Administrative Procedures

Special Purchase Authority

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:

1. Non-Discretionary Funds (Fund 01)
2. Discretionary Funds (Fund 11)
3. Private Funds (not paid or tracked by KCTCS)

4. Alternate Funding Source

4.1

If funding is unavailable in the primary fund source, an alternate fund can be utilized. 

1. Non-Discretionary (Alternate fund 11 or Private) 
2. Discretionary (Fund 11)
3. Private (no alternate) 
4. Fund 12 (Grant) may be used if acceptable within the funded grant/contract proposal.

5. Restricted Goods and Services

5.1

Special approval is required when requesting purchases of restricted goods and services. (See appendix A)

6. Sponsorship and Advertising

6.1

KCTCS may sponsor activities, events, or projects in return for receiving recognition at the event. Sponsorship is not considered advertising. 

1. Recognition includes, but not limited to:
   1. KCTCS name
   2. College name
   3. College address 
   4. College phone number
   5. KCTCS web address 
   6. Description of services offered by the college 
   7. Listing of KCTCS colleges
2. KCTCS or college name can be included on:
   1. Event program 
   2. Table tent
   3. Banner
   4. Other equivalent items

6.2

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.

6.3

Business units should expense sponsorships to account code 50550.

6.4

Contact KCTCS Assistant Vice President of Business Services/COO prior to agreeing to any sponsorship over $2,500.

6.5

Advertising is recognized as competitive pricing procurement.

1. Marketing (college or system office) shall provide logo and current KCTCS advertising materials.

7. Donations and Giveaways

7.1

Individuals wanting to make a donation to KCTCS should be directed to either the local or KCTCS System Office of Institutional Advancement.

7.2

KCTCS System Office and Colleges are restricted from making donations.

7.3

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:

1. Student name
2. Student address
3. Student contact information
4. Monetary value of gift received
5. Gift cards shall not be replaced if lost, misplaced, or stolen

7.4

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.

7.5

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 Office of Payroll Services for tax reporting purposes on Form PR60.

1. Length of service awards are awarded to employees at 5 years, 10 years, 15 years, 20 years, and 25 years. 
   1. Any service awards given that are not in 5 year increments (example: 1 year) are taxable to employees unless the value is considered de minimis and follow the criteria required for service awards. 
2. Length of service awards should not exceed a value of $400. 
   1. Any service awards over $400 shall be taxable to the employee. 
   2. Service awards shall not be in the form of cash or cash equivalents, vacations, meals, lodging, or tickets to theater and/or sporting events.

8. International Suppliers

8.1

International supplier payments may be subject to US income tax withholding (IRS publication 515).

1. The following documents shall be forwarded to KCTCS Office of Procurement to Payment Services prior to an international supplier providing services to KCTCS:
   1. Copy of the contractor’s VISA
   2. Completed W8 BEN form
   3. Form 8233 (If the international contractor is claiming exemption from withholding under a tax treaty)

APPENDIX A

RESTRICTED GOODS AND SERVICES

 

CEO = Chief Executive Officer (for colleges)

VP = System Office Vice President (for system office)

KP = System Office President

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
Length of Service Awards, Employee	01			CEO, VP	No			See section 7.5 for service award maximums and taxable exceptions
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			$400 Max
Retirement Recognition Gift, KCTCS Regent	01			KP	No			$400 Max
Retirement Recognition Gift, College Board	01			CEO	No			$400 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