Financial Stewardship
Student organizations that are recognized by MIT are given the autonomy and responsibility to spend their funds as they see fit, providing they comply with the law and adhere to all existing MIT policies and guidelines. The Treasurer and Financial Signatories of any student organization have a responsibility to the group to manage the accounts ethically and to use funds in alignment with the organization’s mission.
All funds associated with student organizations are considered Institute funds, including those raised through fundraising efforts, membership fees, or event revenues. These funds must remain within MIT’s financial system and are subject to internal and external audits. Funds cannot be deposited into non-MIT accounts, ensuring they are backed by the Institute.
General reminders:
- Do not sign contracts on behalf of your student organization or MIT. Your signature does not represent the Institute and all liability will fall on the unauthorized signatory.
- The use of unauthorized financial platforms like Venmo, Cash App, or GoFundMe for collecting funds is prohibited.
- Purchasing gift cards or reimbursing a member for the purchase of gift cards is prohibited.
- Designs for branded merchandise using MIT trademarks must be approved by student-merch@mit.edu before the merchandise can be purchased.
Financial Access & Signatories
A student organization’s Financial Signatories are students who are authorized to access their student organization’s financial accounts and process financial transactions on behalf of their student organization. For financial access students will need to complete the Financial Access Form annually.
To become a Financial Signatory for a student organization, a student must be listed as an officer for that organization on Engage and earn a score of 100% on the Student Organization Finance Manager Quiz during the registration or re-registration process. SOLE staff will assign the Financial Signatory tag on Engage after the quiz has been reviewed and approved.
Requests for Payment (RFPs)
RFP reimbursements allow organization members to recover personal funds used for organization expenses. All RFPs must be submitted within 60 working days of purchase. Late submissions may result in delays or denial of reimbursement. RFPs are not used for travel expenses, which are instead handled using Concur.
Note regarding sales tax: MIT does not reimburse sales tax in states where tax exemption is recognized. Inform vendors of MIT’s tax-exempt status before purchases. Access MIT’s tax exemption forms (ST-2 and ST-5) on the VPF website.
Buy-to-Pay (B2P) and Purchase Orders
The B2P platform is used for purchasing goods or services via purchase orders (POs). Submit requisitions through B2P, which are reviewed by SOLE and VPF before generating a PO for the vendor. Depending on the level of complexity in the PO, it could take anywhere from 15 working days to more than 45 working days for it to be processed and approved. Students are required to meet with SOLE if a PO involves contracts, liability forms, or other specialized paperwork.
Purchase orders are used when any of the following conditions apply:
- The total payment exceeds $5,000
- Purchasing a computer in excess of $1,000
- Purchasing equipment in excess of $3,000
- Contracts need to be reviewed
Required documents:
- Selection of Source Form and competitive bids, if payment is greater than $10,000
- A formal invoice (not a quote/estimate)
- Contracts or statements of work, if applicable
Contracts
Please email sole@mit.edu before initiating any contracts. Contracts protect organizations and MIT from liability and clarify expectations for services. The contracts team in the Office of the Vice President for Finance advises, reviews, drafts, negotiates, and executes commercial agreements for the procurement of goods and services at the Institute. Student organizations should use the MIT Student Group Contract for external services.
Guidelines:
- Only authorized personnel may sign contracts
- Contracts involving payments must go through B2P
- Non-payment contracts must be reviewed by SOLE
- Allow at least 30 working days for review of external contracts
Controlled Value Cards (CVCs)
A CVC functions like a debit card for purchases of up to $3,000, excluding travel and vendor services. Each student organization may apply for one CVC through the Control Value Card Form. If your application for a CVC is approved, you will be required to complete additional training as having a CVC necessitates additional financial responsibilities.
Internal Transfers
The internal transfer process allows student organizations to transfer money to other student organizations and other MIT departments for specific expenses. Transfers may be used to correct an accounting error when allocating expenses to a particular account, or when sharing revenues and/or expenses when collaborating with another student group. This process is facilitated by completing an Internal Transfer Form. Student organizations can only transfer funds into their main cost objects. Student organizations cannot transfer funds into funding cost objects, as those will reset at the end of the semester.