Accounts Payable Training Presented By Judy Murdoch, Accounts Payable Specialist II [email protected] Ext. 3951 Marcy A. Flores, Asst. Comptroller & Dir. Of Acctg. [email protected] Ext. 4192 Accounts Payable Department Organizational Chart Outline of Topics Funding Sources Purchasing Guidelines Expense Object Codes Controlled & Capitalized Object Codes Funding Sources State - Education and General (E&G) Local - Designated/Auxiliary Federal - Restricted State Funds Account numbers Range (1xxxxx – 19xxxx; 87xxxx – 879999) Voucher numbers Begin with zero Strict Guidelines State guidelines and law must be followed and show direct benefit to the University Local Funds Account numbers Range (2xxxxx, 3xxxxx; 4xxxxx; 5xxxxx; 6xxxxx) Voucher numbers Begin with five Strict Guidelines Texas A&M University System Policies and Regulations must be followed and show direct benefit to the University Federal Funds Account numbers Range (40xxxx) Voucher numbers Begin with five Strict Guidelines Federal Fund guidelines and laws are set by the federal program overseeing the funds. Purchasing Guidelines Reviewing each Purchase Voucher Items to be included on a payment request Invoices / Receipts Required State Documentation Purchasing Guidelines State of Texas Prompt Payment Law 30 day rule Interest (4.25% of unpaid balance) Disputed payments (21 days) Vendor Information W-9 Vendor and Employee Payments Direct Deposit Purchasing Guidelines Advance Payments Prepayment Certification Advertising Original Tear Sheet of Advertisement Aircraft Rental Contact System Aircraft Department Aircraft Operations-TXDOT approval Purchasing Guidelines Alcoholic Beverages Unallowable State Expenditure With approval (gift, grant, fee funds) Alumni Activities State funds may not be used for the support or maintenance of alumni organizations or activities. Audits of State Agencies Unallowable State Expenditure Purchasing Guidelines Auxiliary Enterprises State funds may not be used for support of auxiliary enterprises. Charitable Organizations State agency may not provide money, goods or services to a charitable organization. Purchasing Guidelines Conference Registration Fees Advance payment (6 weeks in adv) Required information on payment request: Name of person attending; Full name of conference; Dates of conference; Reason for prepayment (certification); Agenda. Purchasing Guidelines Employee Certification/Licensure Job-related Employment of Retirees 30-day rule (contact payroll) Flowers, Floral Arrangements, and Plants Unallowable State Expenditure Purchasing Guidelines Food Purchases State funds (Code 4050) (Food purchase with State funds are very limited.) Example of allowable expenditure: Nursery School Required documentation: purpose clearly stated. Institutional funds Code 6339 – Other than Business Meals Code 6340 – Business Meals Required documentation: Names of attendees, purpose of business meeting. Purchase Guidelines Gifts and Awards Institutional Funds State Funds ($100.00 ceiling) Honoraria or Speaking Fees Purchasing Guidelines Memberships/non-professional organizations Memberships/professional organizations All memberships must be approved by Marcy Flores, Asst. Comptroller & Dir of Acctg. Purchasing Guidelines Moving Expenses Agreement Letter along with original receipts. Notary Fees Employees not required to be bonded. http://www.sorm.state.tx.us/Risk_Management/Bonds_and_Insurance/notary_forms.php Purchasing Guidelines Professional Services Accountant Architect Engineer Land Surveyor Physician Registered Nurse Purchasing Guidelines Recruitment of Students Unallowable State Expenditure Speakers A&M System Member Subscriptions Purchasing Guidelines Taxes – Federal and State Exempt from most federal and state Tips and Gratuities Unallowable State Expenditure Object Codes Operating Travel Supplies & Materials Utilities Telecommunications Fees Consultant Services Professional Services Maintenance & Repair Other Services 3000 4000 5000 5100 5200 5350 5400 5500 5600 - 3415 4899 5039 5199 5259 5399 5499 5555 5699 There’s More!!!! Non Capitalized Furn. & Equipment 5700 - 5799 Non Inventoried 5750 - 5774 Rental & Leasing 5800 - 5899 Scholarships 5900 - 5929 Grants 6000 - 6049 Other 6200 - 6450 Items Purchased for Resale 6900 - 6999 How to Code an Expense Properly Remember The 5 W’s Who? Who will be using it? What? What is it and what is it being used for? Why? Why are we purchasing it? When? When will it be used? Where? Where will it be used? Travel Object Codes 3011 or 3111 Code for Airline Ticket 3025 or 3125 Service charge on airline tickets from travel agencies Travel Object Codes 3210- Prospective State Employee Must submit a travel voucher listing the position they applied for in order to be reimbursed – Cannot be reimbursed on an LDOC or a paper Requisition 3410 - Travel Students Conference & Registration Fees for Students (local and non-grant only; NO STATE ACCOUNTS) 3411 Travel Students Travel agency Fees for students Travel Object Codes 3415 - Student Recruiting Expenses Used for expenses incurred during the process of recruiting a prospective student (Ex: hotel for student and parents and meals) 6031 - Grants – Travel & other related expenses Used for Students who are traveling and using grant funds (Ex: Special Programs Participants) 6340 - Business meals Example: a TAMUK faculty or staff member takes a prospective employee to lunch or dinner. Must submit purpose of meal or agenda, list of attendees, and meal reimbursement form indicating whether or not alcohol was purchased Codes Related to Food 4050 – Food Purchases (Research, Seminars, Teaching) To record payment for the purchase of food used in a research, seminar or teaching capacity. This code does not include purchase of food for student activities, business meals (6340) or animals purchased for immediate slaughter for food. (Ex: Walmart, HEB, etc.) 4051–Not Used Codes Related to Food 6338 – Catering Services To record payment for catering or other food services provided by any external vendor. Examples: Sodexho, Linda’s Main Street Café, Young’s Pizza (when catering) 6339 – Food Purchases (not business meals) To record payment for the purchase of food. This includes purchase of food for student activities other than room and board. Excludes business meals (6340), food research, seminars, teaching (4050) or animals purchased for immediate slaughter for food. ( Ex: Walmart, HEB, Lydia’s Pizza Hut, etc. (not allowed on state accounts) 4010 – Office General Should be used to capture TRUE Office supplies such as: Pens, pencils, paperclips, rubber bands Paper, envelopes, post its, index cards Folders, notebooks Calendars, tape, calculator ribbon Should NOT include items such as: Stapler, hole punches, rubber stamps, nameplates, rulers, blank video tapes, easels (4085) Diskettes, computer toner, printer cartridges, cd’s (4020) Printer (5760) Surge Protector (4090) 4011 Paper Goods & Janitorial Should include items used for janitorial purposes such as: Disinfectant Disposable gloves Paper Towels Any Cleaning Solutions Air Filters Napkins & Paper Plates Light Bulbs (not 4076) 4013 – Research Supplies This code should be used to capture TRUE Research expenses such as: DNA Samples Test Tubes Jars or Viles Venom Tags for Wildlife Microscope Slides Thermometer Covers Not used for items such as: • Freezers (5752) • Ice Chests (5752) • Books (5765) • Chemicals (4040) • File Cabinets (5750) • Deer Feed (4055) More Codes and Their Uses: 4014 – Supplies Ammunition Should be used strictly for ammunition 4030 – Fuels and Lubricants Should be used for items such as: grease, oil, antifreeze and fuel additives. Should not be used for Gasoline (4036) Diesel (4037) or Propane (4038) 4040 – Chemicals & Gases Should be used for items such as: dry ice, oxygen, liquid nitrogen, refrigerant gases etc. 4055 – Farm, Ranch and Nursery Supplies Should include animal feed, veterinary drugs, hay, block salt, and halters. Does not include fertilizer (4056) or pesticides(4058) More Codes 4076 – Building Supplies and Materials Includes countertops, breaker boxes, electrical outlets, lumber, door locks, paint etc. 4080 – Fabric and Linens Includes blankets, pillow cases, fabric for theatre costumes, This does not include uniforms (5755) or t-shirts for camp participants (5641) And still more codes……. 5211 – Membership Dues Includes all Business, Technical and Professional Organizations Must be approved by Asst. Comptroller & Dir. of Acct. (Marcy Flores) 5213 – Membership Dues Other – NOT USED 5215 – Employee Training Registration Fees; Includes payment of registration or other associated fees for seminars and conferences attended by state employees. Must include names, dates, itinerary for event and no acronyms can be used 5217 – Employee Training – Tuition – Not Used 5453 – Other Professional Services To record payment for services rendered on a fee, contract , or other basis by person, firm, corporation, or company recognized as possessing a high degree of learning 5460 – Professional Services w/receipts To record payment for services rendered on a fee, contract, or other basis by a person, firm, corporation, or company recognized as possessing a high degree of learning. Receipts must support all costs – is not taxable under 1099 Ex: Hotel, meals, car rental, airfare 5760 – PC Peripherals/Add Ons $0 - $4,999.99 Used to record payment for the purchase of computer peripherals when the single unit cost is not capitalized, controlled or required to be reported to the State Property Accounting System. Includes items such as: CD ROMS, controllers, docking stations, computer mouse. 5765 – Educational Books, Film & References $0 - $4,999.99 Used to record payment for books and other reference material that are not used in a professional, academic or research library. This includes: cassettes, reference books, slides, dictionaries, reference material on diskettes, CD-ROMs (not blank) and videos. 5767 – Purchase of Animals Used to record payment for purchase of animals, cadavers, birds, fish, mammals, reptiles, rabbits and insects, dead or alive 5840 – Rental of Motor Vehicles To record payment for the rental or lease of motor vehicles. Example: Renting a vehicle to transport non employees. Object Codes for Fixed Assets Tagging required by State regulations Tag number needs to be assigned and adhered within ten days Will be on department physical inventory Controlled Assets Items that are required to be reported to State Comptroller Must know who is responsible for the item Must know where the item is at all times Controlled Property Controlled (at any cost) Object Code Property Item More Description 5775 Hand Guns All Hand Guns 5775 Rifles All Rifles Controlled ( $500.00 - $4,999.99) Object Code Property Item More Description 5780 Stereo Systems Stereo Systems 5781 Cameras Cameras &Digital Cameras 5782 VCR’s & Televisions VCR’s, Televisions, DVD, Camcorders Computers; Data Projectors Desktop & Laptop Computers; Digital Projectors (used with computer) Printers Non-portable 5787 5788 Capital Assets Single unit cost is $5,000 or more Do not include cost of extended warranty Do not include maintenance agreements Do not include parts listed separately Do include freight and installation cost Capitalized Property Object Code Property Item More Description 8410 Motor Vehicles – Passenger Car Mini-Vans, Cars, Full Size Vans 8415 Motor Vehicles – Other Trucks, SUVs, Buses, Golf Carts, Motorcycles, Trailers, All terrain 8420 Classroom Teaching Equipment Lecturns, Chalkboards, Globes, Stands, Gym Equipment, Hurdles 8421 Office Furnishings and Equipment Bookcases, Cradenzas, Cabinets, Desks, 8422 Medical, Scientific, and Laboratory Equipment Oscilloscopes, Spectophotometers, Cetrifuges, Chromatographs, All Med/Sci/Lab equipment 8423 Artifacts/Historical Treasures Works of Art, Collections 8424 Other Institutional Furnishings and Equipment Printing Machines,Projectors, Stereo Syst, Cameras, TV, VCR, DVD, Camcorder, GPS Equipment, Hand Guns, Rifles, Appliances 8425 Shop and Industrial Equipment Wagons, Conveyer Syst, Tractors, Machinery, Drills, Gin Mach., Grinders, Lathes, Milling, Forklifts, Saws, Lifts, Shears, Textile Tools 8426 Marine Equipment Dept Finders, Buoys, Radar 8430 Aircraft Helicopter, Jet, All Aircraft 8435 Computer Equipment Servers, Desktops, Laptops, Drives, Printers, Scanner, Smartboards, Monitors, Docking Station, Rack, Shelving, Chassis, Mainframe 8440 Software, no license agreements or upgrades All Software 8445 Telecom Equipment Call Distributors, Fax Machines, TTVN Equipment, Teletypes 8455 Purchase of Boats Boats, Boat Motors & Accessories, Ferries, Canoes Resources State of Texas Purchase Policies and Procedures Guide https://fmx.cpa.state.tx.us/fm/pubs/purchase/index.php The Texas A&M University System Policies and Regulations http://tamus.edu/offices/policy/index.html: Texas Government Code http://www.statutes.legis.state.tx.us/?link=GV Internal Revenue Service Forms and Publications http://www.irs.gov/formspubs/ Contact Information Melanie Ramirez extension 2249 Judy Murdoch extension 3951 Andrea Dreiling extension 2011 Jeanette Gonzalez extension 2105 Sandra Charles extension 3950 Betty Contreras extension 3951 Questions?