This policy describes certain administrative services and internal controls of the College.
Scope and Applicability
This policy applies to all who provide administrative services by the College.
This policy sets out the legal and managerial responsibilities for financial management and contracting processes and sets limits for authorizing business expenditures of the College. More specific policy directives will be found in Section 6.
- Audit Rule
A rule published by the New Mexico State Auditor governing the conduct of the annual audits of New Mexico public entities.
- Procurement Code
§ 13-1-1 NMSA 1978 et seq, as amended from time to time.
- Small Purchase
As described in § 13-1-1 25 NMSA 1978, as amended from time to time.
A. Financial Management
The Board shall determine the operating budget for the distribution of available resources according to the Board’s priorities for the College. The President and Vice President for Finance shall prepare the fiscal year budget of income and expenditure through an inclusive process with the campus community.
- To implement the approved budget according to principles of sound financial management, the President may re-allocate funds between various elements within a fund of the budget.
- In addition to state appropriations, the College may accept gifts, grants, and federal funding in furtherance of its educational programs.
- The Board shall be notified in a timely manner of administrative intent to pursue grants that would have significant impact on the College’s budget.
- Tax Rate and Levy of Taxes: The Board shall set the tax rate and levy taxes for Santa Fe Community College (SFCC). The tax rate may not exceed the amount approved by the voters of the Santa Fe Community College district or the limits set by state statutes.
- Audit: An independent audit report prepared annually according to the Audit Rules shall be submitted to the Board, the Higher Education Department, and the New Mexico State Auditor. The Board Finance Committee or a specially appointed Board Audit Committee shall review the audit prior to submission.
B. Purchasing and Contracts
The College shall attempt to procure materials and services for the greatest value to the College in accordance with the Procurement Code. The Vice President for Finance shall establish purchasing protocols, approved by the President, that describe the process to be followed for all purchases.
- Purchases made through an Invitation for Bid (IFB) or Request for Proposal (RFP) shall in all cases identify a contact person for the IFB or RFP and shall specifically state that bidders or offerors may not contact any other employee, officer or member of the Governing Board regarding the procurement. Any bidder or offeror that makes such unauthorized contact shall be deemed to have violated the terms and conditions of the IFB or RFP and that person’s bid may be rejected as a result.
- The power to contract on behalf of the College is vested in the Board; however, subject to the exceptions in Paragraph 3 below, the Board authorizes the execution of contracts and agreements as follows:
a. Contracts and agreements at dollar amounts up to $150,000 may be authorized and executed by the President. The Board must be notified of any contract over $100,000 through a report within the financial statements.
b. Contracts and agreements at dollar amounts over $150,000 must be authorized by the Governing Board and, once authorized, may be executed by the President, unless the authorizing action of the Governing Board provides otherwise.
c. Contracts for purchases that are exempt from the Procurement Code and emergency procurements, as defined in the Procurement Code, are not subject to approval as described above. Those contracts shall be addressed in the purchasing protocols. The Board must be notified at the next Board Meeting of any emergency procurement.
3. The Board retains the authority to approve the following contracts regardless of dollar value:
a. Contracts for architectural services for construction projects valued over $150,000;
b. Construction contracts;
c. Contracts for Legal Services;
d. Insurance contracts; and
e. Contracts for Auditing Services.
C. Capital Improvement Change Orders
Every capital improvement project shall include a contingency change order budget of 5% for new construction and 10% for remodeling projects. For change orders that do not exceed that budget, the following approvals are authorized:
- The Vice President for Finance may authorize and execute change orders up to $100,000.
- The Vice President for Finance shall report to the President any cumulative dollar amount of change orders on any one project that exceed $100,000 and the President shall make additional reports to the Board for each $100,000 increment of change orders.
- The President may approve change orders at dollar amounts up to $200,000 and shall report such expenditures to the Board at the next regular meeting.
- The President shall request approval of the Board for any change order when the cumulative dollar amount of change orders on any one project exceeds $200,000. And shall make additional reports for each $100,000 increment of change orders.
- The Board shall approve any change order at dollar amounts over $200,000, or that exceed the contingency change order budget.
D. Signatory Authority
- Warrants: Certain specified employees of the College are authorized and empowered by the Board to sign warrants on SFCC funds for lawful expenses of the College. The Financial Services Office holds the resolutions and procedures that provide for such authorizations.
- Grants: The President or designee is authorized to make application on behalf of the College to private and governmental agencies for grant funding. Prior approval of the Board shall be required for any grant application:
a.In support of new construction, and
b. When the terms require specific Board approval.
3.Surplus Property: The President or designee is authorized to sign resolutions and other documents necessary for the purchase or disposition of surplus property items from appropriate state agencies.
E. Facilities and Equipment
- The Board declares its property to be restrictive in use and purpose to that of supporting educational programs and activities under the control of the College.
- The Board designates to the President or designee the management of facilities and obligates the College to maintain a campus environment appropriate for educational purposes.
- Off campus groups using the facilities shall be required to follow appropriate College procedures for use of the facilities.
- Long term use by off campus groups using SFCC facilities must be approved by the Board.
- The College may establish and operate auxiliary services such as a bookstore and food service to support its mission and purposes.
Statement of Accountability and Responsibility
The Board collectively and through its Finance Committee, the President and the Vice President for Finance are responsible for the implementation of this policy.
Original approval date: 1/11/08
Revised and SFCC Governing Board approved: 11/18/14