State Appropriated Purchases

State Purchases can involve two different categories:

  1. purchasing on a state contract or
  2. making a purchase on State funds.

For Oracle accounting, State funds are those funds beginning with 10, 40.1xx, or 41.1xx.

Purchasing on a State Contract

Statewide Procurement Division (SPD) awards and manages hundreds of statewide contracts on behalf of state agencies and cooperative purchasing members.

With a massive marketplace and billions of dollars in purchasing power, Texas offers abundant opportunities for vendors of a wide variety of goods and services, including minority- and women-owned businesses.

Information on both systems and available contracts is available on the Texas Comptroller’s website.

The state also has the following contracts for use:

All State contracts have been competitively bid or are considered set-asides and therefore, do not require any additional procurement steps on behalf of the University.

Purchasing on State Appropriated Funds

The State of Texas oversees the use of appropriated funds. Procurement and Contract Services has prepared a guideline for restrictions on these funds.

When using State appropriated funds:

  • No payment may be made out of an appropriation unless the appropriation was encumbered for the payment during the life of the appropriation (no after-the-fact transactions).
  • If an appropriation expires on a date other than Aug. 31 of a fiscal year, then the Comptroller may make a payment out of that appropriation until Aug. 31 of the second fiscal year after the fiscal year during which the appropriation expires.
  • If an appropriation relates to new construction projects or to repair and remodeling projects that exceed $20,000, then the payment deadline is Aug. 31 of the fourth fiscal year after the fiscal year during which the appropriation expires.  In determining whether a repair and remodeling project exceeds $20,000, furniture, equipment, architects’ and engineering fees, and other costs related to the project must be included.
  • A state agency or other governmental unit using funds appropriated by the General Appropriation Act may not expend during the last quarter of a fiscal year more than one-third of the funds appropriated by the General Appropriation Act for that fiscal year.
  • A state agency must charge a purchase of consumables to the appropriation year in which the delivery of the consumable occurred.
  • A state agency must charge a purchase of services to the appropriation year in which the services were rendered.
  • Advance payments are allowed on the following only:  library purchases, payments to federal and state agencies, lease payments, subscriptions, rental fees for a meeting room or exhibit booth, annual maintenance agreements, and registration fees.

HEF (Higher Education Funds) - funds beginning with 41

HEF funds can be used for purchasing:

  • Land either with or without permanent improvements
  • Constructing and equipping buildings or other permanent improvements
  • Major repair or rehabilitation of buildings or other permanent improvements
  • Capital equipment – defined as items that a) are for use in current or future operations and not for the purpose of resale, b) are relatively long lived, c) have physical substance, and d) provide measurable future benefit to the university.  Capital equipment in this context does not have to be $5000+
  • Library books and materials

HEF cannot be used for lease/purchases.

HEF can only be used for education and general buildings and facilities – not auxiliary enterprises.

Page last updated 2:47 PM, May 6, 2019