Purchase Guidelines

Summary of Accounts

The account summary table below provides a list of account ranges, type of fund for the account range and some general information about that account range/fund type. It also provides a summary view of the expense types allowed or not allowed for expenditure types in that account range/fund type. However, for a full listing of expense types, please use the Object Code Reference Guide to determine if the expense type is allowable on that fund type or account range.

Account Range Type of Funds Purchase Guidelines
1xxxxx and 29xxxx State Funds Must follow state guidelines for all purchases.
  • Use E&G (state) funds for salaries as much as possible since the state pays the benefits for those salaries. State funds should be used for operating expenses as little as possible.
  • Must follow State Travel Management Program.
  • No income may be deposited into these accounts.

Expenses Not Allowed on State Funds:

  • Food/beverages
  • Memberships to organizations that pay a lobbyist
  • Alcohol
  • Gifts
  • Awards to employees greater than $100
  • Sponsorships
  • Foreign travel
  • Student travel
  • Recruitment of out of state students
  • Business meals
  • Moving expenses
  • Tips
20xxxx – 236999 Local-Designated Accounts which are set up for a specific purpose that relates to the educational mission of the university. Must be a legitimate expense that relates to the purpose of the account.
235xxx Local-Designated – From Contract Residuals These are unrestricted residual balance accounts previously from the 461xxx range transferred to the designated range 9/01/2007.
237xxx-249999, 289xxx Local-Designated – University-Authorized Tuition and Fees, Enhancement Fee Accounts Accounts which are set up for a specific purpose that relates to the educational mission of the university.
  • It is important to remember that these funds are tuition/fees paid by students who attend Texas A&M University and we are accountable to the students for each of the expenditures on these accounts.
  • Must follow the same guidelines as other designated accounts.
  • Transfers into and out of these accounts can only be from other like accounts.
25xxxx Local-Continuing Education/Short Courses Fees from conferences and short courses. Expenditures must relate to the conference or short course.

Surplus funds may be used for the furtherance of continuing education and public service efforts of the sponsoring academic unit unless otherwise authorized by the dean.

Alcohol is allowed on these accounts. This is not indicated on screen 8 of FAMIS. The GEB flag must also be set on screen 8.

27xxxx Local-Designated – Service Departments Set up to provide a service to university departments. Supported primarily by internal transfers. Must be a legitimate expense related to the income generating business of the account.
3xxxxx Local-Auxiliary Account generates its own income to cover the expenses. They can have both internal and external customers. Must be a legitimate expense related to the income generating business of the account.
4xxxxx Local-Contracts & Grants Accounts set up to fund a grant or contract with private, state or federal grantors. 
  • Must follow the grant/contract requirements and budget set up for the contract or grant.
  • Must relate back to the purpose of the contract or grant.
  • The PI/PA/department is responsible for knowing what is allowed and disallowed on the contracts and grants. Screen 8 in FAMIS can be used as a tool to see what expenses are not allowed.
50xxxx Local-Gifts – Unrestricted/Discretionary Funds gifted to TAMU with no restrictions on how the funds are to be spent. However all expenditures must provide a business purpose and benefit to TAMU.

There are some type of expenditures that are only allowed on gift funds:

  • Sales tax reimbursement to individuals (should only be occasional since we are tax-exempt)
  • Social Club Memberships
  • Chamber of Commerce Membership – BCS
  • Parking Permits
  • Travel to attend funeral of non-employee or non-student (travel to an employee or employee’s spouse or children or a TAMU student’s funeral can be paid with other local funds)
51xxxx Local-Gifts - Restricted Funds gifted to TAMU with restrictions on how the funds must be spent.
  • Expenditures must relate to purpose and restrictions of the gift.
  • Sales tax reimbursement to individuals (should only be occasional since we are tax exempt)
55xxxx Local-Miscellaneous accounts do not fit another category Generally treated as restricted gift funds.
6xxxxx Local-Scholarship and Fellowship Funds restricted to scholarship or fellowship payments. Normally scholarships are paid out of 16xxxx and 6xxxxx accounts.
  • There are a few times that you may need to set up a new account in another account range and this new account will only pay scholarships. There must be a function code of 60 entered on screen 6 in FAMIS.
  • The only exception to this would be those research accounts which allow scholarships and/or fellowships to be paid and they would have a function code of 15.
8xxxxx Plant Funds Funds to acquire long-lived assets for the institution, renewal and replacement of property, debt service charges and retirement of debt.

Plant fund accounts should be used for expenses related to the purchase of capital equipment, major renovations, and new construction.

Typically plant funds should NOT be used for travel, maintenance and repair of space, equipment rental, or supplies.

9xxxxx Agency Funds Funds held by TAMU for another entity. The money is deposited with the institution for safekeeping.

Does not have to follow TAMU purchasing or disbursement guidelines.

Typically held on behalf of students or organizations.