Glossary

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.