Created: 2/1994
Last Revised: 5/2025
Authority for Procedures Contained Herein
Procedures in this document are developed and executed under the authority granted by the following Board policies:
I. Comprehensive Procurement Strategy
A. Purchasing Objective
The expenditure of all Richland Community College funds should be handled so that the greatest value per dollar expended is achieved while maintaining compliance with all applicable federal, state, and local laws.
B. Centralization in Authority for Procurement
The responsibility for procurement and the administration of purchasing policies and procedures for all College operations has been centralized in the Business Office.
C. Unauthorized Purchases
No individual has the authority to enter into any purchase contract or in any way obligate the College for a procurement indebtedness unless specifically authorized by the Controller, Vice-President of Financial Services, or the President. All purchases and charges to the College must be authorized by an official College purchase order unless explicitly allowed by another procedure listed in this document.
D. Gifts
All employees of the College are prohibited from accepting gifts of value for personal use (commissions, gifts or services) from companies or organizations doing business with or seeking to sell equipment, materials, or services to the College. Any gifts with a value of $50 or more become the property of the College and are to be used at the College. There are no exceptions.
E. Conflict of Interest in Procurement
The College is not permitted to directly purchase property, supplies, or equipment from persons serving on the Board of Trustees of the College. Accordingly, no purchase contract or purchase order shall be executed with a person or entity having influence over the purchase or procurement decision.
F. Receiving and Interviewing Sales Representatives
College departments which contact potential vendors in order to obtain product information and tentative pricing must understand that no commitments may be made until such time as a properly issued purchase order is executed. All personnel should be aware that during a competitive sealed bid process, it is unethical and may be unlawful for College personnel to be in contact with any potential bidders regarding the bid process or the items involved. All contacts must be made through the Business Office and addenda issued to all bidders.
G. Purchasing Process Workflow
Communications during the purchasing process is accomplished via the requisition process in myRichland. The general workflow of documents during the lifecycle of a purchase are as follows:
II. Authority and Responsibilities of a Budget Manager
A. Following Uniform Purchasing Procedures Regardless of the Fund Source
General procedures concerning purchasing apply to all funds of the College, regardless of source. All funds deposited with the College are the responsibility of the College and must be expended in accordance with College procedures.
B. Expenditures Requiring the Issuance of a College Purchase Order
General procedures require that purchase orders be issued for an expenditure of College funds. All purchase orders are to be approved by the V.P. of Finance.
C. Authority to Submit a Purchase Requisition
Budget managers are authorized to sign purchase requisitions for items or services which are budgeted.
D. Use of Blanket Purchase Orders
“Blanket” purchase orders allow a budget manager to write a single purchase requisition to procure a variety of materials or services from a single vendor over a period of time. The Purchasing Coordinator will occasionally recommend when such a procedure should be followed. The following rules apply to blanket purchase orders:
Blanket purchase orders may be made for amounts that would exceed bid limits established by Board policy as long as one of the following is true:
E. Authority to Specify Payments be Issued Based on Registration:
Vendors may be paid directly from registration fees collected for an event. In this case, the payment is based on the number of registrations; due to the variable nature of event activities, requisitions and payments to a vendor may exceed the procurement limits without Board approval. In most cases, payment to the vendor by check is required. Checks may be issued to pay the obligations incurred, and amounts must presented to the Board for ratification as a part of the financial report at the next regular Board meeting.
F. Credit Card Use
The Business Office routinely purchases items from online vendors & other sources via credit card.
Similarly, the Vice-President of Finance has the authority to assign an individual institutional credit card purchasing to an individual employee at the VP’s discretion. Individuals who are assigned such cards are bound to follow all applicable Board policies and purchasing rules.
Budget managers needing to purchase goods & services from such vendors must utilize the credit card requisition form on myRichland in lieu of a standard purchase requisition.
Budget managers and other College personnel may use a College credit card to purchase goods or services directly in the following situations:
Credit card approvals also follow an electronic approval workflow. After all approvals have been obtained, the purchaser will receive a notification that they may pick up a credit card in the Business Office. The Business Office will complete a log showing the date, card number, and purchaser’s name. The purchaser will return the card to the Business Office, and upload a copy of the receipt documentation through myRichland as directed.
G. Purchasing of Items of Licensing from Sole-Source Vendors
In accordance with State and Board policy, purchases for sole source items or licenses may exceed procurement bid limits without completing the bid process, but such purchases must be presented to the Board for ratification at a regular Board meeting before the college can commit to the purchase with the vendor.
H. Approving Transactions to be Processed by Disbursement Requests
Some transactions which are made on behalf of the College can be completed without processing a purchase order. The Business Office can, if proper documentation is present, issue payment when the expenses are:
I. Central Stores
Commonly-used office supplies are purchased in bulk using centralized funds and charged to individual offices or departments on an as-needed basis. Employees should use the Central Stores requisition process on myRichland when procuring office supplies. The Business Office will budget transfer funds for Central Stores purchases at the end of each calendar month. The Operations Department and Business Office hold final decision-making authority on whether or not any given item is acceptable to be purchased through Central Stores.
J. Obtaining Quotations and Competitive Bids
Requisitions under the approval limits listed below are typically processed immediately. However, the Business Office reserves the right to initiate a competitive bid process at their discretion.
All requisitions greater than $5,000 must have three price quotations, except in those instances where there are less than three possible vendors (i.e., "sole source", or limited sources).
Any requisition that costs more than $25,000 (or $50,000 for construction) requires a competitive sealed bid process and Board approval (refer to Illinois Public Community College Act section 805/3-27.1 for additional information). The Business Office will assist the budget manager in developing a written bid and will facilitate the competitive bidding process. Questions regarding competitive bids should be directed to the Purchasing Coordinator.
Exclusions to the competitive bid process allowed by ICCB purchasing rules will be honored by the College. Budget managers should still strive to obtain three price quotations for excludable items if it is reasonable to do so. Excludable items, per Illinois Public Community College Act section 805/3-27.1, are as follows:
(a) contracts for the services of individuals possessing a high degree of professional skill where the ability or fitness of the individual plays an important part;
(b) contracts for the printing of finance committee reports and departmental reports;
(c) contracts for the printing or engraving of bonds, tax warrants and other evidences of indebtedness;
(d) contracts for materials and work which have been awarded to the lowest responsible bidder after due advertisement, but due to unforeseen revisions, not the fault of the contractor for materials and work, must be revised causing expenditures not in excess of 10% of the contract price;
(e) contracts for the maintenance or servicing of, or provision of repair parts for, equipment which are made with the manufacturer or authorized service agent of that equipment where the provision of parts, maintenance, or servicing can best be performed by the manufacturer or authorized service agent;
(f) purchases and contracts for the use, purchase, delivery, movement, or installation of data processing equipment, software, or services and telecommunications and inter-connect equipment, software, and services;
(g) contracts for duplicating machines and supplies;
(h) contracts for the purchase of natural gas when the cost is less than that offered by a public utility;
(i) purchases of equipment previously owned by some entity other than the district itself;
(j) contracts for repair, maintenance, remodeling, renovation, or construction, or a single project involving an expenditure not to exceed $50,000 and not involving a change or increase in the size, type, or extent of an existing facility;
(k) contracts for goods or services procured from another governmental agency;
(l) contracts for goods or services which are economically procurable from only one source, such as for the purchase of magazines, books, periodicals, pamphlets and reports, and for utility services such as water, light, heat, telephone or telegraph;
(m) where funds are expended in an emergency and such emergency expenditure is approved by 3/4 of the members of the board; and
(n) contracts for the purchase of perishable foods and perishable beverages.
All competitive bids must be sealed by the bidder and must be opened by a member or employee of the Board at a public bid opening at which the contents of the bids must be announced. Each bidder must receive at least three (3) days’ notice of the time and place of such bid opening.
The Illinois Public Community College Act section 805/3-27.1 requires that competitive bids be duly advertised prior to the public bid opening. For purposes of this procedure due advertisement includes, but is not limited to, at least one public notice at least 10 days before the bid date in a newspaper published in the district, or if no newspaper is published in the district, in a newspaper of general circulation in the area of the district.
Returned bids from prospective vendors that do not agree with all aspects of the specifications stated will be rejected unless “or equal” alternates are allowed in the bid specifications or there are extenuating circumstances as determined by the Purchasing Coordinator.
The Business Office may, at its discretion, conduct a competitive bid process on any item which lends itself to competitive pricing.
Individual departments may, for their own information, wish to secure price quotations on items being considered for purchase. It should be understood, however, that these price quotations, regardless of their source, may not be acceptable to the Business Office.
K. Changes to, or Cancellation of, a Purchase Requisition (or Order)
In the event that a purchase requisition or order needs to be changed or cancelled after the budget manager has signified their approval, please contact the Business Office.
After receiving notice of a change or cancellation, the originator or the Business Office will notify the vendor (if appropriate).
By default, the Business Office will allow the invoiced amount for a purchase order to exceed the approved amount by 10% of the total value of the purchase order without requiring an official change to be filed.
L. Expenditures at the End of a Fiscal Year
Funds budgeted for a particular fiscal year are intended to meet needs that arise during that fiscal year. As such, the College disallows aggressive purchasing at the end of a fiscal year where the overt primary purpose is to expend remaining budget funds.
Requisitions using grant funds for supply items and equipment should be submitted early so that buying negotiations can be accomplished, delivery secured and invoices processed before the end of the grant period. Grants usually have a liquidation period at the end of the grant period which covers the receipt, invoicing and payment of the invoice for the grant items. Budget managers, should keep these requirements in mind when purchasing. All such requisitions should reach the Business Office at least three months before the end of the grant’s budget period.
Purchase order processing is typically halted prior to the actual end if the fiscal year to assist with the financial year-end close. The Business Office will notify budget managers of the last date that purchase requisitions will be accepted near the end of each fiscal year.
M. Reporting Mistakes in Shipping
The Operations Department is responsible for receiving packages, performing a cursory inspection for visible damage, and delivering items to the correct department. The department receiving the merchandise is responsible for promptly unpacking and inspecting shipments. Any discrepancies, shortages, or hidden damage should be reported promptly to either the vendor or the Business Office. A delay is reporting shipping errors may result in the vendor being paid for materials that were not received.
N. Rental or Lease Equipment
Equipment which is furnished for College use by outside agencies on a rental basis, whether for a definite or indefinite period, must be covered by a formal purchase order. In the case of leased equipment, the department concerned should clearly note "lease" on the requisition. These purchase requisitions may not extend past the end of the fiscal year for which they are written. Vendor lease agreements should accompany these requisitions and be forwarded to Vice-President of Financial Services for signature.
III. Supplier Selection and Procurement Techniques
A. Joint Purchasing
In order to take advantage of cost benefits derived from volume buying, Richland Community College may on occasion participate in purchase arrangements with the State of Illinois Central Management Services, the Illinois Joint Purchasing Council, the Illinois Public Higher Education Cooperative, or other purchasing consortiums. Since items requisitioned through these entities have already been bid, it is not necessary for further quotes to be taken and a purchase order may be generated immediately.
B. Service Agreements
Some equipment is covered by service contracts designed to ensure continuing efficient operation. Agreements which create a financial responsibility for the institution are signed on behalf of the College by the Vice-President of Financial Services and transmitted to the vendor along with the corresponding purchase order.
C. Business Enterprise for Minorities, Females, and Persons with Disabilities Act
As an institution of higher education in the State of Illinois, Richland Community College's purchasing decisions are guided in part by the aspirational goals set forth in the Illinois Business Enterprise for Minorities, Females, and Persons with Disabilities Act. While the College is legally obligated to act in a fiscally responsible manner when procuring goods or services, all employees with purchasing authority are obligated to work to achieve the goal set forth in the Act, which is that 20% of all purchases made by the College will be made to business that are majority owned by minorities, females, or persons with disabilities (11% minority, 7% female, 2% persons with disability). To assist the College in achieving this goal, the Purchasing Coordinator will do the following:
D. Use or Recycled Items
The College encourages the purchase of used items, or items made from recycled content whenever it is practical to do so. In situations where such items are available for a cost that is relative to that of items which do not contain recycled content, it is acceptable to consider the items containing recycled content as a viable option for purchase per State procurement codes and other applicable laws.
IV. Special Responsibilities of Specific Departments
A. Receipt of Merchandise
All items purchased by the College shall be received by the Operations Department in the Receiving Office. Purchases should never be delivered by the vendor directly to the department. In the event that a vendor bypasses the Receiving Office, the employee who interacts with the vendor (or their designee) is responsible for notifying the Receiving Office of the delivery.
B. Fixed Asset Capitalization and Property Control Procedures
Capital assets include property, equipment, and infrastructure assets (such as roads and sidewalks). Capital assets are defined by the College as assets with an initial unit cost of $5,000 or more and an estimated useful life in excess of five years. Component pieces that total over $5,000, but cost less than $5,000 per unit and, when assembled, function as a standalone working unit or operate as part of a network system will also be considered capital assets. All land acquisitions will be recorded as capital assets, regardless of whether it meets the $5,000 threshold.
The costs associated with general maintenance and repair that do not add value to an asset or materially extend the asset’s useful life are expensed in the period incurred rather than being capitalized. Major repairs or rehabilitations which materially extend the useful life of an asset are capitalized.
Capital assets are recorded at historical cost. Donated capital assets are recorded at estimated fair market value on the date of donation. Capital Assets are depreciated using the straight-line method over the following useful lives.
| Asset Type | Years |
|---|---|
| Buildings | 40 |
| Building Improvements | 15 |
| Furniture and Equipment | 5 |
| Software | 3 |
Control of assets is the responsibility of each division, department or individual custodian as stated in Board Policy 2.7.2. Departments are responsible for reporting the relocation of an asset to the Vice-President of Operations & Technology.
The Operations Department shall ensure that monitoring of College assets is maintained by establishing a fixed asset inventory. Physical inventories of College assets will be performed by the Operations Department as determined by the Vice-President of Financial Services.
For property control purposes, items exceeding $500.00 will be tracked in the fixed asset system, as deemed necessary by Vice-President of Financial Services.
At times, equipment is donated to Richland Community College through the Foundation. When a department is the recipient of such a gift, the Operations Department should be notified so the item can be placed on the fixed asset inventory.