Terms in bold font in the 2026 MGIC policies are defined in this consolidated list. Certain definitions have been taken verbatim from the public domain.
Acquisition cost: The total cost of acquiring an asset that includes the asset cost itself, as well as taxes, shipping, set-up costs, discounts, and operating system software, memory, or other additions listed on the asset invoice that are integral to the equipment.
Affiliate Entity: For purposes of MGIC policies only, an Affiliate Entity includes UMB affiliated business entities, as well as constituent institutions in the University System of Maryland (USM) that utilize MGIC services under the terms of a Memorandum of Understanding with UMB.
Allocable cost: A cost where the goods or services involved are chargeable or assignable to that award/project.
Allowable cost: A cost that is necessary and reasonable for the intended use and allocable to that award/project.
Award: A legal instrument – usually a cooperative agreement, grant, or contract – that provides financial assistance to a recipient to carry out a project.
Blanket Purchase Agreement (BPA): A method of acquiring a variety of goods and services under a long-term agreement when an order is issued, used to fill repetitive needs for goods and services at a pre-determined price over a specified period.
Capital asset or equipment: An item that (1) is durable with an expected service life of one or more years; (2) has a purchase value (cost) of US$5,000 or more; and (3) is complete in itself and does not lose its identity or become a component part of another article when put into use.
Commercial Goods and Services: Sold on the open commercial market, in which the vendor has a Standard Supplier Agreement or a “Click through Agreement.” Examples include but are not limited to lodging, airfare, conference fees, memberships, service subscriptions, transportation rental, and various other business services.
Competitive recruitment: A recruitment process where the position announcement is posted publicly and open for acceptance of applications for a reasonable minimum period of time, and selections to fill the vacancies are not pre-selected, but based on education, work experience, skills, training, demonstrated expertise in a particular field, aptitude, and performance during the interview process and on any related tests.
Conflict of Interest: A situation in which a person is in a position to derive personal benefit from actions or decisions made in the person’s official capacity; a situation in which the interests of the person compete with the interests of the Maryland Global Initiatives Corporation (MGIC), the University of Maryland, Baltimore (UMB), or a UMB Affiliate Entity.
Consultant: see Independent contractor
Contractor: A supplier of goods or services under the terms of a valid contract. A Contractor may also be referred to as a Supplier, Vendor, or Service Provider.
Director: A governing authority of the Maryland Global Initiatives Corporation (MGIC). As established and defined in the MGIC Bylaws, a Director may be Elected or appointed Ex-Officio, with duties and responsibilities, voting rights, terms of service, and limitations on liability described in the Bylaws, the MGIC Articles of Incorporation, and the MGIC Corporate Governance policy. MGIC Directors serve collectively on the MGIC Board of Directors.
Designated non-capital asset (DNCA): an asset valued at less than US$500 that merits additional stewardship – such as documentation showing assignment to an employee – because such assets are desirable, easily converted to personal use, and susceptible to theft. Typically, these assets are not fixed to a permanent structure and can be easily removed or carried, such as a tablet or laptop computer.
Discretionary Funds: Research investment or budgeted funds (versus sponsor award funds) that are used at the discretion of a Requesting Unit to fund activities for which MGIC support is sought.
Duty of care: Responsibility to provide all employees with a reasonably safe work environment, free from recognized hazards, and to warn of any reasonably foreseeable risks.
Duty station: An employee’s assigned place of work as documented in their employment agreement or as amended in writing.
Effort reporting: The process used to commit effort, charge salary expense to the associated funding source, and certify effort to support those charges.
Employee: An individual person engaged by a business or employing organization for wages or salary. Employees may be engaged on a full-time or part-time basis.
Employer of Record (EOR): A professional employment firm that takes on the role of managing payroll, benefits, and risk management for a company's employees on its behalf, relieving the company of these responsibilities.
Fraud: Wrongful or criminal deception that is intended to result in financial or personal gain or to deprive a victim of a legal right. Fraud can violate civil law or criminal law, or it may cause no loss of money, property, or legal right but still be an element of another civil or criminal wrong.
Family Member: In the context of a vendor or subrecipient organization receiving contracts or payments from MGIC, Family Member includes but is not limited to spouses, domestic partners, parents, siblings, biological and adopted children, grandparents, grandchildren, aunts and uncles and their children (first cousins), nieces and nephews, parents-in-law, sons- and daughters-in-law, and brothers- and sisters-in-law.
Foreign National Employee: An employee hired through the MGIC EOR, who is not a citizen of the Country in which he or she is employed. Foreign National employees are required to comply with the Country’s residency and work authorization laws, and must meet all immigration requirements prior to engagement. They may also have other benefits beyond those provided to local employees, as stipulated in the employment agreement.
Full-time employees: regularly scheduled to work at least forty (40) hours per week, or one hundred (100) percent of the full-time work week as defined in the employment contract. Benefits, such as annual and sick leave, are fixed, provided for full-time employees as mandated by local labor law. This is applicable to both local and foreign employees.
Goods: physical equipment, supplies, products, and other tangible assets.
Grantee: A recipient of a Grant or Funding Agreement from MGIC.
Gross misconduct: Severe negligence or willful conduct that is violent, unlawful, or has the potential to severely harm the organization or others within the organization.
Harassment: Unwelcome conduct that is based on gender, marital status, pregnancy, race, ethnicity, tribe, color, religion, age, ancestry, national origin, sex, gender, gender identity or expression, sexual orientation, or physical or mental disability, and that interferes with an individual’s work performance or creates an intimidating, hostile, humiliating, demeaning, or sexually offensive working environment.
Independent contractor: An individual or firm engaged to provide services specified in a consulting agreement that includes a clear description of the activities, services, reports, or other deliverables to be provided. Also may be referred to as a consultant.
International Operations (IO): A division of UMB’s Administration & Finance department. IO administers the MGIC mechanism on behalf of UMB, and its personnel have specific responsibilities to develop, implement, comply with, and enforce MGIC policies and procedures. When an MGIC service is performed for the benefit of IO rather than for a School or other Department, IO also functions as a Requesting Unit.
Local employee: A locally hired MGIC staff member who is a citizen of the country in which they are employed. Local employees are subject to all statutory benefits and obligations of the jurisdiction of employment.
Maryland Global Initiatives Corporation (MGIC): An affiliated business entity of the University System of Maryland (USM).
MGIC Business: Used in the Policy on Travel to mean a trip between the U.S. and a foreign country, between foreign countries, or within the country of assignment, by a person who:
- Is an MGIC employee OR an MGIC Guest; and:
- Is traveling at the invitation of a UMB/Affiliate Requesting Unit; and:
- Whose approved travel expenses are funded by UMB/Affiliate and paid via MGIC.
MGIC Funding Agreement: A legal instrument executed between MGIC, on behalf of a UMB or Affiliate Entity school, department, or center (Requesting Unit), and a recipient organization, to jointly implement an activity in which the recipient has a substantial scope of work and associated budget. MGIC Funding Agreements are funded through UMB/Affiliate discretionary or private funds, never through sponsor awards.
MGIC Employee or Personnel: An employee with an employment contract issued by an Employer of Record (EOR) company on behalf of MGIC. MGIC personnel (collectively all employees) are typically hired at the request of a UMB/Affiliate unit and function under that unit’s internal operating procedures and structures.
MGIC Guest: A traveler who is neither an MGIC employee nor an employee or student of UMB or an Affiliate Entity, who is traveling on approved MGIC business. MGIC Guests may include (but are not limited to) independent contractors, research collaborators, authorized dependents of an MGIC foreign national employee, and institutional partner representatives. This term is relevant to the MGIC Travel Policy.
MGIC Non-Employee: A person who is neither an MGIC employee nor an employee or student of UMB or an Affiliate Entity, who receives payment from MGIC in capacities such as (but not limited to) independent contractor, guest lecturer, visiting scholar, research collaborator, etc. An MGIC Non-Employee is referred to as an MGIC Guest when the person is traveling on approved MGIC business. This term is relevant to payees throughout MGIC finance and operations policies.
MGIC USA: The operational model, and associated corporate policies and procedures, followed when MGIC is utilized on a transactional basis to acquire and pay for goods and services through its U.S. bank accounts and with the contractual authority of the U.S. based Board of Directors. This model is distinguished from the Country Office model and associated policies specific to country office operations when MGIC has registered and established a legal business entity in a foreign country.
Nepotism: The improper use of one's position or influence to benefit a family member or personal associate in employment matters, where the relationship rather than objective criteria drives the decision.
Non-capital asset: A physical asset with an acquisition cost of US$500 or more, but less than US$5,000 per unit, and with a useful life of greater than one year.
Non-Commercial Goods and Services: not generally offered to the public, nor are they sold in the open market. They are specialized or customized, and are provided to specific clients under negotiable terms and conditions. For example, professional expertise for a specific need such as Research or Academic consultants.
Non-Employee Payments: Direct payments to individuals who are not employees or students of UMB or a constituent University System of Maryland, for specific allowable purposes.
Non-PO: A payment authorized by MGIC without requiring a Purchase Order or other valid binding agreement that is executed either by MGIC, UMB, or an Affiliate Entity, through their respective procurement policies and procedures.
Officer: Executive and administrative supervisors of the Maryland Global Initiatives Corporation (MGIC). As promulgated in the MGIC Bylaws, MGIC Officers shall include a President, Secretary, and Treasurer, and may include one or more Vice Presidents and other subordinate Officers to support the operations of the corporation.
Open and Full Competition: A procurement process that includes a formal Request for Proposals or Request for Quotations, a minimum number of bidders or offerors, and a formal evaluation process to analyze and compare technical and cost elements of each bid in order to identify the best value to MGIC.
Part-time employee: regularly scheduled to work fewer than forty (40) hours per week or fewer than the full-time work week as defined in the employment contract. Benefits, such as annual leave and sick leave, will be provided for part-time employees as mandated by local labor law. This is applicable to both local and foreign employees.
Payment Authorization Agreement (PAA): An agreement instrument that establishes the terms under which sponsored project funds that are disbursed from UMB to MGIC must be used for direct implementation of UMB’s research and programs outside the U.S.
Performance management cycle: Also referred to as “rating cycle”, the timeframe (typically one year in duration) for meeting performance objectives, ongoing monitoring, communication, and feedback throughout the period, and completion of a performance review at the end.
Probationary period: Specified amount of time during which the performance of an employee who has been recently hired, transferred, or promoted to a new position is evaluated by supervisorial staff.
Procurement agreement: A written agreement between a buyer and a seller in which the buyer agrees to purchase goods and/or services from the seller in exchange for payment, e.g., a service contract, a purchase order (PO) with terms and conditions attached, or a consulting agreement.
Project-specific services: services provided under an institutional Memorandum of Understanding or partnership agreement, when a contractual instrument is needed to establish binding terms and conditions for performance by and payment of a collaborating institution for a specific project.
Purchase Order (PO): A business document requesting specific goods or services from a supplier, detailing the requirements, terms of delivery, and payment, and legally obligating both parties once accepted.
Real Property: Buildings and other permanent structures leased by MGIC for occupancy or use.
Reasonable cost: A cost that, in its nature and amount, does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost; with consideration for whether the cost is of a type generally recognized as ordinary and necessary for the operation of the institution or the proper and efficient performance of the project, taking into account restraints or requirements imposed by such factors as sound business practices, arm's-length bargaining; national and local laws and regulations, and with consideration of market prices for comparable goods or services for the geographic area.
Requesting Unit: A School or Department within UMB or within an Affiliate Entity, that requests MGIC services to facilitate the unit’s international activities.
Retaliation: Any action taken against someone who raised a concern about suspected misconduct, which includes making threats, demoting, terminating employment, or other punishment or unfair treatment.
Sensitive data: Any personal, confidential, and legally protected information, including personally identifiable information (PII) associated with patient and study participant data.
Service Contractor: An individual or business entity providing independent services under a binding contract between parties.
Services: work or expertise provided by a supplier. Unlike goods, which are physical items, services are not tangible—they involve people’s skills and effort, delivered over a period of time and measured by performance.
Sexual harassment: Unwelcome sexual advances, unwelcome requests for sexual favors, and other unwelcome verbal or physical conduct of a sexual nature.
Signature authority: Legal power delegated by an authoritative body to commit the authorizing organization to a binding agreement.
Simplified Acquisition Threshold: MGIC’s threshold under which it may allow payment without a corresponding Purchase Order or other binding legal contract. As of this policy date, MGIC’s Simplified Acquisition Threshold is: Commercial Goods and Services below U.S. $5,000 (or equivalent foreign currency) per unit.
Single Source: An exception to Full and Open Competition for procurement, in which multiple suppliers may be capable of providing the required goods or services, but the buyer (requester) chooses to purchase from one specific supplier for reasons that benefit MGIC, such as assured performance and stable cost.
Sole Source: An exception to Full and Open Competition for procurement, in which only one supplier is capable of providing the required goods or services.
Sponsor: A funder of a sponsored project to UMB or another USM constituent institution; an awarding agency or institutional donor; a funding source; an institution that funds activity that is separately budgeted and accounted for according to the terms the institution lays out in an award agreement.
Statutory Benefits: Mandatory benefits employers are required by law to provide to their employees. These benefits are governed by specific legislation and vary by country or region. They typically include contributions such as public pension, public health insurance, and workers’ compensation. Statutory benefits may be financed through taxes or contributions shared between an employer and an employee.
Temporary employee: An MGIC employee who is regularly scheduled to work for a specified short-term period. Benefits, such as annual leave and sick leave, will be provided as mandated by local labor law. Temporary employees are paid through payroll and must complete timesheets to receive compensation. This is applicable to both local and foreign employees.
UMB: The University of Maryland, Baltimore.
UMB Affiliate: For purposes of MGIC policies only, a UMB Affiliate includes employees of a UMB affiliated business entity (e.g. MGIC), as well as faculty, staff and students at another constituent institution in the University System of Maryland (USM) that utilizes MGIC services through a Memorandum of Understanding with UMB.
UMB Personnel: Faculty and staff of the University of Maryland, Baltimore (UMB).
Vendor: An individual or business entity offering goods or services for sale. A vendor selling services may also be referred to a service contractor or a consultant.
Voluntary (or Discretionary) Benefits: Optional benefits that an employer may choose to offer employees beyond what is legally required. (Legally required benefits are mandatory; see definition of Statutory Benefits above).
Whistleblowing: Reporting issues of suspected or known fiscal irregularities, illegal activity, and violations of policy.