Glossary

This is a formal process which needs to be followed when the actual content of an order is changed, that is, the order is partially or completely canceled with the mutual agreement of the vendor. A common reason for cancellation is when a vendor cannot ship all or a portion of the goods or services listed on the purchase order.

Institute employee whose name appears on the MIT Travel Card and who is accountable for all charges made with the card.

An international customs document that simplifies customs procedures for the temporary importation/exportation of various types of goods. Carnets facilitate international business by avoiding extensive customs procedures, eliminate payment of duties and value-added taxes, and replace the purchase of temporary import bonds.

The net positive variance of budget versus actual expense in all eligible GIB cost centers.

See Accounts Receivable.

MIT uses CCC Verify, a safe and secure service of Experian to handle employment and salary verification for employees and for commercial verifiers needing to verify MIT employment and income. Link

Internal controls put in place and maintained by MIT’s central offices to maintain accuracy and completeness of the Institute's financial records.

Proof of insurance coverage issued by a broker or insurance carrier that lists coverage (e.g., workers’ comp, commercial auto, general liability), policy number(s), limits of insurance, deductible(s), and special conditions.

A written modification to a contract or purchase order or other agreement.

Guidelines that eliminate the requirement for checking off detailed transactions on printed detail transaction reports, which can instead be done online using the Financial Review and Control tools.

This informal process is used whenever there is 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. This type of closeout should not be confused with the formal closeout procedure required for subcontracts.

The process used to eliminate the remaining dollar commitment on a purchase order after the goods have been completely received and paid.

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

Mechanism by which a U.S.-certified air carrier leases space on an aircraft of a foreign air carrier.

Also referred to as Kuali Coeus, MIT’s electronic system used to standardize the administrative processes for sponsored research. Coeus is a cradle-to-grave award management system that is designed to assist the research community in proposal development and tracking, and award acquisition and management.

A reporting tool from IBM which serves as the primary reporting platform for retrieving data from IS&T’s Data Warehouse. This web-based tool allows users to create reports and dashboards.

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 called comprehensive because it covers all of an insured’s operations and incorporates a number of individual coverages (premises coverage, products liability, and contractual liability) into one form.

Outstanding purchase orders with balances or manual reservations. This feature on the Summary Statement enables a DLC to commit funds before it is ready to issue a purchase order or when a purchase order is not appropriate.

A transportable article of trade or commerce that can be bartered or sold.

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.

Part of a unit of equipment that cannot be used independently of the remaining item of equipment and cannot function separately apart from the main unit to which it is attached. Replacement parts are not considered equipment.

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 called comprehensive because it covers all of an insured's operations and incorporates a number of individual coverages (premises coverage, products liability, and contractual liability) into one form.

Machines costing less than $5,000 and are used to acquire, store, analyze, process and publish data and other information electronically, including accessories for printing, transmitting, receiving, or storing electronic information. Under a federal award, computing devices can be direct charged if they are essential and allocable, even if they are not solely dedicated to the performance of the federal award.

MIT's online expense reporting and travel booking tool.

Something of value given or done as recompense that is exchanged by two parties; that which binds a contract.

An Individual providing specialized professional services for a set price over a specific period of time, or upon completion of explicit deliverable results.

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

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 Research Administration Services (RAS) in Kuali Coeus.

A person who agrees to furnish goods or services for a certain price; may be a prime contractor or subcontractor.

A VPF Business Unit that advises, reviews, drafts, negotiates and executes commercial agreements for the procurement of goods and services at the Institute

A type of cost object in SAP.

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

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

See Buy-to-Pay (B2P).

Expendable resources held for meeting current restricted or unrestricted expenses.

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

A tariff or tax on the importation of goods. Commercial goods not yet cleared through Customs are held in a customs area, often called a bonded store, until processed.