5.01.003 Procurement and Purchasing
Category: FINANCE FACILITIES AND TECHNOLOGY
Approved By: Board of Trustees
Expenditure Approval Requirements
Trustee approval of the operating budget is approval to effect the programs contained in the budget. Within the guidelines provided below, the president is authorized to undertake the expenditures contained within the approved budget plan.
A cost center manager, their supervisor(s), or the senior officer shall approve all purchase requisitions. Under no circumstances should anyone other than the responsible individual or an authorized alternate provide an approved signature or electronic authorization.
- Cost center managers, with appropriate authorization, may approve purchase requisitions up to one thousand dollars ($1,000).
- Deans, with appropriate authorization, may approve purchase requisitions up to five thousand dollars ($5,000).
- Vice Presidents, with appropriate authorization, may approve purchase requisitions up to ten thousand dollars ($10,000).
- Purchase requisitions with a value of ten thousand dollars ($10,000) or greater must be approved by the President or his/her designee.
- Commitment for consulting services greater than ten thousand dollars ($10,000) but less than ($20,000) must be approved by the President or his/her designee.
- Any expenditure of twenty thousand dollars ($20,000) or more, whether included in the budget or not, must be approved by the Board of Trustees.
- Capital budget expenditures of less than ten thousand dollars ($10,000) included in approved line item budgets must be approved by the appropriate cost center and senior managers.
- Any capital item not included in the approved capital budget and any requisition of ten thousand dollars ($10,000) or greater must be approved by the President or his/her designee.
- Any single capital item or combination of complementary items with a value of twenty thousand dollars ($20,000) or greater, whether budgeted or not, must be approved by the Board of Trustees.
Employees and Board members shall not make commitments or agreements involving the College in contractual arrangements with other institutions or agencies without the approval of the President or an appropriate designee, or the Board of Trustees as may be required.
Transactions Requiring Board Approval
The Board of Trustees assumes the ultimate responsibility for the operation of the College, the prudent use of its resources, and for maintaining productive and supportive relations with regulatory and funding agencies. In exercising its responsibility to the public and private sources, which annually provide the College with its operating and capital budget revenues, the Board of Trustees approves the annual budget prior to the start of each fiscal year. In addition to approving the aggregate budget plan, the Board will specifically approve certain types of expenditures and contractual relationships. These specific approvals may occur either as a part of the annual budget adoption process or as individual items brought to the Board during the course of the fiscal year through the Board of Trustees Finance Committee.
The following financial transactions require specific Board approval:
- Development of New or Modified Facilities - Any program for the development or modification of a College facility and associated equipment with a total project value of twenty thousand dollars ($20,000) or greater.
- Capital Purchases or Leases - Any single item or combination of complementary capital items with a cost or cumulative total cost of twenty thousand dollars ($20,000) or greater. This includes both property leases and capital purchases.
- Capital Write-Offs - Disposal of capital items or real property with an original acquisition price of ten thousand dollars ($10,000) or greater.
- Real Estate Acquisition or Disposal - All acquisition of real estate including land and buildings. The Board must formally accept potential real estate gifts to the College before title to the property is transferred.
- Professional Services - Because of their significance to the College and the responsibilities of the Board of Trustees, the following professional services will require Board approval at the time a change in provider is considered or a new contract for services is required:
- Public Accounting Services,
- Banking Services,
- Legal Services,
- Insurance Broker Services,
- Investment Management Services, and
- Engagement of any service with a total expense or revenue volume of twenty thousand dollars ($20,000) or greater.
- Debt Obligations - Any agreements to borrow funds on behalf of the College including both long-term debts such as bonds and mortgages as well as short-term borrowing for operating purposes. This includes drawdowns on previously approved lines of credit.
- Accounts Receivable Write-Offs - Any individual account receivable with a book value of five thousand dollars ($5,000) or greater for which staff believes there is no basis to expect payment. A review of write offs will be provided to the board on a semi-annual basis.
The Board may override this policy during periods of financial crisis.
College operating policies and procedures for purchasing shall be competitive and shall comply with all federal, state, and local statutes, regulations, and guidelines.