GUIDELINES FOR DISBURSEMENT OF FUNDS FY 2013-2014 Texas A&M University-Texarkana November 14th and 15th, 2013

1. GUIDELINES FOR DISBURSEMENT OF FUNDS FY 2013-2014 Texas A&M University-Texarkana November 14th and 15th, 2013

2. 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

3. Please Direct Disbursement of Funds Questions to Fiscal Department Personnel • James Scogin ext 3110 Accounting • Cynthia Henderson ext 3053 Purchasing • Marc Icenhower ext 3050Accounting • Lacy McMillon ext 3173 Accounts Payable • Cathy Adams ext 3171 Accounting • Shannon Whitten ext 3056 Accounting • Vivian Holmes ext 3192 Purchasing • Marcie Whisenhunt ext 3112 Travel/Inventory • Dana Lohse ext 3122 Accounts Payable • Ebony Mason ext 3125 Grants

4. PURCHASING GUIDELINES • THE TEXAS A&M UNIVERSITY SYSTEM DISBURSEMENTS OF FUNDS MANUAL IS LOCATED AT: • http://www.tamus.edu/assets/files/budgets-acct/pdf/DisbursementManual2010Updates.pdf • EXPENDITURE OF FUNDS GUIDELINES POLICIES & REGULATIONS(SECTION 25) • http://www.tamus.edu/offices/policy/policies/index.html

5. 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)

6. 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/

7. 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 requiredfor delegated purchases.

8. 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.

9. HISTORICALLY UNDERUTILIZED BUSINESSES (HUBs) • THREE RESOURCES TO ID HUB VENDORS • http://www.window.state.tx.us/procurement/ • http://finance.tamu.edu/hub/directory/public/default.asp • Use FAMIS screen 173 or 204 to determine if the vendor is a HUB

10. 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.

11. 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.

12. 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)

13. 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.

14. 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.

15. 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).

16. 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.

17. 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.

18. State of Texas Prompt Payment Law requires a state agency to make payment to the vendor by the 30th calendar day after the latestof: • 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.

19. 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.

20. 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

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

28. 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.

29. 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;

30. 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.

31. 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.

32. Independent Contractors Six factors can used as criteria in determining whether an individual is an employee or independent contractor: • The extent to which the services provided are an integral part of the contractor’s business; • The permanency of the employment relationship; • The amount of the contractor’s investment in facilities and equipment; • The nature and degree of control and supervision by the employer; • The contractor’s opportunities for profit and loss; and • The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent enterprise.

33. 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

34. 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/budgets-acct/contracts/general-cooperation-contracts.html

35. 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

36. 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.

37. Payments to Non-U.S. Citizens • Contact the Payroll department for assistance.

38. 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.

39. 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.

40. 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

41. 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.

42. Recruitment of Students • State funds may not be used for recruiting out-of-state students. • This includes transportation costs for out-of-state prospective students or university employees. • Institutional funds may be used for out-of-state recruiting costs.

43. 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.

44. 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.

45. THANK YOU