Glossary

A new piece of equipment constructed by a department for use in the performance of its research contract or grant within the confines of MIT's facilities.

Physical assets (other than material, special tooling, military property, and special test equipment), including real property and rights therein, buildings, structures, improvements, and plant equipment.

An administrative unit of MIT responsible for design and construction of capital projects, building maintenance, utilities, and custodial services on campus.

The amount at which an asset could be bought or sold in a current transaction between willing parties -- that is, other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the fair market value to be used is the product of the number of trading units of the instrument times the market price per unit.

Term Accounts Payable uses for producing a check on the spot if needed in an emergency.

Federal Acquisition Regulations (FAR) codify uniform policies for acquisition of supplies and services by executive agencies.

Social Security and Medicare payroll taxes are known as FICA taxes, as required by the Federal Insurance Contributions Act.

Finance and Administrative Services, VPF Business Unit that provides the tools, training, and support VPF needs to carry out its work, and supports mechanisms for two-way communication between VPF and the greater MIT community.

A Business Unit of VPF charged with providing broad-based accounting and financial reporting services to the MIT community.

Refers to the period of time during which a DLC is responsible for keeping original documentation. See the MIT Record Retention Policy.

Financial Review and Control is the Institute’s procedure for ensuring that expenses and revenues on cost objects are appropriate, properly documented and reasonable for that cost object. 

Web-based tool used by DLC administrators to perform the monthly cost object review of transactions.

A VPF Business Unit responsible for keeping MIT's financial systems operating and integrated and for protecting the integrity of financial data running on these systems.

The 12 months between one annual settlement of financial accounts and the next; a term used for budgeting and financial reporting. MIT’s fiscal year runs from July 1 through June 30.

Similar to a 1099-MISC Form but for individuals who are non-US citizens or non-resident aliens, which details US-source income that is subject to withholding in a calendar year.

1099-MISC is used to report nonemployee compensation. It is sent to payees (such as independent contractors) who received income over a certain minimum amount during a calendar year, that is deemed taxable by the IRS.

A solicitation which requires a sealed response.

Delivery terms for goods that are shipped under a rate that includes the cost of loading and delivery to and from specified points.

Terms in which the buyer pays the transportation charge and the seller reduces the invoice by a like amount.

Terms in which the seller pays the freight charges of the inland carrier.

An entity consisting of assets, liabilities and fund balance in which the assets and income must be invested or spent according to a designated purpose.

Accounting for individual funds that reports both the balance sheet and the statement of income and expenses. Individual fund accounting is set up to assure donors and others who provide funds for stated purposes that the purpose of the fund is being met.

A collection of SAP cost objects that have been grouped for authorization purposes. Every cost object is assigned to a fund center.

Courses offered by VPF in Accounting, Financial Management, Procurement, and others on a quarterly basis.

Gifts, bequests, and other receipts that have no restrictions as to the expenditure of principal, which the Institute has designated as additions to endowment for the present.