Understanding Contracts

What is a contract?

In the most generic sense, a contract is an agreement that binds Mount Sinai with an entity. The internal business surrounding a contract will depend on what the agreement states. This includes documented requirements that need to be attached to the contract. Until all of the requirements are met and the wording of the transaction is approved, the agreement can be thought of as a purchase order requisition.

What are the advantages of using the online Contract Module?

Speed: By answering four questions, the initial workflow for a contract is established.  A checklist guides you through what additional documentation is needed to complete the process.

Accountability: Approvals that are needed can change once a transaction reaches an impasse. For example, an approver from Finance may need someone from another office (for example: the legal department) to review the wording of a document attached before they sign off. This all can be done within Sinai Central.

Accuracy:  Sinai Central will not allow the transaction to begin without the required information attached to it.

History: All contracts are saved online. At any time, you can look up the amount and status of previous contracts. Supporting details scanned and saved with the agreement remain with the transaction. Revisions to the contract can be reviewed by the user to see changes that have occurred throughout the approval process. 

How does this fit into my work flow?

The work flow for a contract is listed below. Steps 1 - 3 are necessary, but do not need to occur in the order listed; you can begin the form and save it as a draft.

1. Gather the fund numbers and object codes that will be used. Make sure all parties are aware of the transaction.
2. For auditing purposes, all contracts require documentation to be attached to the transaction. Gather supporting details (Examples: quotes, proposed contracts, terms and conditions from a vendor).
3. Instead of filling out a paper contract form, you will fill out and submit a form online.
4. Like all transactions, a contract will go through at least 3 stages of approval (fund owner, departmental, and finance). Some of these stages may occur instantly, dpending on the policies set up by your Department and Finance.
5. If there is a discrepancy between the fund types, object codes, or required documentation, the Finance department (and/or other business units - Human Resources, Legal, etc.) will intervene when appropriate.
6. Once a contract has completed its business, the requester receives an email stating that the contract has been approved and a Purchase Order is issued.
   

What do I need start creating an online contract?

To create a contract, you will need*:

• To activate your Sinai Central user account. You may already be using Sinai Central for purchase orders, human resource transactions, or general ledgers. If you've never used Sinai Central, see Activating Your Sinai Central Account.
• The fund(s) and object code(s) you will use. 

• Some of your time.

  * When funds are created, Finance determines how they can be expensed and what object codes are available. These "behaviors" may not allow a contract to be processed with the fund. Prior knowledge of these behaviors by the fund owner(s) and or administrator(s) may save time and effort down the line. An example of funding that "behaves differently" would be restricted versus unrestricted funds.
  

How do I create a contract?