Minutes of the Board of Regents of Stephen F. Austin State University. 2004, Volume No. 194

              Stephen F. Austin
State University
Minutes of the
Board of Regents
Nacogdoches, Texas
February 4, 2004
Volume 194
TABLE OF CONTENTS
Page
04-13 October 23, 2003 Minutes (tabled) 3
04-14 Personnel
A. Faculty and Staff Appointments for 2003-2004 3
B. Changes of Status for 2003-2004 4
C. Retirements for 2003-2004 6
D. Voluntary Modification of Employment for 2003-2004 6
E. Administrative Leaves for 2003-2004 6
04-15 Academic and Student Affairs
A. Faculty Workload Report for Fall 2003 6
B. Last Class Day Report 6
04-16 Academic and Student Affairs
C. Forestry Master s Degree Name 7
04-17 Academic and Student Affairs
D. Fifth Grade Addition to Charter School 7
04-18 Academic and Student Affairs
E. Dormitory Scholarships 7
04-19 Academic and Student Affairs
F. Patent License 7
04-20 Financial Affairs
A. Resolution to Review Qualified Investment Brokers and
Financial Institutions 7
B. Standards of Conduct for Financial Advisors and Managers 7
C. Interagency Contract for Annual Software Maintenance 8
D. Equestrian Center Equipment Funds 8
E. Budget Changes Less Than $50,000 8
F. Budget Increases for Marketing 8
G. Marketing Contract 8
H. University Insurance - Property, Casualty, Liability 8
I. Privatization of the University Center Bookstore 8
04-21 Buildings and Grounds
A. Piney Woods Conservation Center Sewer Treatment Facility 9
B. Nelson Rusche College of Business Educational Investment Center 9
C. University Center Expansion and Renovation (tabled) 9
D. Utility Easement 9
E. Real Estate (tabled) 9
04-22 Private Support Agreements
A. Stephen F. Austin Quarterjack Club 9
B. Tip-In Club (tabled) 9
04-23 University Policies and Procedures
A. Resolution to Acknowledge Review of Investment Policy and
Strategy (tabled) 10
B. Board Meeting Schedule 10
04-24 Policy Revisions 10
B-15 Issuance and Control of Campus Keys
B-24 Property Transfer and Disposal
B-32 Work Requests
B-34 Property Liability
C-2 Annual Budget Preparation (tabled)
C-7 Best Value Procurement
C-8 Computer Equipment Purchases
C-10 Delegated Purchasing Authority
C-16.5 Historically Underutilized Businesses
C-41 Investments (tabled)
C-42 Property Inventory and Management
D-19.1 Inclement Weather and Other Emergencies
D-26 Public/Student Health
D-34 Student Discipline
E-55 Workers Compensation Coverage
E-61 Drug and Alcohol Testing
E-62 Return to Work
F-7.5 Computer Hardware and Software Acquisition
F-27 Student ID Cards
F-29 Telephone Services
F-32 Access to Secure Computing Facilities
Reports
A. Faculty Senate 10
B. Student Government Association 10
C. Vice President for Alumni Affairs 10
D. Vice President for University Advancement 10
E. President 10
F. Athletic Rivalry Traditions 11
G. Board Committees 11
MINUTES OF THE MEETING
BOARD OF REGENTS
STEPHEN F. AUSTIN STATE UNIVERSITY
NACOGDOCHES, TEXAS
February 4, 2004
The meeting was called to order at 9:15 a.m. by Chair Kenneth James. Board members
present in Room 307: Margarita de la Garza Grahm, Valerie Ertz, Joe Max Green,
Kenneth James, Gary Lopez, Paul Pond, Lyn Stevens, Mike Wilhite and Fred Wulf.
Absent: None.
Others present in Board Room 307: Tito Guerrero, Mary Cullinan, Jerry Holbert, Miles
McCall, Baker Pattillo, Roland Smith, Marlin Young, Yvette Clark, and other SFA
administrators, staff, and visitors.
Executive Session was called at 9:15, and Open Session was announced at 12:15 p.m.
There was a recess for lunch from 12:15 to 12:55, at which time the meeting resumed.
04-13
Upon motion of Regent Wulf, seconded by Regent Green, with all members voting aye, it
was ordered that approval of the minutes of October 23, 2003 be tabled until the April
meeting.
04-14
Upon motion of Regent Wulf, seconded by Regent Lopez, with all members voting aye, it
was ordered that the following Personnel items be approved.
A. Faculty and Staff Appointments for 2003-2004
1. Intramurals
Jason E. Saladiner, Intramural Supervisor, at a salary of $22,746 for 100% time
for 9 months, effective November 1, 2003.
2. Athletics
Mr. Michael Santiago, Head Football Coach, at a salary of $104,376 for twelve
months, effective February 1, 2004.
Mr. Robert Kim Dameron, Assistant Coach, at a salary of $ 65,120 for 10.5
months, effective February 1, 2004.
Mr. Todd Ivicic, Assistant Coach, at a salary of $55,022 for 10.5 months, effective
February 1,2004.
Mr. William S. Reed, Assistant Coach, at a salary of $56,288 for 10.5 months,
effective February 1, 2004.
Mr. Greg Z. Stevens, Assistant Coach, at a salary of $50,898 for 10.5 months,
effective February 1, 2004.
Mr. Robert Walker, Assistant Coach, at a salary of $60,206 for 10.5 months,
effective February 1, 2004
Mr. Kenny Washington, Assistant Coach, at a salary of $53,027 for 10.5 months,
effective February 1, 2004.
B. Changes of Status for 2003-2004
1. Early Childhood Lab
Ms. Karen Briley, from Master Teacher Toddler II at a salary of $31, 526 for
100% time for twelve months, to Master Teacher PKI at a salary of $32,526 for
100% time for twelve months, effective February 1, 2004.
Ms. Melissa L. McCormack, from Teacher Aide at a salary of $21,588 for 100%
time to Lead Teacher at a salary of $25, 632 for 100% time for twelve months,
effective November 1, 2003.
Ms. Rebecca P. Kilmer, from Substitute Teacher at an hourly rate of $6.50, to
Teacher at a salary of $24,943 for 100% time for twelve months, effective
December 15, 2003.
2. Financial Aid
Belinda K. Davis, from Admissions Fund Manager at a salary of $25,092 for
100% for 12 months to Financial Aid Officer at a salary of $27,000 for 100% for
12 months, effective October 27, 2003.
3. Forestry
Dr. Hans M. Williams, from Professor at a salary of $56,557 for 100% time for
nine months, to Professor and Kenneth Nelson Distinguished Professor for a
salary of $66,557 for 100% time for nine months, effective March 1, 2004.
4. Nursing
Ms. Delia E. Connor, from Clinical Instructor at a salary of $30,000 for 75% time
for nine months, to Clinical Instructor at a salary of $40,000 for 100% time for
nine months, effective January 1, 2004.
5. Research and Sponsored Programs
Ms. Heather L. Slough, from Assistant Director at a salary of $39,461.04 for
100% time for twelve months, to Interim Director at a salary of $45,461.04 for
100% time for twelve months, effective October 1, 2003.
6. Agriculture
Mr. Dennis J. Chessman, from Associate Director of Soil Lab and Instructor at a
salary of $38,731 for 100% time for twelve months, to Associate Director of Soil
Lab and Assistant Professor at a salary of $54,391 for 100% time for twelve
months, effective January 1, 2004. Change in status was contingent upon
completion of doctorate by January 1, 2004. Ph.D. was received from Texas
A&M, December, 2003.
7. Controller
Tamara Hart, from Manager at a salary of $48,000 for 100% time for twelve
months, to Assistant Controller at a salary of $55,000 at 100% time for twelve
months, effective February 9, 2004.
8. Criminal Justice
Dr. Ron Robinson, from VME status at a salary of $21,890 for 46.75% time for
three years effective September 1, 2003, to Associate Professor at a salary of
$46,825 for 100% time for nine months, effective September 1, 2003.
9. University Police
Mr. Christopher T. Rivers, from Police Officer II at a salary of $28,288 for 100%
time for twelve months, to Assistant Chief of Police at a salary of $54,780 for
100% time for twelve months, effective February 9, 2004..
C. Retirements for 2003-2004
1. Early Childhood Lab
Ms. Catherine F. Barra, Master Pre-K I Teacher, effective January 30, 2004.
D. Voluntary Modification of Employment for 2003-2004
1. Economics and Finance
Dr. Reynolds Griffith, Professor, effective Fall semester, 2004.
E. Administrative Leaves for 2003-2004
1. Political Science and Geography
Michael T. Tkacik, Assistant Professor, Fulbright Scholarship Leave of
Absence with partial pay of $10,000 effective Spring semester, 2004.
04-15
Upon motion of Regent Wilhite, seconded by Regent Wulf, with all members voting aye,
it was ordered that the following Academic and Student Affairs items be approved.
A. Faculty Workload Report for Fall 2003 - the faculty workload report for Fall
2003 was approved.
B. Last Class Day Report - the last Class Day Report for Summer I, Summer II and
Fall semester, 2003 was approved as presented.
04-16
Upon motion of Regent Stevens, seconded by Regent Ertz, with all members voting aye,
it was ordered that the following Academic and Student Affairs item be approved.
A. Forestry Masters Degree Name Change - approval was given to change the
Master of Science in Forestry degree to a Master of Science degree with majors in
Forestry and Spatial Science, pending Coordinating Board approval.
04-17
Upon motion of Regent Wulf, seconded by Regent Green, with all members voting aye, it
was ordered that the following Academic and Student Affairs item be approved.
A. Approval of the Fifth Grade Addition to the Charter School - the addition of
5th grade to the Charter School at SFA starting Fall 2004 was approved.
04-18
Upon motion of Regent Pond, seconded by Regent Stevens, with all members voting aye,
it was ordered that the following Academic and Student Affairs item be approved.
A. Dormitory Scholarships - approval was given to allocate $204,000 to support
dormitory scholarships.
04-19
Upon motion of Regent Wilhite, seconded by Regent Wulf, with all members voting aye,
it was ordered that the following Academic and Student Affairs item be approved.
A. Patent License - the President was authorized to sign any contracts or agreements
regarding licensing rights for Dr. Shiyou Li's sponsored research, as reviewed and
approved by the General Counsel.
04-20
Upon motion of Regent Wulf, seconded by Regent Ertz, with all members voting aye, it was
ordered that the following Financial Affairs items be approved.
A. Resolution to Review Qualified Investment Brokers and Financial Institutions - the
Resolution was approved as presented in Appendix No. 2. The following
brokers/investment managers are listed in the resolution: Merrill Lynch Inc., Neuberger
Berman, Fayez Sarofim & Co., John A. Levin & Co., Lazard Asset Management,
Franklin Private Client Group, Inc., MLIM L.P. Relative Value, Furman Selz Capital, and
NFJ Investment/PIMCO Allianz. The following financial institutions are also listed in
the resolution for review and approval: Citizen's First Bank, Commercial Bank of Texas,
First Bank and Trust East Texas, Bancorp South Fredonia, Region's Bank Stone Fort, and
Texas Bank.
B. Standards of Conduct for Financial Advisors and Managers - the Standards of
Conduct for Investment Advisors were approved as presented in Appendix No. 3.
C. Interagency Contract for Annual Software Maintenance - the President or his
designee was authorized to sign the proposed Interagency Contract for Services
for Software Maintenance of SCT Products (Contract) and to issue the necessary
purchase orders and/or agreements. Annual renewals of this maintenance
arrangement through August 31, 2009 as specified in Exhibit A to the Contract
shall be at the option of the administration. The cost for Fiscal Year 2004 is
$178,746 and is included in the University's Fiscal Year 2004 budget.
D. Equestrian Center Equipment Funds - the University was authorized to spend
the FY 2004 HEAF funds allocated to the beef program and the contingency, plus
any unused funds from the construction project (estimated at $25,000) to equip
the equestrian facility. The university was authorized to expend the $25,000
allocated to the swine and poultry programs to support the cost of physical plant
projects for those programs.
E. Budget Changes Less Than $50,000 - no action required.
F. Budget Increases for Marketing - approval was given to FY-04 budget increases
of $105,449 for marketing and $4,891 for Office of Public Affairs staffing.
G. Marketing Contract - the President was authorized to sign a marketing contract
for a sum not to exceed $125,000. This amount includes a combination of already
budgeted funds and a portion of the requested increase in FY-04 marketing funds,
as well as $7,435 for Web site review and recommendations that would be
contingent on FY-05 funding.
H. University Insurance — Property, Casualty, Liability - the University was
given authorization to cancel fiscal year 2004 Royal & Sunalliance insurance
coverage for business automobile, boiler and machinery, commercial property-auxiliary,
contractors' equipment and commercial general liability and to acquire
replacement coverage with Travelers. The University was also authorized to
acquire law enforcement liability and physical/sexual abuse insurance with
Travelers. These changes are to be effective as soon as possible. Arrangements
for the changes are to be made through the University's agent, USI Southwest.
The University was also authorized to develop a RFP document for University
insurance to procure coverage effective September 1, 2004 or as soon thereafter as
is practical. The University was authorized to extend the date of the Travelers
policies as necessary until coverage is effective for fiscal year 2005.
I. Privatization of the University Center Bookstore - upon recommended by the
Ad Hoc Committee on University Center Expansion and Renovation, it was
ordered that the administration solicit proposals for the privatization of the
University Center Bookstore.
04-21
Upon motion of Regent Wilhite, seconded by Regent Ertz, with all members voting aye,
it was ordered that the following Buildings and Grounds items be approved.
A. Piney Woods Conservation Center Sewer Treatment Facility - the University
was authorized to employ Jerry G. Ince, P.E. to design the surface flow wetland
system to serve the Piney Woods Conservation Center. The cost will not exceed
$12,500 and will be paid from FY 04 budgeted HEAF.
B. Nelson Rusche College of Business Educational Investment Center - the
University was authorized to renovate an existing classroom in the McGee
Building to create a high-tech, multi-media classroom. Cost of the project is
approximately $80,000. All funds to support the cost of the project are on deposit
with the SFASU Foundation. SFA Physical Plant employees will complete all
work for the project.
D. Utility Easement - the President was authorized to sign the Easement Approval to
Deep East Texas Electrical Cooperative for the primary electrical service at the
Equine Center on the Walter C. Todd Beef Farm. The easement required is ten
feet wide by approximately 400 feet long, running from CR 123 South to the
location of a pad mounted transformer East of the new facility.
The following Buildings and Grounds items were tabled for further review, and will
be brought before the April meeting.
C. University Center Expansion and Renovation
E. Real Estate Transactions
04-22
Upon motion of Regent Stevens, seconded by Regent Green, with all members voting
aye, it was ordered that the following Private Support-Agreement be approved.
A. Stephen F. Austin Quarterjack Club - the private support organization
agreement between the Stephen F. Austin Quarterjack Club and the University
was approved.
The following Private Support Agreement was tabled and will be brought back to
the Board at a later date.
B. Stephen F. Austin Tip-In Club
04-23
Upon motion of Regent Stevens, seconded by Regent Green, with all members voting
aye, it was ordered that the following University Policies and Procedures item be tabled
until it is reviewed by the Finance Committee, and that the item be returned to the agenda
at the April Board meeting.
A. Resolution to Acknowledge Review of Investment Policy and Strategy
04-24
Upon motion of Regent Wulf, seconded by Regent Ertz, with all members voting aye, it
was ordered that the following Policies and Procedures items be approved.
A. Policy Revisions - the policy revisions were adopted as presented, with the
exception of policies C-2 Annual Budget Preparation, and C-41 Investments,
which were tabled until the April meeting.
B. Board Meeting Schedule - a telephone Board meeting was scheduled for
Wednesday, February 18 at 1:00 regarding the University Center Bond Sale. The
April Board meeting was scheduled for Tuesday, April 20. The Board will be
polled regarding which day of the week is best for future meetings. There was
discussion regarding a Board retreat.
REPORTS
A. Faculty Senate
1. Faculty Senate Business
2. Progress on Tenure and Promotion Issues
3. Faculty Salaries
4. Classroom Improvements
B. Student Government Association
1. Commencement
2. Housing
3. HPE/Rec Center
4. Voter Registration Drives
5/ ? Library Hours of Operation during Dean Week and Finals Week
C. Vice President for Alumni Affairs
1. Alumni Affairs Update
2. Mentor Ring Program
D. Vice President for University Advancement
1. Planned Giving
E. President
1. Nacogdoches/Lufkin Day in Austin (January 28, 2004)
10
2. Round of Texas High School Counselor Breakfast Appreciations
(Texarkana on February 13, 2004)
3. University Center Bond Sale on February 18, 2004 at 1:00 p.m.
4. Visit by delegation of University Personnel from Xian, China (February
24-26, 2004
5. Spring Break (March 15-19, 2004)
6. Coordinating Board Meeting (April 22 & 23, 2004)
7. Answer Questions from Members of the Board of Regents
F. Athletic rivalry traditions - Eva Pack, Jim Corbin, and Jim Conditt
G. Board Committees - Chair Kenneth James made the following appointments:
Executive Committee
Kenneth James, Chair
Lyn Stevens, Vice Chair
Fred Wulf, Secretary
Academic and Student Affairs Committee
Margarita de la Garza-Grahm, Chair
Kenneth James
Paul Pond
Buildings and Grounds Committee
Mike Wilhite, Chair
Gary Lopez
Joe Max Green
Finance Committee
Fred Wulf, Chair
Lyn Stevens
Valerie Ertz
Nominating Committee
Lyn Stevens, Chair
Gary Lopez
Margarita de la Garza-Grahm
Meeting adjourned at 3:15 pm.
11
Appendix No, 1
REGULAR MEETING OF THE BOARD OF TRUSTEES
Nacogdoches Independent School District
DATE: December 18, 2003
TIME: 6:00 p.m.
PLACE: NISD Board Room, 511 South University Drive, Nacogdoches, Texas
PRESENT: Board Members: President Richard Fischer, Vice President Almarie Henderson,
Secretary Phil Mahar, Rex Humphreys, Duncan Rogde, and Tony Thompson were present.
Board Member Jay Knott was unable to attend the meeting. Administrative Staff: Superintendent
Tony Riehl, Peggy Cox, Ray Glynn, G.W. Neal, Charles Langlotz, Liz Ballenger, Rachel
Johnson, Delinda Neal, Debbie Walker, Donna Brown, Ross Holbrook, Michael Martin, Dan
Stanley, Julie Davis, Logan Fans, Shelton Jones, Tina Bobbin, Margo Russell, Kathi Stalnaker,
Pam Alexander, Trudy Hay. Malinda Lindsey, Debbie Grubbs, and Connie Reed.
Guests Signing the Register: Jennifer Vose of The Daily Sentinel, Kitty Jones, Jana McCall, Miles
McCali, Marsha Blount, Russell Lawrence, Judy Poe, Jan Lawrence, Lois Fitch, Jana Burrows,
Katherne Wbitbeck, Ramiro Mendiola, Anita Hutson, Keith Christopher, Penny Home, Farshid
Niroumand, Susie Porter, Jackie Cox, John Donihoo, Kristi Caldwell, Greg Caldwell, Donna
Christopher, David Beesan, Dana Henson, Brenda Drewery, Pamela Williams, Tom Davis, Doug
Stevens, Tanimie Stevens, Martha Forney, Cheryl Bartlett, Sandra Putnick, Lauree Hayes, Becky
Griffith, Felicia Henderson, Nancy Davis, Steve Conroy, Kathy Conroy, and Kenneth Cotter.
1. Opening Items
1.1 Call to Order, Legal Notice of Meeting, Invocation, Pledge of
Allegiance
President Fischer called the meeting to order at 6:00 p.m. Legal notice had been posted.
Rex Humphreys gave the invocation. Tony Riehl led the Pledge of Allegiance.
2 • Open Forum
No guests requested to address the Board.
3«, Recognition
3.1 Recognition - NISD Employees Retirements
Plaques were presented to the following retiring employees recognizing them for their years
of sendee to NISD:
Name
Donna J. Christopher
Maijorie Nelle Cueni
Brenda F. Drewery
Lois S. Fitch
Dona G. Fowler
Reba A. Fuller
Gloria Jean Gresham
Maye F. Hani
Anita J. Hutson
Russell N. Lawrence
Assignhient
Science - Nacogdoches H.S.
Librarian - Carpenter Elementary
Print Shop Operator
Counselor - Nacogdoches H.S.
Second Grade - Carpenter Elementary
Secretary to Dir. Of CATE
Exec. Director of Instruction
English - Nacogdoches H.S.
Clerical Aide - Band - Nacogdoches H.S
Industrial Tech - Nacogdoches H.S.
Years With NISD
29
14
28
20
13
20
26
18
4
19
12
Board Meeting, December 18, 2003 Page 3
bring to their attention. These are not items on which action can be taken, but simply an
opportunity to provide information to the members of the Board.
At each Board Member's place was an invitation from Marsha Blount, Art Teacher at
Nacogdoches High School, for a student Art Show in January and a copy of the
group picture of Board Members and Superintendent Riehl.
5 . Consent Agenda
President Fischer requested Board Members who wished to discuss any item on the
Consent Agenda to please indicate the agenda number and it would be set aside for
discussion at the appropriate time.
COiNSENT AGENDA MOTION: Upon a motion by Tony Thompson and second by
Almarie Henderson, the Board unanimously approved the Consent Agenda as presented.
5-1 Consideration - Approval of Board Meeting Minutes
Consent Agenda - Action Item - The Board unanimously approved, as presented, the
minutes for the Regular Board Meeting held November 20, 2003.
5.2 Report/Consideration - Information From Business Office on School
District Operations
Consent Agenda - Action Item - The Board unanimously approved the payment of bills as
presented and reviewed standard reports prepared by the Business Office.
5.3 Consideration - Approval to Close District Bank Accounts
Consent Agenda - Action Item - The Board unanimously approved the closure of the
following bank accounts which are no longer needed:
The Health Trust bank account at Regions Bank. The District no longer has a self-funded
Health Insurance Trust Plan and the balance in the account is zero.
The Section 125 bank account established last year under AFLAC at the Columbus
Bank in Columbus, GA. Since it is an out-of-state bank, the account should be
closed as soon as possible after it reaches a zero balance, which will be in January
2004.
5.4 Consideration - Annual Approval to Continue NISD/SFASU Charter
School And To Add Fifth Grade for the 2004/2005 School Year
Consent Agenda - Action Item - The Board unanimously approved the Superintendent's
recommendation to continue the NISD/SFASU Charter School Program for the 2003/2004
school year, and for the Charter School Governance Council to include the addition of fifth
grade in preparation for the 2004/2005 school year.
5.5 Consideration - Approval of Amendments to the NISD Gifted and
Talented Plan
Consent Agenda - Action Item - The Board unanimously approved amendments to the
NISD Gifted and Talented Plan as presented. (A copy of the plan will be included in the
Official Minute Book.)
5.6 Consideration - Approval of Career and Technology Education
Courses at NHS
Consent Agenda - Action Item - The Board unanimously approved the addition of the
following new Career and Technology courses to the Nacogdoches High School
curriculum: 13
Board Meeting, December 18, 2003 Page 1
At 8:20 p.m., the Board reconvened into open session.
MOTION: Phil Mahar moved to affirm the Administration's decisions on the complaint
filed by Kathy Conroy. Duncan Rodge seconded the motion. Motion carried unanimously
with all six Board Members voting in favor of the motion.
President Fischer stated the decision of the Board is final and is not subject to rehearing. The
hearing concluded at 8:23 p.m.
7. Executive or Closed Session Agenda
The Board did not enter into Executive/Closed Session for any agenda item other than as
stated in Agenda Item 6.5- Consideration of Kathy Conroy Level HI Complaint (Texas
Gov't Code Section 551.082 - Employee/Employee Complaint).
8 . Action On Item Discussed in Executive Session
No action taken by the Board other than in Agenda Item 6.5 - Consideration of Kathy
Conroy Level III Complaint (Texas Gov't Code Section 551.082 - Employee/Employee
Complaint).
MOTION TO ADJOURN: There being no further business, Board Member Rex Humphreys
moved to adjourn at 8:24 p.m.
Richard Fischer, Board President
Phil Mahar, Board Secretary
14
Appendix No. 2
BOARD OF REGENTS
OF
STEPHEN F, AUSTIN STATE UNIVERSITY
Nacogdoches, Texas
RESOLUTION APPROVING
FINANCIAL INSTITUTIONS AND BROKERS
FOR INVESTMENT TRANSACTIONS
WHEREAS, The Texas Public Funds Investment Act requires the University to submit a
resolution approving a list of qualified investment brokers to the governing body of the
institution for adoption and/or review; and
WHEREAS, the following firms are approved investment brokers:
Merrill Lynch, Inc.
Neuberger Berman
Fayez Sarofim & Co.
John A. Levin & Co
Lazard Asset Management
Franklin Private Client Group, Inc.
MLIM L.P. Relative Value
Furman Selz Capital
NFJ Investment/PIMCO Allianz
WHEREAS, the following firms are approved financial institutions:
Citizen's First Bank
Commercial Bank of Texas
First Bank and Trust East Texas
Bancorp South Fredonia
Region's Bank Stone Fort
Texas Bank
NOW THEREFORE BE IT RESOLVED that the Stephen F. Austin State University
Board of Regents, by the issuance of this Resolution, does hereby approve the above
listed firms for investment transactions by Stephen F. Austin State University; and
BE IT FURTHER RESOLVED that a copy of this resolution be spread upon the
minutes of the February 4, 2004 meeting of the Board.
THE BOARD OF REGENTS, STEPHEN F. AUSTIN STATE UNIVERSITY
Kenneth James, Chair Fred Wulf, Secretary
15
Appendix No. 3
DRAFT
Stephen F. Austin State University
Standards of Conduct for Financial Advisors
January 1,2004
Stephen F. Austin State University by rule of the Board of Regents, adopts rules of
conduct for financial advisors as presented.
All entities who provide or offer to provide financial advisory services to Stephen F.
Austin State University must abide by the following standards of conduct:
1. Each financial organization must engage in and promote honest and ethical
conduct, including the ethical handling of actual or apparent conflicts of
interest between personal and professional relationships;
2. Comply fully with the requirements of the Texas Public Funds Investment
Act, Texas Government Code, Chapter 2256 as delineated in the University's
Operating Funds Investment Policy regarding the investment or investment
management of state funds;
3. Acknowledge in writing that the financial organization offering to engage in
investment advisory services has read and agrees to comply with the
requirements of the University's operating and endowment investment
policies;
4. Immediately disclose any information to the University of any industry related
or investment management problems or concerns that might adversely impact
the reasonable performance of the University's funds;
5. Immediately disclose any change in the key personnel within the organization
that provides financial advisory services to the University;
6. Provide investment advisory, management, and broker services in accordance
with the highest standards of financial industry professionalism and
accountability.
16
Appendix No. 4
Interagency Contract for Services
THIS CONTRACT is entered into by and between the Contracting parties as stated below, pursuant to the authority granted
and in compliance with the provisions of "The Interagency Cooperation Act," Texas Government Code, Ch.771.
CONTRACTING PARTIES:
The Receiving Agency: Stephen F. Austin State University
P.O.Box 13012
Nacogdoches, TX 75962
The Performing Agency: Texas A&M University-Corpus Christi
6300 Ocean Drive
Corpus Christi, TX 78412
II. STATEMENT OF SERVICES TO BE PERFORMED:
Texas A&M University-Corpus Christi will perform the services as Assignee as, described in the Third Amendment
to 2002 Master Software License, Services and Maintenance Agreement by and between State of Texas, acting by
and through The Department of Information Resources, Texas A&M University-Corpus Christi, and SCT Software
& Resource Management Corporation dated effective June 9, 2003 attached and entitled the Third Amendment to
2002 Master Software License, Services and Maintenance Agreement, (hereinafter referred to as "the Agreement").
in
JThe Agreement" describes the Texas Connection Consortium or TCC. The Receiving Party may be referred to i
"the Agreement" as a TCC Member; the participating institutions may be collectively referred to as the TCC
membership.
III. BASIS FOR CALCULATING REIMBURSABLE COSTS:
The Receiving Party may receive products, maintenance and technical support services through this
agreement as the rates set forth in "the Agreement". °
IV. CONTRACT AMOUNT:
The total amount of this Contract shall not exceed:
Three hundred seventy thousand, four hundred twenty three dollars, ($370423.04).
The purchase of additional software licenses and associated maintenance fees during the term of this agreement will be added
to the contract amount and billed by the Performing Party.
Texas Connection Consortium, Interagency Contract for Services Stephen F. Austin State University i 7
Fiscal \ ear September 1,2003 to August 31,2004, ' ■ y 1/
V. PAYMENT FOR SERVICES:
electron* transactions, payable to Performing Agency dra™ by lhe Receivi"8 AS=™y. or thresh
P°*™d Sba" bC Mkd a""»al" - »P°» P'~, of an order for addition,, software ,„„ the m.
%2%««I" * * «— appropriation itemsCs, or accoUn,(s, from lvhih
VI. TERM OF CONTRACT:
This Contract is to be»i
THE UNDERSIGNED CONTRACTING
authorized for activities that ^^^
Government, and (2) the services, L^T^
Const,tut,on of Texas to be supp.ied under c'ontralt
** to for
the affected agencies estate
ti 21 °f A^ XVI of the
services by authority granted in the
^
The undersigned parties bind themselves to the faithful performance of this
contract.
RECEIVING AGENCY
Stephen F. Austin State University
P.O. Box 13012
Nacogdoches, TX 75962
PERFORMING AGENCY
Texas A&M University-Corpus Christi
6300 Ocean Drive
Corpus Christi, TX 78412
By:.
Authorized Signature
Mr. Bill Wagner
Director, Information Technology Services
Date:
e-mail: bwagner@sfasu.edu
unsortium> Interagcncy Contract for Sen ices
tember 1, 2003 to August 31, 2004.
Kathryn Funk-Baxter,
Asst. Vice-President and Comptroller
Date: October 20, 2003
e"maiI:
Stephc- F. Austin State Universi ity
18
EXHIBIT A
SCHEDULE OF SERVICES TO BE PERFORMED
The Department of Information Resources (DIR) has entered into a "Software License and Services
Agreement" with SCT Software & Resource Management Corporation (SCT) with an effective
date of June 30, 1995, and a "Technical Currency/Software Maintenance Agreement for Existing
Software, Initial License, and Optional License" of even date therewith (collectively referred to
as the SCT Contract). Under the SCT Contract, SCT has granted to DIR, for the benefit of certain
educational institutions (the Institutions), a perpetual, non-transferable, non-exclusive license to
the Licensed Software described therein. The Licensed Software consists of those products that,
at the time in question, SCT makes available for licensure to DIR, and includes, without
limitation, the BANNER 2000 and the Plus 2000 application software series. The SCT Contract
permits DIR and the Institutions to use the Licensed Software, including the source code, on a
perpetual, nontransferable, non-exclusive basis, with certain other conditions and restrictions. In
addition to the license, the SCT Contract obligates SCT to provide certain services to the
Institutions, including technical currency and maintenance services, and to establish a Centralized
Support Services Operation for an initial term of seven (7) years with an initial staffing of four (4)
full-time employees.
By means of a separate agreement, DIR and the participating Institutions sh^ll form a governing
board (the Board) that will perform certain strategic functions in connection with the
administration of the SCT Contract, including, among others, Contract Administration, Fiscal
Management, Planning, and prioritization of conflicting task requests submitted to the Centralized
Services Support Operation. All requests for specific Centralized Support Services shall be made
to DIR and communicated by DIR to SCT after approval by the Board. The Board will prioritize
specific task requests and mediate any conflicts between or among Institutions with respect to
utilization of the Centralized Support Services Operation. By signing this agreement, the
Receiving Party acknowledges that the Board shall have the authority to resolve disputes regarding
the Texas Connection Consortium program, and the Receiving Party therefore agrees to accept the
decisions of the Board to the extent such decisions may affect its interests in the program.
Payment for the initial license and/or continuing of the Licenses shall be made to DJR upon
execution of this agreement. The amount of such payment shall be based on the applicable
discount of SCT software and time of purchase but not less than 30% of the list price license fee
for the applicable software as of the effective date of the SCT Contract. Payment(s) for optional
licenses of the Licensed Software that are obtained no later than August 31, 1999 shall be made
to DIR at the time of purchase of the applicable licenses. Additional maintenance purchased shall
be pro-rated based on purchase price x 15% multiplied by the remaining months in the contract
year divided by 12.
Payment for technical support center and maintenance services shall be made to DIR on an annual
basis. Payment for the first year of such services shall be made upon execution of this agreement.
19
Fees for such services shall be as set forth in the SCT Contract. Such fees are stated in aggregate
amounts and shall be prorated among the participating Institutions by DIR and the consortium
board. Such fees are subject to an annual adjustment under the terms of the SCT Contract.
SCT will not increase maintenance more than three percent (3%) per year during the first seven
(7) years of the SCT Contract, and shall not increase more than seven percent (7%) per year
during the three (3) years following the expiration of the initial 7-year term. DIR shall forward
to SCT all payments received, minus any deductions for payment of the administrative fee
described below. Payment must be made no later than thirty (30) days after the date the
Receiving Party received the ITV or voucher from DIR; late payments shall be subject to an
additional charge to be determined by the Board.
Payment for Technical Support Services provided by SCT shall be made to DIR on an annual
basis. Payment for the first year of such services shall be made upon execution of this agreement.
Fees shall be as set forth in the SCT Contract. Such fees are stated in aggregate amounts and shall
be prorated among the participating Institutions by DIR and the consortium board. Such fees are
subject to an annual cost-of-living adjustment of five percent (5%) per year under the terms of the
SCT Contract. DIR shall forward to SCT all payments received, minus any deductions for
payment of the administrative fee described below. Payment must be made no later than thirty
(30) days after the date the Receiving Party received the ITV or voucher from DIR; late
payments shall be subject to an additional charge to be determined by the Board.
Implementation/support fees shall be at the rates specified in the SCT Contract. The SCT Contract
also requires the payment of other expenses, including travel expenses, as may be incurred by an
Institution during the term of the SCT Contract. Implementation/support fees and other expenses
shall be paid directly to SCT by each participating Institution.
As consideration for the services performed under this contract, DIR shall charge an
administrative fee negotiated with consortium board calculated to recover the cost of negotiating,
drafting and administering the SCT Contract and this contract. Recognizing that DIR must recover
direct and overhead cost associated with the management of SCT Contract, the initial mechanism
for recovery was established through the Texas Connection Contracts. These contracts called for
a 5% recovery on the software license fees paid by the members and a 5% recovery on annual
software maintenance fees and other fees obtained from SCT by the Members under the SCT
Contract. Additionally, an annual 5% increase from this base has been agreed to by the current
principals. Such administrative fees shall be deducted from amounts collected from the Receiving
Party for the payment of license and services fees. If any amounts are collected by DIR in excess
of its costs, such excess amounts shall be tendered to the Board, which shall have full discretion
regarding the use of such funds; PROVIDED, HOWEVER, the Board shall ensure that all such
sums are expended only for legitimate public purposes in connection with the Texas Connection
program for the benefit of the participating Institutions.
The TCC board will charge a one time fee to all institutions utilizing this contract which will be
due and payable to the TCC board through the Department of Information resources.
20
Appendix No. 5
Stephen F. Austin State University
Schedule of Budget Changes
September 10, 2003 to January 19, 2004
ACTIVITY RECIPIENT INCOME SOURCE
TOTAL 142,f422
21
Appendix No. 6
AGREEMENT BETWEEN
STEPHEN F, AUSTIN STATE UNIVERSITY
AND
STEPHEN F. AUSTIN QUARTERJACK CLUB
1. PARTIES
1.1 Stephen F. Austin State University (the "University") is an agency of
the State of Texas, organized and existing under Chapter 101,
Texas Education code, as an institution of higher education located
in Nacogdoches, Texas. The governing body of the University is the
Board of Regents (collectively, the "Regents").
1.2 Stephen F. Austin QuarterJack Club (the "Club") is a non-profit
corporation under the laws of the State of Texas for the sole
purpose of supporting the intercollegiate football program of the
University. The governing body of the Club is its Board of Directors
(collectively, the "Directors").
2. PURPOSE
2.1 The Club is a private support organization as defined in Chapter
2255 of the Texas Government Code.
2.2 The University is a state agency as defined in Chapter 2255 of the
Texas Government Code.
2.3 The parties are entering into this agreement for the purpose of
defining the relationship between them pursuant to Chapter 2255 of
the Texas Government Code, and to implement the policy (D-25.5)
of the Regents governing the University's relationship with private
support organizations.
2.4 While this agreement is in effect, the University recognizes the Club
as existing solely for the support of the intercollegiate football
program of the University. The parties agree that the Club is a
necessary and beneficial component of the University's overall
program for university advancement and exists solely to receive,
hold, manage and control gifts, grants or acquisitions that benefit
the intercollegiate football program of the University.
3. TERM
3.1 Provided the Club has first executed this agreement, this
agreement is effective upon its approval by the Regents.
22
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Quarterjack Club
Page 2
3.2 This agreement will continue in effect until terminated. Either party
may terminate this agreement by giving ninety days' written notice
to the other party. Notwithstanding anything to the contrary, this
agreement shall automatically terminate should the Club's 501(c)(3)
status be terminated by the IRS.
3.3 Any violation, knowingly or without regard for same by the Club or
any member of the Club, of a rule or regulation of the NCAA,
Southland Conference, or Stephen F. Austin State University will
result in immediate termination of this agreement, resulting in
disassociation procedures by Stephen F. Austin State University.
4. ORGANIZATION OF THE CLUB
4.1 The direction and management of the affairs of the Club and the
control and disposition of its assets shall be vested in a Board of
Directors which shall be governed by its Bylaws.
4.2 The Athletic Director of the University may serve as an ex officio,
non-voting member of the Board of Directors.
4.3 The officers of the Club shall be a President, a Vice President, and
a Secretary/Treasurer.
5. USE OF UNIVERSITY PERSONNEL AND SPACE BY THE CLUB
5.1 The University may provide personnel as necessary in the
determination of the Athletic Director of the University for the
support of the Club's business activities.
5.2 The University may provide office space, equipment, and supplies
as necessary in the determination o the Athletic Director of the
University for the Club to carry out its responsibilities and activities.
23
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Quarterjack Club
Page 3
5.3 The personnel services, office space, equipment, and supplies
provided by the University under this agreement shall be made
without charge to the Club.
5.4 Since all funds of the Club are transferred to intercollegiate football
accounts within the University, there will be no compensation of
University personnel for their services to the Club
5.5 Any conflict between University employees' fiduciary
responsibilities to either the University or the Club will be resolved
in favor of the University.
6. CLUB INVESTMENTS AND RECORD-KEEPING
6.1 All operating funds belonging or entrusted to the Club that remain
unused at the end of each fiscal year shall be transferred to
intercollegiate football accounts within the University in'accordance
with the general or specific purposes stipulated by the donors,
grantors or testators or, in the absence of such stipulations, for
such uses in support if intercollegiate football at Stephen F. Austin
State University as may be determined by the Club's Board of
Directors.
6.2 The Club, upon University's request, shall have or cause to be
performed an independent, external audit of its records and
operations.
7. FUND RAISING EFFORTS OF THE CLUB
7.1 The coordination of the Club's fundraising efforts/activities shall be
through the Athletic Director of Stephen F. Austin State University
or other authorized representative of the Stephen F. Austin State
University athletic program in accordance with all University fund
raising procedures.
24
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Quarterjack Club
Page 4
7.2 The Stephen F. Austin Quarterjack Club is authorized to do the
% following:
(1) To receive, hold, manage and control gifts and grants in
support of the intercollegiate football program at Stephen F.
Austin State University.
(2) To transfer into University intercollegiate football accounts all
or any part of the gifts and grants received in accordance
with the general or specific purposes stipulated by the
donors, grantors or testators or, in the absence of such
stipulations, for such purposes as may be determined by the
Board of Directors.
(3) Write checks and disburse funds to discharge the Club's
obligations. However, funds may not be drawn from the
Club or its accounts for any amount without review and
approval by the Athletic Director of Stephen F. Alistin State
University or other authorized representative of the Stephen
F. Austin State University athletic program. In addition,
funds may not be used or disbursed by the Club that would
violate any law of the State of Texas or could violate any rule
or regulation of the NCAA, Southland Conference, or
Stephen F. Austin State University.
7.3 The Athletic Department, through the Office of University
Advancement, shall maintain all donor lists, files, and gift records,
and will coordinate all donor recognition activities.
25
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Quarterjack Club
Page 4
Chair Date
Stephen F. Austin State University Board of Regents
President Date
Stephen F. Austin State University
^ / Date-'
Stephea£j\as1inQuarterjack Club
26
AGREEMENT BETWEEN
STEPHEN F. AUSTIN STATE UNIVERSITY
AND
STEPHEN F. AUSTIN TIP-IN CLUB
1. PARTIES
1.1 Stephen F. Austin State University (the "University") is an agency of
the State of Texas, organized and existing under Chapter 101,
Texas Education code, as an institution of higher education located
in Nacogdoches, Texas. The governing body of the University is the
Board of Regents (collectively, the "Regents").
1.2 Stephen F. Austin Tip-In Club (the "Club") is a non-profit
corporation under the laws of the State of Texas for the sole
purpose of supporting the intercollegiate men's basketball program
of the University. The governing body of the Club is its Board of
Directors (collectively, the "Directors").
2. PURPOSE
2.1 The Club is a private support organization as defined in Chapter
2255 of the Texas Government Code.
2.2 The University is a state agency as defined in Chapter 2255 of the
Texas Government Code.
2.3 The parties are entering into this agreement for the purpose of
defining the relationship between them pursuant to Chapter 2255 of
the Texas Government Code, and to implement the policy (D-25.5)
of the Regents governing the University's relationship with private
support organizations.
2.4 While this agreement is in effect, the University recognizes the Club
as existing solely for the support of the intercollegiate men's
basketball program of the University. The parties agree that the
Club is a necessary and beneficial component of the University's
overall program for university advancement and exists solely to
receive, hold, manage and control gifts, grants or acquisitions that
benefit the intercollegiate men's basketball program of the
University.
3. TERM
27
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Tip-In Club
Page 2
3.1 Provided the Club has first executed this agreement, this
agreement is effective upon its approval by the Regents.
3.2 This agreement will continue in effect until terminated. Either party
may terminate this agreement by giving ninety days1 written notice
to the other party. Notwithstanding anything to the contrary, this
agreement shall automatically terminate should the Club's 501(c)(3)
status be terminated by the IRS.
3.3 Any violation, knowingly or without regard for same by the Club or
any member of the Club, of a rule or regulation of the NCAA,
Southland Conference, or Stephen F. Austin State University will
result in immediate termination of this agreement, resulting in
disassociation procedures by Stephen F. Austin State University.
4. ORGANIZATION OF THE CLUB
4.1 The direction and management of the affairs of the Club and the
control and disposition of its assets shall be vested in a Board of
Directors which shall be governed by its Bylaws.
4.2 The Athletic Director of the University may serve as an ex officio,
non-voting member of the Board of Directors.
4.3 The officers of the Club shall be a President, a Vice President, and
a Secretary/Treasurer.
5. USE OF UNIVERSITY PERSONNEL AND SPACE BY THE CLUB
5.1 The University may provide personnel as necessary in the
determination of the Athletic Director of the University for the
support of the Club's business activities.
5.2 The University may provide office space, equipment, and supplies
as necessary in the determination o the Athletic Director of the
University for the Club to carry out its responsibilities and activities.
28
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Tip-In Club
Page 3
5.3 The personnel services, office space, equipment, and supplies
provided by the University under this agreement shall be made
without charge to the Club.
5.4 Since all funds of the Club are transferred to intercollegiate men's
basketball accounts within the University, there will be no
compensation of University personnel for their services to the Club
5.5 Any conflict between University employees' fiduciary
responsibilities to either the University or the Club will be resolved
in favor of the University.
6. CLUB INVESTMENTS AND RECORD-KEEPING
6.1 All operating funds belonging or entrusted to the Club that remain
unused at the end of each fiscal year shall be transferred to
intercollegiate men's basketball accounts within the University in
accordance with the general or specific purposes stipulated by the
donors, grantors or testators or, in the absence of such stipulations,
for such uses in support if intercollegiate men's basketball at
Stephen F. Austin State University as may be determined by the
Club's Board of Directors.
6.2 The Club, upon University's request, shall have or cause to be
performed an independent, external audit of its records and
operations.
7. FUND RAISING EFFORTS OF THE CLUB
7.1 The coordination of the Club's fundraising efforts/activities shall be
through the Athletic Director of Stephen F. Austin State University
or other authorized representative of the Stephen F. Austin State
University athletic program in accordance with all University fund
raising procedures.
29
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Tip-In Club
Page 4
7.2 The Stephen F. Austin Tip-In Club is authorized to do the following:
(1) To receive, hold, manage and control gifts and grants in
support of the intercollegiate men's basketball program at
Stephen F. Austin State University.
(2) To transfer into University intercollegiate men's basketball
accounts all or any part of the gifts and grants received in
accordance with the general or specific purposes stipulated
by the donors, grantors or testators or, in the absence of
such stipulations, for such purposes as may be determined
by the Board of Directors.
(3) Write checks and disburse funds to discharge the Club's
obligations. However, funds may not be drawn from the
Club or its accounts for any amount without review and
approval by the Athletic Director of Stephen F. Austin State
University or other authorized representative of the Stephen
F. Austin State University athletic program. In addition,
funds may not be used or disbursed by the Club that would
violate any law of the State of Texas or could violate any rule
or regulation of the NCAA, Southland Conference, or
Stephen F. Austin State University.
7.3 The Athletic Department, through the Office of University
Advancement, shall maintain all donor lists, files, and gift records,
and will coordinate all donor recognition activities.
30
Agreement between
Stephen F. Austin State University and
Stephen F. Austin Tip-In Club
Page 4
Chair Date
Stephen F. Austin State University Board of Regents
President Date
Stephen F. Austin State University
President Date
Stephen F. Austin Tip-In Club
31
Private Support Organizations or Donors D-25.5
Original Implementation: July 9, 1991
Last Revision: January 19, 1999
Pursuant to Chapter 2255 of the Texas Government Code, the University will recognize only
those private support organizations that meet the requirements of this policy as being formed and
designated to further the purposes and duties of the University.
Any organization or donor (whether existing as a corporation or as an unincorporated association)
which is formed to further the purposes and duties of the University must enter into a written
agreement with the University, approved by the Board. If the Board declines to enter into such an
agreement, the private support organization or donor is deemed not to further the purposes and
duties of the University, and the Board expressly forbids the use of the name, property, or
employees of the University in any actions or activities on the part of the private support
organization or donor. The agreement will address and govern all aspects of conduct of the
University and its employees in the relationship between the private support organization or
donor and the University and its employees including, but not limited to, the following:
A. Administration and investment of funds received by the organization
for the benefit of the University;
B. Use of an employee or property of the University by thp donor or
organization;
C. Service by an officer or employee of the University as an officer or
director of the donor or organization; and
D. Monetary enrichment of an officer or employee of the University by
the donor or organization;
Nothing in this policy requires that the University include only the above provisions as subject
matter in the agreement between the University and the private support organization or donor.
The Board has the responsibility to enter into that form of agreement which the Board, in the
exercise of its statutory authority, determines is in the best interest of the University.
Neither this policy nor any agreement entered into by the University may conflict or supersede a
requirement of a state or federal statute regulating the conduct of a University employee or
regulating the policies and procedures of the University.
Source of Authority: Board of Regents
Cross Reference: None
Contact for Revision: President
Forms: None
32
Appendix No. 7
BOARD OF REGENTS
OF
STEPHEN F. AUSTIN STATE UNIVERSITY
Nacogdoches, Texas
RESOLUTION TO ACKNOWLEDGE
REVIEW OF INVESTMENT POLICY AND STRATEGY
WHEREAS, The Texas Public Funds Investment Act requires that each University's
investment policy and strategy must be annually reviewed by the governing board of the
institution; and
WHEREAS, the law also requires the governing body to adopt a written instrument
stating that is has reviewed the investment policy and strategy;
NOW THEREFORE BE IT RESOLVED that the Stephen F. Austin State University
Board of Regents, by the issuance of this Resolution, does hereby approve the investment
policy and strategy as reviewed on February 4, 2004; and
r
BE IT FURTHER RESOLVED that a copy of this resolution be spread upon the
minutes of the February 4, 2004 meeting of the Board.
Attest:
Kenneth James, Chair Fred Wulf, Secretary
Appendix No. 8
Policies for Board Review
February 4, 2004
34
Appendix No. 8
34
Issuance and Control of Campus Keys B-15
Original Implementation: Unpublished
Last Revision: July 17, 2001 February 4, 2004
The security of the University is the responsibility of several departments on campus. First, the University Police
Department is responsible for the overall campus security. Second, the various department chairs are responsible for
their respective areas. Third, the Physical Plant Department is responsible for providing a sound, secure area.
A vital part of this system is the Lock and Key System of the University. Other than during normal working hours,
all campus buildings will be locked. Faculty and staff may be issued keys to University buildings upon the request
of the department head responsible for the building or area of the building.
An authorized individual entering or leaving a locked building shall not permit any individual to enter who would
not normally be permitted to enter the building during the hours it is locked. An authorized individual may have
guests so long as the guests stay in the proximity of the faculty or staff member having the assigned key and the
authorized individual assumes full responsibility for their presence.
An individual entering or leaving a locked building shall be responsible for securing the door and may be held liable
for any loss or damage to University property resulting from failure to do so.
Each department head will be responsible for the issuance of keys to the employees in their area of responsibility
and will be responsible for the level of security in that area. The Physical Plant will only issue keys to individuals at
the written request of the department head. It will be the responsibility of the department chair of each area to
maintain a record of who has been issued keys and to collect keys from departing employees.
Master keys will only be issued when a signed request is received from the department chair and if there is any
question about the requests, a verbal check with the department chair will be made.
Physical Plant will make keys based on a written request but will not deliver keys through the mail. Departments
may pick the keys up in plant or a locksmith will deliver the keys. The charge for making a key is $1 if picked up in
plant. An additional delivery charge will be made for keys delivered to the department.
If a key is lost or stolen, it should be immediately reported to both Physical Plant and to the University Police
Department.
Additional security measures are available and the Physical Plant will work with deans and department chairs to
achieve a high level of security if required.
Alarm Systems — alarm systems are available to departments through the University Police Department. Physical
Plant is not responsible for the installation or maintenance of alarm systems.
Physical Plant is responsible for the maintenance and upkeep of doors and locks to campus buildings. However, loss
of integrity of lock systems due to loss of keys or inadequate record keeping at the department level is not the
responsibility of Physical Plant. Physical Plant will rekey areas at the request of the department responsible, but
there will be a charge for this service.
University Police Department is responsible for locking and unlocking buildings and for determining the hours that
buildings will be open. Requests for special events, schedule changes, etc. should be directed to the University
Police Department.
Requests for keys are made on a "Key Request" form that must be approved by the department head for the specific
area. Requests may be mailed,"walked through," or submitted via the Physical Plant webpage work order. The
Lockshop is open from 7:00 a.m. to 4:00 p.m., Monday through Friday. If a locksmith is not in the shop, plant will
page a locksmith to return to the shop for immediate service.
PI
Source of Authority: Vice President for Business Affairs
Cross Reference: None
Contact for Revision: Director of Physical Plant Department
Forms: Key Request (available from Printing Services)
Return to Policy & Procedure Main Page
P2
Property Transfer and Disposal B-24
Original Implementation: January 1, 1985
Last Revision: April 22. 2003January, 2004
Surplus or salvage property is not to be disposed of in any manner other than those
described herein. Disposition of property acquired through Federal or State grants and
contracts must respect the terms of the grant or contract under which it was acquired.
Surplus Property is defined as any personal property that is in excess of the needs of the
department and which is not required for its foreseeable need. Surplus property may be
new or used but must have additional useful life.
Salvage Property is defined as any personal property which through use, time or accident
is so depleted, worn out, damaged, consumed, or outdated that it is obsolete and/or can no
longer serve the purpose for which it was originally intended.
TRADE-IN OF EQUIPMENT
Before declaring property surplus or salvage a department may consider trading in the
property on new property of the same general type when such exchanges are in the best
interest of the University. Trade-ins must be included in vendor negotiations from the
beginning; not added after completion of a contract. The requisition must include the
following information about each piece of equipment to be traded in: description,
inventory number, approximate age and condition; i.e., poor, good, working, not
working, etc. It is the department's responsibility to remove and return the inventory
number plate to the Property Manager.
Trade-ins are offered "where is, as is, at the State's option" during the bid process. The
final decision to trade is made after the bids have been received and an evaluation has
been performed by Purchasing and the department. The evaluation must consider 1) the
value to the University if the equipment can be utilized in another area for the same or
other suitable purposes; 2) the value of the equipment if offered in a public sale.
PROPERTY TRANSFERS BETWEEN DEPARTMENTS
Property may be transferred from one department to another by the use of the Property
Transfer Form (PTF). The form is to be signed by the department head transferring the
equipment and by the department head receiving the equipment. After completion, all
copies of the form are to be forwarded to the Property Manager.
Section I is to be completed by the department transferring the equipment. The form and
the physical property are to be forwarded to the department accepting responsibility for
the equipment.
P3
Section II is to be completed by the department receiving the equipment. Once the
department head accepting the equipment signs the form, he/she is accepting
responsibility for the care and control of the equipment. The completed form is to be
forwarded to the Property Manager. After the transfer is recorded a copy of the PTF will
be returned to the department head accepting responsibility for the equipment.
Microcomputers transferred between departments for re-use as a microcomputer, whether
for connecting to the internet or not, should be confirmed by the ITS Technical Support
Group or the department's designated technical representative to insure it meets
minimum standards for reliability, performance and compatibility with current versions
of software.
TRANSFERS TO SURPLUS
When equipment is determined to be surplus or salvage and will not be transferred
between departments, the department must contact the Property Manager. At the Property
Manager's direction the department should complete Section I of the Property Transfer
Form (PTF) for a transfer to Surplus. The PTF and equipment are to be delivered to the
surplus storage area. The Property Manager may direct the department to provide
documentation other than the PTF depending on the disposal action taken. Surplus or
salvage property is not to be delivered to the surplus storage area or otherwise disposed
of without first contacting the Property Manager.
Once an item is declared surplus or salvage, the Property Manager will determine which
disposal option best meets the needs of the University. Options for disposal will be
considered in the order listed below:
1. re-use on campus through transfer to another department
2. cannibalization for part
3. sell or donate to another state agency
4. posting on the Coordinating Board web-site for purchase by or donation to a public
school or school district (instructional materials only, including data processing
equipment)
5. donation only to a political subdivision, school district, volunteer fire department or
assistance organization classified under 501C
6. all remaining data processing equipment will be transferred to the Texas Department of
Criminal Justice
7. all remaining items will be advertised for public sale
8. donation to a private non-profit entity
P4
9. discarded
TRANSFERS FROM SURPLUS
Equipment declared surplus or salvage is available, without cost, for transfer to those
departments in need of such equipment. Availability is on a first-come, first-serve basis
after screening for the proposed purpose. Inspection of the equipment may be arranged by
contacting the Property Manager.
Microcomputers transferred from Surplus to departments for re-use as a microcomputer,
whether for connecting to the internet or not, should be confirmed by the ITS Technical
Support Group or the department's designated technical representative to insure it meets
minimum standards for reliability, performance and compatibility with current versions
of software.
POSTING INSTRUCTIONAL MATERIALS TO THE COORDINATING BOARD
WEB SITE
All surplus items determined to be "materials or equipment that can be used for
instructional purposes" will be posted to the Coordinating Board web site for direct
transfer to a public school or school district. Posting may be for consideration or for no
consideration as determined by the Property Manager. Disposal options 45-9 can not be
considered until "materials or equipment that can be used for instructional purposes" has
been posted to the Coordinating Board web site.
Postings will be made for a minimum one (1) week. All items posted for one week but
not transferred to a public school or school district will be disposed of following disposal
options 45-9.
If more than one public school or school district seeks to acquire the same property on
substantially the same terms, the Property Manager shall give preference to a public
school that is considered low-performing by the commissioner of education or to a school
district that has a taxable wealth per student that entitles the district to an allotment of
state funds under Subchapter F, Chapter 42, Education Code.
TRANSFER OF DATA PROCESSING EQUIPMENT TO THE TEXAS
DEPARTMENT OF CRIMINAL JUSTICE
Computer equipment meeting the definition of "materials or equipment that can be used
for instructional purposes" will first be posted to the Coordinating Board web site
following established rules. Any data processing equipment not posted and any data
processing equipment not transferred to a school district shall be transferred to the Texas
Department of Criminal Justice following established rules.
P5
Data processing equipment means information technology equipment designed for the
automated storage, manipulation, and retrieval of data by electronic or mechanical means.
The term includes central processing units, front-end processing units, mini-processors,
microprocessors, and related peripheral equipment such as data storage devices,
document scanners, data entry equipment, terminal controllers, data terminal equipment,
computer-based word processing systems other than memory typewriters, and equipment
and systems for computer networks.
Data processing equipment will not be disposed of in any manner other than Disposal
Options 1-63, 4 and 5 described herein.
PUBLIC SALE OF EQUIPMENT
The Property manager shall determine prices and conduct a public sale on a regular basis.
The Director of Purchasing and Inventory will review all items and sale prices prior to
each sale. All sales will be advertised with time for all interested parties to view the items
prior to the sale day. The Property Manager shall determine a method of access to the
property on sale day which is fair and equitable to all interested parties and which
prevents unnecessary traffic on campus by non-University personnel prior to the sale.
The Property Manager is not eligible to purchase any item for which he/she has
established pricing. No special privileges will be given to any employee or non-employee
wishing to purchase surplus items.
Proceeds from each sale of surplus property are credited, in the year of the sale, to a
revenue category (E&G Surplus Sales or non-E&G Surplus Sales) corresponding to the
fund from which the original purchase was made.
Source of Authority: Texas Government code, Title 10, Subtitle D, Chapter 2175; Texas
Government Code, Title 10, Subtitle B, Section 2054.003(3)(A); President; Vice
President for Business Affairs
Cross Reference: Property Inventory and Management Policy C-42
Contact for Revision: Director of Purchasing and Inventory
Forms: Property Transfer Form (available in Purchasing and Inventory)
Return to Policy & Procedure Main Page
P6
Work Requests B-32
Original Implementation: December 7, 1987
Last Revision: My-4-7r3004- February 4, 2004
The Physical Plant Department does routine preventive maintenance based on importance, priority and available
manpower. Maintenance is performed by the Physical Plant Department in response to requests made by individuals
authorized to expend University funds. The Physical Plant Department will respond to the following categories of
requests:
1. Routine Maintenance
2. Custodial Service
3. Disposal Service
4. Emergencies
1. Routine Maintenance. These requests should include anything of a normal nature that will not require
emergency attention or alter the structure. Such requests include temperature control, minor plumbing or
custodial problems, and minor electrical problems. Requests of this nature should be directed to the
Physical Plant Department by telephone at 468-3206, fax 468-4446,e-mail, or by submitting a request on
the Physical Plant website. The following information should be provided.
a. Building name
b. Department
kc.Date of request
cLer— Urgency of request (used to assign a work priority to each request)
dre^Exact location of job
f er— Detailed description of work needed
£g.Person making the request/contact number
h. Account number
2. Custodial Services. Requests for custodial services beyond normal cleaning activities by custodial
personnel should be directed to the Manager of Custodial Services at 468-3905.
3. Disposal Services. Disposal services are administered through the Special Services Department in the
Physical Plant Department at 468-5107. Paper and household garbage of campus residents are picked up
regularly. Used building/classroom materials such as lumber, cement, clay, etc., and confidential records
which must be destroyed will be picked up by Special Services upon request.
4. Emergencies. These requests, in the opinion of the requester, require immediate action to prevent
endangerment of life and property damage.
a. Broken water lines (inside or out)
b. Utilities off
P7
c. Smell of natural gas or burning
d. Broken windows
e. Commodes overflowing
f. Water spills on floors
g. Hazardous conditions
Emergency requests should be reported immediately to the Physical Plant Department at 468-3206, or to the
University Police Department at 468-2608 after normal working hours.
Source of Authority: Vice President for Business Affairs
Cross Reference: None
Contact for Revision: Director of Physical Plant
Forms: None
Return to Policy & Procedure Main Page
P8
Property Liability B-34
Original Implementation: April 22, 2003
Last Revision: None
Any University employee entrusted with state property may be held financially liable for
lost, damaged and stolen property as outlined in Texas Government Code 403.275.
All University employees will be provided required to sign a written document for
acknowledgement^ that he/she will from time to time be entrusted with the proper
maintenance and safekeeping of State and University property. The Property Liability
Acknowledgement form will also declare the employee's understanding that he/she will
be held financially responsible for any property determined to be missing or stolen due to
employee negligence.
A person is financially accountable for any property loss sustained by the state if:
(1) agency property disappears, as a result of the failure of the head of an agency,
property manager, or agency employee entrusted with the property to exercise reasonable
care for its safekeeping;
(2) agency property deteriorates as a result of the failure of the head of an agency,
property manager, or agency employees entrusted with the property to exercise
reasonable care to maintain and service the property; or
(3) agency property is damaged or destroyed as a result of an intentional wrongful act or
of a negligent act of any state official or employee.
If the head of the state agency or property manager has reasonable cause to believe that
any property in the agency's possession has been lost, destroyed, or damaged through the
negligence of any state official or employee, the head of the agency or property manager
shall report the loss, destruction, or damage to the comptroller and the attorney general
not later than the date established by the comptroller. If the head of the state agency or
property manager has reasonable cause to believe that any property in the agency's
possession has been stolen, the head of the agency or property manager shall report the
theft to the comptroller, the attorney general, and the appropriate law enforcement agency
not later than the date established by the comptroller.
The attorney general may investigate any report received.
If an investigation by the attorney general reveals that a property loss has been sustained
through the negligence of a state official or employee, the attorney general shall make
written demand on the official or employee for reimbursement of the loss.
P9
If the demand made by the attorney general is refused or disregarded, the attorney general
may take legal action to recover the value of the property as the attorney general deems
necessary.
Venue for all suits instituted under this section against a state official or employee is in a
court of appropriate jurisdiction of Travis County.
Source of Authority: Texas Government Code Ann. Sec. 403.271 (a) through 403.278;
2203.004; President; Vice President for Business Affairs
Cross Reference: Property Transfer and Disposal, Policy B-24; Property Inventory and
Management, Policy C-42
Contact for Revision: Director of Purchasing and Inventory
Forms: Property Liability Acknowledgement Form
Return to Policy & Procedure Main Page
P10
Annual Budget Preparation
Original Implementation: March 1, 1989
C-2
Last Revision: February 4. 2004January 30. 2001
Preparation of the Annual Operating Budget is coordinated through the office of the Vice
President for Business Affairs. Guidelines are established by the President based upon
legislative appropriations, student fees and other local income, non-pledged and pledged
auxiliary system student fees and other income, available Higher Education Assistance
Fund, and estimates of other fund revenues. Guidelines will reflect current legislative
appropriation riders in effect and any other legal restrictions. Budgets will be prepared by
operating department heads, submitted to the next appropriate level of review, then-to the
Vice President in charge of the division, and finally to the President for review, and then
to the Board of Regents for final consideration. The schedule for preparation of the
budget will be determined by the Vice President for Business Affairs in association with
the Presidents Cabinet. Generally the schedule wilt-may allow for Board of Regents
review in April on even-numbered years and for review in July for odd-numbered years.
Approved budgets will be announced to the University departments through
administrative channels following approval of the Board of Regents.
All budgets are based on available funds and no expenditures may be made except as
provided for in the approved budget or in accordance with changes approved by the
Board.
SOURCE OF AUTHORITY: Vice President for Business Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Vice President for Business Affairs
FORMS: None
NOTE: This policy was tabled. It
will return to the agenda for review
at the April 20 Board Meeting.
pn
Best Value Procurement C-7
Original Implementation: January, 1988
Last Revision: April 30, 2002January, 2004
PROCUREMENT PROCESSES
Stephen F. Austin State University makes purchases, not otherwise delegated through
Policy C-10 Delegated Purchasing Authority, goods and services on a best value basis
through any of the following processes.including 1) competitive bidding: 2) competitive
sealed proposalst-^^afefclog^ or 5) open market contract
All purchases completed with state funds must first consider making the purchase from
Texas Industries for the Blind and Handicapped (TIBH) as mandated by the state to
promote the purchase of goods or services from persons with disabilities.
The University may purchase goods or services through competitive sealed bid
procedures with the following limits established for solicitations:
a. $0 - $5000 Printing - Requires 2 bids when using state funds
b. $0 - $5000 All other products and services - Contract negotiation of best value
c. $5000.01 - $24,999.99 - Minimum 3 informal bids required; minimum 50% HUB
vendors including one woman-owned and one minority-owned
d. $25,000 - $49,999.99 - Minimum 5 formal bids required; minimum 50% HUB
vendors including one woman-owned and one minority-owned; Texas Marketplace
posting required.
e. $50,000 - $99,999.99 - Minimum 5 formal bids required; minimum 50% HUB vendors
including one woman-owned and one minority-owned; Board of Regents approval
required; Texas Marketplace posting required.
f. $100,000 and greater - Minimum 5 formal bids required; minimum 50% HUB vendors
including one woman-owned and one minority-owned; HUB Subcontracting Plan
required; Board of Regents approval required; Texas Marketplace posting required
The University may purchase good or services through the process established in
Government Code, Title 10, Subtitle D, Subchapter C, Section 2156 for the acquisition of
goods and services by the competitive sealed proposal process.
a. All competitive sealed proposals shall include an appropriate number of solicitations to
be determined by the Purchasing Department, including HUB vendors of any gender and
ethnicity when identified as providing the good or service identified.
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b. $25,000 - $49,999.99 - Texas Marketjja^^^
c. $50,000-$99,999.99 - Board of Regents approval required; Texas Marketplace posting
required
d. $100.000 and greater - HUB Subcontracting Plan required; Board of Regents approval
required; Texas Marketplace posting required
The University may purchase goods or services through the process established in
Government Code, Title 10, Subtitle D, Subchapter C Section 2157 for the acquisition of
automated information systems goods and services by the catalog purchase procedure.
Use of this procedure requires the award be made to a Catalog Information Systems
Vendor (CISV) as identified by the TBPC.
a. $0 - $2000 - Contract negotiation of best value
b. $2000.01 - $24,999.99 - Minimum 3 informal price comparisons required; minimum
50% HUB vendors including one woman-owned and one minority-owned
c. $25,000 - $49,999.99 - Minimum 5 formal price comparisons required; minimum 50%
HUB vendors including one woman-owned and one minority-owned; Texas Marketplace
posting required.
d. $50,000 - $99,999.99 - Minimum 5 formal price comparisons required; minimum 50%
HUB vendors including one woman-owned and one minority-owned; Board of Regents
approval required; Texas Marketplace posting required.
e. $100,000 and greater - Minimum 5 formal price comparisons required; minimum 50%
HUB vendors including one woman-owned and one minority-owned; HUB
Subcontracting Plan required; Board of Regents approval required; Texas Marketplace
posting required.
f. $0 - Up - Catalog purchases may be made directly from a CISV without price
comparisons when such purchase is the best value available and is in the state's best
interest. HUB Subcontracting Plan and Board of Regents approval requirements still
apply based on the dollar amounts above.
The University may purchase goods or services through group purchasing programs.
a. $50,000 - $99,999.99 - Board of Regents approval required
b. $100,000 and greater- HUB Subcontracting Plan required; Board of Regents approval
required.
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The University may purchase goods or services through the open market procedure
established in Government Code, Title 10, Subtitle D, Subchapter C, Chapter 2155.082.
The University may purchase goods or services through State of Texas Term Contracts,
State of Texas Multiple Award Schedules, and DIR/Tex-An Contracts.
The University may purchase goods or services through reverse auctions.
The University may purchase goods or services through other state agency contracts
when such contracts are available and have followed approved purchasing processes.
In determining best value, the University shall consider:
1) the purchase price;
2) the reputation of the vendor and of the vendor's goods or services
3) the quality of the vendor's good or services;
4) the extent to which the goods or services meet the University's needs;
5) the vendor's past relationship with the University;
6) the impact on the ability of the University to comply with the laws and rules relating to
historically underutilized businesses and to-the procurement of goods and-services from
persons with disabilities;
7) the total long term cost to the University of acquiring the vendor's goods or services;
8) any other relevant factor that a private business entity would consider in selecting a
vendor; and
9)4he-use-e£fftaterial in ceiisteHe&onor repair-te-feal propei^y-that is
single vendor-unless the University provides written justification in the request for bids
for use of the unique material specified.
The following limits afe-established fei:-eempetitive^d4fflg-ai:^d-eatateg-purchase
solicitations
ar-$0—up Procurement of goods and services from persons with disabilities (TIBH) must
be considered when-using state funds
b. $0 $5000 Printing—Requires 2 bids when using state funds
er-SQ ■ $5000 All-other products and services—Contract-negotiation of best-value
P14
i—$3Sj000—MkamHM^
vendors including one woman-owned and one minority-owned
e. $25,000.01 $19,999.99—Minimum 5 formal bids required; minimum 50% HUB
venders including ofie-w^efflan-ewHed-af^one minority ov^edt-^Texas-Mar-ketplaee
posting required.
f. $50,000 $99,999.99 Minimum 5 formal bids required; minimum 50% HUB vendors
ffletedmg one woman-owned aRd-^ne-fflieeri^~ewf^t-Boafd-ef Regents approval
required; Texas Marketplace posting required.
g. $100,000 and greater—Minimum 5 formal bids required; minimum 50% HUB vendors
kM^drng-^fte-^wemaft-owned and ane-mifteHty" owned; HUB-Subeontractmg-Plan
required; Board of Regents approval required; Texas Marketplace posting required
The University may use the process established in Government Code, Title 10, Subtitle
D, Subchapter C, Section 2156 for the-aequisition of goods mid sendees by the
competitive sealed proposal process
a. All competitive sealed proposals shall include HUB vendors of any gender and
ethnicity when identified as providing the good or
b. Texas Marketplace posting required for all procurement opportunities expected to
exceed $25,000.
c. All competitive sealed proposals expected to exceed $50,000 require Board of Regents
approval.
dr-All competitive sealed-proposals expeeted to exceed $100^000 require Beard-of
Regents approval and the submission of a HUB Subcontracting Plan.
The University may purchase goods or services through group purchasing programs.
a. All group purchases exceeding $50,000 require Board of Regents approval:
b. All group purchases exceeding $100,000 require Board of Regents approval.
EMERGENCY PURCHASES
An emergency purchase is defined as the purchase of goods or services that are so badly
needed that the agency will suffer financial or operational damage if they are not secured
immediately. A procurement may be declared an emergency at the buyer's discretion in
consultation with the end user and upon approval by the Director of Purchasing.
Declaration of an emergency supercedes all other best value procurement rules.
Orders less than $5000 are not considered emergencies.
P15
a. $5000.01 and greater - obtain bids, price comparisons or proposals when sufficient
time exists utilizing the most effectiveOrders exceeding $5000 should be hid
procurement process when sufficient time exists.
b^Qfders exceeding-$25,000 and greater - Texas Marketplace posting required if bids.
price comparisons or proposals are solicited as noted above and if the buyer determines
that value would be added by utilizing the Texas Marketplace, require Texas Marketplace
An emergency is defined by the answer to the following questions:
is the eme^^fley-and/^^-what-eaHsed-the emergency?
b. What financial or operational damage will occur it needs are not satisfied immediately?
c. Why could the needs-sot be anticipated so that proper pFeee4wes-em^-be-fellow@4?
EXEMPT PURCHASES
The following purchases are exempt from competitive bktdmgbest value procurement
processes. Submission of a purchase requisition and other rules may apply.
(Par Classified Advertising
(2)br Hotels and Conference Rooms
(3}er Conference Expense; expenses related to conference room services such as
audio/visual/network and food services, (does not include goods purchased for attendees
or transportation services.)
(4}dr Moving Expenses (employee) — See Policy C-21 Moving Expenses
(5)er Student Travel; expenses related to student travel
[6}£ Library materials for Stephen F. Austin State University Libraries, in accordance
with Gov't Code 2155.139, when such exemption represents the best value to the
University
(7}gr Membership fees and dues
(8}hr Newspaper and magazine subscriptions, books, videos and software direct from the
publisher
h Freight
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(10)j- Intra-agency payments
(1 Dfer Rental of exhibit space; i.e., booths for display purposes
£j_2)fflr Goods and services provided by the Texas Industries for the Blind and
Handicappedltems for resale
(13)bt Internal Repairs
(14)ot Purchases from Federal agencies
(15)fir Utilities, other than electricity for which SFA chose to opt into deregulation
(16)qr Goods and services for thean Organized Activity (Early Childhood Lab, Beef
Farm, Dairy Farm, Poultry Farm, Broiler Houses. and_Swine Farm); when the purchase
directly affects operations and such exemption represents the best value to the University
r. Purchases from other State Agency contracts, when such exemption represents the best
value to the University
BEST VALUE DETERMINATION
In determining best value for all procurement processes except Catalog Purchase
Procedure, the University shall consider best value factors identified in Education Code
51.9335.
In determining best value for Catalog Purchase Procedures, the University shalll consider
best value factors identified in Government Code 2157.003.
BID SUBMISSION, BID OPENING, AND TABULATION
ar-Bid Submission
(1)t Prospective bidders may request specific bid invitations from the Purchasing
Department at any time prior to the bid opening;
(2)t A bidder may withdraw its bid by written request at any time prior to the bid opening
date and hour;
(3)t A bid received after the time and date established by the bid invitation is a late bid
and will not be considered;
(4)t A bid received which does not contain adequate bid identification information on the
outside of the envelope will be opened to obtain such information and will then be
P17
processed as any other bid. If the incorrect information on the envelope causes the bid not
to be considered in making an award, the bid will be considered invalid and rejected;
(5)t Bids may be submitted by telefacsimile (fax). The telephone number for fax bid
submission will be identified in the solicitation; no other number may be used for bid
submission. Bids submitted by fax need not be confirmed in writing, but must comply
with all legal requirements applicable to formal bids. If all or any portion of a bid
submitted by fax is received late, is illegible, or is otherwise rendered non-responsive due
to equipment failure or operator error, the bid or the applicable portion of the bid will not
be considered. The university shall not be liable for equipment failure or operator error,
nor will such failure or error require other bids to be rejected or the bid invitation to be
re-advertised.
6. Bids by telegram are not allowed;
)t An unsigned bid is not valid and will be disqualified;
£7&}t A bidder or department may request, in person at the bid opening, that bids be read
aloud. No bid shall be required to be read aloud at any time other than during regular
working hours and days;
(89}t When formal bids are required, bids may not be taken or accepted by telephone;
(9W> If an error is discovered in a bid invitation, or agency departmental requirements
change prior to the opening of a bid, the Purchasing Department will transmit an
addendum correcting or changing the specifications to all bidders originally listed on the
transmission list for that bid invitation. Bids will not be rejected for failure to return the
addendum with the bid, unless otherwise noted, if the ehangereceipt of the addendum is
ne^edacknowledged on the face of the bid.-or the product or serviee-specification would
not be changed by the addendum;
kr-Bid opening and tabulation.
(1)t All bid openings conducted by the Purchasing Department shall be open to the
public.
[2)t Bid opening dates may be changed and bid openings rescheduled if bidders are
properly notified in advance of the opening date.
(3)t If a bid opening is canceled, all bids which are being held for opening will be
returned to the bidders.
(4}t All bid tabulation files are available for public inspection. Bid tabulations may be
reviewed by any interested person during regular working hours at the offices of the
Purchasing Department. Employees of the university are not required to give bid
tabulation information by telephone.
P18
Source of Authority: Texas Education Code, Chapter 51.93 35(a)—(b); President; Vice
President for Business Affairs
Cross Reference: Policy D-20.5 Items Requiring Board of Regents Approval, Index-D-
2QS; Policy C-16.5 Historically Underutilized Businesses, Index C 16.5; Policy C-10
Delegated Purchasing Authority
Contact for Revision: Director of Purchasing and Inventory
Forms: None
Return to Policy & Procedure Main Page
P19
COMPUTER EQUIPMENT C-8
PURCHASES
Original Implementation: December 8, 1987
Last Revision: Jafiuary-3^r-2QQ4 February, 2004
The term "computer-related items" as used in this policy refers to computer-related
hardware, software and services. Purchases of computer-related items should be approved
through the appropriate administrative channels.
It is the responsibility of the department head/account manager to have sufficient
knowledge of the purchasing procedures required by the State of Texas for computer-related
items when initiating such purchases and to seek the assistance of the Director of
Information Technology Services and the Director of Purchasing as needed. Although
users are responsible for such purchasing decisions, personnel in the computer center are
available for consultation and can help to determine the feasibility of proposed
acquisitions as each relates to consistency with the University's long range computing
plan and with campus computing resource capabilities, and their effective
interface/function with existing campus networks.
T As needed, the Purchasing Department will provide the Director of Information
Technology Services with a copy of the purchase of computer-related items. This will
assist the Director in the preparation of computing reports required by the State of Texas
on a regular basis.
SOURCE OF AUTHORITY: President
CROSS REFERENCE. None
CONTACT FOR REVISION: Director of Information Technology Services
FORMS: None
P20
Delegated Purchasing Authority C-10
Original Implementation: Unpublished
Last Revision: October 17, 2002January, 2004
Stephen F. Austin State University adheres to a policy of centralized purchasing for the
purposes of:
1. insuring compliance with state and federal laws, rules, and regulations;
2. protecting the University from unauthorized acquisitions of supplies, equipment and
services;
3. providing budgetary control and coordination;
4. insuring fair and ethical business practices; and
5. providing savings through consolidation of requirements, standardization of
products where appropriate, and competitive bidding.
The Purchasing Department, under supervision of the Director of Purchasing and
Inventory, has sole authority for the negotiation and purchase of all goods and services
for the University with the exception of items listed in-fedex- Policy D-20.5, Items
Requiring Board of Regents Approval and the following specific delegations that exist
under proper administrative approval.
1. The Manager of the University Bookstore is authorized to purchase books and other
general merchandise for resale as required for efficient operation of the store.
2. The Director of the University Libraries is authorized to purchase books,
periodicals, journals, and other related materials needed to maintain University
resource material collections.
3. The Curator of the Stone Fort Museum is authorized to purchase general
merchandise for resale in the museum gift shop.
4. The Physical Plant is authorized to make purchases up to $2000 with pre-assigned
requisition numbers for completion by the Purchasing Office with the same number.
5. Account Administrators are authorized to make local purchases of items costing
$500 or less through the Local Purchase Authorization procedures. See Local
Purchase Authorization, Policy C-20.A.
6. Account Administrators are authorized to make on-line office supply purchases with
a requisition # , if a ProCard is not available for the account being used.
7. Employees are authorized to make procurement card purchases of items costing
$2000 or less through the Procurement Card procedures. See Procurement Card,
Policy C-44.
8. Employees without Procurement Cards or access to LPA's may make purchases
approved by the Account Manager, and request reimbursement ONLY when other
purchase options are not possible or available. Taxes will not be reimbursed.
9. Employees are authorized to provide to vendors authorized PO numbers issued by
the Purchasing office (teiepPhone PO). In most cases the requisition must be entered
and approved on-line before the PO# is issued. When determined appropriate by the
Purchasing Office, the PO# may be issued without a requisition. In such cases, the
requisition must be entered on-line within 24 hours, and referencing the PO#.
P21
10. Certain payments may be made by completing a voucher for submission to the
Controller's Office. See Policy C-3 U Purchase Voucher, Policy C-31.
11. All other purchases are to be submitted as a formal request for the Purchasing
Department to secure a good or service. See Policy C-30, Purchase Requisition^
All official correspondence other than that delegated above; i.e., bids, purchase orders,
correction, cancellations, etc. shall be issued by the Purchasing Department.
UNAUTHORIZED PURCHASES MADE OUTSIDE OF DELEGATED AUTHORITY
Unauthorized purchases, regardless of the dollar amount, present problems for the
Purchasing Department, Accounts-Payable, vendors, and-end users. They-er-eate
unnecessary work. Also, the individual responsible for the unauthorized purchase may be
held personally liable for payment.
Any person responsible for initiating an unauthorized pwehase^^onsibility-will-be
determined by the Department Head, Dean, and/or Vice President) will be held
personally accountable until the transaction is resolved. Resolution options are:
A. To submit a letter signed by the individual, department head, dean, AND the Vice
President, which must include:
-+=—Description of the goods or services purchased;
-2;—Reason for making the purchase without proper authority/delegation; and
-^—Measures that will be taken to avoid recurrence of an unauthorized purchase in the
T| if | lyr*
111 I Hi I*.
B. To return goods to the vendor for full credit. The individual may be required to pay
s, if any.
C. To pay for the goods or services personally from own funds, NOT from University
faftdsrUnauthorized purchases are purchases charged to the University without utilizing
one of the delegations stated above. The department head/account manager may or may
not approve payment from University funds for an unauthorized purchase or any
associated late fees. Unauthorized purchases that are approved for payment are to be
submitted to the Purchasing Office through the purchase requisition procedure. On-line
approval through established department approval structures will constitute approval by
the department head/account manager.
The department head/account manager approving an unauthorized purchase is
responsible to insure that the account used for payment has sufficient funds.
The individual making the purchase is responsible to request approval from the
department head/account manager and submit the invoice to accounts payable within 30
days of the purchase to avoid mandated payment of late fees.
P22
If payment of the unauthorized purchase and/or any late fees is not approved, the
individual making the purchase will be responsible foripj^mejQt to the vendor for any
portion of the payment due but not approved.
Source of Authority: Vice President for Business Affairs
Cross Reference: NoeePolicy D-20.5 Items Requiring Board of Regents Approval;
Policy C-20.A Local Purchase Authorization; Policy C-30 Purchase Requisition; Policy
C-31 Purchase Voucher
Contact for Revision: Director of Purchasing and Inventory
Forms: Approval of Unauthorized Commitment of University Funds
Return to Policy & Procedure Main Page
P23
Historically Underutilized Businesses C-16,5
Original Implementation: August 2, 1994
Last Revision: July 25, 2002January, 2004
MISSION
The mission of the Stephen F. Austin State University Historically Underutilized
Business (HUB) program is to insure that all vendors, including Historically
Underutilized Businesses, receive full and equal opportunity to participate in contracting
opportunities by encouraging the use of HUBs through race-, ethnic-, and gender-neutral
policies.
COMMITMENT
In accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2161, and 1
Texas Administrative Code section 111.11 through 111.28, Stephen F. Austin State
University will make a good faith effort to utilize Historically Underutilized Businesses
(HUBs) in contracts for construction, services, including professional and consulting
services,, and commodities contracts. The University is committed to making a good faith
effort to increase business with HUBs by setting goals that recognize both underutilized
and overutilized businesses identified in the State of Texas Disparity Study. The Texas
Building and Procurement Commission (TBPC) HUB Rules, 1 TAC 111.11 111.28
encourages the use of HUBs by implementing these policies through race ethnic and
gender neutral means.
Heavy Construction other than building contracts
Underutilized Goals - 6.6% (BL, HI, AS, AI)
Overutilized Goals - 5.3% (WO)
Building Construction including general contractors and operative builders contracts
Underutilized Goals - 25.1% (BL, HI, WO)
Overutilized Goals - 1.0% (AS, AI)
Special Trade construction contracts
Underutilized Goals - 47.0% (BL, HI)
Overutilized Goals - 10.2% (AS, AI, WO)
Professional Services Contracts
Underutilized Goals - 18.1% (BL, HI, WO)
Overutilized Goals - 1.9% (AS, AI)
Other Services contracts
Underutilized Goals - 33.0% (BL, HI. AS, AI, WO)
Overutilized Goals - None
Commodities contracts
Underutilized Goals - 11.5% (BL, HI, WO)
Overutilized Goals -1.1% (AS, AI)
Al-American Indian; AS-Asian American; BL-Black American; HI-Hispanic American; WO-Woman
P24
ADMINISTRATION
The Director of Purchasing and Inventory shall serve as the official HUB Coordinator,
ensuring full participation in the HUB program by the Purchasing Department and that
purchasing policies are written to ensure HUBs have maximum opportunity to participate
in all procurement opportunities. The purpose of the HT JR Program in tn promote full and
equal business opportunities for all businesses in State contracting in accordance with the
goals-speeified in the State-e
GOALS
In development of a HUB plan in accordance with Texas Government Code, Chapter
2161.123, the University has established the following goals and specific programs.
Goal #1
The University's specific goals have been adjusted to eliminate "ovcrutilized" HUB
identified in the State of Texas Disparity Study and are as follows.The University
will ensure that best value procurement policies regarding solicitations are written
to meet or exceed the State's HUB solicitation requirements.
Heavy Construction other than building contract
Building construction including general contractors and operative builders contracts
Special trade construction contracts
47.0%
Professional Services contracts
Other Services contracts
Commodities contracts
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A.Ar Best value procurement opportunitiesSolicitations over $5,000, but less than
$25,000 feyakewill include at least three informal bkksolicitations, including half from
certified HUB vendors.
BB. Best value procurement opportunitiesSolicitations over $25,000 Fequirewill include
at least five formal bidssolicitations, including half from certified HUB vendors.
CG. Formal best value procurement opporfaftkiessolicitations will be posted to the
Purchasing Department web site.
DO. Bes^vakaeiSFeeufem^^ exceeding $25,000 will be posted
to the Texas Marketplace.
EE. Best value procurement opportunitiesSolicitations $100,000 and greater will require
a HUB Subcontracting Plan (HSP) to be submitted as a-required by 1 TAC Section
111.14. See Goal #3.
F. Opportunities for subcontractors will be posted on the SFA Purchasing web-site and on
the Texas Marketplace, when appropriate and upon request by the construction manager,
architect, engineer, etc.
Goal #2
The University will pursue various forms of outreach to identify certified and non-certified
HUB vendors with which to develop a business relationship. Vendors will
be advised of and/or assisted with the State's certification process.
A. The University Purchasing Department will host a vendor fair at which vendors across
the state will be invited to participate. Vendors will be provided with information
regarding how to do business with the University, as well as information about the HUB
certification process, and other state rules and guidelines. The University campus, other
state agencies, ISO's, and city and county governments will be invited to attend and make
procurement opportunities available. HUB vendors will be clearly identified on their
company label and in the program.
B. The HUB Coordinator and/or Purchasing Department buyers will attend and
participate in ethef-economic opportunity forums in the Houston, Dallas and Austin
Metroplexes and East Texas.
C. The University Purchasing Department will utilize the HUB directory provided by the
TBPC on-line when selecting potential suppliers and subcontractors for commodities,
services, and construction contracts.
P26
D. The HUB Coordinator will anafyze-e-xpe*idite
produce a mail piece to target-various groups, i.e. speeifie-service vendors, vendors by
city or county, vendors by dollar amount, etc., and notify them of the State's HUB
certification process if the HUB Coordinator determines that a mail piece would be
beftefieiakwork with the local chamber and other business organizations to present upon
request a seminar on how to do business with the University. The seminar will include
the University's HUB program and information about the HUB certification process.
E. The University Purchasing Department will send a mail piece to all new Texas
vendors added to the PRSUniversity's vendor database advising them of the State's HUB
certification process.
F. The University will host at least one HUB forums per yearas-**eeded-to introduce
^tential HUBs to upcomiung construction and/or renovation projects, in which a HUB
vendor is invited to present their business to appropriate procurement personnel from the
Purchasing Office as well as end users with delegated purchasing authority. When
appropriate, contracted construction managers or architect/engineers will be invited to
attend.
Goal #3
Stephen F. Austin State University will seek to contract with HUBs indirectly
through subcontracting opportunities in accordance with Texas Government Code,
eChapter 2161, Subchapter F and Commission HUB Rules, 1 TAC Section 111.14.
A. All procurementsSolicitations $100,000 or greater will require the University to
prepare the bid document includgmg HUB Subcontracting Plan (HSP) requirements as
developed by the HUB Coordinator. Potential biddersRespondents will be required to
submit a HUB Subcontracting Plan (HSP) as pfevidedrequired by the bktsolicitation
documents in order for the bktresponse to receive consideration.
B. Contractors will be forwarded information about the University's mentor-protege
program at the time of award of construction contracts.
C. The University HUB Subcontracting requirements allow bidders to use a subcontractor
with whom they are engaged in a registered mentor-protege agreement in lieu of
soliciting other HUB subcontractors.
D. Contractors will be advised that the Purchasing office will post subcontracting
opportunities on the SFA Purchasing web-site and the Texas Marketplace upon request.
Goal #4
P27
The University will establish educational training for personnel making
procurement decisions to assure compliance with stated objectives.
A. The University Purchasing Department will publish a newsletter which will, from time
to time^ includinge HUB information.
B. The University Purchasing Department will conduct training seminars for all campus
departments advising them of all current purchasing policies and procedures, including
HUB good faith effort requirements.
C. ProCard training will include an emphasis on the need to make small purchases from
HUBs and will include a list of HUB vendors for the most common purchases made with
D. Regular training for the use of the on-line requisition system will include an
introduction of general purchasing policies and guidelines. This introduction will include
information regarding the requirements to make a good faith
Purchasing Department will maintain a web-site providing HUB resources for
SFA departments.
E. The University Purchasing Department will host at least one HUB forum per year in
which HUB vendor(s) are invited to present their business to appropriate procurement
personnel from the Purchasing Office as well as end users with delegated purchasing
authority.
Goal #5
The University will gather HUB data to comply with statethe reporting
requirements of Texas Government Code, Title 10, Subtitle D, Chapter 2161 and 1
Texas Administrative Code sections 111.11 through 111.28.
A. Semi-annual and annual report data will be submitted within the timeframe and in the
format required by TBPC.
B. Semi-annual and annual reports will be scrutinized closely for correct vendor number
data.
C. HUB Subcontracting information will be compiled on a monthly basis and reported
semi-annually and annually.
D. Monthly HUB reports will be submitted to the President of the University providing
HUB expenditure data for each vice presidential division.
Goal #6
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The University will devetopmaintain a program to foster long-term relationships
between leaders of mature established companies and emerging minority and
women owned companies (that are HUB certified or eligible to be HUB certified) in
order for the latter to benefit from the knowledge and experience of the established
firms,
A. The University offerswill implement a Mentor-Protege program patterned after the
TBPC program and in accordance with Government Code 2161.065.
B. The University will sign Memorandums of Understanding with organizations such as
SCORE and the Angelina Procurement Assistance Center to assist in developing the
mentor-protege agreement and analyzing the protege's business plan.
C. The University's Mentor-Protege program will be advertised at all HUB Economic
Opportunity Forums attended.
D. Vendors with whom expenditures of $100,000 or more are recorded annually will
receive an annual mailing with information about the University's mentor-protege
program requesting that they consider participating.
Source of Authority: Board of Regents, President, Vice President for Business Affairs
Cross Reference: Texas Government Code, Title 10, Subtitle D, Chapter 2161; and
Texas Administrative Code, sections 111.11 through 111.28, Policy C-7 Best Value
Procurement
Contact for Revision: Director of Purchasing and Inventory/HUB Coordinator
Forms: None
Return to Policy & Procedure Main Page
P29
Investments C-41
Original Implementation: April 30, 1996
Last Revision: July 25, 2002-February 4, 2004
Policy Statement
Stephen F. Austin State University invests the public funds in its custody with primary
emphasis on the preservation and safety of the principal amount of the investment.
Secondarily, investments must be of sufficient liquidity to meet the day to day cash
requirements of the University. Finally, the University invests to maximize yield within
the two previously indicated standards. All investments within this policy conform to all
applicable State statutes and local rules governing the investment of public funds. This
policy is promulgated in accord with the Public Funds Investment Act (Government
Code, Chapter 2256), related portions of the Texas Education Code, and the applicable
portions of H. B. 2459, 74th Texas Legislature.
This policy establishes rules for the investment of all University and agency funds except
endowment funds. Endowment funds are invested in accordance with separate policy
approved by the Board of Regents and are the responsibility of fund managers selected by
the Board of Regents.
Objectives
The foremost objective of all investment decisions shall be safety of principal. All
investments must be undertaken with the fiduciary responsibility associated with that of a
reasonable and prudent person. Investments must be in accord with Texas law.
Investment maturity must be diversified to match the University's liquidity requirements.
Investments shall incur no unreasonable risk in order to maximize potential income.
Investments shall remain sufficiently liquid to meet all reasonably anticipated operating
requirements.
Investments may be diversified in order to respond to changing economic and/or market
conditions.
No investments within the portfolio or investment practices conducted to effect
investment activities shall violate the terms of this policy.
Authorized Investments
NOTE: This policy was tabled. It
will return to the agenda for review
at the April 20 Board Meeting.
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All University funds and funds held in trust for others may be invested only in the
following securities:
A) obligations of the United States of America, its agencies and
instrumentalities;
B) direct obligations of the State of Texas or its agencies and
instrumentalities;
C) collateralized mortgage obligations directly issued by a federal agency
or instrumentality of the United States of America, the underlying security
for which is guaranteed by an agency or instrumentality of the United
States of America;
D) other obligations, the principal of and interest on, which are
unconditionally guaranteed or insured by, or backed by the full faith and
credit of, the State of Texas or the United States of America or their
agencies and instrumentalities;
E) obligations of states, agencies, counties, cities, and other political
subdivisions of any state rated as to investment quality by a nationally
recognized investment rating firm of not less that A or its equivalent;
F) certificates of deposit issued by a state or national bank or savings and
loan association domiciled in Texas that is:
1) guaranteed or insured by the Federal Deposit Insurance
Corporation;
2) fully collateralized by obligations described in Authorized
Investments section A-E listed above, including mortgage backed
securities directly issued by a federal agency or instrumentality
that have a market value of not less than the principal amount of
the certificates, but excluding those mortgage backed securities of
the following nature:
a) obligations whose payment represents the
coupon payments on the outstanding
principal balance of the underlying
mortgaged-backed security collateral and
pays no principal;
b) obligations whose payment represents the
principal stream of cash flow from the
underlying mortgage-backed security
collateral and bears no interest;
P31
c) collateralized mortgage obligations that
have a stated final maturity date of greater
than 10 years; and
d) collateralized mortgage obligations the
interest rate of which is determined by an
index that adjusts opposite to the changes in
a market index.
G) fully collateralized repurchase agreements with a definite termination
date, secured by obligations described by Authorized Investments section
F, requiring the securities being purchased by the entity to be pledged to
the entity, held in the entity's name, and deposited at the time the
investment is made with the entity or with a third party selected and
approved by the entity; and placed through a primary government
securities dealer, as defined by the Federal Reserve, or a financial
institution doing business in this state;
H) bankers acceptances having a stated maturity of 270 days or fewer
from the date of issuance, to be liquidated in full at maturity, eligible for
collateral for borrowing from a Federal Reserve bank, and accepted by a
bank organized and existing under the laws of the United States of
America or any state, if the short-term obligations of the bank, or of a
bank holding company of which the bank is the largest subsidiary, are
rated not less than A-l or P-l or an equivalent rating by at least one
nationally recognized credit rating agency;
I) commercial paper that has a stated maturity of 270 days or fewer from
the date of its issuance, and is rated not less than A-l or P-l or an
equivalent rating by at least two nationally recognized credit rating
agencies or one nationally recognized credit rating agency and is fully
secured by an irrevocable letter of credit issued by a bank organized and
existing under the laws of the United States of America or any state;
J) no-load money market mutual funds regulated by the Securities and
Exchange Commission, having a dollar-weighted average stated maturity
of 90 days or fewer, and including in their investment objectives the
maintenance of a stable net asset value of $1 for each share;
K) guaranteed investment contracts conforming to Section 2256.015 of the
Government Code;
L) investment pools conforming to Section 2256.016 of the Government
Code;
P32
M) cash management and fixed income funds sponsored by organizations
exempt from federal income taxation under Section 501(f), Internal
Revenue Code of 1986 (26 U.S.C. Section 501(f));
N) Assets and/or funds reportable within the scope of the University's
annual financial report may not be invested in or used to purchase
securities, including obligations, of a private corporation or other private
business entity that owns 10% or more of a corporation or business entity
which records or produces any song, lyrics or other musical work that
explicitly describes, glamorizes or advocates:
(1) acts of criminal violence, including murder, assault, assault on
police officers, sexual assault, and robbery;
(2) necrophilia, bestiality, or pedophilia;
(3) illegal use of controlled substance;
(4) criminal street gang activity;
(5) degradation or denigration of females; or
(6) violence against a particular sex, race, ethnic group, sexual
orientation, or religion.
Insurance or Collateral
All deposits and investments of University funds other than direct purchase of United
States Treasury securities or United States Agency securities and in money market funds
invested in U. S. Treasury or Agency securities shall be secured by a pledge of collateral
with a market value equal to no less than 100% of the deposits or investments less any
amount insured by the FDIC or FSLIC and pursuant to Article 2529d, the Public Funds
Collateral Act. Evidence of the pledged collateral associated with bank demand accounts
shall be maintained by the University Controller. Evidence of the pledged collateral
associated with investments shall be maintained by the Director of Financial Services.
Eligible repurchase agreements shall be documented by a specific agreement noting the
collateral pledged in each agreement. Collateral shall be reviewed monthly by the
Controller and Director of Financial Services to assure the market value of the securities
pledged equals or exceeds the related bank and certificates of deposit balances.
Pledged collateral shall be maintained for safekeeping by a third party depository.
Collateral Defined
The University shall accept only the following securities as collateral:
P33
A) FDIC and FSLIC insurance coverage;
B) United States Treasury, Agency, or Instrumentality securities;
C) Other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the United
States of America;
D) Obligations of states, agencies thereof, counties, cities, and other
political subdivisions of any state having been rated as to investment
quality by a nationally recognized investment rating firm and having
received a rating of no less than A or its equivalent.
Investment Strategy
All investments will be made in accordance with the University's Investment Policy.
Investments may be diversified as needed to provide investment suitability to the
University's financial requirements. The preservation and safety of principal is the first
priority, however, it is recognized that unrealized losses will occur in a rising interest rate
environment, just as unrealized gains will occur during periods of falling interest rates.
Investments will be of the type to provide sufficient liquidity and marketability for any
operating requirements. The investment portfolio may be diversified with authorized
securities to accommodate changing market conditions. However, United States Treasury
securities are preferable because of their low risk and high liquidity. An investment
decision shall consider yield only after the requirements for principal preservation,
liquidity, and marketability have been met.
Investments may be categorized and described as:
A) Short Term - less than 90 days
Funds needed to meet short term operating requirements normally will be
invested in either the Texpool investment vehicle managed by the State
Treasurer or overnight sweep accounts established with banking
institutions. The benchmark is the average three month Treasury Bill
yield.
B) Intermediate Term - 90 days to one year
United States Treasury and Agency securities, United States Agency
Discount Notes are the primary investment vehicles. United States
Treasury securities are preferable because of their low risk and the ease
with which they are traded. The benchmark is 95 percent of the average
one-year Treasury Bill yield.
C) Long Term - over one year
P34
United States Treasury and Agency securities are the primary investment
vehicles. Normally, investments are laddered so that most principal is
returned over a five year period in increments sufficient to meet
anticipated operating and capital needs. The 30 Year Treasury Bond rate is
the benchmark for long term funds.
D) Maturity
The length of time for investments within this policy will vary according
to fund type and will be dependent on funding requirements. As a general
rule, funds will be invested for the time periods indicated:
Current Unrestricted and Restricted 2 days to one year
Funds
Plant Funds 3 months to 3 years
Delegation of Authority
The Vice President for Business Affairs (VPBA) of Stephen F. Austin State University is
responsible for investment management decisions and activities. The VPBA delegates the
day-to-day management of the investment activities to the Director of Financial Services.
The VPBA shall be ultimately responsible for all transactions undertaken and shall
establish a system of controls (Appendix A) to regulate the activities of officials and staff
involved in investment transactions.
The VPBA shall develop and maintain written administrative procedures and guidelines
for the operation of the investment program which are consistent with and part of this
Investment Policy (Appendix B).
The VPBA shall be designated as the University's investment officer and is responsible
for the duties outlined herein. The name and title of the investment officer shall be filed
with the Board of Regents. Changes of name and/or title must be filed with the Board of
Regents as they occur.
The maximum stated maturity date of any security may not exceed ten years, and the
weighted average duration of the portfolio shall not exceed five years without approval
by the VPBA and ratification by the Board of Regents.
No officer or designee may engage in an investment transaction except as provided under
terms of this policy as approved by the Stephen F. Austin State University Board of
Regents.
Prudence
P35
The "prudent person" standard will be used in the investment function and shall be
applied in the context of individual transactions as well as management of the overall
portfolio.
Accordingly, all investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering the
probable safety of their capital as well as the expected income to be derived.
Internal Controls
Stephen F. Austin State University has established a system of written internal controls
designed to prevent loss of public funds due to fraud, employee error, misrepresentation
by third parties, unanticipated market changes, or imprudent actions by employees of the
University. These controls are shown in Appendix A of this Investment Policy. These
controls are subject to the review of and recommendations from the University's
Department of Audit Services' office.
Investment Authority
The VPBA shall invest only those funds regulated by this policy and shall purchase only
those securities authorized by the Authorized Investments section of this policy.
Authorized Financial Dealers and Institutions
Investment transactions (bids and offers) will occur only between the University and
Board authorized broker/dealers.
A written copy of the investment policy shall be presented to any person offering to
engage in an investment transaction with Stephen F. Austin State University. The
qualified representative of the business organization offering to engage in an investment
transaction with Stephen F. Austin State University shall execute a written instrument
substantially to the effect that the business organization has (a) received and reviewed the
investment policy of the University and (b) acknowledges that the business organization
has implemented reasonable procedures and controls in an effort to preclude investment
transactions conducted between the University and the organization that are not
authorized by Stephen F. Austin State University's investment policy..
Securities may not be bought from any organization whose representative has not
provided the University with the acknowledgment required in the above paragraph.
Diversification
Investments may be diversified to minimize the risk of loss resulting from unauthorized
concentration of assets in a specific maturity, specific issuer, or specific class of
securities. The diversification limits by security type and issuer shall be:
P36
Category Maximum
U. S. Treasury securities and securities having 100%
principal and interest guaranteed by the U. S.
Government
U. S. Government agencies, instrumentalities 50%
and government sponsored enterprises
(excluding mortgage backed securities)
Collateral mortgage backed securities 25%
Fully insured or collateralized certificates of 100%
deposit
Bankers' acceptances 25%
Commercial paper 25%
Repurchase agreements 100%
Registered money market funds 80%
Local Government Investment Pool 100%
The VPBA and his or her designee may diversify investment maturity. To the extent
possible, investment maturity will be matched with anticipated cash flow requirements.
Matching maturity and cash flow requirements will minimize occasions for sale of
securities prior to maturity, thereby reducing market risk. However, no provision of this
policy shall be interpreted as prohibiting the sale of any security prior to maturity,
provided that it is in the University's financial interest to effect the sale.
The weighted average maturity of the entire portfolio shall be maintained at no more than
10 years and shall be reported quarterly to the Board of Regents. Pooled fund groups
eligible for University investment shall have a maximum weighted average maturity of
10 years.
Safekeeping and Collateralization
All securities transactions, including collateral for repurchase agreements, but excluding
mutual funds and investment pools, must be settled on a delivery versus payment basis.
Collateral for certificates of deposit shall be held by a third party custodian in the name of
the University. The third party custodian shall be required to issue a safekeeping receipt
to the University listing the specific instrument, rate, maturity, safekeeping receipt
number, and other pertinent information. Any collateral safekeeping receipt shall be
clearly marked on its face that the security is "pledged to Stephen F. Austin State
University".
Collateralization shall be required on certificates of deposit and repurchase agreements.
The collateralization level shall be no less than 100% of the market value of the principal
and interest due on these instruments.
Collateral for certificates of deposit and repurchase agreements shall consist of any of the
securities authorized for investment within this policy.
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Performance Evaluation
The VPB A shall submit quarterly reports to the Board of Regents through its Finance
Committee and the President of the University in the format prescribed by the Public
Funds Investment Act, within a reasonable time after the end of the quarter.
The reports must:
(A) describe in detail the investment position of the University on the date
of the report;
(B) be prepared by the investment officer(s) of the University;
(C) be signed by the investment officer(s) of the U