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Off-campus vendor agreements
How to Disburse Your Grant Funds Off-Campus
This page is designed to help you through the process of moving your grant money where it needs to go off-campus. It lays out some of the most common ways to compensate or recognize community collaborations. Note that the following information is a general guideline of how to disburse your grant money, and it is always advised that you speak with your department’s financial liaison and/or your Business Service Center (BSC).
|
Type |
When to Use |
Method |
Process |
Other Important Information |
|
Honorarium |
Intended as a gift to an individual for a service that is rendered normally without charge, there is no research being conducted, and no long-term collaboration |
Disbursement Voucher |
Email Correspondence with BSC |
Could have negative tax implications for the recipient, there are limits on how many honoraria individuals can receive - for further questions contact your BSC
If there is any type of invoice, bill, or contract, an Honorarium cannot be used
If anyone is paid more than $600 in a fiscal year, they will get a 1099 |
|
Donation |
One-time compensation to an entity for a collaboration that does not involve research with the partner, and should only be used for domestic collaborations |
Disbursement Voucher |
Email Correspondence with BSC |
Payments over $500 must be approved by the Community Relations Office If there is any type of invoice, bill, or contract, a donation cannot be used |
|
Independent Contractor Agreement |
Collaborations with an individual, sole proprietor, or single member LLC |
Purchase Order |
*See process below (please refer to "International Consulting Agreements" section on this page for international work) |
Work performed overseas can present a range of legal, financial, safety, and logistical considerations that create complications and could add expenses. Please contact your unit's designated contract administrator to initiate an agreement prior to commencing the work. |
|
Professional Services Agreement (PSA) |
When collaborating with an entity such as a corporation, LLC, LLP, or non-profits for a year or less, for domestic use only |
Purchase Order |
*See process below |
Use the International Independent Consultant Agreement (PDF, 497 KB) for foreign entities (companies) performing work within and outside of the U.S., to address tax, liability, and contract terms and conditions. |
|
Community-Engaged Service Agreement (link to agreement below) |
This agreement uses language that is more conducive to community-engaged collaborations. Can be used in place of the PSA |
Purchase Order |
*See process below |
Reach out to Risk Management and Insurance if a change in the Indemnification or insurance policies in this agreement is required, they are happy to adjust those portions to fit community partners' needs |
|
Guest Speaker Fee |
Used to compensate an individual for a single speaking event |
Disbursement Voucher |
Email Correspondence with BSC – include vendor information and invoice/bill |
|
Note:
- For further information on transaction and signature authority see University policy 4.2
- It is advised to start the contract process as soon as possible, and approval time can vary greatly
- Please do not initiate work until a signed contract is in place
- Please ensure you liaise with the University Counsel’s Office prior to signing any contracts other than those listed above
Processes for Domestic (U.S. vendor) engagement:
- Disbursement voucher: should be done in collaboration with your BSC
- * Purchase Order (PO)
- Steps for a successful PO:
- Send the Service Provider Questionnaire to vendor
- Once the Service Provider Questionnaire is sent back, complete the Service Provider Evaluation Worksheet
- Complete the ICA (Independent Consultant Agreement) or the PSA (Professional Services Agreement) with the vendor (*do not sign at this stage*)
- Send all of the documents mentioned above to your BSC
- Note: if the request is over $25000, the first step is to speak with your BSC about going through the bid process
- For more information visit the Contracts for Services Page on the DFA site
- Steps for a successful PO:
Think you need to establish an Memorandum of Agreement (MOA)? Consider the following:
- MOA are used to facilitate an intended substantial collaboration between Cornell University and another university, institute, foundation, or similar entity
- MOA cannot themselves be used as a way to transfer money to a counterparty
- If conducting a project internationally, an MOA must go through the University's contract management system; contact your unit's designated contract administrator for assistance
- Project Agreements (PAs) are added under the initial MOA to define the scope of work and specific projects, scholarly exchanges, or joint research
- All MOA and PAs must be approved and signed by the authorized signatory for your unit (typically the college/school dean or the vice provost for international affairs)
- For international MOA and project agreements, please contact your unit's designated contract administrator for assistance
- For domestic MOA inquiries, reach out to OEI’s Domestic Logistics Coordinator, Sarah Hazlitt (seh286@cornell.edu)
Memorandum of Understanding (MOU)
- If a potential collaborator sends you a Memorandum of Understanding (MOU) or any other type of contract (even if it purports to be non-binding), please liaise with the appropriate office listed above
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