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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 63 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 64 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: 65 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 | 67 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. 68 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 70 —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 71 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 72 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
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Rating | |
Title | Minutes of the Board of Regents of Stephen F. Austin State University. 2000, Volume No. 165 |
Subject |
Meetings Universities & colleges Stephen F. Austin State University |
Description | January 25, 2000, Volume No. 165 |
Date | 2000-01-25 |
Contributors | R. A. Brookshire, Penny Butler, Mike Enoch, Pattye Greer, Gary Lopez, Susan Roberds, Lyn Stevens and Mike Wilhite. Roland Smith, Janelle Ashley, Baker Pattillo, Yvette Clark, and other SFA administrators. |
Repository | East Texas Research Center |
Associated Dates | 2000-2009 |
Type | Publication |
Format | |
Rights | This item may be protected under Title 17 of the U.S. Copyright Law. It is available for non-commercial research and education. For permission to publish or reproduce, please contact the East Texas Research Center at asketrc@sfasu.edu |
Transcript | 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 63 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 64 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: 65 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 | 67 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. 68 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 70 —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 71 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 72 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 |
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