Purchasing Guidelines

• Introduction
• Purchasing Sequence
• Purchase of Commodities and Services

1. Preferred Sources (Dept. of Correction, Industries for the Disabled)
2. N.Y.S. Contracts
3. Open Market
4. Specification Preparation
5. Open Market Purchases--Competition Price Ranges

• Minority/Women Business Enterprise (M/WBE)
• MacBride Principles
• Procurement Opportunities Legislation
• Contracting for Services
• Public Works Law
• Independent Contractor vs. Employee
• Construction Contracts
• Contract Administration
• Multi-year Installment Purchases
• Leasing
• Renting
• Research Foundation Purchases
• Emergency Purchases
• Hazardous Materials Data Worksheets
• Property Control System (Equipment Inventory)
• Academic Equipment Replacement
• Gift Certificates
• Food-Type Payments
• Lodging Charges for Groups or Individuals

Return to Business Office Home Page or Purchasing Home Page

The purchase of goods and services from funds administered through the State of New York, including State Operations, DIFR, IFR, and Current Restricted Fund, are subject to the New York State Finance Law, State Agency Regulations, Executive Branch Directives, and State University Policy, often resulting in a complex process. Flexibility Legislation extended real benefits to SUNY in terms of campus discretion but did little to ease complexities and deliberately placed a far greater responsibility and accountability at the campus level.

It is for these reasons standing College Policy requires that only authorized College representatives may make commitments for the purchase, lease, or rental of goods or services. Authorized representatives are defined as those Business Office employees specifically designated by the President and Vice President for Finance & Management and having signatures on file with the State of New York. Limited purpose authorizations may at times be further delegated as circumstances warrant.

Therefore, it is necessary to receive prior approval from the Purchasing Department for any planned purchase of goods or services, including contractual obligations. The incurring of any liability without prior approval is unauthorized and becomes a personal liability. Only in rare cases of true emergency affecting the immediate health and safety of persons or property would an unauthorized action be justified and then only if Purchasing could not be reached. Standing Procedures for Physical Plant and Public Safety address emergency situations.

Recognizing its responsibility to provide an efficient and responsive purchasing service to the College, the Purchasing Department accepts as its purpose the prompt and effective purchasing of goods and services in support of and in the best interest and protection of the College, gaining the highest possible value for funds expended in full compliance with laws and regulations.

The key to effective purchasing is careful planning. While it is true that on occasion the unanticipated may occur, there is no substitute for thorough planning and the Business Office is committed to this principle and to full assistance in every way.

While a working knowledge of the following guidelines is extremely useful, it is very easy to comply. Simply process a purchase requisition through the organizational structure to Purchasing and allow the commitment of funds to occur through the orderly issuance of a College Purchase Order. While nothing can replace good planning, and often a crisis results merely from the lack of it, the unanticipated will at times occur. In those circumstances Purchasing may, for expediency, give a verbal authorization and issue a purchase order number in advance of receipt of the purchase requisition and purchase order issuance; however, the rule of authorization is maintained.

In all cases a call to Purchasing (ext. 2305) will clarify the proper action and gain the guidance and assistance needed.

Go to Table of Contents or go toBusiness Office Home Page

The following describes the chronological flow of documents, their review, and transactions of the purchasing process.

1. Informal exploration of the commodity or service at the originating departmental level which may include vendor contact regarding specifications, prices, delivery, warranty, set-up, utilities, service, and competitive prices for equivalents. There is to be no commitment to a vendor by the originating department. The only commitment of funds, that is, the incurring of a liability, is to be by Purchasing; please refer to No. 3, below. Unauthorized commitments are considered to have incurred a personal liability by the individual responsible. Departments are encouraged to contact Purchasing (ext. 2305) at this preliminary stage for advice and recommendations.
2. The originating department completes a College purchase requisition with full vendor information, description, terms, pricing (as applicable), coding, and signature approvals, attaching any informal vendor quote information, detailed specifications if necessary (especially for large or complex commodities), and forwards to Purchasing through its organizational structure, retaining the departmental file copy.

   
   If a service is to be purchased, there may be need for a formal contract with performance specifications. If the service involves any kind of construction or alteration to the Physical Plant, including consulting services, the campus Facilities Office becomes involved and a complex contractual process is required. External approvals may be necessary prior to any commitment to a provider of services.

3. Purchasing, upon receipt, logs in the purchase requisition and performs a review and audit against all State, SUNY, and College regulations policies and procedures, including but not limited to determinations on competitive pricing, M/WBE, procurement opportunities legislation, N.Y.S. contracts, and preferred sources. This review and audit stage may involve discussions with the originating department to ensure fulfillment of needs and may request specification development by the originating department.
4. The purchase order is generated through the on-line purchasing module of the SUNY Accounting system, automatically posting the encumbrance against the account charged. In some cases external approvals may be necessary prior to issuance of the purchase order to the vendor. It is this purchase order issuance which establishes the only authorized and binding commitment to the vendor; any other vendor contact is considered informal and non-binding to the College. Vendors of long-standing are fully aware of this policy. A copy of the purchase requisition with the assigned purchase order number written in the upper right-hand corner is returned to the originating department for reference, reconciliation with Accounting reports, and file.
5. As noted in some detail in the following section, purchasing may make a telephone commitment to a vendor by assignment of a purchase order number. Such a verbal commitment recognizes the sole authority of Purchasing to commit funds by virtue of the purchase order number assignment. A hard-copy purchase order immediately follows.
6. Goods are usually received at the Central Receiving facility located on West Road. Central Receiving inspects goods for visible damage and immediately forwards to the originating department for full inspection. Prompt signature and date certification of satisfactory condition on the Purchase Order receiving copy (forwarded to Accounts Payable) is essential for timely vendor payment as required under prompt payment legislation. Partial shipments should be paid promptly rather than waiting for order completion. Purchasing should be contacted for advice and instructions in cases of discovered damage or other unusual circumstances; Purchasing must coordinate vendor contact.

A.  Preferred Sources:

The State of New York has extended to certain agencies special access privileges to State purchasing activity. These preferred agencies include:

B.   N.Y.S. Contracts

The Office of General Services is the central purchasing agency for New York State. Its authority is broad and its services varied. Its bureau of standards and purchase develop product specifications and analyze product performance; its engineering units advise on physical facilities, computerization, telecommuni-cations, etc. OGS also negotiates regional and state-wide term commodity contracts with vendors through a formal competitive process for a variety of consumable supplies and equipment. State agencies are required to purchase from these contracts (except that preferred sources take precedence). SUNY through its flexibility may utilize term contracts or purchase the equivalent from the open market if lower prices can be obtained.

Besides the usual price advantage gained through the power of volume purchasing and formal competition that N.Y.S. term contracts offer, competitive bidding and procurement opportunities requirements can be avoided at the campus level, saving a great deal of time and effort.

C.  Open Market Purchases

Open market purchases are defined as those which are not available from Preferred Sources or N.Y.S. Term Contracts. If the campus wishes to purchase a particular service or commodity from the open market which is available from a Preferred Source or N.Y.S. Term Contract, the campus must compile defensible documentation justifying why the Preferred Source or Contract was not selected. Requirements set forth below (E.) must be strictly followed.

D.  Specification Preparation

Every instance of smart buying involves utilization of specifications. The process is informal for simple purchases, but written specifications, including such information as dimensions, materials, capacities, performance, warranties, need to be established in order to accurately and objectively compare competing products and to ensure desired product acquisition. Best value does not necessarily mean only lowest price, and thorough comparative product analysis against established specifications ensures the correct purchasing decision. A selection not carrying the lowest cost must be fully justified by reference to its specifications.

Solicitation of competitive quotes or bids from vendors is possible only by supplying common specifications which are sufficiently generic to avoid exclusionary consequences, whether inadvertent or deliberate.

Purchasing staff, having the responsibility for coordinating the procurement of a wide variety of products and services, cannot have full expertise across the full purchasing spectrum and must, at times, seek the assistance of initiating departmental staff or others in specification development. Especially in the procurement of highly technical or complex materials, equipment, or services, the responsibility for specification development must fall to the initiating department with Purchasing maintaining its role of coordination and oversight to ensure sufficient detail and avoidance of exclusionary language. External expertise for specification development may also be sought, whether from OGS, SUNY, other colleges, or the private sector, all toward the goal of prudent and proper purchasing.

E. Open Market Purchases--Competition Price Ranges

The requirements for seeking competition set by the State of New York applies to all State Agencies and become stricter as dollar value increases. SUNY enjoys a greater level of discretion, that is, more relaxed requirements, under flexibility. These requirements apply to open market purchases and to purchases which, while available from Preferred Sources or N.Y.S. Term Contracts, are unacceptable to the campus. Effective in FY 1993, the following dollar limits apply:
 

Go to Table of Contents or go to Business Office Home Page

By Executive Order, all New York State Agencies are required to take affirmative steps to utilize minority and women businesses for agency purchases. The intent is to give those targeted businesses an opportunity to benefit from the massive purchasing activity of the State, on the assumption that those targeted businesses have been historically excluded from participation and often as developing small businesses have not had an equal chance to compete. The College is given M/WBE goals expressed as percentages of total purchasing volume and is instructed to take special outreach measures and in some cases extend competitive price advantages to M/WBE's.

While attainment of goals is expected by the University, Cortland College continues its program on a voluntary basis, recommending M/WBE utilization where feasible and in the interest of the institution, attempting to strike a balance between the principle of best value vs. affirmative opportunity.

Go to Table of Contents or go to Business Office Home Page

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:

- have no business operations in Northern Ireland, or

- will abide by the MacBride Fair Employment Principles

relating to non-discrimination in hiring and employment.

Go to Table of Contents or go to Business Office Home Page

In 1990 legislation was enacted to ensure that all vendors in the State had access to the purchasing activity of state agencies. Designated as Procurement Opportunities, the program is particularly geared toward vendors identified as traditionally excluded from competing for State business.

The process requires that each agency (i.e., SUNY Cortland) plan ahead sufficiently to anticipate all over- $10,000 purchasing activity by category and advertise in the Contract Reporter, a tabloid published for this particular purpose. For purchases over $20,000 more specific details of the actual planned purchase must be published.

Procurement Opportunities legislation, in achieving its purpose, places a greater requirement for planning and may lengthen the purchasing cycle timeframe.

The College Purchasing Department is responsible for ensuring compliance.

Go to Table of Contents or go to Business Office Home Page

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 Purchasing and not by an individual faculty or staff member.

Go to Table of Contents or go to Business Office Home Page

New York State requires that prevailing wage rates (as published by the N.Y.S. 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, sheetmetal 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 Purchasing with no prior commitment made to the vendor.

Go to Table of Contents or go to Business Office Home Page

The IRS sternly enforces monetary penalties for inappropriately treating a person as an independent contractor (non-employee) rather than as an employee.  It is 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.

Go to Table of Contents or go to Business Office Home Page

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.

Go to Table of Contents or go to Business Office Home Page

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).

General Responsibility: 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 Department, 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.

Business Office-Purchasing: 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 College.

Specifically, the Business Office-Purchasing has as its responsibility:

1. The sole authority for obligating (committing) the College to a vendor, documented in the form of a purchase order, AC-340 encumbrance, signed contract, letter of agreement, or letter of intent.
2. Processing and documentation flow coordination and preaudit to ensure full compliance with New York State statutes and regulations.
3. 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.
4. 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:

1. 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 College, 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.

2. 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).

3. Managing the contract: It is the responsibility of the operating manager to ensure compliance with the contract by both the provider and the College. This would include inspections, certifications, monitoring, documentation, and any other actions necessary to comply and to protect the interests of the College. 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.

Go to Table of Contents or go to Business Office Home Page

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 $250,000.00 may be acquired in this manner on the rationale that for purchases under $250,000.00 the additional cost of financing is not justified. The cost threshold is arguably too high for small agencies such as Cortland College but the policy is firm. Additionally, all multi-year installment purchases must follow COPS (Certificates of Participation) procedures requiring advance appropriation requests (generally a request for COPS 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 COPS financing.

Go to Table of Contents or go to Business Office Home Page

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, OSC (Office of the State Comptroller), and OGS (Office of General Services).

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.

Go to Table of Contents or go to Business Office Home Page

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 Purchasing be contacted for advice and coordination at the early planning stages and that no unauthorized vendor commitments be made.

Motor vehicles may be rented under certain circumstances and strict conditions, based upon authorization from Purchasing. The rental of a vehicle while in travel status may occur at a traveler's discretion so long as the rental is justifiable and the rental duration does not exceed ten consecutive days. In travel status, the liability is incurred by the traveler with subsequent cost reimbursement sought; in this case it is the traveler, not the College, incurring the liability.

Go to Table of Contents or go to Business Office Home Page

The SUNY Research Foundation, 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 R. F. grants are processed independently from State Purchasing, following R. F. procedures and using R. F. forms.

There are cases in which funding for a single purchase may be shared by both State and R. F. 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.

Go to Table of Contents or go to Business Office Home Page

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 Business Office-Purchasing 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.

Go to Table of Contents or go to Business Office Home Page

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, and 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.)

Purchasing participates by requesting MSDS's from vendors at the time of purchase, and forwarding them (or having the vendor send them directly) to the campus department of Environmental Health & Safety. Environmental Health & Safety will review the MSDS's, retain a copy in a master file, and forward the MSDS to appropriate campus personnel.

Go to Table of Contents or go to Business Office Home Page

Cortland College maintains an inventory of all State and Research Foundation owned equipment through a University automated system. It is the responsibility of the College to record all additions, deletions, and changes in a timely and accurate manner and this responsibility is delegated to the Property Control Officer within the Business Office. The program requires, however, the ongoing cooperative efforts of Business Office departments for document processing and individual college departments for physical inventory verifications.

Go to Property Control Office Home Page or go to Table of Contents or go to Business Office Home Page

The special University-wide lump-sum distribution of Academic Equipment Replacement funding has specific and defined restrictions governing its use. The following guidelines apply:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. Installation Costs: The associated costs of installation of purchased equipment is applicable to AER funding under the following conditions:

1. The installation must be executed as part of the single order and price, and through the vendor supplying the equipment.
2. An installation at a time later than the time of delivery constitutes a separate transaction and is a fundamental violation of AER guidelines.
3. 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.
4. A separate installation, from other funds, differentiates that cost from the dollar value of the equipment inventory upon which future AER funding is based.

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.

1. Group I: Structural (built-in) equipment - a part of the building; not AER eligible.
2. Group II: Permanent, non-moveable equipment; not AER eligible.
3. Group III: Moveable equipment over $250.00; AER eligible over $500.00, (ECC/LRC) eligible over $250.00.

Go to Table of Contents or go to Business Office Home Page

Gift certificates are not authorized purchases from any funding source under the control of the  State of New York, including State Operating, IFR, DIFR.

Gift certificates and cash gifts are prohibited because of the potential for impropriety and tax liability evasion.  Any kind of payment to any individual must be processed through the payroll process, or in certain areas as a voucher payment, both generating tax disclosure and audit trail.

Go to Table of Contents or go to Business Office Home Page

Reimbursement or Payment for Food/Beverages Under Procedures of N.Y.S.

Under certain circumstances, cost of food and beverages can be considered an appropriate N.Y.S. expenditure (applies equally to R. F. funds).  The following guidelines are intended to clarify those circumstances and limitations.

It is important to note that N.Y.S. has issued no formal guidelines as to appropriate expenses, rather each incident is audited on a case-by-case basis.  Under flexibility extended to agencies, local practices should be consistent and defensible, reflecting the spirit of occasional N.Y.S. audit comments and perceptions of appropriate use of public funds.

Three general guidelines apply:

1.  Under no circumstances is the cost of alcoholic beverages acceptable.

2.  Normally N.Y.S. employees are not to be recipients of food/beverages, such cost considered to be a usual personal responsibility.  N.Y.S. may feel that the potential for abuse is high.  Certain circumstances, noted below, are acceptable.

3.  Non-travel status food/beverage must be relatable to official business and vital to the attainment of the business purpose.  Therefore, purely or primarily social or courtesy events are not considered appropriate State expenditures (this would include birthday, retirement, promotion receptions).

GUIDELINES:

Allowable Costs:

1.  Official Business Travel Status:

Employee:  Reimbursement for food costs in accordance with standard reimbursement rates is acceptable; reimbursed via travel reimbursement voucher (see Travel Guidelines).

Non-employee (candidate, consultant, student acting in an official administrative capacity).  Paid by Standard Voucher.

3.  Food/beverages supporting a formal official business setting (conference, workshop, training session), evidenced by a formal program agenda, statement of purpose, listing of participants; the food/beverages must serve a demonstrably essential/important ingredient for success, not merely a hospitality enhancement; a working lunch session which could not have been scheduled differently nor individually paid could be acceptable if justified:

4.  Food/beverage/hospitality supported by participant fees (typically within a conference registration fee), evidenced by a formal program/agenda, state of purpose, listing of participants.

Unallowable Costs:

1.  Alcoholic beverages

2.  Food/beverage provided in a largely social unstructured setting, such as reception, parties, gatherings which do not serve a clear official business purpose.

3.  Food/beverages provided as incidental to normal meetings (staff meetings, committee meetings, etc.) on which the success of the meeting does not depend.  Typically involving predominantly employees, the food/beverage serve no essential purpose, therefore, the costs of which should not be borne by State funds.

Go to Table of Contents or Go to Business Office Home Page

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 College, 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

1. The campus individual making the lodging arrangements for the attendee(s) determines the date(s) for which lodging is required and the lodging establishment to be used.
2. Before calling the lodging establishment, please call the Purchasing Office at ext. 2305 for a purchase order number to provide the hotel at the time reservations are made.
3. The campus individual then contacts the lodging vendor and arranges 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 of the tax exempt status of the charge and give the vendor the purchase order number assigned by Purchasing, advising that a hard copy purchase order will follow as confirmation.
4. 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 and the number of days of stay for each attendee.
    

    
    

   NOTE: If the attendee(s) will be eating a meal at the lodging establishment, an amount for that meal may be listed on the Purchase Requisition and added to the lodging amount for the total amount the lodging vendor is authorized to bill the College. Meal rates MUST NOT exceed the prevailing meal per diem for Cortland and MUST NOT include charges for alcoholic beverages.
    

5. The Campus individual then calls the Purchasing Office with the dollar amount of the requisition.The completed requisition is forwarded with appropriate signatures and account coding to Purchasing. The purchase order number initially given out by Purchasing should be prominently labeled on the top of the requisition.
6. Purchasing issues the purchase order to the lodging vendor as confirmation of the reservation and assurance of future payment via State funds.

Go to Table of Contents or go to Business Office Home Page