General Accounting Office General Accounting Office James Webb - - PowerPoint PPT Presentation

General Accounting Office General Accounting Office James Webb

BOBCATbuyers Presentation November 17, 2010

Our Current E i t Environment

An American-Statesman article on November 15, 2010, expressed concern that expected shortfalls i t t ill in state revenues will lead to additional significant budget cuts in significant budget cuts in Higher Education.

When is a payment ll d???? allowed????

• NOT always simple!!!
• NOT always simple!!!
• Difficult to provide a listing of

all allowed purchases

Two Basic R i t Requirements

• Valid Business Purpose

p

• Source of Funding That

Permits the Payment Permits the Payment

Valid Business Purpose

• What is a business purpose?
• Texas State University System Rules

and Regulations sheds light on a g g definition:

• The payment “…assists the

C t i th S t i Components in the System in carrying out their educational functions promotes education in functions, promotes education in the State of Texas, and provides an important public purpose.”

Valid Business Purpose

• What is the primary purpose

f ? for the activity or transaction?

• How does the activity or

t ti l t t th transaction relate to the university’s educational mission?

Valid Business Purpose

• Texas State University Mission

Statement: Statement:

“Texas State University-San Marcos is a public, student-centered, doctoral-granting institution dedicated to excellence in serving the educational needs of the the educational needs of the diverse population of Texas and the world beyond ” the world beyond.

Valid Business Purpose

• What is the primary purpose

for the activity or transaction? for the activity or transaction?

• How does the activity or

transaction relate to the university’s educational mission?

• Who benefits?
• Who benefits?

Sources of Funding

• Not all sources of

funding are equal!

• Four main sources of

Four main sources of funding cover the

• perations of most

university departments university departments

Sources of Funding

• E&G (State)

G l R A i ti

• General Revenue Appropriations
• HEAF Appropriations
• Other State Appropriations
• Statutory Tuition
• Is generally used to pay salaries

and benefits

• Generally more restrictive than

“M&O” accounts

• Funds that start with “1”

Sources of Funding

• Designated Method (M&O)
• Designated Tuition
• Some fees
• Other Designated Fund
• Revenue Generating Accounts

Revenue Generating Accounts

• Service Departments
• Expenses generally permissible
• Expenses generally permissible

with valid business purpose F d th t t t ith “2”

• Funds that start with a “2”

Sources of Funding

• Auxiliary
• Provide services to students,

faculty, staff, and the public y, , p

• Revenues derived from fees or

business operations business operations

• Are self-supporting

E ll i ibl

• Expenses generally permissible

with valid business purpose p p

• Funds that start with a “3”

Sources of Funding

• Restricted (Discretionary & Grants)
• Funding given by external entities

with conditions that must be fulfilled h di th f d when spending the funds

• Distributions from endowments
• Reach for the Stars Contributions
• In addition to a valid business

purpose, must meet the conditions imposed by the donor p y

• Funds that start with a “4” or “8”

UPPS 03.01.03 UPPS 03.01.03 Purchase of Alcohol, Awards, Flowers, Food or Refreshments Food, or Refreshments

Highlighted Sections Highlighted Sections

• Section 01.05 outlines

criteria that makes criteria that makes expenses allowable expenses allowable

• Generally the same

y criteria as on the face f th F AP 1

• f the Form AP-1

Highlighted Sections Highlighted Sections S ti 01 07 tli

• Section 01.07 outlines

requirements for requirements for achievement awards

• Only tangible items of

personal property; no personal property; no cash, gifts cards, etc. g

Highlighted Sections Highlighted Sections Section 01.10 prohibits purchases for spouses, children and other children, and other family members family members

Highlighted Sections Highlighted Sections S ti 01 12

• Section 01.12 governs

any exceptions to the any exceptions to the policy

• Requires Cabinet

Officer or President’s Officer or President s approval pp

Highlighted Sections Highlighted Sections

• Section 06 covers the

procedures to process a payment p y

• Purchase requisition should

be used be used

• The payment document

should include detailed should include detailed information to support the purchase purchase

Highlighted Sections Highlighted Sections

• Amount
• Amount
• Time Place and

Time, Place, and Description

• Business Purpose
• Business Relationship

f th i l d

• f those involved

What to Do When You A N t S Are Not Sure

• Contact Purchasing, Accounts

Payable, or General Accounting Payable, or General Accounting before committing to or authorizing the purchase authorizing the purchase

• Obtain your divisional Cabinet

Officer’s approval prior to Officer s approval prior to processing your payment request

What to Do When You A N t S Are Not Sure

H t C t t th G l

• How to Contact the General

Accounting Office:

gao@txstate edu gao@txstate.edu 245-2747 www.txstate.edu/gao