Office of Origin: Purchasing & Risk Management
Responsibility: Manager, Purchasing & Risk Management
Original Date Adopted: 10-26-93
Dates Reviewed: 8-16-12, 5-2-16, 8-4-21(C), 9-25-23(C), 12-11-24 (C)
Last Date Approved by Board: 12-5-23, 4-15-25

RESPONSIBILITIES 

It is the responsibility of employees to know and abide by this policy. If an employee is found not to be compliant, the following progressive options are available depending on the nature of the non-compliance:  

1. Verbal reminder and review of the procedure with the employee 
2. Verbal warning to the employee by Human Resources 
3. Written warning to personnel file 
4. Discipline up to and including termination 

Employees are expected to conduct business according to the highest legal and ethical standards; see Conflict of Interest - Employee policy. 

Employees are to avoid accepting any kind of gratuity, tips, or gifts, including merchandise, cash, services, entertainment, etc.; see the Receipt of Gifts & Gratuities policy.  

Purchases may only be made if there are adequate budgeted funds over which the purchaser has authority, or with written approval from the Executive Director, Finance or Chief Financial Officer (CFO) to exceed budget. 

All contracts/agreements are to be sent to Purchasing to be maintained in the master contract file. It is the responsibility of the employee to ensure compliance with a contract/agreement.

AUTHORITY TO PURCHASE 

In accordance with the Authority to Bind the College to External Agreements policy, certain purchases require Board of Trustee (the Board) approval in advance of the purchase commitment.

Agreements to Maintain Academic Equipment

Maintenance agreements may not be a prudent use of College resources and must be approved in advance by the supervising Cabinet Member.

Alcohol

• Only the following departments may purchase consumable alcohol and only for the following purposes:
• Culinary – for direct instructional purposes
• Enology & Viticulture – for direct instructional purposes
• Hospitality – for direct instructional purposes
• Mendel Center Operations – for resale business purposes
• Mendel Center Mainstage – to satisfy production rider requirements
• President’s Office – Upon occasion it may be appropriate to purchase alcoholic beverages when entertaining College guests or when hosting a College-related group activity. All such occasions must be hosted by the President or the expense must be authorized in writing by the President.  

Capital Purchases
A requisition and purchase order is always required for a capital purchase or a purchase that is part of a capital project, regardless of dollar amount, to ensure proper tagging as a capital asset. See Capital Asset policy for what qualifies as a capital asset.

Cash Advances, Travelers Checks, Money Orders
The College does not offer cash advances, travelers checks, or money orders for travel or other expenses.

Charges for Non-employees
Costs for a non-employee (e.g., a spouse when traveling on College business) are not allowable purchases unless the non-College individual is a guest of the College (e.g., taking a donor to lunch, meeting with a superintendent for breakfast.)

Flowers & Gifts
Flowers or gifts are not allowable purchases unless provided by or authorized by the President’s Office or the Culture & Talent Success office. This does not include College promotional items, like lanyards, t-shirts, sunglasses, etc.

Computers, Peripherals, Software, & IT Services for College Use
All requests for technology goods and services must be approved by the IT Department prior to or upon requisitioning. Certain grant/restricted programs where equipment and software do not become College property and/or are not installed on the College network are an exception to this requirement. The grant/restricted funds administrator is required to authorize such purchases prior to or upon requisitioning.

Donations
Donations to other organizations using College monies or assets are prohibited unless approved by the supervising Cabinet member and CFO.

Entertainment
The College does not purchase, pay for, or reimburse an employee for entertainment unless part of a Lake Michigan College Foundation event, done as a team-building exercise for an athletic team in accordance with Athletic Department policy, academic field trips or academic recruiting, or done by the Culture & Talent Success department.

International Vendors International vendors are prohibited for use unless they accept payments via credit card.

Gift Cards
The use of College or grant/restricted funds to buy gift cards, prepaid cards, or similar cash equivalents for any reason (student incentives, employee recognition, fundraising, etc.) is prohibited without pre-approval in writing by the CFO.

The purchase of vouchers to be used exclusively at the Hawk’s Nest Café is allowable with the approval of the supervising Cabinet member.

Grant/restricted funds include federal, state, or private grant funds or those funds with a purpose restricted by an external agreement.

Personal Goods or Services
The College will not purchase goods or services for employee personal use, nor will arrangements be made by Purchasing to create any buyer-seller arrangements between employees and vendors.

Pro Card, Expense Reimbursement, and Direct Paycheck Request
Purchases by procurement card, reimbursement for out-of-pocket purchases, and direct paycheck requests are for purchases for which a purchase order is not required or accepted. These purchasing/payment methods may not be used to circumvent this or other policies or procedures or for services provided by an employee (which must go through payroll).

Publications (Printing and Graphics)
All publications (brochures, newsletters, catalogs, forms, etc.) that will be distributed outside the College must be approved by the Marketing Department to ensure consistent, high-quality publications and graphics standards.

Rentals
Facility or room rentals are not allowable purchases unless College facilities are unavailable.

Sales Tax Exemption Status
The College (other than Mendel Center Operations) is exempt from all federal, state, and local taxes. For purchases related to Mendel Center Operations, see Collection & Review of Tax Exemption Forms procedure. Employees are responsible for ensuring that sales tax is not paid, which may be done by telling the vendor when ordering that the purchase is tax exempt and providing a tax-exempt certificate if necessary.

Split Purchases
Splitting purchases into more than one transaction or coding a single transaction to different org units to bypass authority levels, competitive bidding requirements, or internal controls is strictly prohibited. Coding a single transaction to multiple org units is allowed if done for legitimate business reasons.  

Travel Expenses
See the Travel Expense Reimbursement procedure.

References:    
Authority to Bind the College to External Agreements policy 

Capital Asset policy
Conflict of Interest - Employee policy
Justification for Sole Source Procurement Request form  
Non-Discrimination policy 
Purchasing procedure 

Purchasing - Required Practices

Receipt of Gifts and Gratuities policy
Travel Expense Reimbursement procedure