Procedure 5.11.04

Part 1. Purpose

To ensure adherence to State of Minnesota Statute 16A.15 at Minneapolis College.

Part 2. Definitions

The following definitions apply to this procedure:

Authorized signer: the person with the delegated authority to spend.

Part 3. Process

The authorized signer initiates a 16A Form when completing a contract. This is an attestation to the authorized signer’s understanding that work/services will not begin until the contract is fully executed.

Part 4. Violations

The authorized signer completes a 16A Violation Form anytime an order has been placed, service received, or invoice received prior to funds being encumbered and a Purchase Order is completed. Completing the 16A Violation Form requires the following information:

1. Total obligation amount,
2. Date of obligation,
3. Explanation of why obligation was incurred prior to encumbrance/execution of contract, and
4. What corrective action will be taken to ensure against further violations.

The form is signed by the authorized signer and then forwarded to the Business Office. Business Office staff will forward the form for the signature of the President or Vice President of Finance and Operations.

Only a completed 16A Violation Form will allow a payment to be made for items procured in violation of state statute 16A.15.

The Business Office maintains a file of all 16A violations and ensures that the event is recorded in the 16A log in the correct Fiscal Year and is classified appropriately.

The Business Office reports annually (or as requested) to the Vice President of Finance and Operations on the information recorded in the 16A log. Annually, the Vice President of Finance and Operations will report to the College President on 16A activity. This report may include information on trends, patterns, and proposed solutions.

Owner(s) Title: Vice President of Finance and Operations

Date of Adoption: 12/27/2005

Date of Implementation (if different from adoption date): N/A

Date of Last Review: 3/19/2025 (Comprehensive)

History and Subject of Revisions: 3/19/2025 (Comprehensive Review part of the review of all finance policies. Changed Part 1 from Introduction to Purpose and shortened content in section. Added definitions. Changed the Timing section to Process and revised content. Changed Form section to Violations and updated content.), 12/27/2005 (Adopted)

Regulatory Authority (e.g. Minnesota State policy, federal or state law):   Minn. Statute 471.345, Uniform Municipal Contracting Law; Minn. Statute 10.17; Minn. Const. Art. XI, Sec. 1; Minn. Stat. Chapters 16A, 16B and 16C