Minutes of the Board of Regents of Stephen F. Austin State University. 2000, Volume No. 165

              Stephen F. Austin
State University
Minutes of the
Board of Regents
Nacogdocbes, Texas
January 25, 2000
Volume 165
TABLE OF CONTENTS
Page
00-22 Approval of October 26, 1999 and December 13, 1999 Minutes 1
00-23 Faculty and Staff Appointments for 1999-2000 1
00-24 Faculty and Staff Appointments for 2000-2001 1
00-25 Faculty and Staff Appointments for 2000-2001 2
00-26 Faculty and Staff Appointments for 2000-2001 2
00-27 Faculty and Staff Appointments for 2000-2001 3
00-28 Faculty and Staff Appointments for 2000-2001 3
00-29 Changes of Status 3
00-30 Voluntary Modification of Employment 4
00-31 Presidential Search Process 4
00-32 Last Class Day Report for Fall 1999 4
00-33 Faculty Workload Report for Fall 1999 ..4
00-34 Distance Education Courses 4
00-35 Underenrolled Classes, Spring 2000 5
00-36 Additional 2000 Off-Campus Classes 5
00-37 Honorary Doctorate 5
00-38 Acceptance of the Southern Association of Colleges and Schools Self-Study
00-39 Resolution to Review Qualified Investment Brokers and
Financial Institutions 5
Allocation of HEAF 1996 Bond Proceeds for Debt Service Costs 5
Purchase of Computer Equipment for the Forest Resources Institute 6
Purchase of GIS Computer Equipment for Forestry Laboratories 6
Budget Changes Less than $50,000 6
00-40 Renovation of the Greenhouse/Laboratory Complex and the Front
Fa9adeofthe Forestry Building 6
00-41 Facilities Services 6
00-42 Real Estate 403 East Starr 6
00-43 Real Estate 211 Feazell Street 6
00-44 Adoption of Revised University Safety Manual 7
00-45 Resolution to Acknowledge Review of Investment Policy and Strategy 7
00-46 Policy Revisions 7
Reports
Chair, Faculty Senate
President, Student Government Association
Interim President
Nominating Committee: Penny Butler, Chair; R. A. Brookshire; Pattye Greer
Appendix No. 1 - Resolution Approving Financial Institutions and Brokers for
Investment Transactions 8
Appendix No. 2 - Budget Changes Less than $50,000 9
Appendix No. 3 - Letter of Intent 10
Appendix No. 4 - Resolution to Acknowledge Review of Investment Policy
and Strategy 12
Appendix No. 5 - Policy Revisions 13
New Assessment of Institutional Effectiveness, New Budget Control,
New Residence Requirement, New Semester Grades, New Vendor Tax
Status Verification, A-4 Academic Programs & Curricula, Review &
Approval, A-5 Add/Drop, A-l 1 Commencement, A-20 Graduate
Assistantships, A-23 Interlibrary Loan. A-25 Library Gifts, A-26
Library Lending, A-29 Library Public Address System, A-41 Grade
Reporting, B-14 Property Responsibility, C-l Adjustment of
Inventory, C-l3 Food Purchases, C-14 Foreign Travel, C-l6.5
Historically Underutilized Businesses, C-30 Purchase Requisition, C-
35 Returned Checks, C-36 Special Purchases, C-37 Travel
Request, C-40 Year End Purchasing, C-41 Investments, C-41A
Investments - Endowment Funds, C-42 Property Inventory, C-43
Travel Charge Card, D-22 Naming Guidelines, E-31A Library Faculty,
E-33 Nepotism, E-35 Outside Employment, E-43.5 Risk Management,
E-52N Time Sheets, F-3 Bookstore Special Orders, F-4 Bookstore
Textbook Orders
MINUTES OF THE MEETING
BOARD OF REGENTS
STEPHEN F. AUSTIN STATE UNIVERSITY
HOUSTON, TEXAS
JANUARY 25, 2000
The meeting was called to order at 9:00 a.m. by Chair Jimmy Murphy. Board members
present in Room 307: R. A. Brookshire, Penny Butler, Mike Enoch, Pattye Greer, Gary
Lopez, Susan Roberds, Lyn Stevens and Mike Wilhite. Absent:, none
Others present: Roland Smith, Janelle Ashley, Baker Pattillo, Yvette Clark, and other
SFA administrators.
00-22
Upon motion of Regent Wilhite, seconded by Regent Roberds, with all members voting
aye, it was ordered that the minutes of October 26, 1999 and December 13, 1999 be
approved as presented.
00-23
Upon motion of Regent Greer, seconded by Regent Roberds, with all members voting aye, it was
ordered that the following faculty and staff appointments for 1999-2000 be approved.
1. Library
Ms. Erin Palazzolo, Librarian I, MLS (University of Texas—December 1999), at
a salary of $31,900 for 100% time for twelve months, effective January 1, 2000.
2. Modern Languages
Dr. Gordon D.F. Rohlehr, Visiting Professor for Diversity Studies, Ph.D. (The
University of Birmingham, U.K.), at a salary of $45,000 for 100% time for four
and one-half months, effective January 1, 2000.
00-24
Upon motion of Regent Roberds, seconded by Regent Wilhite, with all members voting
aye, it was ordered that the following faculty and staff appointments for 1999-2000 be
approved.
1. Athletics
Mr. Michael Santiago, Head Football Coach, at a salary of $94,600 for twelve
months, effective February 1, 2000.
Mr. Denzil Cox, Assistant Coach and Instructor of Kinesiology, at a salary of
$60,791 for 10.5 months, effective February 1, 2000.
Mr. Robert McFarland, Assistant Coach and Instructor of Kinesiology, at a salary
of $54,567 for 10.5 months, effective February 1, 2000.
Mr. Arlington Nunn, Assistant Coach and Instructor of Kinesiology, at a salary of
$45,687 for 10.5 months, effective February 1, 2000.
Mr. Robert Walker, Assistant Coach and Instructor of Kinesiology, at a salary of
$48,060 for 10.5 months, effective February 1, 2000
Mr. Todd Ivicic, Assistant Coach and Instructor of Kinesiology, at a salary of
$49,868 for 10.5 months, effective February 1, 2000.
Mr. Tommy Condell, Assistant Coach and Instructor of Kinesiology, at a salary
of $50,525 for 10.5 months, effective February 1, 2000.
00-25
Upon motion of Regent Roberds, seconded by Regent Wilhite, with all members voting
aye, it was ordered that the following appointments be approved:
1. Athletics
Mr. Phillip Olson, Men's Track Coach and Instructor of Kinesiology, at a salary
of $38,424 for nine months, effective January 3, 2000.
00-26
Upon motion of Regent Roberds, seconded by Regent Wilhite, with all members voting
aye, it was ordered that the following appointments be approved.
1. Athletics
Ms. Marcia Fletcher, Women's Track Coach and Instructor of Kinesiology, at a
salary of $44,710 for 10.5 months, effective January 3, 2000.
00-27
Upon motion of Regent Roberds, seconded by Regent Wilhite, with all members voting
aye, it was ordered that the following appointments be approved.
1. Student Publications
Ms. Julie Jasek, Coordinator of Student Publications, at a salary of $25,987 for
twelve months, effective October 11,1999.
00-28
Upon motion of Regent Greer, seconded by Regent Wilhite, with all members voting aye, it was
ordered that the following faculty and staff appointments for 2000-2001 be approved.
1. Forestry
Dr. Dean W. Coble, Assistant Professor, Ph.D. (The University of Montana), at a
salary of $44,000 for 100% time for nine months, effective September 1, 2000.
00-29
Upon motion of Regent Roberds, seconded by Regent Wilhite, with all members voting
aye, it was ordered that the following changes of status be approved.
1. History
Dr. Sylvia McGrath, from Professor at $58,151 for 100% time for nine months to
Professor/Chair at a salary of $73,100 for 100% time for eleven months.
2. Purchasing
Ms. Diana Boubel, from Director of Purchasing at a salary of $52,583 for 100%
time for 12 months effective September 1,1999, to Director of Purchasing and
HUB Vendor Services at a salary of $56,183 for 100% time for 12 months,
effective January 1, 2000.
3. Management/Marketing/International Business
Dr. Neil Herndon, from Associate Professor and Chair to Administrative Leave
effective January 13, 2000 to July 31, 2000.
Dr. Dillard Tinsley, Professor at $68,862 for 100% time for nine months to
Professor and Acting Chair at a salary of $85,756 for 100% time for eleven
months effective January 10, 2000 to July 31, 2000.
4. Counseling and Career Services
Ms. Robin Patterson from Casual Employee at $12.02 per hour to Coordinator of
Testing at $25,000 for twelve months, effective October 1, 1999.
00-30
Upon motion of Regent Greer, seconded by Regent Roberds, with all members voting
aye, it was ordered that the following request for retirement and subsequent modification
of employment be approved:
Dr. Carl L. Davis, History, effective September 2000.
00-31
Upon motion of Regent Roberds, seconded by Regent Butler, with all members voting
aye, it was ordered that the Executive Committee authorize a request for proposals for
the presidential search and conduct the initial interviews, with final action to be taken at
the April 18 Board Meeting.
00-32
Upon motion of Regent Greer, seconded by Regent Enoch, with all members voting aye,
it was ordered that the Last Class Day Report for the fall semester, 1999, be approved as
presented.
00-33
Upon motion of Regent Roberds, seconded by Regent Butler, with all members voting
aye, it was ordered that the faculty workload report for the fall semester, 1999 be
approved as submitted at the meeting.
00-34
Upon motion of Regent Wilhite, seconded by Regent Butler, with all members voting aye,
it was ordered that approval be granted to offer the following upper level courses in the
Spring 2000 semester.
EPS 380.101 Educational Psychology
SPE 329.101 Survey of Exceptionalities
ITV:
COU 525.101
EPS 585.101
PSC 444.130
Vocational Educational Counseling
Advanced Human Growth and Development
Public Organizational Theory
00-35
Upon motion of Regent Enoch, seconded by Regent Roberds, with all members voting
aye, it was ordered that the Chairman of the Board be authorized to sign the
Underenrolled Class Report for Spring 2000 when the data is available.
00-36
Upon motion of Regent Greer, seconded by Regent Roberds, with all members voting
aye, it was ordered that the Board of Regents approve the addition of the courses listed
below to be taught at the off-campus sites indicated:
Site Course Title
00-37
Upon motion of Regent Roberds, seconded by Regent Enoch, with all members voting
aye, it was ordered that an honorary doctorate be given to Mr. Arthur Temple, Jr.
00-38
Upon motion of Regent Roberds, seconded by Regent Butler, with all members voting
aye, it was ordered that the SACS Self-Study be approved as presented at the meeting.
00-39
Upon motion of Regent Roberds, seconded by Regent Stevens, with all members voting
aye, it was ordered that the Resolution Approving Financial Institutions and Brokers for
Investment Transactions be approved as presented.
It was further ordered in the same motion that $266,853 remaining in HEAF 1996 bond
proceeds be allocated to fund HEAF debt service costs.
It was further ordered in the same motion that the purchase of computer equipment for
the Forest Resources Institute be ratified, at the price of $87,350 with funds from the
T.L.L. Temple Foundation grant.
It was further ordered in the same motion that the purchase of the computer equipment
for the GIS Laboratory be approved, in the amount of $91,890.
00-40
Upon motion of Regent Wilhite, seconded by Regent Roberds, with all members voting
aye, it was ordered that the renovation of the College of Forestry Greenhouse and the
front facade of the Forestry Building be approved, at a total amount not to exceed
$150,000 from HEAF and $800,000 from the T.L.L. Temple Grant (Phase I).
00-41
Upon motion of Regent Wilhite, seconded by Regent Butler, with all members voting aye,
it was ordered that the University be authorized to procure architectural and engineering
services, select a construction manager, get Coordinating Board approval, obtain bids and
proposals, initiate preliminary steps required for issuing bonds, and perform interim
maintenance. Individual project specifications, bids and proposals and resolutions will be
presented as required to the Board Building and Grounds and Finance Committees for
review and recommendations and then brought to the Board for final approval. The
projects include:
1. A Telecommunication/Information Technology Services facility and switch.
2. Stadium ADA improvements, maintenance and renovations.
3. Renovation of property at 1439 Mound Street for Social Work.
4. Renovation of Information Technology Services area
5. Renovation of Power Plant to bring plant into compliance with current codes and the
Clean Air Act of 1990
00-42
Upon motion of Regent Wilhite, seconded by Regent Roberds, with all members voting
aye, it was ordered that the property at 403 East Starr Avenue be purchased at a price of
$141,800 plus customary legal fees, in accord with the accompanying Letter of Intent.
00-43
Upon motion of Regent Greer, seconded by Regent Butler, with all members voting aye,
it was ordered that the President be authorized to proceed with the purchase of the
property at 211 Feazell Street at a price not to exceed the appraised value of the
property.
00-44
Upon motion of Regent Stevens, seconded by Regent Butler, with all members voting
aye, it was ordered that the Safety Manual revisions, made in accordance with the State
Office of Risk Management Review, be approved as presented.
00-45
Upon motion of Regent Roberds, seconded by Regent Greer, with all members voting
aye, it was ordered that the Resolution to Acknowledge Review of the Investment Policy
and Strategy be ratified as presented in Appendix No. 4.
00-46
Upon motion of Regent Wilhite, seconded by Regent Enoch, with all members voting aye,
it was ordered that the Board of Regents adopt the policy revisions as presented.
Chair Jimmy Murphy named the Nominating Committee: Penny Butler, Chair; R. A
Brookshire, and Pattye Greer.
Future Board Meetings dates will be April 17 and 18; July 31 and August 1.
Meeting adjourned at 9:56 a.m.
BOARD OF REGENTS
Appendix No. 1
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:
Bank of America
Merrill Lynch, Inc.
Regions Investment Company
Salomon Smith Barney, Inc.
Southwest Securities, Inc.
WHEREAS, the following firms are approved financial institutions:
Citizen's First Bank
Commercial Bank of Texas
First Bank and Trust
Fredonia State Bank
Regions Bank
Texas Bank
NOW THEREFORE BE IT RESOLVED that the Stephen F. Austin State
University Board of Regents, by the issuance of this Resolution, do 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 January 25,2000, meeting of the Board.
THE BOARD OF REGENTS, STEPHEN F. AUSTIN STATE UNIVERSITY
Jitfinrfy Mprphy, Chair
I A
Penny Butler
fau &o€*&^
R.A. Brookshire, Vice Chair Mike Enoch
&Lee^
Pattye ufeer, Secretary Gary Lopez
Susan Roberds
o
Mike Wilhite
8
Appendix No. 2
STEPHEN F. AUSTIN STATE UNIVERSITY
SCHEDULE OF BUDGET INCREASES
September 1, 1999 through December 31, 1999
ACTIVITY RECIPIENT TRANSFER SOURCE
Stephen F. Austin
State University
LETTER OF INTENT
Appendix No. 3
WHEREAS, Mr. J.D. Harkrider desires to sell his property at 403 East Starr Avenue,
Nacogdoches, Texas, to Stephen F. Austin State University (SFA); and,
WHEREAS, SFA desires to purchase his property as part of the institutional master plan
for property acquisition in that area;
NOW THEREFORE Mr. Harkrider and SFA sign this letter of intent to memorialize the
terms and conditions of this sale/purchase.
SFA agrees to carry forward a recommendation to purchase the referenced property to its
Board of Regents at its January 2000 meeting. Final approval for purchase of real property is
vested with the Board of Regents, subject to approval by the Texas Higher Education
Coordinating Board and other statutory purchasing requirements, as applicable. Every effort will
be made to expedite closing on the sale as soon as possible upon approval.
Allocation of transaction fees and costs for closing on the property sale shall be
apportioned as follows:
As a condition of sale, Mr. Harkrider will be given a lease to reside in the home through
his 90th birthday in October 2001, for a total sum of one dollar ($1.00). A lease agreement as
such would be signed and attached to the sale agreement. Basic provisions of the lease would
include the following conditions: SFA would be responsible for major repairs and maintenance
which cost over five hundred dollars ($ 500.00) during the lease term; SFA would insure or self-insure
the structures themselves, but not the contents; should the house become uninhabitable
due to fire or other causes, SFA would be under no obligation to provide housing for Mr.
Harkrider and the lease would automatically terminate; no caregivers, caretakers, family
members or other persons besides Mr. and Mrs. Harkrider may occupy the house or garage
OFFICE OF THE PRESIDENT
P.O. Box 6078, SFA Station • Nacogdoches, Texas 75962-6078 • Office: (409) 468-2201
apartment as residents; Mr. Harkrider will be responsible for keeping the property in good order,
including maintenance under five hundred dollars ($ 500.00), yard work, etc., during the duration
of his lease.
The agreed price of sale/purchase is $141,800, as appraised on November 9, 1999, by
Robert Hough.
While this letter of intent is not a legally binding sale/purchase contract, it is the
memorialized agreement of the parties this day of January, 2000.
Mr. J.D. Harkrider Dr- Roland K. Smith
Interim President
1 1
Appendix No. 4
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 University's investment policy
and strategy must be annually reviewed by the governing board of the institution; and
WHEREAS, the law also required the governing body to adopt a written instrument stating that it
has reviewed the investment policy and strategy; and
NOW THEREFORE BE IT RESOLVED that the Board of Regents has reviewed and adpoted
the investment policies and strategies of Stephen F. Austin State University.
BE IT FURTHER RESOLVED that a copy of this resolution be spread upon the minutes of the
January 25,2000, meeting of the Board.
THE BOARD OJP REGENTS, STEPHEN F. AUSTIN STATE UNIVERSITY
Penny Butler
R.A. Brookshire, Vice Chair Mike Enoch
Pattye C#eer, Secretary Gary Lopez
Mike Wilhite
12
Appendix No. 5
Policies for Board Review
January 25,2000
13
14
This page intentionally left blank.
15
This page intentionally left blank.
16
Assessment of Institutional Effectiveness NEW
Original Implementation: Unpublished
Last Revision: January 25,2000
It is the policy of Stephen F. Austin State University to engage in systematic, broad-based,
interrelated, and appropriate planning for and evaluation of its educational
activities and of its administrative and educational support services. Annually, each unit
of the institution will submit two institutional effectiveness documents:
1. A plan for the year to come specifying the unit's goals and objectives for that year,
and describing how achievement of objectives is to be measured or assessed. The
goals of the unit must be consistent with the University's mission and with the
unit's own mission.
2. A report covering the preceding year specifying the results of assessment of the
unit's stated objectives for that year and detailing what changes and improvements
have resulted from that assessment activity.
3. Each of these documents should be sent through the appropriate supervisory
channel to the Vice President responsible for the unit. Vice Presidents will
forward copies to the Office of Institutional Research.
The format of these documents may be specified by the Vice President for Academic
Affairs.
Source of Authority: President
Cross Reference: None
Contact for Revision: President
Forms: None
17
Budget Control New
Original Implementation: January 25, 2000
Last Revision: None
The primary responsibility for budget control resides with each account manager.
Secondly, the department head or supervisor of each account manager is responsible for
requiring sound budget practices.
The Director of Financial Services will monitor current and plant funds accounts,
excluding restricted contract and grant funds within the current funds category. If a
department's expenditures exceed its budget, the Director of Financial Services will
notify the department to process a budget transfer, fund transfer, or expenditure transfer.
The Purchasing system provides a budget check for funds when a department submits a
requisition for a product or service. If the requisition exceeds available funds in the
account, the Director of Financial Services may authorize the expenditure, pending a
budget or funds transfer.
Source of Authority: Vice President for Business Affairs
Cross Reference: Departmental Accounting Responsibilities Policy, Index C-l 1
Contact for Revision: Director of Financial Services
Forms: None
18
Residence Requirement New
Original Implementation: January 25, 2000
Last Revision: None
The term "In residence" includes all of the following types of courses: on-campus; off-campus;
distance education; field -based; practicum; internship; and for the masters
degree, thesis courses. Extension courses are not considered in-residence and do not
count toward residence requirements. Only courses offered by SFASU may be counted
toward in-residence requirements.
Undergraduate Degree Programs
Undergraduate degrees require a minimum of 42 semester hours in-residence, 36 of
which must be advanced work (300-499).
First majors consist of at least 30 semester hours but not more than 36 hours and must
include at least 18 hours advanced work. At least 12 of these advanced hours must be in-residence.
A second major must consist of at least 24 semester hours, of which 12 must be
advanced, in-residence courses.
An academic minor consists of from 18-23 semester hours with at least 9 hours of
advanced courses, six of which must be in-residence.
Masters Degree Programs
Masters degrees require a minimum of 24 semester hours in-residence, including at least
half of the work in both the major and the minor.*
Advanced Graduate Studies courses (575 and 576) may be counted toward residence
requirements.
Doctoral Degree Programs
Doctoral programs must include a sufficient amount of residence courses on the main
campus to equal a minimum of one academic year of study.
* Adoption of this policy revokes the existing policy that a minimum of 12 semester hours
be completed on campus.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Vice President for Academic Affairs
FORMS: None
19
Semester Grades New
Original Implementation: January 25,2000
Last Revision: none
I. Recorded Grades
A student's grades are determined by daily work, oral and written quizzes, and final examination.
Faculty members may use a variety of factors including class attendance to establish a final grade
for the course. (See Policy Statement A-10). A grade of A indicates excellent; B, good; C, average;
D, passing; F, failure; WH, incomplete or grade withheld; WF, withdrew failing; WP, withdrew
passing. WP and WF are assigned only when a student has withdrawn from the University after
mid-semester or with special approval of the student's academic dean. No grade can be taken from
the record unless put there by mistake. Specified courses are graded on a pass (P)/fail (F) system
with no other grades awarded. A student who makes an F can get credit only by repeating the work.
A student who desires to repeat courses in order to improve his/her GPA at SFA must repeat those
courses at SFA.
II. Withheld Grades
Ordinarily, at the discretion of the instructor of record and with the approval of the department chair,
a grade of WH will be assigned only if the student cannot complete the course work because of
unavoidable circumstances. Students must complete the work within one calendar year from the end
of the semester in which they receive a WH, or the grade automatically becomes an F.
HI. Grade Point Average
A grade of A gives the student four grade points per semester hour; B, three grade points; C, two
grade points; D, one grade point; and F, WH, WF, and WP, no grade points. The grade point
average (GPA) is determined by dividing the sum of the grade points earned at SFA by the total
number of hours attempted at SFA, excluding P hours. (See below for special exceptions.)
An undergraduate student who desires to repeat courses in order to improve his/her grade point
average at SFA must repeat those courses at Stephen F. Austin State University. The following
rules apply:
A. For any course that is repeated once at SFA, the higher of the two grades will be used to
determine the GPA.
B. If a course is repeated more than once at SFA, all grades earned for that course will be
used to determine the GPA. Credit hours for courses taken at other institutions to replace
credit hours earned at SFA may be used to meet graduation credit hour requirements, but
grades from transferred courses will not change the GPA based on courses taken at SFA.
Only grades earned at SFA will be used for calculating GPA.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: General and Graduate Bulletins, Policy A-10
CONTACT FOR REVISION: Vice President for Academic Affairs
FORMS: None
20
Vendor Tax Status Verification New
Original Implementation Date: January 25, 2000
Last Revision Date: None
Stephen F. Austin State University will not "contract" with a vendor or issue payment to any
vendor who is delinquent in the payment of state and local sales or use taxes, whose franchise tax
status is not in good standing, or who owes the State of Texas money for any other reason.
As defined by the State Comptroller in Notice to State Agencies #FM00-35, dated 12/2/99, a
"contract" is a commitment of agency funds for the purchase of goods or services. The vendor's
tax status must be verified for each individual purchase or contract BEFORE committing funds
on behalf of the University. Any vendor who is found to be "not in good standing" or "on hold"
is not eligible to receive the proposed "contract".
It will be the responsibility of the department involved in committing funds on behalf of
the University to insure that tax status is verified BEFORE COMMITTING FUNDS ON
BEHALF OF THE UNIVERSITY. The following types of transactions are identified by the
department that is involved in committing funds. Please take steps to initiate this procedure:
PURCHASING
-standing orders
-purchaser orders issued by purchasing
BOOKSTORE PURCHASES
-bookstore
LIBRARY BOOK PURCHASES
-library
STONE FORT MUSEUM PURCHASES (any that do not go through Purchasing)
-stone fort
END USER DEPARTMENT
-voucher purchases (excluding membership, registration, notary bonds, settlement agreements and
agency purchases)
-local purchase authorization (LPA) purchases
-credit card purchases exceeding $150
-purchases made by an employee for which reimbursement will be sought (tax status of the
vendor from whom the purchase is made must be checked)
-requisitions for which a telephone po is issued
-requisitions for goods or services already ordered (should not be happening anyway)
21
If any end user department does not wish to verify tax status before committing funds on
behalf of the University, then the purchase must be completed by the Purchasing Office.
The document created (LPA, requisition, credit card transaction log, voucher, purchase order,
etc.) by the department involved in committing funds on behalf of the University must include
one of the following certifications. See Verification Instructions to determine when to use each
statement.
"I certify that the vendor tax status was verified on (date) and the
vendor was found to be fin good standing1 and 'not on hold1."
"I certify that the vendor tax status was checked on (date) and the
vendor, who provides goods or services in Texas, is not a corporation and was not found."
"I certify that the vendor tax status was checked on (date) and the
vendor, whose place of business is not in Texas, has provided the attached certification."
In addition to checking tax status prior to making a commitment of funds, the University
Controller's office will verify tax status prior to making payment. Departments will be notified
that payment will not be made to any vendors found to be "not in good standing" or "on hold".
If departments are found to be making repeated requests for payment (i.e., voucher, lpa, credit
card, phone po, etc.) for vendors that Accounts Payable finds to be "not in good standing" or "on
hold", the department may have all delegated purchasing authority revoked.
VERIFICATION INSTRUCTIONS
The verification process involves searching for the vendor by vendor number and/or name at the
State Comptroller's web-site created specifically for verification of vendor tax status. The
internet address is http://open.cpa.state.tx.us/vendor/tpsearchl.html.
If a vendor number search is unsuccessful, the department must attempt a vendor name search to
insure due diligence in verifying vendor tax status. The vendor number can be obtained from the
FRS database, screen 203 or by obtaining the vendor's State of Texas sales tax #.
If the vendor number or vendor name search indicates that the vendor is "in good
standing" and is "not on hold", proceed with the purchase in accordance with University
policies and procedures. Add the following statement to the document being used to
commit funds on behalf of the University; i.e., lpa, requisition, credit card transactions
log, etc.
"I certify that the vendor tax status was verified on (date) and the
vendor was found to be 'in good standing' and 'not on hold'."
22
If the search indicates that the vendor is "not in good standing" or is "on hold", the
"contract" and commitment of funds CAN NOT BE MADE. The department should take
the following steps to complete the purchase.
1. The vendor should be contacted and informed that the purchase or payment cannot be made
until the State Comptrollers office recognizes the vendor as "in good standing".
Two actions may be taken:
A. the vendor may indicate that his/her company is in good standing and the Comptroller's web
site has not been updated since the correction was made. In this case, the State Comptroller's
office must be contacted for an official verification of good standing;. When received, complete
the purchase in accordance with University policy and procedure an add the following statement
to the document being used to commit funds on behalf of the University; i.e., lpa, requisition,
credit card transactions log, etc.
"I certify that the vendor tax status was verified on (date) and the
vendor was found to be fin good standing1 and !not on hold1."
B. the vendor may be given an adequate period of time to rectify his/her tax status from "not in
good standing" and/or "on hold" to "in good standing" and/or "not on hold". If the situation is
corrected, the State Comptroller must be contacted for verification of good standing.. When
received, complete the purchase in accordance with University policy and procedure and add the
following statement to the document being used to commit funds on behalf of the University; i.e.,
lpa, requisition, credit card transactions log, etc.
"I certify that the vendor tax status was verified on (date) and the
vendor was found to be fin good standing1 and not fon hold1."
NOTE: if the situation is not corrected, the department may choose to allow the vendor a longer
period of time or may contract with another vendor. If the department chooses to contract with
another vendor, the verification process starts over.
If the search returns no matches by either vendor number or vendor name, the "contract"
and commitment of funds MAY OR MAY NOT BE COMPLETED. The department should
take the following steps to complete the purchase.
1. If the vendor's principal place of business is in the state of Texas AND if the vendor is not a
corporation selling tangible personal property or services that are subject to state and local sales
and use taxes, the department may proceed with the purchase in accordance with University
policies and procedures.. Add the following statement to the document being used to commit
funds on behalf of the University; i.e., lpa, requisition, credit card transactions log, etc.
"I certify that the vendor tax status was checked on (date) and the
vendor, who provides goods or services in Texas, is not a corporation and was not found."
23
2. If the vendor's principal place of business is not in the state of Texas, the department must
secure from the vendor a certification with a signed and dated statement that the vendor "does not
sell tangible personal property or services that are subject to the state and local sales and use
taxes".
A. if the vendor produces the certification, the department may proceed with placing the order in
accordance with University policies and procedures. Add the following statement to the
document being used to commit fund on behalf of the University; i.e., lpa, requisition, credit card
transactions log, etc. and attach the certification received from the vendor.
"I certify that the vendor tax status was checked on (date) and the
vendor, whose place of business is not in Texas, has provided the attached certification."
B. if the vendor fails to produce the certification, the department may request assistance from
the University Controller's office in having the vendor set up in the State Comptroller's database.
If the department chooses to contract with another vendor, the verification process starts over.
SEARCH INSTRUCTIONS
Be sure to enter the business name or business location name exactly as it appears in the State
Comptroller's system. Otherwise you will get the message "Not on File" or "No Data Found".
If you get one of these messages and you believe it is an error, or if you are not sure of the exact
business or business location name, try entering variations of the name to locate the entity in the
system. The internet address is http://open.cpa.state.tx.us/vendor/tpsearchl.html. If the vendor
exists in SFA's FRS database, the vendor number search is the most accurate. The vendor
number is displayed on Screen 203.
SEARCH OPTION 1: SEARCH BY VENDOR NUMBER
Enter the Comptroller's 11-digit taxpayer number, which begins with a 1, 2, or 3, or enter the
vendor number.
If the 11-digit taxpayer or vendor number is not available, enter either the nine-digit social
security number (SSN) or federal employer identification number (FEI).
If the search is successful, the system will display the parent company's name. (The parent
company name may not be familiar to your agency, if you work with a specific location or outlet
of the parent company.)
If the response you receive is "Not on File" or "No Data Found," and you have ruled out the two
options mentioned in the notes above, then use Search Option 2.
24
SEARCH OPTION 2 : SEARCH BY BUSINESS NAME
Use this search option to look for a corporation or an individual. Enter the name, or part of the
name, of the parent business. Do not enter punctuation such as commas or periods. If the
vendor you are looking for is not a corporation, enter the individual's first, middle, and last name.
If the name you are searching for is an outlet or location name and you do not have the
corporation or parent company's name, use Search Option 3.
Depending how exact your inquiry is, the system may display more than one vendor. It has been
designed to provide names and addresses to assist you in finding a specific vendor. Click on the
entity or individual name for which you want to receive tax information.
If the system's response is "Not on File" or "No Data Found," it means the entity is not on the
Comptroller's taxpayer database. If the vendor is a corporation and is located in Texas or
conducts business in Texas, it should by law be on the taxpayer database. If the corporation is
not on the database, seek assistance from the University Controller's office. The agency should
not conduct business with the entity until it is in good standing under state tax law with the
Comptroller's office.
SEARCH OPTION 3 : SEARCH BY BUSINESS LOCATION
Use this search option if you do not know the master or legal name of the vendor, but do know
an outlet or location name, such as a DBA (doing business as) or specific business location. For
example, an entity's corporation name may be "XYZ Distributing Company." However, your
agency does business with one of its outlets, "Half Price Gadgets." This search option enables
you to look for the corporation using the outlet name, "Half Price Gadgets."
Again, you may receive more than one vendor name. The system provides the business name
and the associated individual's name to assist you in making your choice. Click on the business
location name to receive tax information for that entity.
Source of Authority: Texas Government Code, Title 3, Subtitle C, Chapter 403.055; President;
Vice President for Business Affairs
Cross Reference: None
Contact for Revision: Director of Purchasing and Inventory
Forms: None
25
Academic Programs, Approval of A-4
Academic Programs and Curricula,
Review and Approval
Original Implementation: October 17,1978
Last Revision: April 21, 1998 January 25, 2000
Each academic department must engage in continuous review of its programs and curricula.
Each department will conclude a formal review of programs and curricula every three to five
years according to a schedule proposed by the dean and department chair and approved by the
Vice President for Academic Affairs.
All new undergraduate or graduate majors, minors, concentrations, and programs, and all
changes in such programs must be approved by the dean of the appropriate college in question
and by the Vice President for Academic Affairs. Prior to granting his or her approval the dean
will secure the recommendations of individuals or bodies as prescribed by the policies of the
particular college, and, in the case of graduate offerings, the Vice President for Academic
Affairs will secure the recommendation of the University Graduate Council.
New or altered undergraduate or graduate majors and teaching certificate endorsements
additionally require approval by the President and the Board of Regents. When required by law
or regulation, additional approval by the Texas Higher Education Coordinating Board, the
Texas Education Agency, the State Board for Educator Certification, the Southern Association of
Colleges and Schools, or other appropriate outside agencies will be secured before proposed
innovations or changes are implemented.
All new undergraduate courses or course revisions require in addition to the approval of the
appropriate college dean and the Vice President for Academic Affairs, the recommendation of
the University Curriculum Committee, and all new graduate courses or course revisions similarly
require the recommendation of the University Graduate Council.
Source of Authority: Vice President for Academic Affairs
Cross Reference: None
Contact for Revision: Vice President for Academic Affairs
Forms: None
26
Add/Drop A-5
Original Implementation: April 27,1986
Last Revision: October M. 1997January 25. 2000
Students may add courses through the 2nd class day during the summer semesters and
through the 4th class day during the fall or spring semesters. Academic Department
Chairs may reconcile class schedules through the official reporting date. Students may
drop classes through five working days past mid-semester or mid-session as applicable.
Essentially, aA student will not be allowed to drop a course after these datesmid-semester
for full semester courses or mid session for partial semester courses, unless he or she
withdraws from the University or can secure the dean's permission by demonstrating
some exceptional circumstance.
The following applies:
1. Through the official reporting date, withdrawals or a course dropped will not be
recorded on a student's transcript.
2. After the official reporting date te-through five working days past mid-term for full
semester courses or mid-session for partial semester courses, a drop, as well as a
withdrawal, will be noted as a " W" on the transcript.
3. Beginning on the sixth working day Aafter mid-term for full semester courses or mid- |
session for partial semester courses, a drop will be permitted only with the permission of
the student's dean and will be noted as a "WP" if the student is passing at the time or a
"WF" if the student is failing at the time. A withdrawal will also be noted as a "WP" or
MWF" on the transcript.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: General Bulletin, Graduate Bulletin, Schedule of Classes
CONTACT FOR REVISION: Registrar
FORMS: None
27
Commencement A-ll
Original Implementation: February, 1984
Last Revision: January 20.1998Januarv 25. 2000
The arrangements for commencement ceremonies to be held at the end of the fall, spring,
and summer semesters are the responsibility of the office of the Registrar except for the
selection of and arrangements for a speaker, which are the responsibility of the President.
Because of commencement's importance as a symbol of the University's core function,
faculty members are encouraged to attend.
In order to have adequate representation of faculty at commencement, each permanent
member of the faculty is obliged to attend at least one commencement each year; for
faculty teaching in the second summer term that one obligatory attendance is the August
ceremony. Department chairs are responsible for assuring faculty members' compliance
with this provision.
Source of Authority: Vice President for Academic Affairs
Cross Reference: None
Contact for Revision: Vice President for Academic Affairs
Forms: None
28
Graduate Assistantships Index A-20
Original Implementation: Unpublished Page 1 of 1
Last Revision: January 20, 1998 January 25, 2000
To be eligible for a graduate assistantship, a student must have clear or provisional
admission to the graduate school and the department and be in good academic standing.
A graduate assistant may be assigned to research projects or to teaching. Graduate
assistants assigned at the 50% rate are expected to serve 20 clock hours or equivalent
teaching assignment per week in the department to which they are assigned. The
department chair is responsible for the selection, training, assignment of duties and
supervision of the graduate assistants in his/her department.
A graduate assistant must be enrolled for at least nine hours of graduate course work in
the fall or spring semesters and three semester hours in a summer session. Should a
graduate assistant fall below the nine or three hour minimum for a semester or summer
session, he or she will not be eligible for an assistantship the following semester.
A student must be approved for an assistantship by the Chair of the Department, the
Academic Dean, the Director of Personnel Services, the Budget Director, and the Associate
Vice President for Graduate Studies and Research. The appointment as a graduate
assistant is completed only after the candidate has attended a mandatory new employee
orientation session in the Office of Personnel Services.
Except for students in the Ed.D., -BrF. Ph.D. and M.F.A. programs, a student may receive
an assistantship for no more than four long semesters.
Source of Authority: Vice President for Academic Affairs
Cross Reference: Graduate Bulletin
Contact for Revision: Associate Vice President for Graduate Studies and Research
Forms: Application Form for Graduate Assistantships (available from the office of the
Chair of the academic department).
29
INTERLIBRARY LOAN A-23
Original Implementation: March, 1985
Last Revision: January 25, 2000 October 11, 1997
The Interlibrary Loan program supplements local library resources by providing access to
materials not available in the Steen library collection. The following statements regulate
interlibrary loan activities.
Eligibility for Borrowing. Interlibrary Loan service is extended to SFA faculty, staff, and
students, generally on a non-fee basis with the following provision: patrons must exhaust the
limits of the local collection before requesting interlibrary loan services.
Interlibrary Loan service is extended to SFA faculty, staff, and students, generally on a non fee
basis with the following provision: patrons muGt exhaust the limits of the local collection before
requesting interlibrary loan sendees.
Faculty members, including university associates, may request materials related to their own
professional scholarly research or to course-related subject matter.
Graduate students may request materials pertinent to graduate research.
Undergraduate student may request materials pertinent to their assigned coursework under any of
the following conditions:
Item(s) are held in the collections of the East Texas Consortium of Libraries.
Items(s) are held in the collections of the East Texas Consortium of Libraries.
Requested item(s) are approved by the appropriate subject librarian or reference librarian.
Instructors have provided class exemptions through the approval of an Access Services librarian.
Service is available to library users not affiliated with SFASU on a cost recovery basis with
additional charges for staff time and university administrative overhead. Service is available-te
library users not affiliated with SFASU on a contractual basis. The contract will be based on cost
recovery with additional charges for university overheadr Service is available to library users not
affiliated with SFASU on a contractual basis. The contract will be based on cost recovery with
additional charges for university overhead. Therefore, patrons not affiliated with SFASU should
normally contact their local public library for interlibrary loan requests.
Any type of library materials may be borrowed through interlibrary loan, but the following types
are usually not available: basic reference books, rare books, most dissertations completed at U.S.
universities, books owned by this library which are temporarily in use, audiovisual materials.
Procedural Rules. Requests should be submitted on forms specified by the library either
through the Access Services Department or through the.library web pages. Full bibliographic
30
information, including published source of reference, is necessary for each item requested. Forms
submitted without adequate information will be returned to the person requesting the item.
All conditions of use imposed by the lending library on items borrowed are to be strictly
observed.
Borrowed materials are circulated from and returned to Access Services Department. Photocopies
received Materials borrowed Materials borrowed for faculty will be delivered to their University
offices.
Ordinarily, renewals on items borrowed should not be requested. In cases when a renewal is
requested, the request must be made not less than four days before the loan is due to be returned.
Requests are acted on in the chronological order of receipt. However, rush requests will be
honored to the extent resources permit.
Abuse of ILL regulations by a patron may result in the forfeiture of ILL borrowing privileges.
(Examples: taking Library Use Only material out of the Library, disregarding loan restrictions,
repeated failure to return material by due date).
ILL service may be refused any patron whose Steen Library borrowing privileges are blocked.
The right is reserved to refuse to accept or process any interlibrary loan request if it appears
fulfillment of the request would involve violation of the copyright law. Steen Library abides by
the AMIGOS and national interlibrary loan codes, and maintains such records of interlibrary loan
transactions as required by law.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Library Director Director of University Libraries
FORMS: None
31
Library Gifts A-25
Original Implementation: March, 1982
Last Revision: January 25, 2000 October 11, 1997
The purpose of the Library's Ggift and Exchange ^program is to supplement library
acquisitions by accepting materials and/or monetary donations for the purchase of library
materials.
Accepting Gifts. It is the policy of the University that gifts of materials be accepted only
with the understanding that upon receipt the Library reserves the right to determine their
retention, cataloging treatment, and other considerations related to their use or
disposition.
Factors which will be considered in deciding whether to accept a gift include the needs of
the collection, technical processing costs, physical condition, location and space,
maintenance requirements and accompanying restrictions.
Major Gifts. The acceptance of major gifts will be negotiated and authorized by the
Library Director the Director of University Libraries and the Vice President for
University Advancement.
Restricted Gifts. Gifts that carry restrictions will not be accepted unless specifically
authorized by the Library Director Director of University Libraries and the Vice
President for University Advancement.
Appraisals. The Library does not appraise gifts., and in general, t 7he cost of an outside
appraisal is borne by the donor. The Library will assist tho donor in arranging for an
outside appraisal at the donor's request.
Acknowledgements. The Director of Libraries Library Director will acknowledge
outstanding gifts and notify the Vice President for University Advancement of any gifts
of materials valued at $100 or more.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Library Director Director of University Libraries
FORMS: None
32
Library Lending A-26
Original Implementation: February 11, 1981
Last Revision: January 25, 2000 October 14, 1997
Persons who hold University identification cards or Nacogdoches Public Library cards are
eligible to borrow books from Steen Library, either directly or through a courier service which is
run once a day during the week while University classes are in session, when both libraries are
open. Other individuals who do not hold either university IDs or Nacogodoches Public Library
cards may be issued university library cards. Social security numbers or a unique identification
number must be used and an official picture identification must be furnished, e.g., driver's
license, before a library card may be issued, must bo provided and drivers1 licenses must be
furnished for identification.
Loan periods vary by borrower category and status of material borrowed and are set separately
by each library. Borrowers are responsible for all materials borrowed from either library,
including the payment of overdue fines, replacement and repair costs for lost or damaged
materials. Borrowing privileges are suspended at both libraries for overdue materials or unpaid
charges at either library.
All materials borrowed from Steen Library are subject to immediate recall when
requested by faculty for placement in the Reserve Collection or after three
weeks from checkout when requested by any patron for other reasons.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Library Director Director of University Libraries
FORMS: None
33
LIBRARY PUBLIC ADDRESS SYSTEM A-29
Original Implementation: September 29, 1987
Last Revision: December 9. 1999 October 14. 1997
The Library public address system is used to quickly disseminate information
of immediate interest to all people within the building.
The P. A. system is used to announce the closing of the Library, so that users
may have time to check out books before the building closes.
The P. A. is used to make emergency announcements, such as the evacuation
of the building.
Paging Requests. All requests to page must be referred to the University Police Department.
The University Police dispatcher makes the judgment if the page is for an
emergency.
The University Police dispatcher phones Circulation to authorize a page.
SOURCE OF AUTHORITY: Vice President for Academic Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Library Director Director of University Libraric
FORMS: None
34
Semester Grades Grade Reporting A-41
Original Implementation: January, 1983 Page 1 of 1
Last Revision: July 6,1988 January 25,2000
On the first day of final examinations of each semester or summer term, the Registrar will provide
official grade report forms for each class to departmental offices. It is the responsibility of each
instructor to record the appropriate grade for each student listed on the grade sheet by entering the
grade into the electronic data base for student records. Faculty shall complete grade entry by 12:00
noon on the third working day following the last scheduled final examination.
The Registrar will provide verification grade sheets for each class to departmental offices. It is the
responsibility of each instructor to verify accuracy of grade entry and to notify the Registrar of any
discrepancies. The Registrar will file the original copy of verification grade sheets with other
academic records.
Grades may be posted on bulletin boards or other designated places only with the written
permission of the student and then must be done so in a manner that an individual student's grade
can not be identified by others. Students may use a touchtone phone or logon to the University
Web Site to obtain their grades by phone or electronically as soon as they are added to the
electronic data base.
Source of Authority: Buckley-Pell Amendment, President, Vice President for Academic
Affairs
CROSS REFERENCE: None
CONTACT FOR REVISION: Vice President for Academic Affairs
FORMS: None
35
Property Responsibility with Change in Department Head B-14
Original Implementation: January 1, 1985
Last Revision: January 4925,49992000
Definition: Verification of property includes documenting that all items are accounted for
and are in good condition.
OUT-GOING DEPARTMENT HEAD
When there is an administrative change in department heads, the out-going department
head (interim or permanent) must request from the Property Manager a current list of
inventory items for which he/she is accountable. Verification of all items must be
completed and the Change in Department Head form signed by the out-going department
head within 30 days prior to the individual's last day.
Verification of inventory responsibility is part of the Personnel check out procedure.
IN-COMING DEPARTMENT HEAD
The incoming department head (interim or permanent) must request from the Property
Manager a current list of inventory items for which he/she will be accountable.
Verification of all items must be completed and the Change In Department Head form
signed by the incoming department head within 30 days of the individual's first day.
Source Of Authority: Texas Government Code Ann. Sec. 403.27 l(a) through 403.278;
President; Vice President for Business Affairs
Cross Reference: None
Contact For Revision: Director of Purchasing and Inventory
Forms: Change In Department Head (available from Purchasing and Inventory
36
Adjustment of Inventory Records C-l
Original Implementation: January 1, 1985
Last Revision: October 20. 1998January 25, 2000
When the need arises to alter the description or change the location of an item on a
departmental inventory, the person responsible for the department's inventory may
sendmust initiate a memo or email to the Property Manager listing the inventory
number(s), description and the change(s) desired.
The following fields may-must be updated throughout the year as changes occur:
Responsible Department Name - this will only be changed for 1 of 3 reasons:
a!_through means of a transfer form-when property is transferred between depailments
b)ef=-if it is determined that an error was made in the original entry
c) department has a name change
Building and Room Location
End User Name
Department Chair Name
Serial Number - this will only be changed when it is determined that an error was made
in the original entry or that original equipment has been returned to the company and
replaced.
Description - this will only be changed when it is determined that the equipment has not
changed but that a more accurate description is needed to facilitate the physical inventory
process^
Source of Authority: Vice President for Business Affairs
Cross Reference: None
Contact for Revision: Director of Purchasing and Inventory
Forms: None
37
Food Purchases C-13
Original Implementation: April 13, 1988
Last Revision: April 29. 1995January 25, 2000
With the exception of food supplies purchased for travel, educational research or
laboratory purposes, the only funds which may be expended for food and/or beverage
shall be from Auxiliary, Designated, or Current Restricted Accounts.
1.Expenditure of these funds for such purposes must serve a legitimate public purpose
or furthers the educational function of the University.
2.Current Restricted funds may be used when the restrictions of the account include an
authorization to purchase these items.
The Purchase Requisition/Payment Voucher must indicate the time and place of the
function and must identify the direct beneficiaries of the function and must be approved
by appropriate administrative personnel. Purchase of alcoholic beverages must be
approved in advance by the appropriate vice president. The following statement must be
typed on the Purchase Requisition/Payment Voucher and must be certified as true and
correct by the account manager.
"I hereby certify under penalty of law that the expenditure of funds for the purchase of
food and beverage is necessary for the completion of the functions of this department,
qualifies as a legitimate public purpose, or that the educational function of the University
is well served thereby."
State funds and funds under the control of the Intercollegiate Athletic Office may not be
used to purchase alcoholic beverages.
Source of Authority: Board of Regents, President
Cross Reference: General Appropriations Act, 73rd Legislature
Contact for Revision: President
Forms: None
38
Foreign Travel C-14
Original Implementation: Unpublished
Last Revision: July 27. 1.999January 25, 2000
Travel for official University business by Stephen F. Austin State University employees
outside the United States or its possessions, Canada, and Mexico, for which any
reimbursement is received, requires advance approval of the Governor and the University
President (or the appropriate vice president in the President's absence). This applies
rpgnrHiftnr, of the source of funds, ovon grant, local or gift funds. Additionally, travel for
official University business bv Stephen F. Austin State University emplovees outside the
United States or its possessions, Canada, and Mexico, which involves the use of state
funds requires advance approval from the Govenor of Texas.
To be approved, foreign travel must be directly related to the University's mission and
must require a duty that cannot be performed without the travel.
A completed "Travel Request" form must be routed through the appropriate
administrative channels in sufficient time to be approved by the Office of the President
prior to the date of departure. When required, A a copy of the Governor's approval must
be attached to the Travel Request when it is initially submitted to the President.
Source of Authority: Sec. 660.024, Tx Gov Code, VTCS, President, Sec. 9-5.10(h),
General Appropriations Act, 76th Texas Legislature
Cross Reference: State of Texas Travel Allowance Guide
Contact for Revision: President
Forms: Travel Request, see Index C-37-;
39
Historically Underutilized Businesses C-16.5
Original Implementation: August 2, 1994
Last Revision: April 20. 1999 January 25. 2000
In accordance with Texas Government Code, Title 10, Subtitle D, Chapter 2161, and 1
Texas Administrative Code sections 111.11 through 111 .24, Stephen F. Austin State
University will attempt to do business with Historically Underutilized Businesses (HUB),
as defined by law, in all purchase situations.
GOALS
Stephen F. Austin State University recognizes the State's goals of placing qualified
percentages of total contracts with HUBs. The University will make a good faith effort to
utilize HUBs in all contracts for heavy construction other than building contracts,
building construction, special trade construction, professional services, other services,
and commodities purchases.
The University's specific commodity goals have been adjusted to eliminate "overutilized"
HUBs and are as follows:
Heavy Construction other than building contract 6.6%
Building construction, including general contractors and operative
builders contracts 25.1 %
Special trade construction contracts 47.0%
Professional Services contracts 18.1%
Other Services contracts 33.0%
Commodities contracts 11.5%
The University will seek to identify and advise qualified minority vendors of the State's
certification process.
The University will establish educational training for personnel making procurement
decisions to assure compliance with stated objectives.
The University will gather HUB data to comply with the reporting requirements of Texas
Government Code, Title 10, Subtitle D, Chapter 2161 and 1 Texas Administrative Code
sections 111.11 through 111.24
40
PROGRAMS
Requisitions over $2,000, but less than $10,000, and not subject to a bidding exemption;
i.e., sole source, emergency, etc., will require at least three informal bids, including two
from certified HUB vendors.
Requisitions over $10,000, and not subject to a bidding exemption; i.e., sole source,
emergency, etc., will require at least three formal bids, including two from certified HUB
vendors.
A minimum of 2 certified HUB vendors will be included in all catalog purchase
negotiations over $2000.
The Texas State Business Daily electronic marketplace posting will be voluntarily
reduced from $25.000 to $10.000 excluding orders for which the Purchasing department
determines that no benefit will be gained by posting to the Marketplace.
All proposed requisitions will be purchased in reasonable lots in keeping with industry
standards and competitive bid requirements. Specifications, terms, and conditions will be
written clearly and will state only reasonable and necessary contract requirements that
reflect the University's actual requirements. In addition, only reasonable, realistic, or
required delivery schedules will be specified.
The University Purchasing Department will host an annual vendor fair every 18 months
at which local area vendors across the state will be invited to participate. Vendors will be
instructed regarding how to do business with the University. The HUB certification
process will be explained and the GSC web siteapplication form- information and other
related information will be distributed to all HUB-vendors. HUB vendors identified at
the vendor fair will be provided application forms upon request if their computer access
is limited.
The University Purchasing Department will attend and participate in economic
opportunity forums.
Bond and insurance requirements for service and construction contracts will be designed
in such a way as to reasonably permit more than one business to perform the work.
41
All contractors will be required to comply with 1 TAC Section 111.14 regarding
subcontracting and HUB good faith effort requirements. Accordingly, the University will
provide contractors with a referenced list of certified HUBs for subcontracting.
The University Purchasing Department will utilize the HUB directory provided by the
GSC on-line in selecting potential suppliers and subcontractors for commodities,
services, and construction contracts.
The University Purchasing Department will publish a regular newsletter and/or conduct
aaftual-training seminars for all campus departments, who are involved in catalog
purchase negotiations and small purchases up to $10,000.
The University Purchasing Department will analyze expenditures by vendor in order
from the largest to the smallest every 18^24 months and produce a mail piece to notify
vendors with expenditures exceeding $50,000 of the State's HUB certification process.
The University Purchasing Department will send a mail piece to all new vendors added to
the FRS vendor database advising them of the State's HUB certification process.
Source of Authority: Vice President for Business Affairs
Cross Reference: Texas Government Code, Title 10, Subtitle D, Chapter 2161; and
Texas Administrative Code, sections 111.11 through 111.24
Contact for Revision: Director of Purchasing and Inventory
Forms: None
42
Purchase Requisition C-30
Original Implementation: Unpublished
Last Revision: April 21. 1998January 25. 2000
The "Purchase Requisition11 may be generated in one of two ways:
1. On-line Requisitions are entered through the FRS System following the
guidelines outlined in the FRS Purchasing Software Manual. Contact the Purchasing
Office for more information if you do not currently have this access.
2. Hard-copy Requisitions are available through the UIS Forms Server on the
SFA Home Page.
URL: www.sfasu.edu
Click on: WelcomeUniversity
Click on: Business Affairs
Click on: SFA Business Forms
Click on: Forms to Fill Out
Click on: Purchase Requisition
Fill in the blanks and click 'Submit' at the bottom of the screen. A completed
form will be generated and may be printed. If you prefer to print a blank form and type,
do not fill in the blanks. Click 'Submit' at the bottom of the screen; a completed blank
form will be generated and may be printed. Mail or fax the completed requisition to
Purchasing.
Items which can be purchased from the same vendor should be grouped on the same
requisition; if from different vendors, the items should be on different requisitions.
If a second page is required to list all items being ordered, you may create another
"Purchase Requisition" noting that it is a continuation or attach additional pages noted as
a continuation.
Source Of Authority: Texas Government Code, Title 10, Subtitle D, Chapters 2151
through 2176; President; Vice President for Business Affairs
Cross Reference: None
Contact For Revision: Director of Purchasing and Inventory
Forms: None
43
Returned Checks C-35
Original Implementation: September 1, 1987
Last Revision: April 15. 1997January 25. 2000
Checks presented to the University will be verified through CheckMate check
verification service prior to acceptance. The University will not accept personal checks
from individuals who have a history of bad checks as recorded by CheckMate.
Checks returned to the University for insufficient funds, payment stopped, or account
closed will be collected by CheckMate. The Business Office shall assess a twenty dollar
($20) fee plus applicable sales tax for each such check. These checks may be collected
by CheckMate or other collection service.
Source of Authority: Federal Fair Debt Collection Practice Act, 15 U.S.C.A.,
sees. 1692-1692o; Texas Debt Collection Act, V.T.C.S., arts. 5069-11.01
et.seq.; President; General Counsel; Vice President for Business Affairs
Cross Reference: None
Contact for Revision: General Counsel, University Controller
Forms: None
44
Special Purchases C-36
Original Implementation: Unpublished
Last Revision: April 20. 1999Januarv 25. 2000
The following items require special consideration for proper processing:
1. Advertising copy (radio spots, newspaper ads, billboards, etc.) should be
submitted to the Director of Public Affairs for approval prior to release (see Policy D-39
University Publications)
2. Agency Account Purchases should be made and submitted for payment on
an SFA Purchase Voucher to Accounts Payable. Agency accounts are subject to state tax.
3. Consultant Contracts, arc to be submitted on a Purchase Requisition (See
Policy C-30) and require the approval of the Vice President for Business Affairs. Specific
limitations exist with regard to the value of consulting services that may bo acquired
without competition. The requisition must state a time frame for the services to be
provided fir, well as the bamr, for calculating reimbursement costs. The rules are numerous
and complicated. Review the Professional Services Policy, C-45 carefully before making
any commitment on behalf of the University.
4. Purchases from Employees. Any payments for SERVICES made to a current
employee or an individual employed during the past 12 months is to be submitted on an
additional compensation request form. Any purchase of GOODS from a current
employee must be submitted through the requisition process and must comply with
Policy C-27 Purchases from Employees.
5. Entertainers. See Professional Services.
6. Food Purchases. All purchases of food must be submitted on a Purchase
Requisition and must be certified by the account manager in accordance with Policy C-13
Food Purchases.
7. Guest Speakers, Lecturers, Instructors., Artists, Musicians. See
Professional Services
8. Insurance. Purchase of insurance is to be submitted on a Purchase
Requisition. As a general rule, payments for insurance may not be made from State
funds. However, specific exceptions may be permitted and/or required. Specific
insurance requirements should be brought to the attention of the Safety and Risk
Management Officer.
9. Lease of Real Property. The rental or lease of real estate requires approval of
the Vice President for Business Affairs. State funded rentals or leases require approval of
the Facilities, Construction, and Space Management Division of the General Services
45
Commission. Such issues as access to the handicapped, fire safety, and the availability of
other space on a competitive basis will be considered.
10. Institutional Memberships in professional organizations require approval
by the appropriate vice president and/or the President. Memberships with subscriptions
should be submitted on a "Purchase Requisition". Other memberships may be processed
on a SFA Purchase Voucher. (See Policy C-17 Institutional Memberships)
11. Moving Expenses is taxable income and should be submitted through the
Payroll Department. (See Policy C-21 Moving Expenses)
12. Printing, University Printing Services is to be utilized to the extent possible
for printing and duplication. All official University publications require editorial approval
prior to printing regardless of the source of printing services. (See Policy D-39 University
Publications)
13. Professional Services, are to be submitted on a Purchase Requisition along
with a contract establishing the time frame of services to be rendered as woll as the basis
for calculating reimbursement costs. Professional Services include guest performers,
speakers, lecturers, instructors, artists, musicians, etc. Some professional services such as
architects, accountants, registered engineers, etc, require prior approval of the Vice
President for Business Affairs, President and/or the Board of Regents. Purchase of those
services is to bo submitted through the Purchase Requisition process. (See Policy C-9
Contracting Authority)Review the Professional Sendees Policy C-45 carefully before
making a commitment on behalf ot the University.
14£. Proprietary Purchases. Purchase requisitions which are submitted for
items to be purchased for a single brand and/or from a single vendor shall include a Sole
Product/Sole Source Justification Form, which is available from the Purchasing
Department. See Policy C-26 Proprietary Purchases.
Source of Authority: Texas Government Code, Title 10, Subtitle D, Chapters 2151
through 2176, 2254 and General Appropriations Act; Board of Regents; Vice President
for Business Affairs; President
Cross Reference: None
Contact for Revision: Director of Purchasing and Inventory
Forms: Purchase Requisition (See Policy C-30 Purchase Requisition); State of Texas
Purchase Voucher (available in University Printing Services); Sole Product/Sole Source
Form (available from Purchasing)
46
Travel Request C-37
Original Implementation: September 1,1988
Last Revision: January 28, 1997Januarv 25.2000
State employees and others authorized to travel on official business of the University
(employees) must obtain permission to do so in advance of the trip by submitting a
Travel Request form, whether or not expenses will be incurred. Members of the Board of
Regents are exempt from the Travel Request requirement.
This policy applies to employees traveling in any capacity unrelated to intercollegiate
athletics. All policies, rules, and regulations related to travel on behalf of or in
connection with intercollegiate athletics are included in the current issue of the
Intercollegiate Athletics Policy Manual.
Aft American ExprcssBank of America Corporate Card is available for eligible travelers
of the University who wish to charge travel expenses. Applications and further
information concerning this program are available in the Controller's Office.
Advance travel funds may be requested with the Travel Request form for persons not
eligible for the Bank of America corporate card, for group travel, and for travel with
particularly unusual circumstances (must be specified). The minimum amount of
advance funds which can be obtained is $100. If advance funds are required, the request
should be received by the Controller's Office at least five (5) working days prior to
departure. Generally, the requested funds will be available at the University Business
Office at least one working day prior to departure. Advance travel funds will be issued by
a check made payable to the individual requesting the funds.
The Travel Request must be initiated and authorized at the departmental level. For
academic departments, the request must be approved by the appropriate dean and
forwarded to the Vice President for Academic Affairs for final approval. For
administrative staff, the Travel Request must be approved through appropriate
administrative channels. It must then be sent to the appropriate vice president or
President for final approval. Partial per diem payments require the President's approval.
After final approval, the request must be routed to the Controller's Office.
Before traveling to Washington, D. C, an employee shall inform the Office of State-
Federal Relations about the timing and purpose of the trip and provide the office with the
name of a person who may be contacted for additional information about the trip. A
form, Report for Stage Agency Travel to Washington, D. C, is available to meet this
requirement.
Before traveling to any foreign country other than Canada or Mexico, an employee shall
obtain advance written approval of the University's President and the Governor. Travel
to any foreign country other than Canada or Mexico with the use of state funds requires
advance written approval from the Govenor of Texas, Refer to Policy C-14 for the
approval requirements and to The State of Texas Travel Allowance Guide for exceptions
to the reimbursement limits.
Source Of Authority: Vice President for Business Affairs
Cross Reference: Policy C-14, State of Texas Travel Allowance Guide
Contact For Revision: Controller
Forms: Travel Request (available in University Printing Services) and Report
for State Agency Travel to Washington, D. C.
Year-End Purchasing C-40
Original Implementation: April 5, 1984
Last Revision: April 15, 1997January 25. 2000
The State fiscal year is September 1 through August 31 and eeftam-the following rules
and regulations apply to end-of-year (EOY) transaction processing.
Consumable/expendable supply items are to be charged to the fiscal year in which they
are delivered. The cost of consumable supplies ordered in one fiscal year and delivered
in the next fiscal year may be charged to the prior year only if the following conditions
exist:
1. delay causing delivery in the later fiscal period was beyond control of the agency;
2. delivery could have reasonably been expected to occur during the fiscal year in which
the order was placed; and
3. the quantity ordered could have been consumed during the fiscal year in which it was
ordered.
Services are to be charged to the fiscal year in which they are delivered.
Capital equipmentetrttey expenditures are to be charged to the fiscal year in which they
are ordered, except that capital outlay expenditures may be charged to the year of
delivery in cases where the order was placed earlier to compensate for unusually long
delivery lead times.
Advance payment of subscriptions are chargeable to the fiscal year in which the
subscription begins. Retroactive payments made after the close of a fiscal year may be
prorated between the two fiscal years.
Transaction processing cut off dates are issued each year by tho General Services
Commission and the State Comptroller. Each spring. TOie Purchasing Department
notifies University departments, usually in early Gummcr, of annual deadlines to allow
compliance with thoso cut off datcs.state deadlines and to allow adequate order
processing time for current year orders. Once a deadline has passed orders received after
that date will be processed against the new fiscal year unless one of the above EOY rules
applies.
To properly identify Requisitions received prior to a deadline date will be processed on
current fiscal year funds unless properly identified as a next fiscal year requisitionfeeal
year funding sources during the poriod of Juno through August the requiGitionor should
following these instructions:
a. Departments submitting hard-copy requisitions should mako a notation such as 'FY98
Funds1 on the face of the requisition. On-line requisitions should follow the instructions
provided through the purchasing list-serv.
b. Departments submitting eR-fetehard copy requisitions should follow the instructions
provided by the Purchasing Department through the o mail purchasing listmake a
notation such as TY01 FUNDS* on the face of the requisition.
Source of Authority: 34 TAC Part 1. Chapter 5. Subchapter E. Ruleseer 5.563:
President; Vice President for Business Affairs
Cross Reference: None
Contact For Revision: Director of Purchasing and Inventory
Forms: None
Investments C-41
Original Implementation: April 30,1996
Last Revision: January 19. 199925. 2000
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.
Scope
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
All University funds and funds held in trust for others may be invested only in the
following securities:
51
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;
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
52
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;
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;
53
(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 shall be maintained by the University
Controller. Eligible repurchase agreements shall be documented by a specific agreement
noting the collateral pledged in each agreement. Collateral shall be reviewed monthly to
assure the market value of the securities pledged equals or exceeds the related bank
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:
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
54
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
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 Funds 2 days to one year
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.
55
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.
Decisions requiring security purchases with stated maturity in excess of five (5) years
will require approval of 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
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.
56
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:
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.
57
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 fond 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.
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.
Performance Evaluation
The VPBA 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 University;
(D) contain a summary statement prepared in compliance with generally accepted
accounting principles of each pooled fond group that states the:
(1) beginning market value for the reporting period;
(2) additions and changes to the market value during the period;
(3) ending market value for the period; and
58
(4) fully accrued interest for the reporting period;
(E) state the book value and market value of each separately invested asset at the
beginning and end of the reporting period by the type of asset and fund type invested;
(F) state the maturity date of each separately invested asset that has a maturity date;
(G) state the account or fund or pooled group fund for which each individual
investment was acquired; and
(H) state the compliance of the investment portfolio of the University as it relates to
the relevant provisions of the Public Funds Investment Act.
Training
The VPBA and Director of Financial Services are required by Section 2256.007(a) of the
Government Code to attend at least one session of investment training not later than
March 1,1996, and, as appropriate, periodically thereafter.
Audits
The University's Department of Audit Services office shall conduct annual compliance
audits of management controls on investments and adherence to the University's
investment policy and report the results to the President and VPBA and the State
Auditor's Office. In addition, the Department of Audit Services shall annually review the
quarterly investment reports, and report the result of the review to the governing body.
Investment Policy Adoption and Certification
Upon adoption by the Stephen F. Austin State University Board of Regents, the
University's investment policy shall be reviewed annually to ensure current applicability
and significant modifications thereto submitted to the Board of Regents for approval.
Source of Authority: Board of Regents, Stephen F. Austin State University
Cross Reference: None
Contact for Revision: Vice President for Business Affairs
Forms: None
59
APPENDIX A
INTERNAL CONTROLS
The University has prepared an Investment Policy as of April 12, 1996. The policy was
approved by the Board of Regents April 30,1996.
The Investment Policy will be reviewed and/or updated no less than annually.
All pledged securities shall be held by a third party custodian in the name of the
University. A safekeeping receipt will be issued to the University listing the specific
instrument, rate , maturity, safekeeping receipt number, and other relevant information.
The signature of the President, VPBA, or Director of Financial Services is required for
release of pledged securities from safekeeping unless the securities being released are
replaced by securities with the same market value. Only changes in the level of
collateralization require approval by the above.
The Controller's Office will reconcile the appropriate investment accounts to broker's
statements and other supporting documents monthly.
All purchases of securities from and deposits of funds to or withdrawals of funds from
Texpool require the signature of the VPBA, and either the Director of Financial Services
or the Controller.
60
APPENDIX B
ADMINISTRATIVE PROCEDURES
The Bursar's Office will maintain a daily list of cash balances held in depository bank
accounts.
All investment transactions and related cash transfer requests, except for investment
"rollovers" as defined, will be prepared by the Director of Financial Services and will
require an appropriate second signature.
"Rollovers" are investment transactions whereby an investment of certain type held by an
entity matures and the proceeds are then used to purchase an investment of the same type
within the same account within the same entity.
The Controller's Office will record investments in compliance with GASB and State
Comptroller's reporting requirements and reconcile the appropriate investment accounts
to broker's statements and other supporting documents monthly.
Quarterly investment reports are prepared by the Director of Financial Services and
approved by the Vice President of Business Affairs in accordance with the Performance
Evaluation section of this investment
policy.
The market price of securities will be monitored quarterly using industry published data
or appropriate financial publications.
61
Investments - Endowment Funds C-41.A
Original Implementation: Unpublished
Last Revision: January 4-9-25.4^99-2000
GENERAL
This Investment Policy Statement (IPS) applies to all Stephen F. Austin State University (the
"University") endowment funds. These funds are given to the University by individuals and
institutions to promote, encourage and advance education and to improve the degree and non-degree
educational functions by establishing scholarships, fellowships, professorships, academic
chairs and other academic endeavors at the University, as specified by donors.
As provided in the Texas Education Code, each member of the Board of Regents (Board) has the
legal responsibilities of a fiduciary in the management of funds under the control of the University.
The Board recognizes its responsibility to insure that the assets of the endowment funds are
managed for the exclusive benefit of the University in accordance with its donors' intentions,
effectively and prudently, in full compliance with all applicable laws.
Separate fund balance accounts are maintained for all funds. Funds may be restricted either by the
donor or the Board. Restricted funds are available primarily for specific purposes considered
beneficial to the University.
The investment of the Endowment fiinds is governed by Section 51.0021 of the Texas Education
Code. This section states that the University " ... with regard to donations, gifts and trusts may
establish endowment funds that operate as trusts and are managed under prudent person standards."
The currently accepted prudence standard is the prudent expert standard, and it defines the duty of a
trustee to exercise "the care, skill, prudence and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters would use in the conduct
of an enterprise of a like character with like aims."
In the management of the University endowment investments, consideration will be given to the
need to balance a requirement for current income for present activities with a requirement for
growth in principal to compensate for inflation. Consideration will be given to the need for safety
of principal, liquidity, diversification, yield and quality.
The overall objective of the IPS is to assure that the University's endowment funds are invested in
a manner to achieve as high a level of return as can reasonably be expected to be achieved given
the primary objective of safety and preservation of principal. The IPS clearly and concisely states
the responsibilities of all parties involved with the endowment funds. The IPS will assist the Board,
the Finance Committee ("Committee") and the University Administration in effectively
communicating with and monitoring the investment manager(s) and the investment firm(s) that will
be engaged from time to time to facilitate the management of the endowment assets of the
University. It states the Boards' attitudes, guidelines and objectives in the investment of the
endowment assets.
62
RESPONSIBILITIES
The University acknowledges that the ultimate responsibility for satisfactory investment results
rests with the Board. The Board believes that this responsibility is best discharged by delegating
certain authority to the University administration and by appointing one or more investment
management organizations to assume certain responsibilities.
The specific responsibilities of the Board in the investment process include and are limited to
developing a sound and consistent investment policy, developing sound and consistent investment
policy guidelines, establishing reasonable investment objectives, allocating the endowment assets
between equity and fixed-income investments, and other investment mediums which it may deem
appropriate and prudent, communicating clearly the major duties and responsibilities of those
accountable for investing the endowment assets and achieving investment results, evaluating
performance results, and abiding within all applicable laws, including conflict of interest provisions
therein.
The Vice President for Business Affairs (Vice President) is designated as the investment officer for
the University. As such, the Vice President or designee(s), is responsible for accounting for
investments, monitoring and evaluating performance results, and ensuring that policy guidelines are
being adhered to and investment objectives are being met. In addition, the Vice President or
designee(s), is responsible for the purchase, sale, assignment, transfer and management of
investments, for communicating with investment managers, brokers and dealers, for compiling
performance results, and for determining the proper distribution of investment returns to the various
accounts. The Vice President is also responsible for determining the appropriate distribution of
income in accordance with the distribution policy in the distribution policy section. The Vice
President will submit an annual investment perspective to the Board of Regents.
INVESTMENT POLICY
The Board believes that the endowment assets should be managed in a way that reflects the
application of sound investment principles.
The Board adheres to the traditional capital market theory that maintains that over the long term,
the risk of owning equities should be rewarded with a somewhat greater return than available from
fixed-income investments. This reward comes at the expense of higher volatility of returns and
more exposure to market fluctuations than with fixed-income investments. Fixed-income
investments provide a more predictable return and higher current income than do equities. Thus
assets should be allocated between fixed-income investments and equities are such a manner as to
provide for current income while providing for maintenance of principal in real terms.
Avoiding large risks is essential. The University is willing to trade off some potential opportunities
for gain from high-risk investments (with high loss potential) by assuming a moderate-risk posture
in order to have a more stable positive return. This may result in sacrificing some potential
opportunities for gain during rising markets in order to avoid large short term declines in market
value during falling markets. Since the University is adverse to large downward fluctuations in the
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value of its investments resulting from volatile market value fluctuations, such year-to-year
volatility should be minimized.
INVESTMENT POLICY GUIDELINES
For the purpose of this policy all securities which use long-term credit ratings must be rated the
equivalent of "A" or better by a nationally recognized credit rating service. Securities using short-term
credit ratings must be rated at least A-2, P-2, F-2 or the equivalent by a nationally recognized
credit rating service.
The following categories of securities are permissible investments:
a) Direct obligation of the United States Government or its direct agencies.
b) Direct obligations of federally-sponsored agencies in accordance with the above paragraph.
c) United States dollar denominated bonds, debentures, or commercial paper and convertible
securities issued by corporations in accordance with the above paragraph.
d) Common stock and preferred stock issued by United States domiciled corporations and
common stocks of foreign companies listed on the major U.S. or foreign security exchanges.
e) Certificates of Deposit issued by federally insured state banks, federally insured savings and
loan associations and saving banks or federally insured credit unions. Amounts over the
insurance limit of the institutions must be secured by pledged securities.
f) Bankers acceptances accepted by a bank organized and existing under laws of the United
States or any state in accordance with the above paragraph.
g) Money Market Mutual Funds. Funds must be registered with the Securities and Exchange
Commission, have a maximum dollar weighted average maturity of no longer than 13 months,
and be no-load funds. Funds must have assets consisting of securities described in the
paragraphs above and seek to maintain a stable net asset value of $1.00 per share (or unit).
h) Direct Security Repurchase Agreements. Direct Repos must be fully secured (collateralized)
by securities authorized under the sections (a) through (f) above. Such collateral must be held
by a third party. All agreements will be in compliance with Federal Reserve Bank guidelines.
i) Shares of investment companies as defined by the Investment Company Act of 1940. These
companies include both closed-end investment companies and open-end investment companies
(mutual funds). Shares in these companies may be purchased if they own securities described in
sections (a) through (h) above.
j) Certain types of transactions and purchase of certain types of securities are specifically
prohibited by this policy. Commodity trading including all futures contracts, purchasing of
letter stock, short selling, option trading, and margin trading are specifically prohibited. Neither
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tax-exempt debt of state and local governments, private placements, nor guaranteed investment
contracts may be purchased. No investments will be made in derivative products as defined by
the Financial Accounting Standards Board in SFAS, No: 119. Collateral mortgage obligations
that do not pass the FFIEC test may not be purchased.
k) 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.
1) Except for up to three cases, no more than five percent (5%) of the portfolio, including
convertible securities, can be invested in any one company. This will be measured on a cost
basis. No more than ten percent (10%) of the portfolio can be invested at any time in one
company based on the market value of the stock and portfolio. This section is not applicable to
investments in U.S. Government securities.
m) No more than fifteen percent (15%) of the portfolio can be invested in any one industry, as
defined by Standard and Poor's broad categories, based on the cost value of the portfolio. No
more than thirty percent (30%) of the portfolio can be invested in any one industry based on the
market value of the portfolio. The holdings do not have to be invested in industry groups that
represent a cross-section of the economy.
n) All of the equities purchased for the portfolio (based at market value) should have a
minimum market capitalization of $250 million.
The allowable range and target asset allocation for the endowment funds is:
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For the fixed income portion of the portfolio the asset mix should be, maximum U.S. government
bonds 100%, minimum government bonds 0%, maximum corporate bonds 50%, minimum
corporate bonds 0%, maximum cash 100%, minimum cash 0%.
Gifts of individual securities will be liquidated or transferred to an equity fund manager currently
employed by the University under the Use of Investment Firms section. The liquidation or transfer
will take place as soon as possible. If liquidated, the proceeds will be invested in accordance with
the allowable range and target asset allocation set forth in this policy. Exceptions to this policy are
securities described by sections (a), (b) and (c) above. Such securities may be held so long as the
asset allocation ranges are maintained.
The policy in this section can be overridden by a written directive from a donor.
USE OF INVESTMENT FIRMS
The Vice President or designee, is responsible for selecting of brokers and dealers for the execution
of security transactions and for the safe keeping of securities. Sales, purchases and exchanges will
be transacted through well-capitalized, nationally-recognized investment firms which are major
participants in the equity and fixed-income markets. Firms should be selected to provide the
maximum benefit to the University. The Vice President may choose to use a request for proposals
to select the firm or firms with which the University deals.
Selection of outside investment managers will follow these guidelines:
a) The Vice President or designee, within statutory and other regulatory authority, may place
selected funds of the University with investment managers outside the University for
investment purposes. The investment of such funds will be subject to the provisions of this
investment policy statement. The Vice President is authorized to negotiate with outside
investment managers for the benefit of the University.
b) Outside investment manager(s) will receive a copy of the IPS and a Letter of Instructions
outlining investment instructions and asset allocation parameters expressed in writing by the
Vice President. The Letter of Instructions will state return objectives that are reasonable and
achievable within the guidelines provided herein. These return objectives should be achieved
over a reasonable time frame, thus it is not necessary for the outside manager(s) to exceed the
return expectations each quarter. In addition, each outside investment manager must execute a
written statement to the effect that the registered principal of the organization has received and
thoroughly reviewed the investment policy of the University. The statement must also
acknowledge that the organization has implemented reasonable procedures and controls in an
effort to preclude imprudent investment activities.
c) Consistent with this investment policy statement and their Letter of Instruction, the outside
investment manager(s) will be responsible for making decisions on a discretionary basis. This
includes buy, hold, sell and timing decisions. The outside manager(s) must make responsible
decisions in the selections of specific securities and the general timing of purchases and sales
necessary to achieve a satisfactory overall return for the assets.
66
d) Outside manager(s) will invest only into the security class(es) for which they were retained
to manage. The manager(s) have discretion to place funds into cash, however, their
performance will be measured against an index which measures their security class without
deducting the cash position.
Investment managers employed by the University to invest in equities may be are evaluated
required 4o abide ^by using the following guidelines:
a) The average portfolio Beta should be between 1.10 and 0.90.. and will be specified according
to the equity style of tho manager.. That is to say that the peee-volatility of the fund cannot:
should not differ from the volatility of the S&P 500 by more than ten percent. The Beta
calculation should be computed, as a weighted average of tho individual equities and should
include any cash position in the portfolio.
b) The R-Squared may be as high as 100% over a time frame of one year or longer if all
investment objectives are met. R-Squared is a statistical evaluation to measure similarity in
behavior of the portfolio to the market.
c) The annualized Alpha should be greater than the managers fee essentially showing that value
is being added for the risk taken. Alpha measures the excess return for the amount of risk
taken.
d) Portfolio turnover will be monitored. If the performance results of the portfolio meet the
objectives stated herein, the rate of turnover in the portfolio will not be an evaluative factor.
However, a portfolio turnover higher than the average of similar fund managers is considered a
negative.
Files will be maintained on investment firms with which the University deals. The files will contain
financial statements for the firms and NASD reports for the brokers and firms or other appropriate
documentation which supports the financial stability of the firms. These files will be updated
annually. A list of approved brokers and firms will be maintained and changes will be approved by
the Board of Regents.
DISTRIBUTION POLICY
The spending rate may be derived from total return as prescribed in an endowment study conducted
in the late 1960s by the Ford Foundation Advisory Committee on Endowment Management. The
study concluded that the endowment spending rate should be based on the total return of a
portfolio, that is the combination of interest, dividends, and realized and unrealized capital
appreciation, not of portfolio management fees. The spending rate may bo reviewed and adjusted to
reflect current financial market conditions.^
The spending policy should balance the long-term objective of maintaining the purchasing power to
the endowment funds with the goal of providing a reasonable, predictable, stable, and sustainable
level of income to support current needs. Pursuant to Chapter 163 of the Uniform Management of |
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Institutional Funds Act, an institution of higher education may not expend the net unrealized
appreciation of the assets of an endowment fund. The Vice President may review the nature of the
various endowments to determine the need for income for current spending?- and the ability to
tolerate variability in current income., and the need to preserve the real value of tho endowment.
The asset allocation between fixed-income securities and equities may reflect diversification needs
of the endowments.
Analysis of historical investment data indicate that during years of average returns, portfolio total
returns should enable the principal balances to grow at the rate of inflation while distributing
sufficient income to enable beneficiaries to accomplish their goals. During years of above average
returns, the principal balances should grow faster than the rate of inflation while distributing above
average income. During years of below- average returns, income should be distributed even though
principal balances are not growing.^
PERFORMANCE EVALUATION
The Vice President will submit quarterly reports to the Board on the performance of the investment
portfolio. The reports will disclose the book value and market value of the portfolio at the
beginning and ending of the reporting period by the type of asset and fund type invested. The
reports will disclose the realized and unrealized gains/losses on the portfolio for the reporting
period. Additions and changes in the market value of the portfolio during the period will be
reported. The reports will show the pooled fund value as well as individual assets by fund type. The
reports will state the maturity date of each asset that has a maturity date. The total return on the
portfolio, on each asset class and for each manager will be reported.
The performance of the total portfolio, each asset class and each manager will be compared to
appropriate benchmarks and included in the quarterly reports to the Board. The report will contain
sufficient information for the Board to determine if actions should be taken to correct any
deficiencies that may exist.
CONFLICTS OF INTEREST
Members of the Board are frequently persons of wide-ranging business interests. Therefore, a
prudent, independent investment decision process may result in investments in firms or
organizations with which a member of the Board is affiliated. Affiliation shall be interpreted within
this section to mean an employee, officer, director, or owner of five percent or more of the voting
stock of a firm or organization. The investment staff or an unaffiliated investment manager may
invest in such securities. However, the following restrictions shall apply:
a) a member of the Board shall not direct nor participate in the decision to purchase or sell
securities of a firm with which such member is affiliated; and
b) investments will not be purchased from or sold to a member of the Board.
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AUDITS
The Department of Audit Services of the University shall include endowment assets as a
component of its annual audit risk assessment. If the department determines that the endowment
assets meet its risk assessment criteria, Audit Services may perform an annual audit of the
endowment assets to ensure compliance with the endowment investment policy.
Source of Authority: Board of Regents
Cross Reference: Texas Education Code, Section 51.0021
Contact for Revision: Vice President for Business Affairs
Forms: None
69
Property Inventory and Management C-42
Original Implementation: September 28, 1996
Last Revision: January +925,4-9992000
Centralized property management and control is performed by the Purchasing and
Inventory Department. The Director of Purchasing and Inventory and the Property
Managers are responsible for the overall management of University equipment,
maintenance and control of centralized inventory records, and disposition of surplus,
salvage and scrap.
In accordance with Texas Government Code Ann. Sec. 403.271 (a) through 403.278,
Stephen F. Austin State University will comply with the State Property Accounting
Policies as outlined in the State Property Accounting Policy and Procedures Manual.
Stephen F. Austin State University shall be certified as an internal agency.
PROPERTY RESPONSIBILITY
The President delegates responsibility for the custody and care of state property tothe
Property Managers and the Department Heads. The Property Managers shall perform
updates and make all additions, deletions and value adjustments to inventory records. The
department heads are to exercise proper care and control over all assets for which he/she
is responsible.
WHAT IS INVENTORIED
As outlined in the State Property Accounting (SPA) Policy and Procedure Manual,
property will be added to centralized inventory records as follows:
-All equipment with a useful life of greater than one year and a value greater than $1000
-All equipment with a useful life of greater than one year and a value greater than $500
in the following commodity groups:
medical equipment
7 fax machines
7 stereo systems
7 cameras
7 video cameras
7 vcr's
7 camcorders
7 televisions
7 tv/vcr combinations
7 scientific and lab equipment
7 microcomputers
7 printers
-and cellular phones
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—All firearms of any type of any cost
—The Property Manager has determined that the following items will be added to
centralized inventory records with a useful life of greater than one year and at any value:
fax machines, stereo systems, cameras, video cameras, vcr's, camcorders, televisions,
tv/vcr combinations, microcomputers, printers, scanners and cellular phones.
microcomputers
monitors
printers
—Additional item(s) that the department head feels may be subject to a high risk of theft
may be added upon the Property Manager's approval.
Items are added to the SPA centralized inventory records at the time of acquisition and
are carried in the system at original cost value until disposed of through surplus. The
Property Manager is responsible for assignment and control of inventory numbers and
maintenance of inventory records. Inventory control tags are normally applied by Central
Receiving prior to delivery.
ANNUAL PHYSICAL INVENTORY AUDIT
The Annual Physical Inventory audit shall be conducted in the spring of each fiscal year.
Responses will be due from custodian departments within 45 days. The annual property
report is due to SPA 45 days from the departmental due date. Each department head shall
provide a written receipt accounting foref all property assigned torn his/her custody each
year during the annual physical inventory audit. (See Property Maintenance and
Validation, Policy B-13)
USE OF STATE PROPERTY
State/University property may be used only for state purposes. Non-consumable state
property in the custody of any Stephen F. Austin State University employee may not be
sold, traded, thrown away, cannibalized, or disposed of in any manner without the prior
authorization of the Property Manager. (See Property Transfer and Disposal, Policy B-24;
See Trade-in of Equipment, Policy B-27)
LOANING PROPERTY TO ANOTHER AGENCY
When State/University property is loaned to another agency the President must approve
the loan of the property in writing and receipt of the property must be acknowledged in
writing by the head of the borrowing agency.
EMPLOYEE NEGLIGENCE
When the President has reasonable cause to believe that any State/University property has
been lost, damaged, or destroyed through the negligence or fault of an employee, it must
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be reported to the State Auditor and Attorney General. (See Missing and Stolen Property,
Policy B-19)
Source of Authority: Texas Government Code Ann. Sec. 403.271(a) through 403.278;
President; Vice President for Business Affairs
Cross Reference: None
Contact for Revision: Director of Purchasing and Inventory
Forms: None
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Travel Charge Card C-43
Original Implementation: January 19, 1999
Last Revision: NefteJanuary 25, 2000
An American ExpressBank of America Corporate Card is available for eligible travelers
of the University who take, or expect to take three (3) or more business trips per fiscal
year, or expend at least $500 per fiscal year for official state business. The state-issued
American ExpressBank of America Corporate Card is to be used for business related
charges only. By accepting the charge card, the employee accepts the responsibility for
paying all charges timely and agrees that the charge card is intended for state business
travel use only.
The American ExpressBank of America Corporate Card issued to an employee remains
the property of the State of Texas and should be used only for official state business
charges while away from the University. Use of the American ExpressBank of America
Corporate Card by an employee for personal business is considered a violation of state
policy and will be subject to corrective action. The State Travel Management Program
and the University will receive monthly reports of charges made on all charge cards and
the status of payments. Charges will be reviewed for compliance with guidelines
stipulated on the Charge Card Agreement signed by the employ