Revised: July 1, 2014
Original Number: 99
Original Date of Issue: July 26, 1977
March 27, 1984
May 6, 1985
|203||February 9, 2009|
The purpose of this policy memorandum is to define institutional approval levels which are required for institutional expenditures.
Expenditures on behalf of the College fall into six categories:
Approval requirements for expenditures in each of these areas are discussed below.
Internal financial control procedures, as well as the requirements of outside auditors, specify that college personnel should not approve their own petty cash expenditures. To conform with this principle, the following hierarchy of petty cash expenditure approval is indicated:
Subject to the provisions of Policies and Procedures Memorandum No. 202, trustee approval of the operating budget is approval to effect the programs contained therein. Within the guidelines provided below, the Organizational unit (cost center) manager is authorized to undertake the expenditures contained within the approved budget plan.
All supplies and other goods or services (except equipment repair, memberships, subscriptions, capital items or travel) should be requisitioned using an on-line requisition. Equipment leases should be coordinated with the Budget Office to ensure compliance with Commonwealth regulations. All purchase requisitions must be approved by an Organizational unit (cost center) Manager, their Supervisor, or the Senior Officer. Under no circumstances should an approved signature or electronic authorization be provided by anyone other than the responsible individual.
Organizational unit (cost center) Managers are authorized to approve all operating expenditures to a level of $1,000. A lower approval threshold may be requested by their Dean or Administrator.
Deans, Directors and other employees with budgetary responsibilities over a division are authorized to approve all operating expenditures to a level of $5,000. A lower approval threshold may be requested by their Senior Officer.
Senior Officers are authorized to approval all operating expenditures to a level of $10,000.
Change order requests to existing Purchase Orders are to be prepared on a paper Purchase Requisition Form and require the following information:
Any purchase requisition with a value of $10,000 or greater must be approved by the President. This includes requests for change orders which, when added to the original purchase order value, will cause the cumulative value of the purchase order to exceed $10,000.
No commitment may be made involving consulting services (expense code 7055) where the commitment within any fiscal year will exceed $1,000 without presidential approval.
A Capital Expenditure is defined as an expenditure for the purchase of land, building, equipment, software, machinery, furniture and fixtures where the unit cost of an individual item is $1,000 or greater and the expected life of the item exceeds one year. Furniture and fixture expenditures related to the outfitting of complete rooms, where the unit cost of an individual items are less than $1,000, may be considered capital expenditures under certain circumstances. The Controller’s Office should be contacted for a decision on these situations.
Any program for development or modification of college-owned facility and equipment involving the use of bond proceeds or other special capital funding source requires the approval of the Board of Trustees. Written justification for such development along with the purchase requisition and planning documents, approved by the President, must be presented to the Interim Vice President for Finance and Facilities for placement on the agenda of the Business Affairs Committee of the Board.
All campus development projects with a value of fifty thousand dollars ($50,000) or greater must have prior Board approval.
Agreements involving the College in contractual arrangements with other institutions or agencies may not be made without approval of the President or his or her designee.
In addition to the above requirements, approvals for grant expenditures are determined by the Controller’s Office in order to comply with the requirements of the grantor. Each grant will be assigned a Financial Administrator who will adhere to the approval processes determined by the Controller’s Office.
Occasionally, because of vacations or absences from campus, it will be necessary for someone other than the Organizational unit (cost center) managers to authorize expenditures. If this occurs, a memo authorizing an alternative signature should be sent to the Budget, Controller and Purchasing officers. No alternative signature for expenditure will be honored unless there is an authorizing memo on file.
Date Effective: July 1, 2014