Date prepared, WA number, and billing period;

b)                  Personal services (Total labor costs including fringe benefits);

c)                  Subcontractor invoices;

d)                  Equipment;

e)                  Travel and per diem;

f)                    Miscellaneous expenses (including materials and supplies);

g)                  Indirect costs;

h)                  By Budget line item (cost component) category, list budgeted amount, amount billed to date, current billing, and balance of funds.


2.      Any progress reports and products that were due during the invoice period, as detailed in the WA.



It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the work identified in Exhibit A, the Commission may either terminate the Agreement, or individual WA issued thereunder, pursuant to the Termination provision, or offer an Agreement amendment or WA amendments to UC to reflect the reduced amount(s).



3.                  TRAVEL AND PER DIEM RATES


A.                UC shall be reimbursed for travel and per diem for trips in accordance with the Regents-approved rates for UC employees. UC shall provide a copy of the current Regents-approved rates and the rates for other Performing Institutions to the Commission upon request.  Travel expenses in excess of Regents-approved rates cannot be reimbursed.  Origination and destination points for calculating travel expenses shall be from the office location where the employees performing on the Agreement are permanently assigned. 


B.                 Each WA shall identify the purpose, the amount and destination for each trip. Those trips identified in the Budget of each WA are considered approved. Travel not listed in the Budget of each WA shall require prior written (including fax or e-mail) authorization from the Commission Project Manager and the Commission Contract Manager.


C.                 Any Department of Energy (DOE) authorized travel shall be reimbursed on the same basis as the DOE approved rates in effect during this Agreement.


D.                UC must document travel expenses in its financial records as follows:


1)                  Expenses must be detailed using the current UC Regents / DOE-approved rates.

2)                  Expenses must be listed by trip, including dates and times of departure and return.

3)                  UC/DOE must retain receipts for travel expenses claimed for audit and verification.



E.                 Travel by employees from other public and/or public educational entities shall be reimbursed in accordance with the rates approved by their governing bodies.

F.                  Trips made by all other parties shall be reimbursed in accordance with the prevailing rates for Non-Represented State of California Employees. The Commission will supply a copy of these rates to UCOP upon request.


4.                  RETENTION: No retention will be withheld under this Agreement.




A.                UC shall use the salary and wage rates commensurate with approved personnel status and level of expertise.


B.                 The indirect cost rate for UC shall not exceed 20% for costs incurred at all UC campuses and Office of the President. This rate shall apply to Modified Total Direct Costs as defined in OMB Circular No. A-21.


C.                An annual WA will be issued for UCOP’s management and administrative duties. Up to ten percent (10%) of the annual approved budget of this Agreement will be allocated for this purpose. Actual costs will be reimbursable.


D.                Each invoice is subject to Commission Contract Manager approval. The Commission Contract Manager will not process any payment request if the following conditions have not been met:


1)            All required deliverables and reports have been submitted and are in accordance with the Standard of Performance clause.

2)                  All appropriate permits or permit waivers from governmental agencies have been issued.


E.                 Payments shall be made to UC for undisputed invoices. An undisputed invoice is an invoice submitted by UC for services rendered and for which additional evidence is not required to determine its validity. UC will be notified via a Dispute Notification Form, within 15 working days of receipt of an invoice, if the Commission disputes the submitted invoice. On any disputed invoice, the Commission shall withhold payment only on that portion of the invoice that is disputed.


F.                 The final invoice must be received by the Commission no later than 60 calendar days after the Agreement termination date.


G.                The Commission will pay for State or local sales or use taxes on the services rendered or equipment, parts or software supplied to the Commission pursuant to this Agreement. The State of California is exempt from Federal excise taxes, and no payment will be made for any taxes levied on employee’s wages.


H.                Advance Payment


1)      In the event that advance payments are necessary, UC shall submit the first invoice for advance payment when each WA is approved. Thereafter, UC shall submit all invoices on a calendar quarter basis.


2)      If the estimated period of performance exceeds ninety (90) days and the estimated cost exceeds $25,000, the Commission shall advance funds incrementally.  In such a case, UC will initially invoice the Commission in an amount sufficient to permit the work to proceed for one hundred and eighty (180) days and thereafter invoice the Commission to maintain approximately a ninety (90) day period that is funded in advance.

3)      The Commission is advancing payment to UC. UC may make advance payments to UC campuses, Federal Laboratories, California State Agencies, the California State University and Community College systems, and Federal Agencies.  UC shall not provide advance payment to any other type of entity performing services without prior written approval from the Commission.


4)      A reconciliation report, reflecting actual costs, shall be submitted every quarter after the initial advance payment. This report is due within 30 days after the end of each quarter. The reconciliation report shall include detail as provided in the Payment Request Format clause.


5)      Other than the initial advance payment, the Commission Contract Manager will approve advance payments provided that the Commission Contract Manager has received and approved the progress reports, and any other deliverables required in the WA for the previous period.


6)      Upon completion or termination of a WA, UC shall refund any excess funds to the Commission within sixty (60) calendar days.


6.                  BUDGET DETAIL


Each WA shall develop a line item budget to include, but not be limited to: personal services, subcontracts, equipment, travel and per diem, miscellaneous expenses (including materials and supplies) and indirect costs. (See Exhibit F for the budget format and B-1 and B-2 for supporting details.)


7.                  ALLOWABLE COSTS


Allowable costs shall be determined in accordance with Office of Management and Budget (OMB) circular No. A-21, “Cost Principles Applicable to Grants, Contracts, and Other Agreements with Institutions of Higher Education,” incorporated by reference as part of this Agreement.