Innovation Accelerator (IA) Grants – Guidelines and Procedures

What are general guidelines for managing Innovation Accelerator funds?

• 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.
• Refer to your team’s initial IA award letter for total funding awarded as amounts may vary.
• Additional budgetary requirements and/or specific guidance may be communicated to teams through the team’s award letter and/or directly from the area VP overseeing the IA team. Guidance may be modified prospectively at the discretion of the area VP and the SVP-COO.

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 and other documents on the Financial Affairs Forms and Policies page.

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 employee compensation?

• Yes, IA funds may be used to support stipends and/or course release for HMC employees, depending on the individual facts and circumstances relevant to each team. The appropriateness of the compensation type will be assessed as requests are received by the area VP, in coordination with the SVP-COO and HR. Tax, compliance, and legal implications will be considered during the assessment of compensation arrangements for IA teams.
• Course release will be awarded at the discretion of the Dean of the Faculty in consultation with the department chair and the SVP-COO depending on relevant facts and circumstances.
• IA-funded compensation may be structured on an academic year, fiscal year, or alternate basis, as appropriate for the specific arrangement and subject to approval by the area VP in coordination with the SVP-COO and HR.

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

• Faculty and staff stipends must be approved by and can be terminated and/or modified prospectively by and at the discretion of the applicable area VP, based on individual circumstances and in consultation with the SVP-COO and HR.
• Employees must be in good standing and not on a performance improvement plan.
• Sufficient advance notice for stipend payments is required for HR to prepare the necessary documentation and obtain required approvals. Because stipends are considered taxable compensation, they are processed by the Office of Human Resources through payroll and reported on IRS Form W-2 for compliance purposes. Therefore, at least one-pay period of notice is required for adequate approval and processing time, or as otherwise communicated in the stipend letter.
• Additional considerations:
  • Fringe benefits (currently 34% on top of the stipend amount) will also need to be funded by your team’s IA account. Please factor this cost into your budget. (For example, a stipend amount of $1,000 will generate $340 of fringe, for a total cost of $1,340.)
  • Hourly employees are subject to overtime regulations and additional wage and hour considerations. The earnings from an hourly employee’s time worked is combined with the stipend payment and divided by their total hours worked, which will provide a new increased pay rate known as the Regular Rate of Pay. Accurate time tracking and appropriate pay rates need to be addressed to ensure compliance and accuracy of tracking of IA funds. Please contact Human Resources in advance of proceeding at hr@hmc.edu if this applies to your group.
  • Faculty stipends typically should not exceed 1/9th of annual salary in a year.
  • Staff stipends typically should not exceed one month’s salary in a year.
  • 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).
  • Consistent with our practice on issuing stipends to faculty and staff, the College reserves the right to change or end the assignment, the expected period of the role, and the amount and term of the stipend, based on the business needs of the College and other factors. Any changes to the stipend made by the College will be applied prospectively and not retroactively. If an individual ceases to perform the duties associated with the assignment, leaves the assignment, or otherwise becomes ineligible for the stipend during the stipend period, the College may discontinue any unpaid future stipend installments. The College will not require repayment of stipend amounts that have already been paid prior to the effective date of such change or discontinuation.

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. 

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.

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, 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. Current mileage reimbursement rates can be found on the Financial Affairs Forms and Policies page under “Policies and Procedures.”

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 in 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.

Who should I contact if I have questions related to specific rounds of IA funding (e.g. 2025 seed grants)?

Please email Allan Schmidt (alschmidt@hmc.edu) who will coordinate with HMC leadership as necessary.