GUIDELINES
FOR
DISBURSEMENT OF FUNDS
FY 2013-2014
Texas A&M University-Texarkana
November 14th and 15th, 2013
INTRODUCTION
• REQUIRED BY THE TEXAS A&M UNIVERSITY
SYSTEM REGULATION 21.01.03.
• FOR ALL PERSONNEL WHO ARE INVOLVED
WITH VOUCHER PREPARATION OR
APPROVAL
• INCLUDES BOTH PREPARER AND
APPROVER
2
Please Direct Disbursement of Funds Questions to
Fiscal Department Personnel
•
•
•
•
•
•
•
•
•
•
•
James Scogin
Cynthia Henderson
Marc Icenhower
Lacy McMillon
Cathy Adams
Shannon Whitten
Vivian Holmes
Marcie Whisenhunt
Dana Lohse
Ebony Mason
ext 3110
ext 3053
ext 3050
ext 3173
ext 3171
ext 3056
ext 3192
ext 3112
ext 3122
ext 3125
Accounting
Purchasing
Accounting
Accounts Payable
Accounting
Accounting
Purchasing
Travel/Inventory
Accounts Payable
Grants
3
PURCHASING GUIDELINES
• THE TEXAS A&M UNIVERSITY SYSTEM
DISBURSEMENTS OF FUNDS MANUAL
IS LOCATED AT:
• http://www.tamus.edu/assets/files/budgetsacct/pdf/DisbursementManual2010Updates.pdf
• EXPENDITURE OF FUNDS GUIDELINES
POLICIES & REGULATIONS(SECTION 25)
• http://www.tamus.edu/offices/policy/policies/index.html
4
DELEGATED PURCHASES
• ALLOWED TO PURCHASE GOODS AND SERVICES
• MAXIMUM DOLLAR LIMITS:
– PURCHASES OF GOODS - UP TO $3,000 PER
REQUISITION
– PURCHASES FOR SERVICES - UP TO $3,000 PER
REQUISITION
• EXPENDITURES $3,000 & OVER MUST BE SENT TO
PURCHASING for processing
• All requisitions (Except E-docs) $1,000 or over must be signed
by the appropriate VP (unless the VP is the account manager)
5
DELEGATED PURCHASES (CONT)
•
NO EMPLOYEE OR DEPARTMENT MAY INTENTIONALLY OR KNOWINGLY
MAKE OR AUTHORIZE SEPARATE, SEQUENTIAL OR COMPONENT
PURCHASES TO AVOID COMPETITIVE BID REQUIREMENTS. Large purchases
may not be divided into small lot purchases in an attempt to meet purchasing
requirements!
•
USE EXISTING STATE CONTRACTS WHEN AVAILABLE….Contact the
Purchasing department for assistance.
Texas A&M University-Texarkana is proud to promote the cooperative
buying networks listed below:
https://www.eandi.org/Default.aspx (Educational & Institutional)
http://www.buyboard.org
http://www.njpacoop.org/
http://www.uscommunities.org/
http://www.tips-usa.com/
http://www.tcpn.org
http://www.nationalipa.org/
•
•
•
•
•
•
•
•
6
DELEGATED PURCHASES
(CONT)
• GOODS OR SERVICES FROM OTHER A&M SYSTEM
MEMBERS OR STATE AGENCIES DO NOT REQUIRE
BIDDING REGARDLESS OF THE DOLLAR AMOUNT
OR SOURCE OF FUNDS.
• DEPARTMENTS MUST USE HISTORICALLY
UNDERUTILIZED BUSINESSES (HUBs)WHEN
POSSIBLE. (i.e. office supplies, computers, printers)
• A minimum of one (1) bid from a HUB vendor is
required for delegated purchases.
7
HISTORICALLY UNDERUTILIZED
BUSINESSES (HUBs)
• A STATE AGENCY MUST MAKE A
GOOD FAITH EFFORT TO INCREASE
CONTRACT AWARDS TO HUB
VENDORS.
• FOR CONTRACTS EXCEEDING $75,000
MUST DETERMINE WHETHER THERE
ARE HUB SUBCONTRACTING
OPPORTUNITIES.
8
HISTORICALLY UNDERUTILIZED
BUSINESSES (HUBs)
• THREE RESOURCES TO ID HUB
VENDORS
– http://www.window.state.tx.us/procurement/
– http://finance.tamu.edu/hub/directory/public/defau
lt.asp
– Use FAMIS screen 173 or 204 to determine if the
vendor is a HUB
9
LIMITED /REQUISITION (R-docs) & Exempt Purchases
1. What is an “L” document or limited
purchase document?
Created by a department for purchases of
$3,000 or under to vendors such as Gonzalez
Office Supplies, University Bookstore or
TISD (food services).
“L” docs are also used for certain other
types of payments such as registrations,
subscriptions, utilities, club expenditures,
memberships, etc. depending primarily on
what types of purchases are common to
your department.
10
•
•
•
For example, your order to Gonzalez is
electronically sent to the vendor bypassing
the Purchasing department when you used
an L-doc number created in FAMIS and
entered into the vendor’s system.
Central Receiving will advise you of your
order arrival or the vendor will deliver
directly to your department. (L-docs only)
If the vendor you need is not on FAMIS
(Screen 204), you will need to provide to
provide Accounts Payable with a W-9 form
filled out by the vendor before your
document can be processed in FAMIS.
11
2. What is an “R” document or requisition
document?
• A requisition that must be created for all
goods/services, where at least one (1)of the
following conditions exists:
 Vendor requires a signed hardcopy of a
purchase order;
 Goods/Services are over $3,000; or
 Goods/Services is an inventory item. (i.e.
computers, furniture, equipment)
12
3. What is an “E” document (E-doc)
requisition?
• A requisition that is based on purchases that
have been exempted from competitive
bidding by State law or by the University.
• Examples are: subscriptions, utilities, membership
dues, employee training/registration fees, postal
services, educational books, catering, etc.
• E-docs DO NOT produce hard copy purchase orders
• E-docs DO NOT have a specific dollar limit
• E-doc object codes are maintained on FAMIS Scr 306
• Advertising may NOT be done on an E-doc; must be
done on a R-doc and processed through Purchasing.
13
ELECTRONIC REQUISITIONING
• 1. The Routing & Approval process will
electronically send both your “R” docs and
“L” docs to the appropriate VP (or their
substitute can access docs) for signature
approval needed for docs $1,000 and over.
• 2. Please contact Purchasing or Accounts
Payable if you have any questions as to
whether you should submit an “L” , “R” or
“E” doc.
14
Printing
• Printing is required to be competitively
bid, regardless of dollar amounts.
• Examples: brochures, publications,
programs, tickets, forms, etc.
• Bids are not required when the agency is
utilizing one of the state print shops
(including university-owned printing
centers).
15
Invoices/Receipts
• Original invoice/receipt is required to process a
voucher/payment request. Website: Adm/Acct
• If the original invoice/receipt is not available, a
statement must be included on the purchase
voucher/payment request stating that the
original invoice is not available.
• Invoices submitted by departments to Accts
Payable are subject to return to department for
“not available” statement if original is not
submitted.
16
Alternative Invoices/Receipts
(expectation is that a hard copy does not exist)
• Carbonless copies of original invoices retained
by the vendor,
• Fax copies if date and time stamp are visible on
document, and
• E-mailed invoice document if all of the following
conditions are met:
– The vendor sent it directly to you via e-mail,
– The invoice is attached to the vendor’s e-mail in
Adobe pdf format, and
– You forward the e-mail from the vendor directly to our
A/P personnel.
17
State of Texas Prompt Payment Law
requires a state agency to make payment
to the vendor by the 30th calendar day after
the latest of:
• the day the agency received the goods; or
• the day the vendor completed performing its
services; or
• the day the agency received the invoice
Department is responsibe for payment of
interest if conditions are not met.
18
Vendor Information
• All companies and individuals must have a
W-9 form on file with the fiscal office prior
to payment.
• The Internal Revenue Service W-9 is
located on the A&M – Texarkana website
Click on Administration under institutional
forms.
19
Contract Approval
• All contracts, regardless of amount, negotiated by any
A&M System Member must be reviewed by the VPFA.
• Purchases to be made through a contract that will
exceed the delegated dollar limit must follow purchasing
guidelines and will require a requisition or Request for
Proposal prior to any contracting activity.
• Guidelines on delegated authority can be found in
System Regulation 25.07.01, located at
http://www.tamus.edu/offices/policy/policies/pdf/25-07.pdf
20
Advance Payments
A state agency may not pay for goods or services before
their delivery except:
• There is a legitimate public purpose for making the payment in
advance.
• Rent for leased space a maximum of seven days before the
payment due date.
• Periodical subscriptions a maximum of six weeks before the renewal
date.
• Rental fee for a meeting room, exhibit booth or a registration fee in
advance if there is a legitimate public support for making the
advance payment. Examples of legitimate reasons include
significant cost savings or reserving a space when enrollment is
limited.
21
Advance Payments (cont.)
• Annual maintenance agreement, an internet connection, a post
office box rental, insurance, or a surety or honesty bond in advance,
regardless of whether it covers more than one fiscal year.
• Advance payments to a federal agency or another state agency for
goods purchased from the agency if the advance payment will
expedite the delivery of the goods.
• Books and other published library materials before receiving them if
reasonably necessary for the efficient operation of the institution’s
libraries.
• The Texas Education Code specifically prohibits the use of Higher
Education Funds (HEF) to pay for goods or services before their
delivery.
22
Advertising
• All purchase vouchers must have the
original tear sheet of the advertisement
attached
• Types of advertising include, but are not
limited to: newspapers, magazines,
books, internet and radio and TV.
23
Alcoholic Beverages
• State funds may not be used to purchase
alcohol or alcoholic beverages for personal
consumption or entertainment.
• The President of Texas A&M University –
Texarkana designates and receives Chancellor
approval for places to serve alcoholic
beverages.
• The President must approve any event for which
alcohol will be purchased and served.
24
Conference Registration Fees
• Advance payments of conference registration fees are
made by issuing a purchase voucher/payment request
directly to the organization sponsoring the conference.
• Optional expenses such as meals and lodging cannot be
paid for in advance.
• Payment of fees cannot be made more than six weeks in
advance, except when registration is required further in
advance to reserve space or to obtain a substantially
reduced rate.
25
Employee Certifications/Licensure
• Professional fees or occupation taxes may be
paid on behalf of its employees:
• If the responsible agency authority determines
that the agency expenditures would be directly
and substantially related to the agency’s
governmental function.
• The President’s approval is required.
26
Food Purchases
• State funds cannot be used for the purchase of
food, coffee, or related items for consumption by
employees or departmental visitors.
• Expenditures for food and/or refreshments from
institutional funds are authorized to the extent
such expenditures enable the state agency to
carry out their educational function.
• All food purchases must follow A&M System
Policy 21.01.
27
Food Purchases (cont.)
• Food for any purpose other than lab use (i.e.,
Human Sciences or Biology) require a request to
purchase that answers the 5 W’s (who, what,
when, where, and why) before it can be
approved for payment.
• “Who” must be the names of the individuals
attending the event. Sign-in sheets are required;
exception is events attended by members of
governing boards or dignitaries (a membership
list or roster list must be attached) or for events
attended by the general public.
28
Expenditures for food and/or refreshments must comply with
one or more of the following direct purposes:
• The recognition or promotion of academic achievement, athletic
achievement, scholarship and/or service to a Member of the A&M
System or the State;
• The support of educational classroom labs including early childcare,
nutrition and food service labs;
• The promotion of the communication of intellectual ideas among
students, faculty, staff, administrators and/or representative of the public;
• The support of student events and activities that are sponsored by a
Member of the A&M System;
• The recruitment of students, faculty, and staff;
29
Expenditures for food and/or refreshments must comply with
one or more of the following direct purposes (cont.):
• The promotion of the exchange of ideas with community leaders
regarding the role of a member of the A&M System in the community;
• The assistance of the Regents, accrediting agencies, officials from other
universities and /or public officials in inspecting and reviewing the
facilities and programs of a Member of the A&M System;
• The support of a program of continuing education sponsored by a
Member of the A&M System.; or
• The conduct of staff conferences and receptions or other events
designed to recognize and honor employees.
30
Gifts and Awards
State funds may be used for employee awards under the
following, more specific and stricter, restrictions:
• Service awards, safety awards and other similar awards for
professional achievement or other outstanding service. The
award must not exceed $100 per employee.
• For awards to volunteers, a state agency may expend funds
to purchase engraved certificates, plaques, pins, and other
awards of a similar nature that do not exceed $50 in value
per volunteer.
31
Independent Contractors
Six factors can used as criteria in determining whether an
individual is an employee or independent contractor:
1. The extent to which the services provided are an
integral part of the contractor’s business;
2. The permanency of the employment relationship;
3. The amount of the contractor’s investment in facilities
and equipment;
4. The nature and degree of control and supervision by the
employer;
5. The contractor’s opportunities for profit and loss; and
6. The amount of initiative, judgment, or foresight in open
market competition with others required for the success
of the claimed independent enterprise.
32
Independent Contractors (cont.)
• Generally: If an individual is employed to
perform unskilled labor, is paid an hourly
rate, and is closely supervised, he/she
probably would not meet the test of an
independent contractor and, therefore,
should be treated as an employee.
• Contact the Payroll Department for
assistance
33
Interagency Agreements/Contracts
• Interagency Agreements/Contracts may only be
approved by the President or Vice President for
Finance and Administration.
• Contracts require a review by the appropriate
Vice President and Fiscal Office before sent for
signature by the President or Vice President for
Finance and Administration.
• Proposed forms and instructions for Interagency
Cooperation Contracts and Intrasystem
Cooperation Contracts can be found at
http://tamus.edu/offices/budgetsacct/contracts/general-cooperationcontracts.html
34
Memberships-Non-Professional
Organizations
Texas A&M University-Texarkana does
not pay or reimburse individual
membership fees in non-professional
organizations unless approved by the
President. Expenditures for certain
employee social club memberships are
allowable when paid from unrestricted gift
or other institutional funds
35
Memberships-Professional
Organizations
• Membership fees can be paid with state funds only if you
provide written documentation that you have checked the
State of Texas ethics web site, located at
http://www.ethics.state.tx.us/dfs/loblists.htm, and confirm that
the organization is not listed under “Lobby List-Registered
Lobbyists and Clients, sorted by Clients.”
• Membership in professional organizations should be in the
name of Texas A&M University-Texarkana and not in the
name of an individual. The purchase voucher/payment
request must state the proper public purpose that will be
served by the expenditure and how the expenditure
relates to the specific statutory duties of the department
or agency.
36
Payments to Non-U.S. Citizens
• Contact the Payroll department for
assistance.
37
Private Consultants
• Private/outside consultants may be used if there
is a substantial need and such services cannot
be adequately performed by A&M System
personnel or through contract with another state
agency.
• Such contracts may be entered into by following
normal contracting procedures.
• See System Regulation 25.99.
(http://tamus.edu/officies/policy/policies/pdf/25-99-03.pdf) for
exemptions, requirements, and procedures
related to the contracting process.
38
Private Consultants (cont.)
• The employment of any individual by an A&M System
Member as a private consultant, in addition to his/her normal
employment with the same Member, should be processed
through the payroll department.
• Contact the Payroll Department for assistance.
39
Professional Services
• The selection and engagement procedures for
professional services are subject to the Professional
Services Procurement Act.
• A state agency must provide written notice to the
Legislative Budget Board (LBB) of a professional
services contract, other than a contract for physician or
optometric services, if the amount of the contract
exceeds $14,000.
•
Additional information regarding the procurement of
professional services can be found in System Regulation
25.99.03, located at
http://tamus.edu/offices/policy/policies/pdf/25-99-03.pdf
40
Publications
• State funds may not be used for the publication,
recording, production, or distribution of any item or
matter unless the publication, recording or production is
(1) essential to accomplish or achieve a strategy or
outcome target established by the General
Appropriations Act; or (2) required by law.
• State funds may not be expended to print a publication
of any type that prominently displays the name or picture
of a statewide elected official, any appointed officer of
the state, or an employee.
41
Recruitment of Students
• State funds may not be used for recruiting
out-of-state students.
• This includes transportation costs for outof-state prospective students or university
employees.
• Institutional funds may be used for out-ofstate recruiting costs.
42
Subscriptions
• Subscriptions should be in the name of Texas
A&M University-Texarkana and must be mailed
to the University’s address.
• Payment cannot be made more than six weeks
before the start of the subscription period.
• If payment is required earlier than six weeks, an
explanation must be included on the purchase
requisition request.
• The beginning and ending date of the
subscription must be stated on the purchase
voucher.
43
State & Federal Taxes
Departments are encouraged to submit a Texas Sales
and Use Tax Exemption Certification to the vendor at the
time of purchase. The form can be found on the A&M –
Texarkana website under Administration/Travel
Information.
44
THANK YOU
45