Main Content:
RCTC Employee Handbook
PURCHASING/TRAVEL GUIDELINES
REQUIREMENTS
Purchasing by Rochester Community and Technical College employees must be in compliance with Board Policy 5.14, System Procedure 5.14.5, and all other applicable statutes, laws, rules, regulations, and policies. Non-compliance may result in purchasing authority being modified or rescinded. Board Policy 5.14 and System Procedure 5.14.5 should be reviewed before making a purchase. www.mnscu.edu/board/policy
TYPES OF PURCHASES
Purchases may be made through the State’s Central Stores, the State’s Master “M” contracts, or a non-state vendor using the methods provided in System Procedure 5.14.5.
The State’s Central Stores has general office supplies for purchase by MnSCU and state agencies.
The State’s “M” contracts are pre-approved agreements with various vendors and are issued in an effort to secure goods for the best possible price. We are required to use the M-Contracts. If you choose not to use the contract vendor, then you must provide documentation (bids) that the named vendor is cheaper. Please contact the Purchasing Department for an abbreviated contract index.
We have also been given the opportunity to use the Western States Alliance (WSCA) for computer related products, Hennepin County Cooperative Purchasing Program, Midwestern Higher Education Commission (MHEC), MINNCOR Industries, Minnesota Cooperative Purchasing Services Cooperatives, Office of Technology Master Roster Contracts (OT), US Communities Government Purchasing Alliance and the University of Minnesota’s Master Contracts Program for purchasing. These are optional sources and you are not required to use it. If using any of the above contracts, the bidding processes do not have to be done. For further details, contact the Purchasing Department at X-7213.
Purchases for refreshments, meals, food items within your work area must have an approved purchase order (450 status). A Request for Approval to Incur Special Expense form (found on j drive) must be approved by the President and sent to the Purchasing Dept. prior to the occurrence date to be attached to the purchase order.
PREPAYMENT
MS 16A.41, Subd. 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 for newspapers and magazines, and the Library of Congress.
ENCUMBERING FUNDS
Funds must be encumbered prior to making an obligation through an authorized employee certifying that the accounting system shows sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it. An expenditure or obligation authorized or incurred prior to encumbering funds is illegal and ineligible for payment until made valid and is in violation of M.S. 16A.15, Subd. 3. An employee authorizing or making the payment, or taking part in it, is liable to the state for the amount paid. A knowing violation of MS 16A.15, Subd. 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).
An approved encumbrance is a purchase order that has been entered into a 450 status in PCS.
PURCHASE LIMITS/TERMS
Purchases under $5,000
If a purchase is under $5,000, vendors may be contacted for prices to complete a request in PCS.
The requestor is encouraged to check with more than one vendor before accepting one price.
Splitting orders to the same vendor into more than one request in PCS to keep your amounts under $5,000.00 to avoid having to bid out is not allowed.
Purchases from $5,000 to $25,000 (and not available on States “M” contract)
A purchase may be made upon using the RCTC bid form (see attached). This form can be found on the j drive. Requestor must obtain two or more bids for the purchase. One or more written bid must be from a Targeted Vendor (TG) or an Economically Disadvantaged Vendor (ED) if one is listed with the State of MN. All quote/bids must be signed and may be obtained by using the RCTC bid form. Quotes must have a specific date and time for submission. You must allow a minimum of 10 working days for the return of a bid. All quotes must be received in the Purchasing Dept. to complete the purchase order process.
Purchases from $25,000 to $100,000
Purchases from $25,000 to $100,000 require sealed bids through public notice in the State Register and the local newspaper. Bid specifications must be sent to the Purchasing Dept. for documentation and notification in the State Register and local newspaper.
Purchases over $100,000
All purchases over $100,000 require the written approval of the Vice Chancellor-Chief Financial Officer. Contact the Purchasing Department for specifics.
Purchases over $100,000 require sealed bids through public notice in the State Register and the local newspaper and the vendor must have a Certificate of Compliance from the Minnesota Department of Human Rights. MnSCU form PUR010 must be completed by vendors.
BLANKET/OPEN PURCHASE ORDERS
Blanket/open purchase orders may be requested using PCS. Blanket purchase orders create an encumbrance when you, as the user, do not know the exact date and quantity of goods you need for each time you order. Blanket/open purchase orders are to be used in a specific fiscal year: July 1, XX – June 30, XX.
MEMBERSHIPS/SUBSCRIPTIONS
Requestor enters into PCS to encumber the funds. Requestor sends via inter office mail the order or renewal form that needs to go along with the approved purchase order.
SPEAKERS/ENTERTAINERS
If hiring a speaker or entertainer for $1,000.00 or less, a request must be entered into PCS. A Guest/Lecturer Contract (found on j drive) must be done in duplicate. Once signed by the vendor, the contract needs to be sent to the Purchasing Dept. for the final signatures. When signatures have been received, the Purchasing Dept. will put the purchase order in an encumbered status of 450 and will send back one original to the requestor to be mailed to the vendor.
If hiring a speaker or entertainer that is more than $1,000.00, a Professional Technical Contract must be done. Requester must enter the information into PCS. Once viewed by the Purchasing Dept., a Professional Technical Contract will be done and sent to speaker/entertainer for their signature. When the contract is returned by the speaker/entertainer, the final signatures will be obtained. When the contract is complete, the P.O. will be put in an encumbered status of 450 and the contract will be mailed to the speaker/entertainer. An e-mail will be sent to the requestor indicating that the contract has been mailed to the vendor.
Supplies
Expenditures for all supplies which are actually or constructively consumed in the college's operation, including freight.
Equipment
Equipment over $5,000 or sensitive equipment IE under $5,000.00 that is most likely to be stolen, must be marked with a state asset sticker and recorded in the equipment module by the Purchasing Department. State asset stickers are placed on the equipment by the requestor. Inventory stickers are sent along with the invoice payment document.
PROFESSIONAL DEVELOPMENT/STAFF DEVELOPMENT FORMS
Faculty Professional Development Request forms can be obtained from the chair of the Faculty Development Committee for your respective faculty union (MCCFA or UTCE). Staff Development Request Forms for employees other than faculty can be obtained in the Human Resource Office.
Travel-Professional Development Form
REQUEST FOR APPROVAL TO INCUR SPECIAL EXPENSES
The Request for approval to Incur Special Expense form is found on the j: drive under forms, Business Office. This form is required by MnSCU and is an internal form.
The special expense form is needed when encumbering funds to purchase meals/refreshments in the work area and also for conference registration fees over $1,000.00.
SERVICE/CONSTRUCTION CONTRACTS
Contracts must be done for any service/construction project. A completed purchase order, contract, and a Letter to Proceed must be done before a vendor can come onto campus to begin the work. See the Purchasing Department for specifics.
UNAUTHORIZED PURCHASES
Any type of purchase obligation without an approved purchase order may result in the employee being held personally responsible for that obligation. An employees purchasing rights may also be removed.
If funds are not encumbered (approved 450 status in PCS) prior to making a purchase, a M.S.16A.15.3 letter (this states the reason why the obligation was incurred before funds were encumbered and what corrective action will be taken to prevent this from happening again) must be completed by the requestor and submitted to the Purchasing Department. A meeting will then be scheduled with the Business Office Supervisor to go over the letter discussing what information or training is needed for the employee to assure that in the future funds will be encumbered prior to obligating RCTC funds for purchasing.
The M.S.16A.15.3 letter is found out on the j drive under forms, Business Office. Vendor’s invoices will not be paid until an approved P.O., the M.S.16A.15.3 letter, and the meeting with the Business Office Supervisor has been completed.
TRAVEL REQUEST/STAFF ACTIVITY REQUEST
If you need a P.O. # for your registration fee, hotel, airfare, please send your approved Professional Development Application to the Purchasing Dept. A memo will need to be attached indicating what a P.O. # is needed for. If for lodging, please include the name and address of the hotel. If you have already made reservations and need to switch the credit card from your personal one to the Colleges, please include your confirmation number. If you need a P.O. for the registration fee, please attach the registration form. If a P.O./credit card is needed for airfare, please stop down and you can go on line at that time and reserve your ticket and the Purchasing Dept. can follow up with the credit card information.
Travel-Professional Development Form
At this time, requestors are not allowed to enter into PCS any requests for in or out state travel.
The Travel Request, Employee Expense Report, and Affidavit forms are available in the Business Office.
To request a state car: please contact Carol Naatz 280-2880, UCR campus or Margie Barrows 285-7210, Heintz Center. 01/09/rms
