Section VIII, Fiscal Management
Effective Date: 4/14/15
The Central New Mexico (CNM or the College) Governing Board delegates to the CNM President responsibility for general fiscal management of the College. The Board shall adopt specific policies relative to fiscal management as required by state statute and as otherwise deemed appropriate. Any appropriate related procedures will be included in the Source – the procedures online manual at CNM. These policies-which may be included as separate policies in the Governing Board Handbook or related documents shall be on file in the President's Office and shall include, but not be limited to, the following:
- Budget. The Board annually shall conduct a public budget review and approve a budget for the College for the next fiscal year. The Board shall approve all budget adjustment requests made to the New Mexico Higher Education Department.
- Agreement between Governing Board and CNM Foundation. The Governing Board and the CNM Foundation shall have a memorandum of agreement addressing their relationship, the Foundation's organization and function, and the management and distribution of gifts and donations. See the CNM Foundation Amended and Restated MOU.
- Agreement between Governing Board and CNM Ingenuity. The Governing Board and CNM Ingenuity shall have a memorandum of agreement addressing their relationship, Ingenuity’s organization and function, and the management and disbursement of gifts, donations, and other funds. See the .
- Audits. The Board shall adopt an Internal Audit Charter to provide guidelines relative to audits and evaluations of the College’s fiscal operation. See the .
- Signature Authority, Check Signing and Wire Transfer Authority. The Board authorizes the President to designate persons to sign checks and authorize wire transfers. The Board also authorizes the President to designate persons and/or College roles authorized to legally bind the College by signing financial documents and other agreements. See the .
- Investments. The Governing Board shall adopt a policy providing guidelines for investment of College assets. See the .
- Endowment Funds. The Governing Board shall develop an oversight and investment policy for the CNM endowment funds.
- Travel. The Board shall adopt a policy outlining reimbursement and arrangements for College-related travel, including establishing maximum mileage and per diem rates consistent with state statute. See Employee Handbook, 6.03 Payment for Travel and Travel Related Conferences.
- Procurement. The Board shall adopt a policy that follows state statute (The Procurement Code) in the procurement of services, tangible personal property, and construction. See Governing Board Handbook, 8.03 Procurement.
- Representation and Entertainment Expenses. The Board shall adopt a policy regarding use of appropriated funds and the College’s general activity account (GAA) for representation and entertainment expenses. See GAA Governing Board Policy.
- Debt Management. The Board shall adopt a debt management policy to provide a framework to guide decisions regarding the use and management of College debt. Adherence to debt policies will help to ensure that the College maintains a sound debt position and that credit quality is protected. See the .
- Fund Balance Policy. The Board shall adopt a fund balance policy that assures long term fiscal stability for the College. See the .
Effective Date: 2/6/16
- As part of the annual CNM Master Plan process, the CNM Governing Board shall approve the acquisition and disposition of real property and other capital outlay projects that have an estimated project cost exceeding $100,000 ( including gross receipts tax) and that fall under the following categories:
- Any sale or purchase of real property. An independent appraisal of the property shall be obtained.
- Any project which results in the additional square footage, whether from construction or long-term lease of a new facility or building addition, or purchase of portable buildings
- Any proposal to issue bonds.
- Any alterations, site improvements,new building construction or building renovation.
- Any demolition of real property.
- Any informational technology (IT) project based on total estimated costs exceeding $100,000 (including gross receipts tax).
- The Governing Board approval shall occur annually as part of the update to the five-year Master Plan project list provided by administration. Any project not included in the annual Master Plan, with an estimated project costs exceeding $100,000 (including gross receipts tax) project list will be presented to the full Board for project approval as an out-of-cycle master plan project.
- Change orders that increase the approved costs of a Master Plan project by up to ten percent (10%) may be approved by the Vice President for Finance and Operations.
- Change orders that increase the approved cost of a project by more than ten percent (10%) shall be presented to the Capital Outlay Committee of the Governing Board for approval.
- The sale, trade or lease of any CNM owned Real Property, for a period of more than five (5) years or more than $25,000, requires New Mexico Board of Finance Approval per 1.5.23 NMAC.
- Master Plan Projects that include any of the following require New Mexico Higher Education Department Approval per 18.104.22.168.C NMAC.
- Any purchase of Real Property.
- Projects that result in additional square footage (including leases).
- Proposals to issue Bonds.
- Alterations or site improvements with an estimated project costs in excess of $300,000.
- Maintenance projects for facilities and information technology may be considered Master Plan or Capital Outlay projects.
- Capital Outlay Projects that are less than the amount to be considered to be a Master Plan Item will require the following College Approvals:
- Major Small Project Item: projects that have an estimated project cost greater than the amount allowed under small purchases (including gross receipts taxes) per Section 13-1-125 NMSA 1978 and less than the amount to be considered a Master Plan item, will require approval by the Budget Office and CNM Executive Oversight Committee (EOC). With the latest change to Section, 13-1-125 NMSA 1978 Effective July 1, 2013 this would be any project with projected costs greater than $60,000 (including gross receipts tax) and less than $100,000 (including gross receipts tax).
- Minor Small Project Items: projects that have estimated project costs that do not exceed the amount allowed under the small purchase limits (including gross receipts taxes) per Section 13-1-125 NMSA 1978 will require approval of the Budget Office and the division Vice President for the requesting division or the President (or designee) for other direct reports.
Section 13-1-97-C NMSA1978 requires all procurement for local public bodies shall be performed by a central purchasing office designated by the governing authority of the local public body and Section 13-1-95.2 NMSA1978 requires effective January 1 of each year beginning in 2014 and every time a chief procurement office is hired, the local public body shall provide to the state purchasing agent the name of the local public body’s chief procurement officer and information identifying the local publics body’s central purchasing office.
Section 13-1-30 NMSA 1978 requires that except as otherwise provided in the Procurement Code [Sections 13-1-28 through 13-1-199 NMSA 1978], that code shall apply to every expenditure by state agencies and local public bodies for the procurement of items of tangible personal property, services and construction.
- The CNM Director of Purchasing and Materials Management will serve as the CNM Chief Procurement Officer as required by Section 13-1-95.2 NMSA 1978 and the CNM Purchasing Office will be designated as the central purchasing office for all procurement as required by Section 13.1-95-C NMSA 1978.
- The CNM Procurement Office will maintain policies and procedures for the procurement of items of tangible personal property, services, and construction that comply with the Procurement Code (Sections 13-1-28 through 13-1-199 NMSA 1978).
- The CNM Chief Procurement Officer, with the consent of the Vice President of Finance and Operations, may delegate to subordinates as deemed necessary and appropriate by clearly delineating in writing such delegated authority and the limitations thereto.
- Master Plan Project procurement with an actual or potential value of $300,000 or more, inclusive of gross receipts tax, must be approved by the Governing Board Capital Outlay Committee.
- Master Plan project procurements with an actual or potential value of $500,000 or more, inclusive of gross receipts tax, must be approved by the Governing Board Capital Outlay Committee and subsequently, by the full Governing Board.
- Any non-Master-Plan procurement with an actual or potential value of $500,000 or more, inclusive of gross receipts tax, must first be approved by the Governing Board Finance Committee and, subsequently, by the full Governing Board.
- Contracts for legal or external auditing services having a value that meets the New Mexico Procurement Code requirements for small purchases per Section 13-1-125 NMSA 1978; an emergency procurement per Section 13-1-127 NMSA 1978; or sole source procurement per Section 13-1-126 NMSA 1978 may be awarded by the central purchasing office without further review or approval by the Governing Board.
- Contracts for legal or external auditing services having a value that exceeds the New Mexico Procurement Code requirements for small purchases, and/or does not meet the requirements for emergency or sole source procurement shall be evaluated and selected in accordance with the following procedures. All applicable general requirements of the Procurement Code shall be followed.
- Upon receipt of the proposals, the central purchasing office shall make a determination as to the responsiveness of each proposal and forward all responsive offers to the chairperson of the Governing Board for legal services or the Audit Committee of the Board for auditing services.
- Based on the proposals and the evaluation criteria set forth in the request for proposals, the Board (or delegated subcommittee) meeting in closed session shall evaluate statements of qualifications and performance data submitted by the responsive offerors and may conduct private interviews with and may require private presentation by any responsible offeror regarding their qualifications, their approach to the project and their ability to furnish the required services. In conducting its evaluation, the Board (or delegated subcommittee) shall be guided by the criteria set forth in the request for proposals.
- In determining which offerors best meet the evaluation criteria, each responsive proposal shall be rated according to the numerical or other quantitative measures assigned to the evaluation criteria approved by the Board.
- The Board (or delegated subcommittee) shall privately rank and give evaluation scores for the proposals of all responsible offerors submitted and shall make a selection from among the ranked/recommended offerors, except that all ranked/recommended offerors may be rejected, in total. In the event of a rejection of all ranked/recommended offerors by the Board (or the delegated subcommittee), the Board shall state its reason or reasons for rejection which shall be placed in the minutes of the meetings at which the rejection takes place. Upon rejection, the procurement process shall cease and a new request for proposals may be issued.
- Responsible offerors ranked, scored and recommended by the Board (or designated subcommittee) may be afforded an opportunity for discussion and revision of proposals. Revisions may be permitted after submissions of proposals and prior to award for the purpose of obtaining best and final offers. Negotiations may be conducted with responsible offerors who submit proposals found to be reasonably likely to be selected for award.
- The Board (or delegated subcommittee) may make its selection on the basis of a study of the proposals submitted by the offerors recommended by the appropriate subcommittee, or by privately interviewing such offerors in a closed meeting, or by a combination of these methods.
- The Board’s (or delegated subcommittee) selection shall be effective only upon the affirmative vote of a majority of a quorum of the Board at a public meeting.
- Generally, the task of negotiating contract terms with the selected offeror or offerors is delegated to the central purchasing office. If needed, assistance from legal counsel is permitted.
- The award shall be made to the responsible offeror or offerors whose proposal is most advantageous to Central New Mexico Community College, taking into consideration the evaluation factors set forth in the request for proposals.
- The names of all businesses submitting proposals and the names of businesses, if any, selected for private interview shall be public information. After an award has been made by the Board, final ranking and evaluation scores for all proposals shall become public information. Businesses which have not been selected shall be so notified in writing after an award is made in accordance with New Mexico Procurement Code.
Effective Date: 3/10/15
The Board delegates to the President responsibility for developing procedures for CNM electronic transactions. Electronic transactions must comply with the following provisions in accordance with the Uniform Electronic Transactions Act (NMSA 1978, §14-16-1 et seq.):
- Electronic transactions shall be conducted exclusively through CNM’s official website or the website of a CNM approved vendor;
- A party wishing to express its assent in an electronic transaction with CNM shall provide such assent electronically in the manner and format prescribed by the terms of the particular agreement;
- A record of an electronic transaction shall be capable of retention by all parties; and
- CNM shall retain a record of all electronic transactions, and such record shall be kept confidential to the extent permitted by law.
Effective Date: 11/10/15
Central New Mexico Community College (“CNM”) will dispose of its real property and tangible personal property in accordance with state law. See NMSA 1978, §§ 13-6-1 and 13-6-2. Pursuant to state law, CNM’s Governing Board designates the Capital Outlay Committee to approve and oversee the disposition of property. Inventory shall be conducted in accordance with state law. See NMSA 1978, § 12-6-10.
A. Physical Inventory of Movable Chattels (Cost greater than $5,000)
CNM shall, at the end of each fiscal year, conduct a physical inventory of movable chattels and equipment costing more than five thousand dollars ($5,000) (Capital Assets) and under the control of the Governing Board. The inventory shall list the chattels and equipment and the date and cost of acquisition. Upon completion, the inventory shall be certified by the Governing Board as to correctness.
B. Disposition of Obsolete, Worn-Out or Unusable Tangible Personal Property (Resale value less than $5,000; Initial cost of $5,000 or more)
CNM’s Capital Outlay Committee, through the authority granted by the Governing Board of CNM, may dispose of any item of tangible personal property, with an initial cost of $5,000 or more, that belongs to CNM and delete the item from CNM’s public inventory if an item:
- has a resale value of $5,000 or less;
- is worn-out, unusable or obsolete, to the extent the item is no longer economical or safe for continued use by CNM.
Prior to deletion of tangible personal property, CNM’s Capital Outlay Committee shall give no less than a thirty-day notice to the State Auditor and New Mexico Higher Education Department. Such notice shall include a copy of the official finding and the proposed disposition of the property, duly sworn and subscribed by each member of the Capital Outlay Committee. For digital equipment with storage capabilities, regardless of initial cost, the Capital Outlay Committee must also certify, in writing, the proper erasure or destruction of the hard drive and submit the certification along with the notification of the proposed disposition of property.
A copy of the official finding and proposed disposition of the property sought to be disposed of shall be made a permanent part of the official minutes of the Governing Board and maintained as a public record subject to New Mexico’s Inspection of Public Records Act.
The Governing Board or designee shall attempt to dispose of tangible personal property in one of the following methods:
- By negotiated sale to any governmental unit of an Indian nation, tribe or pueblo in New Mexico or by negotiated sale or donation to other state agencies, local public bodies, school districts, state educational institutions or municipalities or through the Purchasing Department by means of a competitive sealed bid or public auction.
- If disposal of the subject property is not possible through one of the methods above, the Governing Board may sell, or if the property has no value, donate the property to any organization described in Section 501(C)(3) of the Internal Revenue Code of 1986.
- If disposal is not possible by selling or donating the subject property as described above, the Governing Board may order that the subject property be destroyed or disposed of in accordance with any applicable laws.
- If the Governing Board determines that the subject property is hazardous or contains hazardous materials and may not be used safely, the subject property shall be destroyed and disposed of in accordance with all applicable laws.
Under no circumstances shall CNM’s tangible personal property be donated to an employee or relative of an employee. This does not, however, preclude an employee from participating and bidding for public property at a public auction.
C. Disposition of Obsolete, Worn-Out or Unusable Tangible Personal Property (Initial cost less than $5,000)
The disposal of property with an initial cost of less than $5,000 does not require approval from the Capital Outlay Committee prior to disposal with the exception of digital equipment with storage capabilities. Disposition shall take place according to the methods set forth in Section B of this policy.
D. Disposition of Real Property or Tangible Personal Property (Resale value greater than $5,000)
Upon written determination, CNM may sell or dispose of its real property or tangible personal property in one of the following methods:
- by negotiated sale or donation to an Indian nation, tribe or pueblo located wholly or partially in New Mexico, or to a governmental unit of an Indian nation, tribe or pueblo in New Mexico, that is authorized to purchase land and control activities on its land by an act of congress or to purchase land on behalf of the Indian nation, tribe or pueblo;
- by negotiated sale or donation to other state agencies, local public bodies, school districts or state educational institutions; or
- through the central purchasing office using a competitive sealed bid, public auction or negotiated sale to a private person or to an Indian nation, tribe or pueblo in New Mexico.
The disposition of real property or tangible personal property with a resale value over $5,000 may take place if the disposition has been approved by the New Mexico Higher Education Department.
Any sale, trade or lease of real property belonging to CNM for a consideration of $25,000 or more shall not be valid unless it is approved prior to its effective date by the State Board of Finance.
Prior approval from the New Mexico Higher Education Department is not needed if the tangible personal property is to be used as a trade-in or exchange pursuant to the provisions of New Mexico’s Procurement Code. See NMSA 1978, §§ 13-1-156, as amended.
The New Mexico Higher Education Department may condition the approval of the sale or other disposition of real property or tangible personal property upon the property being offered for sale or donation to a state agency, local public body, school district or state educational institution. In addition, the New Mexico Higher Education Department may credit a payment received from the sale of real property or tangible personal property to CNM. CNM may convey all or any interest in real property or tangible personal property without warranty.
E. Missing or Stolen Property
If a reasonable investigation determines that negligence is not indicated, and every effort has been made to recover lost or stolen items, CNM’s Capital Outlay Committee shall notify the State Auditor of the deletion of the items from its inventory. Copies of Missing/Stolen forms and Incident Reports must be forwarded to CNM’s Internal Auditor.