Year-end Purchasing (C-40)
Original Implementation: April 5, 1984
Last Revision: July 19, 2011
The state fiscal year is September 1 through August 31 and the following rules and regulations apply to year-end 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:
- delay causing delivery in the later fiscal period was beyond control of the agency;
- delivery could have reasonably been expected to occur during the fiscal year in which the order was placed; and
- the quantity ordered could have been consumed during the fiscal year in which it was ordered had delivery occurred as originally anticipated.
Services are to be charged to the fiscal year in which they are delivered.
Capital equipment purchases (non-consumable with a useful life of more than oneyear) are to be charged to the fiscal year in which they are ordered, except that capital purchases may be charged to the year of delivery as long as the appropriation for the year in which delivery will occur exists, (General Appropriations Act has been signed by the governor) and payment is not made prior to September 1 of the new fiscal year. Payments under a lease-purchase agreement are to be charged to the fiscal year in which the payment is made.
Internet connections, subscriptions, maintenance contracts, post office box rental, insurance and surety or honesty bonds are chargeable to the fiscal year in which they begin and may be paid in full from that fiscal year regardless of whether the purchase covers more than one fiscal year. This rule supersedes other rules relating to consumable items, services, or capital equipment.
Seminar and conference expenses related to conducting or attending the same are to be paid from the fiscal year in which the seminar or conference occurs, unless it is determined to be cost-effective to use current fiscal year funds to pay for conducting or attending a seminar or conference that will occur partly or entirely during a different fiscal year. This rule supersedes other rules relating to consumable items, services, or capital equipment.
Utility services are to be charged to the fiscal year in which the service is provided except that a prior fiscal year may be used to pay for September services of the next fiscal year. This rule supersedes other rules relating to consumable items, services, or capital equipment. Utility service is defined in the state comptroller's eXpendit.
A combined purchase of at least two consumable items, services and capital assets should follow the year-end rules according to the dominant purpose of the contract.
A purchase option that is contractually exercised to purchase a consumable item, service, or capital equipment should follow the year-end rules according to the good or service for which the option is exercised.
Department notification
Each spring, the purchasing department establishes and notifies departments of deadlines for receipt of approved requisitions for the current fiscal year to comply with state guidelines and allow adequate order processing time for current year orders.
Requisitions received prior to the established deadline dates will be processed on current fiscal year funds unless properly identified as a next fiscal year requisition following the instructions provided through the purchasing listserv. Requisitions received after the established deadline dates will be processed on next fiscal year funds.
Exceptions
Exceptions to the established deadline dates will be made if necessary to comply with year end guidelines established by the state comptroller or for emergency reasons. The director of procurement may use discretion in the best interest of the university when applying or exempting the established deadlines or above rules when using non-appropriated funds.
Cross Reference: 34 Tex. Admin. Code § 5.56; State Comptroller eXpendit
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision:Director of Procurement & Property Services/HUB Coordinator
Forms: None
Board Committee Assignment: Finance and Audit