
Administrative Procedures
Special Purchase Authority
Procedure Number: 5.4.8-P
Current Effective Date: 01/01/2023
Original Effective Date: 01/01/2015
Revision Dates: 01/01/2015, 03/01/2015, 5/30/17, 01/01/2018; 07/23/2021, 01/01/2023
Revision Number: 6
Revision Summary: Changes to comments Appendix A related to memberships in professional organizations and dues for employees.
Responsible Official: Vice President, Administrative Services
References:
1. Purpose
To address purchases categorized as “Special Purchases”, including necessary approval and funding.
2. Scope
This procedure applies to all KCTCS employees.
3. Fund Source
3.1
Special Purchases are charged to account 50250:
- Non-Discretionary Funds (Fund 01)
- Discretionary Funds (Fund 11)
- Private Funds (not paid or tracked by KCTCS)
4. Taxable Employee Benefits
4.1
KCTCS Office of Financial Services will provide a biannual report to KCTCS Assistant Vice President of Business Services/COO for all account 50250 activities to determine if any purchases should be included in employee taxable wages.
5. Alternate Funding Source
5.1
If funding is unavailable in the primary fund source, an alternate fund can be utilized.
- Non-Discretionary (Alternate fund 11 or Private)
- Discretionary (Fund 11)
- Private (no alternate)
- Fund 12 (Grant) may be used if acceptable within the funded grant/contract proposal.
6. Restricted Goods and Services
6.1
Special approval is required when requesting purchases of restricted goods and services. (See appendix A)
7. Sponsorship and Advertising
7.1
KCTCS may sponsor activities, events, or projects in return for receiving recognition at the event. Sponsorship is not considered advertising.
- Recognition includes, but not limited to:
- KCTCS name
- College name
- College address
- College phone number
- KCTCS web address
- Description of services offered by the college
- Listing of KCTCS colleges
- KCTCS or college name can be included on:
- Event program
- Table tent
- Banner
- Other equivalent items
7.2
Participating in relays, runs, golf scrambles, etc. is not considered sponsorship or advertising. Questions should be directed to KCTCS Assistant Vice President of Business Services/COO.
7.3
Business units should expense sponsorships to account code 50550.
7.4
Contact KCTCS Assistant Vice President of Business Services/COO prior to agreeing to any sponsorship over $2,500.
7.5
Advertising is recognized as competitive pricing procurement.
- Marketing (college or system office) shall provide logo and current KCTCS advertising materials.
8. Donations and Giveaways
8.1
Individuals wanting to make a donation to KCTCS should be directed to either the local or KCTCS System Office of Institutional Advancement.
8.2
KCTCS System Office and Colleges are restricted from making donations.
8.3
If a student giveaway is not considered de minimis (small dollar and infrequently occurring), detailed records shall be maintained by the college for documentation and audit purposes. Cash equivalents such as gift cards or gift certificates are never de minimis. Records should contain:
- Student name
- Student address
- Student contact information
- Monetary value of gift received
8.4
Students will be required to complete and submit a Sub W-9 form and a 1099 tax form will be issued if a student receives aggregate giveaways greater than $600 in value within a calendar year.
8.5
If an employee give away has a value of $50 or more and not considered de minimis (small dollar value and infrequently occurring), detailed records shall be maintained and provided to KCTCS System Office Payroll Services for tax reporting purposes on Form PR60.
9. International Suppliers
9.1
International supplier payments may be subject to US income tax withholding (IRS publication 515).
- The following documents shall be forwarded to KCTCS Office of Procurement to Payment
Services prior to an international supplier providing services to KCTCS:
- Copy of the contractor’s VISA
- Completed W8 BEN form
- Form 8233 (If the international contractor is claiming exemption from withholding under a tax treaty)
APPENDIX A
RESTRICTED GOODS AND SERVICES
Item Description |
Fund Source |
Approval |
Taxable To Employee |
Other Comments |
||||
---|---|---|---|---|---|---|---|---|
Alcoholic Beverages |
Pvt |
CEO, VP |
No |
See BP 5.4.17-P for requirements |
||||
Alcoholic Beverages, Instructional Use |
01 |
CEO, VP |
No |
See BP 5.4.17-P for requirements |
||||
Awards, Formal Employee |
01 |
CEO, VP |
No
|
$100 Max; Service Awards are non-taxable if they are tangible personal property, given in 5 year increments, and are part of a meaningful ceremony |
||||
Awards, In-Formal Employee |
01 |
CEO, VP |
Yes |
$50 Max |
||||
Awards, Student |
01 |
CEO, VP |
No |
$100 Max; Requires reporting to the KCTCS Office of Student Financial Aid for purposes of award eligibility. |
||||
Graduation Decorations |
01 |
CEO |
No |
$1,000 Max |
||||
Retirement Recognition Gift, Employee |
01 |
CEO, VP |
No |
$250 Max |
||||
Retirement Recognition Gift, KCTCS Regent |
01 |
KP |
No |
$250 Max |
||||
Retirement Recognition Gift, College Board |
01 |
CEO |
No |
$250 Max |
||||
Recognition Gift of a Friend of the College |
11 |
CEO |
No |
$100 Max |
||||
Memberships in Professional Organizations (Institutional) |
01 |
CEO, VP |
No |
Shall be in the name of KCTCS or College |
||||
Memberships in Professional Organizations (Individual) |
01 |
CEO, VP |
No |
Attach business rationale for audit purposes |
||||
Memberships in Professional Organizations (Individual) |
11 |
CEO, VP |
Yes |
If not required by KCTCS | ||||
Employee Certifications, Dues or Fees |
01 |
CEO, VP |
No |
If required by KCTCS |
||||
Employee Certifications, Dues or Fees |
11 |
CEO, VP |
Yes |
If not required by KCTCS | ||||
Professional Licenses |
01 |
CEO, VP |
No |
If required by KCTCS |
||||
Professional Licenses |
11 |
CEO, VP |
Yes |
If not required by KCTCS | ||||
Individual Club Memberships, Civic |
Pvt |
CEO, VP |
Yes |
|||||
Individual Club Memberships, Service |
Pvt |
CEO, VP |
Yes |
|||||
Individual Club Memberships, Fraternal |
Pvt |
CEO, VP |
Yes |
|||||
Individual Club Memberships, Social |
Pvt |
CEO, VP |
Yes |
|||||
Flowers, Classroom Use |
01 |
CEO, VP |
No |
For instructional purposes |
||||
Flowers, Employee Illness |
11 |
CEO, VP |
No |
$75 Max Excluding Delivery |
||||
Flowers, Funerals Employee, Spouse, or Immediate Family |
01 |
CEO, VP |
No |
$75 Max Excluding Delivery |
||||
Flowers, Funerals Donor |
11 |
CEO, VP |
No |
$75 Max Excluding Delivery |
||||
Flowers, Table Center Pieces |
01 |
CEO, VP |
No |
$30 Max per Table Excluding Delivery |
||||
Flowers, Congratulatory |
11 |
CEO, VP |
No |
$100 Max Excluding Delivery |
||||
Flowers, Appreciation |
11 |
CEO, VP |
No |
$100 Max Excluding Delivery |
||||
Greeting Cards |
11 |
CEO, VP |
No |
KCTCS/College Name Included - Shall be for Official Business Purposes Only; Personal Cards shall be Paid from Private Funds |
||||
Holiday Decorations |
11 |
CEO, VP |
No |
|||||
Contributions or Cash Donations |
Pvt |
CEO, VP |
No |
|||||
KCTCS or College Gala |
01 |
CEO, VP |
No |
College Official Guests Only, Unless Employee is in Working Capacity | ||||
Chamber of Commerce Events |
01 |
CEO, VP |
No |
CEO or Designee |
||||
Community Events; Public Relations |
01 |
CEO, VP |
No |
CEO or Designee; Not Personal or Recurring in Nature |
||||
Tickets to a Fund Raising Event |
11 |
CEO, VP |
No |
For Public Relations Purposes Only |
||||
Raffles |
Pvt |
CEO, VP |
No |
|||||
Relays, Runs, Golf Scrambles, Etc. |
Pvt |
CEO, VP |
No |
CEO = Chief Executive Officer
VP = System Office Vice President
KP = System Office President