Business Office

To improve the reliability of the financial statements and allow for more effective financial management of the University, the following policy has been adopted.

ALL purchases of goods and services for the University will require the submission of a purchase order BEFORE any products or services are ordered or contracted. Any exceptions to this policy must be approved by the Vice President of Finance and Administration for the University.

Initial purchase requisitions must be submitted in the financial management system for approval.

A system of authorized online approvals will be established for each department. Department managers or their designee will be responsible for timely approval of requisitions.

The system will monitor the budget availability and only process the requisition to a purchase order if funds are available.

When goods and/or services are received, the purchasing department is responsible for recording the receipt of goods in the financial management system and submitting the invoice for payment if applicable to Finance for processing payment. This process authorizes the Business Office to pay the invoice upon receipt.

Vendors are notified of this University policy by the Business Office.

There are additional requirements for the following types of purchasing:

• The purchase of any equipment and/or software that will connect to the campus network must be approved by Information Technology .
• All employment activities must be approved by the Human Resources office.
• Purchases in excess of $10,000 must be approved by the Vice President of Finance and Administration (or designee)
• Any single item or services in excess of $5,000 will require submission of three competitive bids prior to approval.
• Contract services must be approved by the the Vice President of Finance and Administration (or designee)
• This process will allow all budget managers to have daily access to up-to-date budget information.

Purchasing Authority Policy

• Conflict of interest occurs when a person’s private interests and his/her University responsibilities overlap. This means an individual should not be in a position to gain personally as a result of conducting business on behalf of the University. Employees engaged in any aspect of the purchasing process are expected to be free of interests or relationships that are actually or potentially detrimental to the best interests of Baker University. Employees cannot independently authorize University businesses with a company he/she substantially owns or with businesses substantially owned by close relatives.
• All employees who have purchasing authority or have been delegated purchasing authority and possibly could have a conflict of interest must disclose the information by signing an annual conflict of interest statement.

Capital Purchases & Construction Renovation Projects

The University uses a competitive selection process for awarding capital purchases and construction/renovation projects over $50,000. The primary selection process for capital purchases is solicitation of bids. The University reserves the right to refuse any and all bids as part of the process. The selection process for construction and renovation projects consists of a request for qualifications from interested parties.

This policy clarifies the taxable status of prizes, awards and gifts to University faculty, staff and students and specifies whether University funds may be used to purchase prizes, awards and gifts.

Policy & Guidelines

The Internal Revenue Service Code states that under certain circumstances the value of prizes, awards and gifts to individuals is considered taxable income. The University follows IRS regulations with regards to the giving of business gifts, awards and prizes.

Gift Cards & Gift Certificates

Gift cards and gift certificates, regardless of the value, are considered by the Internal Revenue Service as a cash equivalent and are subject to tax reporting and tax withholding. Therefore, they are not allowed to be purchased with University funds.

Personal Gifts

The University considers the following to be personal gifts that will not be paid or reimbursed with University funds other than at the President’s discretion.

• Birthday gifts (including cakes)
• Holiday gifts
• Wedding gifts
• Baby gifts
• Sympathy gifts
• Going away gifts

Awards to Employees

Awards provided to employees in the form of cash, gift certificates, or noncash merchandise for performance, productivity, or other reasons connected with their employment are considered taxable compensation. These awards must be reported as employee compensation on the employee’s Form W-2 and is subject to federal withholding and FICA taxes.

Prizes
Occasionally, the University may offer door prizes and other noncash gifts to entice employee or student participation in an event. These noncash gifts must be de minimis in amount (under $25) in order to be allowable. The prizes may NOT be gift cards

It is the policy of Baker University to comply with the State of Kansas sales tax regulations by collecting, accounting for, reporting and remitting the required sales tax in a timely manner. Departments engaged in the sale of taxable goods and services must collect the sales tax and must forward a monthly report to the University controller.

Policy & Guidelines

The purpose of this policy is to comply with state sales tax regulations and to protect the University from penalties for failure to file complete and accurate tax returns.

General Requirements

Although the University is exempt from paying sales tax on qualified goods and services it purchases for its educational operations, the University’s tax-exempt status does not extend to items sold to groups or individuals.

The University must collect sales tax on sales of any tangible personal property, selected services rendered and ticket sales for admission to public events. Tangible personal property includes items such as clothing, shoes, athletic equipment and mailroom purchases. This is not a complete list of items that may be taxable. For further clarification please contact the Finance Office. This applies to sales to outside groups, individuals, staff, faculty and students. Sales tax also must be collected for admission to sporting events and items sold at the Maple Leaf Festival by student groups.

Departmental Responsibilities

Any department engaged in the sale of taxable goods and services must collect the sales tax and forward a monthly report to the University controller by the fifth of the following month.

Tax Rate

The current sales tax rate for Baldwin City is 8.55%.