Glossary

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Actual Cash Value

Replacement cost less depreciation.

Additional Insured

An entity, other than a named insured, who is protected under the terms of an insurance policy of the Named Insured. Usually, additional insureds are added by endorsement individually, or on a blanket basis, to protect their interest with respect to a particular situation or specific property. On a liability policy, a lessor may be added as additional insured with respect to premises leased, equipment leased or vehicles leased. On a property policy, a party with financial interest may be added to protect their financial interest in the property insured.

Advance Payment (Procurement)

A deposit made prior to the receipt of goods or services. An advance does not increase the net cost of a product.

Advance Payment (Sponsored Accounts)

An agreement in which the sponsor pays MIT based on a schedule that is not tied to outlay of expense dollars. Arrangements of this type are less common, may be referred to as Letter of Credit, and a process exists within Sponsored Accounting to insure that advance payments are tracked in the same way as cost reimbursable accounts to avoid missed payments.

Agreement

A duly executed and legally binding contract; the act of agreeing.

Approvals

Agreements given by authorized individuals to enable action on behalf of MIT, usually a written signature or certificate-driven approval is required.

Asset

Anything owned by an individual or a business, which has commercial or exchange value. Assets may consist of specific property or claims against others, in contrast to obligations due others. (See also Liabilities).

Authorized Signature

Approval (on an invoice or request for payment) authorizing payment by the VPF. The person approving must be authorized to do so in the Roles Database for the cost object(s) to be charged.

Authorized Total

The maximum funding that is available to be spent in a given time period under a sponsored agreement.

Automated Purchase System

Allows for secure, authorized online requisitioning, purchase order creation and selective invoice processing. MIT uses SAP for this process.

Automobile Physical Damage

Loss of or damage to an automobile. Automobile physical damage coverage is provided by comprehensive and collision coverage in an auto policy. Comprehensive provides coverage for losses caused by events, other than collision, including fire, theft, vandalism, and windstorm. Collision provides coverage for losses arising from a collision with another vehicle or object.

Auxiliary Activities

An MIT term for the operations of Dining, Housing, MIT Press, Technology Review and The Endicott House.