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PURCHASING PROCEDURES MANUAL
PURCHASING PROCEDURES MANUAL Revised February 21, 2014 Table of Contents Purchasing Overview ..................................................................................................................................... 4 Code of Ethics and Governing Statutes & Policies ..................................................................................... 5 Code of Ethics ............................................................................................................................................. 5 Governing Statutes & Policies................................................................................................................... 5 Obligations Incurred Prior to an Encumbrance (16A Violation) ................................................................. 6 Purchasing up to $15,000 ............................................................................................................................... 7 Process ........................................................................................................................................................ 7 Purchasing $15,000 - $50,000 ........................................................................................................................ 8 Process ........................................................................................................................................................ 8 Purchasing of $50,000 or more ...................................................................................................................... 9 Process ........................................................................................................................................................ 9 Purchase Control System Status Codes .................................................................................................... 10 Purchase Control System Security ............................................................................................................. 11 Cellular Phone - Purchase, Payment and Reimbursement ....................................................................... 12 Also see: .................................................................................................................................................... 12 Certificate of Compliance (Affirmative Action) .......................................................................................... 13 Certificates of Insurance .............................................................................................................................. 14 POLICY REQUIREMENTS......................................................................................................................... 14 Copiers (Rentals) .......................................................................................................................................... 16 Copier Rental Agreements (On State Contract) ..................................................................................... 16 Copier Rental Agreements (Not on State Contract) .............................................................................. 16 Food Purchases ............................................................................................................................................ 17 Maintenance/Licensed Agreements ............................................................................................................ 17 Proprietary Advertising ................................................................................................................................ 17 Sole Source Items ......................................................................................................................................... 18 Special Expenses .......................................................................................................................................... 19 Expenses Covered .................................................................................................................................... 19 Expenses Not Covered ............................................................................................................................. 20 Targeted/Economically Disadvantaged Vendor Program ......................................................................... 21 Helpful Hints & Reminders ........................................................................................................................... 22 Attachments .............................................................................................................................................. 22 Central Receiving...................................................................................................................................... 22 Certificates of Insurance .......................................................................................................................... 22 Equipment Purchases .............................................................................................................................. 22 Fax – Purchasing ...................................................................................................................................... 22 Invoice Attached ....................................................................................................................................... 22 Page 2 Maintenance Agreements, Subscriptions .............................................................................................. 22 Memo Screen............................................................................................................................................. 23 Number of Items on a PO Request .......................................................................................................... 23 Prepayment ............................................................................................................................................... 23 Printed Purchase Orders.......................................................................................................................... 23 Travel ......................................................................................................................................................... 23 Xerox/Canon/Sharp Copier Supplies ...................................................................................................... 23 Who to Call for Help or Questions .............................................................................................................. 24 Direct Pay - Invoice Attached .................................................................................................................. 24 Hardware/Software Problems .................................................................................................................. 24 PCS Help Desk .......................................................................................................................................... 24 Purchase Orders ....................................................................................................................................... 24 Purchasing Cards (VISA) ......................................................................................................................... 24 Purchasing Director.................................................................................................................................. 24 State Contracts and Professional/Technical Contracts ........................................................................ 24 Vendor Numbers ....................................................................................................................................... 24 Commonly Used Forms ................................................................................................................................ 24 MnSCU Object Codes ................................................................................................................................... 25 Page 3 Purchasing Overview It is the intent of the Purchasing Department at St. Cloud State University to provide the campus community with responsible purchasing. This includes timely purchases of goods and services at the lowest possible cost with consideration of quality, quantity and delivery based on market conditions. This will be accomplished as per laws, rules and regulations of the State of Minnesota, Minnesota State Colleges and Universities and St. Cloud State University. In recent years, the University has benefited from policy changes which have granted us increased spending authority. Along with these enhanced abilities comes greater accountability and responsibility to follow procedures and stay within guidelines. This will be accomplished by the cooperation and planning of all SCSU departments. For assistance in navigating the Purchase Control System (PCS) which will enable you to process a purchase order, please review this step by step guide to PCS. The following manual has been produced to guide you through most of your purchasing needs. See also the Purchasing Card Manual and the Professional/Technical Contract Manuals for additional information. Page 4 Code of Ethics and Governing Statutes & Policies Code of Ethics State employees are covered by Minnesota Statute 43A.38 Code of Ethics and Minnesota Statute 43A.39 Compliance with Law. It covers such topics as acceptance of gifts, conflicts of interest, and use of confidential information. Per Minnesota State Colleges and Universities Policy 5.14.5 Part 11 Subpart B: "Minnesota Statute 15.43 states that no employee of the state in direct contact with suppliers or potential suppliers to the state, or who may directly or indirectly influence a purchasing decision or contract by establishing specifications, testing purchased products, evaluating contracted services, or otherwise has official involvement in the purchasing or contracting process may: 1. Have any financial interest or have any personal beneficial interest directly or indirectly in the contracts or purchase orders for goods or services used by, or purchased for resale or furnished to the system office, college or university; or 2. Accept directly or indirectly from a person, firm, or corporation to which a contract or purchase order has been or may be, awarded, a rebate, gift, money, or anything of value other than items of nominal value. No such employee may further accept any promise, obligation or contract for future reward. Textbooks, software, and other course materials authored by an employee of the Minnesota State Colleges and Universities may be used as required course material. Instructors may accept free samples of textbooks and related teaching materials.” Violation of the procedures above may result in reduced spending authority. Governing Statutes & Policies Minnesota Statute 43A.38 Code of Ethics Minnesota Statute 43A.39 Compliance with Law Minnesota Statute 471.345, Uniform Municipal Contracting Law Minnesota Statute 16A.15 Accounting System, Allotment and Encumbrance Minnesota State Colleges and Universities Policy 5.14 Procurements and Contracts Minnesota State Colleges and Universities Policy 5.14.5 Purchasing Procedure Page 5 Obligations Incurred Prior to an Encumbrance (16A Violation) Definition: Employees shall not commit the University to a purchase or agreement before the purchase order is approved or the contract is fully executed (in either case the purchase order status needs to be 450). Policy: Obligations incurred prior to an encumbrance in the Purchasing Control System is a violation of M.S. 16A.15 subdivision 3 and Minnesota Colleges and Universities Purchasing Policy 5.14.5 Part 5. “Funds must be encumbered prior to making an obligation through an authorized employee certifying that the accounting system shows sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it. An expenditure or obligation authorized or incurred prior to encumbering funds is illegal and ineligible for payment until made valid and is in violation of M.S. 16A.15, Subd. 3. An employee authorizing or making the payment, or taking part in it, is liable to the state for the amount paid. A knowing violation of M.S. 16A. 15, Subd. 3 is just cause for the employee’s removal. The state cannot agree to indemnify third parties or hold them harmless (M.S. 10.17); Minn. Const. Art. XI, Sec. 1.” Procedure: The individual in violation must complete a 16A form. It is to be signed by the person responsible for the violation and submitted with the invoice/contract/PO paperwork to Business Services. The Director of Business Services will determine whether payment is approved. 16A violation forms are kept on file and are subject to review by internal and legislative audit. Form 16A (SCSU019) (.pdf) Page 6 Purchasing up to $15,000 Purchases less than $15,000 do not require written quotes. The $15,000 limit is not by item, but by total purchase. The requester is encouraged, however, to check with more than one vendor to obtain the lowest price. Do Not give out the purchase order number to the vendor until it has been approved by Purchasing (450 status.) The price of an item is only one component of pre-audit. There are other variables, based on the funds used, to determine whether your request is a legitimate purchase. Purchasing cards may be used for purchases for many purchases under $15,000. Refer to the Purchasing Card Manual for additional information. Process 1. Enter your purchase order request through PCS. 2. Indicate in the memo if you have any information in connection with this request, or any quotes, forms or other documents that you may be sending to Purchasing as an attachment. 3. Reference the purchase order number on your attachments and send them to pre-audit in Purchasing. 4. Release your request to the Purchasing Department (050 status). 5. The Purchasing Department will proceed with the processing of your order under Minnesota State Colleges and Universities Purchasing guidelines. 6. When your purchase order is approved and printed, it will be at 450 status (open purchase order.) 7. Purchasing will send the original printed purchase order to the Responsible Person for the account. Be sure to make a copy for your files before you mail, fax or phone in the order. The vendor may also want the original to confirm the order. If this is the case, be sure to mark the purchase order “CONFIRMING ORDER” before sending the hard copy to them in order to prevent a duplicate shipment. If you pick up the order (or if your order was delivered or sent to you directly) BE SURE TO CALL RECEIVING @ 8-4713 so they can release the receiving copy. This is required before an invoice can be paid. Page 7 Purchasing $15,000 - $50,000 If the amount of the purchase is estimated as $15,000 or more, but less than $50,000, the purchase may be made by obtaining two or more written quotations, (one being the successful vendor). If the purchase is from an approved state contract vendor then one written quote from that vendor referencing the state contract number is all that is required. Quotations may be obtained in written form via Facsimile (Fax), US Postal Service, Delivery Service, or Internet. Quotations must have a specific date and time for submission. All quotations obtained will be kept in Purchasing on file until audited. Please download the quote form (DOC) and use at your convenience. Valid quote must include: Name of company Signature of company representative Delivery charges are FOB Destination Date of quote Price Valid for 30 days Process 1. Enter your purchase order request through PCS. 2. In memo of purchase order, indicate “quotes are being forwarded to Purchasing” and be sure to write the purchase order number on the quotes for ease of matching up in pre-audit. 3. Indicate in Header Page 2, under “Instructions to Vendor” the name of the successful vendor representative and date of bid (i.e. As per quote of Mary Smith 10-06-04.) 4. Reference the purchase order number on your attachments and send them to pre-audit in Purchasing. You may fax them to Purchasing @ 8-4175. 5. Release your request to the Purchasing Department (050 status). 6. From this point, quotes are reviewed and approved to a 450 status code. 7. Purchasing will send the original printed purchase order to the Responsible Person for the account. Be sure to make a copy for your files before you mail, fax or phone in the order. The vendor may also want the original to confirm the order. If this is the case, be sure to mark the purchase order “CONFIRMING ORDER” before sending the hard copy to them in order to prevent a duplicate shipment. Note: Purchasing reserves the right to re-bid any purchase order request if quotes are unacceptable or if no quotes are submitted. If you pick up the order (or if your order was delivered or sent to you directly) BE SURE TO CALL RECEIVING @ 8-4713 so they can release the receiving copy. This is required before an invoice can be paid. Page 8 Purchasing of $50,000 or more If the amount of the purchase order is estimated to be $50,000 or more, Purchasing will conduct a sealed bid process. If the purchase is from an approved state contract, only one written quote from that vendor referencing the state contract number is required. Process 1. Enter your request through PCS with all specs, special requests and estimated amounts. 2. Indicate in the memo a list of suggested vendors and their current addresses, phone and fax numbers, and names of vendor representatives. 3. Reference the purchase order number on your attachments and/or additional specifications and send them to pre-audit in Purchasing. 4. Release your request to the Purchasing Department (050 status.) 5. The Purchasing Department will proceed with the bid process under the Minnesota State Colleges and Universities purchasing guidelines. (Your order will be at a 200 status until bid opening.) 6. You can review the memo of your purchase order request for information regarding the upcoming bid opening date and other pertinent information as it becomes available. 7. After the bid opening, the bid will be awarded, and the purchase order will be approved and printed (450 status). 8. Purchasing will send the original printed purchase order to the Responsible Person for the account. Be sure to make a copy for your files before you mail, fax or phone in the order. The vendor may also want the original to confirm the order. If this is the case, be sure to mark the purchase order “CONFIRMING ORDER” before sending the hard copy to them in order to prevent a duplicate shipment. If you pick up the order (or if your order was delivered or sent to you directly) BE SURE TO CALL RECEIVING @8-4713 so they can release the receiving copy. This is required before an invoice can be paid. Page 9 Purchase Control System Status Codes If you have a question on a purchase order, please check the status code of your request in PCS. This will help identify who has your purchase order. If you still have questions, call the extension listed behind the status codes below for assistance. The Purchasing Department cannot view any status under 050. Some of the status codes you may see are: 000 - Data Entry Stage--Purchase order entry only. 020 - Insufficient Funds--Check your budget balance, submit a budget transfer if necessary and try again to release your request. 030 - Waiting for Authorization--Responsible person or Authorized authority required to approve purchase order. 050 - Released to the Purchasing Department--Purchasing will view your request in the order in which it was received. Questions call 8-4120. 100 - Awaiting Pre-Audit—Purchasing has reviewed your request but has not taken any action. Questions call 8-4120. 110 - Hold in Abeyance--Purchasing may be waiting for quotes or attachments which you indicated are being sent in the mail, or waiting for logo and/or printing approval from University Communications. Check memo for further information and who may be holding purchase order. 140 - Purchasing Director’s Decision--Purchase order request has been referred to the Purchasing director for further processing. Questions call 8-4788. 150 - Pre-Audit and Hold--Awaiting further processing--For IT pre-audit and approval of electronic devices, maintenance, consultant services, software licenses and other IT related purchases. 200 - For Local Bid Processing--May be in the process of obtaining quotes, sealed bids, off-campus printing bids through University Communications, Etc... Questions call 8-4001. 230 - Marked for Professional/Technical Contract—Purchasing is waiting for the Professional/Technical Contract forms. Questions call 8-3136. 250 - Marked for PO Processing--Pre-Audit complete but the purchase order is not yet printed, may be waiting for a batch printing process. Questions call 8-4120. 450 - Open Purchase Order--Purchase order has been printed. Questions call 8-4120. Invoice/Receiving payment questions: call 8-3135. 500 - Purchase Order Completed and Closed--The purchase order has been final paid. 9xx - Cancelled Purchase Order--See memo for possible explanation. Page 10 Purchase Control System Security The Purchase Control System (PCS) is an electronic authorizing system. Therefore, security for your accounts is very important. All departments are responsible for notifying the Purchasing Department when there is a change in account responsibility, data entry and/or authorizing access. As people change positions, transfer around or leave campus, their PCS access remains active until it is deleted at your request. If an employee leaves your department, you will submit a MnSCU PCS Security Authorization (PDF) form to Purchasing to delete their access to your accounts. If you have a new employee in your department, submit this form to Purchasing to add the proper access for that person. Print page one if you want Department Head access or page two for Requisition Originator access. The responsible person for the cost center can also email Pat McMahon if the level of authorization is known. Attachment A: If your department has a change of dean, chairperson or other account responsible (authority) position, the PCS Account Security form (PDF) must be filled out and sent to Purchasing to make the necessary changes. This form is a “Statement of Understanding” that the current responsible person for the account knows and understands that the listed persons have authorizing rights and budget access to the accounts for which they are held responsible. The Purchasing Department does not initiate or enter requests into PCS. Requests for purchase orders are to be submitted from the departments to Purchasing using PCS. Request for purchase orders submitted on IR1400 forms will not be processed and will be returned to the department to submit via PCS. For this reason, it is important to cross-train persons who would serve in the role as back-up support. Page 11 Cellular Phone - Purchase, Payment and Reimbursement Policy: Cellular phones and plans purchased by St. Cloud State University are state property and fall under the Departments of Finance, Administration, and Employee Relations policy 0807-04, as well as the Departments of Administration and Employee Relations Electronic Communication and Technology Ethics policy, Minnesota State Colleges and Universities Board Policy 1C.2 and 5.22, and Minnesota Statues 43A.38. The purchase of prepaid cellular phones and prepaid phone cards is prohibited. Departments who choose to purchase cellular phones/plans must annually review cell phone users and determine if the need still exists for employee usage, and if the existing calling plan still meets the users’ needs. The use of state cellular phones for personal use is prohibited. Improper use of this equipment will result in disciplinary action in accordance with applicable laws, rules, procedures and labor contracts. Procedure: Employees must review and verify their cellular phone usage on the billing documents. Managers and supervisors are responsible for monitoring and reviewing cellular phone billings of their staff on a monthly basis to ensure proper employee usage and cost-effectiveness, and for approving billings for payment processing. The approved billing, referencing the purchase order number, is returned to Business Services, for payment. Employees are eligible for reimbursement of business calls on their personal cell phones with departmental approval. To be reimbursed, copies of the cellular phone service provider invoices identifying state business calls attached to the Employee Business Expense form and approved by the manager/supervisor is submitted to Business Services. Also see: Minnesota State Colleges and Universities Policy 1C.2 and 5.22 http://www.mnscu.edu/Policies/1C2.html http://www.mnscu.edu/Policies/522.html M.S. 43A.38 http://www.revisor.leg.state.mn.us/stats/43A/38.html Page 12 Certificate of Compliance (Affirmative Action) Definition: Minnesota Statute 363A.36 requires vendors to submit to the Minnesota Department of Human Rights the business’ affirmative action plan for the employment of minority persons, women, qualified disabled individuals, and veterans for any state contracts in excess of $100,000. The proof of approval from Minnesota Department of Human Rights is a Certificate of Compliance. This certificate is valid for two years. The vendor must have an approved certificate before award of the contract. If the vendor is in the process of obtaining a certificate, it must be proved that the vendor applied for the certificate prior to the bid or proposal opening. Vendors are exempt from the requirement if they did not employ more than 40 full-time employees on a single working day during the previous 12 months in the state where the business has its primary place of business. This is verified by Minnesota State Colleges and Universities form PUR010. Policy: A Certificate of Compliance is required for all purchases over $100,000. Procedure: All awards exceeding $100,000 will include either a Certificate of Compliance from the Minnesota Department of Human Rights or Minnesota State Colleges and Universities form PUR010 verifying the vendor is exempt from M.S. 363A.36. Links: M.S. 363A.36 Minnesota Human Rights Act PUR010 Affirmative Action Compliance (MnSCU .doc) Page 13 Certificates of Insurance Definition: A certificate of insurance is verification that a vendor’s insurance limit meets or exceeds state requirements to contract with the University. Policy: All vendors are required to submit a certificate of insurance prior to the start of work on campus. Acknowledged certificates are filed in Business Services. Procedure: The vendor shall not commence work under the contract until they have obtained all the insurance described below and Business Services has approved such insurance. All policies and certificates shall provide that the policies shall remain in force and effect throughout the term of the contract. POLICY REQUIREMENTS 1. 2. 3. Workers' Compensation Insurance: A. Statutory Compensation Coverage B. Coverage B Employers Liability with limits of not less than: $100,000 Bodily Injury by Disease per Employee $500,000 Bodily Injury by Disease Aggregate $100,000 Bodily Injury by Accident Automobile Liability Insurance A. Minimum Limits of Liability: $2,000,000 Per Occurrence - Bodily Injury and Property Damage Combined Single Limit B. Coverages: Owned Automobile, if any Non-owned Automobile Hired Automobile General Liability Insurance A. Minimum Limits of Liability: $2,000,000 - Per Occurrence $2,000,000 - Annual Aggregate $2,000,000 - Annual Aggregate applying to Products/Completed Operations B. Coverages: Premises and Operations Bodily Injury and Property Damage Personal & Advertising Injury Blanket Contractual Products and Completed Operations Other: Please List_________________________________ Named as Additional Insured: The Board of Trustees of the Minnesota State Colleges and Universities and its officers and members, to include St. Cloud State University, the State of Minnesota, officers and employees of the State of Minnesota, the Architect and its agents (if applicable) shall be named as Additional Insureds. The Additional Insured coverage is limited to insured claims arising out of the Contractor’s negligence or the negligence of those for whom the Contractor is responsible, excluding coverage for the Additional Insureds’ separate or independent negligence. Contractor's policy(ies) shall be primary insurance to any other valid and collectible insurance available to the Owner and all Insured Parties with respect to any claim arising out of this contract. The Contractor will provide Owner and all Insured Parties with thirty (30) days advance written notice of cancellations, non-renewals or reduction in limits or coverage or other material change. Contractor is responsible for payment of insurance deductibles. If Contractor is selfinsured, a Certification of Self-Insurance must be attached. Page 14 4. 5. Professional Liability/Miscellaneous Liability Insurance (Only necessary if there is a professional liability exposure) Coverage for negligent acts, errors or omissions arising out of the performance of professional services included in the contract. A. Minimum Limits of Liability: $2,000,000 - Per Occurrence $2,000,000 - Annual Aggregate B. Any deductible will be the sole responsibility of the Contractor and may not exceed $50,000 without the approval of the State. C. The retroactive or prior acts date of such coverage shall not be after the effective date of this contract. D. The Contractor shall maintain such insurance for a period of at least three (3) years, following completion of the work. If such insurance is discontinued, extended reporting period coverage must be obtained by Contractor to fulfill this requirement. Additional Insurance Conditions A. Contractor’s policy(ies) shall be primary insurance to any other valid and collectible insurance available to the State of Minnesota with respect to any claim arising out of the contractor’s performance under this contract. B. Contractor’s policy(ies) will provide the State of Minnesota with thirty (30) days advance written notice of cancellation. C. Contractor is responsible for payment of contract related insurance premiums and deductibles. D. If Contractor is self-insured, a Certification of Self-Insurance must be attached. E. Contractor’s policy(ies) shall include legal defense fees in addition to the liability policy limits, with the exception of 4. above. F. Contractor shall obtain insurance policy(ies) from insurance company(ies) having an “AM Best” rating of A- (minus), Financial Size Category of VII or better, and authorized to do business in the State of Minnesota. G. An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits to satisfy the full policy limits required by the Contract. Link to MnSCU Risk Management information: http://www.finance.mnscu.edu/facilities/insuranceriskmgmt/docs/GENERAL_INSURANCE_REQUIREMENTS_21.pdf Page 15 Copiers (Rentals) Copier Rental Agreements (On State Contract) Contract rental agreements are negotiated by the Department of Administration for the State of Minnesota for our use. Current contract information can be obtained by contacting Susan Nelson at ext. 8-6463. However, you will need to contact your vendor of choice to obtain a quote. When entering your initial purchase order description please include the following: Line item #1--New (list the number of months) month rental agreement of a (list the brand and model number) copier to include (list options added other than standard which affect the monthly rental charge such as finishers and extra trays). Maintenance to include (list the number of copies) per month with overages at (list cost per copy charge) per copy. Be sure your PO shows the correct rental period so that at the end of your agreement you are certain of the expiration date to avoid billing issues. For example, you could include the following language: This purchase order is for the period of July 1, 20xx-June 30, 20xx and is for months 1-12 of 48. Or, this purchase order is for the period of October 1, 20xx-June 30, 20xx and is for months 1-9 of 48. Your PO must also include your departmental contact name, phone number and location of the machine. This should be added at the end of your description so it is easily found. For order approval, submit an itemized contract quote from your copier vendor. It must show the contract number, base rental rate, any options with additional costs and the maintenance costs all separated out to show how they arrived at the total monthly rate you were quoted. When the PO is approved, I will fax the order to the vendor and send the original to you for your records. Once your copier is installed, it is important to enter the install date in the memo of your PO. You may also email me with a request to change your PO to reflect the actual install date so that the dates and months of the rental are correct. The following fiscal year, you will duplicate your purchase order changing the beginning of the PO from the word “New” to “Continuation of” and updating the dates and months of the rental. As always, do not sign anything for vendors regarding agreements as our purchase order is the contract in this case. Copier Rental Agreements (Not on State Contract) Offers from vendors for machines not on state contract, promotional or better price than state contract, etc… will require the signing of an agreement. Please be aware that you do not have the authority and should not be signing any agreements for the University. Since in this case you are not working with a state contract, you will need to secure two quotes unless the total of the rental (over the life of the agreement) is under $15,000. In addition, if the rental is for more than 1 year (the current fiscal year), you must secure the approval from the Administrative Affairs Office as this agreement would involve obligating future fiscal funding. This step is not needed with state contract rentals because there is a “funding out” clause included in those contracts. Once you have the approval and the quotes, you will enter the purchase order referencing in the memo that the quotes, approval and agreement are forthcoming. If you have questions on the above or any of the purchasing policies and procedures, please do not hesitate to call me, Susan Nelson at ext 8-6463. Page 16 Food Purchases Definition: Food purchases include grocery, restaurant, or catering. Policy: Food purchases are strictly limited to agency accounts (900xxx) and accounts where budget was established in either object code 1850 or 3137. All other cost centers are prohibited from food purchases. Exceptions to this policy are only allowed with special expense approval or with special Senate Finance Committee approval. Procedure: Agency accounts: Submit PR1400 and original invoice/receipt to Business Services. Alcoholic beverages will not be paid to a vendor nor reimbursed to an individual. Maintenance/Licensed Agreements All maintenance and license agreements must be entered into the Purchase Control System. Although most of the purchases are addressed directly to the departments, most of the follow-up information, (addendums, renewal notices and data safety materials) are received by Business Services. The president and his/her designee are the only persons authorized to sign contracts on behalf of the University. Any use of a non-Minnesota State Colleges and Universities form requires the review of the Office of Attorney General and approval of the Minnesota State Colleges and Universities Vice ChancellorChief Financial Officer. Proprietary Advertising Definition: Proprietary advertising is for marketing purposes. It enables the University to reach a specific audience with information. Most advertising is considered proprietary (sole source) because of the specific audience being addressed, the choice of specific radio or television stations, during certain time periods, or the necessity to advertise in a specific publication to reach a particular market. Proprietary advertising is for the rental of billboards, payment for time on radio and television, and payment for advertising space in written publications. Proprietary advertising is not for vendors that make/create the “ads.” That would follow the policy for professional/technical services contracts. Policy: Proprietary advertising is considered sole source. Procedure: A purchase order request is processed through PCS. Any purchase order of $15,000 or more will require one written quote. In the memo of the purchase order request, the department will indicate that the purchase is proprietary advertising and one quote is being sent to Business Services. Purchases over $100,000 will require approval from Minnesota State Colleges and Universities Vice Chancellor-Chief Financial Officer. Page 17 Sole Source Items Definition: Sole source items are items that can only be purchased from one source because that one source legally controls the sale or distribution of the items. Sole source items are NOT available on the competitive, open market, but must be purchased from only one source. Some examples of possible sole source purchases are: Computer Software (including licensing, license renewals, rental and software maintenance services) Educational Supplies Equipment Maintenance Agreements Repair Parts Subscriptions Advertising Policy: Sole source purchases are required to follow all purchasing procedures except the requirement of competitive process. To justify sole source, the department is required to obtain documentation from the vendor proving sole source and provide justification as to why the sole source item is necessary. Procedure: The department should process a purchase order request through PCS. Sole source purchase order requests of $15,000 or more require one written quote from the sole source vendor along with documentation from the vendor proving sole source. The department must also provide a justification statement explaining why the sole source item is necessary (versus a non-sole source item). Reference all documents in the memo of the purchase order request and send them to Business Services. Purchase requests over $100,000 will require the approval of Minnesota State Colleges and Universities Vice Chancellor-Chief Financial Officer. Page 18 Special Expenses Definition: Special expenses are expenses incurred in connection with work-related responsibilities or official functions not generally supported with public funds. Policy: Except in emergency situations, approval is required before any special expense is incurred and before commitments involving special expenses are made. Employees must obtain approval of special expenses before incurring such expenses or the payment may be denied. Requests received after the event or too late to provide a proper review must include an explanation why the request was not provided in a timely manner. Expenses Covered The following expenses are covered where the benefits of the employee's attendance or participation will accrue primarily to the state: 1. 2. 3. 4. 5. 6. 7. 8. 9. Full cost of a meal when it is part of the structured agenda of a conference, workshop, seminar, or meeting which the president, or his or her designee, has authorized the employee to attend, whether or not the employee is in travel status. Meals and related expenses, or non-alcoholic refreshments and food served when conducting business with citizens; members of boards, commissions, task forces, or workgroups; foreign, federal, state, or local governmental officials and/or employees. Registration and tuition fees for conferences, seminars, workshops, or education courses. Education courses provided through a tuition waiver are not special expenses. Prior approval is required only if the cost exceeds $1,000 per participant. Non-alcoholic refreshments and food for University sponsored meetings, receptions for speakers, performers, and commencements; conferences; workshops; and other similar University sponsored meetings or activities that have predominantly non-state employees. Non-alcoholic refreshments, food and other conference costs for University sponsored events where registration fees are charged and the majority of the participants are non-state employees. Non-alcoholic refreshments and food for meetings that consist primarily of state employees when the non-alcoholic refreshments and/food are an integral part of the event and are necessary to sustain the flow of the meeting and to retain captive audience and meet one of the following criteria: a. a meeting with participants from many geographic locations where the majority of the participants are in travel status b. a department-wide or division-wide annual/quarter/semester staff meeting for all employees c. a department or division senior management planning or organizational meeting d. a department, division, college, university wide meeting regarding a topic(s) with department, division, college, university wide impact e. a structured training session, available to employees generally and conducted by persons outside the Minnesota State College and University System, provided it has been approved by the University. The above meetings shall be scheduled to minimize the inclusion of meals. Lodging if an employee is not in travel status: a. when weather conditions or other unforeseen occurrences warrant lodging; b. when University business or contract negotiations prevent the employee from returning home; or c. when the president, or his or her designee, authorized overnight participation in an approved event. Authorization should be based on the benefit of such participation to the University. Expense reimbursement for lodging, travel, and meals for one attendant for an employee with a disability that requires daily assistance in performing various personal tasks or who has special mobility needs. Expenses as follows for employees assigned to work at the State Fair: a. Fees and admission to the fairgrounds; b. One meal during each shift of fewer than ten hours or two meals during each shift of ten hours or more, subject to the meal allowances for in-state travel collective bargaining agreements or compensation plans; Page 19 c. Taxi fare for employees with a disability who are unable to drive or use other means of public transportation between their normal work station and the fairgrounds. 10. Expenses as follow for individual employee and board member awards and system, board, college, and university recognition events: a. Awards for individual or group achievements, which are limited to non-cash/non-negotiable items of nominal value as, provided for under IRS guidelines. Items of nominal value are those that have no market or retail value such as promotional or advertising items. b. Up to 100% food and non-alcoholic refreshment reimbursement for employees being recognized at annual employee recognition events. Reimbursement for travel in accordance with System Procedure 5.19.3. Reimbursement for alcoholic beverages is prohibited. Expenses Not Covered 1. 2. 3. 4. 5. Refreshments or meals for routine staff meetings. Private club memberships. Alcoholic beverages. Entertainment. Employee parties (including holiday parties). Procedure: Complete a Request to Incur Special Expense Form prior to the event. The form should identify the account number and be signed by the person responsible for that account. Submit the form to Business Services at least one week prior to the event. The Director of Business Services has the final approval on the form. All special expense forms are returned to the originator unless there is a PO pending awaiting the approved special expense form. Links: Minnesota State Colleges and Universities Policy & Procedure 5.20.1 Special Expenses Request to Incur Special Expenses (DOC) Request to Incur Special Expenses (PDF) Page 20 Targeted/Economically Disadvantaged Vendor Program The Minnesota Department of Administration, Materials Management Division (MMD) operates a program for Targeted Group and Economically Disadvantaged small businesses. The program has been in effect since July 1, 1990. Businesses eligible to participate in this program must be Minnesota-based small businesses. MMD sets variable size standards by industry in order to determine what a small business is. In setting the size standards, nationally published data on businesses in each industry is analyzed to determine the size of businesses that dominate that particular market. Using this approach, MMD has set a size limit that for some industries is $1 million in annual gross sales, for other industries the limit may be as high as $10 million or more in annual gross sales. The commissioner of Administration periodically designates businesses that are majority-owned and operated by women, persons with a substantial physical disability, or specific minorities as targeted group businesses within purchasing categories as determined by the commissioner. Targeted Group small businesses must be certified as such by MMD in order to participate in the program. By being certified with the MMD, the business may also be eligible to participate in similar state-funded programs operated by the Minnesota Department of Transportation (Mn/DOT) and several Metropolitan Agencies. To be certified as a Targeted Group small business, the business must be at least 51% owned by a woman, racial minority, or person with a substantial physical disability. In addition, the business must be operated and controlled on a day-to-day as well as long-term basis by the qualifying owner. In other words, ownership is not enough; operational control is also required. Once certified, Targeted Group small businesses may be eligible for up to 6% preference in selling their products or services or bidding on construction projects to the state in accordance with the Commissioner's designation of eligible businesses. In addition, MMD has the authority to set goals which require prime contractors to subcontract a portion of the work to certified Targeted Group businesses on contracts for construction or consulting services. To be certified as an Economically Disadvantaged small business, the business must be located in an Economically Disadvantaged Area in Minnesota. These areas include labor surplus areas, as designated by the federal government, and low income counties in Minnesota. Economically Disadvantaged small businesses must be certified as such by MMD in order to participate in the program. Certified Economically Disadvantaged small businesses may be eligible for up to 6% preference in selling their products or services to the state, and may be eligible for up to 4% preference on construction projects. Once certified, TG and ED vendors are added to the state's bid list, and are listed in the Directory of Certified TG/ED Vendors. To get a list of vendors for the commodity you are requesting, contact extension 8-3136. Businesses must be registered with the State to be considered for preference. Additional eligibility criteria for the above programs are contained in Minnesota Rules, Chapter 1230. You may obtain a copy by calling the MMD Help Line at 651-296-2600. Additional information about the program and state purchasing is available by calling the Materials Management Help Line at 651-296-2600 or by e-mail at [email protected]. Hearing impaired callers may reach them through the Minnesota Relay Service at 1-800-627-3529. Page 21 Helpful Hints & Reminders Attachments To expedite matching your attachments to the correct purchase order, please use the suggested format below to staple to your documents before sending them to pre-audit in Purchasing: DATE: TO: Purchasing Department Pre-Audit FROM: THIS ATTACHMENT BELONGS TO PO #________________ Central Receiving All merchandise received in Central Receiving will require a printed purchase order prior to the merchandise being released to departments. Merchandise received in Central Receiving without a purchase order number, will be held in Receiving until a purchase order is released or a memo is sent stating the merchandise will not be paid using university funds. You can fax your memo to extension 84139. Occasionally, shipments are picked up or delivered directly to departments. When this occurs, notify Receiving at extension 8-4713 as soon as possible so payments can be processed. Certificates of Insurance A certificate of insurance for liability and workers compensation is required whenever a vendor is on campus to repair, remodel, deliver, install, etc. Equipment Purchases Individual items over $10,000 are categorized equipment purchases (object code 4000.) Individual items under $10,000 are considered supply items (object code 3000.) Equipment and sensitive items will be recorded by Inventory. If you have any questions regarding inventory, contact extension 8-4002. Fax – Purchasing Quotes can be faxed to Purchasing at 8-4175. Be sure to reference the purchase order number on the document you are faxing. Invoice Attached There are some instances when invoices can be direct pays or “invoice attached.” This includes memberships and subscription renewals. For instance, when there is no purchasing card for the account being used. Invoice attached purchases do not go through the PCS or Receiving. Departments submit a Payment Request (1400 form) with the invoice attached. These are considered accounts payable and are simply disbursed. Whenever possible, it is in your best interest to process a purchase order to avoid illegitimate and/or unauthorized purchases which could become your personal obligation. Maintenance Agreements, Subscriptions All maintenance agreements and new subscriptions (if no purchasing card for the account) must be entered into the Purchase Control System. Although most of these purchases are addressed directly to the departments, most of the follow-up information, (addendums, renewal notices and data safety materials) are received by Business Services. This makes it much easier to locate and notify the departments. When entering a new subscription, be sure to include the “send to” address in the description of the purchase order as follows: Page 22 Send To: St. Cloud State University “Your Building Code and Room Number” 720 4th Avenue South St. Cloud, MN 56301-4498 Do not include a person’s name in the address. Indicate only the building code and room number. Be sure to indicate the purchase order number on all correspondence you will be sending to the Purchasing Department. For renewals of subscriptions see above--"Invoice Attached". Memo Screen Use the memo screen to make notes to yourself or to someone in Purchasing. Notes written in the memo will not print on the final purchase order. However, when duplicating purchase orders, be sure not to duplicate the memo as your notes most likely will not be relevant to the new purchase order. Number of Items on a PO Request Please limit the number of line item entries to twenty (20) per purchase order request. Too many items make it difficult for Receiving and Accounts Payable to track backorders and missing pieces. In many cases, an invoice must be held for payment until all items are received. Prepayment M.S. 16A.41, Subd. 1, prohibits the State from paying in advance. The State can only make prepayments on items such as subscriptions for newspapers, magazines and the Library of Congress. If the vendor requires prepayment, you must provide the prepayment terms along with the description of the items and amount from the vendor. Printed Purchase Orders After your purchase order request has been printed, Purchasing will send the original purchase order to the department and forward the receiving copy to Central Receiving. Be sure to make a copy for your files before you mail, fax or phone your order. Important: Do not call vendors with the purchase order number before receiving the printed purchase order. This is an unauthorized purchase and can cause duplicate shipments. Note: Always be sure to notify the Receiving Department at extension 8-4713 when you pick up an order or if something is delivered to you by someone other than the Receiving Department. After Receiving is notified, they will send the receiving copy to Purchasing. If this step does not take place, the invoice cannot be processed and may cause a late payment. Accounts Payable has no way of knowing the items have been received and are ready for payment unless this step is completed. Travel Employee registration and other travel related expenses should not be processed in PCS. Call 8-4005 for travel information and/or guidelines. Xerox/Canon/Sharp Copier Supplies When calling these vendors for copier supplies covered under a maintenance agreement, please be sure the vendor references the original purchase order number when sending these supplies. Central Receiving will need the purchase order number to identify the department to which the supplies belong. Page 23 Who to Call for Help or Questions Direct Pay - Invoice Attached 308-4000 Pre-Audit, special expense forms for catering, object code clarification 308-4000 Accounts Payable Hardware/Software Problems 308-5510 Help Desk PCS Help Desk 308-4187 “How to” or PCS training 308-4120 Security Access Purchase Orders 308-4120 Object code clarification, what to enter and/or where to enter it 308-3135 Accounts Payable Purchasing Cards (VISA) 308-4001 Charge card set up, security & training Purchasing Director 308-4788 Financed purchases, land rental/leases, “Lease to Own’ equipment agreements, purchases of $50,000 or more, sensitive items, extraordinary requests. State Contracts and Professional/Technical Contracts 308-3136 “State of Minnesota” Contracts and “U of M” Contracts, Consultant and Instructional Contracts and Targeted Vendors Vendor Numbers 308-6463 How to find vendor numbers, adding a new vendor, checking on the status of a requested vendor, vendor changes of address Commonly Used Forms Payment Request (PR1400) (pdf) Form 16A (SCSU019) (pdf) Quote Form (SCSU004) (doc) Vendor Request Form (pdf) and IRS Form W-9 (pdf) Request to Incur Special Expenses (doc) Request to Incur Special Expenses (pdf) Tax Exemption Certificate (pdf) – Links to MnSCU System Office web page. Page 24 MnSCU Object Codes MnSCU Object Code Description 10xx Rent (for equipment that is leased with option to buy, see class 40xx) 1010 Rent – Non-State Space (includes remodeling of leased space and parking when included in lease. Use 1850 for meeting rooms with additional services. Use 1070 for parking when not included in a lease; booth rental; and meeting rooms without services.) 1020 Rent – State-Owned Space (must be state-owned building) 1030 Equipment Rental (Use only for equipment without an operator. Use 18xx for equipment with an operator) 1070 Rent – Other (includes booth rental, meeting room rental without service, parking when not included in a lease) Use 1850 for meeting rooms w/additional services 11xx Advertising – Newspaper, Magazine, Radio, TV 1110 Advertising – Legal, Employment, Public Info, General 12xx Repairs to Equipment and Furniture (includes alterations, maintenance and parts and labor) 1210 Repairs to Equipment and Furniture (outside vendor) 1240 Repairs & Alterations to Buildings ( includes interior/exterior remodeling that does not increase space or value,( use 52xx)…upkeep only, normal wear & tear, ie. paint, carpet, drapes. Use 1010 for remodeling non-state-owned space) 1241 Service Center Charges – Telephone (includes changes to existing phone installations) used mainly in cost allocation 1260 Maintenance Contracts 1280 Other Repairs (includes road repairs, resurfacing, and fencing repairs. Use 5215 for new fencing, landscaping, and site preparation. Use 1810 for snow removal, mowing, and seeding.) 13xx Bonds and Insurance 1310 Bonds & Insurance (includes Official or Employee Surety, property and casualty insurance and premiums for worker’s comp reinsurance) 14xx Printing and Binding 1410 Printing – Non-State Shop (excludes letterhead and envelopes, see 3000) 1411 Service Center – Printing Services Cost Allocation 1412 Service Center - Copies Plus Cost Allocation 1420 Duplicating and Printing – State Shop 1450 Microfilming 1460 Other Printing (Binding) 15xx Consultant and Professional/Technical Services (Approved contract required) 1510 General Management & Fiscal Consultants – Non-State Agency (includes business, financial management, and food service/cafeteria management costs) 1511 General Management & Fiscal Consultants – State Agency (includes business, financial management, and food service/cafeteria management costs) 1512 Personnel Recruiting Services (includes head hunting and recruiting services) 1513 Advertising/Marketing Production(includes design for artwork, graphics, brochures and pamphlets, media production and related communications) NOTE: Does not include printing – see 14xx 1514 Writing Services – Manual, Grants, Etc (includes technical manuals, user manuals, grant writing, and preparation of publications) Page 25 1515 1516 1518 1519 1520 1521 1522 1523 1524 1525 1530 1531 1532 1533 1534 1535 1536 1537 1538 1539 1540 1541 1550 1551 1552 1555 Program Development & Evaluation – Non-State Agency (includes development and delivery of agency programs, evaluation services, studies, surveys and research) Program Development & Evaluation – State Agency ( includes development and delivery of agency programs, evaluation services, studies, surveys and research) Site Survey-Costs associated with hiring a surveyor and producing a site survey Geotechnical Services-Costs associated with hiring a geotechnical consultant and producing a soil report Medical and Dental Services (includes medical, dental, mental health, and public health services) Health Care/Nursing Service – State Agency(includes medical, dental, mental health, and public health services) Owner’s Representative – Basic Services Construction Inspections & Testing-Costs associated with hiring consultants to do quality control, plan constructability review, and code required testing and inspection Post Occupancy Evaluation-Costs associated with hiring a consultant to perform post occupancy evaluations, produce and issue reports Commissioning-Costs associated with the start up or a building including testing and adjusting HVAC, electrical, plumbing, and other systems to assure proper functioning and adherence to design criteria; also includes the training of building representatives in the use of building systems. Architect & Engineering Services – Non-State Agency (includes plans and specifications, interior design and landscape design) Architect & Engineering Services – State Agency (includes plans and specifications, interior design and landscape design) Admin Hearing Judges – Non-State Agency (contracted by Admin Hearings, other state agencies use 1533 to pay Admin Hearings) Admin Hearing Judges – State Agency Court Reporters & Transcribers Expert Witness Fees Legal Services – Gross Proceeds (use if legal fees are not identified separately from other amounts –1099 reporting issue, if separated, use 1550) Legal & Paralegal Services – Non-State Agency (includes mediation, arbitrators, guardian ad litum, magistrates, social services, legal and paralegal services not appointed or performed by the Office of the Attorney General) Law Enforcement & Security – Non-State Agency (includes investigation and surveillance) Law Enforcement & Security – State Agency (includes investigation and surveillance) Environmental, Agri, & Scientific Services(includes natural resource services, agricultural services, hazardous material, abatement services, geo/technical assessments, and related lab fees, research and surveys) Conference Planning (includes cost to plan and schedule conferences and other similar special events) Legal Services – Outside Attorney General Office (outside legal council appointed by Attorney General; legal services not performed by the Attorney General) NOTE: Use 1536 if legal fees are not identified separately from other amounts—1099 reporting issue. Legal Services – Attorney General Office (Includes all Attorney General expenses) See 1552 for intragovermental expenses other than the Attorney General Legal Services – State Agency (not Attorney General Office) Use 1551 for Attorney General fees MCE Collection Services – State Agency Page 26 1560 1561 1564 1565 1570 1571 1580 1581 1582 1583 1584 1585 1590 17xx 1710 1711 1712 1720 1725 1726 1730 1740 1745 1750 1755 18xx 1810 1820 1830 1840 1850 Educational & Instructional Services – Non-State Agency (includes classroom instruction of speakers and presentations, development/delivery of training classes, workshops, in-service, outreach, community development and facilitation. Note: if a state employee performs these services, contact Human Resources) Educational & Instructional Services – State Agency (includes development/delivery of training classes, workshops, in-service, outreach, community development and facilitation; if a state employee performs these services, contact Human Resources) MnSCU Program Management Fee-To pay fees assessed by the Office of the Chancellor for managing specific construction projects. CSU Construction Project Management –to pay fees assessed by the Office of the Chancellor for managing the Capital Improvement Program. Other Professional/Technical Services Other Consultant Services – State Agency Expense Reimbursement for Professional Services (Use 1970 for speakers and entertainers) Expense Reimbursement for Trainers/Speakers (Employee Development) Trainers/Speakers for Employee Development (not provided by a state agency) Architectural Fees-Reimbursables-Expenses incurred by the designer or architect/engineer that are reimbursable per the terms of the contract for design. Owner’s Representative-Reimbursables-Expenses incurred by the Owner’s Rep that are reimbursable per the terms of the contract. Expense Reimbursement CSU Construction Project Management Donated Services/Labor Computer and Systems Services Computer Production & Maintenance Service Center Charge – MIS Academic (Production and maintenance) Service Center Charge – MIS Administrative (production and maintenance) System Development (includes information technology development, modifications and planning; technical research, and risk assessment) Information Technology Maintenance and Support( includes maintenance, help desk, technical support, and web site maintenance) Information Technology Maint & Support – State Agency (includes maintenance, help desk, technical support, and web site maintenance) Software rental/license/subscription Software Purchase (under 30K per unit) Major Software Purchase (over 30K per unit) Software Maintenance On-line subscription/system access fee Purchased Services (Use 1030 when renting equipment without operator) Building Maintenance Services (janitorial, fire protection, window cleaning, snow removal, mowing and landscaping) Security Services Refuse Removal Environmental, Agri & Scientific Services-State Agency (includes natural resource services, agricultural services, hazardous material, abatement services, and related lab fees, research and surveys) Contracted Food Service (conference, meeting, and catering. Use 1070 for rental of conference and meeting rooms without services) Page 27 1870 1871 1875 19xx 1910 1970 1980 20xx 2010 2011 2020 2025 2030 2040 2041 2060 2090 23xx 2310 2320 2330 2340 2350 2360 2398 2399 24xx 2410 2420 2430 2440 2450 27xx 2710 2720 2730 28xx 2810 2818 2819 2820 Other Purchased Services (includes film processing, picture framing, companies that provide DJ services, background checks, interpretation services, officials, security, clinical experience workshops. Note: Individuals hired directly to provide interpretations, concession workers, etc…should be processed through HR/Payroll) Laundry and Dry Cleaning Construction Moving and Relocation Expense-All costs associated with moving into a completed project space. Public Speakers and Entertainers (open to the public. Classroom speakers, see 1560) Public Speakers & Entertainers Expense Reimbursement for Public Speakers Public Speakers & Entertainer State Tax Communications Postal, Mailing, & Shipping, (Fed Ex, UPS outbound) Service Center Charge – Postage (outbound) Network Services (Telephone)—telephone service, computer communications, satellite conferences, fax charges Wireless Communications (cell, pagers, etc) Long Distance Telephone (optional)—telephone service, computer communications, satellite conferences, fax charges Home Internet Access – Taxable FICA on Home Internet Access Freight & Delivery (in-bound) Other Communication Utility Service Electricity Water/Sewer Diesel Fuel Fuel Oil Natural Gas Gasoline Energy Loan Dept Payment Other Utility Services Relocation/Job Applicant Expense, Interest, Taxes Relocation Expense-transportation paid to vendor to move household goods and personal items to new residence Interest to Vendors – Late Payment Taxes, Assessments, Shared Revenue Interest on Trust Deposits Job Applicant Expense Student Activities Student Activities Student Travel (transportation, lodging, meals, registration. Use 2891 for admission fees) Statewide Student Association Fees Remitted Claims, Fees, Fines, Prizes, Memberships Claims (paid to claimant) includes reimbursement of medical and legal fees; and informants Court Ordered Settlements – 1099 (employee) Court Ordered Settlements – 1099 (attorney fees) Medical Fees to Providers (claims for medical services paid to vendors) Page 28 2830 2840 2850 2860 2870 2871 2880 2890 2891 2892 2893 2894 2898 30xx 3000 3001 3002 3003 3004 3005 3010 3011 31xx 32xx 3210 3211 3212 40xx 4000 4001 4004 4005 4100 4110 50xx 5000 5001 5010 5070 5080 5090 Other Services to Providers (claims for non-medical services paid to vendors, includes claims paid to attorneys) Bounties & Rewards Prizes & Awards Royalties & Copyright Fees Memberships- Departmental Memberships- IFO/MSUAASF Contract (Individual) Tuition & Registration Fee(Includes DOER classes, tuition for accredited courses Fines & Penalties Fees – Includes permit, license, filing, recording, notary, copyright, royalties, and admissions fees Fees – Collection Agency Credit Card Fees Bank Fees Sporting Event Guarantee Supplies & Materials Not for Resale Supplies & Materials Supplies & Materials-IFO/MSUAASF Contract Equipment Purchased as Supplies Donated Supply & Material Software Purchase Laboratory and Medical Supplies Service Center – Supplies Service Center – Central Stores Resale Library LIbrary Books Library Audio/Video Materials Library Subscriptions Capital Equipment Equipment Donated Equipment Equipment – Ancillary expense (1099) Expenses incurred, beyond the cost of the capital asset, required to place the capital asset into service Equipment – Ancillary expense (non 1099) Capital Lease – Principal Capital Lease - Interest Land & Interest in Land Land Purchase Land - Donated Perpetual Easements Interest on Land Expense Reimbursement to Property Owner (includes relocation, damages, condemnation cost, and permanent easement improvements) Other Land Acquisition Costs(appraisal fees, abstraction costs, and relocation costs paid to third parties, attorney fees) Page 29 52xx 5200 5201 5205 5210 5212 5213 5214 5215 5220 5265 5270 60xx 6000 61xx 6100 6180 6189 70xx 7010 7011 7012 7013 7014 7015 7020 7025 7030 7040 7041 7042 7043 7044 7050 7055 Buildings New Building Construction Building – Donated (existing building) Purchase of Existing Building Improvements/Betterments to Buildings (expenditures of $5,000 or more that become permanent parts of an existing building and increases the usefulness of the building or lengthens the building’s life) Additions/Extensions to Buildings (must increase square footage) Public Art Allowance-That portion of the project appropriation or allotment set aside for art. Demolition Cost to a Building Land Improvements(includes parking lots, paving, culverts, lighting systems, water, electric, dams, trails, forest roads, drains, sidewalks, sewers, new fencing, trees, landscaping, and site preparation) Interest Payments on Purchases of Buildings Data/Telecommunication/Equipment & Installation-Purchase and installation of data, telecommunication equipment. Security Equipment/Wiring/Installation-Purchase and installation of security equipment including all necessary wiring. Debt Debt - Principal Interest on Debts Interest on Debts Other Interest Funds Applied Overawards Aid Aid to Cities & Towns Aid to Counties (includes contributions in lieu of taxes) Aid to School Districts (includes special school districts) Aid to Higher Ed Institutions(includes U of M, state universities, community colleges, technical colleges, etc) Aid to Other Govt Units (includes area planning centers, floodwater districts, armories, housing redevelopment areas, metropolitan boards, public libraries, region computer centers, and rural development corporations) Tuition Mitigation Out Inter-agency Grants (state agencies- non MnSCU) State Agency Reimb-Expense Refunds Only-Not Payments (this will create a negative expenditure) Aid to Non-Govt Organizations (includes Minnesota Indian bands & tribes) Financial Aid & Scholarships(includes tuition, scholarships, books, educational supplies) Stipends Tuition Remission for Grad Assistants(includes tuition, scholarships, books, educations supplies) Tuition Waiver Fee Waiver Other Aid to Clients(payments to individuals-- includes transportation, housing, emergency subsistence, relocation, counseling, personal expenses, child care, and out-of-area job search Other Services for Clients (paid to vendors—includes educations, supplies, equipment, and insurance) Page 30