Compliance of Federal Funds

 

Allowable Cost

Colby Community College will expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state’s own funds. In  addition, the state’s and  Colby Community College financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award (§200.302).

The financial management system of Colby Community College will provide for the following (see also Sec.Sec.200.333 Retention requirements for records, 200.334 Requests for transfer of records, and 200.337 Restrictions on public access to record).

Colby Community College will have or provide:

Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the CFDA title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if

      • Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in Sec. Sec. 200.327. Financial reporting and reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient must not be required to establish an accrual accounting system. This recipient may develop accrual data for its reports of the basis of an analysis of the documentation on
      • Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source
      • Effective control over, and accountability for, all funds, property, and other assets. Colby Community College will adequately safeguard all assets and assure that they are used solely for authorized purposes. See Sec. 200.303 Internal controls for full
      • Comparison of expenditures with budget amounts for each Federal
      • Written procedures to implement the requirements of Sec. 200.305
      • Written procedures for determining the allow ability of costs in accordance with Subpart E--Cost Principles of the Part and the terms and conditions of the Federal

Colby Community College is aware of the Allowable Cost policy as defined in § 200.302 (78624, Federal Register, Vol.78, No. 248/Thursday, December 26, 2013/Rules and Regulations) and voluntarily complies.

 

Equipment Purchase

Equipment Defined: Information derived from: 78612, 78614, & 78617, Federal Register, Vol.78, No. 248/Thursday, Dec. 26, 2013/Rules and Regulations.

200.33 Equipment. Tangible personal property(including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000. See also §§200.12 Capital assets, 200.20 Computing devices, 200.48 General purpose equipment, 200.58 Information Technology systems, 200.89 Special purpose equipment, and 200.94 Supplies.

200.48 General purpose equipment. General purpose equipment is not limited to research, medical, scientific or other technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles.

200.89 Special purpose equipment. Special purpose equipment is used only for research, medical, scientific, or other technical activities. Examples of special purpose equipment includes microscopes, x-ray machines, surgical instruments, and spectrometers.

200.94 Supplies. All tangible personal property other than those described in § 200.33 Equipment. A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the non- Federal entity for financial statement purposes or $5,000, regardless of the length of its useful life.

200.320 (a) Sealed Bids. Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all of the material terms and conditions of the invitation for bids, is the lowest price. The sealed bid method is the preferred method for procuring construction, if the conditions in paragraph (c) (1) of this section apply.

In order for sealed bidding to be feasible, the following conditions should be present:

    1. A complete, adequate, and realistic specification or purchase description is available;
    2. Two or more responsible bidders are willing and able to complete effectively for the business; and
    3. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

If sealed bids are used, the following requirements apply:

    1. The invitation for bids will be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids;
    2. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;
    3. All bids will be publicly opened at the time and place prescribed in the invitation for bids;
    4. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
    5. Any or all bids may be rejected if there is a sound documented reason.

Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost reimbursement type contract is awarded. It is generally used when condition are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

    1. Requests for proposals will be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
    2. Proposals will be solicited from an adequate number of qualified sources;
    3. Colby Community College will have a written method for conducting technical evaluation of the proposals received and for selecting recipients;
    4. Contracts will be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and
    5. Colby Community College may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:

    1. The item is available only from a single source;
    2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
    3. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or
    4. After solicitation of a number of sources, completion is determined

 

Single Source Defined
Single Source is procurement will be followed when, although two or more vendors supply the commodities or services, the department selects one for substantial reasons, eliminating the competitive bidding process. ‘Single’ means ‘the one among others’.

Sole Source Defined
Sole Source is procurement in which only one vendor is capable of supplying the commodity or service. This may occur when the goods or services are specialized or unique in character. Written justification will be provided. ‘Sole” means “the one and only’.

Sole Source Justification Letter
Submit a sole source justification letter to Purchasing Services that includes:

  1. A product description, including quantity and technical
  2. History of prior purchases and their nature (competitive vs. noncompetitive)
  3. Statement as to the unique circumstances that request award by noncompetitive bid/proposal
  4. An explanation of why the product is unique, if applicable: either (a) The product has special technical qualities, essential to the proposed use/function, and no acceptable substitutes are available from another supplier/manufacturer; or (b) The product is a replacement or auxiliary part to match existing specialized equipment with unique physical design and quality requirements serving a particular function/use.
  5. Proof of no known equal, including a description of attempts to find an equal from other vendors and verification/information of only one available
  6. An explanation that the purchase price is reasonable: (a) Attach documents that prove that the manufacturer offers the best price available because a purchase from a distributor includes the distributor €™s mark-up. (b)Attach a written certification letter from the vendor that its sales price is the best price it offers to any similarly situated educational or non-profit
  7. Description of the efforts made to find competitive
  8. Statement as to the efforts that will be taken in the future to promote competition for the requirement.
  9. Letter must be signed/approved by Dean/Director and Vice President. Once your letter has been received, then your sole source request may have to go before the board for


Equipment Purchases Require

  • The award will be made on the basis of price and other price-related factors;
  • If low price is not selected, just reasoning explaining the rationale behind the selection;
  • Competitive quotations detailing: like, kind, and quality merchandise from separate vendors (minimum of three);
  • If three competitive quotes are not available, documentation as to why the normal procurement process was not followed;
  • Presidential approval prior to processing purchase;
  • Board of Trustees or applicable supervising agency approval prior to processing purchase;
  • If sealed bids are issued, there is at least a ten day grace period granted while bids are being collected, before they are opened (in compliance with § 200.320 (a));
  • If sealed bids are issued, at least two institutional personnel, outside of the purchasing office need to be present at the opening of the sealed bids (in compliance with § 200.320 (a)).

[Added May 2015]

 

 

Equipment Usage

Colby Community College is dedicated to practicing and using federally purchased equipment in the following manners:

  • For the authorized purposes of the project until funding for the project ceases, or until the property is no longer needed for the purposes of the
  • To not encumber the property without approval of the Federal awarding agency or pass-through entity.
  • Use and dispose of the property in accordance with §200.311 Real property
  • A state must use, manage and dispose of equipment acquired under a Federal award by the state in accordance with stated laws and

Equipment will be used by Colby Community College in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by the Federal award, and the Colby Community College will not encumber the property without prior approval of the Federal awarding agency.  When no longer needed for the original program or project, the equipment may be  used in other activities supported by the Federal awarding agency, in the following order of priority:

  • Activities under a Federal award from the Federal awarding agency which funded the original program or project, then
  • Activities under Federal awards from other Federal awarding agencies. This included consolidated equipment for information technology

During the time that equipment is used on the project or program for which it was acquired, Colby Community College will make equipment available for use on other projects or programs currently or previously supported by the Federal government, provided that such use will not interfere with the work on the projects or program for which it was originally acquired. First preference for other use will be given to other programs or projects supported by Federal awarding agency that financed the equipment and second preference will be given to programs or projects under Federal awards from other Federal awarding agencies. Colby Community College knows and understands use for non-federally-funded programs or projects is also permissible, user fees will be considered if appropriate.

Notwithstanding the encouragement in §200.307 Program income to earn program income, Colby Community College will not use equipment with the Federal award to provide services for a fee that is less than private companies charge for equivalent services unless specifically authorized by Federal statute for as long as the Federal government retains an interest in the equipment.

When acquiring replacement equipment, Colby Community College can use the equipment to be replaced as a trade-in or sell the property and use the proceeds to offset the cost of the replacement property.

Management Requirements
Procedures for managing equipment (including replacement equipment), whether acquired in whole or in part under a Federal award, until disposition takes place will, as a minimum, meet the following requirements:

  • Property records will be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.
  • A physical inventory of the property will be taken and the results reconciled with the property records at least once every two
  • A control system will be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft must be
  • Adequate maintenance procedures will be developed to keep the property in good
  • If Colby Community College is authorized or required to sell the property, proper sales procedures will be followed to ensure the highest possible

Disposition

When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulation, or Federal awarding agency disposition instructions, Colby Community College will request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award.

Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions:

  • Items of equipment with a current per unity fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further obligation to the Federal awarding
  • Except as provided in §200.312 Federally-owned and exempt property, paragraph (b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair-market value in excess of $5,000 may be retained by Colby Community College or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency’s percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency my permit Colby Community College to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling
  • Colby Community College may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, Colby Community College will be entitled to compensation for its attributable percentage of the current fair market value of the
  • If Colby Community College fails to take appropriate disposition actions, the Federal awarding agency may direct Colby Community College to take dispositions

Colby Community College is aware of and follow the Equipment usage policy as defined in 200.313 (78629, Federal Register, Vol.78, No. 248/Thursday, December 26, 2013/Rules and Regulations) and voluntarily complies. [Added May, 2015]

 

Institutional Grants

FEDERAL GRANT SUBAWARD NOTIFICATION

Date of Sub award:                                                                Federal Award Identification

 

 

 

Micro-Purchase

Micro-purchase is defined as an acquisition of supplies or services, the aggregate amount of which does not exceed the threshold as defined in 200.320 [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 54409, Sept. 10, 2015]. The threshold is currently $3,500 for most purchase types (exception $2,000 in the case of acquisitions for construction subject to the Davis-Bacon Act). 

Colby Community College will abide by the following methods of procurement in order to be in federal compliance:

  • To the extent practicable, Colby Community College will distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if Colby Community College considers the price to be reasonable.
  • If small purchase procedures are used, Colby Community College will use price or rate quotations from an adequate number of qualified sources.

Colby Community College is aware of the Micro-purchase Policy as defined in 200.320 [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 54409, Sept. 10, 2015] and voluntarily complies.