EAST TENNESSEE STATE UNIVERSITY
Agreement Routing Form Procedures
THE FOLLOWING PROCEDURES MUST BE FOLLOWED TO PROCESS A PERSONAL
SERVICES AGREEMENT, CLINICAL AFFILIATION, OR HARDWARE/SOFTWARE LICENSE
AGREEMENT.
Clinical Affiliation and Hardware/Software License Agreements
The Agreement Routing Form must be completed and forwarded with the proposed contract to the
Comptroller’s Office for review. No one is authorized to sign an agreement that has not been
reviewed by the Comptroller’s Office. Individuals who sign agreements that contain language
unacceptable to the State may be held personally liable for any damages that may result from
subsequent litigation. Financial Procedures Manual FP-14 contains guidance as it relates to these types
of contracts. Hardware/Software License Agreements are most likely to contain language unacceptable to
the State. If you plan to purchase Hardware/Software that requires a License Agreement, please obtain an
example agreement as soon as possible and forward to the Comptroller’s Office for review. The
negotiations often take a considerable amount of time and the sooner this begins, the quicker the license
agreement can be signed.
Personal Services Contracts
The IRS has vigorous enforcement of rules related to whether a person is an independent contractor or
employee. It is extremely important that the two questions on the front of the form as well as the 20
common law questions of the form be properly answered. If the evidence indicates that the person should
be an employee, he/she must be hired in accordance with university personnel policies and procedures.
The Agreement Routing Form must be completed and signed by the University employee who will
supervise and monitor the work to be performed. Certification by clerical staff and others with
insufficient knowledge of or responsibility for, the work to be performed is not acceptable.
If the amount of the agreement is under $500. No formal contract is required if the total expenses for
the work performed is less than $500. The completed Agreement Routing Form along with completed
W-9 form (W-9 to be completed/signed by contractor) and memorandum certifying that the work has
been completed should be forwarded to the Comptroller’s Office so payment can be made. Payment will
NOT be made without a properly completed and signed W-9 on file. As with DTA’s, these amounts will
not be encumbered. If the person with whom we are contracting requires a contract, the contract must be
processed in the same manner as contracts over $500.
If the amount of the agreement is over $500. The Agreement Routing Form must be completed and
signed. A completed W-9 form, a copy of the contract signed by the person with whom we are
contracting, and the Agreement Routing Form should be routed to the Comptroller’s Office at least two
weeks prior to the beginning of the term of the contract. This will allow sufficient time for appropriate
university signatures to be obtained. Payment will NOT be made until a properly completed and signed
W-9 form and a fully executed contract are on file in the Comptroller’s Office.
A standard contract form which can be used for most types of personal service contracts can be found at
http://www.etsu.edu/comptrol/frm.htm. This is a fill in the blank form. The Standard Terms and
Conditions that includes all clauses required by the TBR and State of Tennessee and is to be part of all
contracts can also be found at this website.
Version 06042004