COMPLIANCE NEWSLETTER - Texas Southern University

Greg Williams
Executive Director
713-313-1962
Williamsg@tsu.edu
Alan Philips
Director of Materials Mgmt.
713-313-7280
Phillipsa@tsu.edu
Melanie Jackson
Accounts Payable Sup.
713-313-7162
Dumasms@tsu.edu
TEXAS SOUTHERN
UNIVERSITY
INSIDE THIS ISSUE:
DIRECT PAY
VOUCHER
1
TSU’S POLICY 1
PURCHASES
REQUIRING
CONTRACTS
PURCHASES
REQUIRING
REQUISITIONS
PURCHASES
WITH DIRECT
PAY VOUCHERS
FREQUENTLY
ASKED
QUESTIONS
PROCUREMENT
SERVICES
CONTACT
INFORMATION:
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2
3
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COMPLIANCE
NEWSLETTER
“INTEGRITY AT WORK”
With the approval of MAPP
03.02.06 by the Board of Regents,
TSU entered a new era of efficiency
regarding invoice processing. The
Direct Pay Voucher (DPV) is a
payment mechanism introduced by
the Accounts Payable Department
that allows authorized personnel to
process payments up to $5,000.00
without entering a requisition into
the Banner system. Some
requirements for utilizing the form
are listed below. (For a complete
review, please see MAPP 03.02.06).
�� Expenditures initiated on direct
pay vouchers are subject to the
same approvals prescribed for
other procurements, including
Board of Regents approval,
depending upon types of funds
used, goods or services
procured, and level of
expenditure.
Business management personnel
may make direct purchases of
commodities and services by
submitting for payment or
reimbursement a direct pay
voucher directly to Accounts
Payable. This payment
method is authorized for
payments or reimbursements to
one vendor or employee up to
VOLUME 1, ISSUE 1, FY2011
DIRECT PAY VOUCHERS
�� All requests must be
supported by an original
itemized receipt, which
consists of a merchant
produced or non-university
document that records the
relevant details for each
item purchased including
quantities, amount, a
description of what was
purchased, the total charge
amount, the date of purchase,
and the merchant’s name and
address.
According to Melanie Jackson,
“the DPV has been a tremendous
success for the university and our
suppliers as well. Invoices are
processed much quicker, approval
time is reduced and more
importantly, our suppliers are
receiving payments
expeditiously.”
TSU’S POLICY
$5,000 per transaction,
including freight and delivery
charges. Direct pay vouchers
utilizing state funds are subject
to the restrictions contained in
the Comptroller’s Purchase
Policies and Procedures Guide.
Pursuant to MAPP 03,02.06,
only those persons authorized to
do so may commit Texas
Southern University funds. An
obligation incurred by a person
who is not authorized to
commit university funds or that
is made contrary to University
guidelines becomes the personal
responsibility of that individual
and not Texas Southern
University.

COMPLIANCE NEWSLETTER
TSU’S POLICY (CONTINUED)
Prior to committing university
funds, departments are required
to verify that prospective vendors
are not “on hold” with the State
of Texas. If the supplier is “On
Hold” by the state, another
vendor must be selected. All
users of the DPV must visit the
following website to verify the
vendor status: https://
cpafmprd.cpa.state.tx.us/tpis/
search.html At this website,
enter the name of the vendor to
determine the hold status. If the
vendor is not “On Hold” by the
state, print the page and attach
it to the DPV as support
documentation.
The only exceptions to
verifying vendor hold status
are for
�� Credit card purchases of
$500 or less
�� Emergency purchases of
$500 or less, or
�� Purchases made with a
purchase order.
Additionally, all users of the
DPV require the budget
authority to approve the
document. In some cases,
additional approvals are
required. To accommodate
this need, additional fields
have been added.
PURCHASES THAT REQUIRE CONTRACTS
Examples of purchases that require contract include, but are not limited to:
�� Contracted Services: Accreditation, Construction, Consultant and Professional
Lecturers, Speakers, Counselors, Critiques, Performances, Panelists,
etc.;
�� Interagency Agreements;
�� Renovations or Construction Contracted by Facilities.
PURCHASES THAT REQUIRE A REQUISITION
Examples of purchases that require a requisition, regardless of dollar amount, include, but are not
limited to:
�� Equipment lease or maintenance agreement;
�� Radioactive materials, hazardous chemicals, pharmaceuticals, and other controlled
substances;
�� Vehicles;
�� Goods and Services greater than $5000 per transaction.
For additional information regarding contracting requirements, see MAPP 03.02.03—Purchase
of Goods, Materials and Supplies through the Purchasing Department.
Page 2
“An obligation incurred by
a person who is not
authorized to commit
University funds or that is
made contrary to
University guidelines
becomes the personal
responsibility of that
individual and not Texas
Southern University.”
Purchases requiring a contract, regardless
of the dollar amount, cannot utilize the
direct pay voucher method.
Regardless of the amount, a requisition
must be used for certain transactions.

VOLUME 1, ISSUE 1, FY2011
WHAT CAN I PURCHASE WITH A DIRECT PAY VOUCHER?
Expenditures initiated on
direct pay vouchers are
subject to the same approvals
prescribed for other
procurements, including BOR
approval, depending upon
types of funds used, good or
services procured, and level
of expenditure. The
following are among the types
of expenditures that may be
requested on a direct pay
voucher without the
involvement of Purchasing or
issuing a contract:
�� Goods costing $5000 or
less per transaction,
including freight and
shipping.
�� Expenditures at any
dollar level for:
��Court costs, criminal,
civil and administrative
��Dues and membership
fees
��Human cadavers, skin,
blood, bones, tissue.
1. The Purchasing staff has sole authority to obligate the
university regarding the purchase of supplies,
equipment and services. Has that authority been
extended to other employees who utilize the DPV?
��Library expenditures
��Postage and postal
services
��Registration fees and
materials
��Training and tuition for
employees
For a complete listing, see
MAPP 03.02.06.
FREQUENTLY ASKED QUESTIONS
Yes, but there are limitations. Only business management personnel
are authorized to make direct purchases of commodities and
services, which are submitted for payment or reimbursement
directly to Accounts Payable via the DPV. Additionally, every
expenditure request must be approved by the appropriate authority
for the cost center against which that expenditure is requested.
2. Who should approve the DPV?
The same approval process utilized for requisitions applies to the
DPV. The next highest ranking authority is responsible for
approving a subordinate’s DPV. If the purchase involves grant
funds, the DPV must be approved by Research and Financial
Services. The DPV is prohibited from paying Title III purchases. A
requestor cannot approve their own DPV.
3. If I use my personal funds to purchase a commodity for
my office, will I be reimbursed by the university via the
DPV?
It depends. If the budget authority authorized the purchase, the
reimbursement will be approved. If the purchase was made without
proper authorization, the reimbursement is subject to be declined.
Page 3
OFFICE OF INSTITUTIONAL
COMPLIANCE
Yolanda Nimmer-Williams,
Director
Lames Junior,
Compliance Officer
Teena Adams,
Compliance Officer
Tokunbo Kehinde,
Sr. Administrative Assistant
713.313.6821
4.Is the DPV form located on the web? If not, where can I
get the form?
The form is currently located in the Public Folders under TSU
FORMS, PURCHASING/ACCOUNTS PAYABLE.
5. I lost my original receipt for a legitimate university
business expenditure. The vendor has provided me with
a vendor statement (i.e., a summarization of charges).
Will this suffice as backup documentation?
No. The support documentation must include an original receipt.
6.Once the DPV is completed, do I submit the form
directly to Purchasing?
The DPV must be approved by the appropriate budget authority,
include all original support documentation along with the Vendor
Hold document and submit it to the Accounts Payable Department
located in Hannah Hall, Room 333.
7. My department is paying my professional membership
dues for this fiscal year. However, every time we submit
the DPV to Procurement Services, they send it back and
state I need to see the Chief Financial Officer. Why?
TSU policy requires the CFO to approve all professional
memberships.