Accounts Payable Accounts Payable TrainingTraining

Presented By

Judy Murdoch, Accounts Payable Specialist II

kajlm00@tamuk.edu Ext. 3951

Marcy A. Flores, Asst. Comptroller & Dir. Of Acctg.

kamag00@tamuk.edu Ext. 4192

Accounts Payable DepartmentOrganizational 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 numbersRange (1xxxxx – 19xxxx; 87xxxx – 879999)

Voucher numbersBegin with zero

Strict GuidelinesState guidelines and law must be followed and show direct benefit to the University

Local Funds

Account numbersRange (2xxxxx, 3xxxxx; 4xxxxx; 5xxxxx; 6xxxxx)

Voucher numbersBegin with five

Strict GuidelinesTexas A&M University System Policies and Regulations must be followed and show direct benefit to the University

Federal Funds

Account numbersRange (40xxxx)

Voucher numbersBegin 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 Law30 day ruleInterest (4.25% of unpaid balance)Disputed payments (21 days)

Vendor InformationW-9

Vendor and Employee PaymentsDirect Deposit

Purchasing Guidelines

Advance PaymentsPrepayment Certification

AdvertisingOriginal Tear Sheet of Advertisement

Aircraft Rental Contact System Aircraft DepartmentAircraft Operations-TXDOT approval

Purchasing Guidelines

Alcoholic BeveragesUnallowable State ExpenditureWith approval (gift, grant, fee funds)

Alumni ActivitiesState funds may not be used for the support

or maintenance of alumni organizations or activities.

Audits of State AgenciesUnallowable State Expenditure

Purchasing Guidelines

Auxiliary EnterprisesState funds may not be used for support of auxiliary enterprises.

Charitable OrganizationsState agency may not provide money, goods or services to a charitable

organization.

Purchasing Guidelines

Conference Registration FeesAdvance 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/LicensureJob-related

Employment of Retirees30-day rule (contact payroll)

Flowers, Floral Arrangements, and PlantsUnallowable State Expenditure

Purchasing Guidelines

Food PurchasesState funds (Code 4050)(Food purchase with State funds are very limited.) Example of allowable expenditure: Nursery SchoolRequired documentation: purpose clearly stated.

Institutional fundsCode 6339 – Other than Business MealsCode 6340 – Business Meals

Required documentation: Names of attendees, purpose of business meeting.

Purchase Guidelines

Gifts and AwardsInstitutional 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 FeesEmployees 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 StateExempt from most federal and state

Tips and GratuitiesUnallowable State Expenditure

Object Codes

Operating

Travel 3000 - 3415Supplies & Materials 4000 - 4899Utilities 5000 - 5039Telecommunications 5100 - 5199Fees 5200 - 5259Consultant Services5350 - 5399Professional Services 5400 - 5499Maintenance & Repair 5500 - 5555Other Services 5600 - 5699

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

There’s More!!!!

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?

3011 or 3111 Code for Airline Ticket

3025 or 3125 Service charge on airline tickets from travel agencies

Travel Object Codes

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, notebooksCalendars, 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:

DisinfectantDisposable glovesPaper TowelsAny Cleaning SolutionsAir FiltersNapkins & Paper PlatesLight Bulbs (not 4076)

4013 – Research Supplies

This code should be used

to capture TRUE Research expenses such as:

DNA SamplesTest TubesJars or VilesVenomTags for WildlifeMicroscope SlidesThermometer 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)

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)

More Codes

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

5787Computers; Data Projectors Desktop & Laptop Computers; Digital Projectors (used with

computer)

5788 Printers Non-portable

Capital Assets

Single unit cost is $5,000 or moreDo not include cost of extended warrantyDo not include maintenance agreementsDo 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 Regulationshttp://tamus.edu/offices/policy/index.html:

Texas Government Codehttp://www.statutes.legis.state.tx.us/?link=GV

Internal Revenue Service Forms and Publicationshttp://www.irs.gov/formspubs/

Contact Information

Melanie Ramirezextension 2249

Judy Murdochextension 3951

Andrea Dreilingextension 2011

Jeanette Gonzalezextension 2105

Sandra Charles Betty Contrerasextension 3950 extension 3951

Questions?