Administrative Procedures

Requisitioning

1. Purpose

To address the requisition of supplies, equipment, or services.

2. Scope

This procedure applies to all KCTCS employees.

3. Requisition Requirements

3.1

Requisition Limits:

1. Requisitions up to $50,000.00, with the approval of the KCTCS Office of Procurement to Payment Services, may be sourced to a purchase order without obtaining additional quotes or issuing a bid.
2. Business units are encouraged to obtain quotes from a diverse supplier.
   1. Diverse suppliers are identified as those businesses owned by ethnic minorities, women, service-disabled veterans, or the physically challenged.
3. Requisitions of $50,000 to $99,999 that are not on an approved price contract may be sourced to a purchase order if at least three (3) quotes were obtained and the desired quote is of best value to KCTCS.
4. Requisitions of $100,000 and above that are not on an approved price contract must be solicited by sealed bid by the KCTCS Office of Procurement to Payment Services per KRS 45A.100.

3.2

If a requisition is for a service provided on a college campus, the college must submit a copy of the supplier’s Certificate of Liability Insurance with the KCTCS procurement analyst.

1. The Certificate of Liability Insurance shall list KCTCS and/or college as additional insured.
2. The Certificate of Liability Insurance can be sent to the KCTCS Office of Procurement to Payment Services or attached to the requisition.

3.3

For Uniform Guidance regulations for Federal Grant Awards see also Administrative Procedure 5.3.6-P (Sponsored Projects Accounting for Grants & Contracts).

1. When approved in a project grant budget, procurement of micro-purchases, materials/supplies or services, with an aggregate dollar amount of less than $ 50,000, may be purchased without soliciting competitive quotes, if the price is deemed reasonable by the college or department.
2. Procurement of small purchases, services and materials with an aggregate cost of $50,000 up to $99,999  may be purchased, when allowed on a project grant provided the college or department obtains a minimum of three (3) quotations, regardless of method of purchase (pro-card, requisition, etc.).
   
   1. Documentation of these solicited or use of unsolicited quotes (prices from a reputable internet site) must be attached to the procurement documentation to show how purchase choice was determined. 
   2. If the small purchase is on an Approved Price Contract, the three quotes are not needed. 
3. Procurement of purchases of $100,000 or greater require a sealed solicitation process unless purchases are covered by an Approved Price Contract. 
4. Reference Business Procedure 5.4.12-P for services requiring a Personal Service Contract. 

4. Major Equipment Requisition Requirements

4.1

Major Equipment Requisitions:

1. In accordance with KRS 45.760, the KCTCS Office of Procurement to Payment Services requires major equipment requisitions to be accompanied by a memorandum identifying the line item number that is shown in the approved Commonwealth of Kentucky biennial budget.
   1. This is in reference to any equipment item costing $200,000 or more.
   2. Computer or telecommunications “systems” that costs $1,000,000 or more.
2. This requirement applies whether equipment is purchased, leased, or lease-purchased. 
   1. Exceptions are equipment to be used for medical, scientific, or research purposes (excluding computer equipment and air craft). Contact the KCTCS Office of Procurement to Payment Services for details. KRS 45.760 (5)
3. Major equipment requisitions not approved in the Commonwealth of Kentucky’s biennial budget will not be processed.

5. Requisition Approval

5.1

PeopleSoft Workflow Process (electronic signature) is used for requisition approvals.

1. Approvals are based on the approval authority in Administrative Procedure 5.1.10-P (Financial Document Approvals).
2. All requisitions utilizing funds for capital construction projects are routed for approval through KCTCS Office of Facilities Support Services and are to comply with business procedures regarding Capital Assets.
3. Any requisition that cannot be processed to a purchase order due to approval status will be canceled or deleted unless corrected within thirty (30) days from the date it was created unless an exception is granted by the KCTCS Office of Procurement to Payment Services.

6. Preparation of a Requisition

6.1

Specifications and Descriptions:

1. To encourage competition, requisitions should include specifications and descriptions.
   1. A specification should identify and include minimum, basic requirements and describe features like color, grade, size, dimensions, materials, and quantity. 
   2. A description should identify the essential physical and functional characteristics of the item or service requested.
2. If a business unit determines there are “no substitutions” or that “commodities shall be compatible and/or interchange with existing equipment”, a written explanation shall be submitted with the requisition to the attention of the KCTCS System Director of Procurement to Payment Services.
3. Procurement requirements will not be parceled, split, divided, or ordered separately over a period of time in order to undermine the intent of KCTCS finance-related administrative procedures.

6.2

Supplier Recommendation:

1. Business units are encouraged to recommend a supplier on the requisition.
2. If the supplier is not already in the PeopleSoft system, the supplier field can be left blank and the suggested supplier’s information may be entered in the comments. 
   1. For suppliers not set up in PeopleSoft, KCTCS utilizes a customized platform to register new suppliers.  The cloud-based platform is a supplier registration portal within PeopleSoft and can be accessed at https://systemoffice.kctcs.edu/suppliers/registration.aspx.
   2. Requisitions cannot be processed until suggested suppliers are approved in PeopleSoft.

6.3

Deferred Requisitioning:

1. A “Deferred Purchase” is a purchase in which a business unit submits a requisition using Fund 01, Fund 05, or Fund 11 for the next fiscal year.
   1. Deferred purchases are permitted due to the requirements of delivery date, lead time, or other extenuating circumstances.
   2. Deferred purchases cannot be used with “ALLPER” fund groups such as Fund 61 or Fund 12.
   3. Deferred purchases are only allowed during a specified time period established by the KCTCS System Director of Business Services in the KCTCS Year-End Closing Schedule.
   4. Deferred purchases should not be used in place of normal purchasing procedures for items that can be purchased and delivered under normal time constraints not crossing fiscal years.
2. Business units requesting a deferred purchase need to ensure that spending authority is available in the next fiscal year to support the requisition requirements.
   1. The KCTCS System Office of Financial Services will establish a predetermined amount of budget authority at the appropriation level to charge all deferred purchases for each business unit.
   2. The business unit will establish budgetary spending authority for the appropriate chart string to charge deferred purchases.
3. At the start of the “new” fiscal year, the budget authority will be adjusted to reflect the amount advanced for deferred purchases for that business unit.

6.4

Receiving:

1. Business units are encouraged to establish a central receiving location for each campus for delivery of goods.
2. Business units shall appoint an individual(s) to receive goods in a timely manner that have been ordered via the requisition/purchase order process. 
3. Invoice payment is dependent upon “receipt” of goods and/or services within the PeopleSoft Financial system.
4. Business units shall have a system in place to monitor deliveries.
   
   1. Upon receipt, deliveries shall be inspected for (including but not limited to):
      1. Specifications
      2. Quantity
      3. Damages – both visible and concealed
      4. Correct ship-to location 
      5. If required delivery time was met
   2. KCTCS Office of Procurement to Payment Services shall be notified within two weeks when materials are returned, damaged shipments are received, or other disputes arise regarding established purchase orders so documentation can be noted.