GAP 200.132, Engaging and Paying for Consulting Services Received from Corporations or Partnerships

Contents

1. General
2. How to Proceed
3. Detailed Instructions

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FOR CHARGING A RESTRICTED GRANT OR CONTRACT, PLEASE REFER TO GAP 200.370 PURCHASING ON SPONSORED FUNDS.

I. General

A corporation or partnership may be engaged to give professional advice or to render consulting services for a fee. Since a corporation or partnership cannot be an employee it is not necessary to complete an independent contractor checklist.

Payments to corporations, except for health/medical payments, and attorney fees, are not reportable to the Internal Revenue Service. However, payments to partnerships are reportable. Thus, the payee's name, permanent address, and employer identification number (EIN) are required for payment to a partnership. The G/L account used for these types of payments is generally 691600.

II. How to Proceed

A. Engagements Less than $2,500

When the total cost of the engagement will be less than $2,500 and does not involve service for patient care, access to patient information, printing or design work, temporary staffing services, travel agency services, construction or catering: 

Pay for the service using an Accounts Payable Check Request, providing information regarding nature and scope of work performed, rates, etc. on the Check Request form. GAP 200.136, Accounts Payable Check Request provides information on using and completing the form.

B. Engagements Grader than $2,500

When the total cost of the engagement will be more than $2,500 or involves services for patient care, access to patient information, printing or design work, temporary staffing services, travel agency services, construction or catering:

For Restricted Grant or Contract WBS elements

• Complete a Research Support Services Agreement (RSSA), appropriate Rider and a Buy@Duke Text Shopping Cart. Attach all applicable forms and route through the approval workflow. RSSAs will be automatically routed to the appropriate Pre-Award Office.

For charges other than to a restricted code, or services for patient care, access to patient information, printing or design work, temporary staffing services, travel agency services, construction or catering

• Complete an Outside Services Agreement (OSA) and attach to a Buy@Duke cart. It will be routed to the appropriate administrative department via workflow.

III. Detailed instructions

A. Creation

REsponsible Party

Department Initiator

Applicability

All Cost Objects

Steps

1. For engagements costing:
   1. Less than or equal to $2,500: 
      • If the total cost of the engagement will be less than or equal to $2,500 and does not involve service for patient care, access to patient information, printing or design work, temporary staffing services, travel agency services, construction or catering:
        • You do not need to follow Steps 1b through 7 through the rest of this procedure. 
      • After the services are performed, pay the company using an Accounts Payable Check Request, providing information regarding type of service performed, rates, etc. Refer to GAP 200.136, Accounts Payable Check Request for assistance.
   2. More than $2,500
      • When the total cost of the engagement will be more than $2,500 or involves service for patient care, access to patient information, printing or design work, temporary staffing services, travel agency services, construction or catering, complete the OSA. Proceed to Step 2.
2. Obtain departmental/program approval on the RSSA/OSA from the Department Chair/Director.
3. Complete the Buy@Duke Cart.
4. If the cost object charged to:
   1. A restricted grant or contract (30X to 35X, and 38x), forward all forms to the appropriate Pre-Award Office (Office of Research Support or Office of Research Administration), for approval.
   2. A cost object that is not a restricted grant or contract, submit forms to procurement Services and skip to step 8.

If there are other review/approval requirements for your department or school, this procedure does not exempt those approvals.

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B. Review for Restricted WBSE

REsponsibile Party

Pre-Award Offices

• Office of Research Support
• Office of Research Administration

Applicability

Restricted Grants/Contracts Only

Steps

5. Ensure that intended purchase of the consulting service is in compliance with the provisions of the grant or contract before a Purchase Order is issued.
6. Obtain agency/sponsor approval if necessary.
7. Forward approved package to Procurement Services.

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C. Review for All Cost Objects

REsponsibile Party

Procurement Services

Applicability

All Cost Objects

Steps

8. Review forms (RSSA/OSA and Buy@Duke Cart information for completeness, accuracy and compliance with established Policies.
9. Provide final approval of the RSSA/OSA, and sign the RSSA/OSA on behalf of Duke.
10. Issue a bona fide contract (Purchase Order and attachments and the RSSA/OSA) to the consulting firm.
11. Distribute a copy of the approved RSSA/OSA to the department.

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D. Monitoring

REsponsibile Party

Department Initiator

Applicability

All Cost Objects

Steps

12. Monitor performance, evaluate quality of the work, and review progress made against the project time schedule.
13. Ensure that the work is being done according to the terms and conditions of the contract.
14. Review and approve expenditures and billing, ensuring that billings are current and reasonable compared to progress reports, effort expended and travel incurred.
15. Approve the invoice for payment. Note the Purchase Order number on the invoice and forward it to Accounts Payable.

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e. Modifications

REsponsibile Party

Pre-Award Offices/Purchasing Services

Applicability

All Cost Objects

Steps

16. Any revision or modification to the signed contract must be in writing.
    1. Changes to restricted grants and contracts WBS elements must be approved by the Department, Pre-award Office, and Procurement Services. 
    2. Changes to other cost objects must be approved by the Department and Procurement Services. Upon agreement, Procurement Services will issue a change order to document the contract revisions.

 

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////EDITOR NOTE mt 6/26/24 -  references to (30x to 35x, and 38x) as restricted WBSE for research. They've expanded to 20x and A0x that match the same requirements of 30x. Needs to be revised.