Innovation Accelerator (IA) Grants – Guidelines and Procedures

How should costs related to IA proposals be handled?

All IA expenses must comply with existing departmental and College-wide disbursement and reimbursement policies. IA teams are responsible for exercising prudent judgement to ensure all expenses incurred related to their project are reasonable based on the facts and circumstances, prior to submitting for approval as described below. Documentation of a business purpose is required for each expense and it must demonstrate a clear connection to HMC.

Who should I contact if I have questions regarding IA transactions?

For general inquiries, please email Allan Schmidt (alschmidt@hmc.edu) who will coordinate with HMC leadership and Division of Campus Operations (DCO) staff to respond to inquiries related to IA transactions. Additional contacts are provided below for specific topics.

Where can I find policies on business-related expenditures?

Refer to the HMC Policy for Travel, Entertainment and Other Business Expenses.

What are the requirements for IA expenditures in the initial $20k seed grant?

• For teams not advancing to the second round, funds must have been spent and processed by June 30, 2025.
• For teams advancing to the second round ($240,000 over three years) the residual balance from the seed grant can be carried forward into round two. Expenditures should be for activities related to the second round and follow the procedures outlined below.

What are the requirements for IA expenditures in the second-round grant ($240,000)?

All expenditures must demonstrate a clear connection to HMC. Documentation of approval by a majority of the IA team is required. In cases where the overall IA team is large, a designated leadership group of 3-5 members, appointed by the area VP, can act as the deciding body, prior to submitting for approval in Workday. Prior approval, before incurring the expense, from the area VP overseeing the IA Team and the SVP-Chief Operating Officer (COO), will be required for:

• Expenditures exceeding $80,000 in a single year
• Extending the timeline for expenditures beyond three years
• All stipends regardless of dollar amount
• All honorariums of $600 or over
• Any single expenditure over $5,000.

Note, for all three current IA teams, the VP overseeing these teams is the VP for the Academic Affairs (VPAA-DoF)

What are the allowable methods to pay for IA-related expenses?

1. Supplier Invoice via Workday
   • Department admins/coordinators can assist with invoice submission and vendor setup, which includes providing IRS Form W-9.
   • Invoices are paid automatically once they are fully approved in Workday.
2. HMC Purchase Card (P-Card)
   • IA expenses may be charged to your HMC P-Card.
   • Department admins/coordinators can assist with processing P-card transactions using the appropriate worktags for your IA team.
   • Refer to the Purchase Card Program webpage for additional information.
3. Personal Credit Card + Reimbursement Request
   • Permitted if no P-Card is available (not allowed to pay for services).
   • Submit reimbursement within 30 days; beyond 60 days, reimbursement may be taxable due to IRS requirements.
   • Department admins/coordinators can assist with processing the expense report in Workday (see the job aid on How to Create an Expense Report).

Can IA funds be used for stipends?

Yes, but tax and compliance rules apply so be sure to consult with key contacts listed below before committing to compensation arrangements.

What are the requirements to pay faculty or staff a stipend?

• Faculty stipends must be approved by and can be terminated by and at the discretion of the area VPAA-DoF, based on individual facts and circumstances, and in consultation with the SVP-COO.
• Faculty stipends may not exceed 1/9 of annual salary in any year.
• Staff stipends may not exceed one month’s salary.
• Staff must be in good standing and not on a performance improvement plan.
• Staff stipends must be approved and can be terminated by and at the discretion of the area VP overseeing the IA team and the SVP-COO, based on individual facts and circumstances. 
• In order to manage the volume of stipends, IA teams will be encouraged to use consistent amounts for recurring stipends to an employee (e.g. $100 a month for 12 months vs $300 in one month, $400 in another month and $500 in another month).
• The decision on how much, how long and to whom to provide faculty and staff stipends should be approved by a majority of the IA team members or the designated leadership group for large teams, appointed by the area VP, prior to submitting the stipend form requesting approval from the area VP and the SVP-COO.
• Expenditures must comply with all College policies. Note various financial and risk management policies can be found by visiting the DCO website (e.g. OFA forms and Policies and RML policies and procedures).
• Note, for the all three current IA teams, the VP overseeing these teams is the VPAA-DoF.

Can we pay external individuals who contribute to the project, e.g. guest speakers?

Yes, non-HMC individuals can be paid through honoraria and are taxable. Honoraria are processed by staff within a department, through a supplier invoice with a W-9 and are reported on IRS Form 1099 if $600 or over. Please note that honoraria are only for individuals who are not HMC faculty or staff. The decision on how much, and to whom to provide honorariums to, should be approved by a majority of the IA team members or the designated leadership group for large teams, appointed by the area VP, prior to submitting a supplier invoice in Workday and requesting approval.

Can we issue payments to students?

Payments to students require a case-by-case review to determine whether the payment constitutes compensation (processed through payroll) or if it falls under non-compensatory categories (e.g. educational or leadership experience). This analysis is handled by the RML Office. Please contact Adele Vuong (avuong@hmc.edu) for further guidance. Student payments must be approved and can be terminated by and at the discretion of the area VP overseeing the IA team and their SVP-COO, based on individual facts and circumstances. 

Note, for the all three current IA teams, the VP overseeing these teams is the VPAA-DoF

Can we provide gift cards?

Gift cards are generally discouraged due to tax and administrative complexity. Accordingly, the Office of Human Resources needs to be involved prior to acquiring the gift card as it needs to be processed through payroll to be included on the IRS Form W-2. Since there is considerable administrative work with taxing gift cards, it is not recommended that gift cards be provided to employees, especially for small amounts. Please refer to the Taxability of Gift Cards Procedural Document. In the rare situation that gift cards are provided, they must be approved by the area VP overseeing the IA team, the CHRO and the Assistant Treasurer and Financial Analyst.

Note, for the all three current IA teams, the VP overseeing these teams is the VPAA-DoF

What are considerations for contracts and purchasing?

Do I need a contract for external service providers?

Yes. Contracts are required for services over $1,500 and reviewed by Adele Vuong (avuong@hmc.edu) and the relevant Cabinet member, and signed only by authorized signers of the College. Additional approvals apply over $10,000. Please refer to the Final Contract Review Procedures document for further guidance.

Can I ship materials to my home?

College-related purchases should be delivered to a College address. If unavailable, coordinate with the Office of Financial Affairs before purchasing.

What are considerations for travel expenses?

Can I be reimbursed for personal vehicle use?
Yes. The current rate is 70¢ per mile with proper authorization. You must be on the Approved Driver’s List prior to travel—contact HR (hr@hmc.edu) to confirm current authorization or to obtain authorization.

What about flights, rental cars, and per diem?
Specific guidance on these topics is available in the HMC Policy for Travel, Entertainment and Other Business Expenses.

Are there non-reimbursable expenses to avoid?
Yes. Common disallowed expenses are listed on pages 6 and 7 of the HMC Policy for Travel, Entertainment and Other Business Expenses under “non-reimbursable expenses.”

How do I track IA project spending?

Within Workday, the HMC Non-Operating Activity Report is a helpful tool to track the revenues and expenses related to your IA project. Please refer to the HMC Non-Operating Activity Report job aid for instructions on how to view the report.