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• Contents
• DRS Publications

• 7.1 Overview
• 7.2 Health Care Professionals—Required Qualifications
• 7.3 Health Care Facilities—Required Qualifications
• 7.4 Purchasing Medical Assistive Devices and Supplies
  • 7.4.1 Overview
  • 7.4.2 Medical Assistive Devices and Supplies—Noncontract
  • 7.4.3 Medical Assistive Devices and Supplies—Contract
  • 7.4.4 Medical Assistive Devices and Supplies—Nonspecific
• 7.5 General Purchasing Policies
  • 7.5.1 Definitions
  • 7.5.2 Procurement Standards
  • 7.5.3 Taxes
  • 7.5.4 Service Records
  • 7.5.5 Overview of the Purchasing Process
  • 7.5.6 Using Provider Credit Accounts
  • 7.5.7 Purchasing Goods and Services under Contract
  • 7.5.8 Exceptions to Contracts
  • 7.5.9 Purchasing Noncontract Goods and Services from Contract Providers
  • 7.5.10 Fiscal Year
  • 7.5.11 Determining the Program Year
  • 7.5.12 Start and End Dates
  • 7.5.13 Making Monthly and Other Periodic Payments
  • 7.5.14 Crossing State Fiscal Years
  • 7.5.15 Prorating Services
  • 7.5.16 Referrals to Texas Workforce Commission
  • 7.5.17 Planning Delivery Charges
  • 7.5.18 Identifying the Provider and Payee
  • 7.5.19 Obligating the Budget with a Purchase Order
  • 7.5.20 Exceptions to Obligating the Budget with a Purchase Order
  • 7.5.21 Bulk Purchases of Local Bus Tickets for Consumers.
  • 7.5.22 Separation of Duties
  • 7.5.23 Receiving Goods, Services, and Invoices
  • 7.5.24 Authorizing Payment
  • 7.5.25 Documentation Buyers Must Keep
  • 7.5.26 Correcting an Error in the Electronic Case Management System
  • 7.5.27 Applicable Laws and Regulations
  • 7.5.28 Temporary Waiver of CRP Credentials
• 7.6 Purchasing Goods for Consumers
  • 7.6.1 Overview
  • 7.6.2 Services for Consumers
  • 7.6.3 Best-Value Approach to Purchasing
  • 7.6.4 FOB Destination
  • 7.6.5 Purchase Orders for Goods up to $2,000
  • 7.6.6 Purchase Orders for Goods between $2,000 and $5,000
  • 7.6.7 Purchase Orders for Goods over $5,000
  • 7.6.8 Exceptions to Purchasing Procedures
  • 7.6.9 Consumer Tools and Equipment
  • 7.6.10 Goods and Services DRS Does Not Provide
  • 7.6.11 Responsibilities for Purchasing Goods
  • 7.6.12 Accepting Delivery of Goods
• 7.7 Purchasing Services for Consumers
  • 7.7.1 Overview
  • 7.7.2 Comment Section of the Purchase Order
  • 7.7.3 Purchasing One-Time Maintenance Paid Directly to a Consumer
  • 7.7.4 Purchasing One-Time Transportation Paid Directly to a Consumer
  • 7.7.5 Planning and Processing Central Billing for Consumer Airfare
  • 7.7.6 Procedures in the Electronic Case Management System for Consumer Airfare
  • 7.7.7 Responsibility Tables
• 7.8 Verifying, Receiving, and Authorizing Payment for Consumer Purchases, and Other Financial Policies
  • 7.8.1 Verifying Invoice Accuracy and Acknowledging Receipt
  • 7.8.2 Verifying Receipt and Accuracy of the Good or Service and Acknowledging Receipt
  • 7.8.3 Using Interagency Transfer Vouchers (ITV)
  • 7.8.4 Other Financial Policies
  • 7.8.5 Completing DARS 1769, Cash Receipt Transmittal Memo

7.1 Overview

When purchasing goods and services for consumers, DARS staff are subject to state and federal law, as well as DRS policies. The general and specific guidelines in this chapter support

• legal compliance,
• best practice, and
• quality service provision for consumers.

Quality purchasing requires you to make decisions based on

• best-value purchasing (see 7.6.3 Best-Value Approach to Purchasing);
• provider qualifications;
• your professional and ethical obligations (see Chapter 1: Foundations, Roles, and Responsibilities, 1.2.5 Building Ethical Relationships); and
• the Individualized Plan for Employment (IPE), jointly developed with the consumer, that reflects the consumer's informed choices.

7.2 Health Care Professionals—Required Qualifications

(Revised 06/08, 03/09, 08/10, 09/10)

Consumer Procurement and Client Services Contracting (CPCSC) verifies the required qualifications of health care professionals in the electronic case management system.

Listed below are the required qualifications for physicians, specialists, and other health care professionals.

For questions about certification or licensure of other health care professionals, contact the Consumer Procurement and Client Services Contracting physical restoration specialist (PRS).

Note: Counseling services provided by an intern working under the supervision of a licensed provider are purchased at the supervising licensed provider’s payment rate.

Professional	Job Function	Required Qualifications
Advanced practice nurse	Provides medical examinations and/or treatment.	Licensed by the Texas Board of Nursing.
Audiologist	Provides audiological examinations. May dispense hearing aids. May provide basic audiometric assessments.	Licensed by the State Board of Examiners for Speech-Language Pathology and Audiology. To dispense hearing aids, the audiologist also must be licensed by the State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments.
Certified registered nurse anesthetist (CRNA)	Administers anesthesia.	Certified by the American Association of Nurse Anesthetists.
Chiropractor	Provides manipulative treatment of the spine and functional capacity assessments. (For restrictions, see Chapter 5: Services, Chiropractic Treatment.)	Licensed by the Texas Board of Chiropractic Examiners.
Cognitive rehabilitation therapist	Provides cognitive rehabilitation therapy, which focuses on the development of cognitive skills (the ability to perceive, recognize, conceive, judge, imagine and reason) lost or altered as a result of neurological damage. The aim of treatment is to enhance functional competence in real-world situations. The process includes direct retraining, use of compensatory strategies, and/or use of cognitive tools.	One of the following: A psychologist licensed by the State Board of Examiners of Psychologists. A psychiatrist licensed by the State Board of Medical Examiners. An occupational therapist licensed by the Executive Council of Physical Therapy and Occupational Therapy Examiners. A speech and language pathologist certified by the State Committee of Examiners for Speech and Language Pathologists and Audiologists.
Dentist	Provides dental evaluations and/or treatment.	Licensed by Texas State Board of Dental Examiners to practice in the state where services are rendered.
Hearing aid specialist	Dispenses hearing aids. May provide basic audiometric assessments (MAPS 92551 - 92559). May provide hearing aid evaluations.	Licensed by the Texas Board of Examiners in the Fitting and Dispensing of Hearing Aids.
Licensed marriage and family therapist (LMFT)	Provides goal-oriented or problem-centered counseling services as recommended or prescribed by a psychiatrist or psychologist.	Licensed by the Texas State Board of Examiners of Marriage and Family Therapists.
Licensed professional counselor	Provides goal-oriented or problem-centered counseling services as recommended or prescribed by a psychiatrist or psychologist.	Licensed by the Texas State Board of Examiners of Professional Counselors.
Licensed surgical assistant (LSA)	Provides assistant surgeon services.	Licensed by the Texas Medical Board.
Occupational therapist	Provides occupational therapy services recommended or prescribed by a physician, home modifications assessment, and/or job analysis and job-site modifications assessment.	Licensed by the Executive Council of Physical Therapy and Occupational Therapy Examiners to practice in the state where services are rendered.
Optometrist	Provides vision examinations.	Licensed by the Texas Optometry Board.
Pedorthist	Fabricates and supplies below-the-ankle orthotics.	Certified by the Board for the Certification in Pedorthics. (C.Ped: certified pedorthists).
Physical therapist	Provides physical therapy services recommended or prescribed by a physician, home modifications assessment, and/or job analysis and job-site modifications assessment.	Licensed by the Board of Physical Therapy and Occupational Therapy Examiners to practice in the state where services are rendered.
Physician	Provides medical examinations and/or treatment. Exception: A podiatrist licensed in the state where services are rendered may provide medical or surgical services limited to foot conditions.	M.D. (doctor of medicine) or D.O. (doctor of osteopathy) licensed by the Texas State Board of Medical Examiners to practice in the state where services are rendered.
Physician assistant	Provides medical examinations, medication management, and/or treatment.	Licensed by the Texas Physician Assistant Board.
Podiatrist	Provides medical examinations and treatment for foot conditions.	Licensed by the Podiatric Medical Examiners Board. (D.P.M.: doctor of podiatric medicine).
Prosthetist and orthotist	Fabricates and supplies prostheses and orthotics.	Licensed by the State Board of Orthotics and Prosthetics.
Psychiatric-mental health clinical nurse specialists and psychiatric-mental health nurse practitioners	Provides goal-oriented or problem-centered counseling services, and/or medication management as recommended or prescribed by a psychiatrist or psychologist.	Licensed by the Texas Board of Nursing.
Psychologist	Provides or supervises the provision of psychological services. When an individual under the supervision of the licensed psychologist provides services, the licensed psychologist must sign all reports.	Licensed by the Texas State Board of Examiners of Psychologists or licensed to practice in the state where service rendered (unless exempt). Mental health and mental retardation (MHMR) centers and some state agencies are exempt from the licensing act.
Registered nurse first assistant (RNFA)	Provides assistant surgeon services.	Licensed by the Texas Board of Nursing.
Social Worker	Provides goal-oriented or problem-centered counseling services for DRS consumers as recommended or prescribed by a psychiatrist and/or psychologist.	Licensed Clinical Social Worker (LCSW) licensed by the Texas State Board of Social Work Examiners. MHMR Centers and some state agencies are exempted from the licensing act.
Specialist physician	Performs examinations, treatment, and/or surgery.	Physician certified by an American Medical Specialty Board, or the American Osteopathy Specialty Board, or has training and experience to be "eligible" for examination by a specialty board. A physician providing surgery under DRS sponsorship must be board certified or "eligible" for examination by a specialty board in the area of the physician's surgical specialty. The DRS medical director must approve each exception (to request medical director approval, see Chapter 11: Technical Information and References, 11.1 Required Approvals and/or Consultations).
Speech and language pathologist	Provides, with concurrence of a physician, speech and hearing therapy after surgery or trauma affecting speech.	Certified as a speech-language pathologist by the State Board of Examiners for Speech-Language Pathology and Audiology.
Speech trainer	Provides speech training in both expressive (speech language production) and receptive (lip and speech reading) language. May also evaluate and provide training in the use of speech augmentation devices.	Certified as a speech-language pathologist by the State Board of Examiners for Speech-Language Pathology and Audiology.

7.3 Health Care Facilities—Required Qualifications

(Revised 01/10)

Consumer Procurement and Client Services Contracting verifies the required qualifications of health care facilities in the electronic case management system.

Listed below are the required qualifications for health care facilities.

For questions about certification or licensure of health care facilities, contact the Consumer Procurement and Client Services Contracting PRS.

Health Care Facility	Activity	Required Qualifications
General hospital	Provides inpatient and outpatient hospital services.	A current contract with DRS, and Medicare certification, accreditation by the Joint Commission for Accreditation of Health Care Organizations (JCAHO), or accreditation by the American Osteopathic Association.
General or specialty hospital providing inpatient comprehensive medical rehabilitation services	Provides inpatient comprehensive medical rehabilitation services.	A current contract with DRS, and licensure by the Texas Department of State Health Services for comprehensive medical rehabilitation services, unless exempt by law (for example, University of Texas Medical Branch); accreditation by the JCAHO; or accreditation by the Commission on Accreditation of Rehabilitation Facilities (CARF). CARF accreditation must be as a "Medical Rehabilitation Program—Comprehensive Inpatient Category One" if accredited before July 1, 1998, or "Comprehensive Integrated Inpatient Rehabilitation Program" if accredited July 1, 1998, or later.
Ambulatory surgical center	Primarily provides surgical services to patients who do not require overnight hospital care.	Current licensure as an "ambulatory surgical center" by the Texas Department of State Health Services, or Accreditation by the American Association for Accreditation of Ambulatory Surgery Facilities.
Nursing home	Provides nursing home or convalescent care.	Licensed by the Nursing Home division of Texas Department of Aging and Disability Services. Approved by Medicare and Medicaid.

7.4 Purchasing Medical Assistive Devices and Supplies

7.4.1 Overview

This section provides policies and procedures for purchasing medical assistive devices and supplies. Medical assistive devices and supplies fall into three categories, with policies and procedures that are specific to each:

• medical assistive devices and supplies, noncontract;
• medical assistive devices and supplies, contract; and
• medical assistive devices and supplies, nonspecific.

Apply the following policies to all medical assistive devices and supplies, regardless of category.

Bids

Bids are required when a single purchase is expected to exceed $5,000, unless the item is under contract or listed in MAPS. Follow the purchasing guidelines in 7.6 Purchasing Goods for Consumers in addition to the applicable guidelines in this section.

Specifications

(Revised 02/11)

The purchase order must include a complete description of the items to be purchased. (See the ReHabWorks User’s Guide.)

Purchases from Hospitals

Medical assistive devices and supplies purchased from contracted hospitals must be

• listed on the hospital invoice, and
• paid for under the terms of the hospital contract.

To determine the proper procedure to purchase items not listed here, contact the physical restoration specialist (PRS), Consumer Procurement and Client Services Contracting (CPCSC), Central Office.

Ownership of Medical Assistive Devices

Medical assistive devices purchased for a consumer by the DRS are the property of the State of Texas.

Salvage of Used Medical Assistive Devices

When DRS or its authorized representative, including you and/or the area manager, determines that the assistive device has no salvage value, you or the area manager may decide to relinquish ownership.

To determine salvage value or review criteria, contact the DRS property manager at (512) 424-4472.

7.4.2 Medical Assistive Devices and Supplies—Noncontract

(Revised 06/08)

The following procedure applies to noncontract medical assistive devices and supplies. See Examples of Medical Assistive Devices and Supplies, Noncontract for a list of examples in this category.

Noncontract Items Requiring Special Consideration

Item	Required Consideration
Dentures or dental appliances	Obtain approval from the area manager.
Prescription drugs	Obtain a prescription from a physician (M.D. or D.O.), physician assistant, or advanced practice nurse, or the prescription number from the named pharmacy.
Repairs	Repairs to any prosthetic or orthotic devices do not require a medical professional's recommendation or prescription. Payment for repair labor charges must not exceed $50 per hour.
Transcutaneous electrical nerve stimulator (TENS)	The device must be rented for 7–14 days before you may purchase it. If you purchase it, the vendor must agree to apply the rental fees to its total cost.

7.4.3 Medical Assistive Devices and Supplies—Contract

(Revised 06/08, 06/10, 05/11)

The following items must be purchased from a contracted service provider:

• hearing aids;
• hospital beds;
• patient lifts;
• manual and power wheelchairs (fully functional chairs) that are fully constructed or fabricated durable medical equipment units that can be operated immediately by the consumer for whom it was specified;
• power units and controllers;
• seating and positioning systems; and
• scooters.

See Standards for Providers, Chapter 10: Standards for Durable Medical Equipment, 10.1 Scope and Definitions for definitions of each item.

Procedures for Purchasing Contracted Medical Assistive Devices, Excluding Hearing Aids

Use the following procedure to buy all contracted medical assistive devices except for hearing aids.

Contract Items Requiring Special Consideration

Hospital Beds, Patient Lifts, Manual Wheelchairs, Power Wheelchairs, Scooters, or Seating and Positioning Systems. After an initial prescription is received, obtain specifications (type, size, and special features) by arranging for the consumer to be evaluated by

• a physiatrist,
• a physical or occupational therapist, or
• another qualified service provider.

Replacement Wheelchairs. Obtain from the local provider of wheelchair repair services an estimate of the cost for refurbishing the original chair.

Apply best value in considering whether repair or replacement is the more cost-effective course.

When you purchase a replacement chair that differs in size and other features from the chair previously prescribed and currently in use by the consumer, have the consumer reevaluated by a physiatrist or physical or occupational therapist.

Sports Chairs. DRS generally does not purchase nonfolding competition sports chairs intended primarily for sports-related activities.

When a consumer requests a nonfolding chair that appears appropriate for the consumer's needs, DRS sponsorship requires that

• you ensure that the consumer can use the nonfolding chair as effectively as a folding chair in all activities related to completing the employment goal, for example,
  • driving, and
  • loading and unloading the chair into an automobile;
• a physiatrist or physical therapist evaluate, or you observe, the consumer's ability to use such a chair in the above activities; and
• you ensure that purchasing a nonfolding chair will not result in additional DRS expense, such as modifying a van, home, or worksite to accommodate the new chair.

Lightweight Chairs. Purchase a lightweight chair when appropriate for the consumer's needs.

Do not purchase

• more than one set of front casters (for example, 5" hard, 8" pneumatic);
• more than one set of arm rests (for example, desk type, sloped); or
• sports-related options (for example, spoke guards and anti-tip front casters).

Wet weather guards are not considered sports-related items.

Wheelchair Accessories. Except for power units and controllers or seating and positioning systems, replacement parts do not have to be purchased from a contract provider.

Repairs. Repairs do not have to be purchased from a contract provider. For information on wheelchair, scooter, and other repairs, see Noncontract Items Requiring Special Consideration.

Hearing Aids. DRS purchases hearing aids from contracted manufacturers. In certain circumstances, exceptions to this rule may be made; for example,

• access to services from a contracted manufacturer is not readily available without creating a hardship for the consumer (such as requiring the consumer to travel a significant distance to obtain services); or
• a licensed audiologist or hearing aid specialist provides a clinical opinion that an aid not available from a contracted manufacturer would best suit the consumer's vocational needs.

In such a situation, you must request an exception through the DRS management chain to Consumer Procurement and Client Services Contracting (CPCSC).

For help with hearing aid purchases, contact CPCSC Medical Services. For help with hearing aid invoicing and billing, refer to the Manufacturer Contact information.

Use the following procedure to purchase a hearing aid:

See Creating a Service Record for Hearing Aids for guidance on specifications.

7.4.4 Medical Assistive Devices and Supplies—Nonspecific

(Revised 06/08)

A verbal recommendation from a physician, physician assistant, or advanced practice nurse is the only requirement to purchase any other medical assistive device or supply not listed above such as

• catheters,
• colostomy supplies,
• leg bags, and
• latex tubing.

Ensure and document that the recommending professional wants the consumer to have the specified item or items.

7.5 General Purchasing Policies

7.5.1 Definitions

(Revised 12/09, 02/11, 09/11)

Begin date (contract)—The initial date on which contracted goods or services can be purchased from the contracted provider.

Date payment authorized—The date the pay request is recorded in the electronic case management system. The later date when both

• the specifications are met by goods as received or by services as completed; and
• an accurate invoice is received, or corrections are agreed upon, with the provider.

End date (contract)—The final date on which contracted goods or services can be purchased from the contracted provider.

End date (service record)—The anticipated date that a good is to be delivered or a service is to end. An end date must fall within the fiscal year for the program selected. When a service crosses the state fiscal year, the service record must be created with two line items where each starts and ends within a fiscal year—one ending 8/31 and one starting 9/1 in the same calendar year.

Federal fiscal year (FFY)—The time period for federal funding; starts 10/1 and ends 9/30.

FOB destination—A designation applied to the delivery of goods whereby the receiver does not own the goods until they arrive at their destination. FOB stands for "free on board;" the FOB destination refers to the point at which the title to goods transfers. This term does not relate to freight charges.

Interagency Transaction Voucher (ITV)—A request for payment from one state agency to another; the state comptroller simply transfers funds instead of issuing a warrant.

Invoice date—The date an invoice was date-stamped by the DRS office named on the purchase order under the "Invoice To" section. If the invoice had an error, the invoice date is the date the error was resolved with the provider. This date is entered in the invoice date field in the electronic case management system.

PO—See purchase order.

Provider—A vendor.

Purchase order (PO)—A request for a provider to supply goods or services based upon specified terms and conditions.

Receive date—The date a good was received or a service was completed. For detailed information on determining the appropriate date to use for the receive date, see Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions.

Report receive date—The date entered in the electronic case management system to indicate that the provider's report detailing provision of services has been received. The date must be entered within three working days of receiving an acceptable, complete, and accurate report. See Chapter 5: Services, 5.5.4 Supported Employment Services/Quality Criteria for specific guidance about supported employment services reports.

Specification—A specification

• describes a product or service to be purchased, and
• enables DRS and the provider to communicate their expectations for the purchase.

Specification customization—The process of adding detailed information to a level four specification so the provider has a clear understanding of DRS expectations. See also specification and specification levels.

Specification levels—Written descriptions of goods or services that go from general (level one) to detailed (level four) allowing buyers to drill down to what they need to buy. See also specification.

Start date (service record)—The date a good is ordered or the date a service is expected to begin. A start date must fall within the fiscal year for the program selected. When a service crosses the state fiscal year, the service record must be created with two line items where each starts and ends within a fiscal year—one ending 8/31 and one starting 9/1 in the same calendar year.

State fiscal year—The twelve months beginning September 1 and ending August 31.

7.5.2 Procurement Standards

Counselors and designated technicians purchase services and goods for consumers, subject to state and federal law and DRS policies. DRS adheres to the following standards:

• DRS develops and maintains written policies covering the nature and scope of the consumer goods and services it purchases, and the criteria under which each is provided.
• DRS develops and maintains written policies to ensure best-value purchasing through emphasis on balance between
  • quality,
  • timeliness,
  • service after the sale, and
  • cost.
• DRS policies ensure that goods and services are provided in accordance with the Individualized Plan for Employment (IPE) jointly developed with the consumer.
• DRS provides each consumer the opportunity to make informed choices among providers of goods and services.
• DRS maintains an acquisition system for consumer goods and services that ensures that providers perform in accordance with terms, conditions, and specifications.
• All other available resources are identified and used before DRS pays for consumer goods and services.

DRS maintains a written code of standards governing the performance of its employees engaged in acquiring consumer goods and services.

DRS does not discriminate on the basis of race, color, sex, national origin, age, disability, or veteran status in acquiring consumer goods and services.

7.5.3 Taxes

The State of Texas is exempt from paying sales taxes, including

• state, city, local, and transit authority sales taxes; and
• federal excise taxes.

When working with providers, always notify them that purchases made for the state are not subject to Texas sales taxes.

When purchasing goods from providers in other states, out-of-state sales taxes should not be paid when the

• FOB destination is specified on the PO, and
• delivery is to a Texas address.

DRS pays hotel occupancy and car rental taxes.

7.5.4 Service Records

(Revised 02/11, 01/12)

Service records

• help with planning, and
• provide a means to determine projected costs.

Service records can be

• saved without a provider, and
• updated at a later time to generate the purchase order.

Create a service record when goods or services are to be purchased with VR funds. Create line items for the current and next fiscal year when you anticipate extended periods of service.

The electronic case management system service record is a purchasing planning document and budget projection tool. For effective planning, create the service record as soon as the needed purchase is identified.

Before generating the purchase order, review the service record to ensure that all information is correct and current. If necessary, update the

• specification,
• begin or end date,
• vendor,
• service category, or
• other information.

7.5.5 Overview of the Purchasing Process

(Revised 02/11)

The following steps are the same for any purchase:

1. Identify the need and create a service record. If the total cost of the order is
   • $5,000 or less, or is under contract, complete the service record (see 7.6.5 Purchase Orders for Goods up to $2,000, or 7.6.6 Purchase Orders for Goods between $2,000 and $5,000).
   • more than $5,000 and is not already under contract:
     • create and complete a service record, but do not select the vendor, and
     • coordinate a bid process through Consumer Procurement and Client Services Contracting.
2. A CPCSC staff person generates a purchase order. A purchase order is the only valid authorization by which purchases are made.
3. Verify in the electronic case management system (see 7.8.2 Verifying Receipt and Accuracy of the Good or Service and Acknowledging Receipt) and acknowledge receipt of goods or services. Verify that
   • goods were received in good condition and met specifications,
   • services were completed and that deliverables met specifications, and
   • the invoice is accurate.
4. Authorize payment.
5. Close the PO after
   • all goods or services have been received, and
   • invoice(s) have been received and paid.

7.5.6 Using Provider Credit Accounts

(Revised 02/11)

A DRS purchase order (PO) is the only valid authorization by which purchases are made. No purchase may be made using provider credit account cards.

Some providers (for example, Wal-Mart, Sears, Home Depot, Office Depot, and Hobby Lobby) require the use of a credit account.

For such providers, each individual DRS office should have an assigned account number. See the CPCSC Web page Providers Requiring Account Numbers, for detailed information about account numbers and a list, for the user's office, of existing provider account numbers.

When the issuer's office has an account number with the provider, that account number automatically prints on the PO. If an account number does not print on the PO, contact CPCSC for help.

When preparing a PO for another office, be aware that the

• person preparing the PO is considered the "issuer,"
• account number that automatically prints on the PO is that of the issuer, and
• provider sends the invoice or statement to the issuer.

When an office does not have an account number with a provider, or a new account number is needed, Consumer Procurement and Client Services Contracting

• processes the account application, and
• after the provider issues the account number, updates the electronic case management system.

Because some providers require up to four weeks to establish an account, plan ahead to allow adequate time to process the application.

Along with "account numbers," a provider often issues one or more plastic or paper "credit cards." Upon receipt, a DRS office must immediately forward these cards to Consumer Procurement and Client Services Contracting by certified mail. CPCSC logs the account number and destroys the cards.

7.5.7 Purchasing Goods and Services under Contract

(Revised 12/08, 02/11, 05/11)

Consumer goods and services to be purchased under contract include

• hospital services (medical)
  • inpatient or outpatient services, and
  • inpatient comprehensive medical rehabilitation services;
• some medical equipment and durable medical equipment (refer to 7.4.3 Medical Assistive Devices and Supplies—Contract):
  • manual wheelchairs (fully functional chairs),
  • scooters,
  • seating and positioning systems,
  • patient lifts,
  • power wheelchairs (fully functional chairs),
  • hospital beds,
  • power units and controllers, and
  • hearing aids;
• employment services
  • job coaching,
  • supported employment services,
  • job placement (excluding supported employment), and
  • vocational adjustment training;
• post-acute brain injury services
  • residential, and
  • nonresidential;
• community rehabilitation program (CRP) services
  • work adjustment training;
  • room, board, and supervised living;
  • vocational evaluation;
  • personal social adjustment training; and
  • comprehensive employment services; and
• vehicle modification.

For reporting purposes, DRS must link contract numbers to goods or services purchased under contract. When purchasing goods or services that require a contract

1. Select a provider for the service record
   • select the Vendor Detail button,
   • access vendor details by clicking on vendor name, and
   • View Contract by clicking on contract number.
2. Read the contract information carefully to ensure that the contracted good or service being purchased is included and is within the contract start and end dates.
3. When the good or service is not included in the contract information, or when the dates of service fall outside the contract dates, continue to search for a vendor with a contract valid for the desired dates.
4. In the comments section of the purchase order, enter the basic terms of the contract for the specific good or service being purchased. For more information, see Comment Section of the Purchase Order. You may also include supplemental information related to the purchase order in the comment section.

When the purchase order is generated, the electronic case management system assigns the appropriate contract number based on the vendor and the type of purchase being made.

7.5.8 Exceptions to Contracts

Doing Business with Providers Who Do Not Have a Contract

When contracts are the required instrument to establish a business relationship, case-by-case exceptions may be approved only in situations where the exception is

• in the best interest of DRS,
• in the best interest of the DRS consumer, and
• determined not to be in violation of any state or federal laws.

If a consumer needs a medical service at a hospital that does not have a DARS contract, the assigned medical service coordinator (MSC) must contact the regional consumer contract specialist (RCCS) to negotiate a payment rate for the medical service. A DARS3423, Exception to Contracted Hospital Purchase must be completed and submitted through the regional director for final approval by the director of CPCSC.

Exceptions to Existing Contracts

Hospital contracts allow certain payments in lieu of or in addition to the contracted rate when the consumer's circumstances warrant. See "Exceptions to payment rate limits" under Chapter 5: Services, 5.3.3 Hospital Services for instructions including use of DARS3422, Reduced Payment Agreement.

When the area manager authorizes any other exception to a policy regarding a service provided under a contract, such as changes in the service description so that the service is individualized for a specific consumer, approval must be

• recorded on DARS3472, Contracted Service Modification, and
• counter-signed by the contractor.

A copy of the completed DARS3472 must be retained in the DRS consumer file.

Forward copies of the completed DARS3472 to

• the contract manager,
• the regional consumer contract specialist (RCCS) in each region, and
• Consumer Procurement and Client Services Contracting for inclusion in the official contract file.

See Standards for Providers, Chapter 1: Basic Standards/Changes to Services (1-0515).

Exceptions to Contracted Fees

Fees in excess of the contracted fee for a specific service are not authorized, and area managers may not authorize an exception.

7.5.9 Purchasing Noncontract Goods and Services from Contract Providers

Goods or services that do not require a contract can be purchased from a provider that also supplies contracted goods or services to DRS. In this instance, do not select a contract number; instead choose none when prompted. No other comment or action is required.

7.5.10 Fiscal Year

The fiscal year for federally funded programs starts October 1 and ends September 30.

The fiscal year for state-funded programs starts September 1 and ends August 31.

7.5.11 Determining the Program Year

Services

To determine the program year for services,

• select the program year in which the service occurs, and
• prorate when crossing program years.

Reports

Select the program year in which you order the report.

Consumable Goods and Supplies

Select the program year in which the goods and supplies are used.

Nonconsumable Goods

(Revised 02/11)

Select the program year in which you order the goods.

For detailed information, see Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions.

7.5.12 Start and End Dates

The end date is usually within the same state fiscal year as the start date (see 7.5.16 Prorating Services). For programs that have a specific duration,

• the start date may not be earlier than the program beginning date, and
• the end date may not be later than the program termination date.

When creating a service record for services billed monthly, if one or more months are entirely in the next state fiscal year, create separate add items to prorate the cost (see 7.5.16 Prorating Services).

7.5.13 Making Monthly and Other Periodic Payments

(Revised 02/11)

For purchases that have a periodic billing, such as weekly or monthly, set up one service record, and

• if the same amount is due each billing period, use one add item with
  • Quantity equal to the number of billings, and
  • Unit Cost equal to the billing amount; or
• if amounts vary, use an add item for each month.

If, when setting up the purchase,

• the cost is unknown,
  • enter an informed estimate on the service record;
  • generate the PO; and
  • when you find out the amount, change the PO amount up or down before receiving; or
• the billing cycle (daily, weekly) is unknown,
  • contact the provider to determine billing procedures, and
  • if needed, set up a separate service record for each purchase as it is ordered.

Set up all the service records needed when you first identify the need. Do not wait until after placing the order or receiving the invoice.

For receive date information on these purchases, locate the purchase order's service category in Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions.

See Chapter 5: Services, 5.8.2 Maintenance Services and 5.8.3 Transportation Services for specific procedures for maintenance and transportation.

7.5.14 Crossing State Fiscal Years

(Revised 02/11)

Ordering and Receiving. Charge nonconsumable goods and services (for example, provider reports) to the state fiscal year in which they were ordered. The receive date does not have to fall within the start and end dates and may be in the following fiscal year.

Example: Special order of a wheelchair on August 3, 2007, using Program 2007 VR Basic Support.

• The start date is the date the order was placed—08/03/2007.
• The end date is the anticipated receipt date and, because of the electronic case management system requirement, must be within the state fiscal year. In this case, the anticipated receipt date is after the end of the fiscal year, so enter in the electronic case management system the end date of the fiscal year, 08/31/2007.
• Since the chair is a nonconsumable good, the chair's receive date can be later than the anticipated end date. If the chair arrives September 27, 2007, enter 09/27/2007 as the receive date.

Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions provides receive dates for each service category and whether the service can fall outside the start and end dates. The tables also list how to verify receipt and accuracy of goods or services.

7.5.15 Prorating Services

Charge most services to the state fiscal year in which the service occurred. For exceptions, see 7.8.2 Verifying Receipt and Accuracy of the Good or Service and Acknowledging Receipt/Paying in Advance.

When part of a service falls in the next state fiscal year, charge that part to that state fiscal year. When setting up the service record, create two line items, one for each state fiscal year, and prorate the charge proportionately.

Example: When one week of service occurs in August and two weeks in September, charge one-third to August and two-thirds to September.

Tips for Prorating

When you prorate,

• do not put zero in the Unit Amount or Unit Cost. Make an informed estimate of the cost and change the PO up or down later;
• use 30 days for all months when prorating a monthly payment; and
• each line item does not have to be exact, but the total of the line items must exactly equal the total amount due.

Example:

Semester begins August 18, 2007, and ends December 12, 2007.
Tuition is $500.

Calculations:

Total 16 weeks: 1.00 divided by 16 = .0625

August 18 through August 31 = 2 weeks
.0625 × 2 = .125

September 1 through September 30 = 4 weeks
.0625 × 4 = .25

October 1 through December 12 = 10 weeks
.0625 × 10 = .625

Line 1

• Program—FY 07 Program 17 VR Basic Support
• Start Date—8/18/2007
• End Date—8/31/2007
• Unit Cost—$500
• Quantity—0.125
• Total Cost—$62.50

Line 2

• Program—FY08 Program 17 VR Basic Support
• Start Date—9/1/2007
• End Date—9/30/2007
• Unit Cost—$500
• Quantity—0.25
• Total Cost—$125.00

Line 3

• Program—FY08 Program 18 VR Basic Support
• Start Date—10/1/2007
• End Date—12/18/2007
• Unit Cost—$500
• Quantity—0.625
• Total Cost—$312.5

Depending on the budget year, you may be directed to create two line items because of early enrollment opportunities.

Example:

Semester begins August 18, 2007, and ends December 12, 2007. Tuition is $500.

Calculations:

Total 16 weeks: 1.00 divided by 16 = .0625

August 18 through August 31 = 2 weeks
.0625 × 2 = .125

September 1 through December 12 = 14 weeks
1.00 – .125 = .875

Line 1

• Program—FY 07 Program 17 VR Basic Support
• Start Date—8/18/2007
• End Date—8/31/2007
• Unit Cost—$500
• Quantity—0.12
• Total Cost—$62.50

Line 2

• Program—FY08 Program 17 VR Basic Support
• Start Date—9/1/2007
• End Date—12/12/2007
• Unit Cost—$500
• Quantity—0.875
• Total Cost—$437.50

7.5.16 Referrals to Texas Workforce Commission

(Revised 02/11)

Be sure to set up service records for all referrals to Texas Workforce Commission. Use Arranged as the payment method. Select specification

• Level 1—Employment Services and Self-Employment Services,
• Level 2—Local Workforce Center/Texas Workforce Commission Employment Services,
• Level 3—TX Workforce Comm/Local Center Services, and
• Level 4—appropriate service from drop down list.

Do not issue POs for arranged services.

7.5.17 Planning Delivery Charges

(Revised 02/11)

Delivery charges are part of the total cost of the goods being purchased. Determine these costs when planning the purchase, and include them on the purchase order, using one of the following methods:

If the delivery charge is determined by item,

• add it to the cost of each item's service record when setting up the service record, and
• do not add another service record just for delivery charges.

If only the total delivery charge for all items can be determined before the PO is generated,

• create a new service record,
• use the most common specification,
• use the most common service category, and
• include the total delivery charge.

If delivery charges are known only when the order arrives,

• create a separate service record that estimates the cost of the delivery, and
• change it up or down when the actual cost is determined.

If delivery charges are included but were not anticipated, change up the cost on the PO to include the delivery charge before entering any receive information in the electronic case management system,.

If the existing PO cannot be changed up to include the delivery cost,

• create a new purchase order for the delivery charges using the most common specification of the original purchase,
• document in a case note that the purchase order was issued to include the new charges, and
• note the original purchase order number as a comment in the Payment or special instructions section of the new purchase order.

7.5.18 Identifying the Provider and Payee

(Revised 05/10)

DRS buys goods and services from independent vendors or providers. Payees who receive payments from DRS include providers and DRS consumers who receive weekly maintenance and transportation or other supplemental maintenance (see Chapter 5: Services, 5.8.2 Maintenance Services or 5.8.3 Transportation Services). Payees are issued 14-digit Texas Identification Numbers (TIN) based on either a federal identification number or a Social Security number (SSN). The last three digits identify the location where the payee receives payments.

DRS does not purchase goods or services for a consumer from a provider who is serving as the consumer’s representative because of the conflict of interest. The area manager cannot make an exception to this policy.

Goods and services may be purchased from the provider

• before the consumer designates the provider as his or her representative, or
• after the consumer has revoked the provider’s authority to act as his or her representative.

To set up a new payee, or to update information on an existing payee, contact Consumer Procurement and Client Services Contracting

• at (512) 424-4289,
• by email, or
• using the Provider Setup Form.

Linking new providers to specifications may take as many as five days to complete (see Business Procedures Manual, Chapter 23: Accounting, 23.7.5 Adding or Changing Provider Information).

7.5.19 Obligating the Budget with a Purchase Order

When you generate a PO, the budget is committed to pay a provider who provides specified services and goods for a consumer.

If it becomes apparent that the total committed budget will not be used, promptly change down the PO.

Commit budget before you authorize delivery of the goods or services. The Issue Date of the PO must be on or before the Start Date.

7.5.20 Exceptions to Obligating the Budget with a Purchase Order

On rare occasions, an area manager may approve an exception so you can authorize a good or service before obligating the budget with a purchase order. All exceptions must be justified and approval documented in case notes.

If deferring services may endanger a consumer's well-being, you may

• personally authorize hospital or medical services, and
• confirm immediately with a PO.

If the consumer needs services or goods immediately, and a computer is not available, you may

• personally authorize a purchase, and
• confirm immediately with a PO.

Another class of exceptions does not require area manager approval, but must be done immediately when the need appears. This exception must be justified in case notes. After the start date of an existing PO, it may be necessary to

• document unanticipated ancillary services (for example, pathology, radiology, and consultations), which include services that address medical complications arising from previously authorized restoration services,
• document the change in the "Comments" section of the original PO, provided a change in services is not significant, or
• replace the existing PO with a new one (for example, when the specification or the provider changed.

7.5.21 Bulk Purchases of Local Bus Tickets for Consumers

Process multiple consumer bulk POs for local bus tickets, passes, tokens, transfers, etc., through HHSAS.

7.5.22 Separation of Duties

Separation of duties is required between purchasing and payment. The same person cannot create a PO and authorize payment.

The person who generates or changes a purchase order may receive the same purchase order but cannot authorize the payment for that purchase order.

A person who did not generate or change a purchase order can receive and/or authorize payment for that purchase order.

7.5.23 Receiving Goods, Services, and Invoices

(Revised 12/09)

In the electronic case management system, enter the

• receive date within three working days after the receipt of goods or the completion of services.
• invoice date within three working days after the receipt of the complete and accurate invoice, and
• report receive date (if applicable) within three working days after receipt of the complete and accurate report.

Examples

If the goods are received on Monday, the receive date for the goods must be entered by the end of the day on Wednesday.

If the invoice is received on Tuesday, the invoice date must be entered by the end of the day on Thursday.

If the report is received on Monday, returned to the provider for revisions and received with the necessary revisions on Thursday, the report receive date, indicating that the counselor has accepted the report as complete and accurate, must be entered by the following Monday.

7.5.24 Authorizing Payment

When to Authorize Payment. Once both the good or service and the invoice are received, authorize the payment within three working days.

Example:

When the good or service is received on Monday, and the invoice is received on Tuesday, the payment must be authorized by the end of the day on Thursday.

7.5.25 Documentation Buyers Must Keep

(Revised 08/08)

Financial information generally must be kept for three years. For purchases, this includes invoices and all supporting documentation—justifications, bids or quotes, and ITVs. There are some exceptions, however, that are listed in the DARS Records Retention Schedule. Also, financial records kept in the consumer case file are retained with the case file for five years.

Record the document number (PO number) on the invoice and all supporting documentation so it matches the appropriate financial transaction. The document number is important for indexing and retrieving records.

Retrieving Paper Case Files from a Field Office

To retrieve paper case files from a field office, use this procedure.

Retrieving Closed Consumer Paper Case Files from DARS Records Center

Use this procedure to retrieve closed consumer paper case files from the DARS Records Center.

7.5.26 Correcting an Error in the Electronic Case Management System

Contact Consumer Procurement and Client Services Contracting for guidance on the appropriate process for correcting a purchase order, receipt, or contract related error in the electronic case management system.

7.5.27 Applicable Laws and Regulations

Numerous state and federal laws may govern purchasing practices. The following citations are not exhaustive:

• Chapter 2251, Government Code
• Tex. Gov't Code Ann. sec. 2155.382(d)

7.5.28 Temporary Waiver of CRP Credentials

(Revised 01/12, 04/12)

When a CRP provider ceases to have a credentialed staff member to provide credentialed services required by the contract, an exception may be approved on a per PO, per consumer basis. The waiver is specific to the consumer, the PO number, the start, and the end date of services documented on the DARS3490. A new DARS3490, Temporary Waiver of CRP Credentials, will be required for circumstances in which the PO end date has to be extended beyond the issue date.

The temporary waiver is allowed only when it is

• necessary to avoid a break in essential services being provided by a CRP for a DARS DRS consumer, and
• in the best interest of the consumer.

The waiver applies to the following credentials:

• Job Coach and Job Skills Trainer,
• Job Placement Specialist,
• Supported Employment Specialist, and
• Director of CRP Employment Services.

To request an exception, the CRP director must submit a completed DARS3490, Temporary Waiver of CRP Credentials form to you.

Below are the dates, for which the DARS3490 will require the authorized representative approval:

• Job Coaches after November 30, 2011;
• Job Placement Specialists after February 29, 2012; and
• Job Skill Trainers and Supported Employment Specialists after June 30, 2012.

A copy of the approved DARS3490 must be kept in the

• DRS consumer file, and
• contract manager’s file.

Provide the CRP a copy of the approved DARS3490 to be kept in the CRP DRS consumer file.

A copy of the DARS3490 should accompany any invoice for which a waiver was granted to use a noncredentialed staff person.

7.6 Purchasing Goods for Consumers

7.6.1 Overview

This section provides policies and guidelines for purchasing goods for consumers. All staff members involved in the purchasing process must

• deliver to the consumer as quickly as possible goods that are essential to the consumer's employability or IPE objectives;
• conserve funds whenever possible;
• make purchases using the best-value approach; and
• use the highest ethical standards for purchasing and other business transactions with DRS providers.

7.6.2 Services for Consumers

Policies and guidelines for purchasing services for consumers are covered in other sections and chapters of the policy manual, especially 7.7 Purchasing Services for Consumers and Chapter 5: Services. Use the Table of Contents in Chapter 5: Services, to locate information by service category.

7.6.3 Best-Value Approach to Purchasing

Buyers must use the best-value approach when making consumer purchases.

In determining the best value, buyers are not restricted to considering only the purchase price. Buyers must analyze the goods or services to evaluate all appropriate factors when determining best value. These factors include

• installation costs;
• warranties;
• life-cycle costs;
• quality and reliability;
• delivery costs and terms;
• timeliness of the delivery;
• the cost of training associated with a purchase; and
• indicators of probable provider performance (for example, the provider's past performance, financial resources, ability to perform, experience, responsibility, reputation, and ability to provide reliable maintenance and support).

When a purchase is based on factors other than price, document the best-value determination in case notes.

7.6.4 FOB Destination

(Revised 02/11)

FOB destination

• applies to the purchase of merchandise whereby DRS does not own the goods until they arrive and are accepted at the destination identified on the purchase order; and
• signifies that the risk of loss to goods does not pass to DRS until
  • the goods are delivered, and
  • the shipment is accepted.

When the goods are damaged in transit or are not accepted or received, the provider is responsible for shipping new or replacement goods without additional expense to DRS.

Buyers must include FOB destination on purchase orders as a condition of the purchase. If the provider will not ship FOB destination, locate another resource, if possible.

7.6.5 Purchase Orders for Goods up to $2,000

<

To purchase goods up to $2,000,

1. select the correct specification,
2. determine the best-value provider,
3. generate a purchase order,
4. order the goods,
5. acknowledge receipt of the goods, and
6. pay for the goods.

7.6.6 Purchase Orders for Goods between $2,000 and $5,000

Use the following procedure to purchase goods between $2,000 and $5,000.

7.6.7 Purchase Orders for Goods over $5,000

(Revised 02/11)

You must not split purchase orders into dollar amounts under $5,000 to avoid competitive bid requirements.

Use the following procedure to purchase goods over $5,000.

7.6.8 Exceptions to Purchasing Procedures

(Revised 02/11, 05/11)

Durable Medical Equipment

For exceptions in purchasing durable medical equipment, see

• Chapter 5: Services, 5.3.4 Physical Restoration Services or Procedures with Special Requirements, and
• 7.4 Purchasing Medical Assistive Devices and Supplies.

Goods for Vocational Training

When you purchase vocational training, you must not purchase

• more consumable supplies than are required for the training, or
• goods for the provider to use in training DRS consumers.

The area manager must approve exceptions to these restrictions before you issue the purchase order. See also Chapter 5: Services, 5.4.1 Academic and Vocational-Technical Training/Vocational and Technical Training.

Vehicle Modifications

For exceptions in purchasing vehicle modifications, see Chapter 5: Services, 5.7.2 Vehicle Modification Services.

7.6.9 Consumer Tools and Equipment

(Revised 02/11, 06/11)

See Chapter 5: Services, 5.8.10 Tools and Equipment for information about purchasing new tools and equipment.

Consumer excess tools and equipment are serviceable tools and equipment that

• are no longer required by a consumer, and
• have been returned to a DRS field office.

Tools and equipment in good condition are stored by the Property Management Office (PMO) and are available for use by other consumers. They must be ordered by email directly from the PMO.

To order consumer excess items from the PMO (listed in PMO stock list),

1. determine whether the items are available from consumer excess using the PMO stock list available on the DRS Intranet;
2. select Consumer-Excess Equipment from the TYPE drop-down list;
3. if the goods are available, email the following to Property.Management@dars.state.tx.us:
   • detailed information from the PMO stock list, and
   • delivery instructions;
4. copy and paste the email into a case note to document the request;
5. if the goods are not received within 10 calendar days from the date of the order, notify the PMO (by email); and
6. upon receipt of goods, notify the PMO (by email) and copy and paste the email into a case note.

These zero-cost items cannot be processed using the electronic case management system.

7.6.10 Goods and Services DRS Does Not Provide

(Revised 09/08, 06/10, 11/10)

You may not purchase the following goods or services for consumer use (area manager exceptions are not permitted):

• criminal or civil fines or penalties, including traffic ticket fines;
• vehicles that require title of ownership (check with the nearest Department of Public Safety office for answers to specific regulations; for example, many small trailers do not require a title of ownership);
• land;
• buildings that require fixed foundations and are not moveable for use by another consumer;
• payment for registering inventions, patents, trademarks, or copyrights;
• fees for use of a franchise name (for example, Pizza Hut or McDonald's);
• operating capital (for example, for self-employment);
• deposits (for example, utilities or sales tax security);
• bonding fees;
• firearms of any kind or components that are part of a firearm; or
• state or municipal tax assessments on occupations.

Do not pay for dues to a professional association or trade union unless you can justify the purchase as critical to the success of the consumer’s employment or if paying for the dues meets best-value purchasing criteria. Enter a case note in the consumer’s file to justify the purchase.

7.6.11 Responsibilities for Purchasing Goods

Area Manager

(Revised 02/11, 05/11)

Area managers

• oversee all consumer purchases within their areas of responsibility; and
• annually provide to the regional director a plan for monitoring purchases of goods and services in their units.

For purchases requiring approval and consultation, see Chapter 11: Technical Information and Reference, 11.1 Required Approvals and/or Consultations.

Counselor

You and the consumer decide what to purchase. You are expected to conform to DRS policies related to

• selecting goods and services that are consistent with the IPE and informed consumer choice;
• involving the RST, MSS, UST, or MSC;
• obtaining approval from the area manager, when necessary, before taking action on a purchase;
• monitoring budget control;
• selecting and executing the correct procedure for consumer purchasing;
• obtaining pre- and postpurchase reviews by the MSS-UST team on purchase orders for noncontract goods between $2,000 and $5,000;
• verifying and inspecting a purchase, and acknowledging receipt;
• monitoring RST performance in purchases;
• delivering goods to a consumer;
• ensuring that goods and services are being used appropriately by the consumer during the rehabilitation process;
• ensuring separation of duties (between who authorizes the purchase order and the payment); and
• initiating payment.

Rehabilitation Services Technician (RST)

The rehabilitation services technician (RST) may advise you of the cost and availability of purchases under consideration. At your discretion, the RST may work directly with the consumer. When asked by the counselor to purchase goods, the RST

• must be aware of the policies that govern consumer purchases;
• alerts you to possible violation of policy;
• selects and executes the correct procedure for consumer purchasing;
• obtains pre- and postpurchase reviews by the MSS-UST team on purchase orders for noncontract goods between $2,000 and $5,000;
• orders goods using the best-value approach;
• documents all purchasing actions;
• accepts shipment;
• verifies and inspects the purchase, and acknowledges receipt;
• delivers goods to a consumer;
• ensures separation of duties (between who authorizes the purchase order and who makes the payment); and
• initiates payment.

Management Support Specialist (MSS)

The management support specialist (MSS)

• coordinates with CPCSC on purchases requiring bids;
• conducts pre- and postpurchase reviews of purchase orders of $5,000 and up for noncontract goods;
• requests goods over $5,000;
• helps the RST in the purchasing function as designated by the area manager;
• provides technical assistance and serves as a resource to the unit in purchasing consumer equipment or goods;
• ensures separation of duties (between who authorizes the purchase order and who makes the payment); and
• monitors UST actions through samples and observations to ensure appropriateness of consumer purchasing activities.

Unit Support Technician (UST)

The UST

• as determined by unit management, conducts pre- and postpurchase reviews of purchase orders $2,000 and up;
• as directed, reviews consumer equipment purchases to ensure compliance with policy and procedure; and
• ensures separation of duties (between who authorizes the purchase order and who makes the payment).

Medical Services Coordinator (MSC)

The MSC

• may advise you of the cost and availability of purchases under consideration;
• may work directly with the consumer;
• may purchase goods or services as requested by you or identified on the IPE;
• is aware of the policies that govern consumer purchases;
• alerts you and/or the appropriate manager to possible violations of policy;
• selects and executes the correct procedure for purchasing goods or services;
• orders goods or services using the best-value approach;
• documents all purchasing actions;
• accepts shipment, verifies purchase, and acknowledges receipt;
• ensures separation of duties (between who authorizes the purchase order and who makes the payment); and
• delivers goods to the consumer.

Medical Services Technician (MST)

The MST

• may advise the MSC or you of the cost and availability of purchases under consideration;
• may work directly with the consumer;
• may purchase goods or services as requested by you or identified on the IPE;
• is aware of the policies that govern consumer purchases;
• alerts you, the MSC, and/or appropriate manager to possible violations of policy;
• selects and executes the correct procedure for purchasing goods or services;
• orders goods using the best-value approach;
• documents all purchasing actions;
• accepts shipment, verifies purchase, and acknowledges receipt;
• ensures separation of duties (between who authorizes the purchase order and who makes the payment); and
• delivers goods to a consumer.

Responsibility Tables

The tables below apply only to purchase orders that do not use

• contracts (Hospital Services, CRPs, Vehicle Modifications, etc.);
• MAPS codes; or
• fixed fees for purchases.

Purchase orders must not be split into dollar amounts under $5,000 to avoid competitive bids.

Purchase Order Amount	Competitive Bids	Responsibility
$2,000 or less	None	Counselor or RST
Greater than $2,000 but less than or equal to $5,000	None	Counselor or RST requests pre-purchase review by MSS or UST
Greater than $5,000	Required (obtained by Consumer Procurement and Client Services Contracting)	MSS or UST

Purchase Based on Type of Goods	Competitive Bids	Responsibility
Medical equipment, durable medical equipment	Required for noncontract goods greater than $5,000 (obtained by Consumer Procurement and Client Services Contracting)	Counselor or RST
Vehicle modifications	none	Counselor or RST
Consumer excess	none	Counselor or RST
Comptroller contracts	none	Counselor or RST

7.6.12 Accepting Delivery of Goods

(Revised 10/11)

When consumer purchases are delivered to a DRS office, process the deliveries the same way other administrative deliveries are processed:

• Inspect. When the delivery person arrives with purchased goods and before accepting the delivery,
  • verify that the shipment is addressed to the appropriate office,
  • inspect the shipping packages for any visible damage, and
  • ensure that the shipment contains the correct number of packages as stated on the shipping documentation.
• Accept. Acknowledge the shipment by signing the shipping document if the shipment
  • appears undamaged,
  • matches the quantity on the shipping document, and
  • is correctly addressed to the receiving DARS office.
• Document. Assess and note the shipment status.
  • If the shipment appears damaged but the damage seems minor,
    • accept the shipment, noting the number of damaged packages on the shipping document; or
    • refuse the shipment, noting that the refusal is due to damages to the shipment.
  • If the damage is or appears to be severe,
    • refuse the shipment, noting the refusal and the damages on the shipping document; and
    • notify the vendor and the counselor of the damaged shipment.
• Decline. Do not accept collect or COD deliveries or deliveries made to the wrong office. If a vendor erroneously ships collect or COD, refuse the shipment.

Before receiving a purchase in the electronic case management system, use the verification procedures in 7.8 Verifying, Receiving, and Authorizing Payment for Consumer Purchases, and Other Financial Policies and Chapter 11: Technical Information and References, 11.6.5 List of Type Service Descriptions.

7.7 Purchasing Services for Consumers

7.7.1 Overview

This section tells

• how to issue purchase orders (PO) for most services to individual consumers,
• what to enter in the comments section of a PO, and
• how to create a service record and generate a PO for maintenance and transportation.

For information about

• financial policies, see the DARS Procurement Manual (DPM); and
• purchasing goods, see 7.6 Purchasing Goods for Consumers.

Arranged Services

Do not issue POs for arranged services.

Bulk Purchases of Local Bus Tickets (Passes, Tokens, Transfers, etc.) for Consumers

Field offices buy tickets as decentralized purchases in HHSAS.

Referrals to Texas Workforce Commission

Set up service records for all referrals to Texas Workforce Commission. Use Arranged as the payment method. Do not issue POs for arranged services.

Service Record

Once a service record is set up to plan the purchase, generate the PO. Issue POs before the start date.

Specification

A specification

• describes a product or service to be purchased, and
• enables DRS and the provider to communicate their expectations for the purchase.

Printed POs Only

Always use a printed PO to describe the order exactly. Do not rely on a phone conversation with the provider.

PO Specifics

For a PO in the electronic case management system, specify the

• consumer,
• service or good,
• provider, and
• amount.

If you do not know the amount in advance, make an informed estimate and later change the PO amount up or down.

DRS Provider Contract

When DRS has a contract with a provider, check the contract for any discounts or other special terms that apply to the PO. Describe any special terms in the comment section of the PO.

Example: A contract with a CRP indicates the rate for DRS is 25 percent less than the standard rate. The standard rate is $500 a day. The purchase order for five days is $375 a day for a total of $1,875.

No Printed Invoice

If a provider does not submit a printed invoice form, use the invoice form generated from the electronic case management system.

Area Manager Approval

Get area manager approval if needed. See Chapter 11: Technical Information and Reference, 11.1 Required Approvals and/or Consultations, for requirements.

PO Changes

After a PO has been generated,

• changes may be made to any field for a line item (except the description or unit type),
• changes may not be made to Unit Cost after receiving an item.

When you change a PO, send a copy of the changed PO to the provider.

PO Errors

When there is an error on the PO that cannot be corrected

• close the PO,
• issue a new PO, and
• send a copy of the corrected PO to the provider.

Hotel Occupancy Tax

DRS is not exempt from paying hotel occupancy tax on consumer lodging.

7.7.2 Comment Section of the Purchase Order

One function of the comment section of a purchase order is to communicate basic terms of a contract between DRS and the provider. Include, at a minimum, the following:

• payment agreements,
• dates of contract, and
• specific service being purchased.

It is not necessary to type the contract number in the comment section. The electronic case management system provides a prompt to select the contract number at the time a purchase order is generated and includes it in the printed purchase order.

The comment section is also used to explain anything out of the ordinary that providers need to know about the purchase.

Examples:

• Who, if anyone, will pay for part of the purchase?
  • "Medicaid benefits are expected to pay for hospital services through 8/9/07. DRS pays after 8/9/07."
  • "Less any insurance payments that may be collected. Policy Name: Blue Cross and Blue Shield of Texas."
  • "$900 total course cost minus $500 Pell Grant equals $400 that DRS pays."
  • "$1,200 total course cost minus $300 consumer payment equals $900 that DRS pays."
  • "$900 tuition minus $750 Pell Grant payment toward $900 tuition for 100 hours equals $150 that DRS pays towards tuition (payable each month at $1.50 per hour of attendance up to 100 hours)."
• The payment calculation method or schedule (monthly, weekly, or hourly), if there is one.
  • "$900 total course cost minus $450 consumer payment equals $450 that DRS pays (100 hours at $4.50 per hour)."
  • "$1,125 for room, board, and supervised living for three months, to be billed at up to $375 per month."
• Any other special instructions or information, for example:
  • DRS's account number with the provider,
  • the need to notify the counselor if the consumer is absent for more than two consecutive days, or
  • the need to furnish grades to the counselor.

7.7.3 Purchasing One-Time Maintenance Paid Directly to a Consumer

(Revised 07/10, 02/11, 09/11)

See Chapter 5: Services, 5.8.2 Maintenance Services before setting up a purchase order. This process is only for payments of $400 or less made directly to a consumer. If the payment is over $400, contact Consumer Procurement and Client Services Contracting to have the consumer established as a provider. Do not select Petty Cash.

7.7.4 Purchasing One-Time Transportation Paid Directly to a Consumer

(Revised 07/10, 02/11, 09/11)

See Chapter 5: Services, 5.8.3 Transportation Services before setting up a purchase order. This process is only for payments of $400 or less made directly to a consumer. If the payment is over $400, contact Consumer Procurement and Client Services Contracting to have the consumer established as a provider. Do not select Petty Cash.

7.7.5 Planning and Processing Central Billing for Consumer Airfare

(Revised 05/10, 02/12)

State contract airfares are available for consumer travel.

Contract airfare tickets

• are purchased through DARS central billing consumer account (individual corporate card company directly bills DARS), and
• are 100% refundable if cancelled or not used.

A list of contract airfares (departure and arrival cities, airlines, and base airfares) is available from the State Travel Management Program.

The listed airfares are one-way and do not include

• tax,
• segment fees,
• passenger facility charges, or
• other mandatory fees.

Use the following procedure to purchase consumer airfare.

7.7.6 Procedures in the Electronic Case Management System for Consumer Airfare

(Revised 02/11)

Create a service record in the electronic case management system for the quoted airfare, including the transaction fee.

7.7.7 Responsibility Tables

The tables below apply only to purchase orders that do not use

• contracts (Hospital Services, CRPs, Vehicle Modifications, etc.);
• MAPS codes; or
• fixed fees for purchases.

Do not split purchase orders into dollar amounts under $5,000 to avoid competitive bids.

Purchase Order Amount	Competitive Bids	Responsibility
$2,000 or less	None	Counselor or RST
Greater than $2,000 but less than or equal to $5,000	None	Counselor or RST requests pre-purchase review by MSS or UST
Greater than $5,000	Required (obtained by Consumer Procurement and Client Services Contracting)	MSS or UST

7.8 Verifying, Receiving, and Authorizing Payment for Consumer Purchases, and Other Financial Policies

7.8.1 Verifying Invoice Accuracy and Acknowledging Receipt

(Revised 02/11, 06/11, 08/11)

Verify the accuracy and acknowledge the receipt of the invoice in the electronic case management system. If the invoice does not arrive within 10 business days after the expected receipt date for the good or service,

• contact the provider to request an invoice; and
• document in case notes the
  • name of the person contacted, and
  • date of contact.

A cash register receipt is not an invoice. However, an itemized receipt or cash register receipt signed by the consumer may be used to verify receipt of goods.

Procedure for Verifying Invoice Accuracy

Within three working days after the arrival of the invoice and before receiving and paying for the purchase, complete the following steps to process the invoice.

A list of account numbers is also available in the electronic case management system.

7.8.2 Verifying Receipt and Accuracy of the Good or Service and Acknowledging Receipt

(Revised 12/09, 02/11, 01/12, 04/12)

Overview

Verifying receipt and accuracy of orders is an essential part of the purchasing process that actively confirms either that

• the goods were delivered in good condition and met specifications, or
• the services were completed according to specifications.

Once the appropriate condition is met, acknowledge receipt in the electronic case management system.

If goods or services do not meet the appropriate condition listed above, initiate corrections. When the goods or services satisfactorily meet the conditions, acknowledge receipt in the electronic case management system.

Provider Reports

In some cases, DARS purchases a service that requires the provider to develop and submit a report. For example, a medical examination results in a medical report. The receipt date is the date the exam (service) takes place. The report receive date is an additional date required for all services with reports. The report receive date is the date the report is received in the DRS office listed on the authorizing purchase order. You must enter the date in the electronic case management system within three working days of receipt of an acceptable, complete, and accurate report. See Chapter 5: Services, 5.5.4 Supported Employment Services/Quality Criteria for specific guidance about supported employment services reports.

Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions clarifies the service categories that correspond with the purchase of a service with a required report.

Verification

If it is difficult to contact the consumer or representative for verification,

• keep trying, and
• document each contact attempt in case notes.

When you contact the appropriate person,

• determine the status of the purchase, and
• document the contact and receipt status in case notes.

When you cannot contact the person, speak to the area manager for guidance.

When you contact someone other than the consumer or the consumer's representative, see Business Procedures Manual, Chapter 20: Confidentiality and Use of Consumer Records and Information.

For a one-time maintenance or transportation payment, the electronic case management system automatically creates the receive record(s) once a PO is generated. Therefore, the buyer needs to verify only the payment authorization.

Procedure for Verifying Receipt and Accuracy and Acknowledging Receipt

Complete the following steps within three days after arrival of a good or completion of a service, and before paying (for exceptions, see the beginning of this section.

Paying and Filing

(Revised 04/12)

Separation of duties is required between purchasing and payment. The same person must not create a PO and authorize payment for that PO;

• the person who generated or changed the PO may receive but may not authorize payment, and
• the person who did not generate or change the PO may receive and/or authorize payment for the PO.

After verifying and acknowledging receipt of both the invoice and the good or service,

1. authorize payment within three working days of receiving the acceptable good or services;
2. record the PO number on the provider's invoice;
3. file the documentation in the consumer's case file using procedures in Purchasing Policies, Documentation Buyers Must Keep; and
4. after all goods and services and the invoice have been received and paid, close the PO.

When a provider asks about a payment, see Business Procedures Manual, Chapter 23: Accounting, 23.4.1 Researching a Payment.

Paying in Advance

Payment usually is not made in advance of service. The table below lists the only allowable exceptions. Advance payments may be received and authorized any time from the "as early as date" to the actual completion date of the service. The date entered in the receipt acknowledgment in the electronic case management system is the receive date.

For example, if room and board had a start date of 8/16/1999 and an end date of 12/17/1999, you could receive it any day between 8/2/1999 and 12/17/1999. If you enter the receipt on 8/7/1999, the receipt date is 8/7/1999.

Exceptions	Pay as early as
Maintenance and transportation paid to the customer	7 days before the start date
Academic and vocational training and training-related services (when provided by an accredited college or university over a semester, quarter, etc.) Examples: tuition at an accredited college RN or LVN training at a tax-supported hospital.	Time of enrollment
Vocational or technical training (when provided by an accredited college or university)	Time of enrollment
Room and board paid to an accredited college or university	14 days before the start date
State board licenses	14 days before the start date

Paying for Hospitalization

(Added 04/11)

Payments for services delivered at a hospital are subject to the terms of the hospital contract (see Chapter 5: Services, 5.3.3 Hospital Services).

Before authorizing a hospitalization payment, review the supporting hospital bill. To determine the maximum amount DRS will pay,

1. deduct personal items;
2. pay for a private room only when a physician orders one, or when no other room is available;
3. determine the DARS contract rate for the hospital or facility by referring to the hospital contract comments in the electronic case management system;
4. multiply the hospital charges by the contract rate to determine the maximum amount DARS may pay for the bill charges. Payments may not exceed 100 percent of billed charges; and
5. apply any comparable benefit payments before determining the amount DARS will pay for hospital services. (See Chapter 5: Services, 5.3.1 Physical Restoration Services/Comparable Services and Benefits for Restoration Services for the correct payment procedures when using specific comparable benefits.)

7.8.3 Using Interagency Transfer Vouchers (ITV)

(Revised 02/11)

Texas state agencies provide a variety of goods and services for each other, for example,

• Department of Aging and Disability Services provides medical records, and
• Texas Cosmetology Commission provides state licenses.

For some agencies, the state comptroller simply transfers funds from one agency to another through interagency transfer vouchers (ITV) instead of issuing a warrant to make the payment.

Receiving and Paying Interagency Transfer Vouchers (ITVs)

The comptroller maintains a list of agency contacts for RTI numbers.

Determining the Program Year and Receive Date

This section contains guidelines for selecting the appropriate program year for services, reports, consumable goods, and supplies and nonconsumable goods.

Program Year

• Services—year in which the service occurs; prorate when crossing state fiscal years.
• Service with Required Report—year in which the report was ordered.
• Consumable Goods—year in which the goods and supplies are used.
• Nonconsumable Goods—year in which the goods are ordered.

Receive Date

• Services:
  • verified upon completion—the last day of the dates of service.
  • paid in advance—the day payment was authorized.
  • verified upon receipt of the provider's written report—the day the report was received.
• Service with Required Report
  • verified upon completion—the last day of the dates of service.
• Consumable Goods—the date the itemized receipt or DARS3425, Receipt for Items, was signed.
• Nonconsumable Goods—the date the itemized receipt or DARS3425 was signed.

Report Receive Date

Service with Required Report, verified upon receipt of the provider's written report—the day the report was received.

Purchase Type Examples

Following is a list of examples for each of the four purchase types—services, service with required report, consumable goods, and nonconsumable goods:

• services:
  • hospitalization (nondiagnostic),
  • CRP,
  • academic and vocational tuition and training,
  • room and board,
  • maintenance and transportation,
  • physician's services,
  • interpreter services, and
  • hearing aid fittings;
• service with required report:
  • diagnostic hospitalization;
  • diagnostic physician's services;
  • general medical, specialist medical, and other medical exams;
  • psychological and neuro-psychological testing;
  • speech and hearing evaluation; and
  • nonmedical diagnostic services;
• consumable goods:
  • paper,
  • pens and pencils,
  • printer cartridges,
  • file folders,
  • markers,
  • tape, and
  • office supplies; and
• nonconsumable goods:
  • tools and equipment,
  • telecommunications equipment,
  • computers,
  • office equipment, and
  • books.

For detailed information, see Chapter 11: Technical Information and References, 11.6.5 List of Service Category Descriptions.

7.8.4 Other Financial Policies

Voucher Cancellations

It may be necessary to cancel a request for payment after receipt of goods and/or services and invoice have been acknowledged.

Field office staff may cancel vouchers the same day the payment is requested.

All other voucher cancellations must be made by Financial Services, General Accounting. Contact General Accounting when the need to cancel a payment is known at any time other than the day receipt of goods and/or services and invoice are acknowledged.

Warrant Cancellations

It may be necessary to recover state warrants issued for case services, maintenance, or transportation payments.

Forward such warrants the same day they are recovered to Mail Services, Central Office. Mail Services forwards the warrant(s) to Financial Services, General Accounting, for cancellation.

Complete DARS1769, Cash Receipt Transmittal Memo, for each warrant.

For the complete policy and procedure covering cash receipts, see Business Procedures Manual, Chapter 23: Accounting, 23.1 Cash Receipts.

Refunds

Funds are recovered from either consumers or payees usually because payments were

• made out in an incorrect (larger) amount, or
• sent to a consumer or payee not entitled to the money.

When the warrant has been cashed, the consumer or payee must make remittance to DRS in the following order of preference:

1. If possible, a cashier's check or money order payable to Division for Rehabilitation Services.
2. The second preference is a company or personal check payable to Division for Rehabilitation Services.
3. The least preferable option is cash.
   • Accept cash as a last resort, when it appears to be the only form of refund that will be obtained.
   • Do not mail; obtain a money order for the amount (less the cost of the money order) and mail immediately to Central Office.

If possible, send all refunds to Central Office on the day you receive them even though the voucher to which a refund applies may not have been paid.

Complete a DARS1769, Cash Receipt Transmittal Memo, for each check or money order returned to Central Office, following the form instructions.

After completing DARS1769,

1. attach the warrant, check, or money order to the DARS1769. Do not staple warrants or punched card money orders;
2. place the check or warrant and the DARS1769 in a separate envelope, seal it, and print on the envelope: "DARS1769 Enclosed"; and
3. mail it the same day to the Mail Room, Central Office. If that is not possible, secure it overnight in a locked cabinet.

See also Business Procedures Manual, Chapter 23: Accounting, 23.1 Cash Receipts.

Receipt of refunds is acknowledged through the posting, "Central Office Cash Receipts" on the electronic mail statewide bulletin board.

For additional information, see Contract Processes and Procedures Manual, Chapter 9: Monitoring.