Glossary

The act of accepting by an authorized representative; an indication of a willingness to pay; the assumption of a legal obligation by a party to the terms and conditions of a contract.

An item which facilitates or enhances the operation of plant equipment but which is not essential for its operation, such as remote control devices.

Accounts Payable, a VPF Business Unit responsible for paying the Institute's bills for goods and services.

Accounts Receivable, a VPF Business Unit that manages billing and collecting for MIT and supports internal departments and groups who handle cash and check transactions.

Replacement cost less depreciation.

An addition or supplement to a document; e.g., items or information added to a procurement document.

An entity, other than a named insured, who is protected under the terms of an insurance policy of the named insured. Additional insureds are usually 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 it's financial interest in the property insured.

A job position held in many departments, labs, and centers, an AO is responsible for the general administrative functions of their DLCI and is a key contact with central administrative areas including MIT Human Resources, VPF, IS&T, and others.

As of summer 2023, AO positions across the Institute have changed to Director, Administration and Finance (DAF).

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

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, and may be referred to as Letter of Credit. VPF Sponsored Accounting insures that advance payments are tracked in the same way as cost reimbursable accounts to avoid missed payments.

A term of payment that refers to the length of time between the receipt of order and when the payment is due.

Amounts held as custodian or fiscal agent for affiliates such as alumni and student organizations.

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

A cost that is allocable, reasonable, in accordance with Generally Accepted Accounting Principles (GAAP), and in accordance with the terms of the contract.

Authorized transfer of resources between fund groups.

Agreements given by authorized individuals to enable action on behalf of MIT usually provided as a written signature or electronically through a certificate based process.

The individual responsible for approving all charges against the cost object associated with the MIT Travel Card.

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).

MIT’s self-service one-stop administrative systems hub, Atlas provides an entry point for accessing the Institute’s financial systems and tools. Employees can use Atlas for a wide range of financial transactions including updating personal information and benefits, downloading paystubs and W-2s, setting up direct deposit, filing or approving time sheets, setting tax withholding allowances, and requesting and tracking reimbursements.

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

In Approval on a contract or purchase order (PO) by an individual with delegated authority for the amount of the contract/PO.

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

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

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 an event, other than a collision, including fire, theft, vandalism, and windstorm. Collision provides coverage for losses arising from a collision with another vehicle or object.

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

An item without which the basic unit of plant equipment cannot operate, such as a motor for a pump or a machine tool.

Supporting documentation that is attached to a Request for Payment or invoice for approval by Accounts Payable, such as tax forms, independent contractor information, selection of source/price justification form, or statement of work.

An itemized statement that lists the total assets and total liabilities of a business to portray its net worth at a given moment in time. Invested assets are reported at market value while other assets are valued at amortized cost. (See also Statement of Financial Position.)

An authorized credit history disclosure allowing credit evaluation.

A desired outcome in the acquisition of all goods and services. Price must be one evaluation criteria when acquiring good and services, however other criteria may include, but is not limited to environmental considerations, quality, and vendor performance.

A written receipt or contract, given by a carrier, showing a list of goods delivered to it for transportation. The straight bill of lading is a contract which provides for direct shipment to a consignee. The order bill of lading is negotiable; it enables a shipper to collect for a shipment before it reaches its destination (this is done by sending the original bill of lading with a draft drawn on the consignee through a bank). When the consignee receives the lading indicating that payment has been made, the lading will be surrendered to the carrier’s agent, and the carrier will then ship the goods to the consignee, and the bill of lading will be surrendered to the carrier. Note: Shippers frequently consign shipments to themselves on order bills of lading so that delivery is made only upon the shipper’s order; the person or firm to be notified upon arrival of the shipment at destination must be designated.

A contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. The contract generally establishes prices, terms, conditions and the period covered (no quantities are specified). Goods must be shipped as required by the purchaser.

Liability for injury to the body of a person, including sickness, disease, or death.

The initial cost of investment or other asset as recorded. Bonds purchased at other than maturity value have a book value of amortized cost. The cost of real estate investments includes both the original cost and the capitalized cost of any improvements. The book value of gifts and other receipts is the cash or fair market value at the time of receipt.

Represent mortgage bonds and notes payable to external agencies, institutions and others.

An ad hoc querying software for creating reports from IS&T’s Data Warehouse available only to members of the MIT community. BrioQuery is still in use at MIT but is no longer supported by the company that acquired it from Brio Software. Link.

A business that carries no inventory and that has no written ongoing agreement with any manufacturer or manufacturer's authorized distributor to sell the products of the manufacturer.

Budget and Financial Analysis, a VPF Business Unit that administers the annual budget process for the Institute and provides financial information and analysis to MIT's senior leadership.

A contractor, subcontractor, supplier, consultant, or provider of technical, administrative, or physical services organized as a sole proprietorship, partnership, association, corporation, or other entity formed for the purpose of doing business for profit.

A cloud-based integrated platform for creating and approving requisitions/purchase orders and invoices. (Also referred to by name of application provider, Coupa.)

The literal translation of “caveat emptor” which means the buyer takes responsibility for understanding the condition of items purchased as well as the terms of exchange.

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.

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 DLCI 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.

The MIT Data Warehouse is a central data source which combines data from various Institute administrative systems. Access to the data is controlled by authorizations maintained within the ROLES Database.

A business that maintains a store, warehouse, or other establishment in which a line or lines of products are kept in inventory and are sold to the public on a wholesale or retail basis.

The disqualification of a person to receive invitations for bids or requests for proposals, or the award of a contract by a government body, for a specified time commensurate with the seriousness of the offense, the failure, or the inadequacy of performance.

Sum that a DLCI must pay, per incident—not per item—in the event of a theft or property damage claim. The DLCI is reimbursed for the replacement value of the item less the amount of the deductible.

Failure by a party to a contract to comply with contractual requirements.

Funds that have been collected but have yet to be earned, usually due to restrictions in time or requirement of deliverable results. For example, a customer pays an annual software license upfront on January 1st. If the vendor’s fiscal year-end is May 31, the vendor would record five months of the income as turnover in the profit and loss account. The rest would be accrued in the balance sheet as a deferred creditor.

One or more new items of equipment fabricated by a DLCI, under contract, to be delivered to the contractor upon completion of such items.

The classification of an item as a deliverable end item is contingent with filing and approval of a budget for fabrication with Research Administration Services (RAS) in the Office of the Vice President for Research (VPR).

The formal handing over of property; the transfer of possession, such as by carrier to purchaser.

The detention of a ship, railroad, car or truck beyond a specified time for loading/unloading; the payment required and made for the delay.

Credit card issued to an MIT department, lab, or center for payment of expenses for approved business travel. The Departmental Card is used when a traveler does not have an individual MIT Travel Card.

A specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product is to be manufactured.

The place to which a shipment is consigned.

As of summer 2023, this position title has replaced the title of Administrative Officer (AO) at the Institute.

A job position held in many departments, labs, and centers, the Director, Administration and Finance (DAF) is responsible for the general administrative functions of their DLCI. The DAF is a key contact with central administrative areas including MIT Human Resources, VPF, IS&T, and others.

An MIT Department, Lab, Center, or Institute.

MIT Department, Lab, Center, or Institute administrators who are part of a peer-support program to promote best-practices and improve communication.

A SAP term, similar to "transaction type".

Foreign drafts or checks made payable in foreign currency.

Merchandise that is shipped by a manufacturer directly to a customer in response to the seller who collects orders but does not maintain an inventory.

MIT’s former electronic procurement portal, eCat has been replaced by the Buy-to-Pay (B2P) system.

A tool in SAP Payroll that allows administrators and Principal Investigators to review monthly and quarterly salary reports and certify quarterly reports to comply with Financial Review and Control and Payroll Certification policies. The eDACCA application replaces the paper DACCA in the Legacy Payroll System.

Any corporation, foundation, trust or other institution operated for scientific or educational purposes, not organized for profit for a private shareholder or individual.

Funds invested and those available for investment in educational plant, as well as applicable mortgage bonds and notes payable.

All digital computers, word processors, and components thereof.

This feature allows administrators to update salary distribution records for prior and future periods. The eSDS application replaces DINDI, SANDI and eSANDI.

Clause or language that extends policy terms, coverages, or conditions beyond the scope of the basic policy provisions.

Encompasses both endowment funds and funds functioning as endowment.

Gifts and bequests where the donor has stipulated, as a condition of the gift, that the principal is to remain inviolate in perpetuity and is to be invested for the purpose of producing present and future income.

MIT’s property database. eProp maintains the inventory of all tagged property and equipment and has files on nearly 100,000 pieces of equipment throughout the MIT campus and at remote locations.

Used to indicate that an item may be substituted for a required item if it is equal in quality, performance and other characteristics.

Refers to an article of nonexpendable, tangible, personal property that is complete and does not lose its identity or become a component part of another item when placed in use.

A contract provision which permits the adjustment of contract prices by an amount or percent if certain specified contingencies occur, such as changes in the vendor's raw material or labor costs.

Any item which is no longer required on a project and is now available for screening and use within the Institute.

Contributions requiring fulfillment of terms specified by the donor that are received and either spent or deemed spent within the same year.

MIT uses Experian 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.

Shipment of goods to a foreign country.

A markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable. XML has come into common use for the interchange of data over the Internet and become the default for many office-productivity tools, including Microsoft Office.

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 DLCI 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 DLCI 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.

Funds that have been pooled for investment purposes. MIT Pool A contains endowment and similar funds. Pool C contains current invested operating funds.

In SAP, a six-digit number identifying a particular classification of expenses or revenue.

All types of personal property including commodities, materials, supplies, and equipment.

Property which may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed in the performance of a contract. Government material includes, but is not limited to raw and processed materials, parts, components, assemblies, small tools, and supplies.

All property owned by, leased to, or acquired by the US government under the terms of contract, grant, or loan agreements. This includes both government-furnished property and MIT-acquired property and is defined as follows:

Government-furnished property is property in the possession of, or acquired directly by the US government and subsequently delivered or otherwise made available to MIT.

MIT-acquired property is property procured, or otherwise provided by MIT for the performance of a contract and for which property title is vested in the government.

Any waste (solid, liquid, or gas) which because of its quantity, concentration, or chemical, physical, or infectious characteristics pose a substantial present or potential hazard to human health or the environment when improperly disposed, treated, stored, or transported.

Defined as an area that is located in one or more of the following:

(a) a qualified census tract (see section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);

(b) a qualified "non-metropolitan county" (see section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on U.S. Department of Labor recent data; or

(c) lands within the boundaries of federally recognized Indian reservations.

Contract provision under which the potential legal liability and defense of one party for damages payable, for some future loss, is assumed by another party to the contract.

A taxable payment made to a non-employee or guest representing a token of appreciation.

A VPF Business Unit that manages payroll for all of MIT's employees.

Mutually-agreed hallmarks that assure both parties to an agreement that the terms of that agreement have been fulfilled.

To receive goods from a foreign country.

When an employee receives non-cash compensation that is considered taxable, the value of that benefit becomes imputed income to the employee. Imputed income is added to the employee’s taxable income but is not included in the net pay because the employee has already received the benefit in some other form.

An individual performing services for compensation within a well-defined set of criteria. MIT treats payments to independent contractors as taxable income.

A separate card, form, document, or a computer file data record utilized to account for one item of property.

A solicitation which does not require a sealed response.

The unauthorized use of another’s rights or privileges, including intellectual property rights, such as a patent, copyright, or trademark.

An MIT fee-for-service system administered by the Copy Tech Center that allows DLCIs to purchase competitively priced copying tools without capital expense (includes full service and supplies).

A contract between an insurance company and a person or group which provides for a monetary payment in case of covered loss, accident or death.

The party to an insurance contract to whom the insurer (insurance company) agrees to indemnify from losses, provide benefits, and/or render services.

MIT's internal control structure consists of policies and procedures, organizational design, and physical barriers employed by MIT's central offices and DLCIs to achieve their objectives. These controls can be preventive or detective. An Internal Control Questionnaire (ICQ) is available to assist Institute DLCIs in performing a self-review of controls over financial systems and activities.

A type of cost object in SAP used to collect detailed revenues and expenses for departmental tracking, any net balance to be closed to a cost center or standing fund account.

MIT’s Internal Providers offer a range of goods and services to the Institute community for a fee. They can be an excellent resource as they have deep institutional knowledge and experience – and can often save you time and money. Purchasing through an Internal Provider also offers the convenience of ordering and handling financial transactions within the Institute.

Trade terms published by the International Chamber of Commerce.

A list of goods or services sent to a purchaser showing information including prices, quantities and shipping charges for payment.

Payment vehicle used by Accounts Payable to pay vendors/subcontractors on MIT purchase orders.

Original paper or electronic receipt itemizing all charges, such as the individual items for a meal at a restaurant. A credit card receipt is not considered an itemized original receipt.

The temporary association of two or more businesses to secure and fulfill a procurement bid award.

The standardized, regulated form for logging business transactions and their monetary value into the accounts of the accounting journal as either debits or credits. Journal entries must balance (with equal debit and credit values) and most are backed up by a receipt, a bill, an invoice, or some other direct record of the transaction, making it easy to record and to maintain traceability for each transaction.

Substantive documentation supporting a vendor, price, or product selection.

MIT’s electronic system used to standardize the administrative processes for sponsored research. Often referred to as Coeus, it 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.  Kuali Coeus

The time that it would take a supplier to deliver goods after receipt of order.

A contract conveying from one entity to another the use of real or personal property for a designated period of time in return for payment or other consideration.

A freight classification meaning “Less than a Truckload” which describes the shipment of relatively small freight. Also known as LCL “Less than a Container Load”.

One to whom a lease is granted.

One who grants a lease.

In accounting, a loan, expense, or any other form of claim on the assets of an entity that must be paid or otherwise honored by that entity.

A person given a license by a government entity or under private agreement.

A person who gives another a license, particularly a private party doing so, such as a business giving someone a license to sell its product.

Gifts for investment with income payable to one or more beneficiaries during their lives. Upon the termination of life interests, the principal becomes available for Institute purposes, which may be designated by the donor.

An item of supply or service specified in a solicitation for which the vendor must specify a separate price.

A specific sum of money, agreed to as part of a contract to be paid by one party to the other in the event of a breach of contract in lieu of actual damages, unless otherwise provided by law.

The price of an article published in a catalog, advertisement or printed list from which discounts, if any, may be subtracted.

Methods of reducing the frequency (number of claims) and/or severity (extent/cost of each claim) of losses, including exposure avoidance, and loss prevention/reduction systems and programs.

On a property policy, parties (leased property, equipment, bailment, builder’s risk) with a financial interest may be added to protect their financial interest in the property insured.

MRO is an operations term that refers to equipment service contracts.

Required by the order stipulated, e.g., a specification or a specific description that may not be waived.

A business that makes or processes raw materials into a finished product.

The fair value of an asset on the statement date. Real estate held for investment is carried at appraised value, and certain assets are carried at book value or nominal value when value cannot readily be determined.

The basic structure of codes and fields within SAP. Common fields of financial master data include cost objects, general ledger accounts/cost elements, fiscal period document type, material groups, profit center, and fund center. Master data is “standing data”, not transactional data.

Property that may be incorporated into or attached to a deliverable end item or that may be consumed or expended in performing a contract or grant. It includes assemblies, components, parts, raw and processed materials, and small tools and supplies that may be consumed in normal use in performing a contract or grant.

A tracking process that embraces all functions of acquisition, standards, quality control and surplus property management.

A VPF Business Unit that supports internal departments at MIT who use credit cards to collect payments.

The degree to which a product is fit for its intended purpose, works correctly, and is suitable to purchase and use without serious risk.

Assets with an acquisition cost of less than $500, plus any other plant equipment so designated by federal guidelines, regardless of cost.

See Financial Review and Control.

Physical assets that are not affixed to any part of a room or building. Also, those items that are attached to a room or building, but could be removed without costly or extensive alterations or repairs to the building, and could be used after removal.

 A nonprofit educational and technical organization of purchasing and materials management personnel and buying agencies from the public and private sectors.

Requests for Proposals (RFPs) are sometimes used as a starting point for negotiations to establish a contract. RFPs generally include more than just price considerations, and are especially applicable when dealing with a single source manufacturer.

In gift administration, net assets are categorized into three groups according to the nature of the restrictions placed on gifts by donors.
 
Permanently Restricted Net Assets
Gifts for which the original principal can never be spent. They comprise gifts to true endowment, outstanding pledges and assets held in trust that, when paid or matured, will go to the endowment, and gifts that are required to be used for student loans.
   
Temporarily Restricted Net Assets
Gifts that will ultimately become available for operations or capital expenditures. They require some event to take place or a defined lapse of time before they are available for spending. They include pledges, gifts of real estate not yet sold, gifts for construction projects that have not been completed and certain life income funds that, upon maturity, will be available for spending.
 
Unrestricted Net Assets
Gift resources available without restriction.

Price after all discounts, rebates, and other reductions have been allowed.

MIT’s web-based system for creating, submitting, maintaining, updating, and closing out budgets.

A formal response to a solicitation for bids stating that respondent does not wish to submit an offer. This serves as a procedure consideration to prevent suspension from the vendors list for failure to submit a response.

Payments made without the use of an MIT purchase order. Also referred to as Requests for Payment, RFPs and yellow RFPs, since the printed form is yellow.

The term for "expense type" (or cost element or G/L account), in use before MIT use of SAP.

Created by the OSHA Act of 1970 to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.

Salaries for MIT employees working away from the Cambridge campus for a minimum period of time.

A research sponsor that conducts Contractors Purchasing System Review (CPSR) audits of MIT procurement practices every three years.

An office at MIT responsible for maintaining a specific type of source document such as a packing list.

See Uniform Guidance.

Issued by the U.S. Office of Management and Budget (OMB), this circular provided guidance and definition of allowable direct and indirect costs for reimbursements under federal grants and contracts. Replaced by Uniform Guidance in December 2014.

A provision (or exercise of a provision) which allows a continuance of the contract for an additional time according to permissible contractual conditions.

A document that itemizes in detail the contents of a particular package or shipment.

The payment authorized in a contract upon delivery of one or more units called for under the contract or upon completion of one or more distinct items of service called for thereunder.

An agreement between two or more individuals or entities for the purpose of conducting a business relationship. This relationship may be informal (non-contractual) or formal (written contract).

A specific set of accepted conditions for vendor invoice payment via electronic funds transfer.

A proprietary information security standard for organizations that handle branded credit cards from the major card providers including Visa, MasterCard, American Express, and Discover. The PCI Standard is mandated by the card brands and administered by the Payment Card Industry Security Standards Council, and was was created to increase controls around cardholder data to reduce credit card fraud.

Term used for payments made to vendors receiving via electronic funds transfer through Bank of America. PayMode (1-877-443-6944)

Folder kept by some DLCIs to hold copies of invoices, travel vouchers, and RFPs submitted for payment, and other non-SAP documents, such as packing slips. These documents are needed to verify that a transaction has been processed at the authorized amount and to the correct cost object and G/L account.

Literal translation is "by the day".  In finance, usually an amount of money given to someone for daily expenses.

A contract of guarantee, executed subsequent to award by a successful vendor to protect the buyer from loss due to the vendor's inability to complete the contract as agreed.

A specification setting forth performance requirements determined necessary for the item involved to perform and last as required.

Most foreign countries subject an external organization to its tax laws based on whether the external organization has created a Permanent Establishment (PE) in that country (i.e., a taxable presence). Typically, a PE is created when an organization is engaged in a certain level of activities within the foreign country and receives revenue for those activities from the foreign country. The threshold for determining whether the level of activities within a foreign country would create a PE is usually defined by the laws of the foreign country. Additionally, if there is an existing income tax treaty between the US and the foreign country, the tax treaty may also define what would constitute a PE.

Once a PE is created, there may be adverse income tax consequences, numerous foreign reporting requirements, as well as significant administrative costs associated with dealing with a foreign country’s tax laws. Depending on the foreign country, the implications of creating a PE could include having to legally register as an operating organization within the foreign country, requirements to engage a representative or local agent in the foreign country, and obligations to prepare income tax or corporate filings regularly. Failure to meet the foreign countries’ regulatory and tax law requirements puts MIT at financial and reputational risk and could jeopardize both the funding and the future of your program.

Funds designated by the donor as unexpendable endowment.

Liability for injury, other than bodily injury, to a person. Includes defamation, false arrest, invasion of privacy, and other non-physical injuries.

Equipment, machine tools, test equipment, furniture, vehicles, accessory and auxiliary items used or capable of use in the manufacture of supplies, in the performance of services, or for any administrative or general plant purpose. Excludes special tooling and special test equipment.

See Educational Plant Funds

A written or oral agreement to contribute cash or other assets, and can be either conditional or unconditional.

A Conditional Pledge specifies a future and uncertain event whose occurrence, or failure to occur, releases the promisor from its obligation.

An Unconditional Pledge is a promise to give that depends only on the passage of time or a demand by the promise for performance.

The location where a shipment is received by a transportation line from the shipper.

A finished material which would normally be disposed of as a solid waste after its life cycle, and does not include manufacturing or converting wastes. Or material collected for recycling from office buildings, homes, and retail stores.

Material or by-products generated after the manufacture of a product but before the product reaches the consumer, such as damaged or obsolete products. Pre-consumer material does not include mill and manufacturing trim, scrap, or broken material which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process.

An advantage in consideration for award for a contract granted to a vendor by reason of the vendor’s residence, business location, or business classifications (e.g., minority owned or small business).

Preferred Suppliers are selected through a formal sourcing process. These suppliers have multi-year contracts in place with MIT that feature negotiated pricing, terms, and conditions. For purchases from Preferred Suppliers, MIT's competition requirements are met and a Selection of Source Form is not required. Although Preferred Suppliers provide negotiated pricing for most items within their commodity, some goods and/or services may be excluded and a Selection of Source form would then be required. Review individual supplier pages on VPF Supplier Search for exclusions.

A term denoting that transportation charges have been or are to be paid at the point of shipment.

Amounts that are paid in advance to a vendor or creditor for goods and services. Typically, insurance premiums are paid in advance of the coverage contained in the policy. Prepaid expenses are categorized as Current Assets because they are an advance payment for a good or service that will be received in the future.

The amount of money that will purchase a definite weight or other measure of a commodity.

A contractual agreement in which a purchaser contracts with a vendor to provide the purchaser’s requirements at a predetermined price, and usually specifies a minimum number of units, orders placed directly with the vendor by the purchase, and limited duration of the contract.

Agreement among competing vendors to sell at the same price.

The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, store keeping, and salvage and disposal operations.

A purchasing instrument issued to MIT employees for small dollar purchases.

A signed document that acknowledges and accepts responsibility for participation in the MIT procurement card program.

The person to whom a unique MIT purchasing instrument has been issued with the understanding that the use of such an instrument is to be guided by specific terms and conditions.

A VPF Business Unit that helps the MIT community buy the goods and services it needs to conduct the Institute’s business and serves as the community’s partner in the actual purchasing process.

A person within a DLCI who is authorized to approve payment against specific cost objects.

A mechanism in SAP for grouping cost objects to align with specific financial reporting purposes and to manage the granting of reporting, but not spending, authorizations.

Liability for physical damage or destruction of tangible property of others. Includes the loss of use of tangible property, if the loss is covered by an occurrence under the general liability policy.

A VPF Business Unit that serves as MIT’s master inventory department, keeping track of all movable capital equipment and MIT’s capital building assets.

The only items that can perform a function and satisfy a need. This should not be confused with “single source”. An item can be proprietary and yet available from more than one source. For example, if the the only lens that will fit a Nikon camera is a Nikon lens then the lens is “proprietary.” However, the Nikon lens is available from more than one source, and therefore is not single source.

Coverage for bodily injury, medical and legal and other expenses, associated with liability claims arising from the operation and/or transport of covered watercraft.

A document that stipulates rules and prescribes procedures for purchasing with suppliers and other departments.

The signed written acceptance of the offer from the vendor. A purchase order serves as the legal and binding contract between both parties.

An MIT reference document used by Institute DLCIs to assure compliance with procurement policies and procedures.

The composite of material attributes, including performance features and characteristic, of a product or service to satisfy a given need.

Amount or number.

A reduction in the unit price offered for large volume contracts.

Prospectively solicited and reviewed pricing that includes applicable terms, conditions and scope of work.

Real property consists of land, buildings, improvements and betterments. Personal property includes equipment, furniture, and fixtures.

Land and rights in land, ground improvements, utility distribution systems, and buildings and other structures. It does not include foundations and other work necessary for installing special tooling, special test equipment, or government property.

A written acknowledgement that goods, services or monies have been provided and accepted as full or partial fulfillment to an obligation.

The date goods and/or services were received by the department. The receipt date is used by Accounts Payable as the baseline date determining when terms are due and payment will be made.

Term used for monthly review.

The portion of a product that is made from materials directed from the waste stream; usually stated as a percentage by weight.

A product that contains the highest amount of post-consumer material practicable, or when post-consumer material is impracticable for a specific type of product, contains substantial amounts of pre-consumer material.

Any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form.

A rental contract giving the right to use real estate or property for a specified time in return for rent or other compensation.

Cost for a new comparable (like kind and quality) model or item to replace damaged, stolen, or destroyed property.

A solicitation in which the terms, conditions, and specifications are described and responses are not subject to negotiation.

A written application for details regarding a specific transaction.

VPF eform used for reimbursement for out of pocket expenses, payment of honorarium, registration fees, dues, and other items where a purchase order is not deemed necessary.

A solicitation in which it is not advantageous to set forth all the actual, detailed requirements at the time of solicitation and responses are subject to negotiation. Price must be a factor in the award but not the sole factor.

A meeting arranged by a procurement officer to help potential bidders understand the requirements of an Request for Proposal or Request for Bid.

Materials, personnel or services needed for a specific period of time.

A form or contract that is used when the total long-term quantity required cannot be definitely fixed, but can be stated as an estimate or within maximum and minimum limits with deliveries on demand.

An internal document that a department sends to the purchasing department containing details of materials to meet its needs, replenish stocks, or obtain materials for specific jobs or contracts.

Research Administration Services (RAS) is a new organization under the Office of the Vice President for Research (VPR) that replaced the Office of Sponsored Programs (OSP), effective September, 2019.

See Plans to Reinvent Research Administration at MIT for details.

One who submits a response to a solicitation document.

The offer received from a vendor in response to a solicitation. A response includes submissions commonly referred to as "offers," "bids," "quotes," or "proposals."

A bidder whose reputation, past performance, and business and financial capabilities are such that the bidder is judged by an appropriate authority as capable of satisfying an organization's needs for a specific contract.

A bidder whose bid does not vary from the specifications and terms set out in the invitation for bids.

Gift to MIT that must be used for the purpose designated by the donor.

Specifications that unnecessarily limit competition by eliminating items capable of satisfactorily meeting actual needs. See Performance Specification.

A portion of payment that is withheld until certain deliverable results have been reached. In the case of sponsored billing, the deliverable may be a progress report, final report or technical report. In the case of a construction project, the deliverable may be a particular phase of completion up to and including the punch list.

Deductible that a DLCI must pay, per incident (not per item), in the event of a theft or property damage claim. DLCIs are reimbursed for the replacement value of the item less the retention.

A transaction that enables the recipient of an unsatisfactory product to arrange return, repair, replacement, refund, or credit for the purchase price.

Process following receipt and inspection of goods deemed unsatisfactory. This process usually requires a return authorization (RMA) form.

In Financial Review and Control, the person(s) familiar with activity on a cost object who performs monthly financial review and control activities.

Rheaply (think “research cheaply”) is an online service available to MIT that hosts a free reuse marketplace for furniture, supplies, and equipment. 

Rheaply is open to MIT community members with a Kerberos account. You can list surplus equipment and offer it to the wider community and post requests for specific equipment and supplies you need for your lab, center, or department. You can also personalize your Rheaply homepage to filter items of interest and receive notifications when new items are posted.

A management discipline focusing on the protection of the assets (people, tangible and intangible) of an organization by reducing the potential for losses (risk control), and financing, through insurance and other means, potential exposures to catastrophic loss, such as acts of God, human error, or court judgments.

Stores and maintains access rules for other applications, such as SAP. The Roles Database collects information and then distributes it to the appropriate applications, in a nightly data feed.

Exclusion from sales tax for goods and services purchased for use by a nonprofit organization. This exclusion does not apply to state hotel occupancy taxes.

Property that has no reasonable prospect of sale or use as serviceable property without major repairs or alterations because of its worn, damaged, deteriorated, or incomplete condition, or because of its specialized nature. Salvage has some value in excess of its scrap value.

MIT uses SAP—an enterprise software designed to manage business operations—for its integrated accounting and purchasing systems.

MIT accounting operations (such as Accounts Payable) scan all invoices and Request for Payments (including attached backup) before posting for payment. After a document number is generated the scanned images are linked to that document number. These images are then accessible to the MIT community.

Property that has no reasonable prospect of being sold except for the recovery value of its basic material content.

The process used to conduct an impartial, equitable and comprehensive evaluation of competing proposals to supply specified goods or services.

An Asset Category, also known as Unallowable. Property that is considered attractive to misappropriation for personal use or to being sold in a cash-for-value transaction. Items in this classification generally have a value greater than $100. Examples include cameras, binoculars and telescopes, power tools and firearms.

Investments that are held by or for the Institute and maintained in separate portfolios for investment purposes.

Defined as a small business that is at least 51 percent owned, controlled and operated by one or more service-disabled veterans. Controlled is defined as exercising the power to make policy decisions. Operated is defined as actively involved in the day-to-day management.

Unless otherwise indicated, both professional or technical services and service performed under a service contract.

Document that confirms the record of monthly review. The form must include a list of the cost objects reviewed, the transaction types (if not all were reviewed by the same person), the month being reviewed, and the date completed.

A designation for certain statutory purposes referring to a firm, corporation, or establishment that is independently owed and operated, is not dominant in the field of its operations, has a small number of employees, low volume of sales, small amount of assets or limited impact on the market.

Defined as a business that:

•  is independently owned and operated
•  is not dominant in the field of its operations
•  qualifies under the criteria covering annual receipts set forth in Section 3 of the Small Business Act, or
•  does not employ more than 500 people

Small business concern categories include HUBZone, Small Disadvantaged, Women-Owned, Veteran-Owned, and Service-Disabled Veteran Owned.

Defined as a small business concern that meets the following criteria:

1.  One or more socially and economically disadvantaged individuals own 51 percent or more of the business (in the case of any publicly owned business, at least 51 percent of the stock).

2.  Management and daily business operations are controlled by socially or economically disadvantaged individuals, including Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent-Asian Americans, and other minorities or any other individuals found to be disadvantaged pursuant to the Small Business Act.

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.

Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business who are not socially disadvantaged.

See  Supplier Search

SmartBuy was retired in July 2016 and replaced by Supplier Search.

Proof of copyright for software, documentation, name, trademarks and other related items.

An acquisition where, after a search, only one supplier is determined to be reasonably available for the required product, service or construction item.

The process used to communicate procurement requirements and to request responses from interested vendors. A solicitation may be, but is not limited to a request for bid and request for proposal.

A product that results in a net reduction in the generation of waste, and includes durable, reusable and re-manufactured products, or products with no packaging or reduced packaging.

Applies to those items of space property and components unique to NASA aeronautical and space programs. All space hardware, including space hardware work in progress is reported on the annual NASA financial report, NASA Form 1018.

Capital assets which are peculiar to aeronautical and space programs of NASA, including such items as aircraft engines, space vehicles, other similar components, and related support equipment furnished for use as a standard or model, to establish equipment compatibility or such other similar reasons as may be determined by the contracting officer.

Electrical, electronic, hydraulic, pneumatic, mechanical, or other items or assemblies of equipment, which are of such a specialized nature that (without modification or alteration) their use is limited to testing in the development or production of particular supplies or parts thereof, or is limited to the performance of particular services. The term “special test equipment” includes all components of any assemblies of such equipment, but does not include:

• Consumable property
• Special tooling
• Buildings, defined as non-severable structures (except foundations and similar improvements necessary for the installation of special test equipment), general or special machine tools, or similar capital items, as well as fabricated equipment.

All jigs, dies, fixtures, molds, patterns, taps, gauges, other equipment and manufacturing aids which are of such a specialized nature that (without substantial modification or alteration) their use is limited to the development or production of particular supplies or parts thereof, or the performance of particular services. The term includes all components of such items, but does not include:

• Consumable property
• Special test equipment
• Buildings, defined as non-severable structures (except foundations and similar improvements necessary for the installation of special tooling), general or special machine tools, or similar capital items.

A VPF Business Unit that manages billing, collecting, and reporting for all sponsored research projects at MIT.

An item's characteristic or set of characteristics generally accepted by the manufacturers and users of the item as a required characteristic for all such items.

The process of defining and applying the conditions necessary to ensure that a given range of requirements can normally be met, with a minimum of variety, in a reproducible and economic manner based on the best current techniques.

Summarize the revenues, other additions, expenses, and other deductions that resulted in the changes to the Institute’s net assets as shown in the Statements of Financial position. The statements show this activity by net asset category, with details of the Institute’s operating and non-operating activities.

These statements show the change in the cash balances of the Institute from the end of the preceding year to the end of the current year. The statements start with the overall change in net assets for the year, then add back expenses and other transactions that did not require cash, and then show the changes in the specific balance sheet items. Receivables and payables are created when transactions are booked for reporting purposes, but cash has not yet been received or paid. A positive adjustment for accounts receivable during the year reflects the net decrease in receivables.

The report of the Institute’s assets, liabilities, and net assets. Invested assets are reported at market value while other assets are valued at amortized cost. The net assets section of the Statements of Financial Position, the Institute’s assets less its liabilities, is comparable to stockholders’ equity in a for-profit corporation.

A unique product identification number.

A VPF Business Unit that finds and sources the most appropriate suppliers of goods and services to met MIT's complex purchasing needs.

Resources loaned to students plus any dedicated balances available for such loans.

The recovery, in whole or in part, of claims costs, including legal expenses, from a third party (e.g., contractor, subcontractor, vendor, manufacturer) who may be held responsible for damages.

VPF's term for entities that provide goods or services to MIT. See Supplier Search for a list of MIT's Preferred Suppliers.

The Institute’s online directory of Preferred and Internal suppliers can be searched by commodity or by supplier name. By using Supplier Search, DLCIs can find suppliers that will help reduce purchasing costs, optimize product and service quality, and streamline ordering.

When you use MIT’s Preferred Suppliers for your DLCI’s purchases there is no need to fill out a Selection of Source Form, no matter the amount of the purchase.

Note: Although Preferred Suppliers provide negotiated pricing for most items within their commodity, some goods and/or services may be excluded and a Selection of Source form would then be required. Review the individual suppliers’ page on VPF Supplier Search for a list of exclusions.

Physical assets in excess of the needs of the Institute. These assets become available for disposition to outside organizations, for sale through brokers or  when appropriate, donated to local organizations.

Suspense cost objects are intended to be temporary holding places for salary expenses that encounter an exception condition, e.g., an invalid or terminated cost object. An unfunded internal order that is used to charge salary if the appropriate cost object (WBS element, Cost Center or Internal Order) is not available. Charges to suspense may be generated by the system or a DLCI may enter the cost object directly in eSDS or on time sheets. Charges are cleared from suspense cost objects by Payroll quarterly.

Any credit card balances that are shifted to a default cost object until supporting receipts or other backup documents have been attributed. Once back-up has been attributed, the changes will transfer to the appropriate cost object/GL account.

A VFP Business Unit that ensures MIT’s compliance with federal, state, local, and international tax laws, and manages the Institute’s tax risks and liabilities. This team oversees the Institute’s global financial operations and serves as an advisor and knowledge resource to the Institute on its rapidly expanding range of global activities.

Under the terms of nation-specific U.S. treaties, foreign residents may be taxed at reduced rates and/or may be exempt from U.S. income tax on certain income received from sources within the U.S. These reduced rates and exemptions vary among countries and specific types of income.

Termination is a formal process for ending a contractual relationship prior to its completion without the mutual agreement of the vendor.

Termination for Convenience is the exercise of the right to completely or partially terminate performance of work under a contract when it is in MIT’s interest.

Termination for Default is the exercise of the right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations.

Payment terms set up on a purchase order which Accounts Payable then follows when paying invoices.

A phrase generally applied to the rules under which all bids must be submitted and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors.

For low risk transactions types, Financial Review and Control guidelines recommend that matching to supporting documentation be done on a test basis. The reviewer should consider a number of factors in deciding how many transactions to test.

See Tax and Global Operations.

For hourly personnel, the employee's signed record of hours worked during the week. The time card is signed by a person having direct knowledge of the work performed, confirming that the hours shown are reasonable and the distribution to cost objects is appropriate.

The instrument or document whereby ownership of property is established.

A wrongful act, other than a breach of contract, such that the law permits compensation of damages.

A VPF Business Unit that oversees travel expense reporting and reimbursements for MIT faculty, students and staff, and administers the MIT Travel Card and the MIT Procurement Card (ProCard).

Corporate-pay credit card issued, with approval, to MIT business travelers for the purposes of paying for business travel expenses.

An MIT employee is considered on Travel Status while traveling directly to and returning from business travel destinations and while staying in those destinations for business purposes. An employee is not on Travel Status while engaged in personal travel in conjunction with business travel, whether that personal travel is before, during, or after the business travel.

An individual (MIT employee, student, or visitor) who is engaged in business travel for which MIT is covering expenses as a result of necessary authorization being granted.

A quantity of freight to which truckload rates apply or a shipment tendered as a truckload.  See Less-Than-Truckload.

An Air carrier that holds a certificate under 49 U.S.C. 41102.

Any cost that cannot be included in prices, cost-reimbursements, or settlements, under the provisions of any pertinent law, regulation, or contract, including government contracts to which that cost might otherwise be allowable.

A comprehensive modernization of various statutes relating to commercial transactions, including sales, lease, negotiable instruments, bank deposits and collections, funds transfers, letters of credit, bulk sales, documents of title, investment securities and secured transactions.

A government-wide framework for grants management that synthesizes and supersedes guidance from earlier OMB circulars including OMB Circular-21.

Uniform Guidance is designed to reduce the administrative burden on federal award recipients and guard against the risk of waste and misuse of federal funds. It was implemented in December 2014 by the Council on Financial Assistance Reform (COFAR).

The price of a selected unit of a good (e.g., pound) or service (e.g.,labor hours).

Universal Product Code (UPC) is a bar code language that provides inventory and pricing reference data.

In Financial Review and Control (FRC), documentation of unresolved problems are kept on or with the signoff form. Contacts for resolving problems for each transaction type are found in Part 3, Specific Guidelines by Transaction Type.

Refers to gifts from donors made to MIT that are available for the general purposes without restriction or a specific designated use.

An organized effort directed at analyzing the function of systems, products, specifications, standards, practices, and procedures for the purpose of satisfying the required function at the lowest total cost of effective ownership consistent with the requirements for performance, reliability, quality and maintainability.

Someone who sells something; the seller in a business transaction. VPF uses the term Supplier.

See Supplier Search for a list of MIT's preferred suppliers.

Defined as a small business that is at least 51 percent owned, controlled and operated by one or more veterans. Controlled is defined as exercising the power to make policy decisions. Operated is defined as actively involved in the day-to-day management.

A product that is made with 100 percent new raw materials and contains no recycled materials.

Compounds that evaporate easily at room temperature and often have a sharp smell. VOCs can come from many products, such as office equipment, adhesives, carpeting, upholstery, paints, solvents, and cleaning products. Some VOCs can cause cancer in certain situations, especially when they are concentrated indoors. VOCs create ozone, a harmful outdoor air pollutant.

The representation, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. A warranty is not a guarantee, which means a contract or promise by one person to answer for the performance of another person.

Withholding tax mechanism is a government’s way of making sure that the proper taxes are paid on an item by withholding or deducting the relevant tax amount from a nonresident individual’s or a nonresident organization’s income. The rate of withholding tax applied to certain income payments leaving a foreign country is usually a fixed percentage of the gross amount of the payment.

Generally the withholding tax is treated as a payment on account of the nonresident recipient's final tax liability. The withholding tax amount in some circumstances may be refunded if it is determined, when a tax return is filed, that the recipient's tax liability to the foreign government which received the withholding tax is less than the actual tax withheld, or alternatively, additional tax may be due if it is determined that the recipient's tax liability is more than the actual withholding tax amount. In some situations, the withholding tax is treated as discharging the recipient's tax liability, and no tax return or additional tax is required.

Availability of and procedures for obtaining a reduced withholding tax rate under applicable income tax treaties and recovery of excess amounts withheld vary by country. In some foreign countries, recovery is made by filing an income tax return for the year in which the income was received. Time limits for recovery of withholding tax from a foreign country vary greatly.

Defined as a small business that is at least 51 percent owned, controlled and operated by a woman or women who are U.S. citizens. Controlled is defined as exercising the power to make policy decisions. Operated is defined as actively involved in the day-to-day management.

A cost collector for allocating costs under a sponsored project. Also referred to as WBS element.

Refers to when payment terms are “pay immediately.” These terms might be needed in postage advances, payments where the vendor has offered a discount, or other special arrangements.