• Policies and Procedures

• Invoices and payment authorization

• Confirming orders, payment vouchers and reimbursements

• Reimbursement/payment for meal meeting expenses

• Engaging Independent Contractors

• Human Subject Payments

• Honorarium payments

• Advance Account

• Wire Transfers

• Non-Resident Alien payments

• Tax Exemption Status

• Endorsements on Contractual Documents
  

Policies and Procedures

Dollar threshold for purchasing:

Below are the requirements for the solicitation of bids and proposals:

• $.01 to $9,999.99 no bids or proposals. Cost analysis should be done to maximize the limited resources.

• $10,000 to $24,999.99 require a minimum of three written or verbal bids or proposals.
  over $25,000.00 require a minimum of three written bids or proposals.

The Research Foundation purchasing area will assist in obtaining quotes and will coordinate the bid process.

Single and sole source justification

A single source procurement is a purchase from a supplier chosen without soliciting the minimum number of bids or proposals, despite the fact that competition exists, because of extenuating circumstances (e.g., integration with current system is essential or changing equipment will have an adverse effect on research, emergency situation).

A sole source procurement is a purchase from the only available supplier for the product or service. Therefore, no bids or proposals are required. Note: Since "single" and "sole" source procurements are often difficult to document it is important to contact the purchasing area for assistance prior to making any commitment to a supplier.

Confirming phone orders

This office has the ability to assign confirming purchase order numbers to project personnel over the phone. This process expedites purchasing of necessary supplies and/or services. We provide a confirming number for the supplier. The project personnel must write the confirming PO number on a Research Foundation Purchase Requisition that is then forwarded to Sponsored Funds. Sponsored Funds will encumber the PO when the requisition is received.

Invoices and payment authorization

After an order has been placed with a supplier, the original invoice is usually mailed to Sponsored Funds. If the original invoice is received by project personnel, the invoice must be forwarded to Sponsored Funds. We will only make payment to a supplier after authorization by the project director and original invoice is received.

Confirming orders, payment vouchers and reimbursement

If project personnel have already purchased items that are used for the conduct of a sponsored project and require reimbursement, a Research Foundation Purchase Requisition/Payment Voucher is completed. Attach all original paperwork pertaining to the reimbursement request. If there are any special circumstances involved, please note on the reimbursement request.

Reimbursement/payment for meal meeting expenses

This type of charge is most often not allowed on federal awards. However, certainly allowable on incentive awards. We require original receipt, purpose of meeting, why meeting held at that time and those in attendance.

Engaging Independent Contractors

To engage an independent contractor the following actions are required:

Classification form is used to determine status of independent contractor and to verify individual is not an employee. The Form Classification as Independent Contractor or Employee for Technical or Professional Services is completed. The form asks what is commonly referred to "Twenty Factors of the "Common Law Test". The Form and assistance is available from Sponsored Funds. If the classification determines the individual is an employee then payment must be processed through the Research Foundation payroll system. If the classification determines the person providing the services is an independent contractor payment is processed through the accounts payable process. The process for payment through the payroll system is addressed in the Personnel and Payroll section.

Determine the person's citizenship status for tax purposes. Two separate tax schedules are used dependent upon the independent contractors citizenship. Non U.S. citizen payments require pre-withholding of federal taxes. The contractor will be notified of status. If the payment to the contractor is between $600 and $2,499.99 then a technical services agreement is provided to the contractor. If payment is over $2,500 a formal technical services agreement is processed and must be signed by the contractor prior to payment. The contractor is provided a copy of the appropriate agreement. Once the independent contractor forms are completed and services provided payment is made upon submission of an invoice. Payments to independent contractors are considered miscellaneous income and a Social Security number or Employee Identification number is required from each contractor. For payments greater than $600 the Research Foundation will issue IRS Form 1099 Miscellaneous Income to the contractor

Human subject payments

The Research Foundation makes payments to persons who participate in sponsored projects as human subjects. Payments to human subjects are considered non-employee compensation and are subject to Internal Revenue Service requirements for miscellaneous income reporting (1099 reporting). All financial details of the human subject are kept in strictest confidence and do not breach human subject confidentiality requirements. We can issue payment to the individual or issue a bulk payment to project staff. The project staff then accounts for the disbursement of funds and reconciles documentation with Sponsored Funds. For special arrangements with payments to human subjects contact the Assistant Director for Purchasing

Honorarium payments

An honorarium, and in some circumstances, reimbursement of expenses is often paid to a lecturer or speaker when the presentation is not extensive or the lecturer does not ask for compensation. SUNY policy does permit the payment of honoraria but limits to $100.00 per day plus expenses

Advance accounts

The campus has an Advance Account to fund rush or emergency orders. This includes, but is not limited to, travel, registration, salary and prepaid orders. Advances should be used on an exception basis. Please note on the purchase requisition if rush processing is required, or call X6752 to discuss. We will advise you of the best way to expedite the order

Wire transfers

We have the ability to wire transfer funds to most international locations. A notation needs to be made on the purchase requisition if a wire transfer is required. In some cases the wire transfer will not be any faster than first class or air mail. There is a fee for processing wire transfers. The bank name, address, account number, the name of the account, and routing number are required to accommodate wire transfers.

Non-Resident Alien payments

Payments to non U.S. citizens can be very complicated. Generally payments to nonresident aliens take approximately two weeks. In certain cases we cannot make payments for honorarium or travel costs. Please consult with the Sponsored Funds staff before engaging nonresident aliens. The following provides general guidance with the process for making payments to nonresident aliens:

-The Form "Request for Alien Information" is completed.

-Form "W-8 Certificate of Foreign Status" is completed by all non-resident aliens. All non-resident aliens must have an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN) before payment can be made.

-Based on the information received it is determined if the payment is taxable or exempt from taxation. If the individual is from a country that has a US Tax Treaty http://www.irs.gov/ind_info/treaties.html, Form "8233 Exemption from Withholding from Compensation" is completed. Upon submission of the Form 8233 to the IRS we will release payment to the non-resident alien after a mandated 10 day waiting period. If the United States and the non-resident alien's country do not have a tax treaty, all payments are subject to a 30% pre-withholding tax. Either the payment is taxed and the resulting payment to the non-resident alien decreased or the payment can be increased to cover the tax. In some cases payments to travel agencies are also taxable. Since each payment can be unique it is important to consult with Sponsored Funds prior to engagement of a non-resident alien.

The Visa Waiver Program (VWP) enables citizens of participating countries to travel to the U.S. for tourism or business for 90 days or less without obtaining a U.S. visa. To see entire text click this link: http://travel.state.gov/vwp.html

Tax exemption status

As a non-profit organization, the Research Foundation is exempt from sales tax on goods and services purchased or obtained within New York State. Tax exempt forms are available for Research Foundation purchases or payments. Most businesses in New York accept the tax exempt form. If tax exemption is not waived by the business, provide a notation on the reimbursement request and consideration of reimbursement for the tax will be made. Many businesses outside of New York state do not accept the tax exemption waiver. The Research Foundation does reimburse out of state taxes.

Endorsement on contractual documents

The campus has identified persons authorized to sign on behalf of the Research Foundation. It is imperative that if you are forwarded any type of document for an authorized signature, this could be maintenance, lease, rental and software agreements, changes to project terms and conditions, etc that you not sign but forward to Sponsored Funds for review and endorsement. An authorized signatory on the document provides you with the administrative and legal protection under the corporation. Please contact the Director Sponsored Funds Administration or the Associate Vice Provost for Research if there are questions.