Colorado State Senate Bill 10-003, enacted by the General Assembly and signed by the Governor and effective June 9, 2010, amends section 24-30-202, C.R.S. As amended, section 24-30-202(13)(b), C.R.S., allows a governing board of an Institution of Higher Education that has adopted fiscal procedures and has determined that such fiscal procedures provide adequate safeguards for the proper expenditure of the moneys of the institution to elect to exempt the institution from the fiscal procedures promulgated by the State Controller pursuant to section 24-30-202. An institution that is exempt from the state fiscal rules is also not required to comply with the provisions of subsections (1), (5)(b), (20.1), (22), or (26) of section 24-30-202, C.R.S.
On June 24, 2010, the Board of Regents of the University of Colorado (“Regents”) determined that existing fiscal policies and practices of the University in addition to the forgoing University of Colorado Fiscal Procedures (the “Procedures”) provide adequate safeguards for the proper expenditure of the moneys of the institution. Accordingly, the Regents elected to exempt the University of Colorado system (the “University”) from the fiscal rules promulgated by the State Controller. The forgoing Procedures were adopted by the University President effective July 1, 2010.
Scope of Procedures
These Procedures are applicable to all university employees and officials, and any representatives of the University authorized to conduct official University Business. These Procedures govern any transaction of any kind and in any medium that involves the commitment or expenditure of University monies or resources. These Procedures are intended to be implemented in concert with applicable state and federal laws and regulations, the Laws of the Regents, and all applicable University policies. Wherever possible, any conflict between these Procedures and any state or federal law and regulation, Law of the Regents, or applicable University policy, should be harmonized. The Vice President for Budget and Finance has final authority to interpret these Procedures.
Chapter 1: Accounting
FISCAL PROCEDURE NUMBER
1-1 Accounting Principles and Standards
1-2 Interface with the State Financial System
1-3 Delegated Authority
1-4 Financial Transactions and Internal Controls
1-5 Reporting of Fraud, Theft or Embezzlement
1-6 Accountability and Capitalization of Equipment
Procedure 1-1 ACCOUNTING PRINCIPLES AND STANDARDS
The accounting principles of the University of Colorado (“University”) shall be based on generally accepted accounting principles (GAAP) as adopted by the Governmental Accounting Standards Board (GASB) and applicable laws and regulations. When it is necessary to report compliance of financial transactions with statutory requirements, supplemental schedules may be used. Preparation of separate statutory based reports may also be necessary.
The Chief Fiscal Officer of the University and the University Controller shall annually certify to the State Controller as to the adequacy of its systems of internal accounting and administrative controls. The certification form, content and due date shall be determined by the State Controller.
Procedure 1-2 INTERFACE WITH THE STATE FINANCIAL SYSTEM
The University shall continue to report to the State Controller regarding its financial transactions as required by law. To facilitate such reporting, the University shall maintain an electronic interface with the State financial system acceptable to the State Controller and the University.
The University is authorized by the State Controller as the custodian of the University's portion of the financial database on the state financial system. The University shall not grant any person access to financial data contained on the state financial system for general perusal, other than University employees or representatives for University Business purposes. Specific requests for query access to the financial database of the University's financial system shall be in accordance with the Colorado Open Records Act.
Procedure 1-3 DELEGATED AUTHORITY
As used herein, the Chief Executive Officer of the University is the University President, the Chief Financial Officer of the University is the Vice President for Budget and Finance, the Chief Procurement Officer is the Assistant Vice President in charge of procurement functions, and the University Controller is the Assistant Vice President responsible for the fiscal management of the University. All authority of the Chief Executive Officer described herein is delegated to the campus Chancellors for their respective campuses and may be further delegated in writing. All authority granted herein to the University Controller may be delegated by the University Controller in writing. These Procedures may only be waived or amended upon approval of the Chief Financial Officer of the University under these Procedures.
Procedure 1-4 FINANCIAL TRANSACTIONS AND INTERNAL CONTROLS
The University shall implement internal accounting and administrative controls that reasonably ensure that financial transactions are accurate, reliable, and conform to these Procedures prior to recording transactions on the University financial system and prior to making payment. The factors of risk, cost, and business requirements shall be considered when establishing these internal controls.
Procedure 1-5 REPORTING OF FRAUD, THEFT OR EMBEZZLEMENT
The University is responsible for the design and implementation of programs and controls to prevent, deter and detect fraud. Any suspected fraudulent misstatements of the Financial Statements shall be reported to the University Controller and the Director of Internal Audit. Any suspected theft or embezzlement of University funds or assets shall be immediately reported to the Department of Internal Audit in accordance with University policy on Fiscal Misconduct Reporting. Also, the results of any investigation or follow-up including corrective measures implemented to prevent or reduce the likelihood of future occurrences must be reported in writing to the University Controller in a timely manner.
Procedure 1-6 ACCOUNTABILITY AND CAPITALIZATION OF EQUIPMENT
The University is responsible for ensuring that all equipment acquired by the University is properly accounted for when acquired, inventoried and safeguarded throughout its useful life, and properly accounted for at the time of disposal. Items with a useful life of greater than one year purchased by the University shall be either capitalized or expensed in the fiscal year in which it was acquired, based on applicable capitalization thresholds.
Chapter 2: Disbursement
Revised July 1, 2011
FISCAL PROCEDURE NUMBER
- 2-1 Propriety of Expenditures
- 2-2 Commitment Vouchers
- 2-3 Receiving Reports
- 2-4 Purchase Discounts
- 2-5 Interest Payment on Delinquent Payables
- 2-6 Interagency Purchases and Payments
- 2-7 Official Functions and Training Functions
- 2-8 Miscellaneous Compensation and Other Benefits (Perquisites)
- 2-9 Moving and Relocation
Procedure 2-1 PROPRIETY OF EXPENDITURES
All expenditures by the University shall meet the following standards of propriety:
- Expenditures are for official University Business purposes only.
- Expenditures are reasonable and necessary under the circumstances.
Procedure 2-2 COMMITMENT VOUCHERS
- Use of Commitment Vouchers
- Dollar Limits and Requirements
- University Purchase Orders
- University Contracts
- After-the-Fact Purchases
- Advance Payments
- Vendor Agreements
- Purchase Order Terms and Conditions
1. USE OF COMMITMENT VOUCHERS
The University shall not disburse funds unless the disbursement is supported by a Commitment Voucher or Small Purchase Documentation. With respect to proposed expenditures, the University shall ensure that the Commitment Voucher:
- Expenditure is authorized by the appropriate departmental authorities and required approvals have been received;
- Expenditure is reasonable and necessary;
- Prices or rates are fair and reasonable;
- Expenditure amount is within the available unencumbered balance;
- Adequately defines the requirements, respective performance obligations of the parties, and pricing;
- Terms and conditions represent a commercially reasonable allocation of risks between the parties;
- Complies with applicable statutes, executive orders, University procedures and policies.
2. DOLLAR LIMITS AND REQUIREMENTS
|TYPE OF AGREEMENT||
$5,000 and less
Small Purchase Documentation or any Commitment Voucher
PO or University Contract
$5,000 and less
Small Purchase Documentation or any Commitment Voucher
Above $5,000, but less than or equal to $150,000
PO or University Contract
University Contract Create Encumbrance
Capital Construction / Controlled Maintenance
See Fiscal Procedure 4-1
Professional Services under CRS §24-30-1401, et seq., including architectural, engineering, land surveying, industrial hygienist, and landscape architect services
Any dollar amount
Real Property lease or License of land, buildings, or a portion thereof for term of more than 31 days
Any dollar amount
2.1 Protecting the University's Interests. University Contracts shall be used in situations in addition to those described in this Procedure if other Commitment Vouchers do not adequately protect the University's interests. Refer questions regarding the proper form of Commitment Voucher to the Chief Procurement Officer.
2.2 Exempt Disbursements. A Commitment Voucher is not required for the following types of disbursements regardless of the amount of funds disbursed:
- Calculated payments required under a program within the University (e.g., formula distributions, other distributions required by regulatory or statutory formulas);
- Financial aid or tuition assistance programs;
- Insurance purchases;
- Intra-University purchases;
- Moving expenses reimbursed to University employees (Fiscal Procedure 2-9);
- Payroll and related disbursements (withholding, authorized Benefits, etc.);
- Postal and other delivery charges, including messenger fees;
- University program payments to or on behalf of individuals qualified for the program's Benefits (e.g., scholarships);
- Subscriptions for journals, informational publications or similar materials (electronic or hard copy), which do not include services;
- Utility hook ups and line extensions performed by a utility company;
- Water, gas, electric, and customary local and long-distance telephone services, including pagers and cell phones, which are routinely purchased by the University; and
- Other disbursements approved in writing by the University Controller.
3. UNIVERSITY PURCHASE ORDERS
3.1 Standard Provisions. All Purchase Orders issued by the University shall include the University's standard Purchase Order Terms and Conditions, which may be found in Appendix II of this document.
3.2 Interagency Purchase Orders. In situations where the University is issuing a Purchase Order to another Agency or Institution of Higher Education, the University may change or delete any standard provision.
3.3 Revision of Standard Terms and Conditions. When issuing a Purchase Order to a Party other than another Agency or Institution of Higher Education, the Procurement Service Center may change or delete any standard Purchase Order provision , except that:
- No changes to the provisions governing Changes, Vendor Offset, Assignment and Successor, Independent Contractor, and Funds Availability may be made without the prior approval of the Chief Procurement Officer or University Controller; and
- No changes to the Choice of Law provision (except for silence as to governing law) may be made without written approval by a Reviewing Attorney and the campus chancellor or University President, as appropriate.
3.4 Services involving transfer of confidential information. Where Purchase Orders issued by the University involve the transfer of or access to confidential electronic information, University departmental personnel shall comply with applicable University policies related to confidential information and IT security and with applicable laws and regulations related to confidential information.
4. UNIVERSITY CONTRACTS
The University shall use a University Contract as the Commitment Voucher for all purchases or leases of goods and services, as required under Fiscal Procedure 3-1. University Contracts shall comply with requirements of Fiscal Procedure 3-1 and this Procedure.
5. AFTER-THE-FACT PURCHASES
An After-the-Fact Purchase occurs when liabilities are incurred or payments are made on the University's behalf without prior approval of a University Purchase Order or contract when a Purchase Order or contract is required.
5.1 Payment Prohibition. The University shall not make payments to a vendor when an After-the-Fact Purchase has occurred, unless the violation has been ratified as required in this procedure.
- After the Fact purchases of less than $50,000 must be ratified by the respective Campus Controller.
- After-the-Fact purchases of $50,000 or more must be ratified by the University Controller.
5.2 Personal Liability. Under CRS §24-30-202(3) any person(s) who incurs or orders an obligation or makes a payment which creates an After-the-Fact Purchase may be personally liable for such obligation, unless the After-the-Fact Purchase is ratified by the University Controller.
5.3 Internal Controls. The University shall maintain an adequate system of internal controls to identify After-the-Fact Purchases, to prevent or minimize such violations, and to implement the provisions of this section.
5.4 Ratification. The University Controller (or the Campus Controller, for amounts up to $50,000), in his or her sole discretion, may ratify the expenditure or obligation creating an After-the-Fact Purchase, if he or she finds all of the following:
- The prices or rates are fair and reasonable;
- The amount of the expenditure is within the unencumbered balance;
- The University department provides a written explanation in accordance with the applicable PSC Procedural Statement.
- The parties did not act in bad faith or in a fraudulent manner; and
- The violation is not repeated or part of a consistent pattern of After-the-Fact Purchases.
5.5 Exceptions. The following situations are not treated as After-the-Fact Purchases:
- Late renewal of a Commitment Voucher already in place from a previous period.
- Subcontracts executed in an office of contracts and grants.
- Commitment Vouchers between the University and an affiliate institution; refer to http://www.ucdenver.edu/academics/colleges/medicalschool/PaitientCare/Pages/PartnerHospital.aspx for list of affiliates. (University Physicians, Inc., a blended component of the University of Colorado Denver, is considered an affiliate under this Fiscal Procedure subsection regarding After-the-Fact Purchases.)
- Leases or Licenses of real property or University Contracts properly executed outside the Procurement Service Center
- Commitment Vouchers for insurance.
6. ADVANCE PAYMENTS
An Advance Payment is a payment made for goods or services prior to the receipt thereof. Refer to the Advance Payment policy at: https://content.cu.edu/psc/procedures/PPS/PPS-Advance_Payment_Vendors.pdf
When an emergency condition exists that prevents the use of a competitive procurement method, the University may conduct a procurement on an emergency basis. Refer to the University of Colorado Procurement Rules, Procurement Methods at: https://content.cu.edu/psc/purchasing/procurement_rules.htm
8. SUPPLIERS AGREEMENTS
A Vendor Agreement is any form of agreement provided by a vendor, including an on-line agreement, containing contractual provisions relating to the goods and/or services to be provided by such vendor.
8.1 Vendor Agreements less than the Commitment Voucher threshold may be signed by "authorized" department personnel without alteration.
8.2 For those Vendor Agreements at or above the Commitment Voucher threshold ($5,000 per 2-2.2 DOLLAR LIMITS AND REQUIREMENTS), the Procurement Service Center shall ensure the Vendor Agreement complies with the requirements of Fiscal Procedure 3-1.
9. PURCHASE ORDER TERMS AND CONDITIONS. See Appendix II.
Procedure2-3 RECEIVING REPORTS
Receiving reports, or other sufficient documentation, shall be prepared for all goods and services received, showing actual quantities, any unsatisfactory condition, and compliance with specifications, prior to processing a voucher for payment.
Exceptions to Procedure:
- A receiving report need not be prepared for personal service expenditures.
- When an adequate system of internal accounting and administrative controls exists to provide sufficient verification that goods or services were received, the University may not require a certified receiving report.
Procedure 2-4 PURCHASE DISCOUNTS
Payments shall be processed in a timely manner and made within the allowable discount period to ensure the University takes advantage of purchase discounts.
Procedure 2-5 INTEREST PAYMENT ON DELINQUENT PAYABLES
The University shall process invoices and other notices of liability as efficiently as possible in order to ensure payment in accordance with contractual or invoice terms, and in the absence of such terms, as soon as possible, or in accordance with statutory provisions. A Delinquent Payable shall be assessed interest at the applicable statutory rate.
All written contracts and Purchase Orders shall provide for a reasonable time of payment considering the nature of the goods or services provided and review and approval required for payment. If no time for payment has been provided for in writing, interest on the unpaid balance shall be calculated beginning with the forty-sixth day after the liability for such payment arises under this Fiscal Procedure. Interest shall be assessed at the applicable statutory rate or as stated in the contract or Purchase Order and, if higher, approved by the University Controller.
Payment of the interest liability incurred under this fiscal Procedure shall be processed on a separate voucher. The voucher shall be supported by a written claim, prepared by the University of Colorado or the vendor, referencing the Delinquent payment, the number of days of interest to be paid, and the applicable interest rate. Such claims may be modified by the University to adjust payments to include such items as additional interest due for time required to process interest payments.
Procedure 2-6 INTERAGENCY PURCHASES AND PAYMENTS
The University shall make payment for purchases of goods and services from another state Agency or Institution of Higher Education within 30 days after receipt of a valid invoice.
Disputes Arising from Interagency Purchases
If a dispute arises as a result of an Interagency Purchase, the following steps will be used to resolve the dispute:
- The University, if disputing the charge shall notify the state Agency or Institution of Higher Education providing the goods or services and attempt to resolve the dispute. If necessary, the chief executive officers, or designated authorities of these Agencies involved shall assist in the resolution.
- If the University and the state Agencies and/or Institutions of Higher Education involved cannot reach a satisfactory resolution, the University, if disputing the charge may, within 30 days of the date of the last meeting held to resolve the dispute, petition the State Controller to resolve the dispute.
- If the State Controller is petitioned to resolve the dispute, the decision of the State Controller will be rendered within a reasonable time and be final and binding on all parties concerned.
Procedure 2-7 OFFICIAL FUNCTIONS AND TRAINING FUNCTIONS
Official Functions and Training Functions shall be held to achieve program objectives and shall be limited to reasonable and actual Costs. The attendance of University employees at Official Functions shall be kept to a minimum and shall include only those individuals directly related to the purpose of the function. Expenditures shall be kept to a minimum as they have the potential of being perceived to be for personal benefit and an abuse of public funds. Expenditures incurred for Official Functions shall be approved by a departmental approver or by the University Controller.
Procedure2-8 MISCELLANEOUS COMPENSATION AND OTHER BENEFITS (PERQUISITES)
- Clean Air Transit Benefit for University Employees
- Events Sponsored by the University
- Instructional Courses and Job-Related Training
- University-Owned Housing Provided to State Employees
- Temporary Housing Provided to Visitors and Guests
- Uniforms and Maintenance of Uniforms
- Bookstore Discounts
- Authorized Commuting
- Exceptions to Procedure
An employee of the University shall not receive any type of Benefit by virtue of their position unless such Benefit is provided under this Procedure. An employee shall not have the authority to grant any perquisites, nor shall any employee receive any perquisite except as provided by state statute or under this Procedure. Monetary allowances shall not be given to employees in lieu of Benefits, except as provided by statute or approved by the University Controller. Where University policies and state statutes provide allowances for maintenance and ordinary expenses incurred in the performance of duty, it is the responsibility of the University Controller to establish specific expenses that are covered by the allowance so that the same expenses are not also directly reimbursed.
Miscellaneous Compensation and Other Benefits (Perquisites)
University officials and employees may be asked to address an audience for which they receive an honorarium. If such speaking engagements occur outside normal working hours, or their normal work load, or while on annual leave, and there is no cost to the University for travel expenses, the official or employee may retain the honorarium. However, if the engagement occurs during normal working hours, or within their normal workload, as any other duty, the honorarium is to be turned over to the University. Any travel expenses related to the engagement would then be valid expenses for reimbursement by the University.
2. Clean Air Transit Benefit for University Employees:
To promote the University's mission of mitigating traffic congestion and creating clean air solutions, and to help equalize Benefits for those University employees that do not receive free parking, the Chief Executive Officer may offer a clean air transit Benefit to University employees. If offered, the Benefit shall be offered on an equal basis to all permanent full-time employees within the geographic area served by the mass transit provider and also, if deemed appropriate by the University, may be offered on an equal basis to all part-time employees within the same geographic area. Further, where the University has employees in different locations, the Benefit shall be offered based upon the applicable price structure of the mass transit provider for each of those specific locations. The clean air transit Benefit may be the total cost of using mass transit or a portion of the total cost.
Prior to offering the Benefit, the University shall develop an implementation plan. The plan shall contain the number of employees expected to receive the Benefit, the estimated cost, if any, to be paid by the employee, and the estimated fiscal impact on the University. Any contract between the University and the mass transit provider shall be approved by the University Controller.
The University, when providing the clean air transit Benefit for their employees, shall maintain records showing the actual number of employees receiving the Benefit, the actual cost, if any, paid by the employee and the cost to the University for providing the Benefit.
3. Events Sponsored by the University:
A reasonable discount may be offered by the University to officials and employees to improve attendance or participation in University-sponsored events. Examples included discounts on admission to athletic games and cultural, educational, recreational, or other events.
Such discounts shall generally be offered on a first-come, first-served basis, except that the University may reserve a specified and reasonable number of admissions to particular events to be distributed on a targeted basis for the purpose of public relations or alumni relations, or for the purpose of student or employee recruitment. The Chief Executive Officer of the University shall approve in writing all plans for discounted admissions.
4. Instructional Courses and Job-Related Training
Job related and career enhancement courses may be provided in accordance with applicable University policies or as authorized by a relevant department head to University employees at no cost or at a reduced cost as authorized by the University.
5. University-Owned Housing Provided to University Employees:
The University may provide housing for a University employee where University-owned facilities are available and it is in the best interest of the University. The rent charged shall be based on the economic rent determined by the University and shall take into consideration any limitations placed on the employee as a condition of employment, location of the employee's work place, and other factors deemed appropriate by the University.
An Economic Rent Study shall be conducted prior to the house or dwelling being offered for rent to a University employee. A new Economic Rent Study shall be conducted on or before July 1, every three years thereafter. The rent charged shall be reviewed and if necessary, adjusted on an annual basis. The rent charged for each house or dwelling shall be approved in writing on July 1 of each year by the Chief Executive Officer.
The University shall execute a rental agreement with the University employee and make payroll deductions for the rent. If the rented unit does not have separate utility meters, the University shall also make payroll deductions for the estimated utility Costs. The University shall maintain adequate documentation to support the rent and utility Costs assessed for each house or dwelling.
6. Temporary Housing Provided to Visitors and Guests:
Where space is available, temporary housing may be provided to visitors and guests of the University in accordance with applicable University policy, if any. The charge for such accommodations shall be set at an amount which will at least recover all Direct and Indirect Costs and be reasonable in comparison to the charge for similar housing, if such housing is available.
7. Uniforms and Maintenance of Uniforms:
Uniforms required to be worn by University employees and the necessary maintenance of these uniforms may be provided to the employee by the University at no charge, or at a reduced charge, or through a uniform allowance.
8. Bookstore Discounts:
Discounts may be authorized by the University for faculty members and employees for purchases at its bookstores.
9. Authorized Commuting
University-owned motor vehicles may be used for taxable commuting in accordance with applicable University policies. Imputed income may be assessed and reported for the use of a University-owned vehicle in accordance with applicable Internal Revenue Service Code and regulations.
Exceptions to Procedure:
- Any housing or housing allowance established pursuant to an employment contract approved by the Board of Regents shall not be governed by this Procedure.
- Self-liquidating facilities such as faculty apartments and student housing or trailer houses used as temporary housing at remote work place stations are exempted from this Procedure.
- Any voluntary separation incentive plans established for University employees shall be governed by applicable state statute.
Procedure 2-9 MOVING AND RELOCATION
Moving and relocation expenses for employees exempt from the State Personnel System are allowable in accordance with applicable University policies. Moving and relocation expenses for employees in the State Personnel System are only allowable as expressly provided in the State Personnel Rules.
Chapter 3: Contracts
Revised July 1, 2011
- Content of University Contracts
- Approved University Contract Forms
- University Contract Approvals
- University Contract Legal Review
- University Controller Review and Approval
- Independent Contractor Relationship
- Exceptions to Fiscal Procedure 3-1
- Special Provisions
1.1 Expenditure Contracts
- Capital Construction contracts;
- Employee Voluntary Separation Agreements;
- Fund Management Services agreements;
- Goods Contracts;
- Information Technology Contracts;
- Investment Advisory Services agreements;
- Personal property leases/Licenses - University as lessee or licensee;
- Personal Services Contracts;
- Personal services review exempted contracts;
- Professional Services Contracts;
- Real Property Leases/ Licenses - University as tenant or licensee;
- Real Property Purchase Agreements - University as buyer; and
- Settlement Agreements.
1.2 Revenue Contracts
- Franchise Agreements;
- Real Property Leases/Licenses - University as landlord or licensor; and
- Real Property Purchase Agreements - University as seller.
1.3 Other Contract Types
- Debt Contracts;
- Grant Contracts;
- Interagency Agreements;
- Intergovernmental Agreements;
- Loan Contracts;
- No cost/non cash contracts;
- Price Agreements;
- Sale of Securities agreements; and
- Sponsored Project Agreements.
A University Contract that meets the form, content and approval requirements described in this Chapter 3 shall constitute a Commitment Voucher for purposes of University Fiscal Procedure 2-2.
3. CONTENT OF UNIVERSITY CONTRACTS
3.1 Expenditure Contracts, Debt Contracts and Price Agreements. The form and content requirements of this §3.1. shall apply to all Expenditure Contracts, Debt Contracts and Price Agreements except as limited or excluded herein. This section shall not apply to Real Property Leases, Settlement Agreements, Voluntary Separation Agreements, Insurance Coverage Agreements or Health Benefits Agreements.
3.1.1 General Provisions. The following General Provisions shall be included in all contracts covered by this §3.1:
- Identification of the parties;
- Statement of Work;
- Payment terms, including maximum dollar amount;
- Performance period;
- General terms and conditions;
- Special Provisions (see Appendix to this Fiscal Procedure);
- Signature page; and
- Statement that the contract shall not be valid until it has been approved by the University Controller.
3.1.2 Real Property Purchases (University as Buyer), Leases (University as Tenant) and Licenses (University as licensee). University Contracts for the purchase lease or License of real property shall contain the following provisions:
220.127.116.11. If the University is the buyer, tenant or licensee, the contract shall include the following Special Provisions:
- University Controller's Approval;
- Funds Availability; and
- Vendor Offset.
18.104.22.168. If the University is the buyer, tenant or licensee, the contract may include the other Special Provisions, at the discretion of the University.
22.214.171.124. If the University is the tenant or licensee, the contract shall include provisions specifying cancellation rights, if the real property leased or licensed is destroyed by fire and/or becomes subject to eminent domain.
3.1.3 Capital Construction Contracts. See Fiscal Procedure 4-1, “Capital Construction Administration.” See also approved contract forms, available on the website of the Office of the State Architect.
3.2 Content for other Contract Types
3.2.1 Interagency Agreements. Each Interagency Agreement shall include, at a minimum, the following elements:
- Identification of the parties;
- Statement of work;
- Statement of consideration (if applicable);
- Payment and other performance terms; and
- Definition of breach and remedies.
3.2.2 Intergovernmental Agreements
126.96.36.199 Special Provisions. The University, when contracting with governmental entities outside of the University, shall not agree to modify the Special Provision requiring the governance of Colorado law, but, if requested, may agree to strike the Choice of Law Special Provision, resulting in contractual silence as to governing law. Any other change to the Choice of Law Special Provision shall require the prior written approval of a Reviewing Attorney and the campus Chancellor or delegate; and the University President, as appropriate.
188.8.131.52 Sponsored Project Agreements. See applicable University policies governing sponsored projects.
3.3 Provisions for All Contract Types:
3.3.1 Indemnification by the University Prohibited. Unless specifically authorized by statute, the University shall not indemnify and/or hold harmless another Party against any liability incurred as a result of the acts or omissions of the University or its officers, employees or agents. See Constitution of Colorado, Article V, §33 and Article XI, §1.
3.3.2 Limitation of Liability:
184.108.40.206 Limitation of Vendor's Liability - Bodily Injury and Property Damage. The University shall not limit the vendor's liability for claims or damages arising out of bodily injury (including death) and damage to tangible property, if tangible risk is inherent in the nature of the contract.
220.127.116.11 Limitation of Vendor's Liability - Other Types of Damages. The University may accept commercially reasonable limitations of liability and/or remedies provisions, i.e., the exclusion of consequential damages.
4. APPROVED UNIVERSITY CONTRACT FORMS
Except as set forth below, all University Expenditure Contracts shall be in a form approved by the Chief Procurement Officer, who may approve additional forms at his or her sole discretion.
4.1 Capital Construction Contracts - See Fiscal Procedure 4-1, “Capital Construction Administration”. See also approved contract forms available on the website of the Office of the State Architect.
4.2 Model Contracts - The Chief Procurement Officer, in consultation with the Office of University Counsel, may adopt model contracts, as appropriate. Model contracts for small dollar situations, such as performance agreements, shall not require Special Provisions or a University Controller signature unless they exceed the commitment voucher level described in Fiscal Procedure 2-2.
4.3 Contract Amendments - Modifications to a University Contract are generally made by a formal written amendment signed by the parties to the contract,. In the situation where a contract has been established with an initial term followed by renewal terms, the renewal extension as well as changes in annual dollar amounts, rates, and routine changes, such as changes in scope, may be made by issuance of a Purchase Order if allowed in the contract. Except in the case of contracts with renewals as described in the previous sentence, a contract cannot be amended or extended (revived) after the contract term has expired.
4.4 Real Property Lease Agreements- Lease agreements involving real property shall be in a form approved by and set forth on the website of the Office of the State Architect, except for leases exempted by statute (see
§5.8 of this Fiscal Procedure).
4.5 Special Provisions - All University (a) Expenditure Contracts and (b) Grant Contracts where the University is the grantor and provides funds from University, federal government, or other sources to the other Party, (c) Intergovernmental Agreements where the University provides funds to another governmental entity, (d) Debt Contracts, (e) Price Agreements, and (f) Capital Construction Contracts in excess of the small dollar purchase amount (see Fiscal Procedure 2-2) shall contain the Special Provisions. See §12 to this Fiscal Procedure. No modification shall be made to a Special Provision without the prior written approval of the University Controller, or as authorized by the University Controller in consultation with a Reviewing Attorney, except as otherwise expressly provided herein. The following changes require no additional approval by the University Controller or a Reviewing Attorney
4.5.1 Changes in the nature of clarifications such as the term of the University Fiscal Year runs from July 1 to June 30;
4.5.2 Silence as to governing law; or
4.5.3 Deletion of Special Provisions 10 or 11 when the bolded applicability language indicates that the provisions don't apply based on the nature of the service or good being purchased.
4.6 Other contract forms - Any other contract form which may be approved by the Chief Procurement Officer from time-to-time.
5. UNIVERSITY CONTRACT APPROVALS
The President has final authority for all University Contracts. No person may enter into a University Contract on behalf of the University without delegation from the Chief Executive Officer and any University Contract executed without proper delegation shall be deemed null and void unless it is ratified. The University shall obtain all required approvals and signatures and retain documentation thereof in its files for any period specified in the applicable University document retention policy.
No Expenditure Contract is valid unless it has been approved as required by this §5. Any person who causes a contract to be executed in contravention to this §5may be personally liable for any obligation incurred thereby. CRS §24-30-202(3).
Additional approvals are required as follows:
5.1 Capital Construction and Controlled Maintenance Contracts require the approval of the State Architect or delegate, unless otherwise exempted by statute or waived by the State Architect. See CRS §24-30-1303(1)(d).
5.3 Contingency-Based Contracts require the approval of the University Controller and any other approvals deemed necessary by the University Controller. See C.R.S. §24-17-204.
5.4 Debt Collection Services Contracts require the approval of the University Controller. See CRS §24-30-202.4.
5.6 Legal Services Contracts require the approval of the Vice President and University Counsel, on behalf of the State Attorney General or delegate.
5.7 Personal Services Contractsrequire the approval of the Campus Human Resources Director as provided by section 24-50-501, et seq., C.R.S.
5.8 Real Property Contracts, including leases where the University is the tenant, easements, and rights-of-way contracts, require the approval of the State Architect/Director of Real Estate Programs, Department of Personnel and Administration, or delegate, unless otherwise exempted by statute.
5.9 Utility Cost-Savings Contracts require the approval of the State Personnel Director or delegate. See CRS §24-30-2003(1)(b).
6. UNIVERSITY CONTRACT LEGAL REVIEW
University Contracts with a value of greater than $150,000 per year shall be subject to legal review by and approval of a Reviewing Attorney.
6.1 Mandatory Review. Legal review shall include, without limitation, scrutiny of contract provisions to ensure that the following requirements are met:
- Compliance with the United States and Colorado Constitutions, federal and state statutes, state regulations, and applicable University policies and procedures;
- Authority of the University representative/s;
- All essential elements of a legally binding contract;
- A statement of work or comparable provisions and business or commercial terms, which are sufficiently clear and definite, under the applicable circumstances, to be enforceable;
- Required signatures; and
6.2 Discretionary Review. At the discretion of the University Controller, legal review also may include:
- Review and analysis of the significant risks and issues of a particular transaction;
- Inquiry into the availability of specific remedies; and
- Review of compliance with grant conditions, federal funding requirements, and required assurances, where provided by the University.
7. UNIVERSITY CONTROLLER REVIEW AND APPROVAL
University Controller review and approval is required for all Expenditure Contracts, Intergovernmental Agreements and Price Agreements greater than $50,000 per year, except as expressly provided in these Fiscal Procedures (see Fiscal Procedure 2-2). The University Controller will review other contracts as requested. The University Controller may delegate in writing authority to approve University Contracts as required by this §7. Any such delegation is personal to the delegee and may not be further delegated.
7.1 Process for Review, Approval, and Signature
7.1.1 Review The University Controller shall review Expenditure Contracts greater than $50,000 per year to determine if the Expenditure:
- Is authorized by the fund to which it will be charged;
- Does not exceed the unencumbered balance of the fund;
- Complies with all applicable constitutional and statutory provisions, and University policies; and
- Is encumbered; and
18.104.22.168 Prices or rates are fair and reasonable and in accordance with state law and administrative procedures;
22.214.171.124 Form and Content of the contract are sufficient and appropriate for the parties and subject matter under applicable state and federal laws, and University policies; and
126.96.36.199 Risk of the contract is outweighed by the contract's benefits.
7.1.2 Approval and Signature After review, the University Controller shall approve or disapprove the University Expenditure Contract. If approved, the University Controller shall evidence such approval by signing the contract.
7.2 Contracts Not Approved by University Controller
7.2.1 Not Binding. An Expenditure Contract is not binding on or enforceable against the University unless and until it is signed by the University Controller.
7.2.2 Null and Void. Any Expenditure Contract disapproved by the University Controller is null and void.
9. INDEPENDENT CONTRACTOR RELATIONSHIP
The University shall take care in maintaining the distinctions between services performed by persons who are employees of the University and services performed by independent contractors, and their employees, agents and representatives, pursuant to a Personal Services Contract. The University's responsibilities and obligations with respect to employee/employer arrangements differ from its responsibilities and obligations with respect to independent contractors. The University may be liable to a Party for the actions of its employees, whereas independent contractors and their employees, agents and representatives are liable for their own actions. The University is responsible for social security taxes and Benefits for its employees, whereas independent contractors are responsible for social security taxes and Benefits of their employees. The University shall follow guidelines issued by the Internal Revenue Service, the Colorado Division of Human Resources, Colorado statutes, and opinions of the State Attorney General in determining whether an individual is an employee or independent contractor.
10.1 Personal Services Contracts. This Fiscal Procedure does not apply to University Contracts for personal services paid through an authorized University payroll system, which are exempted from the State Personnel System pursuant to CRS §24-50-135.
11. SPECIAL PROVISIONS
These Special Provisions apply to all contracts except where noted in italics.
- CONTROLLER'S APPROVAL. This contract shall not be valid until it has been approved by the University Controller.
- FUND AVAILABILITY. Financial obligations of the University payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available.
- GOVERNMENTAL IMMUNITY. No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, of the Colorado Governmental Immunity Act, CRS §24-10-101 et seq., or the Federal Tort Claims Act, 28 U.S.C. §§1346(b) and 2671 et seq., as applicable now or hereafter amended.
- INDEPENDENT CONTRACTOR. Contractor shall perform its duties hereunder as an independent contractor and not as an employee. Neither Contractor nor any agent or employee of Contractor shall be deemed to be an agent or employee of the University. Contractor and its employees and agents are not entitled to unemployment insurance or workers compensation Benefits through the University and the University shall not pay for or otherwise provide such coverage for Contractor or any of its agents or employees. Unemployment insurance Benefits will be available to Contractor and its employees and agents only if such coverage is made available by Contractor or a third Party. Contractor shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this contract. Contractor shall not have authorization, express or implied, to bind the University to any agreement, liability or understanding, except as expressly set forth herein. Contractor shall (a) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (b) provide proof thereof when requested by the University, and (c) be solely responsible for its acts and those of its employees and agents.
- COMPLIANCE WITH LAW. Contractor shall strictly comply with all applicable federal and state laws, University policies, procedures, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices.
- CHOICE OF LAW. Colorado law, and procedures and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this contract. Any provision included or incorporated herein by reference which conflicts with said laws, procedures, and regulations shall be null and void. Any provision incorporated herein by reference which purports to negate this or any other Special Provision in whole or in part shall not be valid or enforceable or available in any action at law, whether by way of complaint, defense, or otherwise. Any provision rendered null and void by the operation of this provision shall not invalidate the remainder of this contract, to the extent capable of execution.
- BINDING ARBITRATION PROHIBITED. The University of Colorado does not agree to binding arbitration by any extra-judicial body or person. Any provision to the contrary in this contact or incorporated herein by reference shall be null and void.
- EMPLOYEE FINANCIAL INTEREST/CONFLICT OF INTEREST. CRS §§24-18-201 and 24-50-507. The signatories aver that to their knowledge, no employee of the University has any personal or beneficial interest whatsoever in the service or property described in this contract. Contractor has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of Contractor's services and Contractor shall not employ any person having such known interests.
- VENDOR OFFSET. [Not Applicable to Intergovernmental Agreements] If required by CRS §24-30-202.4 (3.5), the University Controller may withhold payment under the state's vendor offset intercept system for debts owed for: (a) unpaid child support debts or child support arrearages; (b) unpaid balances of tax, accrued interest, or other charges specified in CRS §39-21-101, et seq.; (c) unpaid loans due to the Student Loan Division of the Department of Higher Education; (d) amounts required to be paid to the Unemployment Compensation Fund; and (e) other unpaid debts owing to the state as a result of final Agency determination or judicial action.
- PUBLIC CONTRACTS FOR SERVICES. CRS §8-17.5-101. [Not Applicable to agreements relating to the offer, issuance, or Sale of Securities, Investment Advisory Services or Fund Management Services, sponsored projects, Intergovernmental Agreements, or information technology services or products and services] Contractor certifies, warrants, and agrees that it does not knowingly employ or contract with an illegal alien who will perform work under this contract and will confirm the employment eligibility of all employees who are newly hired for employment in the United States to perform work under this contract, through participation in the E-Verify Program or the Department program established pursuant to CRS §8-17.5-102(5)(c), Contractor shall not knowingly employ or contract with an illegal alien to perform work under this contract or enter into a contract with a subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. Contractor (a) shall not use E-Verify Program or Department program procedures to undertake pre-employment screening of job applicants while this contract is being performed, (b) shall notify the subcontractor and the University within three days if Contractor has actual knowledge that a subcontractor is employing or contracting with an illegal alien for work under this contract, (c) shall terminate the subcontract if a subcontractor does not stop employing or contracting with the illegal alien within three days of receiving the notice, and (d) shall comply with reasonable requests made in the course of an investigation, undertaken pursuant to CRS §8-17.5-102(5), by the Colorado Department of Labor and Employment. If Contractor participates in the Department program, Contractor shall deliver to the University a written, notarized affirmation, affirming that Contractor has examined the legal work status of such employee, and shall comply with all of the other requirements of the Department program. If Contractor fails to comply with any requirement of this provision or CRS §8-17.5-101 et seq., the University may terminate this contract for breach and, if so terminated, Contractor shall be liable for damages.
- PUBLIC CONTRACTS WITH NATURAL PERSONS. CRS §24-76.5-101. Contractor, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that he or she (a) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (b) shall comply with the provisions of CRS §24-76.5-101 et seq., and (c) has produced one form of identification required by CRS §24-76.5-103 prior to the effective date of this contract.
Chapter 4: Projects
FISCAL PROCEDURE NUMBER
- 4-1 Capital Construction Administration
- 4-2 Capital Construction Projects
- 4-3 Capital Construction Project Retainage
Procedure 4-1 CAPITAL CONSTRUCTION ADMINISTRATION
The State Capital Construction Fund was established to provide a source for appropriations to State Agencies and Institutions of Higher Education to acquire and maintain their physical facilities. The fund has special requirements that must be followed by State Agencies and Institutions of Higher Education receiving appropriations from the fund.
Capital Construction Contracts
- .01 Formal contracts shall be required when expending funds in excess of $100,000 appropriated for Emergency maintenance projects including construction services or Installation of fixed equipment unless previous approval has been obtained from the Director of the State Buildings Program to use a Purchase Order. Purchases of fixed equipment that do not require Installation services may be purchased with a University Purchase Order. A Purchase Order may be used for construction not exceeding $100,000 if the Director of State Buildings Program records written approval on the face of the Purchase Order. Such approval by the Director of State Buildings Program shall require compliance with approved building codes and signify compliance with bonding requirements in C.R.S. 38-26-106 and 24-105-201. In addition, the Purchase Order shall be bilateral requiring written acknowledgment of acceptance by the contractor prior to the beginning of work.
- .02 Capital Construction Fund contracts shall follow the contract routing procedures established by the University Controller's Office.
Procedure 4-2 CAPITAL CONSTRUCTION PROJECTS
All funds appropriated for Capital Construction Projects shall be used for their intended purpose. The University shall not use the Capital Construction Fund to pay or reimburse University employees for construction management, administrative activities, direct labor performed, or any other expense outside the scope of the Capital Construction or Controlled Maintenance Project.
Contracts funded by the State Capital Construction Fund shall be executed and the funds encumbered within the time limits established by 24-30-1404, C.R.S. If the University determines that the deadlines imposed by the statute cannot be met, the University may request the Capital Development Committee to recommend to the State Controller that the deadline be waived. The State Controller may grant the waiver request.
Procedure 4-3 CAPITAL CONSTRUCTION PROJECT RETAINAGE
The University shall withhold retainage for all Capital Construction and Controlled Maintenance Projects where the total amount of the contract exceeds the limit established by 24-91-103, C.R.S. The retainage shall be in the form of monies withheld from the contractor or in any other form authorized by statute and acceptable to the University. The retainage shall be released by the University only when the contract has been satisfactorily completed and accepted, the University has proof of publication of "Notice of Final Settlement", in accordance with 38-26-107, C.R.S., and there are no outstanding claims against the project.
Chapter 5: Travel
Policies, procedures, and forms related to official university travel (including authorization and reimbursement) are established by the Procurement Service Center (PSC) and are found on the PSC web site.
Chapter 6: Cash
Pursuant to C.R.S. §23-20-113, and in accordance with Article VIII, §5(2) of the Colorado Constitution, the University Treasurer is responsible for the appropriations to and funds of the University of Colorado. Policies and practices related to cash have been established by the Office of the University Treasurer in accordance with the Laws and Policies of the Board of Regents. Accordingly, these Procedures do not address this area.
Chapter 7: Budget
In accordance with Article VIII, §5(2) of the Colorado Constitution, the Board of Regents of the University via the University Treasurer has general supervision and exclusive control of all funds of and appropriations to the University. The Chief Financial Officer of the University has established policies and practices related to the University budget in accordance with the Laws and Policies of the Board. Accordingly, these Procedures do not address this area.
Chapter 8: Reporting
Annual Financial Statements prepared by the University shall be submitted to and approved by the Regents Audit Committee. Unless otherwise provided by this fiscal Procedure, Financial Statements shall be prepared by the Office of the University Controller in accordance with generally accepted accounting principles and shall reflect the financial activities of University.
The University or its contractor may provide draft Financial Statements to the Office of the State Auditor to facilitate a timely and efficient audit. Draft Financial Statements and accountant work papers are not public records.
State-Generated Financial Statements for the University
The state financial system generates a balance sheet and an income statement for the University utilizing the COFRS system. These system generated statements are considered acceptable Financial Statements for any purposes of the State Controller. The University shall continue to provide information to the State Controller, including exhibit information required in the fiscal year-end closing instructions issued by the State Controller and any post-closing adjustments, as necessary for the State Controller to the meet the obligations set forth in C.R.S. §§24-30-202(11), 24-17-102 and 24-20-204, as described in C.R.S. §24-30-202(13).
Required Reconciliation to the State Financial System
Financial Statements prepared by the University shall be reconciled to the state financial system. A copy of this reconciliation shall be provided to the State Controller.
The University shall prepare quarterly Financial Reports. Quarterly Financial Reports shall be available for use by the Regents Audit Committee and others for planning purposes and decision making.
.01 The University's financial system shall be the system used to record the University's financial information and the system from which standard reports shall be prepared.
.02 The University Controller shall determine what is reasonable and necessary to be included in the report, the funds which are to be included, and the date each report is due.
Each quarterly reporting period shall be regarded as an integral part of the fiscal year. Revenues shall be allocated to quarterly reporting periods in accordance with generally accepted accounting principles. Expenditures such as salaries, operating expenditures and accruals of expenditures shall be allocated to interim periods in which they are incurred or, where appropriate, allocated among quarterly periods on the basis of Benefits received or time expended. Arbitrary assignment to a quarterly period shall not be allowed.
The University shall prepare a documented Indirect Cost Allocation or Indirect Cost rate proposal/plan that assigns Indirect Costs to their programs, activities, and services relative to their benefits received from the activities whose Costs are being allocated or on another Equitable Relationship. The allocated Costs shall be used as the basis of recovering Indirect Costs from the federal government, determining fees for program services and activities, and assessing the cost effectiveness of a program or activity.
The University shall use a cost allocation methodology that assures that the allocations made through the methodology represent a service/benefit or other Equitable Relationship between the Costs of the services provided and the value of the benefits received by users of the services.
The University shall periodically review its cost allocation methodology to ensure that the methodology represents the best allocation attainable. Allocations should be reconciled to actual expenditures to ensure all Costs have been captured and allocated.
Indirect Cost Allocations Made for Federal Indirect Cost Recovery Purposes
When the University receives Federal Funds, it shall prepare a federal Indirect Cost rate proposal/plan in accordance with OMB A-21 and sign an Indirect Cost rate or allocation methodology agreement with the federal government. The University's federal Indirect Cost rate proposal/plan shall include all Costs allocated to the University in the federal Indirect Cost Allocation plan and other approved cost allocation plans.
Grants, contracts, and other agreements that do not allow for the recovery of the Full Cost incurred under the agreement should be closely evaluated to determine if their acceptance is cost effective and in the best interest of the University.
Accounting for Indirect Cost Recoveries
Indirect Cost recoveries shall be recorded when earned in separately identifiable accounts as determined by the University Controller.
Revenues from Indirect Cost recoveries shall not be deferred at the end of the fiscal year.
Chapter 9: Payroll
The University Payroll and Benefits Services Office has adopted policies and practices related to financial reporting and, accordingly, these Procedures do not address this area.
Appendix I - Fiscal Procedures Glossary
Advance Payment - A payment made for goods or services prior to the receipt thereof.
Advice of Employment - A document that includes an offer of employment.
After-the-Fact Purchase - An After-the-Fact Purchase occurs when liabilities are incurred or payments are made on the University's behalf before a University Purchase Order or contract has been issued or executed by a Delegated Officer when required under University policy.
Agency - An executive department of the State of Colorado, or any subdivisions thereof.
Approving Authority - An individual who has authority to approve travel for University Business and related matters.
Benefits - Any pecuniary or material advantage provided by the University to a University employee other than salary, leave, incentives, awards, retirement Benefits, insurance Benefits, and travel and non-travel related reimbursements. Incentive awards, salary increases, fringe Benefits established pursuant to CRS 24-50-104(8) and (9) are not considered Benefits under this Procedure.
Capital Construction - A Capital Construction Project or Controlled Maintenance Project funded wholly or in part by the state Capital Construction Fund (CRS §24-75-302) or any cash resources of the University.
Capital Construction Fund - A fund created by statute for the purpose of purchasing and/or maintaining land, buildings and equipment and for constructing buildings for use by the state.
Capital Construction Project - A construction project funded wholly or in part by funds from the state Capital Construction Fund.
Commitment Voucher - A document, the form of which has been approved by the Chief Procurement Officer of the University, evidencing the following:
- A description of goods or services being purchased or other reasons for the disbursement of funds;
- The amount to be paid;
- That the obligation of the University is being charged to the appropriate account; and That procurement requirements have been satisfied.
- Commitment Vouchers include any approved form of Purchase Order, University Contract, travel authorization, Advice of Employment, License agreement, parking License agreement, and other written authorizations for disbursement which satisfy the requirements of subsection 2.4.1 (Elements) of Fiscal Procedure 2-2
Procurement cards are not Commitment Vouchers. Procurement cards are a method of payment, not a method of procurement. Purchases made with a procurement card also require the use of an appropriate Commitment Voucher or Small Purchase Documentation.
Contingency-Based Contract - A contract for services between the University and a vendor where:
- All or part of the vendor's compensation is computed by multiplying a stated percentage by the measurable savings in the University's expenditures or Costs of operation attributable to the vendor's services under the contract; and
- The Contingency-Based Contract is not specifically authorized by statute. See CRS §24-17-203.
- Contingent fees are prohibited in certain Professional Services Contracts. See CRS §24-30-1404(4).
Controlled Maintenance Project - A maintenance project funded wholly or in part by funds from the state Capital Construction Fund.
CONUS - The 48 continental United States, including the District of Columbia.
Cost Objective - A project, grant, program, or other activity to which Costs are being allocated.
Cost Pool - An aggregation of Costs for subsequent allocation to another Cost Pool or a Cost Objective.
Costs - All expenses incurred by a project or program, either directly or indirectly. Costs include such items as labor, material, supplies, rent or building charges, operating expenses, and administrative expenses that might properly be assigned to the project or program.
Debt Contract - A financial obligation reported in the state's Comprehensive Annual Financial Report under standards promulgated by the Governmental Accounting Standards Board. Debt Contracts include without limitation contracts for revenue bonds, tax revenue anticipation notes, lease purchases, certificates of participation, and other multi-year transactions with outside third Party facilitators, issued or otherwise incurred by the University.
Delegated Officer - A University officer delegated to execute certain contracts on behalf of the University.
Delinquent - A Payable is Delinquent if a disbursement is not made within forty-five days after a liability arises, unless the time of payment has been otherwise provided in the contract or Purchase Order. A Payable being disputed by a vendor or the University shall become Delinquent if a disbursement is not made within forty-five days after resolution of the dispute.
Direct Cost - A cost incurred by a state Agency that exclusively benefits a specific Cost Objective and that may be readily identified with the same specific Cost Objective.
Economic Rent Study - A study conducted by the University to determine the rent to be charged for a University-owned house or dwelling. The purpose of the study is to determine the rental rate the house or dwelling would command if available on the open market.
Emergency - An unexpected event creating an immediate threat to the public health, welfare, or safety, the functioning of the University, or the preservation or protection of property, which requires an immediate response.
Employee Voluntary Separation Agreement - A contract between the University and a University employee setting forth the terms of the employee's voluntary separation from University service.
Encumbrance - An amount reserved on the University financial system or accounting system to reflect a formal obligation of the University. When required by University accounting procedures, the University shall encumber funds prior to recording expenditures and disbursing funds.
Equitable Relationship - A relationship that is based on cause and effect or logic and reason.
Expenditure Contract - A contract between the University and another Party resulting in an expenditure of funds by the University, directly or indirectly, or the creation of a payment obligation on the part of the University. Expenditure Contracts do not include transactions in which an expenditure of University funds is supported by Small Purchase Documentation pursuant to Fiscal Procedure 2-2.
- Expenses Incurred for the Benefit of the University- Expenses incurred that enable a University employee or University official to perform assigned duties or enable the University to carry out responsibilities required by law.
Federal Funds - Funds received by the state either directly or indirectly from the federal government.
Financial Reports - Financial information compiled periodically to assist in management decision-making or for reasons other than financial statement purposes.
Financial Statements - Comprehensive reports prepared in accordance with generally accepted accounting principles, as adopted by the Governmental Accounting Standards Board.
Foreign Travel - Travel to any out-of-country destination not included within the definitions of In-State Travel or Out-of-State Travel.
Franchise Agreement - An agreement where the University grants to a Party a concession or right to provide goods or services in a particular market controlled by the University. The University may regulate service level, quality and price, but users of the service pay the other Party directly and the other Party provides the goods or services and exercises control over other management decisions.
Full Cost - The total of all Direct and Indirect Cost associated with a specific Cost Objective.
Fund Management Services - Professional consulting services regarding the management of University funds.
Goods Contract - A contract between the University and another Party for the purchase of goods. The term “goods” includes commodities, supplies, and products as such terms are used in the Uniform Commercial Code (CRS §24-1-201 General Definitions) or applicable University policy.
Grant Contract - An agreement between the University and another Party where the University:
- Receives grant funds from or through the other Party to the Grant Contract. The University may receive grant funds from or through any contract type, including without limitation, Revenue Contracts, Sponsored Project Agreements, Intergovernmental Agreements, and Interagency Agreements, depending on the nature of the grant; or
- Provides funds from University of Colorado sources to the other Party to the Grant Contract. The University may grant funds to the other Party from or through any contract type, including without limitation, Personal Services Contracts or Capital Construction contracts, depending on the nature of the grant.
Health Benefits Agreement - Any contract for the purpose of establishing a health or welfare Benefit plan for the benefit of University employees, officials or students and which may include provisions for the payment of premium or deductible contributions to such plan by the employee, official or student or by the University.
In-State Travel - Travel within the State of Colorado and to the immediate area outside the state that is a necessary part of an otherwise "in-state" trip.
Incidental Expenses - Fees and tips given to porters, baggage carriers, bellhops, hotel maids, and skycaps for airport check-in, and cost of personal telephone calls. Incidental Expenses do not include expenses for laundry, cleaning and pressing of clothing, and Lodging taxes.
Indirect Cost - A cost incurred by a state Agency that does not exclusively benefit a specific Cost Objective and that cannot be readily identified with the same specific Cost Objective, and, therefore shall be allocated to Cost Objectives on some basis of assumed service/benefit or other equitable distribution basis.
Indirect Cost Allocation - A systematic and rational allocation of Indirect Cost to benefiting programs and activities that result in the calculation of an Indirect Cost recovery rate or the identification of the amount of Indirect Cost assigned to the benefiting program for cost recovery purposes and/or to establish appropriations and fees. Four types of documentation representing Indirect Cost Allocations to Cost Objectives are recognized in this fiscal Procedure:
a. Statewide Federal Indirect Cost Allocation Plan - The plan prepared by the State Controller's Office, using federally approved costing principles, to allocate the allowable central administrative Costs of state government to state agencies for inclusion in its State Agency Federal Indirect Cost Rate Proposal/Plan.
b. Statewide Budget/Cash Indirect Cost Allocation Plan - The plan prepared by the State Controller's Office using Full Costing principles, to allocate the central administrative Costs of state government to state for inclusion in its State Agency Budget/Cash Program Indirect Cost Determination Worksheet.
c. University Federal Indirect Cost Rate Proposal/Plan:
- Proposal - A document prepared by the University to establish a rate used to recover Indirect Costs from federally funded programs or activities.
- Plan - A document prepared by the University to document Indirect Cost Allocation algorithms used for federal Indirect Cost recovery purposes.
d. Documentation of an Indirect Cost Allocation prepared separately or as a part of a fee formulation process, the allocations from which are used to establish a component of fees for state cash programs and services.
Information Technology Contract - A contract between the University and another Party, where the other Party provides information technology services or products and services.
Installation - Normal hookup of appliances to existing utilities. It does not include adding plumbing, wiring or vents.
Institution of Higher Education - A public college, community college, or university established as a part of the state.
Interagency Agreement - An agreement between the University and one or more Agencies or Institutions of Higher Education.
Interagency Purchase Order - A Purchase Order issued by a state Agency or Institution of Higher Education to another state Agency or Institution of Higher Education.
Intergovernmental Agreement - An agreement between the University and a political subdivision of the state, another state, a political subdivision or public Institution of Higher Education in another state, or an agency of the federal government.
Investment Advisory Services - Professional consulting services regarding securities and investments.
License - A grant by the owner of rights in real or personal property to another of a personal privilege to use such property, without the transfer of the underlying ownership interest therein.
Loan Contract - An agreement between the University and another Party, where the University agrees to loan funds to such other Party.
Lodging - Any commercial accommodations available or offered for use for which a rental schedule has been established and payment is required.
Metropolitan Area - A region including a city and the densely populated surrounding areas that are socially and economically integrated with it.
Official Function - A meeting, conference, meal, or other function that is hosted by the chief executive officer, or representative, of the University, attended by guests and/or University employees, and held for official University Business purposes.
Out-of-State Travel - Travel within CONUS, other than In-State Travel, or within Alaska or Hawaii.
Party - An individual or entity who is not an Agency or Institution of Higher Education. If appropriate in the context, the term “Party” may also refer to multiple individuals or entities who are not Agencies or Institutions of Higher Education.
Payable - A Payable is a liability incurred by the University of Colorado. A liability shall arise upon receipt of supplies and services and a correct notice of the amount due. A liability shall not arise if a good faith dispute exists as to the University's obligation to pay all or a portion of the liability.
Personal Property Lease Agreement - An agreement between the University, as lessee, and the owner of personal property, as lessor, where the University pays the lessor for the right to use such personal property for the term of the lease. A personal property lease may be an operating lease or a capital lease.
Personal Services Contract - A contract between the University and another Party, where the other Party provides personal services for the benefit of the University or a third Party. An individual or entity performing services under a Personal Services Contract is an independent contractor and not an employee of the University.
Political Expenses - Expenses incurred in relation to activities that are primarily designed to further the interests of a candidate, political party, or special interest group.
Price Agreement - A contract which allows the University to order goods or services from the vendor, pursuant to the terms of the Price Agreement, by issuing a Purchase Order, task order, or other approved order form.
Professional Services Contract - A contract between the University and another Party for the performance of any of the following services: architectural, engineering, land surveying, industrial hygienist, and landscape architect.
Purchase Order - A document, in a form prescribed by the Chief Procurement Officer, prepared and approved by an authorized University employee for the purpose of encumbering funds and securing goods or services from a vendor. For the purpose of this Procedure, a Purchase Order is not a University Contract.
Real Property Lease Agreement - An agreement between the University and another Party, where the University:
- As landlord, owns the real property subject to the lease and gives the other Party to the Lease, as tenant, the right of possession of such property for the lease term; or
- As tenant, obtains the right of possession of the real property subject to the lease from the owner of such property, as landlord, for the lease term.
Real Property Purchase Agreement - An agreement for the purchase of an interest in land (fee title or lesser interests) and improvements to land, such as buildings and other structures.
Reimbursement Request - A request for reimbursement of travel expenses incurred by a Traveler under this Procedure.
Revenue Contract - An agreement between the University and another Party where cash and/or property are paid to the University, resulting in revenue recognition. Revenue Contracts do not require the expenditure of University funds or create an obligation on the part of the University.
Reviewing Attorney - An attorney employed by the Office of University Counsel and designated by the State Attorney General as a special assistant attorney general, or any attorney employed by the State Attorney General who is authorized to review contracts on behalf of the University.
Sale of Securities - The offer, issuance or Sale of Securities by the University of Colorado. Securities include certain Debt Contracts.
Settlement Agreement - A contract between the University and another Party for the purpose of ratifying agreements concerning employment or contractual disputes.
Small Purchase Documentation - Small Purchase Documentation is required for purchases of $5,000 or less. Documentation shall include:
- Description of goods or services being purchased or other reasons for the disbursement of funds; and
- The amount to be paid.
The University of Colorado shall ensure that:
- The University's obligation is being charged to the appropriate account; and
- Procurement requirements have been satisfied.
- Small Purchase Documentation includes, without limitation, an invoice, billing, receipt, court order, or any other document appropriate to the transaction and approved by the University Controller. Small Purchase Documentation is not required for purchases that do not require a receipt under Fiscal Procedure 5-1(Travel).
Sponsored Project Agreement - An agreement between the University and another Party, where the University of Colorado receives or expends restricted funding for use in connection with oversight responsibilities for research and development or other specified programmatic activities sponsored by federal, state, or local governments, or private agencies or organizations.
Temporary Work Location - A location where employment is expected to continue, and does continue, for one year or less.
Training Function - A meeting, conference, or other function which is hosted by the University, attended by customers of the University and/or University employees, and held to enhance staff knowledge or to educate customers of the University or University employees, that are affected by the University's operations or regulations. Training Functions should have a written agenda, study materials, and be led by an identified presenter.
Travel Advance - The advance of funds to a Traveler for approved travel expenses by the University.
Traveler - A University employee, official or student who receives required approvals to travel on University Business.
Traveler's Regular Work Location - Generally, the primary location where the Traveler works, including the entire Metropolitan Area of the Traveler's Regular Work Location.
Traveler's Residence - The location where the Traveler maintains his or her primary family home.
Traveling Away from Home - A Traveler is Traveling Away from Home if: a) the Traveler's duties require him or her to be away from the Traveler's Regular Work Location substantially longer than an ordinary day's work, and b) the Traveler needs to sleep or rest to meet the demands of his or her work while away from home.
Transportation - Travel by commercial airline, railroad, bus, taxicab, University owned, leased, or personally owned automobile or airplane or any other means of conveyance.
University Business - Official University Business or other duties undertaken for University purposes and for the benefit of the University.
University Contract - Any formal, legally binding document between the University and another Party, the form, content and process for approval of which is described in Fiscal Procedure 3-1. A University Contract that meets the requirements of Fiscal Procedure 3-1 shall constitute a Commitment Voucher for purposes of Fiscal Procedure 2-2.
Utility Cost-Savings Contract - An energy performance contract, shared-savings contract, or other agreement in which utility cost savings are used to pay for service or equipment. See CRS §24-30-2001(6).
Vendor Agreement - A Vendor Agreement is any form of agreement provided by a vendor, including an on-line agreement, containing contractual provisions relating to the goods and/or services to be provided by such vendor. All references to “contract” or “agreement” refer to University of Colorado contracts, which are formal, legally binding documents. The terms “contract” and “agreement” are used interchangeably in the following definitions to reflect their common usage in the University and include any amendments to the contract or agreement. The following definitions include terms used in this Fiscal Procedure as well as various types of contracts entered into by the University of Colorado.