Accounts Payables & Payment Cards (GeoAP)

Introduction

Geosciences Accounts Payable & Payment Cards, GEOAP, provides support on accounting issues. Email ocng-staff-office@geos.tamu.edu with any questions.

Each Department’s Business Administrator (DBA) handles its purchasing, contracts and receiving. GEOAP handles the payment of invoices, controls the reallocation of payment card purchases and the booking of inventory items.

Contacting GEOAP

If you are seeking information or clarification, first contact your DBA who will:

  • Email your query to the GEOAP team email address.
  • GEOAP team members will make every effort to respond to all email inquiries from the departments they are responsible for within 24 hours of receipt, even if that response is “I will have to research this and get back to you.”
  • If the latter is the case, the GEOAP team member will provide an accurate answer to the question(s) within an additional 48 hours.
Each academic departments’ DBA is responsible for gathering invoices and signatures and sending the original documentation to GEOAP. Each DBA sending documents to GEOAP for processing:
  • Uploads the documents in Laserfiche that will then route to GEOAP.
  • MAKE SURE the account number and the appropriate account signature authority (account owner or responsible party) signature approvals are included in the information. Email authorizations from the account owner are acceptable.

GEOAP assigns specific team members to the various departments. Current assignments are Kelsey – ATMO, GEOG, CLGE and Sarah – GEOL, OCNG.

Departmental Signature Authority

Every purchase, whether through AggieBuy or via payment card, must be authorized by the individual with authority over the account. Each DBA serves as signature authority over departmental accounts, as does its Department Head. For research or chair/professorship accounts, only the account owner can authorize purchase.

Authority for the purchase is evidenced either by signature or by an email from the authority’s email account approving the purchase on the account.

If GEOAP receives a document without the proper approval signature (or an accompanying email), GEOAP will return the document to the DBA. This delays the processing of the invoice and could cause corrections of the payment card payment.

Department Business Administrator (DBA)

Each Department’s Business Administrator, DBA, serves as its liaison with GEOAP.

The duties of the DBA include:

  • Ensuring each invoice is date-stamped received with account number and account owner authority affixed to the invoice.
  • Ensuring that personal reimbursement receipts and reimbursement information is submitted in Laserfiche, and that each invoice includes the account number to be used and the appropriate approval.
  • Ensuring that payment card receipts are itemized and state tax free; and that payment card receipts are submitted with the weekly payment card statements in a timely manner through the Laserfiche process.
  • Please contact your DBA prior to using Payment Cards for inventory purchases (laptops, tablets, projectors, etc.).
  • Ensuring there are no discrepancies or problems with these items.

Accounts Payable and Payment Cards

All purchases made using funds paid with Texas A&M accounts must be fully documented, with all documents retained in accordance with the university’s records retention schedule.

All payment card purchases and personal reimbursements must be submitted through the Laserfiche process. This ensures all the required information is included in the fields on the LF form. Departmental Cover Sheets (DCS) can be used for payment cards purchases and for reimbursements but are not necessary.

All purchases should indicate the date received. Ideally, this is the date the items are received. When that is not practicable, the date the invoice is received within the department is used. State law mandates the payment of interest for untimely payment. It is important to document receipt to control for this.

All purchases must be authorized. This authorization is evidenced by the signature or other (email) approval by the account owner.

Acceptable approvals include either:

  • an original signature on the invoice, credit card receipt, or personal reimbursement
    OR
  • an email from the account owner authorizing payment
Each department is responsible for ensuring that all submissions include:
  • A brief description of the purpose of the transaction
  • What account and/or program the transaction should be applied to
  • For business meal charges, hotel and car rental, the five W’s (who, what, where, when, and why)
  • The itemized, tax-free receipt — not just the charge card receipt
  • For memberships and subscriptions, the effective dates of memberships and subscriptions and whether the membership is individual or institutional
  • Notification if the vendor requires a purchase order. If so, GEOAP will generate the purchase orders (internal or via AggieBuy).
  • For sole source purchases, the department must attach a Justification of Sole Source Purchases form. This completed form should be emailed with the DCS.
  • Any other pertinent details related to the transaction

State Tax Exempt

As an entity of the State of Texas, Texas A&M is exempt from paying Texas State sales tax. The departments are responsible for advising vendors of this status and providing a Texas Sales and Use Tax Exemption Certificate when applicable purchases are made.

If the purchaser forgets to tell the vendor and tax is charged, the department needs to contact the vendor immediately and ask that the tax amount be credited. This information should be reflected on the invoice.

W-9s and W8BENs

A W-9 is a tax form for domestic vendors, and a W-8BEN or W-8ECI is a tax form for foreign vendors.

Departments are responsible for obtaining the required forms from new vendors and forwarding them to GEOAP. If the forms are not legible, the department needs to ask the vendor to resubmit a legible copy.

W-9

A W-9 is required for most new domestic vendor types, such as:

  • Individual payments /reimbursements
  • Sole proprietors
  • Partnerships
  • Corporations

Vendors may use the TAMU Substitute W9 & Vendor Direct Deposit Form, the official Internal Revenue Service (IRS) W-9 Form, or the vendor’s own company W-9 Form. W-9s are valid for five years.

If the department cannot obtain a W-9 from the vendor, the department must provide to GEOAP documentation showing that they have tried to obtain a W-9 at least four times within five business days prior to having the vendor set up in the system. If at all possible, try to get the Employee Identification Number (EIN) from the vendor.

If the vendor will not provide an EIN and the transaction is a 1099 reportable payment ($600 or greater for services or rentals), Texas A&M will have to withhold 28 percent of the payment and remit it to the IRS.

W-8BEN/W-8ECI

Texas A&M must have a completed and signed W8-BEN or W-8ECI before income is paid to a foreign vendor. A Certificate of Foreign Status may also be necessary:

Generally, these forms remain in effect for 3 years: from the date the form is signed to the last day of the third succeeding calendar year. For example, a Form W-8BEN signed on September
30, 2013, is valid through December 31, 2016.

If the foreign vendor will not provide or properly complete a W-8BEN or W-8ECI, and if the payment is U.S.-sourced income (in most instances, payment performed within the United States) and a 1042 reportable payment (services, rentals, software licenses, etc.), then Texas A&M will have to withhold 30 percent of the payment and remit it to the IRS.

Using State Contracts for Purchases

The State of Texas has awarded contracts that are available for use by all state agencies and institutions of higher education. Texas A&M encourages departments to review and use the state contractswheneverpossible. TexasA&MProcurementServicesadministersmanyuniversityand system-wide blanket-pricing contracts.

AggieBuy

GEOBUSINESS strongly encourages all departments to use AggieBuy to purchase supplies and equipment. AggieBuy is the internet-based marketplace where Texas A&M departments can go to purchase supplies at discounted rates.

Each department should establish AggieBuy shoppers for office supplies. The shoppers place the orders through AggieBuy. GEOBUSINESS recommends that orders for office supplies be placed no more than once a week.

Several excellent training tools for AggieBuy are available, both classroom and video snippets, at the AggieBuy Training Page. Some processes that are specific to departments serviced by GEOBUSINESS are not mentioned in these AggieBuy training tools.

Tejas Office Products, Inc.

Texas A&M’s current state contract for office supplies is with Tejas Office Products, Inc., which is a punch-out vendor in AggieBuy. To purchase from Tejas, the AggieBuy shopper follows the same steps as for AggieBuy.

Printing

Due to administrative changes, departments may now purchase printing and copying services under their delegated purchasing authority. Departments and vendors are free to engage with respect to print needs up to the delegated spend threshold of $10,000 (including freight and/or postage). Any printing services expected to be in excess of $10,000 require competitive bids handled by Procurement Services. As a reminder, regardless of dollar value, all print must adhere to the Texas A&M University Branding Guidelines, https://brandguide.tamu.edu/.

Acquisition FAQ page, https://printacq.tamu.edu/Home/Faq, has been updated to reflect the current process.

Additionally, the print supplier directory, https://printacq.tamu.edu/Suppliers, has been updated. University departments are encouraged to use these vendors as many are community based and many are HUB suppliers, which assists the University in meeting the State of Texas’ good faith effort to conduct business with historically underutilized businesses.

Print Acquisition Orders in Excess of $10,000

  1. Printing orders in excess of $10,000 must be submitted through AggieBuy prior to the order being placed. The Department creates a Requisition in AggieBuy as a “Regular” order. Customer contact information is included on the Requisition.• All printing order Requisitions must have the “Route to Procurement Services” field checked, regardless of dollar value, to assure proper routing.
    • Make sure the description includes the word Printing.
  2. A Print Acquisition representative contacts the Customer to discuss their needs.
  3. Print Acquisition determines the method of procurement. Prior to award and order placement, Print Acquisition contacts the department to review options and recommendations.
  4. Once an award decision is made, Print Acquisition creates the Purchase Order in AggieBuy from the original Requisition and distributes the PO to the vendor.
  5. Upon completion of the order the Vendor will:
    • Ship the production materials to the requesting department, to include a packing list that references the AggieBuy PO number.
    • Submit the invoice directly to Financial Management Operations (FMO). All invoices shall reference the AggieBuy PO number.
  6. Upon delivery and acceptance of the printed materials, the department completes the receiving in AggieBuy.
  7. Upon receipt in AggieBuy, FMO processes the invoice against the PO.

Note: For jobs under $25,000, bids generally take 1-2 weeks. For jobs in excess of $25,000, it can be 3-4 weeks or longer depending on complexity.

TAMU Print / TOPS (AlphaGraphics) Printing

All AggieBuy Shoppers are able to access and order through the TAMU Print/TOPS punch-out catalog. This includes orders for business cards, letterhead, and envelopes. These orders will not route to Procurement Services since all products available through the catalog are covered by

a Texas A&M Contract. The procedure is similar to that for Tejas Office Products, Inc.

  1. The department creates the AggieBuy Requisition order by going to the appropriate punch-out catalog on the home page of AggieBuy.
  2. The DBA approves the requisition and captures the reconciliation data for filing in the LF repository.
  3. Upon completion of the order the vendor will:
    • Ship the production materials to the requesting department, to include a packinglist that references the AggieBuy PO number.
    • Submit the invoice directly to Financial Management Operations (FMO). Allinvoices shall reference the AggieBuy PO number.
  4. The DBA performs receiving in AggieBuy.
  5. Upon receipt in AggieBuy, FMO processes the invoice against the PO.

Information Technology (IT) Equipment/Software Purchase

IT Purchases for Departments

IT purchases include:

  • Software
  • Printers
  • Scanners
  • Laptop computers
  • Desktop computers
  • Monitors
  • Tablets
  • Projectors

The process to make purchases for IT items is in place to ensure the best price and uniformity of equipment/software for the units GEOBUSINESS serves. If a department needs to purchase any of these items, it should follow this process:

  1. The department requester sends a Help ticket (help@geos.tamu.edu) to IT listing the item(s) needed for purchase.
  2. Geosciences’ IT Office works with the requester to obtain a quote and approval.
  3. Geosciences IT enters the requisition in AggieBuy and sends an email to purchasing@geos.tamu.edu
  4. GEOAP completes the requisition/purchase order specifying 1204 O&M, MS 3146 as the delivery address for OCNG, ATMO, and GEOG assets. Upon receipt, GEOAP receives the item in AggieBuy.
  5. For GEOL items, the delivery address is the business office in Halbouty (108 HALB). The GEOL business staff completes the inventory process for Halbouty equipment.
  6. GEOAP generates the asset numbers through Canopy. GEOAP marks the equipment or emails GEOL the asset number for GEOL to mark the equipment.
  7. The Geosciences IT Office coordinates with the departmental requester to deliver and install the equipment ordered.
The department may directly purchase the following IT-related non-capital peripheral items:
  • Mouse
  • Keyboard
  • Wrist pads
  • Toner

GEOAP marks the asset number on the asset and releases the asset to IT with an email to both IT and the individual who requested the asset. The Building Proctor’s Office receives asset tags for all inventoried items and is responsible for placing the actual asset tag on the equipment.

Receiving Goods/Equipment

All supplies and non-capital equipment (other than IT equipment mentioned previously) ordered by departments should be shipped to the departments.

When departments receive items (ordered through AggieBuy, online, by phone, or in person), follow these steps:

  1. Check that the order received is correct.
  2. The DBA will access the AggieBuy purchase order and create a Quantity receipt for the items received.

Taking TAMU Equipment Off Campus

Texas A&M employees often need to use capital assets or inventory items away from their office. When an asset is going to leave campus, the FDP-410 Loan of Texas A&M University Property Form should be filled out, signed, and sent to GEOAP. GEOAP will forward a copy to the Building Proctor to aid in locating items as a part of the annual inventory process.

Contract Worker versus Wage Employee

Departments may need to hire outside employees to work on specific tasks. Contract workers differ from employees on payroll and are paid through invoices, which must be sent to GEOAP for processing.

  • Contract workers are defined as independent contractors, temporary workers supplied by staffing companies, contract company workers, and consultants.
  • Wage employees are employed by Texas A&M temporarily, and the position is funded from a lump-sum budget category.
  • Part-time budgeted employees are employed to work 50% or more effort for 4.5 months or more in a fiscal year (System Regulation 33.99.05). Student workers are excluded.
To determine if an individual should be hired as a contract worker (contracted services through Procurement Services) versus a wage employee, the following questions need to be answered. If the answers are “no,” then the department will have to go through the requisition process to hire the individual as a contract worker. If the answers to these questions are “yes,” then the individual should be hired as a wage employee and put on payroll.
  1. Will Texas A&M control or have the right to control what the worker does and how the worker does the job?
  2. Are the business aspects of the worker’s job controlled by Texas A&M? For example, will the university reimburse the worker for expenses, and will the university provide any tools, supplies or other assistance to the worker?
  3. Will this relationship continue, and is the work performed a key aspect of this business process? (This is to determine if the work performed by the individual will be an integral part of the mission of the department.)
  4. Is this the individual’s sole workload (i.e., does this individual have other similar jobs)?

Student Organization Expenses

The Student Organization Finance Center (SOFC) provides banking and financial services in support of the activities and programs of recognized student organizations at Texas A&M University. To charge expenses for student organizations, the student organization should contact SOFC and request to set up its own student organization account.

Departments cannot donate TAMU funds to student organizations. To keep our reporting as clean as possible, we need to avoid paying student organization expenses directly from departmental accounts. Wecanonlypayastudentorganizationforservicesthatithasperformedfora department. To pay an invoice on behalf of a student organization, the department must clearly document what the benefit to Texas A&M is, and the invoice must be paid with an account that relates to that purpose and allows that type of payment.

Prizes/Gifts/Awards

Processing Prizes/Gifts/Awards for Students and Non–Texas A&M Employees

The department should follow these steps when giving prizes, gifts or awards to students and non–Texas A&M employees:

  1. When submitting documents in LF, include the following information:
    • Who the prize/gift/award is being presented to (name, address, and UIN or Social Security number if non-employee)
    • Why the prize/gift/award is being presented to this person
    • Amount of the gift
  2. If the gift (including gift certificates, cash or physical items) is more than $600, it may be considered taxable income to the recipient:
    • Include a W-9 for all students/non–Texas A&M employees who are citizens of the United States or Legal Permanent Residents if they are not already a vendor in AggieBuy
  3. If the recipient is a foreign national student:

Processing Prizes/Gifts/Awards for Employees

The department should consider the following tax implications when giving prizes, gifts, or awards to Texas A&M employees.

Forms for Prizes/Gifts/Awards for Employees

If the prize/gift/award is...

Tax implications are:

Gift certificates, cash, use of credit or charge cards, and other cash equivalents are taxable income regardless of value

DBA will enter one-time payment for cash awards and/or tax withholding in Workday.

Family Death or Illness - Flowers, books, fruit baskets or other similar items

Items are not taxable as long as they are reasonable amounts.

Recognition of Special Effort or Outstanding Performance – Non-cash awards, such as plaques, certificates (not cash), books, flowers, tickets or similar items

Items are not taxable if they are $100 or less. An employee may only receive these awards four or fewer times in one calendar year to be considere non- taxable.

Length of Service Awards

These awards must be part of a meaningful presentation and given to an employee no more than once every five (5) years. Non- cash awards of $400 or less are not taxable.

Retirement Awards

May be excluded from income if the dollar amount of the award relates to the retiree's length of service. Documentation is to be provided describing the relationship between the retiree's length of service and the value of the award.

Payment Cards

An individual payment card or a department payment card may be issued to purchase goods and services. Payment cards issued in the name of individual employees are not meant for card sharing. Paymentcardsissuedinthenameofadepartmentmaybeshared,butmustbeloggedout and in properly by the departmental card administrator.

Each department administers its own payment cards and related purchases. Any new payment cards must obtain department head approval.

Application Process

The following is the process for obtaining a payment card:

  1. The department completes the application and emails the application to FMO.
  2. FMO emails the department liaison, advises the cardholder that he or she must take the payment card online training, and then sets up the card in Citibank reporting.

Payment Card Guidelines

Use of a payment card is a privilege, not a right. Noncompliance with TAMU and college regulations can revoke that privilege.

Departments must submit a Laserfiche Form (LFF) form with all payment card receipts and reimbursements. The LFF provides important details about the transaction so that GEOAP can properly process it.

The department head or designee must sign the form. When you generate the PDF, print the form and obtain the proper signature. Acceptable department head/designee approvals include either:

  • an original signature of the department head or designee on the credit card receipt
    OR
  • an email from the department head or designee authorizing payment
Each department is responsible for ensuring that all LFF include:
  • A brief description of the purpose of the transaction
  • What account and/or program the transaction should be applied to
  • For business meal charges, the five W's (who, what, where, when, and why)
  • The itemized, tax-free receipt — not just the charge card receipt — must be submitted in the LFF
  • For memberships and subscriptions, the effective dates of memberships and subscriptions and whether the membership is individual or institutional
  • Any other pertinent details related to the transaction

Cardholders have the following responsibilities:

  • Obtain an itemized receipt; make sure it is correct and sales tax free; and turn in the receipt to the departmental liaison or card administrator.
  • You may purchase taxable gifts for students and non-employees on the payment card. The reallocator must enter the required recipient information (listed in Prizes/Gifts/Awards) in the reallocation program for these transactions.
  • Cardholders are responsible for payment card processing. They may delegate these duties to their departmental liaison but are still ultimately responsible.
  • Contact your DBA before purchasing Capital assets using a payment card.
  • Inventory assets should only be paid with payment cards in an emergency.
For departmental payment cards (cards that are not in an individual’s name and are checked out as needed), the card administrator must maintain a Payment Credit Card Check In/Check Out Log documenting who is given the card and when it is returned. These logs should be kept on file by the department in the event of an audit or to determine who had possession of the card should a questionable charge appear on the statement.

Payment Card Receipts

The following are guidelines on how to prepare payment card receipts for GEOAP:

  • Complete a Laserfiche Form (LFF) for each receipt.
  • Make sure Texas state sales tax is not charged on the receipt. If Texas state sales tax is charged on a payment card purchase, the department must contact the vendor and obtain a credit for the tax amount and some type of credit receipt to confirm the credit. If the deadline for reallocation has already passed, the credit will show up on the next month’s statement. If this happens, the department needs to hold the credit receipt and submit it the next month with a LFF.
  • Do not write on the receipts.
  • Do not put tape over any amounts or other important receipt information.
  • For meals, submit an itemized receipt along with the charge card receipt.
  • If the receipt has been lost, the cardholder will need to submit a Payment Card Document In Lieu of Receipt or Invoice. The form must be signed by the cardholder and the department head.

Payment Card Statement/Receipt Submission to GeoAP

Cardholders or card administrators should follow these steps to check a payment card statement and submit receipts to your DBA to submit to GEOAP:

  1. Each week on Monday, the DBA will receive an email with the weekly statement attached.
  2. Match up all receipts and Laserfiche Forms to the weekly statement.
  3. Attach the actual receipts. The reallocation/reconciliation cannot be completed until GEOAP receives a proper receipt.
  4. The DBA needs to verify the statement and receipts by no later than close of business on Wednesday.

Review/Approval of Final Expense Reports

The following is the process for review and approval of Final Expense Reports, which lists the charges and their designated accounts:

  1. Upon receipt of the weekly statement and receipts, GEOAP reallocates all payment card charges to the designated accounts. At month end, GEOAP runs the Final Expense Report for each card.
  2. GEOAP emails the DBA that Final Expense Reports are available for verification in Laserfiche.
  3. The cardholder (for individual payment cards) or card administrator (for departmental cards) and the department head/designee must review and sign the Final Expense Report. Emails from signers indicating approval of all charges and reallocations will be accepted; however, the Final Expense Report must be attached within the e-mail correspondence.
  4. The cardholder or card administrator sends the signed Final Expense Report to their DBA to upload in Laserfiche by the deadline, usually on or around the 23rd. These charges hit the FAMIS account the last day of the month.

Payment Card Compliance Reviews

Periodically, FMO conducts compliance reviews on payment card transactions. FMO checks that items charged are allowable and that the backup documentation is proper. Normally, FMO should email these requests to GEOAP, but these requests sometimes go to the departments. If a department receives this type of request, immediately forward the email to GEOAP.

Wire Transfers / Foreign Bank Drafts

In some instances, vendors will request funds be wired to their account or paid by a foreign bank draft. A wire transfer is an electronic transfer of funds delivered directly to the client’s bank account. Specific bank information is required to process a wire transfer. This information should be treated as confidential. Do not send the information via email unless password protected.

The information foreign banks require may change without notice. It is not FMO’s responsibility to search past vouchers to obtain the required information. We strongly recommend that departments call FMO for the wire transfer form.

A foreign bank draft is a guaranteed check that is issued in a currency of the client’s choice and must be physically transferred. Departments have to pick up these drafts from FMO, and they must be mailed by receipt mail.

Please work with your DBA to initiate any Wire Transfers and/or Foreign Bank Drafts.

Emergencies

GEOBUSINESS realizes that legitimate emergencies do occur (e.g., repairs). We will work with the departments to ensure these items are properly processed and paid. If the request is justifiably urgent, the department’s email should have RUSH as the first word in the subject line and be tagged as High Importance.

Accounts Receivable are Handled by each Department

Marketplace for Credit Card Payments

Marketplace is a ready-made online shopping cart system hosted entirely by a third party.

Many departments use Texas A&M’s Marketplace program to process payments received by credit cards. If approved by FMO, departments may accept credit card payments over the counter, over the telephone, through the mail, or over the Internet.

Marketplace Procedures

The following are some procedures to remember:

  • Departments need to include the following information in their email request to FMO for a Marketplace account:
    • Type of products to be sold
    • Names and UINs of users needing access to online training
    • Default FAMIS account (where funds will automatically be deposited)
  • When the Marketplace account is set up, users will receive an email notifying them how to set up their user ID and password and any required training.
  • Deposits should be made on a daily basis. The credit card detail report should be balanced and kept on file.

Marketplace Transactions

Contact FMO to determine the best solution for your credit card transaction needs. FMO will establish a new merchant account through the credit card processor on your behalf. New merchant account activation typically takes 3 weeks from the time FMO receives the form.

The following are some departmental responsibilities concerning marketplace transactions:

  • Credit Card Service Fees: Accepting online payments comes with a cost for doing business. Departments must pay credit card fees charged by the credit card brands, as well as a small per-transaction fee for the use of Texas A&M’s payment gateway.
  • System Fee: Texas A&M also incurs an expense for using the e-commerce system currently operated and maintained by TouchNet. As a user of this system, you agree to contribute to its maintenance by paying $0.50 per transaction. This expense will be charged monthly against the same account as the credit card service fees.

Credit Card Sales

The following rules apply to credit card sales:

  • Credit card sales should be recorded like any other sale. Customers should be given receipts verifying payment for purchases unless the associate vice president and controller grant an exception.
  • To process sales for walk-in customers presenting an acceptable credit card, the card should be run through the credit card machine at the time of the sale to validate the account number. The credit card must be kept within the customer’s sight, and the CVV code must never be copied or stored. The associate vice president and controller must approve any exceptions.

Credit Card Refunds

Credit card refunds cannot be issued for more than the original transaction amount and can only be refunded on the card used for the original purchase.

The department will email FMO to request the refund and provide the following information:

  • Document number
  • Date of original transaction
  • Name of payee
  • Amount

Reduction to Expense Request (RTE)

An RTE is payment received as reimbursement for an expense that has already been paid. For example, the department head is traveling to a conference to serve as a guest speaker. When he/she returns, the conference sponsor sends a check for the airfare. This is a reimbursement check. Other examples might include reimbursement from a sponsor for event expenses, a refund of a deposit for room rental, or a check for duplicate payment of an invoice.

For each check received, the DBA completes a Reduction to Expense Request Form, endorsing check and listing the account numbers and amounts the reimbursement is to be applied against. The DBA mails the form and the check to FMO Corrections at MS 6000.

Returned Checks

NSF Checks

If a Texas A&M deposit includes a check that the bank determines to have non-sufficient funds (NSF), the bank will return the check to FMO. FMO will notify the department to seek the best resolution.

Refund Checks

Please see the Reduction to Expense section above.

Contracts/Agreements for Services

Departments should submit contracts/agreements for goods or services to its DBA as early as possible. The turnaround time for processing through Contract Administration is at least 2 to 4 weeks. Contracts should be submitted to their DBA without signatures from the department or the vendor. Contract Administration will process and obtain the signatures.

Contract/Agreement Processing (except Hotel/Venue Agreements)

U.S. Vendors

Contracts/agreements should be routed through Contract Administration (via AggieBuy), except agreements made for the reservation of hotel and/or conference facilities (see next section for more information).

The following is the process for getting a contract/agreement approved:

  1. The department negotiates and obtains a contract/agreement from a vendor for the purchase of goods or services. The contract/agreement should not be signed by the vendor or the department.
  2. The department emails the contract/agreement to Contracts Administration before the agreement is signed by anyone.
  3. The table below shows the next step depending on the amount of the purchase. Procurement Services must approve all purchases over $10,000 before the department makes the purchase. If this is not done, Procurement Services will require a Letter of Non- Compliance signed by the department head.

If the contract is...

Then...

$10,000 or less

  1. DBA creates a requisition in AggieBuy and attaches the unsigned contract.
  2. DBA emails through AggieBuy the unsigned contract to Contract Administration.
  3. Contract Administration reviews the contract and may make changes on the existing contract by crossing out and/or adding information. If the changes are major, Contract Administration may require a new contract.
  4. Once Contract Administration approves the contract, a Contract Administration member signs the Contract and the AggieBuy requisition processes.

more than $10,000

  1. DBA creates a requisition in AggieBuy and attaches the unsigned contract.
  2. All purchases over $10,000 automatically route through Procurement Services.
  3. ProcurementServicesreviewsthepurchasetodeterminethatthepurchase is in compliance.
  4. Procurement Services signs emails the contract to Contract Administration. Contract Administration signs and the AggieBuy requisition processes.
  5. DBA emails a copy of the fully signed document to the department requester.

International/Foreign Vendors

Agreements with foreign vendors providing lodging (hotel agreements) and/or travel (airfare, car rental and bus transportation) do not need to route through Contract Administration. Agreements for everything else must be routed through DBA to Contract Administration using the same process as for U.S. vendors.

Hotel/Venue Agreements

Hotel/venue agreements are not required to be routed through Contract Administration as long as the department and the vendor have signed a Facility Use Addendum in addition to the facility’s standard agreement.

The table below shows the process for hotel/venue agreements depending on the dollar amount. 45

Process for Hotel/Venue Agreements

If the agreement is...

then...

less than $10,000,

the agreement does not need to be routed to your DBA until the invoice is received. The department head or designee can sign the agreement and the Facility Use Addendum, and it can be routed directly to the vendor.

$10,000 or more,

The agreement must be routed to your DBA in advance for entry into AggieBuy as a requisition.

Departmental Correction Requests (DCRs)

For Corrections to your accounts, please see your DBA. Departments create DCRs when expenditures and income need to be corrected for accounts or object codes. When reviewing your monthly statements, if you see any transaction(s) that do not appear correct, contact your DBA for help with verifying charges that may need corrections.

Sponsored Research Services (SRS)/Research Foundation Procedures

Project administrators at Sponsored Research Services (SRS) review all project costs on SRS accounts for compliance with the applicable sponsor guidelines. Costs are reviewed for allowability to confirm that the expense is accurate under the terms of the sponsored agreement.

SRS is responsible for ensuring proper coding for each expense to the proper FAMIS cost category as indicated by the sponsor award document. The category for the same cost could be different depending on the awarded budget and how the costs are to be reported to the sponsor in the financial reports. For instance, one sponsor may include test tubes under supplies, while another sponsor could include test tubes under medical and lab equipment.

The different types of transactions to be paid on SRS accounts are processed the same way as explained in each section of this manual with the following exceptions:

  • Payment of invoices and purchase orders processed through AggieBuy also route through SCA and SRS for review and approval.
  • All invoices and receipts paid from SRS accounts must be stamped with the “I certify” stamp. The principal investigator (PI) must sign the stamp. The project number includes the system part number and the account number, e.g., 02-123456 or 99-499000.

I certify that these costs were incurred to conduct research for Project:

and are properly chargeable to the project.

Signature (Principal Investigator or Authorized Representative)

“I certify” Stamp

  • The following documents require the “I certify” stamp for processing on SRS accounts:
    • Invoices: The department stamps the actual invoice.
    • Purchase orders: The department stamps the quote and sends it to your DBA. If the quote is stamped and signed by the PI and the invoice matches the quote, the invoice does not need to be stamped.
    • Payment card receipt: The department stamps the actual receipt for each purchase charged to an SRS account and sends it with the Payment Card Transaction Detail form. Do not stamp over any crucial information on the receipt.
    • IDT: If the department receives the IDT, it stamps and processes.
    • DCR: If the DCR involves moving any expenses onto any SRS account /support account, the original invoice or receipt needs to be re-stamped and re-signed. A SRS Cost Transfer Request Justification Form must be completed, signed by the PI and attached to the DCR.

Texas A&M Foundation

Texas A&M Foundation Deposits

All gifts received by Texas A&M University should be deposited immediately through the Texas A&M Foundation. A 5% fee is charged to the department for processing gifts.

DBAs handle deposits into Texas A&M Foundation accounts the same way they do for Texas A&M accounts. The Development Foundation deposits are hand delivered to the Development Foundation.