Procuring Resources for Your Project
This section includes details on payroll administration, buying and paying for travel, goods and services.
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Payroll Administration
Roles and responsibilities for payroll administration are set by each school or department. Most payroll administrative duties, including approval for changes in pay, are handled at the departmental level.
Stanford uses three systems to manage employee pay.
- A PeopleSoft Human Resources Management System record establishing the type of job held, the rate of pay, and the type of pay (salary or hourly)
- an Oracle Labor Distribution record establishing the account (PTA) or accounts to be charged for the employee's pay
- an Axess Timecard record used to track the employee's time worked and/or leave taken
Salary being charged to sponsored projects must be supported by documentation of a corresponding appropriate level of effort. Oracle Labor Distribution schedules must be completed accurately and salary charges certified quarterly through PI Certification.
Overview Purchasing Goods and Services
Stanford Financial Management Services supports and administers Staff financial activities, including purchasing goods and services and processing invoices. The Buying and Paying module in Fingate, the Financial Management Services website, provides detailed information, resources and procedures to support you in the purchasing process.
Buying and Paying for:
Paying for:
- Human Subjects
- Honoraria
- Business Expenses Not Requiring a Purchase Order (e.g., business meals, dues, permits/fees, etc.)
- Requesting / Updating Supplier & Payee Records
- Processing Invoices
Information about:
Methods for Buying and Paying
SmartMart - Transiting to Stanford Express Spring 2016
Provides the fastest avenue to fulfilling your school or department's shopping needs, There is no dollar limit for orders placed in SmartMart or Stanford Express. When you shop you take advantage of Stanford-negotiated pricing with preferred suppliers. Orders and invoicing are electronic and seamless.
P-Card (Purchasing Card)
Purchasing Cards are a tool for individuals making purchases under $5,000 on behalf of the University Payments for charges on a Purchasing Card are made directly from Stanford to the bank.
Zip Purchasing
Non-Catalog Requisition via the Stanford Express system over $5,000.
Non-PO Payment Requests (formerly IOU)
There are times when you need Stanford to cut a check to pay a supplier or other type of payee directly for certain expenses that do not warrant a formal purchase order, or for which negotiation by the purchasing department adds no value, e.g., business meals, dues, government fees, permits, etc. These types of payments are made via Non PO Payment Requests in the Expense Requests system.
Financial Support Center
A single point of friendly and professional service on Fingate for questions related to purchasing such as the following
- SmartMart/ Stanford Express orders
- Purchase requisitions/orders
- Purchasing Cards (PCards)
- Supplier invoice payments
- Travel services including Stanford Travel MasterCard
- Reimbursements, including expense reporting
- Account (PTA) requests
- Cash management
Equipment
Funding for equipment comes from various sources including operating budgets, sponsored projects, and gifts. Equipment for which Stanford is accountable is intended to directly benefit the academic and research mission of the University and enable the associated administrative processes.
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The capitalization threshold for Stanford-owned equipment is $5,000
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Capital equipment must meet all of the following criteria:
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Acquisition cost $5,000 or greater
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Useful life of more than one year, and be an
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Individual, stand-alone, moveable, tangible item
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Software acquisitions <$500,000 are not capitalized they are expense items.
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Title to equipment vests with either the University or with the project sponsor, title does not reside personally with faculty or staff
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Title to gifted or donated equipment vests with Stanford University
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Accountability for Stanford-owned equipment resides with the Department
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Accountability for equipment on Sponsored Projects resides with the Principal Investigator (PI)
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The acquiring organization must screen for available items to minimize duplicative acquisitions
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Responsibility for accurately coding acquisition transactions for equipment and approving funding sources rests with the originator and the approvers
All acquisitions must be allowable, reasonable, allocable, and consistent in accordance with University policy and applicable terms and conditions of sponsored agreements. If you are purchasing equipment using grant or contract funds read the terms and conditions regarding allowability prior to making a purchase.
There are a variety of methods by which equipment is acquired at Stanford. The method of acquisition used is determined by factors such as source of funding, type of project, and duration of need. In general order of frequency, acquisition methods are listed below.
Method of Acquisition | Description |
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Purchase | Acquisitions made using the Stanford Purchasing systems. Source of funding may vary. |
Loan | Equipment provided to Stanford, free of charge, by a third party for a specific period of time. Ownership is retained by the lender. |
Incoming No-Cost Transfer | Equipment to which ownership and accountability is transferred to Stanford by another entity. |
Lease | Contracts under which a Stanford has committed to make cash payments for use of an asset (e.g. equipment) for a period greater than one year and total payments of $5,000 or more over the lease period. |
Rental |
Contracts under which Stanford has agreed to cash payments meeting either:
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Fabrication | Specialized equipment not commercially available which require design, development, construction, and Stanford labor over a specified period of time. Usually fabricated within the scope of work of a sponsored project. Aggregate cost of components is equal to or greater than $5,000. |
Donation | A gift of equipment to Stanford. No performance expectations associated with the gift. |
Sponsor or Gov't Furnished |
Equipment provided by a sponsor for use on a specific research project. May be provided directly by the sponsor, or via a third party designated by the Sponsor. Ownership usually remains with the sponsor. |
Travel
Stanford Travel is the preferred travel management service for Stanford's travelers and arrangers. The goal of Stanford Travel is to enhance the user experience, while also managing risk and saving money. Working with Orbitz for Business, Stanford Travel offers an array of travel services that meet the university's specialized needs.
Foreign Travel on Federally Sponsored Projects
Federal regulation and Stanford Policy require (with some exceptions) travelers who will be reimbursed by federally sponsored projects to use U.S. flag air carrier service. This is known as the "Fly America Act”.
An exception to this rule is contained in the "Fly America Act". This exception is called the "Open Skies Agreement". The Open Skies Agreement allows travelers who will be reimbursed by federally sponsored projects to use European Union (plus Norway and Iceland), Australian, Japanese, or Swiss airlines.
The Open Skies Agreement does not apply if travel is funded by the Department of Defense (DOD) or by a department of the U.S. Military. Travel funded by the DOD or by a U.S. military department must be on a U.S. flag air carrier.
For more information see: Fly America Act and Open Skies Exceptions. From this page you can click on a destination for specifics on allowable conditions and air carriers.
- If travel includes stay in Cuba, Iran, North Korea, Sudan, or Syria, travel plans must be reviewed by the University Export Control Officer. See Policy Notes: Export Control/Trade Sanctions Compliance Requirements for more information.
- Follow International Travel Policy issued by Provost
For assistance contact the Financial Support Center at 3-2772.
Services
There are special considerations, government regulations, and University policies that pertain to hiring service providers, contractors, and consultants.
A Stanford contract must be issued by the Contracts Group for all construction-related projects (including architectural services) of any dollar amount, and for other projects performed by contractors, consultants, and service providers where the total amount to be spent is greater than $25,000. It is in the best interest of the University to have the following items clearly committed to by the supplier:
- the scope of services or deliverables
- use and ownership of data
- acceptance criteria
- guarantees/Warranties
- identification of who specifically will provide the services
- payment terms
- insurance requirements
- commissioned work when the results for the work may be copyrighted
- performance schedule
- terms and conditions from funding sponsor required to "flow-down" to a subcontract
Prior to the start of any work, make sure a Stanford-generated contract is in place. A contract generated by an outside firm is usually not acceptable, and if one is presented to your department for the contemplated services/work, please do not sign it, instead attach it to your requisition.
Subawards
A subaward is a formal written agreement between Stanford University and another party to perform a portion of the statement of work under a Stanford sponsored project.
A subaward must include a clearly defined, intellectually significant Statement of Work (SOW) to be performed by the Subrecipient. The Subrecipient's SOW is performed by its personnel, using its own facilities and resources. Work is usually performed at the Subrecipient's site.
Stanford requires PIs (Principal Investigators) to submit specific documents to their IO (Institutional Official) in order for a named Subrecipient to be included as part of a proposal. The IO will not endorse a proposal until these elements are on file.
Subrecipient proposal elements are expected to conform to the sponsor’s requirements for Stanford's prime proposal. PIs are responsible for obtaining all materials from their Subrecipient in the correct format.
Required Elements to Include in a Subaward Proposal
- Subrecipient's Statement of Work, including a clear description of the work to be performed, the proposed timelines, and deliverables.
- Subrecipient's Budget and Budget Justification, including the Subrecipient's direct and indirect costs, calculated using the Subrecipient's approved F&A and fringe benefit rates, and verifying any committed cost sharing.
- An OSR Subrecipient Commitment Form (OSR Form 33, downloadable Word file), completed and signed by the Subrecipient's institutional official.
- A Fair and Reasonable Cost Analysis - Only for Subawards issued under Federal Contracts (OSR Form 45, downloadable Word file), as applicable, signed by Stanford's PI. The PI's signature on this form certifies that he/she has selected the Subrecipient in accordance with this policy and determined that their costs are reasonable with respect to the proposed SOW. In addition, the PI certifies that s/he has reviewed the Subrecipient's proposed budget to ensure that all proposed costs are allowable under the Sponsor's anticipated terms and conditions.
- PIs are responsible for working with their Subrecipients to make any necessary modifications in proposed budgets that may be required to bring them into conformance.
- Any additional elements that may be required by Stanford's sponsor (e.g., Certificate of Current Cost or Pricing data, Sole Source Justification, a biosketch of subrecipient key personnel, etc.)
- A Stanford PI or designee may not authorize a Subrecipient to begin working without a fully executed subaward agreement in place.
- After an award has been accepted by Stanford University, the PI or his/her authorized administrator submits a requisition in Oracle Financials identifying the proposed Subrecipient.
This request documents the amount authorized by the PI for the subaward and delineates the desired period of performance. OSR is not authorized to issue a subaward until an approved requisition and specific documents are on file, including:
- Copies of the Subrecipient's F&A and Fringe Benefit rate agreements
- Copies of the Subrecipient's human subjects approval and approval to use animals
- If applicable, a copy of the Subrecipient's most recent A-133 audit or link to its record on the Federal Audit Clearinghouse, or completion of the Audit Certification and Financial Status Questionnaire (OSR Form 47, downloadable Word file), if not provided at the time of proposal
- Any applicable requested information (Subrecipient Commitment form, updated Certificate of Cost or Pricing Data, Small/Small Disadvantaged Business Plan, audit information, etc.), Sole Source Justification, if required
- Any special requirements the PI wishes to impose (prior approval requirements, report formats or due dates, etc.)
Requesting Modifications to Existing Subaward
Modifications to a subaward are issued by OSR in response to requisitions submitted through Oracle by a PI or his/her designee. This includes modifications to the Statement of Work, incremental funding, rebudgeting, extending or reducing the time for performance, and other changes in the terms of a subaward.
PIs may not reduce obligated funding or prematurely terminate an approved subaward unless they submit a corresponding requisition through Oracle to request a formal change in their subaward. In such cases, Stanford is required to honor the terms of the subaward, which typically require an advance notice period.
In rare instances, OSR may initiate action on a subaward without a corresponding requisition; typically these changes involve urgent action on a subaward that is initiated by the University.
Approving Subrecipient Invoices
PI's must approve a Subrecipient invoice for payment and review expenditure statements or otherwise ensure that payments to Subrecipients are made in a timely manner, consistent with the terms of the subaward and approved invoices. The Stanford PI’s signature on the invoice is required to certify that he/she approves payment of the invoice, attests that the charges appear reasonable and that progress to date on the subaward is satisfactory and in keeping with the statement of work. Subaward invoices require the following statement to accompany the PI’s signature: “In signing below I approve payment of this invoice and attest that the charges appear reasonable, and progress to date on this project is satisfactory and in keeping with the statement of work.”