[mit-habitat-exec] Student Activities - spring business practice reminder

[Laurie Ward]

Hi All.
We are into another semester and I want to make you are aware of our 
web resource for good business practices 
(http://web.mit.edu/slp/finances/gbp).  One of the best practices is 
to limit the number of times your members have to pay expenses out of 
pocket.  There are many ways SAFO can pay expenses directly for your 
group. Below are recommendations and policies that are most relevant 
to all student groups.  Please take a moment to make sure you and 
members paying for expenses are familar with these.

We understand that things do come up at the last minute, plans change 
or the unpredictable happens,  we appreciate groups plan in advance 
and use MIT direct payment options as much as possible.

1. Ask companies to send you a written quote, estimate or invoice in advance
Checks can be written directly to a company 
(http://web.mit.edu/slp/finances/transactions.html).   Invoices, 
quote or estimates must be issued from the company and include their 
address, phone number, itemization of services and if possible their 
tax identification number.

Our office can accept faxes (fax number 617-253-8391) for student 
groups as long we know in advance and have an expense voucher to 
issue a check. The fax should clearly indicate your group name so we 
may identify it.

It is reasonable to tell a company a check will be mailed once the 
service has been rendered and you receive an invoice. Most legitimate 
companies will understand this request and will appreciate assurances 
of a timely payment through this method.

This option should also be used by groups paying for national dues, 
registration, conference or competition fees. Groups need to submit 
the registration form with the voucher and the check would be made 
payable to the sponsoring organization. Students don't need to write 
out personal checks for these since groups have plenty of advance 
notice of when these are due.

Lastly, SAFO can pay  MIT Campus Police and the City of Cambridge 
(entertainment license) directly. You need only submit a copy of your 
Event Registration form as supporting documentation with your expense 
voucher.

2. Ask companies in advance if they accept purchase orders for payment
Purchase orders are commitments to pay a certain price once a company 
sends and invoice to MIT. PO's need to be set up in advance of 
placing an order. Groups need to submit an expense voucher 3-5 days 
in advance of placing an order 
(http://web.mit.edu/slp/finances/transactions.html#PO.).

**Any purchase over $3,000 must be made with a MIT purchase order and 
requires written quotes from three vendors along with the an 
explanation why the group's selected the one they did.**

Local companies we know who accept MIT purchase orders :
Budget Rental Car
B&H Photo
Cinderella's Pizza
MIT Coop
Festive Occasions (party equipment rental)
High Output (theatre and AV equipment rentals)
LaVerde's
MicroCenter
Pearl Arts & Crafts
Picante's Mexican Grill Catering
Pu Pu Hot Pot
Royal East
Shaw's/Star Market
QRST's

3. Use MIT internal service providers
Payments to internal providers are requisitions processed directly 
from SAFO once you have arranged for services.

Student groups commonly use (http://www.mit.edu/shopmit/)
Audio Visual
CAC & Talbot House
MIT Catering
Bon Apetite
Alpine Bagel & Cambridge Grill
Faculty Club
CopyTech
MIT Press Bookstore
Cyrogenics Lab (helium tank rentals)
Mail Services
Facilities

Groups can set up a CopyTech "Logsheet" where charges are recorded 
and billed monthly to group's main accounts.

Also groups that have phones or I/S network services can arrange to 
have those billed directly to their group's main account monthly.

4. Take advantage of MIT negotiated discounts
MIT has negotiated deals with companies for basic office supplies, 
computer equipment, lab materials and so on.  Contact MIT Procurement 
for recommendations on companies to buy from. A list of MIT preferred 
vendors is available at 
(http://web.mit.edu/afs/athena.mit.edu/org/p/purchasing/part.htm)

Student groups may request SAP authorization to place online orders 
with any of MIT's ECAT partner companies 
(http://web.mit.edu/ecat/#selectvendor). Contact me to request this 
additional SAP authorization.  This is helpful for residence halls 
who order toner and paper supplies regularly.

5. Use MIT approved travel agents & rental car agencies
When renting vehicles student groups should use a MIT purchase order 
and rent from  Budget Rental Car or Alamo 
(http://web.mit.edu/cao/www/travel.htm#car_rentals). MIT has 
corporate contracts with both which includes proper insurance 
coverage and discounted rates. This is vital in case a group gets in 
an accident while travelling.

Groups are urged to use an approved MIT travel agent 
(http://web.mit.edu/cao/www/travel.htm#travel_agencies). Airfare can 
be charged directly to a group's main account (requirements listed at 
http://web.mit.edu/slp/finances/gbp/travel.html.)

6. Paying a performer or guest speaker
A written contract or agreement must be used when a group "hires" 
someone to do a "job" whether it is a DJ, coach, piano tuner, 
instructor, band, etc. (http://web.mit.edu/slp/safety/contracts.htm).

Students may not sign contracts on behalf their MIT student group see 
Tom Robinson or Linda Noel in W20-549 for the proper MIT signature. 
Signing a contract is consent to assume responsibility and liability 
if something goes wrong. The MIT approved signature places the 
liability with MIT and not a particular individual.

Groups may only "hire" US citizens or foreign nationals who provide a 
copy of a valid work visa. Arrangements may be made to pay travel or 
other expenses instead of an honoraria or payment for service (see 
http://web.mit.edu/slp/finances/gbp/travel.html#local).

7. Capital equipment - initial purchase procedure and eventual disposal
Any purchase of capital equipment (any item that has a life of more 
than a year or more and costs more than $500 is considered equipment) 
must be processed by by purchase order or direct payment by SAFO  to 
the vendor. Property will be tagged and catalogued by the MIT 
Property Office and groups are required to provide SAFO with the 
following information

Manufacturer
Model #
Serial #
Contact person
On-campus location

Once your group is done with the equipment it must be deactivated by 
the MIT Property Office before it may be resold or disposed of. All 
questions regarding the disposition of property should be direct  to 
Michael McCarthy at x3-2779 or mmccarth at mit.edu.

"Department, Labs and Center Administrators are reminded that any 
intended selling, donation or transferring of equipment assets must 
be coordinated in advance with the Property Office. MIT's Property 
Procedure 25.1 prohibits Department, Lab and Center employees from 
selling MIT or MIT-titled equipment directly. If equipment becomes 
excess to DLC needs, it should be identified to the Property Office 
for disposition and possible sale, indicating any possible interested 
parties. The Property Office will then coordinate the necessary 
internal re-utilization screening, the type of bid or negotiated cash 
sale, MA sales tax collection and liability issues, bill of sale, 
proper crediting of the proceeds, transfer paperwork, and the 
retirement of the property record. Government-titled equipment is 
always prohibited from sale, but it should be reported to the 
Property Office when it is excess to needs.

  Questions regarding the above should be addressed to Michael 
McCarthy at 3-2779 or mmccarth at mit.edu."
  --excerpt taken from MIT Accounting Office January 2005 Summary 
Statements Message

8. Maintaining Financial Signatory information
ASA groups please make sure your group continues to keep your 
financial signatories updated in the ASA web database 
(http://web.mit.edu/asa/www/asa-db.shtml).

Residence halls please make sure your group continues to keep your 
financial signatories updated with the SAFO office by sending an 
email to funds at mit.edu or completing the Residence Hall online 
Financial Signatory form 
(http://web.mit.edu/slp/finances/dorm-signers.html.)
-- 
Financial Administrator
Student Activities Finances Office (SAFO),
W20-549
ph. x3-3680, fx. x3-8391
laurie at mit.edu
http://web.mit.edu/slp/finances
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