STATE OF COLORADO FISCAL RULES
ColoradoRegulations
Ask Donna
How this section applies to your facts.
Code of Colorado Regulations › 100,800 Department of Personnel and Administration › 101 Division of Finance and Procurement › 1 CCR 101-1
Text
DEPARTMENT OF PERSONNEL AND ADMINISTRATION
Division of Finance and Procurement
STATE OF COLORADO FISCAL RULES
1 CCR 101-1
[Editor’s Notes follow the text of the rules at the end of this CCR Document.]
_________________________________________________________________________
These Fiscal Rules are effective as of July 1, 2024.
PURPOSE
The purpose of these Fiscal Rules is to implement statutory provisions, set forth principles concerning
internal controls, accounting policies, and financial reporting for the State of Colorado, and assist the
State Controller in managing the finances and financial affairs of the State.
STATUTORY AUTHORITY
Colorado Revised Statutes created the Office of the State Controller. Part 2, Title 24, Article 30, C.R.S.,
lists the powers and duties of the State Controller and is incorporated as a reference into each of these
Fiscal Rules. Section 24-30-202(13), C.R.S. provides the authority of State Controller to issue binding
Fiscal Rules and is specifically incorporated into each of these State Fiscal Rules as statutory authority.
DEFINITIONS
In addition to any definitions contained in each rule, the following general definitions shall apply to and are
incorporated into each of these Fiscal Rules:
Chief Executive Officer – Executive Director, Commissioner, President, and/or any individual delegated
to act on behalf of such individuals.
Chief Fiscal Officer – Top financial position in the State Agency or Institution of Higher Education.
Controller – The individual with the powers, duties, and functions created pursuant to §24-30-201,
C.R.S. The Controller may delegate these powers, duties, and functions. The term Controller as set forth
in §6-1-1303(7) C.R.S Rule 2.02 does not apply to the Controller and delegates in §24-30-201, C.R.S.
Elective Officers – Governor, Lieutenant Governor, Attorney General, Secretary of State, and Treasurer
ler – The individual with the powers, duties, and functions created pursuant to §24-30-201,
C.R.S. The Controller may delegate these powers, duties, and functions. The term Controller as set forth
in §6-1-1303(7) C.R.S Rule 2.02 does not apply to the Controller and delegates in §24-30-201, C.R.S.
Elective Officers – Governor, Lieutenant Governor, Attorney General, Secretary of State, and Treasurer.
Institution of Higher Education – A college or university in Colorado State government created by law,
executive order, or any other authority that has not elected to be exempt from these Fiscal Rules under
§24-30-202(13)(b), C.R.S.
Principal Departments – The State executive departments identified in §24-1-110, C.R.S., and the
Office of the Governor.
Procurement Official - The individual of a purchasing agency with purchasing authority created pursuant
to §24-102-202(3), C.R.S., or §24-102-302(2), C.R.S
State – The State of Colorado.
Code of Colorado Regulations
Secretary of State
State of Colorado
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
2
State Agency – A department, division, section, unit, commission, board, bureau, or institution in
Colorado state government created by law, executive order, or any other authority, other than an
Institution of Higher Education.
APPLICABILITY
These Fiscal Rules are applicable to all State Agencies and Institutions of Higher Education (except those
Institutions that have elected to be exempt from these Fiscal Rules under §24-30-202(13)(b), C.R.S.), to
all employees of the state in the applicable State Agencies and Institutions of Higher Education, and to all
funds in the executive branch of State government.
Pursuant to §24-2-102(4) C.R.S., an Elective Officer and each Elective Officer’s second-in-command,
such as a deputy or chief of staff, may elect to exempt any solicitation or commitment voucher from either
or both of §24-30-202 C.R.S., including the Fiscal Rules, and Title 24, Article 101 C.R.S. (Procurement
Code) on a case-by-case basis
d to all
funds in the executive branch of State government.
Pursuant to §24-2-102(4) C.R.S., an Elective Officer and each Elective Officer’s second-in-command,
such as a deputy or chief of staff, may elect to exempt any solicitation or commitment voucher from either
or both of §24-30-202 C.R.S., including the Fiscal Rules, and Title 24, Article 101 C.R.S. (Procurement
Code) on a case-by-case basis. The Elective Officer, or designee, shall authorize the use of the
exemption, which shall be documented prior to issuing the solicitation for exemptions from the
Procurement Code or upon executing the Commitment Voucher, defined in Fiscal Rule 3-1 (Commitment
Vouchers), for exemptions from §24-30-202, C.R.S. The departments headed by Elective Officers are
otherwise subject to §24-30-202 C.R.S., including these Fiscal Rules, and the Procurement Code, Title
24, Article 101, C.R.S., unless the Elective Officer chooses to exempt all solicitations and commitment
vouchers by expressly documenting his or her intent.
RESPONSIBILITY
It is the responsibility of the Chief Executive Officer of each State Agency or Institution of Higher
Education to ensure compliance with these Fiscal Rules.
ADMINISTRATIVE HARDSHIP
A State Agency or Institution of Higher Education may submit a written request to the State Controller,
with notification to the State Agency’s or Institution of Higher Education's Chief Executive Officer, for
exemption and/or alternative policy if any of these Fiscal Rules create undue administrative or financial
hardship. The State Controller may approve or deny such request.
DEPARTMENTAL POLICIES
A State Agency or Institution of Higher Education may implement internal policies regarding these Fiscal
Rules that may be more restrictive than these Rules. If a State Agency or Institution of Higher Education
develops such policies, then employees at that State Agency or Institution of Higher Education shall
comply with those policies in addition to complying with these Fiscal Rules
TAL POLICIES
A State Agency or Institution of Higher Education may implement internal policies regarding these Fiscal
Rules that may be more restrictive than these Rules. If a State Agency or Institution of Higher Education
develops such policies, then employees at that State Agency or Institution of Higher Education shall
comply with those policies in addition to complying with these Fiscal Rules.
SUBSTANCE OVER FORM
When reviewing any action for compliance with these Fiscal Rules, the individual reviewing that action
shall review the substance of the action and not just the legal form of that action. These Fiscal Rules
apply to the true intent of the transaction as opposed to its mere form.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
3
CHAPTER 1:
ACCOUNTING AND INTERNAL CONTROLS
RULE 1-1: ACCOUNTING PRINCIPLES AND STANDARDS
RULE 1-2: INTERNAL CONTROLS
RULE 1-3: STATE FINANCIAL SYSTEM
RULE 1-4: DELEGATED AUTHORITY
RULE 1-1:
ACCOUNTING PRINCIPLES AND STANDARDS
1.
AUTHORITY
§24-30-202(12), C.R.S. (Accrual System of Accounting)
2.
DEFINITIONS
2.1.
GAAP - Generally accepted accounting principles, as adopted by the Governmental
Accounting Standards Board
3.
RULE
The accounting principles of the State shall be based on GAAP. In addition, all applicable
statutory provisions shall be met.
When a conflict between statutory provisions and GAAP exists, GAAP takes precedence in
financial reporting.
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.
4.
AUTHORITY
§24-17-102(1), C.R.S. (Internal Controls)
§24-17-103, C.R.S. (Annual Internal Control Report)
§18-4-401, C.R.S. (Theft)
§18-8-407, C.R.S. (Embezzlement of Public Property)
§§24-17-101 – 24-17-104, C.R.S. (State Department Financial Responsibility and Accountability
Act)
5.
DEFINITIONS
5.1
tal schedules may be used. Preparation of separate statutory based reports may also
be necessary.
4.
AUTHORITY
§24-17-102(1), C.R.S. (Internal Controls)
§24-17-103, C.R.S. (Annual Internal Control Report)
§18-4-401, C.R.S. (Theft)
§18-8-407, C.R.S. (Embezzlement of Public Property)
§§24-17-101 – 24-17-104, C.R.S. (State Department Financial Responsibility and Accountability
Act)
5.
DEFINITIONS
5.1.
Commitment Voucher - See Fiscal Rule 3-1 (Commitment Vouchers) and State Contract,
Grant Agreement, and Small Purchase Documentation.
5.2.
Fraud – Misstatements Arising from Fraudulent Financial Reporting, Misstatements
Arising from Intentional Misappropriation of Assets, and theft or embezzlement of public
property.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
4
5.3.
Misstatements Arising from Fraudulent Financial Reporting – Intentional misstatements,
or omissions of amounts or disclosures in financial statements, with the intent to deceive
financial statement users.
5.4.
Misstatements Arising from Intentional Misappropriation of Assets – The theft of an
entity’s assets where the effect of the theft causes the basic financial statements not to
be presented in conformity with GAAP, as defined in Fiscal Rule 1-1 (Accounting
Principles and Standards).
5.5.
Pre-audit – A review for compliance with applicable statutes, Fiscal Rules, and other
regulations, and adherence to accepted business practices by a State Agency or
Institution of Higher Education.
5.5.1.
Pre-audit of a Commitment Voucher originating in the same State Agency or
Institution of Higher Education includes an examination of budget, compliance,
and documentation in order to verify and substantiate a transaction before the
Commitment Voucher is recorded and paid.
5.5.2.
Pre-audit of interagency transactions that require a Commitment Voucher:
5.5.2.1
Institution of Higher Education.
5.5.1.
Pre-audit of a Commitment Voucher originating in the same State Agency or
Institution of Higher Education includes an examination of budget, compliance,
and documentation in order to verify and substantiate a transaction before the
Commitment Voucher is recorded and paid.
5.5.2.
Pre-audit of interagency transactions that require a Commitment Voucher:
5.5.2.1. For the billing State Agency or Institution of Higher Education, Pre-audit
includes the same responsibilities as Pre-audit of a commitment voucher
originating in the same State Agency or Institution of Higher Education.
5.5.2.2. For the paying State Agency or Institution of Higher Education, Pre-audit
includes a review of the budget and compliance. The paying State
Agency or Institution of Higher Education may rely on the billing agency
to verify and substantiate the transaction.
5.5.3.
Pre-audit of certified information
5.5.3.1. For the State Agency or Institution of Higher Education that prepares the
certified information, Pre–audit includes an examination of the budget if
applicable, compliance, documentation, and procedures to verify the
accuracy of the information before the State Agency or Institution of
Higher Education certifies the information.
5.5.3.2. The agency that receives the certified information, may rely on the Pre-
audit conducted by the State Agency or Institution of Higher Education
that prepares that information.
6.
RULE
6.1.
State Agencies and Institutions of Higher Education have the responsibility for the design
and implementation of programs and controls to prevent, deter, and detect Fraud.
6.2.
Any suspected Misstatements Arising from Fraudulent Financial Reporting shall be
reported in writing to the State Controller as soon as it is discovered.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
encies and Institutions of Higher Education have the responsibility for the design
and implementation of programs and controls to prevent, deter, and detect Fraud.
6.2.
Any suspected Misstatements Arising from Fraudulent Financial Reporting shall be
reported in writing to the State Controller as soon as it is discovered.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
5
6.3.
Any suspected theft or embezzlement of State funds or assets or sensitive State financial
information shall immediately be reported to the Chief Executive Officer, or delegate, and
the Chief Fiscal Officer of the State Agency or Institution of Higher Education where the
theft or embezzlement may have occurred and appropriate action shall be taken by the
State Agency or Institution of Higher Education. The Chief Fiscal Officer or controller of a
Principal Department shall report in writing and in a timely manner the following to the
State Controller:
6.3.1.
A suspected theft or embezzlement of State funds or assets totaling $5,000 or
more per incident;
6.3.2.
All suspected theft of sensitive State financial information; and
6.3.3.
The results of any investigation or follow-up including corrective measures
implemented to prevent or reduce the likelihood of future occurrences.
6.4.
When complying with §24-17-101, et seq., C.R.S., the form, content, and due date of the
written statement shall be determined by the State Controller.
6.5.
A State Agency or Institution of Higher Education shall complete a pre-audit of all
accounting documents and financial transactions prior to recording the documents on the
State Financial System or on a State Agency or Institution of Higher Education Financial
System., and prior to making payment
form, content, and due date of the
written statement shall be determined by the State Controller.
6.5.
A State Agency or Institution of Higher Education shall complete a pre-audit of all
accounting documents and financial transactions prior to recording the documents on the
State Financial System or on a State Agency or Institution of Higher Education Financial
System., and prior to making payment. State Agencies and Institutions of Higher
Education shall implement internal accounting and administrative controls that
reasonably ensure that financial transactions are accurate, reliable, conform to the Fiscal
Rules, and reflect the underlying realities of the accounting transaction (substance rather
than form). A State Agency or Institution of Higher Education shall consider the factors of
risk, cost, and business requirements when establishing these internal controls.
RULE 1-2:
STATE FINANCIAL SYSTEM
1.
AUTHORITY
§24-30-202(12), C.R.S. (Accrual System of Accounting)
§2-3-107, C.R.S. (Authority to subpoena witnesses – access to records)
§24-30-202(11), C.R.S. (State Controller Authority for Tracking Sources of Money Accruing to the
State)
§24-30-201(1)(f), C.R.S (Accounts and Control - Controller)
2.
DEFINITIONS
2.1.
CORA – Colorado Open Records Act, §24-72-200.1, et seq., C.R.S.
2.2.
Electronic Interface – A standard specifying a set of functional characteristics, common
physical interconnection characteristics, and signal characteristics for the exchange of
data.
2.3.
State Financial System – The official financial system for the State of Colorado, as
prescribed by the State Controller, and used by the Office of the State Controller to
prepare statewide reports including the Annual Comprehensive Financial Report, and
also used by most State Agencies to record transactions and prepare reports for their
organizations.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
icial financial system for the State of Colorado, as
prescribed by the State Controller, and used by the Office of the State Controller to
prepare statewide reports including the Annual Comprehensive Financial Report, and
also used by most State Agencies to record transactions and prepare reports for their
organizations.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
6
2.4.
State Agency and Institution of Higher Education Financial Systems – Systems used by
certain State Agencies and Institutions of Higher Education to record transactions,
prepare reports, and prepare financial statements for their organizations.
3.
RULE
The State Controller is the official custodian of the database included within the State Financial
System.
The State Controller, as official custodian of the State Financial System, shall approve access
and resolve all disputes regarding access to the State Financial System and information
contained in that system in compliance with CORA.
3.1.
Use of the State Financial System and State Agency and Institutions of Higher Education
Financial Systems
3.1.1.
All State Agencies and Institutions of Higher Education shall either:
3.1.1.1. Use the State Financial System to record their financial transactions and
financial information, develop their financial reports, and prepare their
financial statements; or
3.1.1.2. Use a State Agency or Institution of Higher Education Financial System
to record their financial transactions and financial information, develop
their financial reports, and prepare their financial statements.
3.1.2.
The State Controller shall approve State Agency and Institution of Higher
Education Financial Systems in accordance with § 3.2 of this Fiscal Rule.
3.1.3
ncial statements; or
3.1.1.2. Use a State Agency or Institution of Higher Education Financial System
to record their financial transactions and financial information, develop
their financial reports, and prepare their financial statements.
3.1.2.
The State Controller shall approve State Agency and Institution of Higher
Education Financial Systems in accordance with § 3.2 of this Fiscal Rule.
3.1.3.
Redundancies in functionality between State Agency or Institution of Higher
Education Financial Systems and the State Financial System shall be eliminated
to prevent duplication in the development of financial systems, to improve the
compatibility of financial systems, to facilitate inter-system communications and
to timely access information, and to improve the efficiency of the collection,
maintenance, and reporting of financial information throughout State government.
3.1.4.
Internal Revenue Service Filing Requirements
3.1.4.1. State Agencies and Institutions of Higher Education exempt from using
the State Financial System shall be responsible for Internal Revenue
Service (IRS) filing requirements in accordance with the Internal
Revenue Code, including obtaining a separate Taxpayer Identification
Number (TIN) from the IRS. The XX-XXX4739 TIN is reserved for use by
the Office of the State Controller when interacting with the IRS and not to
be changed by State Agencies.
3.1.4.2. For State Agencies that utilize the State Financial System, IRS filing
requirements are coordinated by the Office of the State Controller on
behalf of State Agencies. State Agencies shall record contractor and
payment transactions properly to ensure proper Federal reporting.
3.2.
State Agencies and Institutions of Higher Education Financial Systems
3.2.1.
All State Agencies and Institutions of Higher Education Financial Systems shall
have the capability to interface with the State Financial System.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
shall record contractor and
payment transactions properly to ensure proper Federal reporting.
3.2.
State Agencies and Institutions of Higher Education Financial Systems
3.2.1.
All State Agencies and Institutions of Higher Education Financial Systems shall
have the capability to interface with the State Financial System.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
7
3.2.2.
Approval of Financial Systems
3.2.2.1. If the State Controller and State Agency agree that the State Financial
System can meet the State Agency’s needs, then the State Agency shall
use the State Financial System unless the State Controller approves the
procurement of another proposed system.
3.2.2.2. If the State Controller and State Agency agree that the State Financial
System cannot meet the State Agency’s needs, then solicitations for
such a financial system shall include a requirement that the financial
system shall interface with the State Financial System. The State
Controller shall approve the electronic interface of the proposed system
with the State Financial System upon completion of testing of the
interface, if testing confirms that the interface is fully operational.
3.2.3.
If the present functionality of the State Financial System does not meet the needs
of an Institution of Higher Education, the solicitations for a proposed financial
system shall include a requirement that the proposed financial system shall
interface with the State Financial System. The State Controller shall approve
electronic interfaces of proposed systems used by Institutions of Higher
Education with the State Financial System upon completion of testing of the
interface.
3.2.4.
State Agencies and Institutions of Higher Educations that use their system shall
interface their data to the State Financial System as directed by the State
Controller, if testing confirms that the interface is fully operational.
3.3.
Access to State Network
3.3.1
ed systems used by Institutions of Higher
Education with the State Financial System upon completion of testing of the
interface.
3.2.4.
State Agencies and Institutions of Higher Educations that use their system shall
interface their data to the State Financial System as directed by the State
Controller, if testing confirms that the interface is fully operational.
3.3.
Access to State Network
3.3.1.
Access to the State network shall only be granted in accordance with the policies
issued by the Office of Information Security in the Governor’s Office of
Information Technology.
3.4.
Access to the State Financial System
3.4.1.
State Financial System records contain both public and confidential information.
Therefore, an employee who has access to the State Financial System shall only
access information that is needed to do the employee’s job and shall not browse
or otherwise access information contained in the State Financial System that
exceeds the minimum necessary to do the employee’s job. Individuals with the
authority to grant access to the State Financial System shall only grant access to
create, modify or approve documents within the State Financial System to users
as required by the user’s job duties.
3.4.1.1. Individuals with the authority to grant access to the State Financial
System shall only grant access to non-State employees if such access is
necessary to the work that the non-State employee is performing for the
State or to comply with audit requirements. If access is granted to a non-
State employee, then the individual granting such authority shall ensure
that the access granted is read-only, and limited to the specific purpose
for which access was granted and only for the duration of the work that
will be performed by the non-State employee.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ly with audit requirements. If access is granted to a non-
State employee, then the individual granting such authority shall ensure
that the access granted is read-only, and limited to the specific purpose
for which access was granted and only for the duration of the work that
will be performed by the non-State employee.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
8
3.4.2.
If the State Controller receives a request from a State Agency or Institution of
Higher Education for information belonging to another State Agency or Institution
of Higher Education, the State Controller shall notify each State Agency or
Institution of Higher Education whose information has been requested of the
request for information and furnish such State Agency or Institution of Higher
Education with a copy of the information provided.
3.4.3.
If the State Controller receives a request from the Office of the Governor or the
Legislative Branch for information belonging to State Agency or Institution of
Higher Education, the State Controller shall notify each State Agency or
Institution of Higher Education whose information has been requested of the
request for information and furnish such State Agency or Institution of Higher
Education with a copy of the information provided.
3.4.4.
If the State Controller receives a request for information from a citizen or entity
other than a State Agency or Institution of Higher Education under CORA, the
State Controller shall furnish the information in a timely manner, as provided by
statute, if the State Controller is the custodian of record for that information. The
State Controller shall only respond to requests under CORA if the State
Controller is the custodian of record for the information contained in that request.
For all requests for which the State Controller is not the custodian of record, the
State Controller shall refer the request to the State Agency or Institution of Higher
Education who is the custodian of record for that information, if known.
3.4.5
Controller shall only respond to requests under CORA if the State
Controller is the custodian of record for the information contained in that request.
For all requests for which the State Controller is not the custodian of record, the
State Controller shall refer the request to the State Agency or Institution of Higher
Education who is the custodian of record for that information, if known.
3.4.5.
The State Auditor has the authority to access the State Financial System, State
Agency and Institutions of Higher Education Financial Systems, and the books,
accounts, reports, vouchers, or other records or information of State Agencies
and Institutions of Higher Education in accordance with §2-3-107, C.R.S.
3.5.
State Financial System Security
3.5.1.
The State Controller and the Governor’s Office of Information Technology are
responsible for the overall security of the State Financial System. The State
Controller may delegate security responsibility to State Agencies and Institutions
of Higher Education for access to the State Financial System.
RULE 1-3:
DELEGATED AUTHORITY
1.
AUTHORITY
§24-30-201, C.R.S. (Powers and Duties of the State Controller)
§24-30-202(1), (2), (3), (4), and (5) C.R.S. (Authority for Delegation of Authority)
2.
DEFINITIONS
2.1.
Commitment Voucher – See Fiscal Rule 3-1 (Commitment Vouchers) and State
Controller Contract, Grant, and Purchase Order Policies.
3.
RULE
Any individual who has the direct authority to sign or approve Commitment Vouchers on behalf of
a State Agency or Institution of Higher Education, may delegate that authority as described in this
Fiscal Rule. The State Controller may delegate the authority granted in §24-30-202, C.R.S. to
approve and sign Commitment Vouchers as described in this Fiscal Rule.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ority to sign or approve Commitment Vouchers on behalf of
a State Agency or Institution of Higher Education, may delegate that authority as described in this
Fiscal Rule. The State Controller may delegate the authority granted in §24-30-202, C.R.S. to
approve and sign Commitment Vouchers as described in this Fiscal Rule.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
9
3.1.
Executive Signature Authority Delegation
3.1.1.
The Chief Executive Officer of a State Agency who has authority to sign State
Contracts, as defined in Fiscal Rule 3-3 (State Contracts), and Grants, as defined
in Fiscal Rule 3-4 (Grants), for the State Agency over which the individual has
authority on behalf of the Governor or another Elective Officer may delegate that
signature authority as described in the State Controller Contract, Grant, and
Purchase Order Policies.
3.1.2.
The Chief Executive Officer of an Institution of Higher Education who has
authority to sign State Contracts, as defined in Fiscal Rule 3-3 (State Contracts),
and Grants, as defined in Fiscal Rule 3-4, for the Institution of Higher Education
over which the individual has authority on behalf of the Governor may delegate
that signature authority as described in the State Controller Contract, Grant, and
Purchase Order Policies.
3.2.
State Controller Delegation
3.2.1.
The State Controller may delegate authority as permitted under §§24-30-201 and
24-30-202, C.R.S., and these Fiscal Rules, by entering into a delegation
agreement with the individual to whom the State Controller is delegating that
authority. Delegated authority may include the following:
3.2.1.1. The authority to approve and sign Commitment Vouchers as the final
State signatory, as required under §24-30-202, C.R.S., and as described
in the State Controller Contract, Grant, and Purchase Order Policies.
3.2.1.2. The authority for Pre-audit responsibilities under §24-30-201(1)(h),
C.R.S.,
3.2.1.3. Internal controls and system security administration under §24-30-
201(1)(f), C.R.S
ng:
3.2.1.1. The authority to approve and sign Commitment Vouchers as the final
State signatory, as required under §24-30-202, C.R.S., and as described
in the State Controller Contract, Grant, and Purchase Order Policies.
3.2.1.2. The authority for Pre-audit responsibilities under §24-30-201(1)(h),
C.R.S.,
3.2.1.3. Internal controls and system security administration under §24-30-
201(1)(f), C.R.S.
3.3.
Chief Information Officer Signature Authority
3.3.1.
The State’s Chief Information Officer, defined in §24-37.5-102(3), C.R.S., may
delegate the authority to approve and sign Commitment Vouchers for Major
Information Technology Projects, as required under §24-30-202(1), C.R.S., and
as described in the State Controller Contract, Grant, and Purchase Order
Policies.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
10
CHAPTER 2:
DISBURSEMENT
RULE 2-1: PROPRIETY OF EXPENDITURES
RULE 2-2: RECEIVING REPORTS
RULE 2-3: PAYMENT TERMS
RULE 2-4: OFFICIAL FUNCTIONS AND TRAINING FUNCTIONS
RULE 2-5: MISCELLANEOUS COMPENSATION AND OTHER BENEFITS (PERQUISITES)
RULE 2-6: MOVING AND RELOCATION
RULE 2-7: STATE COMMERCIAL CARDS
RULE 2-1:
PROPRIETY OF EXPENDITURES
1.
AUTHORITY
§24-77-101, et seq., C.R.S. (Fiscal Year Spending Limits)
§24-30-202(2), and (5)(a), C.R.S. (Propriety of Expenditures)
2.
DEFINITIONS
2.1.
Donation – Property, services, or money given without receiving consideration for the
transfer. The term “Donation” does not include the State’s purchase of any good or
service; Grants, as defined in Fiscal Rule 3-4 (Grants), where the grantee is required to
provide an accounting of funds and progress reports regarding the work performed;
restitution or court judgments; services provided by individuals in their individual capacity;
or payments to or on behalf of beneficiaries of State programs defined in State statute or
regulations.
3.
RULE
All expenditures by State Agencies and Institutions of Higher Education shall meet the following
standards of propriety:
3.1
counting of funds and progress reports regarding the work performed;
restitution or court judgments; services provided by individuals in their individual capacity;
or payments to or on behalf of beneficiaries of State programs defined in State statute or
regulations.
3.
RULE
All expenditures by State Agencies and Institutions of Higher Education shall meet the following
standards of propriety:
3.1.
Are for official State Business, as defined in Fiscal Rule 5-1 (Travel), purposes only;
3.2.
Are reasonable and necessary under the circumstances;
3.3.
Are authorized by the appropriation and required approvals have been received;
3.4.
Prices or rates are fair and reasonable;
3.5.
Amount is within the available unencumbered balance or is within the balance
encumbered specifically for the expenditure; and
3.6.
Comply with the Procurement Code, applicable statutes, executive orders, rules, and
policies.
State Agencies and Institutions of Higher Education shall not make a Donation to any
other entity or individual unless specifically permitted by statute.
All expenditures by State Agencies and Institutions of Higher Education recorded in a
State fiscal year shall be for services performed or goods received by the last day of that
fiscal year.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
11
RULE 2-2:
RECEIVING REPORTS
1.
AUTHORITY
§24-30-202 (1), C.R.S. (State Controller Authority to Determine Payment Processes)
2.
RULE
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. This information shall be certified by the
recipient of the goods or services.
3.
EXCEPTIONS TO RULE
3.1.
A receiving report need not be prepared for personal service expenditures.
3.2
ufficient 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. This information shall be certified by the
recipient of the goods or services.
3.
EXCEPTIONS TO RULE
3.1.
A receiving report need not be prepared for personal service expenditures.
3.2.
When an adequate system of internal accounting and administrative controls exists to
provide sufficient verification that goods or services were received, a State Agency or
Institution of Higher Education may choose not to require a signed receiving report.
RULE 2-3:
PAYMENT TERMS
1.
AUTHORITY
§24-30-202 (1), C.R.S. (State Controller Authority to Determine Payment Processes)
§24-30-202.4 (3.5) C.R.S. (Vendor Offset)
2.
DEFINITIONS
2.1.
Common Policy Payment – A payment made by a State Agency to another State Agency
with an internal service fund, such as the Governor’s Office of Information Technology,
the Department of Personnel & Administration, or the Department of Law, for services
provided by those State Agencies to multiple other State Agencies. The General
Assembly provides spending authority to both the State Agency purchasing the services
and the State Agency providing the services.
2.2.
Delinquent Payable – 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 Commitment Voucher. A Payable being disputed by a contractor or State Agency
or Institution of Higher Education shall become delinquent if a disbursement is not made
within forty-five days after resolution of the dispute.
2.3.
Payable – A Payable is a liability incurred by the State. A liability shall arise upon receipt
of supplies and services and a correct notice of the amount due
rovided
in the Commitment Voucher. A Payable being disputed by a contractor or State Agency
or Institution of Higher Education shall become delinquent if a disbursement is not made
within forty-five days after resolution of the dispute.
2.3.
Payable – A Payable is a liability incurred by the State. 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 State Agency’s or Institution of Higher Education's
obligation to pay all or a portion of the liability.
2.4.
Payment Terms – Contractual obligations between a State Agency or Institution of Higher
Education and a contractor regarding timing, amount, and preconditions of payment, as
evidenced in a Commitment Voucher or on an invoice.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
12
3.
RULE
3.1.
Payment on Time
3.1.1.
Payments shall be processed in a timely manner and made within the allowable
discount period to ensure the State Agency or Institution of Higher Education
takes advantage of purchase discounts, if economically beneficial to the State.
All payment processing timelines shall begin upon the acceptance of a correct
invoice by the State Agency or the Institution of Higher Education and the
delivery of goods or completion of the services provided unless specifically stated
otherwise in a Commitment Voucher.
3.2.
Interest Payment on Delinquent Payables
3.2.1.
State Agencies and Institutions of Higher Education 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 1% per month or such other amount as
may be required by §24-30-202(24), C.R.S. State Agencies and Institutions of
Higher Education may pay other amounts as required by contract
er 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 1% per month or such other amount as
may be required by §24-30-202(24), C.R.S. State Agencies and Institutions of
Higher Education may pay other amounts as required by contract. All
Commitment Vouchers 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-fifth day after the liability for such payment arises under this Fiscal Rule.
The liability arises when a State Agency or Institution of Higher Education has
received and accepted a correct notice of the amount due.
3.3.
Interagency Purchases and Payments
3.3.1.
A State Agency or Institution of Higher Education 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. Where possible
and practical payments shall be made by an interagency document in lieu of a
state warrant.
3.4.
Disputes Arising from Interagency Agreements
See Fiscal Rule 3-5 Interagency Agreements, §7.
3.5.
Vendor Intercepts
3.5.1.
State Agencies and Institutions of Higher Education may direct the State
Controller to withhold an amount, not to exceed the unpaid balance or debts
owed to the State by a contractor prior to disbursement of payment in
accordance with §24-30-202.4(3.5)(a)(I), C.R.S.
3.5.2.
For State Agencies that utilize the State Financial System, the State Financial
System automatically withholds the unpaid balance of debts owed to the State,
as identified by an intercepting State Agency prior to disbursement to a vendor
as outlined in the statute. Payment is then transmitted to the intercepting State
Agency
ment of payment in
accordance with §24-30-202.4(3.5)(a)(I), C.R.S.
3.5.2.
For State Agencies that utilize the State Financial System, the State Financial
System automatically withholds the unpaid balance of debts owed to the State,
as identified by an intercepting State Agency prior to disbursement to a vendor
as outlined in the statute. Payment is then transmitted to the intercepting State
Agency. State Agencies and Institutions of Higher Education that do not use the
State Financial System shall be responsible for ensuring compliance with §24-
30-202.4(3.5)(a)(I), C.R.S. by creating their own internal withholding procedures.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
13
3.6.
Unpaid Warrants and Payables
3.6.1.
A State Agency or Institution of Higher Education that has an unpaid warrant or
check shall perform due diligence to identify if the payable is valid. If valid, the
State Agency or Institution of Higher Education shall reissue payment to a
contractor or vendor. A check or warrant that is presumed abandoned under §38-
13-201, C.R.S., shall be transferred to the unclaimed property trust fund as
described in §38-13-603, C.R.S.
3.6.2.
For State Agencies that utilize the State Financial System, transfer of unpaid
warrants or checks to the unclaimed property trust fund and completion of
reporting requirements is coordinated by the Office of the State Controller after
State Agencies complete their due diligence. State Agencies and Institutions of
Higher Education that do not use the State Financial System shall be responsible
for ensuring compliance with the statute by creating their own internal
procedures.
RULE 2-4:
OFFICIAL FUNCTIONS AND TRAINING FUNCTIONS
1.
AUTHORITY
§24-30-202 (1), C.R.S. (State Controller Authority to Determine Processes for Payment of
Liabilities)
2.
DEFINITIONS
2.1
due diligence. State Agencies and Institutions of
Higher Education that do not use the State Financial System shall be responsible
for ensuring compliance with the statute by creating their own internal
procedures.
RULE 2-4:
OFFICIAL FUNCTIONS AND TRAINING FUNCTIONS
1.
AUTHORITY
§24-30-202 (1), C.R.S. (State Controller Authority to Determine Processes for Payment of
Liabilities)
2.
DEFINITIONS
2.1.
Official Function – A meeting, conference, meal, training, or other function that is hosted
by the Chief Executive Officer, or representative, of a State Agency or Institution of
Higher Education, attended by guests and/or State employees, held for official State
Business, as defined in Fiscal Rule 5-1 (Travel), purposes and includes an expenditure of
State funds.
3.
RULE
3.1.
Official Functions that include purchases of food and beverages have the potential of
being perceived to be for personal benefit and an abuse of public funds. Attendance shall
include only those individuals directly related to the purpose of the function. Purchases of
food and beverages should be kept to a minimum and shall be approved by the Chief
Executive Officer or by a representative of the State Agency or Institution of Higher
Education who has been delegated authority by the Chief Executive Officer. All
expenditures associated with an Official Function must meet the requirements in Fiscal
Rule 2-1 (Propriety of Expenditures).
3.2.
Permissible and prohibited Official Functions are further defined in the State Controller
Fiscal Policies.
3.3.
For all purchases of food, beverages, and other allowable expenditures, State Agencies
and Institutions of Higher Education shall maintain documentation that includes the
following:
3.3.1.
Description of Official Function;
3.3.2.
Justification for food and beverages;
3.3.3.
Attendees; and
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
Controller
Fiscal Policies.
3.3.
For all purchases of food, beverages, and other allowable expenditures, State Agencies
and Institutions of Higher Education shall maintain documentation that includes the
following:
3.3.1.
Description of Official Function;
3.3.2.
Justification for food and beverages;
3.3.3.
Attendees; and
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
14
3.3.4.
Chief Executive Officer or delegate approval.
RULE 2-5:
MISCELLANEOUS COMPENSATION AND OTHER BENEFITS (PERQUISITES)
1.
AUTHORITY
§24-2-103, C.R.S. (Compensation for Exempt State Officers and Employees)
§24-30-202(22), C.R.S. (State Controller Authority for Allowing Perquisites)
2.
DEFINITIONS
2.1.
Fringe Benefits – Any benefit described in §24-50-104(1)(g), C.R.S., including, without
limitation, insurance, retirement and leaves of absence with or without pay.
2.2.
Metropolitan Area – A region including a city and the densely populated surrounding
areas that are socially and economically integrated with it. See State Controller Travel
Policies.
2.3.
Perquisite – Any payment, benefit or privilege provided by the State to a State employee
other than the following, which are not considered Perquisites:
2.3.1.
Salary;
2.3.2.
Fringe benefits;
2.3.3.
Incentives and awards;
2.3.4.
Travel and non-travel related reimbursements;
2.3.5.
State sponsored job related training;
2.3.6.
Temporary housing provided to employees who are working at a work location
that is not in the same Metropolitan Area as the employee’s normal work
location;
2.3.7.
Permanent housing on State property, provided for the benefit of the State,
where the employee is required to stay as a condition of employment;
2.3.8.
The provision of faculty housing or student apartments by Institutions of Higher
Education;
2.3.9
sing provided to employees who are working at a work location
that is not in the same Metropolitan Area as the employee’s normal work
location;
2.3.7.
Permanent housing on State property, provided for the benefit of the State,
where the employee is required to stay as a condition of employment;
2.3.8.
The provision of faculty housing or student apartments by Institutions of Higher
Education;
2.3.9.
Housing or a housing allowance provided to the Chief Executive Officer of an
Institution of Higher Education as part of that individual’s employment contract
consistent with policies developed by the Commission on Higher Education and
approved by the State Controller;
2.3.10. Uniforms that are required to be worn by State employees and the necessary
maintenance of these uniforms, so long as the uniform is worn as a condition of
employment, is not suitable for everyday wear, is distinctive to a particular group,
and serves as a means of identification; and
2.3.11. Employee discounts offered to all State employees.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
15
3.
RULE
A State employee shall not have the authority to grant any Perquisites, nor shall any State
employee receive any Perquisite except as provided by State statute or this Fiscal Rule.
Monetary allowances shall not be given to State employees in lieu of Fringe Benefits, except as
provided by State statute or approved by the State Controller. Where State statutes provide
allowances for maintenance and ordinary expenses incurred in the performance of duty, it is the
responsibility of the Chief Executive Officer of the State Agency or Institution of Higher Education
to establish specific expenses that are covered by the allowance so that the same expenses are
not also directly reimbursed. A State Agency or Institution of Higher Education may provide any
payment, benefit, or privilege to a State employee, that is not considered a Perquisite, in its sole
discretion
ponsibility of the Chief Executive Officer of the State Agency or Institution of Higher Education
to establish specific expenses that are covered by the allowance so that the same expenses are
not also directly reimbursed. A State Agency or Institution of Higher Education may provide any
payment, benefit, or privilege to a State employee, that is not considered a Perquisite, in its sole
discretion. If a State Agency or Institution of Higher Education provides a Perquisite allowed
under this Fiscal Rule, then it shall equitably determine which State employees are eligible to
receive such Perquisites.
3.1.
Allowed Perquisites
3.1.1.
Clean Air Transit Perquisite for State Employees – A State Agency or
Institution of Higher Education may offer a clean air transit Perquisite to its
employees on an equal basis to all permanent full-time employees within the
geographic area served by the mass transit provider and, if deemed appropriate
by such State Agency or Institution of Higher Education, also may be offered on
an equal basis to all of its part-time employees within the same geographic area.
3.1.1.1. Clean air transit perquisites for State employees may include mass-
transit passes, such as the Regional Transportation District EcoPass,
provided to State employees at a reduced or no cost; the provision of
electric vehicle charging stations for use by State employees at a
reduced or no cost; or any other Perquisite intended to reduce the effects
of State employee transit on air quality as may be determined by the
State Controller in the State Controller Policies.
3.1.2.
passes, such as the Regional Transportation District EcoPass,
provided to State employees at a reduced or no cost; the provision of
electric vehicle charging stations for use by State employees at a
reduced or no cost; or any other Perquisite intended to reduce the effects
of State employee transit on air quality as may be determined by the
State Controller in the State Controller Policies.
3.1.2.
Events Sponsored by State Agencies and Institutions of Higher
Education – A reasonable discount may be offered by a State Agency or
Institution of Higher Education to State Officials, defined in Fiscal Rule 5-1
(Travel) and State employees to improve attendance or participation in State
sponsored events. Examples include discounts on admission to athletic games
and cultural, educational, recreational, or other events.
3.1.3.
Meals – Meals prepared at State dining facilities are primarily for the benefit of
the students, patients, or inmates housed at these facilities. However, a State
Agency or Institution of Higher Education may provide meals to State employees
working at these facilities.
3.1.4.
Instructional Courses and Job Related Training – A State Agency or Institution of
Higher Education may provide job related and career enhancement courses to
State employees that are not sponsored by the State or may provide tuition
reimbursement for such courses and training. A State Agency or Institution of
Higher Education may only offer or provide tuition reimbursement for courses
and training that will benefit the State and enhance the employee's performance.
Such instructional courses and job related training may include, without limitation,
continuing education courses for licensed professionals, regardless of whether
such license is a mandatory requirement of the employee’s position; courses
provided by private entities to enhance job-related skills; and courses provided
by public or private colleges and universities, including State Institutions of
Higher Education.
courses and job related training may include, without limitation,
continuing education courses for licensed professionals, regardless of whether
such license is a mandatory requirement of the employee’s position; courses
provided by private entities to enhance job-related skills; and courses provided
by public or private colleges and universities, including State Institutions of
Higher Education.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
16
3.1.5.
State Housing Provided to State Employees – A State Agency or Institution of
Higher Education may provide housing for a State employee where State-owned
facilities are available and it is in the best interest of the State. If the employee
will pay any rent or otherwise be charged for the housing, then the State Agency
or Institution of Higher Education shall execute a rental agreement with the State
employee. If the rented unit does not have separate utility meters, the State
Agency or Institution of Higher Education shall also include in the rental
agreement payment for the estimated utility costs.
3.1.5.1. A State employee may be provided housing as a condition of
employment for reasons that may include the employee is required to
live in the State facility, the State employee is required to be available
twenty-four hours a day to perform the assigned duties, the State
employee is required to live in close proximity to the State facility in order
to provide protection or discourage trespassers from entering the
property, or the State employee’s work location is in a remote area that is
difficult to reach and has no housing available other than State furnished
housing.
3.1.6.
De Minimis Employee Appreciation Items – A State Agency or Institution of
Higher Education may provide non-cash awards, items of clothing, meals and
other items intended to show employee appreciation, so long as those items are
de minimis
rty, or the State employee’s work location is in a remote area that is
difficult to reach and has no housing available other than State furnished
housing.
3.1.6.
De Minimis Employee Appreciation Items – A State Agency or Institution of
Higher Education may provide non-cash awards, items of clothing, meals and
other items intended to show employee appreciation, so long as those items are
de minimis. The State Controller may issue policies regarding the frequency with
which such items may be provided and the value of those items that are
considered de minimis. Cash awards or cash equivalents, for example gift cards,
in any amount are not de minimis and are taxable to the employee.
3.1.7.
Bookstore Discounts – An Institution of Higher Education may provide equitable
discounts for its faculty members and employees for purchases at its bookstores.
3.1.8.
Commuter Use of State Owned Vehicles – A State Agency or Institution of
Higher Education may provide a State owned vehicle to an employee to use for
commuting purposes when the State Agency or Institution of Higher Education
determines that the employee requires the use of the State owned vehicle for
work purposes and also allowing the employee to use the State owned vehicle
for commuting is the most efficient use of State fleet resources, as described in
Fiscal Rule 9-6 (Miscellaneous Compensation).
4.
PAYMENTS FOR PERQUISITES
4.1.
A State Agency or Institution of Higher Education that provides any Perquisite to a State
employee may choose to either provide that Perquisite without cost to the employee or
may charge the employee for that Perquisite. For each Perquisite offered by a State
Agency or Institution of Higher Education for which an employee is charged, the Chief
Executive Officer of that State Agency or Institution of Higher Education shall annually
determine the amount that the agency will charge its employees. All such charges shall
be equitable for all employees to whom the Perquisite is offered.
4.2
employee for that Perquisite. For each Perquisite offered by a State
Agency or Institution of Higher Education for which an employee is charged, the Chief
Executive Officer of that State Agency or Institution of Higher Education shall annually
determine the amount that the agency will charge its employees. All such charges shall
be equitable for all employees to whom the Perquisite is offered.
4.2.
If a State Agency or Institution of Higher Education will charge a State employee for any
Perquisite, then the State Agency or Institution of Higher Education shall make a payroll
deduction from that employee’s pay in the amount of the charges for such Perquisites
received by that employee.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
17
5.
TAXABILITY OF PERQUISITES
State Agencies and Institutions of Higher Education shall report all payments for Perquisites in
accordance with the Internal Revenue Code and its implementing regulations. State Agencies and
Institutions of Higher Education shall report all taxable Perquisites received by State employees in
accordance with the Internal Revenue Code and its implementing regulations, and State Controller Fiscal
Policies.
RULE 2-6:
MOVING AND RELOCATION
1.
AUTHORITY
§24-50-134, C.R.S. (Moving and Relocation Expenses)
§24-9-104, C.R.S. (Mileage Allowances)
Internal Revenue Service Publication 521 (Moving Expenses)
2.
DEFINITIONS
2.1.
Incidental Expenses – See Fiscal Rule 5-1 (Travel).
2.2.
Moving Expenses – Reasonable expenses of moving a State employee’s Household
Goods and Personal Effects to the State employee’s new home and reasonable costs of
traveling to an employee’s new residence.
2.3.
Household Goods and Personal Effects – This includes household and personal effects
such as furniture, clothing, musical instruments, household appliances, foods, and other
items that are usual and necessary for the maintenance of a household.
2.4.
Lodging – See Fiscal Rule 5-1 (Travel).
2.5
cts to the State employee’s new home and reasonable costs of
traveling to an employee’s new residence.
2.3.
Household Goods and Personal Effects – This includes household and personal effects
such as furniture, clothing, musical instruments, household appliances, foods, and other
items that are usual and necessary for the maintenance of a household.
2.4.
Lodging – See Fiscal Rule 5-1 (Travel).
2.5.
Relocation Expenses – Relocation expenses are equal to the total per diem for the
destination location in the latest per diem rates published by the U.S. General Services
Administration. The total per diem includes the lodging per diem rate plus the meals and
Incidental Expense (M&IE) rate.
2.6.
Transportation – See Fiscal Rule 5-1 (Travel).
3.
RULE
When an employee in the State personnel system, other than an Elective Officer, qualifies for
moving, such State employee shall be allowed moving expenses as set forth in §3.1. In addition,
such State employee shall be allowed relocation expenses up to a maximum of thirty days for
necessary expenses incurred while relocating to a permanent residence. The State Agency or
Institution of Higher Education shall not reimburse or pay moving expenses for a State employee
when the move is made solely for personal reasons. Moving expenses shall be authorized by the
Chief Executive Officer, or a delegate, of a State Agency or Institution of Higher Education if the
move of residence is occasioned by a change in assignment, a promotion, or for another reason
related to the State employee's duties. This rule does not apply to new hires.
3.1.
Employee Qualification for Moving Expenses
A State employee must meet all of the following conditions to qualify for moving
expenses under this Fiscal Rule:
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
dence is occasioned by a change in assignment, a promotion, or for another reason
related to the State employee's duties. This rule does not apply to new hires.
3.1.
Employee Qualification for Moving Expenses
A State employee must meet all of the following conditions to qualify for moving
expenses under this Fiscal Rule:
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
18
3.1.1.
An appointing authority requires the State employee to change the employee’s
primary place of residence because of a change in assignment or a promotion or
for any other reason related to the employee’s duties. See §24-50-134, C.R.S.;
and
The State employee’s move is closely related to the start of work, both in time
(move occurs within one year from the date the employee first reported to work at
the new location) and in place (the distance from employee’s new home to the
new job location is less than the distance from the employee’s former home to
the new job location).
3.2.
Moving Expenses
3.2.1.
Moving of Household Goods and Personal Effects – Overall
3.2.1.1. The State employee shall obtain at least two competitive bids and submit
those bids when the employee seeks reimbursement. State payment
shall be made at the rate proposed in the lowest responsible bid.
3.2.1.2. The amount of moving expenses shall be reasonable and necessary
under the circumstances.
3.2.2.
Moving of Household Goods and Personal Effects – Commercial Mover
3.2.2.1. Moving expenses include packing, insurance, Transportation, and
storage not to exceed thirty days, unpacking, and installation at the new
location of the State employee's Household Goods and Personal Effects.
Moving expenses also include charges by commercial vendors for towing
of mobile homes.
3.2.2.2. Upon approval by the State Controller or an individual with a delegation
from the State Controller, the State employee may arrange for the
commercial mover to bill the State Agency or Institution of Higher
Education directly.
3.2.3
w
location of the State employee's Household Goods and Personal Effects.
Moving expenses also include charges by commercial vendors for towing
of mobile homes.
3.2.2.2. Upon approval by the State Controller or an individual with a delegation
from the State Controller, the State employee may arrange for the
commercial mover to bill the State Agency or Institution of Higher
Education directly.
3.2.3.
Moving of Household Goods and Personal Effects – Employee Moves Household
Goods and Personal Effects
3.2.3.1. A State employee may move Household Goods and Personal Effects by
rental trailer or truck, or portable moving container, in lieu of using a
commercial mover, and shall be reimbursed for the actual cost of using
that trailer, truck, or portable moving container, so long as such costs are
reasonable.
3.2.3.2. If the State employee uses the State employee’s vehicle to move, the
State employee shall be entitled to the standard State mileage rate for
moving, not travel.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
19
3.3.
Relocation Expenses
3.3.1.
A State employee shall receive the per diem allowance up to a maximum of thirty
days for necessary expenses incurred while locating permanent residence at the
new location. The thirty days shall not extend beyond ninety consecutive days.
The per diem shall consist of the Lodging, meals, and Incidental Expenses rate
for the destination location published by the U.S. General Services
Administration. The employee shall pay for these expenses and submit a
reimbursement request. The employee may exclude interruptions caused by sick
leave, vacation, other authorized leave of absence, or ordered travel. The
maximum amount paid for the per diem allowance shall not exceed the daily rate
multiplied by thirty days.
3.3.2.
A State employee shall receive reimbursement for mileage to and from the
present location and the destination location up to a maximum of thirty days
request. The employee may exclude interruptions caused by sick
leave, vacation, other authorized leave of absence, or ordered travel. The
maximum amount paid for the per diem allowance shall not exceed the daily rate
multiplied by thirty days.
3.3.2.
A State employee shall receive reimbursement for mileage to and from the
present location and the destination location up to a maximum of thirty days. The
mileage shall be reimbursed at the prevailing mileage rate in accordance with
§24-9-104, C.R.S. (Mileage Allowances).
Sales Tax for Moving and Relocation Expenses - A State employee shall receive reimbursement for sales
taxes paid for Moving and Relocation Expenses. State agencies shall report such amounts as taxable
income.
RULE 2-7:
STATE COMMERCIAL CARDS
1.
AUTHORITY
State of Colorado Procurement Rules – 1 CCR 101-9
§24-102-207, C.R.S. (Statewide Procurement Card)
2.
DEFINITIONS
2.1.
Commercial Card Program – All card (Procurement, Travel, One Card) accounts and
services provided to the State and participating entities by a bank.
2.2.
Commercial Cards – State issued payment cards including Procurement Cards, Travel
Cards, and One Cards.
2.3.
Procurement Card – Commercial Card used for small purchases of general merchandise
and services as governed by State statutes, the Procurement Rules, and these Fiscal
Rules. A Procurement Card is a corporate liability card.
2.4.
Travel Card – Commercial Card used for travel related purchases as governed by State
statutes, State travel rules, and these Fiscal Rules. A Travel Card may be centrally billed
(corporate liability) or individually billed (individual or joint and several liability).
2.5.
One Card – Commercial Card combining the functionality of both the Procurement Card
and the Travel Card. A One Card is a corporate liability card.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
tate travel rules, and these Fiscal Rules. A Travel Card may be centrally billed
(corporate liability) or individually billed (individual or joint and several liability).
2.5.
One Card – Commercial Card combining the functionality of both the Procurement Card
and the Travel Card. A One Card is a corporate liability card.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
20
3.
RULE
All State Agencies and participating Institutions of Higher Education eligible for the State
Commercial Card Programs shall enter into an agreement with the applicable State Commercial
Card Program to participate. State Agencies and Institutions of Higher Education may not enroll
in other credit or debit card program agreements (including store credit or other extension of
credit).
3.1.
Personal Services – Commercial Cards may be used to pay for services as well as
goods. Under present Internal Revenue Service guidelines, it is the responsibility of the
banking institution to fulfill 1099 reporting requirements.
3.2.
Purchases in Excess of $10,000 – If authorized by the Chief Fiscal Officer of the State
Agency or Institution of Higher Education, Commercial Cards may be used to pay
invoices in excess of $10,000. Commercial Cards are a method of payment. Use of the
Commercial Card is not a substitute for a Commitment Voucher or Encumbrance, as
required by and defined in Fiscal Rule 3-1 (Commitment Vouchers).
3.3.
Audit Responsibility – Use of the Commercial Card does not eliminate the need for an
audit, which shall be completed within 60 days of the date the disbursement is made to
the bank. The State Agency or Institution of Higher Education is responsible for
reconciling the disbursements made to the bank with the total of validated individual
charges for the State Agency or Institution of Higher Education. The dispute mechanism
in the card agreement shall be used when charges from the bank are challenged.
3.4.
Annual Commercial Card Reporting
3.4.1
disbursement is made to
the bank. The State Agency or Institution of Higher Education is responsible for
reconciling the disbursements made to the bank with the total of validated individual
charges for the State Agency or Institution of Higher Education. The dispute mechanism
in the card agreement shall be used when charges from the bank are challenged.
3.4.
Annual Commercial Card Reporting
3.4.1.
State Agencies and participating Institutions of Higher Education shall review all
Commercial Card payments and submit a report annually to the Office of the
State Controller by November 1 of each year. The report shall include all
incidents of State Commercial Card misuse that are recurring, significant, or in
excess of $500. State Agencies and participating Institutions of Higher Education
shall submit a report even if the Agency Institution has no instances of misuse.
3.4.2.
The report shall include results of any investigation or follow-up including
corrective measures implemented to prevent or reduce the likelihood of future
occurrences. Misuse include actions such as the purchase of goods/services or
travel related transactions for personal use, splitting a purchase to circumvent
single purchase dollar limits or cardholder credit limits, travel related transactions
on the Procurement Card, purchasing related transactions on the Travel Card, or
any other unauthorized transactions disallowed by State Agency or Institution of
Higher Education policy. Incidents of suspected Commercial Card theft or
embezzlement after investigation shall be reported according to Fiscal Rule 1-2
(Internal Controls).
3.5.
Monitoring and Training – Administrators of Commercial Card Programs shall ensure
compliance with card agreements, monitor proper usage of the card, and provide
direction to State Agencies and Institutions of Higher Education on proper use of the
card.
3.6
of suspected Commercial Card theft or
embezzlement after investigation shall be reported according to Fiscal Rule 1-2
(Internal Controls).
3.5.
Monitoring and Training – Administrators of Commercial Card Programs shall ensure
compliance with card agreements, monitor proper usage of the card, and provide
direction to State Agencies and Institutions of Higher Education on proper use of the
card.
3.6.
Cardholders – State Agencies and Institutions of Higher Education shall only issue a
Commercial Card to permanent State employees and shall not issue a State Commercial
Card to contractors, temporary State employees, or non-State employees.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
21
CHAPTER 3:
COMMITMENT VOUCHERS
RULE 3-1: COMMITMENT VOUCHERS
1.
Authority
2.
Definitions
3.
Rule
4.
Commitment Vouchers
5.
Dollar Limits and Requirements
6.
Prohibited Terms and Limitations
7.
Commitment Voucher Approvals
8.
Statutory Violations
9.
Advance Payments
10.
Requirements for Personal Services Commitment Vouchers
11.
Disbursements for Emergency Procurements
12.
Vendor Agreements
13.
Independent Contractor Relationship
RULE 3-2: PURCHASE ORDERS
RULE 3-3: STATE CONTRACTS
RULE 3-4: GRANTS
RULE 3-5: INTERAGENCY AGREEMENTS
RULE 3-1:
COMMITMENT VOUCHERS
1.
AUTHORITY
State of Colorado Procurement Rules – 1 CCR 101-9
§24-30-202 (1-4), and (5)(a), C.R.S. (State Controller Authority)
§24-30-1401, et seq., C.R.S. (Professional Services)
§24-91-103, C.R.S. (Public entity - Contracts - Partial Payments)
§24-101-101, et seq., C.R.S. (Procurement Code)
§24-102-206, C.R.S. (Contract Performance Outside the United States or Colorado)
§24-106-103, C.R.S. (Centralized Contract Management System)
§24-106-106, C.R.S. (Right to Audit Records)
§24-106-107, C.R.S. (Monitoring of Vendor Performance)
§38-26-106, C.R.S. (Contractor Executes Bond - Applicability)
§38-26-107, C.R.S. (Final Settlement and Notice - Withholding Funds)
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
the United States or Colorado)
§24-106-103, C.R.S. (Centralized Contract Management System)
§24-106-106, C.R.S. (Right to Audit Records)
§24-106-107, C.R.S. (Monitoring of Vendor Performance)
§38-26-106, C.R.S. (Contractor Executes Bond - Applicability)
§38-26-107, C.R.S. (Final Settlement and Notice - Withholding Funds)
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
22
2.
DEFINITIONS
All references to “contract” or “agreement” refer to legally binding documents between the State
and another party or documents describing the agreement between State Agencies and
Institutions of Higher Education. The terms “contract”, and “agreement” are used interchangeably
in the following definitions to reflect their common usage in the State and include any
amendments and modifications thereto.
2.1.
Advance Payment – A payment made for goods or services prior to the receipt and
acceptance of the goods or the completion and acceptance of the services as well as a
payment made in advance of performance for any contractual or grant obligation.
2.2.
Advice of Employment – A document that includes an offer of employment.
2.3.
Chief Information Officer – See §24-35.7-102(3), C.R.S.
2.4.
Chief Procurement Officer. See §24-101-301(6), C.R.S.
2.5.
Contract – Any Commitment Voucher that constitutes a State Contract or Purchase Order
under this Fiscal Rule, where the principal purpose is to acquire supplies, services, or
construction or to dispose of supplies for the direct benefit of the State.
2.6.
Commercial Cards – See Fiscal Rule 2-7 (State Commercial Cards).
2.7.
Commitment Voucher – A document that authorizes the purchase of goods or services,
encumbers the funds, and provides for disbursement of funds, in a form approved by the
State Controller. Examples include: Purchase Order, State Contract, Grant Agreement,
and Small Purchase Documentation. See §4 of Fiscal Rule 3-1 (Commitment Vouchers).
2.8
Cards – See Fiscal Rule 2-7 (State Commercial Cards).
2.7.
Commitment Voucher – A document that authorizes the purchase of goods or services,
encumbers the funds, and provides for disbursement of funds, in a form approved by the
State Controller. Examples include: Purchase Order, State Contract, Grant Agreement,
and Small Purchase Documentation. See §4 of Fiscal Rule 3-1 (Commitment Vouchers).
2.8.
Disaster Emergency – Emergency declared in an executive order issued by the Governor
of the State of Colorado pursuant to Article IV, of the Colorado Constitution and the
relevant portions of the Colorado Disaster Emergency Act §24-33.5-701, et seq. C.R.S. A
declaration of a disaster emergency does not create an Emergency Procurement defined
in §2.9 of this Fiscal Rule.
2.9.
Emergency Procurement – A procurement authorized by the Department of Personnel &
Administration’s Executive Director, the Chief Procurement Officer, the Procurement
Official defined in§24-101-301(30), of a Principal Department, or a designee of any of
them when there exists a threat to public health, welfare, or safety under emergency
conditions. See §24-103-206, C.R.S. Emergency conditions create an immediate and
serious need for supplies, services, or construction that cannot be met through normal
procurement methods and lack of which would seriously threaten:
2.9.1.
The functions of State government and its programs;
2.9.2.
The preservation or protections of property; or
2.9.3.
The health or safety of any person or persons. See Procurement Rule R-24-103-
206-1 Definition of Emergency Conditions.
2.10.
Encumbrance – An amount reserved on the State Financial System or an approved State
Agency or Institution of Higher Education financial system to reflect a formal obligation of
the State.
2.11.
Financing – The receipt of a loan or issuance of bonds or certificates of participation.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
finition of Emergency Conditions.
2.10.
Encumbrance – An amount reserved on the State Financial System or an approved State
Agency or Institution of Higher Education financial system to reflect a formal obligation of
the State.
2.11.
Financing – The receipt of a loan or issuance of bonds or certificates of participation.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
23
2.12.
GAAP – See Fiscal Rule 1-1 (Accounting Principles and Standards).
2.13.
Grant – See Fiscal Rule 3-4 (Grants).
2.14.
Interagency Agreement – See Fiscal Rule 3-5 (Interagency Agreements).
2.15.
Major Information Technology Project – See §24-37.5-102(19), C.R.S.
2.16.
Party – An individual or entity who is not a State 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 State Agencies or Institutions of Higher Education.
2.17.
Personal Services Commitment Voucher – A Commitment Voucher between a State
Agency or Institution of Higher Education and a Party, where the Party provides labor,
time, or effort for the direct benefit of the State. An individual or entity performing services
under a Personal Services Commitment Voucher is an independent contractor and not an
employee of the State.
2.18.
Procurement Official – The head of the procurement function for an Institution of Higher
Education or a State Agency who has received delegation from the State’s Chief
Procurement Officer.
2.19.
Purchase – The act of incurring an obligation on behalf of the State in order to acquire
goods or services from another entity.
2.20.
Purchase Order or PO – See Fiscal Rule 3-2 (Purchase Orders).
2.21.
Small Dollar Grant Award – See Fiscal Rule 3-4 (Grants).
2.22
n for an Institution of Higher
Education or a State Agency who has received delegation from the State’s Chief
Procurement Officer.
2.19.
Purchase – The act of incurring an obligation on behalf of the State in order to acquire
goods or services from another entity.
2.20.
Purchase Order or PO – See Fiscal Rule 3-2 (Purchase Orders).
2.21.
Small Dollar Grant Award – See Fiscal Rule 3-4 (Grants).
2.22.
Small Purchase Documentation – Documentation of a purchase, which does not require
a Purchase Order, Grant Agreement, Interagency Agreement or State Contract under §4
of this Fiscal Rule, but does require, without limitation, an invoice, billing statement,
itemized receipt, court order, travel authorization, approved Vendor Agreement, or any
other document appropriate to the transaction and approved by the State Controller.
2.23.
State Contract – See Fiscal Rule 3-3 (State Contracts).
2.24.
State Personnel Director – The Executive Director of the Department of Personnel &
Administration.
2.25.
Statutory Violation – Liabilities incurred or payments made on the State’s behalf without
prior approval of a Purchase Order, Grant Agreement, Small Dollar Grant Award, or State
Contract by the State Controller or a proper delegate, when required under this Fiscal
Rule, or without the prior approval of a State Contract by the State’s Chief Information
Officer or a proper delegate for a Major Information Technology Project. An Unauthorized
Purchase does not necessarily constitute a Statutory Violation under these Fiscal Rules.
2.26.
Unauthorized Purchase – A purchase that has occurred or a purchase commitment that
has been issued to a vendor to obtain goods, services, or construction and (i) the issuing
State Agency has not followed the Procurement Code and Rules, or (ii) a purchase or
commitment to purchase is made by a person(s) who is not so authorized. An
Unauthorized Purchase is subject to ratification in accordance with the Procurement
Code and the Procurement Rules. See Procurement Rule 24-109-404-01.
as been issued to a vendor to obtain goods, services, or construction and (i) the issuing
State Agency has not followed the Procurement Code and Rules, or (ii) a purchase or
commitment to purchase is made by a person(s) who is not so authorized. An
Unauthorized Purchase is subject to ratification in accordance with the Procurement
Code and the Procurement Rules. See Procurement Rule 24-109-404-01.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
24
2.27.
Vendor Agreement – Any form of agreement provided by a contractor or vendor,
including an online or “click-through” agreement, containing contractual provisions
relating to the goods and/or services to be provided by such contractor or vendor.
3.
RULE
3.1.
A State Agency or Institution of Higher Education shall not disburse funds unless the
disbursement is supported by a Commitment Voucher and complies with Fiscal Rule 2-1
(Propriety of Expenditures). Prior to entering into Commitment Vouchers for proposed
expenditures, State Agencies and Institutions of Higher Education shall ensure the
following:
3.1.1.
The purchase satisfies all appropriate procurement requirements;
3.1.2.
The Commitment Voucher used meets the requirements for that type of
Commitment Voucher, as defined by Fiscal Rules; and
3.1.3.
The purchase complies with applicable statutes, executive orders, rules, and
policies.
3.2.
In addition to the requirements in §3.1 of this Fiscal Rule, State Agencies and Institutions
of Higher Education shall ensure the following for all Commitment Vouchers, other than
Small Purchase Documentation:
3.2.1.
The Commitment Voucher adequately defines all parties involved in the
transaction, the respective performance obligations of the parties, the maximum
amount payable and pricing, the required performance date, the timing of
payments, and the entity responsible for payments;
3.2.2
Higher Education shall ensure the following for all Commitment Vouchers, other than
Small Purchase Documentation:
3.2.1.
The Commitment Voucher adequately defines all parties involved in the
transaction, the respective performance obligations of the parties, the maximum
amount payable and pricing, the required performance date, the timing of
payments, and the entity responsible for payments;
3.2.2.
The Commitment Voucher terms and conditions represent a commercially
reasonable allocation of risks between the parties and any risks to the State are
outweighed by the benefits to the State; and
3.2.3.
The expenditure is encumbered prior to or concurrently with the execution of the
Commitment Voucher.
3.2.3.1. The Encumbrance of funds is not required for the following:
3.2.3.1.1.
Agreements related to the issuance of Financing where
the payment for that work will be paid out of the proceeds of the
Financing and the State is not obligated to pay if the Financing is
never received by the State;
3.2.3.1.2.
Agreements where the total amount of payments are
calculated as a portion of revenues received, and the State is not
obligated to pay until after the revenues are actually collected;
and
3.2.3.1.3.
Any of the items specified in §5.4 of this Fiscal Rule.
3.2.3.2. Regardless of the total term of a Commitment Voucher, a State Agency
or Institution of Higher Education shall only encumber funds for the
current State fiscal year of the Commitment Voucher, unless the Agency
or Institution of Higher Education has continuous spending authority for
the Commitment Voucher.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
l Rule.
3.2.3.2. Regardless of the total term of a Commitment Voucher, a State Agency
or Institution of Higher Education shall only encumber funds for the
current State fiscal year of the Commitment Voucher, unless the Agency
or Institution of Higher Education has continuous spending authority for
the Commitment Voucher.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
25
4.
COMMITMENT VOUCHERS
4.1.
Purchase Orders – When State Agencies and Institutions of Higher Education are
required to use a PO as the Commitment Voucher under this Fiscal Rule, the State
Agency or Institution of Higher Education shall use the PO in accordance with Fiscal Rule
3-2 (Purchase Orders) and shall comply with all requirements of that Rule.
4.2.
State Contracts – When State Agencies and Institutions of Higher Education are required
to use a State Contract as the Commitment Voucher under this Fiscal Rule, the State
Agency or Institution of Higher Education shall use the State Contract in accordance with
Fiscal Rule 3-3 (State Contracts) and shall comply with all requirements of that Rule.
4.3.
Grants – When State Agencies and Institutions of Higher Education are required to use a
Grant Agreement or Small Dollar Grant Award as the Commitment Voucher under this
Fiscal Rule, the State Agency or Institution of Higher Education shall use the Grant
Agreement or Small Dollar Grant Award in accordance with Fiscal Rule 3-4 (Grants) and
shall comply with all requirements of that Rule.
4.4.
Interagency Agreements – When State Agencies and Institutions of Higher Education are
required to use an Interagency Agreement under this Fiscal Rule, the State Agency or
Institution of Higher Education shall use the Interagency Agreement in accordance with
Fiscal Rule 3-5 (Interagency Agreements) and shall comply with all requirements of that
Rule.
4.5
ply with all requirements of that Rule.
4.4.
Interagency Agreements – When State Agencies and Institutions of Higher Education are
required to use an Interagency Agreement under this Fiscal Rule, the State Agency or
Institution of Higher Education shall use the Interagency Agreement in accordance with
Fiscal Rule 3-5 (Interagency Agreements) and shall comply with all requirements of that
Rule.
4.5.
Small Purchase Documentation – When State Agencies and Institutions of Higher
Education use Small Purchase Documentation as the Commitment Voucher under this
Fiscal Rule, the State Agency or Institution of Higher Education shall ensure that the
Small Purchase Documentation describes the following:
4.5.1.
The goods or services being purchased and the reason for the disbursement of
funds if the description of the goods or services doesn’t otherwise clearly specify
the reason;
4.5.2.
The total amount due for the goods delivered or services provided and sufficient
detail or itemization to ensure that the proper amount will be paid and the prices
are fair and reasonable; and
4.5.3.
Sufficient detail to determine if the delivery of goods or provision of services was
successfully completed and accepted.
4.6.
Separate Small Purchase Documentation is not required for purchases made by
Travelers, defined in Fiscal Rule 5-1 (Travel), that do not require a receipt under Fiscal
Rule 5-1(Travel), as the travel authorization constitutes the Small Purchase
Documentation for those purchases. As the Commercial Card is only a method of
payment, purchases made with a Commercial Card require Small Purchase
Documentation and also may require another form of Commitment Voucher.
5.
DOLLAR LIMITS AND REQUIREMENTS
5.1.
The following table describes the required Commitment Voucher for the different types of
agreements.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
26
TYPE OF AGREEMENT
DOLLAR LIMIT
REQUIRED DOCUMENT FOR
COMMITMENT VOUCHER
ercial Card require Small Purchase
Documentation and also may require another form of Commitment Voucher.
5.
DOLLAR LIMITS AND REQUIREMENTS
5.1.
The following table describes the required Commitment Voucher for the different types of
agreements.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
26
TYPE OF AGREEMENT
DOLLAR LIMIT
REQUIRED DOCUMENT FOR
COMMITMENT VOUCHER
Goods
$10,000 and less
Small Purchase Documentation,
PO, or State Contract
More than $10,000
PO or State Contract
Services
$10,000 and less
Small Purchase Documentation,
PO, or State Contract
More than $10,000 and not more
than $250,000
PO or State Contract
More than $250,000*
State Contract
Grants
$10,000 and less
Small Purchase Documentation,
Small Dollar Grant Award, or
Grant Agreement
More than $10,000 and not more
than $250,000
Small Dollar Grant Award or
Grant Agreement
More than $250,000
Grant Agreement
Capital Construction /
Controlled Maintenance
$150,000 and less
Construction PO (See Fiscal
Rule 4-1)
More than $150,000
Construction Contract
(See Fiscal Rule 4-1)
Professional Services under
§24-30-1401, et seq., C.R.S.,
including architectural,
engineering, land surveying,
industrial hygienist, and
landscape architect services
Any dollar amount
State Contract
Real Property lease or license
of land, buildings, or a portion
thereof for term of more than 30
days
Any dollar amount
State Contract
Agreements Between State
Agencies and/or Institutions of
Higher Education
Any dollar amount
Encumbrance required for
amounts more than $250,000
Use Interagency Agreement in
accordance with Fiscal Rule 3-5
* $250,000 applies to price agreements and other sourcing methods
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ore than 30
days
Any dollar amount
State Contract
Agreements Between State
Agencies and/or Institutions of
Higher Education
Any dollar amount
Encumbrance required for
amounts more than $250,000
Use Interagency Agreement in
accordance with Fiscal Rule 3-5
* $250,000 applies to price agreements and other sourcing methods
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
27
5.2.
Dollar Limits – The dollar limits shown in the table in §5.1 of this Fiscal Rule apply to the
total term of the Commitment Voucher. If a single Commitment Voucher will be used for a
purchase that will span multiple fiscal years, then the total of all fiscal years included in
that Commitment Voucher is the amount to which the dollar limit will apply. State
Agencies and Institutions of Higher Education shall use a single Commitment Voucher for
purchases in accordance with the State Controller Contract, Grant, and Purchase Order
Policies regarding single purchases.
5.3.
Dollar Limits and Price Agreements – The dollar limits apply to orders of goods or
services using price agreements. For orders more than $250,000, a State Agency or
Institution of Higher Education shall assess the level of risk to determine the appropriate
review required under State Controller policies. Using a price agreement does not
remove the requirement for these purchases to be reviewed when the amount is more
than $250,000. Personal services contracts are required for purchase of services over
$250,000.
5.4.
Protecting the State’s Interests – State Contracts shall be used in situations in addition to
those described in this Section if other Commitment Vouchers do not adequately protect
the State’s interests. Refer questions regarding the proper form of Commitment Voucher
to the Office of the State Controller.
5.5.
Disbursements Exempt from Purchase Order or State Contract – A Purchase Order or
State Contract is not required for the following types of disbursements regardless of the
amount of funds disbursed:
5.5.1
is Section if other Commitment Vouchers do not adequately protect
the State’s interests. Refer questions regarding the proper form of Commitment Voucher
to the Office of the State Controller.
5.5.
Disbursements Exempt from Purchase Order or State Contract – A Purchase Order or
State Contract is not required for the following types of disbursements regardless of the
amount of funds disbursed:
5.5.1.
Access to internet-based, on-demand training classes and webinars;
5.5.2.
Advices of Employments;
5.5.3.
Calculated payments required under a program within a State Agency or
Institution of Higher Education (e.g., formula distributions, other distributions
required by regulatory or statutory formulas);
5.5.4.
Copier rental agreements when the payment is based on a defined rate per copy;
5.5.5.
Conference registrations;
5.5.6.
Conference facilities at hotels or other venues that include, but need not be
limited to, meeting rooms, audio visual equipment, catering, and guest
accommodation rooms;
5.5.7.
Financial aid or tuition assistance programs that is paid directly to a beneficiary;
5.5.8.
Membership and license dues and fees, and participation assessments, that do
not include services or examinations;
5.5.9.
Insurance premiums;
5.5.10. Services needed by the Department of Law, or by another State Agency or
Institution of Higher Education, with the approval of the Department of Law, to
seek outside counsel, to support civil or criminal proceedings, civil or criminal
enforcement, or legal services (e.g. attorneys, expert consultants, expert
witnesses, mediators, and arbitrators);
5.5.11. Court orders related to criminal proceedings, civil enforcement, or legal services;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
oval of the Department of Law, to
seek outside counsel, to support civil or criminal proceedings, civil or criminal
enforcement, or legal services (e.g. attorneys, expert consultants, expert
witnesses, mediators, and arbitrators);
5.5.11. Court orders related to criminal proceedings, civil enforcement, or legal services;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
28
5.5.12. Intra-agency or intra-institution purchases;
5.5.13. Moving expenses reimbursed to State employees ;
5.5.14. Payroll and related disbursements to employees (withholding, authorized
benefits, etc.), including reimbursements or payment for Travel as described in
Fiscal Rule 5-1 (Travel);
5.5.15. Postal and other delivery charges, including messenger fees, post office boxes
and postage meters;
5.5.16. State program payments to or on behalf of individuals qualified for the program’s
benefits;
5.4.17. Subscriptions for journals, informational publications, informational and research
databases or similar materials (print or electronic), which do not include
additional services (such as training or configuration);
5.5.18. Utility hook ups, relocations, and line extensions performed by a utility company;
5.5.19. Water; energy (regulated electric and natural gas, and steam); local, long-
distance, wireless, satellite, and telephone communication or data services,
including pagers, cell phones and other wireless/communication devices; septic
pumping services; regular, non-hazardous trash collection services; and bulk fuel
(coal, heating oil, gasoline, propane), which are routinely purchased by a State
Agency or Institution of Higher Education; and
5.5.20. Other disbursements approved in writing by the State Controller.
5.6.
Exemption from Purchase Order and State Contract Only
ll phones and other wireless/communication devices; septic
pumping services; regular, non-hazardous trash collection services; and bulk fuel
(coal, heating oil, gasoline, propane), which are routinely purchased by a State
Agency or Institution of Higher Education; and
5.5.20. Other disbursements approved in writing by the State Controller.
5.6.
Exemption from Purchase Order and State Contract Only. The exemptions listed in §5.4
of this Fiscal Rule are exemptions from the requirement to have a Purchase Order or
State Contract only and does not create any exemption from any other statutory
requirement, such as the requirements of the Procurement Code and the Procurement
Rules.
6.
PROHIBITED TERMS AND LIMITATIONS
6.1.
Indemnification by the State Prohibited – Unless specifically authorized by statute, a
State Agency or Institution of Higher Education shall not indemnify and/or hold harmless
another Party (no matter how it is phrased) against any liability incurred as a result of the
acts or omissions of such State Agency or Institution of Higher Education. Article V, §33
of the Colorado Constitution prohibits disbursement by the State Treasurer except upon
appropriations made by law or as otherwise authorized by law. Except as authorized by
law, any term or provision of any Commitment Voucher or any other agreement that
requires the State to indemnify or hold harmless another Party is void as described in
§24-106-109, C.R.S.
6.2.
Binding Arbitration Prohibited – A State Agency or Institution of Higher Education shall
not be bound by the results of arbitration or any other extrajudicial dispute resolution
process in which the final resolution is not determined by the State. Any term or provision
of any Commitment Voucher or any other agreement that requires the State to agree to
binding arbitration or any other binding extrajudicial resolution process in which the final
resolution is not determined by the State is void as described in §24-106-109, C.R.S.
r any other extrajudicial dispute resolution
process in which the final resolution is not determined by the State. Any term or provision
of any Commitment Voucher or any other agreement that requires the State to agree to
binding arbitration or any other binding extrajudicial resolution process in which the final
resolution is not determined by the State is void as described in §24-106-109, C.R.S.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
29
6.3.
Limitations of Liability – A State Agency or Institution of Higher Education may not limit
another Party’s liability for claims or damages arising out of bodily injury, death, or
damage to tangible property of the State. Any term or provision of any Commitment
Voucher or any other agreement that limits the liability of a Party for bodily injury, death
or damage to tangible property of the State is void as described in §24-106-109, C.R.S.
Other liability may be limited if the State Agency or Institution of Higher Education
determines in writing that the benefits outweigh the risks, the limitation of liability does not
apply to any insurance required under the Commitment Voucher, if any, and the Office of
the State Controller has approved the limitation.
6.4.
Choice of Law Outside of Colorado – A State Agency or Institution of Higher Education
may not agree to be bound by the laws of another state. As described in §24-106-109,
C.R.S., all agreements except those with another government shall be governed by
Colorado law. State Agencies and Institutions of Higher Education may agree to be silent
on choice of law in agreements with another governmental entity, but cannot agree to
their law as controlling. State Agencies and participating Institutions of Higher Education
may agree to federal law in agreements with federal agencies.
6.5
agreements except those with another government shall be governed by
Colorado law. State Agencies and Institutions of Higher Education may agree to be silent
on choice of law in agreements with another governmental entity, but cannot agree to
their law as controlling. State Agencies and participating Institutions of Higher Education
may agree to federal law in agreements with federal agencies.
6.5.
Inclusion of Void Terms – A State Agency or Institution of Higher Education should not
include a term or provision that would be void under this §6 or under §24-106-109,
C.R.S., in any Commitment Voucher or a Vendor Agreement entered into by a State
Agency or Institution of Higher Education with another Party. If another Party requires the
inclusion of a void provision, the State Agency or Institution of Higher Education shall
inform the Party that those terms or provisions will be void if they are included. If the
Party is unwilling or unable to remove those terms or provisions after being notified but is
unwilling to accept the Commitment Voucher, Small Purchase Documentation, or Vendor
Agreement without the inclusion, the State Agency or Institution of Higher Education may
enter into the Commitment Voucher or Vendor Agreement that includes the void provision
if the State Controller, Chief Procurement Officer, authorized Procurement Official or
delegate, or authorized State Controller delegate approves the inclusion of the void term
or provision.
7.
COMMITMENT VOUCHER APPROVALS
The State Controller, or an authorized delegate of the State Controller, shall approve all Purchase
Orders, State Contracts, Grant Agreements, and Small Dollar Grant Awards. A State Agency or
Institution of Higher Education, at its discretion, may require such additional internal approvals as
it deems proper
gate approves the inclusion of the void term
or provision.
7.
COMMITMENT VOUCHER APPROVALS
The State Controller, or an authorized delegate of the State Controller, shall approve all Purchase
Orders, State Contracts, Grant Agreements, and Small Dollar Grant Awards. A State Agency or
Institution of Higher Education, at its discretion, may require such additional internal approvals as
it deems proper. The State Agency or Institution of Higher Education shall obtain all required
approvals and signatures and retain documentation thereof in its files for the period specified in
the State Controller Contract, Grant, and Purchase Order Policies. Unless a State Agency or
Institution of Higher Education is exempt by statute or has delegated approval authority, prior
approval of the Commitment Voucher by one or more of the Central Approvers, defined in Fiscal
Rule 3-3 (State Contracts), is required as follows:
7.1.
Commitment Vouchers for Capital Construction and Controlled Maintenance, defined in
§24-30-1301, C.R.S., require the approval of the State Architect or a delegate of the
State Architect, unless otherwise exempt by statute or waived by the State Architect. See
§24-30-1303(1)(d), C.R.S.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
30
7.2.
Commitment Vouchers for services normally provided by the Division of Central Services
require the approval of the Director of the Division of Central Services, Department of
Personnel & Administration, or a delegate of the Director of the Division of Central
Services, for all State Agencies located within Adams, Arapahoe, Boulder, Douglas,
Pueblo, El Paso, and Jefferson counties, the City and County of Broomfield, and the City
and County of Denver, and any other area in the State where a Division of Central
Services offers services. Institutions of Higher Education are exempt from this
requirement. See §24-30-1104(1), C.R.S.
7.3
he Division of Central
Services, for all State Agencies located within Adams, Arapahoe, Boulder, Douglas,
Pueblo, El Paso, and Jefferson counties, the City and County of Broomfield, and the City
and County of Denver, and any other area in the State where a Division of Central
Services offers services. Institutions of Higher Education are exempt from this
requirement. See §24-30-1104(1), C.R.S.
7.3.
Contingency-Based, defined in Fiscal Rule 3-3 (State Contracts), Commitment Vouchers
require the approval of the Office of State Planning and Budgeting. See §24-17-204,
C.R.S.
7.4.
Financial Information Commitment Vouchers used by a State Agency or Institution of
Higher Education to record financial transactions and information, develop financial
reports, or prepare financial statements require the approval of the State Controller. See
§24-30-202(2), C.R.S.
7.5.
Information technology Commitment Vouchers require approval by the Governor’s Office
of Information Technology as described in the State Controller Contract, Grant, and
Purchase Order Policies.
7.6.
Legal services Commitment Vouchers require the approval of the State Attorney General
or a delegate of the State Attorney General. See §24-31-101, C.R.S.
7.7.
Personal services Commitment Vouchers require the approval of the State Personnel
Director or a delegate of the State Personnel Director. See §24-50-501, et seq., C.R.S.
This approval is not required for personal services Commitment Vouchers for services
that are:
7.7.1
chers require the approval of the State Attorney General
or a delegate of the State Attorney General. See §24-31-101, C.R.S.
7.7.
Personal services Commitment Vouchers require the approval of the State Personnel
Director or a delegate of the State Personnel Director. See §24-50-501, et seq., C.R.S.
This approval is not required for personal services Commitment Vouchers for services
that are:
7.7.1.
Exempt from the State classified personnel system under Article XII, §13 of the
State Constitution, including without limitation, attorneys at law serving as
assistant attorneys general; faculty members and certain administrators at
Institutions of Higher Education, exempt under §24-50-135, C.R.S., and
members, officers, and employees of the judicial and legislative branches of the
State, unless specifically provided by the Constitution, and the offices of the
Governor and Lieutenant Governor whose functions and duties are confined to
such offices.; or
7.7.2.
Non-recurring services lasting nine months or less, where the need for such
services is not expected to recur on a regular basis. Temporary services that do
not meet these criteria require approval from the State Personnel Director or a
delegate of the State Personnel Director.
7.8.
Real property State Contracts, including leases where the State Agency or Institution of
Higher Education is the tenant, easements, and rights-of-way agreements, require the
approval of the State Architect or the Director of Real Estate Programs within the Office
of the State Architect, Department of Personnel & Administration, or a delegate of either
position, unless otherwise exempted by statute. See §24-30-1303, C.R.S. Real property
administered by the State Board of Land Commissioners, Division of Parks and Wildlife in
the Department of Natural Resources, and the Department of Transportation, are exempt
from this requirement. See§24-30-1301(15)(b), C.R.S.
7.9
State Architect, Department of Personnel & Administration, or a delegate of either
position, unless otherwise exempted by statute. See §24-30-1303, C.R.S. Real property
administered by the State Board of Land Commissioners, Division of Parks and Wildlife in
the Department of Natural Resources, and the Department of Transportation, are exempt
from this requirement. See§24-30-1301(15)(b), C.R.S.
7.9.
Utility cost-savings Commitment Vouchers require the approval of the State Personnel
Director or a delegate of the State Personnel Director. See §24-30-2003(1)(b), C.R.S.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
31
7.10.
Commitment Vouchers related to the Business Enterprise Program require the approval
of the Business Enterprise Program within the Department of Labor and Employment.
See §8-84-201, et seq., C.R.S.
8.
STATUTORY VIOLATIONS
A Statutory Violation occurs when liabilities are incurred or payments are made on the State’s
behalf without prior approval of a State Purchase Order, Small Dollar Grant Award, Grant
Agreement, or State Contract, when required under this Fiscal Rule.
8.1.
Personal Liability – Under §24-30-202(3), C.R.S., any person(s) who incurs, orders or
votes for an obligation or makes a payment which creates a Statutory Violation shall be
personally liable for such obligation, unless the contractor payment subject to the
Statutory Violation is approved by the State Controller and the State Controller permits
the State Agency or Institution of Higher Education to make payment to the contractor
without recovering the amount of that payment from the person(s) who incurred, ordered
or voted for an obligation or made a payment which created the Statutory Violation.
8.2.
Payment Prohibition
8.2.1.
A State Agency or Institution of Higher Education shall not make payments to a
contractor that is subject to a Statutory Violation, unless and until the contractor
payment subject to the violation has been approved by the State Controller.
8.2.2
om the person(s) who incurred, ordered
or voted for an obligation or made a payment which created the Statutory Violation.
8.2.
Payment Prohibition
8.2.1.
A State Agency or Institution of Higher Education shall not make payments to a
contractor that is subject to a Statutory Violation, unless and until the contractor
payment subject to the violation has been approved by the State Controller.
8.2.2.
Agencies may pay bills for Commercial Card statements to the bank to ensure
timely payment without determining whether these payments are subject to a
Statutory Violation. Agencies shall reconcile Commercial Card statements and
request ratification by the State Controller for any Statutory Violations included in
these statements.
8.3.
Commitment Voucher Modification Provision – A State Agency or Institution of Higher
Education shall not modify any requirements related to the work contained in a
Commitment Voucher if that Commitment Voucher is subject to an unapproved Statutory
Violation.
8.4.
Approval Allowing Contractor Payment – The State Controller or an authorized delegate
of the State Controller, in that individual’s sole discretion, may retroactively approve a
Commitment Voucher supporting the expenditure or obligation creating a Statutory
Violation, and allow payment to the contractor if the State Controller or delegate finds all
of the following:
8.4.1.
The prices or rates are fair and reasonable;
8.4.2.
The amount of the expenditure is authorized by the appropriation and allotment
to which it will be charged and is within the unencumbered balance available
within that allotment;
8.4.3.
The State Agency or Institution of Higher Education provides a written
explanation in accordance with the State Controller Contract, Grant, and
Purchase Order Policies; and
8.4.4.
The contractor did not act in bad faith or in a fraudulent manner.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
is within the unencumbered balance available
within that allotment;
8.4.3.
The State Agency or Institution of Higher Education provides a written
explanation in accordance with the State Controller Contract, Grant, and
Purchase Order Policies; and
8.4.4.
The contractor did not act in bad faith or in a fraudulent manner.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
32
8.5.
Ratification of Statutory Violation Removal of Personal Liability – As part of any approval
allowing contractor payment, the State Controller or an authorized delegate of the State
Controller, in that individual’s sole discretion, may permit the State Agency or Institution
of Higher Education to make payment to the contractor without recovering the amount of
that payment from the person(s) who incurred, ordered, or voted for an obligation or
made a payment which created the Statutory Violation if that individual finds all of the
following:
8.5.1.
The violation does not show a willful disregard of law, rules, policies or
regulations on the part of the person(s) who incurred, ordered, or voted for an
obligation, or who made a payment which created the Statutory Violation;
8.5.2.
The violation happened accidentally or was unavoidable through no fault of the
person(s) who incurred, ordered, or voted for an obligation, or who made a
payment which created the Statutory Violation; and
8.5.3.
The State Agency or Institution of Higher Education has requested permission to
make the payment without recovering the amount of the payment from the
person(s) who incurred, ordered, or voted for an obligation or who made a
payment that created the Statutory Violation.
8.6.
Fiscal Rule Violation Ratification – If the State Controller or an authorized delegate of the
State Controller approves a retroactive Commitment Voucher supporting the expenditure
or obligation creating a Statutory Violation, then that approval shall also constitute a
ratification of the violation of this Fiscal Rule.
8.7
obligation or who made a
payment that created the Statutory Violation.
8.6.
Fiscal Rule Violation Ratification – If the State Controller or an authorized delegate of the
State Controller approves a retroactive Commitment Voucher supporting the expenditure
or obligation creating a Statutory Violation, then that approval shall also constitute a
ratification of the violation of this Fiscal Rule.
8.7.
Federal Awards and Pre-award costs – If a federal award includes a prohibition on pre-
award costs, the State Controller cannot ratify pre-award costs as part of a statutory
violation.
9.
ADVANCE PAYMENTS
9.1.
General Prohibition – Commitment Vouchers shall not provide for Advance Payment for
goods supplied and/or services performed or for any other contractual or grant obligation,
except as permitted in §§9.4 through 9.6 of this Fiscal Rule.
9.2.
Accounting for Advance Payments – Regardless of when a payment is made, State
Agencies and Institutions of Higher Education shall account for those payments in
accordance with GAAP and any Grant, defined in Fiscal Rule 3-4 (Grants), requirements
applicable to those payments.
9.3.
Waiver Process – The State Controller or an authorized delegate of the State Controller,
in that individual’s sole discretion, may grant the request of a State Agency or Institution
of Higher Education for a waiver, allowing an Advance Payment not listed in the
exceptions in §§9.4 through 9.6. The waiver request shall include evidence that advance
payment is an established industry standard and/or provides a benefit to the State at
least equal to the cost and risk of the Advance Payment.
9.4
individual’s sole discretion, may grant the request of a State Agency or Institution
of Higher Education for a waiver, allowing an Advance Payment not listed in the
exceptions in §§9.4 through 9.6. The waiver request shall include evidence that advance
payment is an established industry standard and/or provides a benefit to the State at
least equal to the cost and risk of the Advance Payment.
9.4.
Exceptions – Prior Approval of State Controller Not Required – Advance Payments where
the payment is made no more than one year in advance of the substantial receipt and
acceptance of the goods or completion and acceptance of the services to which the
payment applies are permitted without prior approval of the State Controller or a delegate
of the State Controller for the following, unless the State Controller or delegate
determines that the circumstances around the payment require prior approval to minimize
risk to the State:
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
33
9.4.1.
Advertising services and related goods;
9.4.2.
Charter Transportation;
9.4.3.
Construction permits;
9.4.4.
Catering for events at both State and non-State facilities;
9.4.5.
Deposits for conference facilities at hotels or other venues that include, but need
not be limited to, meeting rooms, audio visual equipment, catering, and guest
accommodation rooms;
9.4.6.
Emergency Procurements approved by a Procurement Official;
9.4.7.
ExpressToll passes issued by the E-470 Public Highway Authority;
9.4.8.
Federal grants that are formula-based distributions where eligibility and amounts
that subgrantees receive are determined at the federal level and the State acts
as a fiscal agent and manages the pass-through of the funds in compliance with
federal requirements;
9.4.9.
Information technology (IT) service agreements (including internet access,
systems and database access);
9.4.10. Insurance premiums;
9.4.11. Interagency Agreements;
9.4.12. Janitorial services;
9.4.13
and amounts
that subgrantees receive are determined at the federal level and the State acts
as a fiscal agent and manages the pass-through of the funds in compliance with
federal requirements;
9.4.9.
Information technology (IT) service agreements (including internet access,
systems and database access);
9.4.10. Insurance premiums;
9.4.11. Interagency Agreements;
9.4.12. Janitorial services;
9.4.13. Licenses, including licenses for software;
9.4.14. Maintenance of office equipment or information technology (IT) (software and
hardware), and other maintenance agreements;
9.4.15. Membership dues and fees, and participation assessments, that do not include
services or examinations;
9.4.16. Personal property leases or rentals;
9.4.17. Postal and other delivery charges, including messenger fees, post office boxes
and postage meters;
9.4.18. Purchase of State agricultural products by a charitable food organization using
State grant money;
9.4.19. Purchases made with a Commercial Card through an online retailer. See Fiscal
Rule 2-7 (State Commercial Cards);
9.4.20. Professional services provided by entertainers and speakers;
9.4.21. Participation in conferences and trade shows as an exhibitor or presenter,
including booth rental at those conferences or events;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
34
9.4.22. Real property leases, where the State is a tenant, and perpetual easements, if
the entire interest is purchased and all attendant rights are transferred upon
payment;
9.4.23. Real property leases, where the State pays lease payments on behalf of tenants
eligible under a State program, where lease payments must be received on or
before the first day of the lease period;
9.4.24. Security alarm and safety systems and monitoring;
9.4.25
e is a tenant, and perpetual easements, if
the entire interest is purchased and all attendant rights are transferred upon
payment;
9.4.23. Real property leases, where the State pays lease payments on behalf of tenants
eligible under a State program, where lease payments must be received on or
before the first day of the lease period;
9.4.24. Security alarm and safety systems and monitoring;
9.4.25. Services needed by the Department of Law, or by another State Agency or
Institution of Higher Education, with the approval of the Department of Law, to
seek outside counsel, to support criminal or civil proceedings, civil or criminal
enforcement, or legal services (e.g. attorneys, expert consultants, expert
witnesses, mediators, and arbitrators);
9.4.26. Sponsored projects – See Fiscal Rule 3-3 (State Contracts);
9.4.27. State grants and awards that are appropriated in statute for a specific purpose
and advance payment to awardees is specified in statute or deemed necessary
to implement the program requirements.
9.4.28. Subscriptions for journals, informational publications, informational and research
databases or similar materials (print or electronic), which do not include
additional services (such as training and configuration);
9.4.29. Telecommunications services, such as prepaid local, long-distance, wireless,
satellite, and telephone communication or data services, including pagers, cell
phones and other wireless/communication devices;
9.4.30. Travel expenses such as hotels, motels, airfare etc. paid in accordance with
Fiscal Rule 5-1 (Travel);
9.4.31. Tuition, registration, and fees charged for trainings, classes, conferences, and
seminars;
9.4.32. Utility hook-ups, relocations, and line extensions performed by a utility company;
9.4.33. Utility services including trash and recycling collection, heat, water, and sewer;
and
9.4.34. Water rights purchases, temporary water leases, or water storage payments.
9.5.
Exceptions – Prior Approval of State Controller Not Required – Multiple Years
r trainings, classes, conferences, and
seminars;
9.4.32. Utility hook-ups, relocations, and line extensions performed by a utility company;
9.4.33. Utility services including trash and recycling collection, heat, water, and sewer;
and
9.4.34. Water rights purchases, temporary water leases, or water storage payments.
9.5.
Exceptions – Prior Approval of State Controller Not Required – Multiple Years. Advance
Payments, where the payment may be made any time in advance of the receipt of the
goods or completion of the service to which the payment applies, are permitted without
prior approval of the State Controller for the following:
9.5.1.
Federal contracts where the State Agency or Institution of Higher Education is
paying the Federal government and the Federal agency requires Advance
Payments under the Anti-Deficiency Act, 31 U.S.C. §1341, or other Federal rule
or regulation; and
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
35
9.5.2.
In-kind payments, where the State Agency or Institution of Higher Education has
access to variable quantities of the good or commodity to be used for payment.
Advance Payment is permitted if the State Controller delegate for the State
Agency or Institution of Higher Education determines, and documents in the
contract file, that it is in the best interest of the State Agency or Institution of
Higher Education to be able to prepay in years where the State Agency or
Institution of Higher Education has access to high quantities to offset years
where lower quantities are available (e.g. when a State Agency or Institution of
Higher Education is required to pay in water, it may need to prepay in “wet” years
in order to offset drought years).
9.5.3.
Exceptions – Prior Approval of State Controller Not Required – Payments up to
$10,000
ears where the State Agency or
Institution of Higher Education has access to high quantities to offset years
where lower quantities are available (e.g. when a State Agency or Institution of
Higher Education is required to pay in water, it may need to prepay in “wet” years
in order to offset drought years).
9.5.3.
Exceptions – Prior Approval of State Controller Not Required – Payments up to
$10,000. Advance Payments of up to $10,000, may be made any time in
advance of the receipt and acceptance of goods or the completion and
acceptance of services, if the State Controller delegate for the State Agency or
Institution of Higher Education determines, and documents in the Contract file,
that the Advance Payment provides a benefit to the State at least equal to the
cost and risk of the Advance Payment. Advance Payments shall not be split in
order to stay below the $10,000 maximum. In no instance shall more than
$10,000 be advanced under a single Commitment Voucher without State
Controller approval.
10.
REQUIREMENTS FOR PERSONAL SERVICES COMMITMENT VOUCHERS
10.1.
Designation of Contract Manager – In accordance with §24-106-107, C.R.S., State
Agencies and Institutions of Higher Education shall designate at least one person with
subject matter expertise as a contract manager to be responsible for day-to-day
management of the Personal Services Commitment Voucher, including performance
monitoring as required by §24-106-107(3), C.R.S. State Agencies and Institutions of
Higher Education shall comply with all State Controller training requirements for
designated contract managers.
10.2.
Monitoring – Each State Agency and Institution of Higher Education shall monitor its
Personal Services Commitment Vouchers to ensure that the work is performed in
accordance with the performance measures and standards of the Personal Services
Commitment Voucher and that the contractor was paid in accordance with the payment
schedule in the Personal Services Commitment Voucher
tract managers.
10.2.
Monitoring – Each State Agency and Institution of Higher Education shall monitor its
Personal Services Commitment Vouchers to ensure that the work is performed in
accordance with the performance measures and standards of the Personal Services
Commitment Voucher and that the contractor was paid in accordance with the payment
schedule in the Personal Services Commitment Voucher. State Agencies and Institutions
of Higher Education shall follow the State Controller Contract, Grant, and Purchase Order
Policies and the accountability standards in §24-106-107(2)(b), C.R.S.
10.3.
Contract Management System – In accordance with §24-106-103(3)(d), C.R.S., State
Agencies and Institutions of Higher Education subject to §24-106-103, C.R.S., shall
include all Personal Services Commitment Vouchers over $100,000.00 in the State’s
centralized contract management system, maintained by the Department of Personnel &
Administration, within 30 days following their execution, regardless of the type of
Commitment Voucher used.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
36
10.4.
Personal Services Provided By Retirees – State Agencies and Institutions of Higher
Education that purchase services from an independent contractor who is also a retired
State employee, or from any entity owned or operated by a retired State employee or an
affiliated party, shall make employer contributions to Public Employees' Retirement
Association (PERA) in accordance with per §24-51-1101(2), C.R.S. For State Agencies
that utilize the State Financial System, full disclosure of the relationship with the retired
State employee working as independent contractor, or entity owned or operated by a
retired State employee or an affiliated party, shall be provided to the Office of the State
Controller to allow coordination of employer contribution payments to PERA on behalf of
State Agencies
), C.R.S. For State Agencies
that utilize the State Financial System, full disclosure of the relationship with the retired
State employee working as independent contractor, or entity owned or operated by a
retired State employee or an affiliated party, shall be provided to the Office of the State
Controller to allow coordination of employer contribution payments to PERA on behalf of
State Agencies. Agencies and Institutions of Higher Education that do not use the State
Financial System shall be responsible for ensuring that the proper contribution payments
are made to PERA.
10.5.
Personal Services Commitment Voucher Terms – In addition to the elements otherwise
required for each type of Commitment Voucher, each Personal Services Commitment
Voucher over $100,000 shall include all of the following terms, as required by §24-106-
107, C.R.S.:
10.5.1. Performance measures and standards developed specifically for the
Commitment Voucher by the administering State Agency or Institution of Higher
Education;
10.5.2. Accountability standards requiring regular contractor reports on achievement of
the specified performance measures and standards;
10.5.3. Payment provisions allowing the State Agency or Institution of Higher Education
to withhold payment until successful completion of all or specified parts of the
Commitment Voucher and requiring prompt payment upon successful
completion;
10.5.4. Monitoring requirements specifying how the State Agency or Institution of Higher
Education will evaluate the contractor’s performance, including progress reports,
site visits, inspections, and reviews of performance data; and
10.5.5. Processes for resolving disputes between the State Agency or Institution of
Higher Education and the contractor.
11
prompt payment upon successful
completion;
10.5.4. Monitoring requirements specifying how the State Agency or Institution of Higher
Education will evaluate the contractor’s performance, including progress reports,
site visits, inspections, and reviews of performance data; and
10.5.5. Processes for resolving disputes between the State Agency or Institution of
Higher Education and the contractor.
11.
DISBURSEMENTS FOR EMERGENCY PROCUREMENTS:
Disbursements for Emergency Procurements that would require a State Contract or Purchase
Order under non-emergency conditions shall be made upon presentation of valid and accepted
invoices, receipts, or other statements describing goods or services purchased and the amount to
be paid. Goods and services necessary to respond to an Emergency may be procured
immediately, without issuing a Commitment Voucher or obtaining a written waiver from the Office
of the State Controller, where all of the following conditions are met:
11.1.
The nature of the situation requires an immediate response and there is insufficient time
to issue a Commitment Voucher;
11.2.
The Emergency Procurement is exempted from or is authorized in accordance with the
Procurement Code and the Procurement Rules;
11.3.
The expenditure is approved by a State Controller delegate;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
37
11.4.
If any future performance obligations are necessary to resolve the Emergency, a
Commitment Voucher is executed as soon as possible to define those future
performance obligations, as required by Fiscal Rules; and
11.5.
The State Agency or Institution of Higher Education shall notify the State Controller’s
Office in writing, as soon as possible, of the circumstances, the goods and services
purchased, and the dollar amount of the commitment. Failure to provide notice in a timely
manner, as determined by the State Controller’s Office, will constitute a Statutory
Violation.
12.
VENDOR AGREEMENTS
12.1
ules; and
11.5.
The State Agency or Institution of Higher Education shall notify the State Controller’s
Office in writing, as soon as possible, of the circumstances, the goods and services
purchased, and the dollar amount of the commitment. Failure to provide notice in a timely
manner, as determined by the State Controller’s Office, will constitute a Statutory
Violation.
12.
VENDOR AGREEMENTS
12.1.
Prohibited Use – A Vendor Agreement shall not be used in lieu of a State Purchase
Order or State Contract, where one is required, absent the prior written approval of the
State Controller or an approved delegate. A Vendor Agreement shall not be used where
a State Purchase Order or State Contract is not required, except as provided in §12.2 or
in the State Controller Contract, Grant, and Purchase Order Policies.
12.2.
Permitted Use – The Chief Fiscal Officer or Procurement Official of a State Agency or
Institution of Higher Education, or a delegate of either individual, may authorize the use of
Vendor Agreements up to $10,000, if a State Contract or Purchase Order is not required.
12.3.
Conditions of Use – All of the conditions set forth in the State Controller Contract, Grant,
and Purchase Order Policies related to Vendor Agreements shall be met whenever a
Vendor Agreement is used.
13.
INDEPENDENT CONTRACTOR RELATIONSHIP
State Agencies and Institutions of Higher Education shall ensure that all Commitment Vouchers
create only an independent contractor relationship and do not create an employer-employee
relationship. State Agencies and Institutions of Higher Education shall not engage in any
practices that would result in the creation of an employer-employee relationship.
RULE 3-2:
PURCHASE ORDERS
1.
AUTHORITY
§24-30-202(1-4) and (5)(a), C.R.S. (State Controller Authority)
§24-106-103, C.R.S. (Centralized Contract Management System)
§24-102-206, C.R.S. (Contract Performance Outside United States or Colorado)
§24-106-106, C.R.S. (Right to Audit Records)
§24-106-107, C.R.S. (Monitoring of Vendor Performance)
2
ult in the creation of an employer-employee relationship.
RULE 3-2:
PURCHASE ORDERS
1.
AUTHORITY
§24-30-202(1-4) and (5)(a), C.R.S. (State Controller Authority)
§24-106-103, C.R.S. (Centralized Contract Management System)
§24-102-206, C.R.S. (Contract Performance Outside United States or Colorado)
§24-106-106, C.R.S. (Right to Audit Records)
§24-106-107, C.R.S. (Monitoring of Vendor Performance)
2.
DEFINITIONS
2.1.
Chief Procurement Officer - See §24-101-301(6), C.R.S.
2.2.
Purchase Order – A unilaterally executed Commitment Voucher, the form of which has
been approved by the State Controller, issued by a State Agency or Institution of Higher
Education to purchase goods, services, or construction for the direct benefit of the State,
as described in this Fiscal Rule.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
38
3.
RULE
Each State Agency or Institution of Higher Education shall use a Purchase Order as described in
this Rule when Fiscal Rule 3-1 (Commitment Vouchers) requires the use of a Purchase Order as
the Commitment Voucher.
4.
CONTENT OF PURCHASE ORDERS
4.1.
Standard Provisions – All Purchase Orders issued by State Agencies and Institutions of
Higher Education shall include all of the following:
4.1.1.
Identification of the parties;
4.1.2.
A description of all goods to be delivered and/or services to be performed;
4.1.3.
Payment Terms, as defined in Fiscal Rule 2-3 (Payment Terms), including the
maximum dollar amount;
4.1.4.
Dates that define the term of the Purchase Order; and
4.1.5.
Any other content required under the State Controller Contract, Grant, and
Purchase Order Policies.
5.
APPROVED PURCHASE ORDER FORMS
5.1.
All Purchase Orders shall be in a form approved by the State Controller. The State
Controller has approved the following Purchase Order forms and may approve additional
forms in the State Controller’s sole discretion.
5.1.1
term of the Purchase Order; and
4.1.5.
Any other content required under the State Controller Contract, Grant, and
Purchase Order Policies.
5.
APPROVED PURCHASE ORDER FORMS
5.1.
All Purchase Orders shall be in a form approved by the State Controller. The State
Controller has approved the following Purchase Order forms and may approve additional
forms in the State Controller’s sole discretion.
5.1.1.
Model Purchase Orders – State Agencies and Institutions of Higher Education
shall use the model Purchase Order forms as described in the State Controller
Contract, Grant, and Purchase Order Policies.
5.1.2.
Purchase Order Modifications – All modifications to a Purchase Order shall be
made by a formal written change order approved by the State Controller or a
delegate, unless an alternative modification tool has been approved by the State
Controller. A Purchase Order for services or one that has already been accepted
by performance cannot be modified or extended (revived) after its term has
expired.
5.1.2.1. If unaccepted goods are delivered after the expiration of a Purchase
Order, the State Agency of Institution of Higher Education may accept
those goods or services after ratification by the State Controller or
designee of a Statutory Violation as described in Fiscal Rule 3-1
(Commitment Vouchers), §8.
5.1.3.
Other Purchase Order Forms – State Agencies and Institutions of Higher
Education may use any other Purchase Order form that is approved by the State
Controller from time-to-time.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ter ratification by the State Controller or
designee of a Statutory Violation as described in Fiscal Rule 3-1
(Commitment Vouchers), §8.
5.1.3.
Other Purchase Order Forms – State Agencies and Institutions of Higher
Education may use any other Purchase Order form that is approved by the State
Controller from time-to-time.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
39
6.
STATE CONTROLLER REVIEW AND APPROVAL
6.1.
Performance of State Controller Functions
6.1.1.
Delegation to State Agencies and Institutions of Higher Education – The State
Controller has delegated the authority to approve Purchase Orders to the State’s
Chief Procurement Officer, as defined in §24-101-301(6), C.R.S., with special
approval to sub delegate that authority. The State Controller may also delegate
the authority to approve Purchase Orders to any other individual through a
delegation agreement in accordance with Fiscal Rule 1-4 (Delegated Authority).
6.2.
Process for Review, Approval, and Signature
6.2.1.
Review of Purchase Orders – All Purchase Orders shall be reviewed by the
State’s Chief Procurement Officer, a Procurement Official or another individual
with either a delegation from the State Controller or a sub-delegation from the
Chief Procurement Officer or a Procurement Official to review Purchase Orders
to determine if the Purchase Order complies with Fiscal Rule 3-1 (Commitment
Vouchers), §3 and all procurement laws and regulations.
6.2.2.
Approval of Purchase Orders – All Purchase Orders shall be approved by the
State’s Chief Procurement Officer, a Procurement Official, or another individual
with either a delegation from the State Controller or a sub-delegation from the
Chief Procurement Officer or a Procurement Official to approve Purchase
Orders, prior to any Purchase Order becoming effective
curement laws and regulations.
6.2.2.
Approval of Purchase Orders – All Purchase Orders shall be approved by the
State’s Chief Procurement Officer, a Procurement Official, or another individual
with either a delegation from the State Controller or a sub-delegation from the
Chief Procurement Officer or a Procurement Official to approve Purchase
Orders, prior to any Purchase Order becoming effective. If approved, the person
approving the Purchase Order shall evidence such approval in the State
Financial System, or other such system used by the State Agency or Institution of
Higher Education in accordance with Fiscal Rule 1-3 (State Financial System), or
by signing the Purchase Order.
RULE 3-3:
STATE CONTRACTS
1.
AUTHORITY
Article V, Section 33, Constitution of Colorado – Disbursement of public money
Article XI, Section 1, Constitution of Colorado – Pledging credit of state, county, city, town or
school district forbidden
Article XII, Section 13, Constitution of Colorado – State personnel system – merit system
Governor's Executive Order signed April 7, 1978 (Authority to Sign Contracts, Deeds, and
Leases)
Governor's Executive Order D 016 07 – Improving State Information Technology Management
State of Colorado Procurement Rules – 1 CCR 101-9
§2-2-320(2), C.R.S. (Legislative Contracts Approval)
§4-1-101, et seq., C.R.S. (Uniform Commercial Code)
§24-2-102(4), C.R.S. (Appointment of Officers and Employees)
§24-17-201, et seq., C.R.S. (State Contingency-based Contracts)
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ng State Information Technology Management
State of Colorado Procurement Rules – 1 CCR 101-9
§2-2-320(2), C.R.S. (Legislative Contracts Approval)
§4-1-101, et seq., C.R.S. (Uniform Commercial Code)
§24-2-102(4), C.R.S. (Appointment of Officers and Employees)
§24-17-201, et seq., C.R.S. (State Contingency-based Contracts)
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
40
§24-30-202, C.R.S. (State Controller Authority)
§24-30-1104(1)(h), C.R.S. (Central Services Approval Authority)
§24-30-1107, C.R.S. (Central Services Approval authority)
§24-30-1303(1)(a) and (d), C.R.S. (Office of State Architect Approval Authority)
§24-30-1404(4), C.R.S. (Prohibition against Contingency Fees)
§24-30-2001, et seq., C.R.S. (Utility Cost-savings Measures)
§24-31-101(1)(c), C.R.S. (State Attorney General Powers and Duties)
§24-34-101, et seq., C.R.S. (Department of Regulatory Agencies)
§24-37.5-101, et seq., C.R.S. (Office of Information Technology)
§24-50-135, C.R.S. (Exemptions from Personnel System)
§24-50-501, et seq., C.R.S. (Contracts for Personal Services)
§24-75-302, C.R.S. (Capital Construction Fund)
§24-101-101, et seq., C.R.S. (Procurement Code)
§§33-1-105 and 105.5, C.R.S. (Acquisition of Property – Parks and Wildlife Commission)
§33-10-107, C.R.S. (Acquisition of Property – Parks and Wildlife Commission)
2.
DEFINITIONS
The following definitions include terms used in this Fiscal Rule as well as various types of
Agreements entered into by State Agencies and Institutions of Higher Education.
2.1.
Agreement – A legal agreement between a State Agency or Institution of Higher
Education and another individual or entity that may or may not constitute a State Contract
under this Fiscal Rule.
2.2.
Capital Construction – A Capital Construction Project or Controlled Maintenance Project
funded wholly or in part by the State Capital Construction Fund (§24-75-302, C.R.S.) or
wholly or in part with any cash resources of a State Agency or Institution of Higher
Education
of Higher
Education and another individual or entity that may or may not constitute a State Contract
under this Fiscal Rule.
2.2.
Capital Construction – A Capital Construction Project or Controlled Maintenance Project
funded wholly or in part by the State Capital Construction Fund (§24-75-302, C.R.S.) or
wholly or in part with any cash resources of a State Agency or Institution of Higher
Education. See Fiscal Rule 4-2 (Capital Construction Projects).
2.3.
Central Approvers – Certain division directors, executive directors of State Agencies, and
Elective Officers, or their respective delegates, whose prior approval is required by
statute or Fiscal Rule for certain types of State Contracts. Central approvers include,
without limitation, the State Personnel Director, defined in Fiscal Rule 3-1 (Commitment
Vouchers), the State Architect, the Director of the Real Estate Programs, the State
Communications Director, the State Attorney General, the Director of the Division of
Central Services, the State Risk Manager, and the State’s Chief Information Officer and
Executive Director of the Governor’s Office of Information Technology.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
41
2.4.
Central Services Contract – A State Contract between a State Agency or Institution of
Higher Education and another Party for the acquisition of services, services related to
equipment, and software related to services. Centralized services include, without
limitation, motor pool operation, motor vehicle maintenance, mail or messenger services,
office copying, graphic design for print media, printing and binding, microfilming, or
design of forms. See §24-30-1104, C.R.S.
2.5.
Chief Information Officer – See §24-35.7-102(3), C.R.S.
2.6
on of services, services related to
equipment, and software related to services. Centralized services include, without
limitation, motor pool operation, motor vehicle maintenance, mail or messenger services,
office copying, graphic design for print media, printing and binding, microfilming, or
design of forms. See §24-30-1104, C.R.S.
2.5.
Chief Information Officer – See §24-35.7-102(3), C.R.S.
2.6.
Contingency-Based Contract – A State Contract for services between a State Agency or
Institution of Higher Education and a contractor where all or part of the contractor’s
compensation is computed by multiplying a stated percentage by the measurable savings
in the State Agency’s or Institution of Higher Education’s expenditures or costs of
operation attributable to the contractor’s services under the State Contract. The term
“Contingency-Based Contract” does not include State Contracts where the contingency-
based compensation is specifically authorized by statute, as described in §24-17-203,
C.R.S, including State Contracts where the contractor collects a debt on behalf of the
State Agency or Institution of Higher Education and receives a portion of those amounts
collected as payment. Contingent fees are prohibited in Professional Services Contracts.
See §24-30-1404(4), C.R.S.
2.7.
Contract – See Fiscal Rule 3-1, §2.5
2.8.
Debt Contract – A State Contract in which the State receives money from a lender and
agrees to repay the money to the lender, including the payment of any interest due. All
Debt Contracts must comply with the requirements of the Taxpayer Bill of Rights.
Examples of Debt Contracts include Agreements for short-term debt, notes, and bonds.
2.9.
Delegated State Agency or Delegated Institution of Higher Education – A State Agency or
Institution of Higher Education whose controller has been granted delegated signature
authority by the State Controller.
2.10
terest due. All
Debt Contracts must comply with the requirements of the Taxpayer Bill of Rights.
Examples of Debt Contracts include Agreements for short-term debt, notes, and bonds.
2.9.
Delegated State Agency or Delegated Institution of Higher Education – A State Agency or
Institution of Higher Education whose controller has been granted delegated signature
authority by the State Controller.
2.10.
Employee Voluntary Separation Agreement – An Agreement between a State Agency or
Institution of Higher Education and a State employee setting forth the terms of the
employee’s voluntary separation from State employment.
2.11.
Expenditure Contract – A State Contract where a State Agency or Institution of Higher
Education is required to make a payment, either in funds or in-kind, to another Party,
directly or indirectly, and includes any Agreements that divert revenue that would
otherwise be due to the State. An Agreement where the State is required to perform a
service for another Party is an Expenditure Contract if it is likely that the State’s failure to
perform would result in the payment of State funds to the other Party.
2.12.
Franchise Agreement – An agreement where a State Agency or Institution of Higher
Education grants to another Party a concession or right to provide goods or services in a
particular market or geographical area controlled by the State, such as concession
stands, hotels, and other services provided in certain State parks. The State Agency or
Institution of Higher Education 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. For the purposes of
this Fiscal Rule, an Agreement by a State Agency or Institution of Higher Education to
buy a franchise from another Party is an Expenditure Contract, not a Franchise
Agreement.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
ther Party directly and the other Party provides the goods or
services and exercises control over other management decisions. For the purposes of
this Fiscal Rule, an Agreement by a State Agency or Institution of Higher Education to
buy a franchise from another Party is an Expenditure Contract, not a Franchise
Agreement.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
42
2.13.
Fund Management Services Agreement – A State Contract for professional consulting
services regarding the management of State funds.
2.14.
Goods Contract – A State Contract between a State Agency or Institution of Higher
Education and another Party for the purchase of goods. The term “goods” includes
commodities, supplies, and products as such terms are used in the State Procurement
Code, the Procurement Rules), and Uniform Commercial Code (§4-2-105, C.R.S.).
2.15.
Information Technology Contract – A State Contract between a State Agency or
Institution of Higher Education and another Party, where the other Party provides
information technology services or products and services. An Information Technology
Contract is a type of personal services contract. See §24-37.5-102(12), C.R.S. and the
State Controller Contract, Grant, and Purchase Order Policies regarding Information
Technology Contracts for a description of information technology products and services.
2.16.
Intergovernmental Contract – An Agreement between a State Agency or Institution of
Higher Education and a political subdivision of the State, another state, a political
subdivision or public Institution of Higher Education of another state, or an agency of the
Federal government. An Intergovernmental Contract may be an Expenditure Contract or
a Non-Expenditure Contract.
2.17.
Investment Advisory Services Agreement – A State Contract for professional consulting
services regarding securities and investments.
2.18
subdivision of the State, another state, a political
subdivision or public Institution of Higher Education of another state, or an agency of the
Federal government. An Intergovernmental Contract may be an Expenditure Contract or
a Non-Expenditure Contract.
2.17.
Investment Advisory Services Agreement – A State Contract for professional consulting
services regarding securities and investments.
2.18.
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.
2.19.
Loan Agreement – An Agreement between a State Agency or Institution of Higher
Education and another Party, where the State Agency or Institution of Higher Education
agrees to loan funds to such other Party.
2.20.
Main Task Order Contract - A contract that does not specify an amount and provides for
the issuance of Task Orders for the performance of tasks during the period of the Main
Task Order Contract.
2.21.
Major Information Technology Project – See Fiscal Rule 3-1 (Commitment Vouchers).
See §24-37.5-102(19), C.R.S.
2.22.
Modification Policies – the State Controller Contract, Grant, and Purchase Order Policies
related to the modification of State Contracts.
2.23.
Non-Expenditure Contract – An Agreement between a State Agency or Institution of
Higher Education and another Party involving an exchange of resources, goods, or
services, that does not result in the expenditure of funds by the State Agency or
Institution of Higher Education or that is a Revenue Contract, and the likely result of a
failure to perform by the State Agency or Institution of Higher Education would not result
in the expenditure of State funds.
2.24.
Outsource Contract-Third Party Payor – A State Contract between a State Agency or
Institution of Higher Education and another Party for personal services, where the State
Agency or Institution of Higher Education:
2.24.1
a Revenue Contract, and the likely result of a
failure to perform by the State Agency or Institution of Higher Education would not result
in the expenditure of State funds.
2.24.
Outsource Contract-Third Party Payor – A State Contract between a State Agency or
Institution of Higher Education and another Party for personal services, where the State
Agency or Institution of Higher Education:
2.24.1. Is charged with providing the function or services that are the subject matter of
the Outsource Contract to members of the public;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
43
2.24.2. Delegates performance of all or a part of the function or service to the other
Party, but does not dictate the Party’s operations beyond providing limited input
regarding the Party’s performance of its obligation; and
2.24.3. Mandates that members of the public, and not the State Agency or Institution of
Higher Education, are responsible for paying the other Party to perform the
function or service; for example, where an applicant seeking a license or
certification from the State pays the other Party for providing testing services that
are required as a prerequisite to the grant of such license or certification.
2.25.
Party – See Fiscal Rule 3-1 (Commitment Vouchers).
2.26.
Personal Property Lease or License Agreement – A State Contract between a State
Agency or Institution of Higher Education, as lessee or licensee, and the owner of
personal property, as lessor or licensor, where the State Agency or Institution of Higher
Education pays the lessor for the right to use such personal property for the term of the
lease or license. See the State Controller Contract, Grant, and Purchase Order Policies.
2.27
greement – A State Contract between a State
Agency or Institution of Higher Education, as lessee or licensee, and the owner of
personal property, as lessor or licensor, where the State Agency or Institution of Higher
Education pays the lessor for the right to use such personal property for the term of the
lease or license. See the State Controller Contract, Grant, and Purchase Order Policies.
2.27.
Price Agreement – A State Contract between the Department of Personnel &
Administration, State Purchasing and Contracts Office, and a contractor, which allows
State Agencies and Institutions of Higher Education to order goods or services from the
contractor, pursuant to the terms of the price agreement, by issuing a Purchase Order,
Task Order, or other approved order form.
2.28.
Professional Services Contract – A State Contract between a State Agency or Institution
of Higher Education and another Party for the performance of any of the following
services: architectural, engineering, land surveying, industrial hygienist, and landscape
architect, as defined in §24-30-1402, C.R.S.
2.29.
Real Property Lease/License Agreement – An Agreement between a State Agency or
Institution of Higher Education and another Party, where the State Agency or Institution of
Higher Education:
2.29.1. As landlord or licensor, owns the real property subject to the Real Property
Lease/License Agreement and gives the other Party to the Real Property
Lease/License Agreement, as tenant, the right of possession of such property for
the term of the Real Property Lease/License Agreement; or
2.29.2. As tenant or licensee, obtains the right of possession of the real property subject
to the Real Property Lease/License Agreement from the owner of such property,
as landlord or licensor, for the term or the Real Property Lease/License
Agreement.
2.30.
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.
2.31
f possession of the real property subject
to the Real Property Lease/License Agreement from the owner of such property,
as landlord or licensor, for the term or the Real Property Lease/License
Agreement.
2.30.
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.
2.31.
Revenue Contract – An Agreement between a State Agency or Institution of Higher
Education and another Party where cash or property or both are paid to the State,
resulting in revenue recognition, which does not require the expenditure of State funds or
create a financial obligation to the other Party on the part of the State Agency or
Institution of Higher Education.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
44
2.32.
Reviewing Attorney – An assistant attorney general, special assistant attorney general or
other attorney authorized by the State Attorney General and employed by a State Agency
or Institution of Higher Education, who has received a written designation as a Reviewing
Attorney from the State Controller. A written designation from the State Controller is
personal to the Reviewing Attorney and may not be assigned or further delegated. The
designation is limited to the specific responsibilities and authority set forth in the written
designation and may be terminated or modified at any time at the sole discretion of the
State Controller.
2.33.
Sale of Securities – The offer, issuance or sale of securities by the State of Colorado or
any State Agency or Institution of Higher Education. Securities may include certain Debt
Contracts.
2.34
signation is limited to the specific responsibilities and authority set forth in the written
designation and may be terminated or modified at any time at the sole discretion of the
State Controller.
2.33.
Sale of Securities – The offer, issuance or sale of securities by the State of Colorado or
any State Agency or Institution of Higher Education. Securities may include certain Debt
Contracts.
2.34.
Settlement Agreement – A State Contract between a State Agency or Institution of Higher
Education and another Party for the purpose of ratifying agreements concerning
employment, contractual, or legal disputes, where a State Agency or Institution of Higher
Education is required to make a payment, either in funds or in-kind, to the other Party,
directly or indirectly, and includes any agreement that diverts revenue that would
otherwise be due to the State, requires the State to forgo the right to receive funds,
property or services, or obligates the State to perform a service for another Party, where
failure to perform such service would result in payment of State funds to the other Party.
2.35.
Sponsored Project Agreement – A State Contract between an Institution of Higher
Education and another Party, where the Institution of Higher Education receives or
expends 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.
2.36.
State Contract – A Commitment Voucher between a State Agency and/or Institution of
Higher Education and another Party to acquire supplies, services, or construction, to
lease supplies or real property or to dispose of supplies for the direct benefit of the State,
and that does not include Small Purchase Documentation, Purchase Orders, Grant
Agreements, or Small Dollar Grant Awards, each as described in Fiscal Rule 3-1
(Commitment Vouchers)
en a State Agency and/or Institution of
Higher Education and another Party to acquire supplies, services, or construction, to
lease supplies or real property or to dispose of supplies for the direct benefit of the State,
and that does not include Small Purchase Documentation, Purchase Orders, Grant
Agreements, or Small Dollar Grant Awards, each as described in Fiscal Rule 3-1
(Commitment Vouchers). Interagency Agreements, as described in Fiscal Rule 3-5
(Interagency Agreements) are not State Contracts because they are not Commitment
Vouchers.
2.37.
Task Order – An agreement used to define, authorize, and encumber funds for a project
under a Main Task Order Contract. A Task Order must include: a project description that
states the final deliverables; the maximum amount to be paid for the project that reflects
costs (e.g., hourly rates) consistent with the Main Task Order Contract; and the
performance period for the project.
2.38.
Utility Cost-Savings Contract – An energy performance State Contract, shared-savings
State Contract, or other State Contract in which utility cost savings are used to pay for
services or equipment. See §24-30-2001(6), C.R.S.
3.
CATEGORIES OF STATE CONTRACTS
The following categories provide examples of different types of State Contracts, but are not all
inclusive and any State Contract may combine any two or more of these types.
3.1.
Expenditure Contracts
3.1.1.
Capital Construction Contracts;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
services or equipment. See §24-30-2001(6), C.R.S.
3.
CATEGORIES OF STATE CONTRACTS
The following categories provide examples of different types of State Contracts, but are not all
inclusive and any State Contract may combine any two or more of these types.
3.1.
Expenditure Contracts
3.1.1.
Capital Construction Contracts;
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
45
3.1.2.
Central Services Contracts;
3.1.3.
Contingency-Based Contracts;
3.1.4.
Employee Voluntary Separation Agreements;
3.1.5.
Fund Management Services Agreements;
3.1.6.
Goods Contracts;
3.1.7.
Information Technology Contracts;
3.1.8.
Intergovernmental Agreements – State has a financial obligation;
3.1.9.
Investment Advisory Services Agreements;
3.1.10. Outsource Contracts-Third Party Payor;
3.1.11. Personal Property Leases/Licenses – State as lessee or licensee;
3.1.12. Professional Services Contracts;
3.1.13. Real Property Leases/ Licenses – State as tenant or licensee;
3.1.14. Real Property Purchase Agreements – State as buyer; and
3.1.15. Settlement Agreements.
3.2.
Revenue Agreements
3.2.1.
Franchise Agreements;
3.2.2.
Real Property Leases/Licenses – State as landlord or licensor; and
3.2.3.
Real Property Purchase Agreements – State as seller.
3.3.
Other Agreement Types
3.3.1.
Debt Contracts – State as borrower;
3.3.2.
Intergovernmental Agreements – State has no financial obligation
3.3.3.
Loan Contracts – State as lender;
3.3.4.
Non-Expenditure Contracts other than Revenue Contracts;
3.3.5.
Price Agreements;
3.3.6.
Sale of Securities Agreements;
3.3.7.
Sponsored Project Agreements; and
3.3.8.
Utility Cost-Savings Contracts.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
er;
3.3.2.
Intergovernmental Agreements – State has no financial obligation
3.3.3.
Loan Contracts – State as lender;
3.3.4.
Non-Expenditure Contracts other than Revenue Contracts;
3.3.5.
Price Agreements;
3.3.6.
Sale of Securities Agreements;
3.3.7.
Sponsored Project Agreements; and
3.3.8.
Utility Cost-Savings Contracts.
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
46
4.
RULE
4.1.
Each State Agency or Institution of Higher Education shall use a State Contract as
described in this Rule when Fiscal Rule 3-1 (Commitment Vouchers) requires the use of
a State Contract as the Commitment Voucher.
5.
CONTENT OF STATE CONTRACTS
5.1.
Expenditure Contracts and Other Contract Types that result in an expenditure of State
funds, including Debt Contracts and Price Agreements – The general provisions of this
subsection shall apply to all State Contracts that result in an expenditure of State funds or
the disposition of State property, except as limited or excluded in the specific subsections
covering: (a) real property purchases (State as buyer), leases (State as tenant), and
licenses (State as licensee) and (b) Settlement Agreements and Employee Voluntary
Separation Agreements. See the State Controller Contract, Grant, and Purchase Order
Policies.
5.1.1.
The following provisions shall be included in (a) Expenditure Contracts, (b) Debt
Contracts, and (c) Price Agreements:
5.1.1.1. Identification of the State Agency or Institution of Higher Education and
the other Party or Parties;
5.1.1.2. Statutory authority (except for Institutions of Higher Education);
5.1.1.3. Statement of work;
5.1.1.4. Payment Terms, as defined in Fiscal Rule 2-3, including maximum dollar
amount;
5.1.1.5. Effective date and termination date of the State Contract;
5.1.1.6. General terms and conditions;
5.1.1.7. Special Provisions (see §13 of this Fiscal Rule);
5.1.1.8. Signature and cover page(s) as described in the State Controller
Contract, Grant, and Purchase Order Policies; and
5.1.1.9
ement of work;
5.1.1.4. Payment Terms, as defined in Fiscal Rule 2-3, including maximum dollar
amount;
5.1.1.5. Effective date and termination date of the State Contract;
5.1.1.6. General terms and conditions;
5.1.1.7. Special Provisions (see §13 of this Fiscal Rule);
5.1.1.8. Signature and cover page(s) as described in the State Controller
Contract, Grant, and Purchase Order Policies; and
5.1.1.9. Statement that the Contract shall not be valid until it has been approved
by the State Controller or delegate.
5.1.1.9.1.
If the Contract is for a Major Information Technology
Project, then a statement that the Contract shall not be valid until
it has been approved by the State’s Chief Information Officer or
delegate.
5.1.2.
Real Property Purchase Agreements (State as buyer), Leases (State as tenant)
and Licenses (State as licensee) – State Contracts for the purchase, lease or
license of real property shall contain the following provisions:
5.1.2.1. Identification of the parties;
5.1.2.2. Statutory authority (except for Institutions of Higher Education);
CODE OF COLORADO REGULATIONS
1 CCR 101-1
Division of Finance and Procurement
47
5.1.2.3. A description of the property and any serv
This text is long and has been trimmed here. Open the source document for the complete record.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.