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Disbursements, Travel & Property Management Services (DTPS)

Disbursements

General Disbursement Guidelines


Purchases and any disbursement of funds must be made in accordance with the State of Texas laws, applicable statutes and regulations, the State Comptroller's guidelines (Expendit), Texas A&M System regulations and Texas A&M - Kingsville Rules and Standard Administrative Procedures. Texas A&M University Disbursement Guidelines, is derived from the sources above.

State Funds

State funds include General Revenue appropriated to the institution or agency by the legislature and on deposit with the state treasury until disbursement. Local funds held in the state treasury are also considered state funds for purposes of these guidelines. Local funds held in the state treasury include net tuition, special course fees charged under sections 54.051 (e) and (l) of the Education Code, lab fees, student teaching fees, hospital and clinic fees, organized activity fees, proceeds from the sale of educational and general activities or equipment, and indirect cost recoveries. All state funds must follow state expenditure guidelines. 

Local Funds

Local funds are all funds collected at the institution that are not educational and general funds. Once funds are deposited at TAMUK, they are TAMUK's funds and must follow TAMUS regulations and TAMUK rules. If money is given for a specific purpose, that money should be spent only on that specific purpose. Local funds are less restrictive than state funds. For the types of local funds and usage guidelines, please see the Summary of Accounts.

Expense/Object Codes

Expense/Object codes classify the expense on the state or local funded accounts. To identify expenditures that are not allowed on a fund type or certain range of accounts use the Expenditure Guideline Matrix. The Matrix has the most commonly object codes used.

There is also a key word search available for object codes; however, this search will not provide information on if the object code or expenditure is allowable for that fund or account range. It is a good search to identify what to code an expenditure. 

Summary of Accounts

The  Summary of Accounts table provides a list of account ranges, type of fund for the account range and some general information about that account.

It also provides a summary view of the purchase guidelines in that account range/fund type.


Payment Preparers and Approvers

Individuals that prepare or approve disbursement related documents must have completed the required trainings for JavelinaBuy and Concur.  For JavelinaBuy training contact Procurement by emailing procurement@tamuk.edu and for Concur training email travel@tamuk.edu.

Individuals that will approve documents must have signature authority over the accounts in the department or departments.


Payment Documentation

Proper supporting documentation (itemized invoice) must be attached to the payment request to support the legality of a payment or to accurately describe the goods or services being purchased.

Invoices/Receipts

Invoice/Receipt must be itemized and must be part of the payment documentation on the payment request. Invoice number provided on the invoice must be entered as it appears in the payment system to catch possible duplicate invoices.

If the payment system identifies a duplicate invoice and the department overrides the payment system, there must be supporting documentation explaining why this was necessary.

If the invoice is not an original invoice, departments will have the responsibility of confirming that the invoice is not a duplicate request by checking in the payment system for Texas A&M University- Kingsville and any other funding sources the department may use.

Note: For a reimbursement request the receipt must show proof of payment. If not shown on the receipt, proof of payment must be provided in addition to the receipt.

In the event of a reimbursement request and the receipt shows a foreign currency use OANDA to convert foreign currency to US dollars. Be sure to adjust the date in the Currency Converter to use the date on the receipt. 


Advance Payments

Payments should be made after the goods/services are received, so advance payments are an exception to this.

A state agency may not pay for goods or services before their delivery to the agency, unless the advance payment is necessary and serves a proper public purpose. Specific exceptions to this prohibition are:

  • Books: An institution of higher education may pay for books and other published library materials before receiving them if reasonably necessary for the efficient operation of the institution's libraries. Books and published library materials are the only items that may be paid for in advance with higher education assistance (HEA) funds.
  • Cost Savings: A state agency may make an advance payment if significant cost savings would result from making the payment in advance. For help in determining cost savings, please utilize the Discount Cost Effectiveness Calculator on the Fiscal Management Extranet (FMX) website of the Comptroller's office.
  • Expedite Delivery: A state agency may make an advance payment to a federal agency or another state agency for goods purchased from the agency, if the advance payment will expedite delivery of the goods.
  • Lease Costs: An advance payment of annual lease costs for office or building space can be made by the Texas Facilities Commission (TFC) acting on behalf of a state agency, if an early payment discount can be obtained.
  • Leased Space: A state agency may pay rent for leased space no more than seven days before the payment due date.
  • Purchase of Real Property: A state agency may process a purchase voucher/payment request for the purchase of real property anytime anytime during the seven days before the closing date, if the check/warrant will be delivered to the seller no earlier than the closing date.
  • Rent:  A state agency my pay a rental fee for a meeting room, exhibit booth, or registration fee in advance if there is a legitimate public purpose for making the advance.
  • Specialized Goods/Services: A state agency may make an advance payment to a vendor selling specialized or proprietary goods or services to the agency if the vendor requires the payment to be made in advance.
  • Subscriptions: A state agency may pay the cost of a periodical subscription a maximum of six weeks before it begins.
  • Tuition: A state agency may pay tuition directly to an institution of higher education not earlier than six weeks before the class begins. However, a state agency may not reimburse a state employee for tuition before the class begins.

    A state agency that makes an advance payment to a vendor is responsible for ensuring that the vendor provides the goods or services to the agency and for pursuing appropriate legal remedies to recover the payment if the vendor fails to provide the goods or services.

    All advance payments should not exceed 6 weeks in advance. If payment is required more than 6 weeks in advance the reason should be documented, e.g. a discount is provided or to reserve high demand space.


It is important that all dates are entered accurately on the payment document in JavelinaBuy because that drives when the payment will be released to the vendor, as well as preventing prompt payment interest from calculating.

Invoice Received Date

This is the date the invoice was first received at Texas A&M University - Kingsville. The Invoice Received date must actually be documented on the actual invoice. This can be done with a date stamp on the invoice, the fax received date line on a faxed invoice, or the date of an email. If the invoice is received in an email, the email must be saved as a PDF and attached to the payment document. In the event there is no documented invoice received date, the invoice date must be used as the invoice received date. Failure to accurately record the invoice received date can result in possible prompt payment interest.

Goods/Services Received Date

This is the date the goods were received from the vendor or the date the services were completed. In the case of a range of service dates as in subscriptions, memberships, professional licenses, copier rentals, maintenance agreements, etc. always use the start date of the service period as the goods/services received date. Failure to record an accurate goods/services received date can result in possible prompt payment interest.

Invoice Date

This is the date of the invoice. If there is no invoice date on the invoice, enter the date the invoice was received in the department as the invoice date.

Payment Due Date

The payment due date is calculated by the vendor's terms from the invoice date, not the invoice received date or the goods/services received date. Default payment terms for vendors, in the absence of a contract or other agreement, are net 30 days. The payment system will always show this as net 27 to allow for mailing time. The payment due date will be 27 days from the invoice date and the check will be scheduled to release on that date.

Scheduling payments will possibly drive vendors to provide discounts to pay before the 30 day term. For example, some vendors will offer a 2% discount if paid within 10 days of the invoice date.

Discount Due Date

This is the date the payment must be made in order to take advantage of a discount offered by the vendor. If the vendor's payment terms are 2% 10 net 30, we have to make the payment within 10 days of the invoice date in order to reduce our payment by the 2% discount amount. If we miss that date we have to pay the full amount of the invoice by 30 days from the invoice date. It is critical that all invoices offering payment discounts are entered into the payment system immediately upon receipt.  All approvals must be timely in order to allow for processing before the discount due date in order to take advantage of the payment discount.


The State of Texas Prompt Payment Law requires that a state agency's payment is due by the 30th calendar day after the receipt of goods, completion of service, or receipt of invoice, whichever date is the latest. If paid (check issued) after this date, prompt payment interest will begin accruing. Interest will automatically be included on the payment to the vendor. On local accounts, interest will not be paid unless it is greater than $5.00.

In the event there is a dispute of the prompt payment charged, the departments have 30 days from the month end closing where prompt payment interest appeared on their account to send a request to Accounts Payable to review the prompt payment charge.

Disputed Payments

If there is a dispute with the vendor due to an error in the billing, the dispute must be communicated to the vendor within 21 days of receipt of the invoice. All details regarding the dispute should be well-documented. If the dispute is resolved in the vendor's favor, we are liable for any prompt payment interest that accrues. We are not allowed to change the invoice date or invoice received date to circumvent prompt payment interest. If the dispute is resolved in our favor, the vendor should provide a revised invoice with a current invoice date. If the vendor does not reissue the invoice with a new date, you may use the date the dispute was resolved as the invoice received date. You must clearly document why you are using that date as the invoice received date.


As a general rule, Texas A&M Univesity-Kingsville is tax-exempt as a state agency and an institution of higher education.

Texas Sales Tax

Do not pay Texas sales tax! The Texas A&M University System is always exempt from Texas state sales tax and can be exempt from federal taxes and other state taxes. We are exempt from paying Texas state sales tax. State employees should provide the Texas Sales and Use Tax Exemption Certificate form to the vendor when making a purchase. Only undesignated accounts can be used to reimburse employees for sales tax that they paid in error on the purchase of goods.

Texas Vehicle Rental Tax

When renting a vehicle within the state of Texas, employees are exempt from the Texas Motor Vehicle Tax. The Motor Vehicle Rental Exemption Certificate should be provided to the rental agency when picking up the vehicle.

Hotel Occupancy Tax

When staying at a hotel within the state of Texas, employees are exempt from the Texas Hotel Occupancy Tax. The State Hotel Occupancy Tax Exemption Certificate should be provided to the hotel at the time of check-in.

Federal Taxes

State agencies are required to pay the federal tax and may be required to pay certain state taxes on bulk fuel purchases.

Business Meals

Business meals that are direct billed to the state agency are tax-exempt. Business meals charged to the payment card or travel card are considered direct-billed. If the business meal is purchased with a personal form of payment, individuals may be reimbursed for the sales tax by any account that is allowed to purchase business meals.


The current procure to pay and payment request system is JavelinaBuy. Please visit the JavelinaBuy website for more information about the AggieBuy system along with the available training, reference guides and video based tutorials.

Enclosures

The term "enclosure" means that a copy of the invoice is to be mailed with the check to the vendor. If no invoice number is provided by the vendor, the customer account number should be used as the invoice number. In the absence of an actual invoice or customer account number to reference in the invoice number field, an enclosure code could be used.

The remittance advice that the vendor receives contains the purchase order number and vendor invoice number so that a vendor can properly credit our payment. Therefore, it is our policy not to send a copy of the invoice with every check. Enclosures should only be needed in rare cases and should be limited to those cases to reduce the additional cost to the university to send enclosures.

Encumbrances

An encumbrance is a reserve of funds set aside for a particular purchase. Encumbrances are used to earmark funds so the funds are not used for other expenses. Encumbrances are created in the accounting system at the account, support account, and object code levels at the time a requisition is approved by the final department approver. When an invoice is processed against the PO, the encumbrance is released at the time of the invoice posting in the accounting system. It is possible that the invoice posting may not release the entire encumbrance due to the vendor billing less than the encumbered amount. Or, only part of the order could be fulfilled and an alternate vendor was used. It is also possible a PO may not be able to be fulfilled by the vendor or the department decided to cancel the order. Unspent encumbrances will roll over to each fiscal year until they are spent or removed. If an encumbrance needs to be removed, please send an email to ap@tamuk.edu with the encumbrance amount, document number and justification to remove the encumbrance.

Refunds

When we refund money to a vendor or an individual that they have previously paid to TAMUK, the revenue code that was used when the original payment was deposited should be used as the object code for the refund, and payment documentation should include the original deposit document reference number from the accounting system. If the vendor is not in the accounting system contact ap@tamuk.edu for instructions.

Scanned Documents

All documents scanned in the procure to pay system should be clear and legible as the image attached to the procurement and payment documents now becomes the official record. Any other copies kept in the department are considered convenience copies and are not required to be kept according to record retention policies.


The Internal Revenue Service requires entities to report tax reportable payments on 1099 and 1042 tax forms. To accurately report this and avoid fines and penalties levied by the IRS, it is extremely important to accurately set up vendors in our accounting or payment system. 

Domestic Vendors

Vendors are set up centrally at Texas A&M University in FMO Accounts Payable via a request through the procure to pay system, fax (979) 458-4191, or upload through the secure portal Vendor Setup Document Upload Web Page. A payment request cannot be processed until the vendor is set up in the payment system.

  • The W-9 Form is required for most new domestic vendor types, see below:
    • Speaker Fee
    • Individual Payment/Reimbursement
    • Sole Proprietor
    • Partnership
    • Corporation
  • If the vendor will not provide an EIN and it is a 1099 reportable payment (i.e. $600 or greater for services or rentals) TAMUK will have to withhold 28% of the payment and remit to the IRS.
  • Concur: For individuals only. Sending a W-9 to FMO to setup a new vendor/individual for payment will automatically set them up in FAMIS and JavelinaBuy. If the entry also needs to be set up in Concur, please note this on the W-9.
  • In accordance with Texas state Law (TAC §202) and Texas A&M University System Policy, confidential information such as Social Security Numbers or Bank Account Information may not be sent via email.  In order to prevent the unauthorized disclosure and provide for the secure upload of Vendor Setup Forms and other confidential data, a secure upload form is provided at Vendor Setup Document Upload Web Page. If you should have questions regarding the Vendor Document Upload Web Page, see the Vendor Setup Document Upload Instructions.

  • As of January 01, 2019 we will require all domestic vendors to be paid via direct deposit.
    • Please be sure to have the vendors sign up for direct deposit using the Substitute W9 & Direct Deposit form available in the section below under For Domestic Vendors (US).
    • The domestic vendors who will not accept payment via direct deposit will need to request an exception via email at vendorhelp@tamu.edu & provide a reason in the request for the exception.
    • If a vendor setup request is sent in after January 1, 2019 with no direct deposit information provided it will be returned to have the vendor provide one.

      Foreign Vendors

      • Please contact FMO prior to making the purchase or inviting the entity or individual to the United States.
      • A W8-BEN or W8-BEN-E is required to set up a foreign vendor in FAMIS.
      • If the foreign entity will not provide or properly complete the required forms and if the payment is US-sourced income (means in most instances performed within the US) and a 1042 reportable (services, rentals, software licenses, etc.) payment, then TAMU will have to withhold 30% of the payment and remit to the IRS.

      If a foreign individual provides a 1042 reportable service (service that is performed in the U.S.) and wants to take advantage of a tax treaty, they must complete Glacier. Glacier completes the Form 8233 or W8-BEN (among other paperwork) for the foreign individual if there is any tax treaty available.

      Foreign Vendor Forms

      • Certificate of Foreign Status Form: For companies or individuals providing services outside the U.S (non-taxable).
      • Form W8-BEN: You must give Form W-8BEN to the withholding agent or payer if you are a non-resident foreign individual who is the beneficial owner of an amount subject to withholding or if you are an account holder of the FFI documenting yourself as a non-resident foreign individual. If you are the single owner of a disregarded entity, you are considered the beneficial owner of income received by the disregarded entity. Submit Form W-8BEN when requested by the withholding agent, payer, or FFI whether or not you are claiming a reduced rate of, or exemption from, withholding. See the W8-BEN Instructions.
      • Form W8-BEN-E: Foreign corporations, partnerships, trusts or a beneficial owner solely claiming foreign status or treaty benefits.
      • Form W8-ECI: A foreign individual or entity claiming that income is effectively connected with the conduct of trade or business within the U.S. (unless claiming treaty benefits). If you are a foreign person & you are the beneficial owner of U.S source income that is (or is deemed to be) effectively connected with the conduct of a trade or business within the U.S. W8-ECI Instructions
      • Form W8-EXP: A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization, foreign private foundation, or government of a U.S possession claiming the applicability of section(s) 115(2), 501©, 892, 895, or 1443(b).

Payments through the accounting system will not be released if the vendor is on hold with the state of Texas or has been placed on hold by TAMUK. If making a payment card purchase greater than $500, it must be determined prior to the purchase whether the vendor is on hold.

Texas A&M University - Kingsville should not purchase, in any dollar amount, goods or services from any vendor listed on the below state and federal debarred lists.

Direct Deposit

All vendors are encouraged to be set up for direct deposit. Payments will then be sent directly to their bank account by electronic transfer/ACH. When the payment is released, the funds are available in their account the next morning rather than all the time it takes to reach them by mail and then for them to actually deposit it in their account. Vendors can complete the direct deposit information on our Substitute W9 Form.

Texas A&M employees are also encouraged to have their purchase and travel reimbursements paid via direct deposit. Direct deposit information set up for their payroll is not automatically transferred to the accounting system's vendor record unless that employee has a vendor record in the accounting system and requests it through Workday. Click the following hyperlink for employee direct deposit setup instructions through Workday.


In some instances, vendors will request funds to be wired to their account and specific bank information is required to process a wire transfer. Domestic wires should only be sent in rare circumstances involving a rush where funds are needed the same day or in some cases the next day. Otherwise ACH should be the preferred method. Foreign wires are more common since many foreign vendors will require funds in their country's currency and/or the mail system cannot be trusted.

Domestic Wires

Beneficiary Account Name
Bank Account Number
ABA Routing Number

Foreign Wires

Beneficiary Account Name
US Dollars or Foreign Currency
Bank Account Number or IBAN Number (22-27 digits)
SWIFT Code (5-8 letters) or BIC Number
CLABE Number (Mexico only)

Required information can change on a daily basis depending on the foreign country and the currency being used. If additional information is needed, the department will be contacted by Accounts Payable.

To convert foreign currency to US dollars use the below Wells Fargo conversion tool instead of the Oanda conversion tool. Once converted to US dollars the amount can be used to estimate the amount of the payment request in the procure to pay system. Please note that the amount will be different at the time of the wire and will be adjusted accordingly, so this is just an estimate. Also note that there will be a wire fee charged back to the departments account.

https://www.foreignexchangeservices.com/index.html?partnerid=FES&serviceType=rate