Glossary


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Cancellation

This formal process needs to be followed when the actual content of an order is changed, that is, the order is to be partially or completely canceled with the mutual agreement of the vendor. An example would be when a vendor cannot ship all or a portion of the goods or services listed on the purchase order. In order to request this formal cancellation process, an approved requisition must be forwarded to Procurement (NE49-4122) with reference to the original purchase order number, vendor name, the nature of the change necessary for cancellation, and documentation that the vendor agrees with the cancellation.

Carnet

A customs document allowing duty-free passage for certain goods across international borders

Central MIT Controls

Internal controls put in place and maintained by MIT central offices through manual review as well as through features of the Institute’s electronic systems. The purpose of these controls is to maintain the accuracy and completeness of MIT records.

Certificate of Insurance

Proof of insurance coverage issued by a broker or insurance carrier. Reflects line(s) of coverage (e.g., workers' comp, commercial auto, general liability, etc.), policy number(s), limits of insurance, deductible(s), and special conditions (additional insured, loss payee clause, etc.).

Closeout

This informal process is used whenever you have an open dollar commitment on a purchase order that has been completely received and paid and is not the result of actual content change. This open commitment is usually the result of minor variations in the pricing of the items or processing of the invoices or a consultant not using all of the hours originally estimated. Closeout liquidation of a purchase order can be easily requested by simply sending an email to Procurement with reference to the original purchase order number and vendor name. Please note that this type of closeout should not be confused with the formal closeout procedure required for subcontracts.

Closeout of Purchase Order Commitment

The process used to eliminate the remaining dollar commitment on a purchase order after the goods have been completely received and paid. Email to: pocloseout@mit.edu.

Code of Ethics

A system of appropriate conduct agreed to and maintained within a community or business environment.

Coeus

An MIT-created database software designed to facilitate sponsored program award acquisition and administration.

Commitments

On the summary statement are either outstanding purchase orders with balances or manual reservations – a feature that enables you to commit funds when you are not ready to issue a purchase order or when a purchase order is not appropriate.

Complex Contracts

Include agreements for major equipment, professional or consultant services, independent contractors, software licenses, research and development, or any other area where the terms and conditions of an agreement are more rigorous than standard commercial terms and conditions.

Comprehensive General Liability

An insurance policy designed to cover bodily injury or property damage claims and related expenses that the insured may become legally obligated to pay, as a result of the insured's operations. The form is "comprehensive" because it covers all of an insured's operations and incorporates a number of individual coverages (premises coverage, products liability, contractual liability, etc.) into one form.

Consultants

Individual(s) providing specialized professional services for a set price over a specific period of time or until completion of explicit deliverable results.

Contract

Any written instrument or electronic document containing the elements of offer, acceptance, and consideration to which an agency is a party.

Contract Administration (Procurement)

Is the process of executing the specific terms of an agreement. These are steps that must be taken to assure compliance with the contract; e.g., timely delivery, acceptance, payment, closing contract, etc.

Contract Administration (Sponsored Accounting)

Is the process of negotiating and maintaining an effective working relationship with a given sponsor in keeping with terms of the written agreement as maintained by the Office of Sponsored Programs in Coeus.

Cost Center

Is a type of cost object in SAP.

Cost Object

A seven digit number used to categorize the costs and revenues associated with a particular project or activity at MIT.

Costing Sheet

A calculation that enables indirect costs to be associated with appropriate direct costs.

Current Funds

Expendable resources held for meeting current restricted or unrestricted expenses.

Customs

Government agency that monitors compliance and enforces federal rules regarding the import and export of goods.