State vs. Local Fund Disbursements
(Updated April 21, 2005)

We have, for the moment, decided that local funds purchases will not have to adhere to the stricter rules applied to state funds. There are two exceptions:

1. For expenditures split between local and state funds, state procedures will apply to all funds used. This also applies to all joint purchases between entities (COALS, TAES, and TCE). Account numbers for all entities must be listed on the documents.
2. Corrections: if a payment is originally paid on local funds, it will not be possible to change that expenditure to state funds at a later date.

Local funds:

Items may be grouped together with a brief description of what is being purchased. Incumbrances are to be broken down by object class code either as separate line items or as a split using F11. Examples of brief descriptions are office supplies, research supplies, shop supplies, or chemicals. Freight does not have to be broken out.

Encumbered dollar amounts should be equal to or greater than the amount of the invoice(s). In the event that the amount encumbered is less than the amount of the invoice, Disbursements will send and FYA-PIP to request approval to pay the additional amount.

State Funds:

An AG-610 form is required for all purchases made using state funds, except for items picked up from local vendors. When purchases are made and items are picked up from local vendors:

• A “Doc” note must be added to indicate, “Spot purchases picked up from local vendors”. Examples of local vendors are: Wal Mart, Target, Office Max, Office Depot, Best Buy, Tractor Supply Co., Ace Hardware, etc.
• A “Doc” note can not be used for items Ordered and delivered from local vendors to the department/unit.

  The L/E-document set up in FAMIS (screen 241or 236) can be set up either with the detail information or grouped by object class codes. A brief description can be included. Freight should be listed as a separate line item on the AG-610 form. It can be either entered as a separate line item in FAMIS (screen 241 or 236) or grouped with the item being purchased.

  Encumbered dollar amounts should be equal to the amount of the AG-610, or invoice amount.

• If the invoice amount is higher than the FAMIS P.O. (screen 241 or 236) we will only pay the amount on the AG-610 form.

• If the invoice amount is higher than the FAMIS P.O. (screen 241 or 236) but lower that the AG-610 form we will send an FYA-PIP to request approval to pay the invoice amount.

• If we reduce the invoice amount due to sales tax not paid or discount taken we will send an FYI-PIP and pay the corrected invoice amount.

  The order date must be prior to the invoice date, invoice received date, receipt of goods, and the beginning of the service period. If the order date is after any of the above mentioned items we will review the AG-610 form. If the AG-610 form has the correct date we will process the document on state funds. If the AG-610 does not have the correct date, we will send an FYA-PIP to request a local funds account number and will then process the invoice on the local fund account number provided by the unit.

Modification to Purchase Order Requests (AG-610)

It is acceptable to amend a quantity and/or unit price on your purchase order request. You may mark through the quantity and change it as long as the change is made before placing the order. The change should be signed or initialed and dated prior to placing the order with the vendor. If the quantity and/or unit price is less than the amount indicated on the purchase order request, it is not necessary to indicate any changes.

State funds used to pay TAMU

TAES/TCE on campus departments/units are required by System Regulation 41.05.02, Management of Building and Other Improvements, to use the service centers of Texas A&M University (TAMU) for certain goods and/or services. Goods or services purchased from TAMU using state funds should follow the same guidelines used for purchases from any non-TAMU vendor.

Therefore, if merchandise is picked up from a store or stockroom of TAMU, a “Doc” note must be added to indicate, “Spot purchases picked up from local vendors”. If services are performed on equipment or vehicles and the equipment or vehicle is delivered to the service center, then a “Doc” note must be added to indicate “Spot service provided by local vendor.” Per the State Comptroller’s Office, Claims Division, (State of Texas Policies and Procedures Guide § 7.008) an AG-610 form is required if a TAMU service center provides a general service or repair at the departments’ location or an order is placed for services to be provided. The following is an example of some of the TAMU service centers which require an AG-610 form: Physical Plant, Printing Center, Graphic Services and/or CIS (for training, special requests/projects, installations), etc.

For both types of funds:

For reducing a payment amount, we will send an FYI-PIP only.

We have contacted TAMU for assistance in formatting these policies so that as a system we are following the same type of procedures and policies.

We hope that this change will give you some relief from much of the additional work you have had to do since the conversion from the bookkeeping system to FAMIS took place. In the course of our FAMIS Working Group meetings over the next few weeks it will be determined whether this change will be made permanent policy or not.

Additionally, we hope to be able to start testing procurement cards in the near future. Several off and on campus units will be asked to participate in this test phase. The introduction of such another large change will be quite a challenge following on the heels of the conversion to FAMIS but we believe that the PRO card will ultimately reduce your workload as well.

Thanks for your patience. We will continue to work through the issues that have arisen since the conversion took place and hope to be able to offer you further relief in the near future.