This establishes formal guidelines for securing group or individual local lodging to be paid from State funding. This procedure serves to expedite payments to lodging vendors, while designating the name(s) of those authorized to charge lodging to the University, as well as certify tax-exempt status.
NOTE: Attendees are expected to personally pay for all telephone calls, cable-movie rentals, and all other incidental charges at the time of check out.
Procedure
- The campus departmental representative making the lodging arrangements for the attendee(s) determines the date(s) for which lodging is required and the lodging establishment to be used.
- The departmental representative then contacts the hotel/motel and makes the reservations for the conference attendee(s) for the date(s) needed, requesting the New York State Government rate (lodging rates cannot exceed the prevailing lodging per diem for Cortland County). Advise the hotel/motel that this charge is to be tax-exempt and verify campus will be billed for the charges advising them to send the invoice to accounts.payable@cortland.edu referencing the department reserving the room.
- The campus individual then promptly completes a Purchase Requisition for the lodging charge, stating the name(s) of the attendee(s), the State rate quoted by the hotel/motel and the number of days of stay for each attendee.
- The department then completes a PO in Red Dragon Depot for the lodging charge total stating the name of the attendee(s) and the number of days of stay. If the attendee(s) will be eating a meal at the hotel/motel, an amount for that meal (not to exceed the prevailing meal per diem for Cortland County and MUST NOT include charges for alcoholic beverages) may be listed on the PO and added to the lodging amount to arrive at the total.
- The completed PO is electronically forwarded through Red Dragon Depot for appropriate approvals.
The various contracts for the purchase of services, including design/construction, executed and in force under the statutory regulations of New York State include those funded from State Purpose, DIFR, IFR, and other certain special funding. Those contracts funded independently such as by ASC, Alumni Association, are not governed by New York State regulations and are not covered by these guidelines (except for construction contracts). However, if any contract is funded partially from New York State funds or if a contract is expected to convert to New York State funding in some future year, full compliance with New York State regulations and these guidelines is required from the outset.
The following serves to clarify campus authority, responsibility and accountability in regard to contract administration, specifying the roles of each level of campus management (because construction contracts require a special expertise and extensive preparation, the Office of Facilities assumes many of the responsibilities of the Business Office-Purchasing and the operating departmental manager stated below).
All levels of campus operating management, beginning with the President as the Chief Administrative Officer, through the Division of Finance and Management encompassing the Business Office and its Purchasing and Accounts Payable Office, and to the operating unit (department), share in the responsibility for full compliance with statutes and regulations. This shared responsibility is facilitated by the delegation of specific authority levels to ensure adequate review, control and the avoidance of violations. All levels are accountable for compliance within their delegated authority.
Delegated the authority to ensure overall compliance, the Business Office-Purchasing coordinates and oversees the contract development and execution process, including acting as the sole office to obligate funds and finalize any kind of commitment by the University.
- The sole authority for obligating (committing) the University to a vendor, documented in the form of a purchase order, AC-340 encumbrance, signed contract, letter of agreement, or letter of intent.
- Processing and documentation flow coordination and preaudit to ensure full compliance with New York State statutes and regulations.
- Review of draft contracts to determine proper incorporation of standard, usual, and required language, clauses, exhibits, and appendices to ensure, to the extent possible, adequate protection to the institution. Further, to determine whether external technical or legal review is advisable.
- Provide assistance to the operating manager in the development of contract specifications, limited by available time and specific technical expertise.
The operating (departmental) manager having jurisdiction over the area or operation which the contract serves has the following responsibilities and authority:
- Development of specifications: The substance of the contract language which sets forth the specific services to be provided, the performance objectives, the reporting, documentation, procedural steps required of the provider (vendor), as well as the supportive responsibilities of the University, are to be developed in final draft form by the operating manager. It is the operating manager who has the best familiarity with technical and operational requirements and is, therefore, the person most capable.
The operating manager is responsible for calling any pre-bid meetings and site inspections, evaluating RFP responses and making recommendations for award to the successful vendor; this may involve utilization of a project evaluation team.
In the course of contract development or modification, it is appropriate to make direct consultative contacts with experts or potential providers so long as no possibility or implication of conflict of interest exists (Purchasing can give advice in this regard). Under no circumstances, however, may any kind of explicit or implicit commitment be made to any potential provider. Consultants or designers retained with or without pay should not be permitted to bid on the commodity or service unless there is a compelling reason. However, if all viable vendors are invited to participate on a co-equal basis in the development of a design or specifications, all may bid.
The primary and fundamental responsibility for contract development/modification rests with the operating manager.
- Monitoring contract expiration/renewal dates: The operating manager is expected to monitor dates and initiate renewal or other action in a timely manner sufficient to maintain continuity and/or avoid service interruptions (discussion with Purchasing in this regard is appropriate).
- Managing the contract: It is the responsibility of the operating manager to ensure compliance with the contract by both the provider and the University. This would include inspections, certifications, monitoring, documentation, and any other actions necessary to comply and to protect the interests of the University. Identification of unsatisfactory performance by the provider is within the responsibility of the operating manager.
In summary, direct contract administration rests with the manager, with legal and administrative coordination resting with the Business Office-Purchasing.
Contract Approval and Signature Authority Policy
To conduct the University's functions of teaching, research, and service, it is sometimes necessary to enter into legally binding agreements (“contracts”) with other entities. The University will only be bound by written contracts to which the University or a subunit is formally a party, that have been reviewed and approved in accordance with this policy, and that have been executed by University officials who have specific contract signature authority. No officer or member of the University community has the authority to sign contracts on behalf of the University, or any program, department or division of the University, in the absence of a formal written delegation of authority. This policy describes the University’s contract review and approval requirements and the protocols for the delegation of signature authority. This policy applies to all members of the University community. This policy does not pertain to Employment Contracts, Appointments and SUNY Research Foundation Contracts.
A. Contract means any agreement between two or more persons that creates a legally binding obligation to do or not to do a particular thing. A contract may or may not involve the payment of money. This policy applies to any document that obligates the University, irrespective of the terminology used to describe that document. Types of documents that constitute contracts include, but are not limited to: academic agreements; affiliation agreements; assignments; business agreements; material transfer agreements (MTA’s); memoranda of understanding (MOU’s); memoranda of agreement; non-disclosure agreements (NDA’s); promises to pay; promissory notes; purchase orders; riders or addenda to existing contracts; separation agreements; settlement agreements; and waivers.
B. Business Contract includes the following types of contracts: deeds; leases; construction agreements; agreements with software consultants, for computer hardware, or for telecommunication services; contracts with vendors for purchase of materials, equipment or services; procurement agreements; financing agreements; independent contractor/consultant agreements (except when part of a research contract); and agreements with temporary employment agencies.
C. Academic Affiliation Agreements: For memoranda of understanding or agreements regarding academic operations (for example, affiliation agreements between University schools and external agencies such as hospitals, social agencies, or school systems; or collaboration agreements with other universities) approval is required by the President, Vice President of Finance and Management or their designees. Such agreements may also require review by the SUNY Office of General Counsel. If an Academic Affiliation Agreement involves a commitment of University funds, it also is a Business Agreement and follows the applicable process for such agreements.
D. Contract Initiator means the individual who proposes to enter into contract negotiations with a non-University individual or entity. Contract Initiators must be University employees who have undergone procurement training, and may not be students or student employees.
E. Renewals, extensions, amendments and modifications to previously approved contracts should be approved and signed in the same manner as the original contracts.
Except where a specific, written exception applies, the following requirements apply to all contracts. If, after reviewing this policy, you are uncertain about the review and approval process or requirements for a particular type of contract, contact the Purchasing Office.
A. Preliminary Review by Contract Initiator
Contract Initiators are responsible for conducting a preliminary review of proposed contracts. Prior to submitting a contract for required review and approval as described below, the Contract Initiator must read the entire contract to confirm that the contract:
- is clear and consistent;
- is complete and accurately reflects the intentions of the parties;
- is consistent with University mission and is in the best interests of the University;
- does not include a provision for assumption of sales tax by the University;
- does not include a provision for automatic renewal of the contract; and
- does not contain requirements with which the University cannot comply.
When a contract also involves a purchase, the Contract Initiator must follow the requirements of the University’s Procurement Policy and/or Procurement Card Policy.
B. Administrative Review and Approval
Following preliminary review by the Contract Initiator, all contracts must undergo further administrative review and approval as set forth below:
- Contracts must be sent to the Purchasing Office for review.
- SUNY’s Office of General Counsel may be asked to review contracts
- In addition to the University’s approval, contracts may require approval of specific SUNY officers and the Offices of the NY State Attorney General and Comptroller.
C. Contract Signature Authority
Only the President is authorized to enter into contracts, deeds, or leases between the University and another party. The President, however, is permitted to delegate this responsibility to appropriate University officials as follows:
Vice President for Finance and Management has the authority to sign contracts, deeds or leases arising out of the normal business operations of the University.
Additional, limited delegations of contract signature authority may be made by the President and the Vice President of Finance and Management. All delegations of signature authority must be in writing and entered onto the New York State Office of the State Comptroller Bureau of Contracts Authorized Signature Form. Copies of all such written delegations must be provided to the Office of the State Comptroller.
D. Retention of Signed Contracts
A copy of signed business contracts, MOUs, and affiliation contracts are to be maintained by the Purchasing and Accounts Payable Office.
No Officer or member of the University community may sign or otherwise execute a contract that binds the University or its subunits unless he/she has been delegated signature authority that has been documented in writing and is on file as set forth in this policy. Contracts signed by Officers or employees without documented signature authority may be deemed void. Individuals in such circumstances may be personally liable for the obligations assumed under such contracts per the University's employee indemnification policy, and are subject to disciplinary action up to and including termination of employment.
Managers/supervisors are responsible for communicating this policy to all staff members and for enforcing its requirements.
The special University-wide lump-sum distribution of Academic Equipment Replacement funding has specific and defined restrictions governing its use. The following guidelines apply:
- Academic Equipment Replacement Funds may be expended for the purchase, upgrading, or major repair of equipment for teaching departments or for equipment assigned to Educational Communications Centers (Cortland's Learning Resources Center) which is used in direct support of instruction. Major repair or upgrading of instructional equipment must serve to extend the useful life of the equipment.
- Repair of equipment may not be interpreted to authorize the purchase of service contracts, authority to establish or maintain service shops to be supported from Academic Equipment Replacement Funds, or to include routine maintenance or minor repairs of equipment.
- The costs of upgrades which improve or expand the original function of the equipment will be added to the original cost of the equipment for inventory asset purposes.
- Computer software may only be purchased as a part of an initial acquisition of computer hardware and only if it is an integral part of the system or is available only from the hardware manufacturer. The cost of the software must be included in the cost of the computer hardware for inventory asset purposes.
- Office-type equipment (desks, chairs, filing cabinets, copiers, typewriters, computers, etc.) are normally used for administrative support and are, therefore, ineligible for AER funding. Only if primarily used in direct support of the teaching process may such equipment be purchased from AER funds.
- An explanatory notation describing the intended use of any proposed purchase, which is not obviously in direct support of teaching, is required to document adherence to guidelines.
- Installation Costs: The associated costs of installation of purchased equipment is applicable to AER funding under the following conditions:
- The installation must be executed as part of the single order and price, and through the vendor supplying the equipment.
- An installation at a time later than the time of delivery constitutes a separate transaction and is a fundamental violation of AER guidelines.
- If the installation involves any kind of construction or alteration to the facility, there must be adherence to all construction regulations, and such costs are not an appropriate use of AER funds.
- A separate installation, from other funds, differentiates that cost from the dollar value of the equipment inventory upon which future AER funding is based.
- For the purposes of this program, the following definitions will apply:
- Equipment - A unit of Group III moveable equipment which is non-consumable, has a unit acquisition cost of $500 or more, and a useful life of at least two years. For audio-visual and office business machinery and equipment, the unit acquisition cost is set at $250 with a useful life of at least two years.
- Group I: Structural (built-in) equipment - a part of the building; not AER eligible.
- Group II: Permanent, non-moveable equipment; not AER eligible.
- Group III: Moveable equipment over $250.00; AER eligible over $500.00, (ECC/LRC) eligible over $250.00.
- Teaching Department - A department whose chart of accounts code contains zeros in the third and fourth positions (i.e., XX00XX, designating an I & DR account).
- Provide recipient & purpose of purchase.
- Must be beneficial for individual to be easily identified as serving on behalf of the campus with a definitive purpose and considered reasonable for cost and frequency of purchases.
- Must use a PO to purchase and be submitted prior to purchase with justification. Limit of $50/employee/year.
Reimbursement or Payment for Food/Beverages - NYS Requirements
Under certain circumstances, cost of food and beverages can be considered an appropriate NYS expenditure. This policy is intended to clarify those circumstances and limitations.
Please refer to the SUNY Cortland Food Policy Utilizing State Funds for the most recent updates.
The New York State Finance Law was amended in 1992 to reflect the MacBride Fair Employment Principles. Agencies must ensure that any provider of goods of services, or any entity holding ten percent or more ownership of that provider, must: (a) have no business operations in Northern Ireland, or (b) will abide by the MacBride Fair Employment Principles relating to non-discrimination in hiring and employment.
When contracting for services, careful consideration must be given to the issue of outsourcing (contracting for work which can be performed by current staff), non-employee status (as defined by IRS), and the Public Works Law (see below). To ensure compliances, it is vital that commitments for contracted services be made only by the Purchasing and Accounts Payable Office and not by an individual faculty or staff member.
New York State requires that prevailing wage rates (as published by the NYS Department of Labor) be paid for any work performed of a "building trades" nature, unless that work is performed by a graded civil service position titled employee. Building trades cover a wide variety of skilled and semi-skilled specialties, including but not limited to, communications worker, carpenter, welder, sheet metal worker, machinist, painter, glazier, mason-bricklayer, plumber, etc. While virtually all construction project work fall under "trades," even work which does not alter or add to the physical structures, such as painting, must comply. It is for this reason that all contracted service must be carefully reviewed, given pre-approval, and executed via purchase order or contract issuance by the Purchasing and Accounts Payable Office with no prior commitment made to the vendor.
The IRS sternly enforces monetary penalties for inappropriately treating a person as an independent contractor (non-employee) rather than as an employee. It is the IRS' intent to maximize immediate tax withholding (including Social Security) by requiring treatment as an employee unless clearly proven otherwise through its "twenty-question" test with the burden of proof on the employer.
New York State requires special treatment of construction-type contracts for services regardless of dollar value or funding source. Any work which in any way alters or adds to the physical structure of the campus must be defined as a construction contract and be fully developed by the Office of Facilities. The development would include, as applicable, approved specifications and drawings, prevailing wage rates, environmental assessments, external agency approvals, code compliance, adherence to Procurement Opportunities requirements, competitive bidding. The contracts are reviewed and executed by Purchasing. Unless there is a compelling reason, otherwise, design consultants may not bid on construction projects which they designed. As becomes evident, construction projects require thorough and advance planning and extra time and effort to develop and administer.
There is a limited opportunity for multi-year installment purchases within the State of New York. The duration of an agreement cannot exceed the useful life (five year minimum). Only purchases with an outright purchase price exceeding $250,000 may be acquired in this manner on the rationale that for purchases under $250,000 the additional cost of financing is not justified. The cost threshold is arguably too high for small agencies such as SUNY Cortland, but the policy is firm. Additionally, all multi-year installment purchases must follow C.O.P.S. (Certificates of Participation) procedures requiring advance appropriation requests (generally a request for C.O.P.S. multi-year purchasing must be submitted in October for the next fiscal year). The State has given the Office of General Services (OGS) sole authority for obtaining C.O.P.S. financing.
Leasing is generally discouraged by the State of New York as not cost effective unless leasing is the only option offered by the vendor. All proposals for leases must be presented for review and approval to the Attorney General (AG), Office of the State Comptroller (OSC), and Office of General Services (OGS). While leasing may be considered a viable alternative to outright purchasing for short term needs, strong arguments must be presented to persuade the external approving agencies. In cases where technological advances may render the acquisition obsolete in a period shorter than its useful life, leasing may be considered valid.
In cases of short-term need, renting may be permissible if clearly cost-effective. Because rentals are carefully scrutinized by OSC at the time of payment processing, it is essential that the Purchasing and Accounts Payable Office be contacted for advice and coordination at the early planning stages and that no unauthorized vendor commitments be made.
The SUNY Research Foundation (RF), established to administer externally funded grants, is a legally, separate corporate entity in the State of New York. As such, the regulations and procedures of the State and SUNY do not apply. The SUNY Research Foundation's policies and procedures do reflect sponsor mandates (federal agencies, etc.) and parallel SUNY to the extent feasible. Purchases against RF grants are processed independently from State Purchasing, following RF procedures and using RF forms.
There are cases in which funding for a single purchase may be shared by both State and RF resources. In such a circumstance, both sets of procedures must apply with the stricter standards (usually State) prevailing. It is vital therefore that good planning and coordination occur to successfully process split-funded purchases.
There are, on rare occasions, situations requiring action to protect persons or property. An emergency is defined as that which presents a clear and immediate danger to persons or the physical environment. In these situations normal procedures and requirements may be abbreviated or suspended so long as full justification and documentation are developed as soon as practicable. In cases when the Purchasing and Accounts Payable Office is unavailable for authorization and coordination, usually outside normal office hours, the Director of Physical Plant, the Director of Public Safety and the Director of Facilities may authorize emergency purchases of goods or services. Full written justification must be provided to support approvals, as applicable, by external agencies. In situations involving physical structures, a presidential certification is necessary to justify suspension of standing purchasing regulations and requirements.
The Occupational Safety and Health Administration (OSHA) requires employers to maintain Material Safety Data Sheets (MSDS's) for all chemical products which contain potentially hazardous components.
The MSDS's, which contain important health and safety and emergency information, must be made readily available to employees.
MSDS's are required for all chemical products which contain potentially hazardous components.
- Examples of products for which MSDS's are required include:
- laboratory chemicals
- art supplies
- cleaning materials
- paints and varnishes
- degreasers
- lubricants
- welding supplies
- pesticides
- adhesives
If an MSDS is requested for a product which is not hazardous under the OSHA regulations, the vendor must state that the product is exempt when declining the MSDS request. The requesting department must requesting MSDS's from vendors at the time of purchase, and forwarding them (or having the vendor send them directly) to the Environmental Health & Safety. Environmental Health & Safety Office will review the MSDS's, retain a copy in a master file, and forward the MSDS to appropriate campus personnel.
SUNY Cortland maintains an inventory of all State and Research Foundation-owned equipment through a University automated system. It is the responsibility of the University to record all additions, deletions, and changes in a timely and accurate manner and this responsibility is delegated to the Property Control Manager within the Business Office. The program requires, however, the ongoing cooperative efforts of Business Office departments for document processing and individual University departments for physical inventory verifications.
See Property Control Office for more information.
The ability to purchase gift cards will be reviewed on a case-by-case basis upon submission of the CAS Gift Card/Certificate Request Form.
The maximum quantity allowed is fifteen cards per program (cumulative of any combination of increments). The maximum dollar amount per card is $50, with one card up to $100 as the grand prize. The maximum dollar amount per program is $800. The recipient of the gift cards must be students and a prize receipt form must be completed by all recipients.
The form must be submitted a minimum of 45 days prior to the event. The approved form must be submitted with the purchase documentation.
The University is tax exempt - Tax Exemption Certificate.
SUNY Cortland Tax Exempt #: 14740026K
SUNY Cortland Federal ID #: 146013200