Policy 5.11
Purchasing
Part 1. Purpose
This policy clarifies local authority and points of emphasis in the local procurement process appropriate.
Part 2. Definitions
The following definitions apply to this policy and its supporting procedures:
Encumbrance: setting aside funds in the College’s accounting system for a specific goods or services, making those funds unavailable for any other expenditure.
Part 3. Process
Subpart A: Local Purchasing Authority
Minneapolis College shall follow the purchasing requirements as defined in Minnesota Statute 471.345, Uniform Municipal Contracting Law, and other pertinent statutes, as well as the authority to utilize any contracting options available to the commissioner of administration under Minn. Stat. Chapters 16A, 16B and 16C.
Pursuant to Minnesota State Board Procedure 5.14.5 Purchasing for Board Policy 5.14, the College has the authority to make purchases up to \$100,000. Purchases over \$100,000 must be reviewed and approved by the system office unless the College has received increased authority.
The College cannot agree to indemnify third parties or hold them harmless (Minn. Statute 10.17; Minn. Const. Art. XI, Sec. 1).
Subpart B: Encumbrance
Pursuant to Minnesota State Board Procedure 5.14.5 Purchasing for Board Policy 5.14, funds must be encumbered prior to making an obligation. An expenditure or obligation authorized or incurred prior to encumbering funds is illegal and ineligible for payment unless specifically made valid by the approval of the President through the use of a 16A form as set forth in Minn. Statute 16A.15. 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 Minn. Statute 16A.15 is just cause for the employee's removal.
No College funds may be encumbered verbally or otherwise without first obtaining a purchase order via the submission of a requisition for purchase.
Subpart C: Prepayment
Minn. Statute 16A.41, Subd. 1, prohibits the College from paying in advance.
The College can only make prepayments for:
- Software or software maintenance services,
- Information technology hosting services,
- Sole source maintenance agreements where it is not cost-effective to pay in arrears,
- Exhibit space when required to guarantee availability of space,
- Registration fees where advance payment is required or advance payment discount is provided,
- Newspapers and magazines, and
- Other subscription fees customarily paid for in advance.
Owner(s) Title: Vice President of Finance and Operations
Date of Adoption: 7/1/1999 (Not Verified)
Date of Implementation (if different from adoption date): N/A
Date Last Reviewed: 3/19/2025 (Comprehensive Review)
History and Subject of Revisions: 3/19/2025 (Comprehensive Review part of review of all finance policies. Restructured policy. Changed Part 1 to Purpose and updated content. Added Definitions section. Updated purchase limit per system policy. Updated guidance on prepayment section. Removed information regarding the solicitation of bids and rental of equipment.), 1/3/2019 (non-substantive changes.), 7/1/1999 (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; Minnesota State Board Policy 5.14 Contracts, Procurements, and Supplier Diversity; Minnesota State Board Procedure 5.14.5 Purchasing for Board Policy 5.14