Pine Technical College
Policy and Procedure
Policy Number: 403R Date: 8/6/98
Revision Date: 8/6/2000, 12/11/02
Division/Department: Fiscal Services Author:
Robert Musgrove, Kathy Dettinger
Subject: Initiating and Processing Purchase Requisitions,
Purchase Orders and Related Payments
Authorities:
Delegated in pursuant to Minnesota Statutes 136F.06,16A.15 &124, MnSCU
Policies and Minnesota Accounting and Procurement System (MAPS).
Purpose:
To permit employees of the college to purchase goods and services for
the efficient operations of the college and to align PTC purchasing practice
with state guidelines.
Policy:
All purchases of goods and services must be approved by Head of the
Department or designee before processing and payment by the business office. All
computer hardware, software or parts thereof, require approval from the Chief
Information Officer or designee.
Split or artificial division of purchase order or requisitions into small units
for the purpose of avoiding any purchasing regulation or approval is strictly
prohibited.
The purchase requisitions and orders must be entered in MnSCU Accounting System.
Funds will be encumbered using the specific commodity codes and vendor numbers.
Timely payments are encouraged for the advantages of discounts and good
relationship with vendors or suppliers of goods and services.
Faculty:
Purchase(s) under $300 may be processed by the Cost Center Manager without
other approval.
Purchase(s) of $300-$500 must be approved by the Division Chair and Cost Center
Manager.
Purchase(s) of $500 - $10,000 or more must be approved by Division Chair, Cost
Center Manager and the Vice President of Academic Affairs.
Purchase(s) of $10,000 or more must be approved by the Division Chair, Cost
Center Manager, Vice President of Academic Affairs and the College President.
Customized Training:
Purchase(s) of $2,000 or more must be approved by the Vice President of Academic
Affairs.
Student Affairs –
Purchases under $500 may be approved the cost center manager (Student
Affairs Counselor, Marketing Manager, Financial Aid Manager, Registrar, and
Disabilities Coordinator) without further approval
Purchases of $500-$10,000 must be approved by the Dean of Student Services.
Purchases of $10,000 or more must be approved by the Dean of Student Services
and the College President.
Business Office –
Purchases under $500 may be approved by the Accountant in the absence of
the Dean of Administrative Services.
Purchases of $500-$10,000 must be approved by the Dean of Administrative
Services.
Purchases over $10,000 must be approved by the Dean of Administrative Services
and the College President.
Information Services & Facilities Per the Delegation of Authority letter, the
Chief Information Officer and the Building Maintenance Coordinator may approve
items not to exceed $1,000. Item over $1,000 must have the signature of the
President.
Employment and Training Center: All purchases must be approved the Director of
the ETC.
Procedure and Responsibilities:
Requestor obtains a material requisition form from the mailroom or the
Business Office.
Requestor completes the material requisition form, to include the date; cost
center(s) to be charged; name of requestor; description, quantity, and price of
the item(s) to be purchased; vendor name, address, and contact phone and/or fax
numbers; and other relevant information. Requestor should also indicate whether
he/she would like to place the order after the purchase order has been issued or
whether the Business Office should place the order.
If necessary, requestor submits the completed requisition to the Unit Head or
designee for approval.
Unit Head or designee reviews and forwards the approved requisition to the
Business Office or returns the rejected requisition to the requestor with a
brief explanation for the rejection.
The Accountant or designee reviews the requisition forms, assigns cost center
and object codes, and determines the availability of funds. If the requisition
forms are incomplete and/or if there are insufficient funds, the requisition
forms are returned to the requestor.
The Dean of Administrative Services or designee approves and forwards the
requisition forms for data entry and processing in the accounting system.
When the requisition forms have been processed, a purchase order is issued, and
the order is placed either by the requestor or the Business Office, at the
discretion of the requestor.
When the goods or services are received, the requestor/receiver confirms the
receipt and signs and submits the delivery documents and packing slips to the
Business Office.
The Business Office matches the requisition form, purchase order, delivery
documents, packing slips, and invoice; obtains payment approval from the
requestor; and processes the payment in the accounting system.
The Business Office maintains purchasing and payment records until audited and
archives them as necessary.
Requestor must comply with the following purchasing requirements as defined in
Minnesota Statute 471.345, Uniform Municipal Contracting Law:
Purchases less than $2,000 – If the amount of the purchase is estimated to be
$2,000 or less, the purchase may be made in the open market.
Purchases from $2,000 to $10,000 – If the amount of the purchase is estimated to
exceed $2,000 but not to exceed $10,000, the purchase must be made by obtaining
two or more quotations. Quotations may be obtained by telephone or in written
form via fax, delivery service, or the Internet. Quotations must have a
specified date and time for submission. All quotations obtained shall be kept on
file until audited. The record to be retained must include the names of vendors
providing quotes, amounts of quotations, and each successful quote signed and
dated.
Purchases from $10,000 to $25,000 – If the amount of the purchase is estimated
to exceed $10,000 but not to exceed $25,000, the purchase must be made by
obtaining sealed bids. Bids will not be required to be advertised or otherwise
comply with the requirements of competitive bidding. Bids must be sealed and,
when they are read, must be opened in public. Bids must have a specified date
and time for submission. All sealed bids obtained shall be kept on file until
audited.
Purchases from $25,000 to $100,000 – If the amount of the purchase is estimated
to exceed $25,000, sealed bids shall be solicited by public notice through
publishing a two-week notice in an official newspaper(s). The official newspaper
may be the State Register. Sealed bids also may be solicited by directly
notifying prospective bidders not less than seven (7) days before the final date
of submitted bids. This notice shall state the time and place of receiving bids
and contain a brief description of the subject matter. A bid containing an
alteration or erasure must be rejected unless the alteration or erasure is
crossed out and the correction printed in ink or typewritten adjacent to it and
initialed in ink by the person signing the bid. Bids must be sealed and, when
they are read, must be opened in public at the hour stated in the notice. All
sealed bids obtained shall be kept on file until audited.
State contracts – Purchases not exceeding $100,000 may be made without receiving
quotations or sealed bids if they are covered by a State contract.
Purchases over $100,000 – Purchases over $100,000 require the approval of the
Office of the Chancellor. Institutions must submit a memorandum explaining the
need for the purchase, the purchase amount, verify that funds are available for
paying for the purchase, and describe what processes will be used in making the
award. The institution may proceed with the purchase upon approval of the
memorandum.
Computer Equipment – All purchases of computer equipment require the approval of
the College’s Chief Information Officer or designee.
Rental of Equipment under $60,000 – If the amount of a contract for the rental
of equipment is estimated to be $60,000 or less, the contract may be made by
direct negotiation by obtaining two or more quotations for the rental, when
possible, and without advertising for bids or otherwise complying with the
requirements of competitive bidding. All quotations shall be kept on file until
audited.
Encumbrance – Funds must be encumbered prior to making an expenditure or
obligation. An expenditure or obligation incurred prior to encumbering funds is
illegal and ineligible for payment and is in violation of Minnesota Statute
16A.15, Subdivision 3. An employee making an expenditure or obligation prior to
encumbering funds is liable to the State for the amount of the transaction. A
knowing violation of Minnesota Statute 16A.15, Subdivision 3, is just cause for
the employee’s removal. The State cannot agree to indemnify third parties or
hold them harmless (MS 10.17; Minn. Const. Art. XI, Sec. 1).
Prepayment – Minnesota Statute 16A.41, Subdivision 1, prohibits the State from
paying in advance. The State can only make prepayments for software or software
maintenance contracts for State-owned or leased computer equipment, sole source
maintenance agreements, exhibit space, subscription fees or newspapers and
magazines, and the Library of Congress.
Fixed Assets – All fixed assets of $2,000 or more, all computer equipment, and
all firearms must be recorded in the fixed asset module of the Minnesota State
Colleges and Universities’ database.
Code of Ethics – State employees are covered by Minnesota Statutes 43A.38 and
43A.39. They cover such topics as acceptance of gifts, conflicts of interest,
and use of confidential information. Minnesota Statute 15.43 states that no
employee of the State in direct contact with suppliers or potential suppliers to
the State, or who may directly or indirectly influence a purchasing decision or
contract by establishing specifications, testing purchased products, evaluating
contracted services, or otherwise have official involvement in the purchasing or
contracting process may have any financial interest or have any personal
beneficial interest directly or indirectly in the contracts or purchase orders
for goods or services used by or purchased for resale or furnished to the
College or accept directly or indirectly from a person, firm, or corporation to
which a contract or purchase order has been or may be awarded a rebate, gift,
money, or anything of value other than items of nominal value. No such employee
may further accept any promise, obligation, or contract for future reward.
Textbooks, software, and other course materials authored by an employee of the
Minnesota State Colleges and Universities may be used as required course
material. Instructors may accept free samples of textbooks and related teaching
materials.
Dissemination:
Leadership Team members will provide the policy to employees in their
work areas.
The policy will be available in the President's Office, Administrative Services,
Media Center, and on the College's shared directory.
Reviewed by Leadership Team: 09/06/00; revision:
7/15/02; 8/12/02, 12/02/02.
Reviewed by Faculty Senate: 12/11/02
Approved: 09/06/00; Revision: 8/12/02,
12/11/02
Signature:___________________________________
Robert L. Musgrove, Ph.D., President