Sponsored Programs is responsible for the purchase of supplies, materials, equipment and contractual services for all sponsored (i.e., grant- and contract-funded) projects at SUNY Oneonta. In addition, responsibilities include all payments to vendors, processing of stipend and travel requests, and maintenance of 1099 tax information. We also act as the primary contact for the SUNY Research Foundation for supplier records and non-payroll check issuance.
Sponsored Programs (SP) is responsible for ensuring that all expenditures comply with applicable Sponsor, Research Foundation (RF), SUNY and Federal guidelines. This is done by reviewing the terms and conditions of awarded contracts and grants and maintaining current knowledge of federal rules and regulations.
SP staff are committed to a maximum two-week turnaround for purchases, not including extenuating circumstances. Planning ahead helps assure that expenditures get processed correctly and in a timely fashion.
Principal Investigators, Project Directors and Project Administrative staff can monitor expenditures on awards through the RF Report Center. Training on the Report Center is provided to all appropriate staff upon receipt of an award.
Purchases with sponsored funds can be made by completing a RF Purchase Requisition. The purchase requisition should include a description of the goods to be ordered, quantity requested, price, suggested vendor(s), appropriate authorization, expenditure category and the project, task and award to which the items should be charged.
Quotes from the vendor, ordering forms, registration forms, or other descriptive materials should be attached to the purchase requisition.
Purchase requisitions should be sent to Sponsored Programs. A purchase order will be produced based upon the information submitted.
Upon receipt of the goods, the recipient should determine if the goods or services are acceptable or unacceptable. If the order is acceptable and complete, please sign and return the receiving copy to SP office so payment can proceed.
If the goods or services are unacceptable, contact Sponsored Programs.
Purchases from Vendors who do not accept Purchase Orders
The SP office has a corporate credit card account that can be used to charge expenditures on sponsored programs. A purchase requisition should be completed according to the instructions above and submitted to Sponsored Programs where the charge will be processed on the corporate credit card account.
For purchases charged to the SP corporate credit card account, a receiving copy may not be sent. In that case, please send a packing slip to the Sponsored Programs office and advise if the items shipped are complete and acceptable.
Purchases of Equipment and Non-consumable Supplies
Purchases of equipment and non-consumable supply items require the following to be submitted to the Sponsored Programs Office upon receipt of the item: 1) Equipment Loan Form; 2) Email picture of item serial number.
Out of Pocket Expense Reimbursement Policy
Purchases paid for out-of-pocket are discouraged from vendors who would accept a purchase order or a purchase via the corporate credit card. In those cases when a vendor will not accept a purchase order or a corporate card, then RF personnel may make project-related purchases with personal funds (including personal credit cards) if purchases comply with the requirements of the RF, SUNY and the Sponsor. Requests for reimbursement should be submitted on an RF Purchase Requisition with the original receipts, description, and purpose of the purchase, the amount requested for reimbursement, appropriate authorization, name and address of the person to be reimbursement, the expenditure category and appropriate project, task and award number to which the expenditure should be charged.
Please be advised of the following for out-of-pocket purchases with personal funds:
- Prior to making any out-of-pocket purchases, a Tax Exempt Certificate should be obtained from Sponsored Programs and used when making the purchases.
- If the vendor would have accepted a tax exempt certificate and it was not used, taxes paid in accordance with the purchase may not be reimbursed.
- If the vendor does not accept the tax exempt certificate and taxes are paid, then an explanation for the denial of tax exemption must be included on the purchase requisition for consideration of re-imbursement.
- Reimbursement may be disallowed if it is determined that the purchase violated any Federal, Sponsor, RF or SUNY regulations.
PROCEDURE TO ENGAGE AN INDEPENDENT CONTRACTOR
The Principal Investigator (PI) (party engaging contractor) takes the following steps at the time of negotiation and prior to any commitment to an Independent Contractor (IC).
Review the definition and classifications of an IC to determine if payment should be made as an employee or IC (see Definitions and Classification sections below). Contact Sponsored Programs for guidance.
Submit a completed Independent Contractor Services Form which includes the following to the Sponsored Programs Office:
- a detailed description of services to be provided a statement detailing the selection process to choose the most qualified consultant
- a justification for reasonableness of cost
- A statement of work or list of deliverables
- Worksheet “Classifying Workers as Independent Contractors or Employees”
- If IC is also a SUNY or other NYS agency employee, a SUNY Addendum Form completed by the IC must be submitted
For contracts of $10,000 or more the PI should submit all of the above and in addition:
- a complete scope of work in place of a list of deliverables above
- confirmation of Certificate of Liability Insurance
Sponsored Programs will:
- Send IC a letter of agreement and W-9 form (Request for Taxpayer Identification Number and Certification).
- If over $10,000 SP will send a contract
- Upon receipt from the IC of a signed letter of agreement and W-9, SP will provide IC with a Purchase Order.
- Make payment to IC from a PI approved invoice.
If the Contractor is a foreign citizen:
- A W-8BEN form (Certificate of Income Tax Treaty Exemption) will be required in place of the W-9
- A W-7 form (Application for IRS Individual Taxpayer Identification Number) is required if contractor does not have a U.S. Taxpayer Identification number
- A copy of Visa is required
Independent Contractor: An individual who, under agreement, performs a service and who is subject to the controls of the other only in regard to the result achieved.
- The contractor:
- Is not controlled in regards to the manner or means by which their services are performed.
- Services provided are typically task oriented, specific in nature, short in duration, or sought based on expertise.
- In general, an independent contractor performs work subject to the control and direction of the hiring organization only as to the RESULT of the work, and not as to the MEANS of performance.
- For compensation of services over $20,000, three quotes should be obtained. In some instances, a single (sole) source procurement may be justified, despite the fact that competition exists, because of limiting circumstances, e.g., experience or service of the contractor. Determination of qualification as a sole source cannot be made until documentation is submitted and reviewed by Sponsored Programs. A formal contract with a detailed Scope of Work will be completed
- In all cases, engagement of the contractor is not authorized until all required approvals from Sponsored Programs offices are obtained.
Compensation is paid at an agreed upon amount or rate, for a given task.
Employee: Generally speaking, an employee is subject to the control of the employer as to what work must be done and how the work must be done. It is not necessary that the employer actually direct or control the manner in which the services are performed; it is enough that the employer has the right to do so. Services performed are in the course of the general business of the employer, typically performed on-site for a long or indefinite period of time. Compensation is usually made on a time or task basis.
If an employee is misclassified as an independent contractor, there are potential penalties that could be assessed by the Internal Revenue Service (IRS) or New York State Department of Labor, by potential Workers' Compensation or unemployment claims, and by liability or malpractice suits.
The worksheet Classifying Workers as Independent Contractors or Employees was developed from IRS guidance Twenty Factors of the "Common Law Test" to assist in the classification process. If there are more than one or two “Yes” answers to these questions, the individual to be engaged most likely would be classified an employee.
SUNY and other NYS employees are permitted to be compensated as an independent contractor ONLY if ALL of the following criteria are met:
- The proposed contractor or lecturer is not a member of the Project Director’s own department.
- The work to be performed will be in addition to the employee’s normal obligation.
- Approval by the employee’s Department Chair and Dean, or Vice President is also required.
A SUNY employee must fill out and submit a SUNY Addendum Form and obtain the supervisor’s signature to indicate that these services will not interfere with their current State responsibilities.
Research Foundation employees are not eligible to perform services as an independent contractor. Work performed outside the normal obligation may qualify as extra service.
Payment for Services
In accordance with applicable federal regulations, payment for services should not be made until service has been completed. Upon completion of services, an invoice should be submitted by the Contractor.
Requests to reimburse contractors for related travel expenses, not accounted for in the established fee or rate, shall be named in advance in the contract or Independent Contractor Services Form, and require receipts and the appropriate Research Foundation requisition or travel form. Travel reimbursement payment without receipts is allowable if previously agreed upon, but is included in the consultant payment as taxable income.
When using per diem allowances, rates from the U.S. General Services Administration must be used for meals and lodging http://www.gsa.gov/portal/. Current IRS rates must be used for mileage.
A participant stipend is provided as non-wage compensation to an individual who is engaged in an academic training or education event, or to a person who is a subject in research involving human subjects.
Participant stipends are subject to Internal Revenue Service (IRS) reporting requirements for miscellaneous income (1099 or 1042).
A participant stipend form should be completed and returned to Sponsored Programs.
An honorarium is paid to a lecturer or speaker when the speaking engagement is not extensive or the lecturer does not ask for compensation. Under these circumstances the Project Director may offer to pay expenses plus an honorarium or just an honorarium.
A person cannot have both an employment relationship and an Independent Contractor relationship with the same organization. For this reason, a SUNY-paid employee who gives a SUNY-sponsored lecture would be compensated through SUNY's extra-service payroll process. Likewise, a Research Foundation employee who gives a Foundation-sponsored lecture would be compensated through the Foundation's payroll process.
The College follows the SUNY policy and the Research Foundation Policies for payments of Honoraria and Extra service:
If the service provider is a . . .
Then . . .
SUNY academic or professional employee
the honorarium payment must comply with SUNY policy
non-SUNY service provider
Up to $2,500 - Pay as Honorarium
Research Foundation employee
an honorarium cannot be paid. Extra Service Payment may apply.
Cellular Mobile Communications Policy for Sponsored Programs
Policy Statement: SUNY Oneonta permits cellular phone plan reimbursement funded by sponsored programs under specific conditions. Basic cell phone plan costs may be covered when a plan is deemed necessary to an employee’s work under the sponsored program by the Project Director. The reimbursement of cell phone expenses made on a personal cell phone must be directly related to activities required for a sponsored program. Cell phones shall be contracted for and purchased by the employee and the appropriate amount of reimbursement determined by the Project Director. Final approval for all reimbursements is made by the Office of Sponsored Programs.
On an exception basis only, Research Foundation owned cellular devices will be maintained for situations where the device is used exclusively for program-related business.
Applicability of the Policy: This policy applies to all individuals who are engaged with externally sponsored programs funded through the Research Foundation, and who have cell phone expenses paid by externally sponsored funds.
Policy elaboration: SUNY Oneonta permits the reimbursement of cell phone expenses made on a personal cell phone for activities required for a sponsored program awarded to the College and managed by RF under the following circumstances:
The cost of the phone charges must be requested in the award budget and justified in the proposal submitted to the sponsor. If federally funded, the phone must be allowable under A-21.
The cost must be allocable such that the sponsored project to which expenses are charged must benefit from the use of the cell phone.
A phone plan is required in order to properly carry out assigned job duties.
All cellular devices that have personal usage on them must be employee-owned with no liability to the college.
The allowance is for the monthly recurring costs incurred for having a cellular device and not for any equipment or activation fees.
- The appropriate plan/established reimbursement amount for necessary calls will be selected by the Project Director and submitted to the Sponsored Programs Office for approval via the Authorization Form for Sponsored Program Cellular Phone Reimbursement.
- The Project Director is responsible for selecting as reimbursement amount the most cost-effective phone plan that will accommodate the minutes necessary for the conduct of business related to the sponsored program.
- A Justification Statement and verification of cost from the Project Director must accompany the Authorization form to document the reimbursement amount.
- Reimbursement will be made upon submission of a Research Foundation purchase requisition, accompanied by the front page of the phone bill indicating the dates of service.
- Overage costs for minutes over pre-approved plan will not be reimbursed.
- No tax will be reimbursed.
- Any phones contracted and paid directly by the College (for work-required reasons such as Hotline phones) may only be used for business calls.
Exceptions to this policy must be addressed in writing and approved by Sponsored Programs.
Direct questions related to the daily operational interpretation of this policy to the Director of Sponsored Programs, Denise Straut, at firstname.lastname@example.org.