Glossary

This glossary is a collection of terms (and their meanings) heard frequently in the daily life of the Controller's Office. Some are specialized, others are more commonplace - and our intent in compiling them is to help MIT staff, faculty, and students conduct their Controller's Office business more effectively.

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Tax Treaties

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

Taxable vendors

Individuals and/or organizations set up by MIT whereby any payments made are coded as taxable income.

Termination

Termination is a formal process for ending a contractual relationship prior to its being completed without the mutual agreement of the vendor.There are two types of terminations – Termination for Convenience and Termination for Default.

“Termination for Convenience” means 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” means 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.

Either type of termination is a formal process which requires the early involvement of the procurement office and may also involve the legal office.Procurement should be contacted as early as possible to determine the proper method to proceed.

Test Basis

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.

Time Cards

In the legacy system, hourly personnel must have a signed record of hours worked during the week. The time card must also be 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 DLC's should retain the original time card for as long as an employee might need to check or challenge payment (at most the current fiscal year and a prior fiscal year).

Time Groups

Were created for the purpose of approving or submitting time sheets using SAPweb for Support and Service staff and hourly paid students.

Title

The instrument or document whereby ownership of property is established.