Special Purchase Authority | KCTCS

Administrative Procedures

Special Purchase Authority

Policy Number: 5.4.8-P

Current Effective Date: 07/01/2019

Original Effective Date: 01/01/2015

Revision Dates: 01/01/2015, 03/01/2015, 5/30/17, 01/01/2018

Revision Number: 4

Revision Summary: Prior Business Procedure 4.10

Responsible Official: Director of Procurement to Payment

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:

  1. Non-Discretionary Funds (Fund 01)
  2. Discretionary Funds (Fund 11)
  3. 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 System Director of Business Services 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. 

  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.

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. 

  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

7.2

Participating in relays, runs, golf scrambles, etc. is not considered sponsorship or advertising. Questions should be directed to KCTCS System Director of Business Services.

7.3

Business units should expense sponsorships to account code 50550.

7.4

Contact KCTCS System Director of Business Services prior to agreeing to any sponsorship over $500.

7.5

Advertising is recognized as competitive pricing procurement.

  1. Marketing (college or system office) must 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 Resource Development.

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 must 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

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 must 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).

  1. The following documents must be forwarded toKCTCS Office of Procurement to Payment Services prior to an international supplier providing services toKCTCS:
    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

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

Must be in the name of KCTCS or College

Memberships in Professional Organizations (Individual)

01

CEO, VP

No

If required by KCTCS

Memberships in Professional Organizations (Individual)

11

CEO, VP

Yes

 

Employee Certifications, Dues or Fees

01

CEO, VP

No

If required by KCTCS

Employee Certifications, Dues or Fees

11

CEO, VP

Yes

 

Professional Licenses

01

CEO, VP

No

If required by KCTCS

Professional Licenses

11

CEO, VP

Yes

 

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 - Must be for Official Business Purposes Only; Personal Cards must 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