marcy a. flores assistant comptroller & director of accounting...

Accounts Payable Training

Presented By

Marcy A. FloresAssistant Comptroller & Director of Accounting

[email protected] Ext. 4192

Judy Murdoch Accounts Payable Specialist III


Vilma CastilloProperty Management


mailto:[email protected]





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 – Student Fee AccountsIndirect Cost AccountsLocal Accounts (all others)Restricted Accounts

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


Reviewing Each Payment Request◦ Items to be included on a payment request◦ Invoices / Receipts◦ Required State Documentation


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


Advance PaymentsPrepayment Certification

AdvertisingOriginal Tear Sheet of

Advertisement


Alcoholic BeveragesUnallowable State ExpenditureWith approval on local funds

Alumni ActivitiesState funds may not be used for the support or maintenance of alumni

organizations or activities.


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.


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.


Employee Certification/LicensureJob-related

Employment of Retirees30-day rule (contact payroll)

Flowers, Floral Arrangements, and PlantsUnallowable State Expenditure

(donation in lieu of flowers not allowed regardless of fund source)


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

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

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

Purchase Guidelines

Gifts and AwardsState Funds ($100.00 ceiling)

Honoraria or Speaking FeesContract ( all expenses included)

A&M System Employee (contact payroll)


Memberships/non-professional organizations

Memberships/professional organizations

All memberships must be approved by the Assistant Comptroller & Director of Accounting


Moving ExpensesProcess all payments through

payroll.

Notary FeesEmployees not required to be bonded. http://www.sorm.state.tx.us/Risk_Management/Bonds_and_Insurance/notary_forms.php

http://www.sorm.state.tx.us/Risk_Management/Bonds_and_Insurance/notary_forms.php

http://www.sorm.state.tx.us/Risk_Management/Bonds_and_Insurance/notary_forms.php


Professional ServicesAccountantArchitectEngineerLand SurveyorPhysicianRegistered Nurse


Recruitment of StudentsUnallowable State Expenditure

SpeakersA&M System Member

Subscriptions


Taxes – Federal and StateExempt from most federal and

state

Tips and GratuitiesUnallowable State Expenditure

Breaktime

Object Codes

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 3000 - 3415 Supplies & Materials 4000 - 4899 Utilities 5000 - 5039 Telecommunications 5100 - 5199 Fees 5200 - 5259 Consultant Services 5350 - 5399 Professional Services 5400 - 5499 Maintenance & Repair 5500 - 5555 Other Services 5600 - 5699

Operating

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!!!!

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

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)

Codes Related to Food

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)

4010 – Office General

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)

4011 Paper Goods & Janitorial

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)

4013 – Research Supplies

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 and Their Uses:

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.


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)


5780 Stereo Systems Stereo Systems

5781 Cameras Cameras &Digital Cameras

5782 VCR’s & Televisions VCR’s, Televisions, DVD, Camcorders

5787

Computers; Data Projectors Desktop & Laptop Computers; Digital Projectors (used with computer)

5788 Printers Non-portable

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

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


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

Capitalized Property

Inventory

Tagging required by State regulations Tag number needs to be assigned and adhered

within ten days

Will be on department physical inventory

Resources

Expendit: State of TX Purchase Policies and Procedures Guidehttps://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

Judy MurdochAccounts Payable

ext 3952

Vilma CastilloProperty Management

ext. 2713

Questions?

marcy a. flores assistant comptroller & director of accounting...

Documents

state documentation

university slide

fund source slide

awards state funds

state education

local funds code

xxxxx voucher numbers

restricted accounts