Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
45A.045(3),
45A.675
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
45A.035(2)(a) requires the
Secretary of the Finance and Administration Cabinet to promulgate
administrative regulations relating to conditions and procedures for
delegations of purchasing authority.
KRS
45A.045(5) requires the
secretary of the cabinet to promulgate administrative regulations establishing
the method of disposal for personal property of the state, if disposal has been
delegated to a state agency.
KRS
45A.100(3) requires the
secretary of the cabinet to promulgate administrative regulations concerning
the granting or revocation of delegations of small purchasing authority by the
cabinet. This administrative regulation establishes requirements that will
provide uniformity for all delegations of authority by the Finance and
Administration Cabinet and ensure the competency of the agency receiving the
delegated authority in the proposed delegated area of purchasing. In addition,
this administrative regulation establishes the requirements for the Secretary
of the Finance and Administration Cabinet to waive the small purchase authority
limitations pursuant to
KRS
45A.100.
Section
1. Delegation of Purchasing Authority Other than for Small
Purchases.
(1) A secretary's order may
delegate Finance and Administration Cabinet purchasing authority pursuant to
KRS
45A.045(3). A government
agency requesting a delegation from the Finance and Administration Cabinet
under
KRS
45A.045(3) shall submit to
the secretary proof of competency in the proposed delegated area, demonstrated
by staff experience and training and the resources available to the agency to
perform the purchase delegation.
(2) The secretary's order shall specify the
authority the agency shall receive, the purpose for which the delegation is
given, and the period of time for which the delegation is valid.
(3) An agency receiving delegation shall
comply with the provisions of KRS Chapter 45A and all other purchasing
statutes, administrative regulations, policies and procedures of the Finance
and Administration Cabinet.
(4) An
agency holding a delegation shall certify annually to the secretary by July 1,
that it is in compliance with all purchasing laws, administrative regulations
and policies.
(5) A delegation of
purchasing authority by the secretary shall remain in force according to the
original terms unless modified, or until rescinded by the secretary.
(6) A delegation of purchasing authority for
an agency's individual requirements, or to authorize procurement activities by
an agency for preestablished and limited periods of time may be granted by the
Commissioner of the Department for Administration or the Commissioner for the
Department for Facilities Management, or their designees, as appropriate,
setting forth the type of procurement activity or function and fixing the
limits and restrictions on the exercise of the delegation and its duration. A
delegation granted under this section shall not be extended or renewed except
with the approval of the Secretary of the Finance and Administration
Cabinet.
Section 2.
Small Purchase Authority Delegation Exceeding an Agency's Statutory Small
Purchase Limit Under
KRS
45A.100.
(1) The Secretary of the Finance and
Administration Cabinet may delegate purchasing authority that exceeds the
agency's small purchase limit set out in
KRS
45A.100 by secretary's order. The order shall
set forth the type of procurement activity or function delegated and any
limitations or restrictions on the exercise of the authority.
(2) An agency request for small purchase
delegation above the limits established in
KRS
45A.100 shall be submitted to the secretary,
approved by the head of the agency submitting the request, and shall contain
the following information:
(a) Total dollars
spent each of the two (2) preceding fiscal years under the agency's existing
small purchase authority;
(b)
Number of small purchase transactions represented by those dollar figures for
each fiscal year;
(c) A description
of the agency's organizational structure, which shall demonstrate that the
delegation is appropriate to the agency's size and procurement needs;
(d) A description of the agency's internal
controls, which shall ensure adequate safeguarding of assets and the separation
of purchasing, accounting, and receiving functions;
(e) Documentation that the agency has
prepared and implemented a plan to identify and utilize small business and
small minority business suppliers and the agency's future goals in this
respect;
(f) An action plan showing
how the agency plans to reach its goals;
(g) Acknowledgment that the agency is aware
of, and in compliance with, the provisions of
KRS 45A.500
and
200
KAR 5:330 relating to recycled material content
products;
(h) Every record of
control weakness or noncompliance relating to procurement practices issued to
the agency by the Auditor of Public Accounts, internal auditors, or the Finance
and Administration Cabinet Division of Administrative Policy and Audit, for
each of the past two (2) fiscal years, the agency's response to the finding,
and any corrective measure taken; and
(i) A list of the agency's procurement
personnel, below the level of branch manager, to whom the agency will give
authority for purchases at the requested higher small purchase limits and their
professional purchasing certification or training.
(3) An agency shall set a minimum goal of
five (5) percent utilization of small business and small minority business
suppliers.
(4) An agency shall
report its progress toward meeting its utilization goal upon the secretary's
request.
(5) Procurement personnel
of an agency granted delegated purchasing authority shall, within one (1) year
after the granting of the delegation or within one (1) year of employment in
government in a procurement position, whichever is sooner, have completed a
course in purchasing offered by the Finance and Administration Cabinet's
Division of Material and Procurement Services and Division of Contracting and
Administration, or the introductory course in purchasing offered by the
National Institute of Governmental Purchasing, or an equivalent course offered
by the National Association of Purchasing Management.
(6) An agency requesting delegated purchasing
authority shall utilize each on-line function of the state's procurement system
that has been offered to the agency.
(7) The Division of Material and Procurement
Services and the Division of Contracting and Administration may request
periodic procurement audits by the Division of Administrative Policy and Audit
of the agencies to which small purchase delegation above the limits established
in
KRS
45A.100 has been granted. Such audits shall
investigate an agency's compliance with the provisions of KRS Chapter 45A,
purchasing administrative regulations and the Finance and Administration
Cabinet Manual of Policies and Procedures. If an agency demonstrates
deficiencies in procurement expertise or practice, the division shall recommend
that the secretary revoke or amend any delegations granted under this
administrative regulation. Authority shall not be extended or renewed except
with the approval of the secretary.
Section 3. Delegation of Authority to Declare
and Dispose of Surplus Personal Property.
(1)
A secretary's order may delegate Finance and Administration Cabinet authority
pursuant to
KRS
45A.045(5).
(2) A delegation shall only be granted to the
agency head.
(3) An agency head
requesting delegation of authority to declare and dispose of surplus personal
property from the Finance and Administration Cabinet under
KRS
45A.045(5) shall submit a
request to the Secretary of the Finance and Administration Cabinet.
(4) The request shall assure that:
(a) Only property surplus to the agency's
need shall be declared surplus and disposed of;
(b) No employee of the Commonwealth shall
personally benefit from the disposal of surplus property; and
(c) Disposition shall be in accordance with
applicable federal and state laws and regulations, including the executive
branch code of ethics and Finance and Administration Cabinet manual of policies
and procedures established in
200 KAR
5:021.
STATUTORY AUTHORITY:
KRS
45A.035(2)(a),
45A.045(3),
(5),
45A.100(3)