Get documents about "TEXAS STATE UNIVERSITY SYSTEM REQUEST FOR PROPOSAL MERCHANT CARD
Document Sample
TEXAS STATE UNIVERSITY SYSTEM
REQUEST FOR PROPOSAL
MERCHANT CARD SERVICES
July 31, 2009
TABLE OF CONTENTS
I. Introduction and Current System Merchant Services
II. General Statement of Services Required
III. Proposal Submission Instructions and Qualifications
IV. Current Merchant Service Information
V. Required Services
Attachment A: Transaction History by Campus/Merchant
(Available on the web as noted below)
Attachment B: Fee Proposal Worksheet
Attachment C: General Background Information on TSUS Institutions
Texas State University System
Austin, Texas
Request for Proposal
Merchant Card Services
I. INTRODUCTION
The Texas State University System (the “System”) is requesting proposals for a system-wide
merchant services contract to be awarded November 20, 2009, with service to begin February 1,
2010 and extend through January 31, 2015 as approved by the Board of Regents. This Request
for Proposal (RFP) details the System's goals and the services required.
The System intends to reduce the number of processors and systems currently being used.
Through this contract the System intends to obtain the highest level of service for each of its
institutions regardless of their size or location, to minimize costs and to improve operational
efficiencies. The System is interested in utilizing the best current and forward looking
technology.
This RFP identifies current and required services for each of the institutions detailing transaction
history over the past six months by institution and by merchant account. It specifies all required
qualifications for processors, stipulates service requirements, details historical transaction activity
at all institutions, establishes contract standard provisions to be incorporated in the contract, and
provides all submission instructions. The RFP also allows for the processor to add other
alternatives and ideas which will fulfill the objectives of the System.
It is the intent of the System that the processor awarded the contract will execute one contract
with the System encompassing all institutions of the System. The System is acting for and on
behalf of each of its eight colleges and universities (the “institutions”). Through this contract the
System intends to obtain stream-lined, end-to-end processing to minimize costs and operational
burdens while improving operational efficiency for all its institutions under the one contract. The
contract will fully incorporate the terms and conditions of this Request for Proposal (RFP) and the
proposal submitted in response to it.
The processor will make all required services agreed to by the System available to all institutions
of the System at the proposed pricing levels throughout the contract period.
II. GENERAL STATEMENT OF SERVICES REQUIRED
The institutions which make-up the System (www.tsus.edu) are:
- Lamar Institute of Technology, Beaumont
- Lamar University, Beaumont
- Lamar State College - Orange
- Lamar State College - Port Arthur
- Sam Houston State University, Huntsville
- Sul Ross State University - Alpine
- Sul Ross State University - Rio Grande College
- Texas State University - San Marcos
2
Background and general information on each institution is found in Attachment C. The System’s
administration in Austin does not accept credit cards and will not be part of this RFP process.
III. PROPOSAL SUBMISSION INSTRUCTIONS AND QUALIFICATIONS
By submitting a proposal in response to this RFP, processors will be deemed to agree to the
mandatory contract and service provisions contained herein. This RFP and the proposal submitted
will be incorporated into and form the basis of the final services contract.
1. Proposal Format
In order to fully and equitably evaluate each proposal a standard reply format is required. Each
proposal must include a response to each item in the RFP, in the order given, along with completion
of Attachment B for proposed fees. Only proposals submitted in the prescribed format will be
evaluated for award.
Attachment A contains summarized and detail information for each institution. (a) A listing of
merchant accounts with limited equipment and high-level transaction history is shown in a file
entitled “Account Merchant Accounts” for each institution. (b) A summary of transactions by type
over a six-month period is defined in a file entitled “Merchant Activity” and (c) merchant services
statements are also attached. The amount of information will vary because of reporting capabilities
by the various acquirers. Texas State University reports are internally produced and detailed but all
other institutional information is drawn from the monthly statements. The Attachment documents are
arranged by institution and available at:
http://files.patterson.net/LamarInstituteofTechnology.zip
http://files.patterson.net/LamarStateCollege-Orange.zip
http://files.patterson.net/LamarStateCollegePortArthur.zip
http://files.patterson.net/LamarUniversity-Beaumont.zip
http://files.patterson.net/SamHoustonStateUniversity.zip
http://files.patterson.net/SulRossStateUniversity.zip
http://files.patterson.net/TXState-SanMarcos.zip
2. Schedule for Proposal Submission
The System will make every effort to adhere to the following schedule.
07/31/09 Release of Request for Proposal
08/14/09 2:00pm CST Deadline for all questions pertaining to RFP
08/21/09 2:00pm CST Responses to all submitted questions provided
09/11/09 2:00pm CST Deadline for proposal submission
11/20/09 Board of Regents award of contract
02/01/10 Contract commencement
3
3. Proposal Submission
To be eligible for consideration under this request, a total of seven (7) complete copies of each
proposal shall be submitted by 2:00 pm CST on September 11, 2009 to the address below. Proposals
received after that time will not be accepted. Amendments or additional information supporting the
proposal will not be accepted after the submission deadline unless requested by the System.
The proposal must be submitted in a sealed envelope or packet marked “Proposal for Merchant
Services”. An accompanying transmittal letter must be signed by an individual authorized to bind the
submitting firm, state that the proposal is valid for 180 days from the submission date, state full
agreement with the conditions and requirements of the RFP, and give full contact information
regarding the proposal. Submission of the Proposal must be in both written and electronic form (on
an accompanying CD).
The proposals must be delivered by mail, express mail, or in person to:
Dr. Roland Smith
Vice Chancellor for Finance
Texas State University System
200 East 10th Street - Suite 600
Austin, TX 78701
Telephone 512-463-1887
Fax 512-463-1816
Email roland.smith@tsus.edu
claire.jackson@tsus.edu
There is no limit on the physical size of the proposal but a complete yet succinct, and unambiguous
presentation of the services offered and the fees required will be expected. Proposals should provide
a clear and straightforward description of services and the firm’s ability to meet requirements.
Withdrawal of proposals will be accepted up to the deadline for proposal submission time and date
above.
Any firm submitting a proposal is deemed to have read, understood and agreed to all terms,
conditions and requirements set forth in the RFP.
The selection may be made on the basis of the proposals as initially submitted, without discussion,
clarification or modification. The System reserves the right to request further information or
presentations or to enter into negotiations for terms as part of the evaluation.
4. Pre-Proposal Conference
A pre-proposal conference is not currently scheduled or anticipated. Questions regarding this RFP, or
the services requested in it, will be accepted in e-mail form to Roland Smith, roland.smith@tsus.edu,
on or before 2:00 pm CST, August 14, 2009. Responses to any material question submitted will be
communicated via e-mail to all known proposers by 2:00 pm CST August 21, 2009, as necessary. If
the questions indicate that a pre-proposal conference or conference call is required, all known
proposers will be notified appropriately.
4
5. Selection Criteria
The following criteria will be used as the weighting basis for evaluation of the proposals and the
award recommendation.
40 % - ability to provide services and reporting required,
40 % - proposed service fees,
10 % - customer service issues, and
10 % - experience, creditworthiness and stability of the firm.
Award may not be made to the firm submitting the lowest price proposal. The System will choose
the firm which submits the most responsive overall proposal.
6. System Rights
The System reserves the right to:
- waive any defect, irregularity, technicality, or informality in the proposal or proposal
procedures,
- reject any and all proposals,
- accept any proposal most advantageous to System,
- request additional information or require a meeting with representatives for clarification,
- cancel, revise, and/or reissue this request for proposal,
- negotiate contract terms and conditions,
- modify deadlines, and
- select any proposal deemed to be in its best interest as determined by the System.
IV. SYSTEM MERCHANT SERVICES CURRENT INFORMATION
All the institutions of the System currently utilize merchant services for various type payments.
Registration is a major source of credit card use but others uses range widely and include:
- sports and recreation - continuing education
- retail outlets - libraries
- copiers - web processing
- parking - transcripts
- publications - department charges
Detail available from current processing providers is shown in Attachment A for the last six month period
organized by institution. The variety of information available from the multiple processors with multiple
report formats has been consolidated as much as possible for analysis purposes. Information on the
institutions describes the name and number of merchant accounts, the equipment owned or leased, and
the overall count of transactions plus net sales. For most of the institutions, detail on transactions by
type has also been noted as Merchant Activity. Scanned statements are included by institution.
Currently the institutions receive services on an institution by institution basis from these multiple
processors:
Sul Ross Chase Paymentech
Sul Ross RGC First USA
Lamar Beaumont Hibernia
Lamar Institute Hibernia
5
Lamar Orange First National
Lamar Port Arthur Hibernia
Sam Houston State Bank of America
Texas State San Marcos Global Payments
The institutions accept Visa, MasterCard, American Express, and Discover credit cards as well as debit
cards and accept the cards as a POS and online as well as on PIN and PINLESS bases.
V. REQUIRED SERVICES
A complete and succinct response to each question is required. Responses should be in
the order given and references to additional information provided should be clear for
evaluation purposes.
1. Firm Stability and Background
The System requires a firm which is fiscally sound and able to provide the required services
throughout the contract period. The System represents public funds and as such requires full
transparency and disclosure on financial matters.
a. Describe the firm and include the following: major lines of business; and name, number
and location of divisions or operating units. Provide the firm’s latest annual report or 10K and
other relevant financial information as applicable.
b. Provide current short and long term ratings for the firm from two nationally recognized
ratings agencies.
c. Provide a brief history and background of the firm, including parent and/or subsidiary
companies relating to the merchant card services. Describe your firm’s organizational structure
especially as it applies to service provision and customer service. Does the firm have any joint
ventures in place for merchant services? Explain.
d. How long have you offered merchant card processing services? What is the firm’s future
strategy as it relates to merchant services?
e. What related services, if any, do you offer?
f. Do you use a third party for any segment of customer services or card processing
services? If yes, explain fully.
g. Is the firm HUB certified? If so, by which agency? Does the firm plan to use any HUB
businesses as sub-contractors?
6
2. Firm Competitive Position and Future Commitment to Providing Services
a) What differentiates your firm and the service offered from that of other acquirers/processors?
b) How do you plan to stay current and competitive?
c) What major changes do you see occurring in merchant services in the next five years? What are
the plans to help your customers move to new technologies? What approach is the firm taking in
the development of new services?
d) Explain your firm’s representation on MasterCard or Visa boards or committees.
e) What new services or features have you implemented in the past two years? Do you have any
new services/technologies in implementation currently?
f) Does the firm anticipate major changes in hardware in the next three years? If so, what changes
should the System anticipate and how should it plan for those changes on hardware issues?
g) What formal or informal bank/vendor relationships do you have and how can they be leveraged
in merchant card processing?
3. References and Current Client Base
a) Specify the category and number of customers for which you are currently providing card
processing services. How many higher education institutions/merchants do you currently serve?
What was the firm’s total transaction count and dollar amount processed from 2005-2008?
b) What is the daily average number of transactions currently processed? What is the firm’s
maximum daily processing capacity? At what point is the firm planning to extend its processing
capacity?
c) Where is the firm’s processing center(s)? Is the processing structure designed for redundancy to
address disaster situations? How often are systems tested?
d) What would the System’s volume ranking be among your customers, given the System’s current
number of transactions? What is the transaction volume of your largest customer? Given the
volume of the System, how would the System be classified? (ie. Large corporate, small business,
etc)
e) How do the System’s peak periods (fall, spring and summer registrations) compare to your
system-wide peak periods?
f) How many merchant accounts does the firm serve currently? What is the total average yearly
dollar volume?
7
g) Provide the names, email addresses and phone numbers of four references, preferably those with
similar multi-institution structures like the System and with comparable volumes and
communication capabilities, and who are currently using your card processing services. Select a
mix of long-standing and recently acquired customers. Identify how long these clients have used
your services.
h) Does the firm have customized programs for higher education? Describe fully.
i) Explain why the firm believes it was able to win your last two customers from your competitors.
j) Provide any additional information that is relevant to this RFP and your capabilities to provide the
services requested (e.g., product brochures, articles in trade journals).
4. Relationship Representatives
a) List the names, titles, phone, location, and e-mail addresses and provide brief biographies of the
relationship representatives and senior management that would be directly involved in and
responsible for a contract with the System.
b) Describe the relationship management team that will service the account, as well as their
functional responsibilities and their position in the overall firm. Will there be local representation
for all the system schools?
c) How will services be provided equally to all campuses; on implementation and on an on-going
basis?
d) How many employees does the firm have in each functional area involved in providing this
service? What is the expected turn-around time on issue resolution? Is there any guarantee on
the timing and escalation of issues?
e) How often does the representative meet and review with the component schools to ensure they
are receiving the lowest discount/interchange rates and prevent downgrades?
5. Card Acceptance/Interface Processing
a) Does the firm support all major payment types, debit cards, gift cards, corporate cards, and other
emerging options? Does support vary for any of these?
b) Describe the hardware necessary for acceptance of credit and debit cards (a) with card present
and (b) card not present, (c) using an IVR application, (d) via e-Commerce (internet), and (e)
pin-based debit. What equipment are your recommending or requiring for the System? Does the
firm provide the equipment on a lease or purchase basis? Do you offer an equipment
maintenance plan? If so, what is the turn around time and costs involved?
8
c) Describe the software necessary for acceptance of credit and debit cards (a) with card present
and (b) card not present, (c) using an IVR application, (d) via e-Commerce (internet) and (e) pin-
based debit. Describe the interface requirements and all compatibility issues.
d) Describe the process involved for acceptance of credit and debit cards in the five situations
described above.
e) The System uses various gateways. Can the firm process transactions from various gateways
including Verisign Payflow Pro, Payflow Link, and LinkPoint? Describe fully. Indicate all payment
gateways supported in addition to these noted and address all fees for setup, monthly recurring
charges and per transaction fees on Attachment B.
f) Describe the process to add additional third party gateways.
g) Describe telephone authorization options in the case of communication failures.
h) What supplies will be provided by your firm with a maintenance contract, if applicable?
i) How does the firm test/confirm PCI compliance? What requirements does the firm have? What
testing or support is available? How does the firm qualify the merchants?
6. Authorization Processing
a) What authorization methods does the firm support and which are recommended for the System
(e.g., dial, mainframe dial remote job entry, lease line, frame relay, Internet)? List and describe
alternatives. List any processor specific hardware needed to support each option.
b) What are the procedures to reverse/recall an incorrect authorization? Describe how an after-
authorization return would be handled.
c) Do you have the ability to process internationally? List all countries and currencies where the
System could authorize and settle transactions using toll-free numbers.
d) Describe any limitations on processing such as assigned “windows” for obtaining authorizations
or settlement, number of files allowed per day, the number of transactions and/or dollar limits
per file, or dollar amount per transaction authorized and settled? What limitations are set by
batch? Daily processing? Are there any limitations on the number of files transmitted each day?
Any limitations at all daily?
e) Does your firm maintain direct authorization and settlement links to the various card
organizations, or do you utilize a third party network for authorizations? Describe your
configurations. Is your firm introducing to a direct processor or is it the direct processor?
f) Do merchants incur any monthly access fee to connect to the authorization network? (All fees
and fee categories are to be addressed on Attachment B.)
g) Describe your AVS (address verification and shipping date compliance) process.
9
h) Describe the procedures to be followed if a transmission request is denied authorizations.
i) Provide any authorization differences between various card types.
j) Provide your average response times for dial and lease-line authorization methods for both peak
and normal periods.
k) What is your maintenance and/or replacement policy for leased equipment?
l) Describe the network monitoring system and operation.
7. Settlement Processing
a) Describe the settlement process workflow for all parties explaining any differences by card type.
b) Provide a funds availability schedule by card type. Is this negotiable? Is all funding next day?
Describe. Is any expedited funding available?
c) What is the settlement transmission time frame for Visa, MasterCard, Discover, American
Express, Diners? Does this differ at any time? Include daily cut-off times. Will holidays affect
the settlement process or timing?
d) What is the cut-off time that sales transactions can be transmitted to meet settlement times?
e) Do settlement times affect the System’s processing/discount expense?
f) Is settlement made by ACH or Fed wire? Can settlement details be passed via CTX on ACH
transactions?
g) Do you allow for multiple settlement accounts by merchant or institution?
h) Are settlement amounts listed separately on the bank statement or will they appear as one daily
sum? What level of detail is available? Will Saturday and Sunday activity be combined into
Monday activity?
i) Are settlements on gross amount and fees charged monthly?
j) Does your firm offer split dial for AMEX transactions or is there a pass-through fee?
k) Describe recovery procedures for lost batches.
8. Ticket Retrieval and Chargebacks
a) Describe the ticket retrieval request process along with turn around times. Is this accomplished
totally electronically? Does the firm support document imaging other than facsimile for
transmission of or response to a retrieval request?
10
b) What response times and process does the firm require for ticket retrieval? How do these time
frames compare to Association rules? State the average elapsed time from receipt of a retrieval
request to merchant receipt.
c) Define the chargeback cycle. What percentage of chargebacks is handled without merchant
involvement? Does the firm have a standard rule-based logic to facilitate dispute resolution
processing?
d) On average, how often are chargebacks reversed? State your reversal rates (without merchant
involvement) in total and by chargeback type in the last 12 months.
e) Will the firm provide a designated contact person or a department to help the System manage
chargebacks specifically?
f) What reporting is used? Define and give examples. What tools do you have for reconciliation
and reporting on chargebacks?
g) Are credit card chargebacks and debit adjustments netted from daily proceeds, or are they
debited separately? Are funds debited from the operating account or a separate escrow account?
Can the information be tied back later? Show examples.
h) Will the System receive credit of merchant fees for chargebacks? When are they credited?
i) Does the firm have the capability to archive, retrieve transaction information, including signatures
for bankcard transactions and non-bank card transactions? What information is stored and for
what period of time? What system is available to the merchant to enable retrieval of this
information online?
9. Debit Card Processing
a) Does the firm support BIN (Bank Information Number) file management to differentiate between
debit and credit card transactions?
b) Describe the firm’s debit card processing capabilities. Which networks are used? Which are
supported? What differences, if any, in workflow occur from credit cards?
c) Describe the firm’s PIN and PINLESS debit card processing.
d) Are debit card transactions routed automatically to the lowest cost network? Descibe.
10. Technical System Capabilities
a) Describe the processing platforms pertinent to the firm’s recommended solutions for the System.
Provide system specifications. Describe your capacity and scalability for the System’s various
sized institutions.
b) Is the firm’s processing software CPS (Custom Payment Service) compliant?
11
c) Does the firm’s software provide for integration in interface alternatives (such as XML, SOAP,
Java, C++, COM, Perl, etc.)
d) Does the firm’s processing software support Purchasing Card Levels II and III?
e) What is the firm’s process for handling test transactions? Are test cards provided and if so, what
types?
f) How far back are transactions verified with AVS? Describe the process.
g) Outline the security measures in place for the protection of data transmitted for processing. Are
all the major verifications available (CVV for Visa, CID for AmEx, and CVC for MC)? Do you
support CVV2 (Card Verification Value 2)?
h) Is data imaging (e.g., signature capture) available? If so, describe.
i) Is the firm able to process smart card transactions? If so, describe.
j) Does the firm have virtual terminal capabilities? If so, describe.
11. Transmission Issues
a) Describe the firm’s recommended transmission method and options (e.g., dial, lease line, batch,
real-time, Internet) including limitations and advantages/disadvantages.
b) Describe the monitoring and notification process if a transmission fails.
c) Does the firm’s processing system identify and eliminate duplicate transactions?
d) Are there any limitations on the number of files transmitted each day?
12. Security
a) How does the firm handle PCI compliance initiatives? How do you qualify merchants?
b) How does the firm make clients aware of new PCI initiatives and general information?
c) What PCI training is available? What consulting is available? Are there charges for these
services?
d) Describe the security measures used to prevent unauthorized user access to either the system or
the data.
e) Describe the security measures used to protect Internet transactions.
f) Describe the procedures and policies in place to prevent internal fraud. Where does liability fall
in the process of recouping loss due to such fraud?
12
g) Describe all fraud protection tools. What options are available (Verified by Visa and MasterCard
Secure Code) or does the firm have other/additional proprietary security functions?
h) Describe your disaster recovery and system recovery processes.
13. Disaster Recovery
a) Does the firm have a continuity plan for your processing systems and platforms in a disaster
situation? Describe your local and system-wide back up and/or redundant systems.
b) Describe the firm’s “hot-site” back up capabilities in case of a complete site failure. How often
are systems tested?
c) When was the last time use of your back up system was required, the circumstances, and the
length of time the back up system was in use.
d) What is the expected time frame to become operational should a catastrophic event occur at a
merchant site? What is the firm’s role in the process?
e) What has been the firm’s up-time percentage the last two years? Provide system availability
statistics for the current and prior year. Over the past year, what was the longest period that
you were unable to authorize transactions? Describe the situation, including the source of the
problem and the time it took to fix the problem.
14. Information Reporting
Complete and timely online reporting is a critical factor for the System. The System requires full
online reporting and download capabilities including the ability to define and sort information at
various levels. Reporting should be comprehensive and allow for customization. The firm should
make every effort to fully describe and illustrate the reporting capabilities in their response.
a) Describe all reports available and the software used to receive and view reports. Provide an
overview of reporting cycles, procedures, and capabilities. Provide a sample of each detail and
summary report available or a link to sample reports online. Is all information and all reports
available on the Internet?
Define the download capabilities, level of customization, and drill down capabilities available on
online reporting and reports. Describe the daily and/or monthly reconciliation reports available to
the merchant. Define:
standard reports (transaction reports, funding reports, etc.)
special reporting capabilities
level of detail available
retrieval capabilities
imaging capabilities
access mode
reporting frequency
13
b) What is the standard delivery time frame for reports and statements? What alternatives are
available?
c) What delivery methods are used for reports (e.g., mail, email, and fax) on reports and
statements?
d) Does the firm retain or archive reports for clients? Can all reports be downloaded?
e) Is historical information regarding sales, refunds, and chargebacks maintained in a database for
access by the merchant? If a merchant needs historical reports (from a previous reporting
period) or a specific time frame how are they made available? How far back are reports
available? How long is reporting data stored in your system? How much time does it take to
retrieve historical reports or data?
f) Describe how multiple merchant numbers are reported and the flexibility afforded the merchant
for customizing the reports. Can the merchant “roll up” specific groups for reporting independent
of other groups?
g) Can reports be tailored to send specific sections, for example, report groups comprising a subset
of merchant numbers, to different locations? Is there an additional cost for this service? What
charges are involved in customized reports?
h) Can reports be tailored to specific financial accounting time schedules?
i) Describe ad hoc reporting capabilities.
j) Do reports encompass/include AMEX and Discover transactions for reconciliation and research
purposes?
j) Describe the training and re-training available for the firm’s reports.
k) Can the firm provide institution-wide and System-wide reports and institution-wide reports as
well as merchant reports? Define and describe.
l) Provide a sample statement.
15. Implementation
a) The implementation target date for these services is February 1, 2010 however the System
realizes that simultaneous implementation may not be feasible. Address how the company would
schedule implementation for all the institutions to come online as quickly as possible.
b) Describe the merchant and institution implementation process and the expected time frame for
implementation. Focus on (a) merchants which will have to be transferred from another
processor as well as (b) any new merchant .
c) Describe the merchant training process with regard to (a) new merchant training or re-training
from a prior processor and (b) ongoing training (e.g., courses offered, frequency, location, and
cost).
14
d) After initial implementation, how does the individual institution setup new merchant accounts?
How long is that process?
d) How are updates and dissemination of PCI and industry-related rules or regulatory changes
accomplished?
e) Does the firm publish a newsletter covering industry issues, rules, and regulations? How often is
this published? How is it disseminated? Provide the latest copy.
f) Specify the persons, by name and function, which will have primary responsibility for merchant
implementation and training.
g) Does the firm provide fraud-management training or awareness programs?
16. Customer Service
a) Is customer service available 24/7? How is it provided (phone or email)? Are there any charges
for technical or customer support services?
b) Are customer services centralized or decentralized?
c) Describe the promotional support you provide (e.g., signs, supplies, funds for specific purposes,
advertising allowance). Is there any additional cost for this support?
d) Describe the firm’s customer service organizational structure. Is the customer service function
performed in-house, or is it outsourced? Where would the System’s support team be located?
e) Will a specific customer service representative be assigned to handle this business? Describe the
responsibilities of the customer service personnel, including the chain of command for problem
resolution.
f) Does the firm have scheduled periodic meetings with customers or client advisory groups to
review the service? Does the firm organization host or sponsor focus groups, on-site training,
user groups, etc.? If so, describe the frequency and topics of discussion.
g) Describe your multilingual customer service support capabilities.
h) What are the hours of operation for the customer service unit in the Central Time Zone?
i) Are there established turnaround times for research items? If so, specify.
j) What is the firm’s history in meeting established response times?
k) Do you offer technical support for the software you provide? If so, provide the hours of support
operations.
15
l) How will you help the System and its institutions to reduce merchant services costs and manage
downgrades? What reporting and tools does the firm have to assist the System in this process?
What education assistance is directed to a decentralized organization like the System to achieve
processing efficiency?
m) Describe the dispute process and procedures for both cardholders and merchants.
n) What are the procedures to correct duplicate transactions? Does your system identify and
eliminate duplicate transactions automatically? Describe process.
o) Does the firm offer processing solutions to perform (a) deferred billing, (b) installment billing and
(c) recurring billing?
p) Describe maintenance and replacement services for leased equipment. All costs for the service,
shipping, etc. Are to be reflected on Attachment B.
q) Do you periodically provide cost-of-acceptance analyses for clients to ensure the best application
and advantage?
17. Pricing and Contracts
a) If the System is unable to execute a System-wide processing contract and only certain
institutions execute a contract with your firm, what, if any, changes will be made to the proposed
terms, conditions and fees to the executing institutions?
b) Provide a price schedule for the services described in the RFP and any other unspecified costs
required to provide the service on Attachment B. Describe the firm’s overall pricing structure. Is
the firm offering a fixed cost plus surcharges fee or a interchange plus fee?
c) List and define transaction fees for authorization, settlement, network, communications and any
other fees on Attachment B. Additions to the given form are expected. Include any one-time or
set up charges, research fees and include all other fees or charges that will or could be charged
(e.g., interchange rates by location, regular and ad hoc reporting costs). The System will not be
obligated to pay for any fees not specified in the proposal. Please utilize Attachment B and its
format as much as possible for evaluation purposes and complete all the questions in the second
example section of the form. All fees not currently listed should be added to the Attachment and
fully defined.
d) List all of the firm’s possible “non-qualified surcharges” categories (such as reward card fees,
etc.) The fees for these are to be included on Attachment B.
e) Detail any change in association fees (Visa and MC) that would be charged through the program
from the published interchange rates of these companies.
f) Please provide bundled and unbundled pricing as applicable and consider both fixed and variable
rates for the processing fee of the firm.
g) Please describe the adjustment process for downgrades and the timing of them.
16
h) When are discount fees deducted from the DDA account? Are discount fees calculated on gross
or net sales?
i) Provide a pro forma analysis based on the System’s indicated volumes and service requirements.
j) Can customers order charge slips, signs, imprinters and other supplies through you or directly
from a vendor? How are the orders handled? What is the normal shipping time?
k) How and when is the customer notified of price adjustments? Processor fees for the contract are
set for the contract period? What if any prices are adjusted on a regular basis (semi-annual or
annual)? Define and describe.
l) Provide a copy of the anticipated applications and contract to be signed with the System. The
System is planning to execute one contract the terms and pricing for which will extend to all
institutions of the System.
17
ATTACHMENT A
INSTITUTION AND MERCHANT SERVICES ACOUNT INFORMATION
In an effort to give proposers the best possible information of activity within the institutions,
merchant services transactions and category information has been gathered from monthly
statements provided to the institutions from several different processors and providers.
Complete information has not always been available from all sources and the format and
nomenclature for the data varies.
To provide standardized and organized information two basic spreadsheets have been created to
consolidate data for presentation. The two primary formats are:
(a) Merchant Account Information by Institution. This spreadsheet lists the
merchant accounts, the identifying account numbers, the equipment in place (if
available) and high level summary transaction information.
(b) Merchant Account Activity. This spreadsheet summarizes six months of data for
Visa, MasterCard, Discover and American Express with the number of transactions,
net sales, and average ticket size as well as the frequency of other type charges for a
profile of each merchant account. Certain of the institutions have provided additional
detailed information and these have been attached as individual files.
In addition to these summarizing spreadsheets, sample monthly statements are provided in order
to allow for additional analysis by proposing firms, if desired.
Note that Sul Ross Alpine and Sul Ross Rio Grande are administered as one and therefore are
shown as one institution.
The information files have been placed in compressed file folders by institution. These files can
be retrieved on the web at the following addresses:
http://files.patterson.net/LamarInstituteofTechnology.zip
http://files.patterson.net/LamarStateCollege-Orange.zip
http://files.patterson.net/LamarStateCollegePortArthur.zip
http://files.patterson.net/LamarUniversity-Beaumont.zip
http://files.patterson.net/SamHoustonStateUniversity.zip
http://files.patterson.net/SulRossStateUniversity.zip
http://files.patterson.net/TXState-SanMarcos.zip
If you have any difficulty in opening these files, please contact linda@patterson.net.
Attachment B - Part #1
Schedule of Proposed Fees
Texas State University System
As part of your response, provide a complete schedule of the fees to be applied to merchant services for the
Texas State University System in response to the RFP dated July 31, 2009. Complete both worksheets.
All fees required to provide the service must be provided. Alternative formats to provide those fees are acceptable as
long as all fees are defined and categorized for analysis purposes. The format below and on the second worksheet
should be utilized - but extended as necessary - if possible to facilitate evaluation.
Description Proposed Fee Notes, as applicable
Processor Levied Fees Levied by:
Minimum Monthly Discount Fee/Minimum Account Billing
Credit Card Transaction Fee
Assessment Fees
Debit Card Transaction Fee (with PIN) online debit
Debit Card Transaction Fee (without PIN) offline debit
Debit Card network Fee
Proprietary Card Transactions
Discount Rate - Qualified
Discount Rate - Non-Qualified
ACH Fees
Per authorization Fee
Voice and VRU Authorization
Dial Up
Leased Line
ISDN
Wireless
Processing of AmEx and Discover
Processing of Diners Club Cards
Address Verification
Chargebacks
Statement Fee
Application Fees
Daily Close-out Fee
Non-Qualified Surcharges
Pass-through Fees Levied by: Card Associations and Networks
Interchange Fees
based on type capture and merchant category code
Assessment Fees
Visa per transaction
Mastercard per transaction
Access fee per transaction
Visa per transaction
Mastercard per transaction
Discover and Diner's
Switch fees (PIN debit cards)
Common Payment Service Fees Levied by:
Transaction fees
American Express Fees Levied by:
Discount rate - AmEx cards
Discount rate - Prepaid cards
Split transaction fee
Discover Fees Levied by:
Discount rate
Discount rate - Prepaid cards
Page 1 of 2
Attachment B - Part #1
Schedule of Proposed Fees
Texas State University System
Description Proposed Fee Notes, as applicable
Online Reporting Fees
By reporting firm/service:
Online Reporting
Terminal and PC Services (Specify Equipment Manufacturer and Model) Levied by:
Equipment Fees (POS Terminals)
Terminals
Lease/Purchase
Printers
Lease/Purchase
Pin pads
Lease/Purchase
Software
Reprogramming of System Owned Equipment
Account Opening and Maintenance Services Levied by:
Set-up - Instiallation Fees
On-site Implementation Fee
Bank Set-up Fee
Program Maintenance
Reporting Maintenance
Interface software fees by product
Interim accountopening fees
Maintenance and Prior Day Reporting
Maintenance and Same Day Reporting
Reprogramming Services
Technical Support
Supplies
Shipping Expenses for Supplies
Consulting Services
Training Levied by:
On-site training
Telephone Training
Phone Re-Trainng
Additional On-going training
Other: Levied by:
Page 2 of 2
TABLE 1
TEXAS STATE UNIVERSITY SYSTEM
Revenue Financing System
Pledged Revenues
2004 2005 2006 2007 2008
Available Pledged Revenues Not Including
Fund Balances (1) 280,347,416 316,970,314 348,110,026 397,165,060 397,263,787
Pledgeable Unappropriated Funds and
Reserve Balances (1 & 2) (2) (2) (2) (2) (2)
Total Pledged Revenues 280,347,416 316,970,314 348,110,026 397,165,060 397,263,787
(1) The Available Pledged Revenues shown above consist of tuition, designated tuition, student center fees, and recovery of indirect
costs for federal grants and contracts, federal pass-through grants from other agencies and state grants and contracts. Prior to
1997, certain pledged revenues were characterized as the "building use fee" of the University System. In 1997. The Texas
Legislature passed legislation that characterized the "building use fee" as "tuition"
(2) In addition to current year Pledged Revenues, any unappropriated or reserve fund balances remaining at year-end are available
for payment of the subsequent year's debt service. Financial reporting changes adopted by the State of Texas beginning with FY2002
comply t Governmental Accounting Standards Board p o ou ce e ts preclude the continuation of this data element since it is
to co p y with Go e e ta ccou t g Sta da ds oa d pronouncements p ec ude t e co t uat o o t s e e e t s ce t s
no longer separately reported.
Maximum Annual Debt Service Over Remaining Life of Parity Debt (A) 65,594,340
(A) Includes Prior Encumbered Obligations, Outstanding Parity Debt and the Bonds.
1
TABLE II
TEXAS STATE UNIVERSITY SYSTEM
Debt Service Requirements
Outstanding Total
Fiscal Debt The Bonds (2) Annual Debt
Year Service (1) Principal Interest Total Service
2008 608,463 32,965,001 24,611,496 57,576,497 58,184,959
2009 611,688 36,820,000 28,162,652 64,982,652 65,594,340
2010 613,763 33,565,000 30,728,384 64,293,384 64,907,147
2011 614,200 33,320,000 29,093,816 62,413,816 63,028,016
2012 182,950 32,755,000 27,596,829 60,351,829 60,534,779
2013 183,075 33,670,000 26,000,422 59,670,422 59,853,497
2014 178,125 34,810,000 24,434,698 59,244,698 59,422,823
2015 183,025 34,265,000 22,770,985 57,035,985 57,219,010
2016 182,700 34,340,000 21,047,085 55,387,085 55,569,785
2017 35,795,000 19,353,186 55,148,186 55,148,186
2018 37,600,000 17,566,774 55,166,774 55,166,774
2019 32,165,000 15,699,367 47,864,367 47,864,367
2020 , , , ,
33,800,000 14,087,275 , ,
47,887,275 , ,
47,887,275
2021 33,410,000 12,398,675 45,808,675 45,808,675
2022 34,055,000 10,759,012 44,814,012 44,814,012
2023 24,715,000 9,112,819 33,827,819 33,827,819
2024 22,235,000 7,877,913 30,112,913 30,112,913
2025 23,375,000 6,751,700 30,126,700 30,126,700
2026 24,540,000 5,567,600 30,107,600 30,107,600
2027 21,165,000 4,324,375 25,489,375 25,489,375
2028 22,225,000 3,233,750 25,458,750 25,458,750
2029 9,055,000 2,122,500 11,177,500 11,177,500
2030 9,515,000 1,669,750 11,184,750 11,184,750
2031 9,985,000 1,194,000 11,179,000 11,179,000
2032 5,385,000 694,750 6,079,750 6,079,750
2033 4,730,000 425,500 5,155,500 5,155,500
2034 3,780,000 189,000 3,969,000 3,969,000
Total 3,357,988 694,040,001 367,474,313 1,061,514,314 1,064,872,301
(1) Texas State University - San Marcos, Series 1986 (Housing) and Series 1996 (Utility
System). Excludes the Refunded Bonds and Taxable Refunded Bonds.
(2) Texas State University System Series 1998A, 1998B, 1998 Taxable, 2000, 2001,
2002, 2002A, 2003, 2004, 2005, 2006, 2006A and 2008.
2
TABLE A-1
TEXAS STATE UNIVERSITY SYSTEM
Headcount Enrollment
For the Most Recent Five Fall Semesters
Fall 2004 Fall 2005 Fall 2006 Fall 2007* Fall 2008*
Angelo State University 6,137 6,156 6,218
Lamar University - Beaumont 10,804 10,595 9,906 10,213 13,280
Lamar Institute of Technology 2,543 2,711 2,416 2,590 2,885
Lamar State College - Orange 2,047 2,143 2,409 2,003 2,147
Lamar State College - Port Arthur 2,423 2,509 2,009 2,325 1,985
Sam Houston State University 14,335 15,357 15,903 16,416 16,612
Sul Ross State University 1,967 1,918 1,829 1,774 1,841
Sul Ross State University - Rio Grande College 1,056 1,006 948 958 939
Texas State University - San Marcos 26,799 27,129 27,503 28,132 29,105
Total 68,111 69,524 69,141 64,411 68,794
* These columns exclude Angelo State University (ASU). The Texas Legislature
3
TABLE A-2
TEXAS STATE UNIVERSITY SYSTEM
Graduate Headcount Enrollment
For the Most Recent Five Fall Semesters
Fall 2004 Fall 2005 Fall 2006 Fall 2007* Fall 2008*
Angelo State University 551 552 475 N/A N/A
Lamar University - Beaumont 1,683 1,444 1,442 1,854 4,919
Lamar State College - Orange A A A A A
Lamar State College - Port Arthur A A A A A
Lamar Institute of Technology A A A A A
Sam Houston State University 2,038 2,127 2,136 2,269 2,313
Sul Ross State University 523 483 529 537 580
Sul Ross State University - Rio Grande College 393 324 280 272 219
Texas State University - San Marcos 4,384 4,149 3,923 4,084 4,302
Total 9,572 9,079 8,785 9,016 12,333
A - These are freshman and sophomore level institutions. They offer no graduate programs.
* These columns exclude Angelo State University (ASU). The Texas Legislature
transferred ASU to the Texas Tech University System effective 09/01/2007.
4
TABLE A-3
TEXAS STATE UNIVERSITY SYSTEM
Full-Time Equivalent Enrollment
For the Most Recent Five Fall Semesters
Fall 2004 Fall 2005 Fall 2006 Fall 2007* Fall 2008*
Angelo State University 5,213 5,294 5,164 N/A N/A
Lamar University - Beaumont 8,138 8,094 7,670 7,817 9,146
Lamar State College - Orange 1,321 1,316 1,262 1,274 1,359
Lamar State College - Port Arthur 1,515 1,492 1,466 1,410 1,245
Lamar Institute of Technology 1,785 1,920 1,743 1,871 2,075
Sam Houston State University 11,691 12,721 13,177 13,479 13,656
Sul Ross State University 1,563 1,516 1,410 1,319 1,403
Sul Ross State University - Rio Grande College 592 561 510 515 523
Texas State University - San Marcos 21,356 21,706 22,006 22,869 23,494
Total 53,174 54,620 54,408 50,554 52,901
Note: Undergraduate Full-Time Load - 15 Hours, Graduate Full-Time Load - 9 Hours.
* These columns exclude Angelo State University (ASU). The Texas Legislature
transferred ASU to the Texas Tech University System effective 09/01/2007.
5
TABLE A-4
TEXAS STATE UNIVERSITY SYSTEM
Headcount Enrollment by Residency Status
For the Most Recent Five Fall Semesters
Fall 2004 Fall 2005 Fall 2006 Fall 2007(1) Fall 2008(1)
Texas Residents 65,450 66,995 67,535 61,994 66,203
Non-Texas Residents 1,235 1,364 1,313 1,153 1,354
Non-US Residents 1,426 1,165 1,244 1,182 1,237
Total 68,111 69,524 70,092 64,329 68,794
(1) These columns exclude Angelo State University
6
TABLE A-5
TEXAS STATE UNIVERSITY SYSTEM
Admissions and Matriculation Information (1)
For the Most Recent Five Fiscal Years
2004(1) 2005 (2) 2006(2) 2007(2)(3) 2008(2)(3)
Applications Submitted 58,524 56,140 54,287 53,590 53,345
Applications Accepted 47,675 39,929 40,760 37,596 35,525
Matriculations 27,430 23,790 24,115 22,000 20,263
% Accepted 81.46% 71.12% 75.08% 70.15% 66.59%
% Matriculated 57.54% 59.58% 44.42% 41.05% 37.98%
(1) These columns reflect only admissions and matriculation data for undergraduates for Angelo State University,
Lamar University, Sam Houston State University, Sul Ross State University, and Texas State University-San Marcos.
This information is inclusive of the fall, spring and summer sessions of the respective fiscal years. Admissions
and matriculation numbers of the type set forth above were not routinely or consistently kept for the Lamar Institute
of Technology, Lamar State College - Orange, Lamar State College - Port Arthur, and Sul Ross State University -
gy, g g , g , y
Rio Grande College.
(2) These columns include admissions and matriculation information for all components of the Texas State University
System.
(3) These columns exclude Angelo State University.
7
TABLE A-8
TEXAS STATE UNIVERSITY SYSTEM
Combined Statement of Current Funds Revenues and Expenditures
FY 1997 FY 1998 FY 1999 FY 2000 FY 2001
Current Funds Revenues
Tuition 48,800,936 51,543,403 55,288,713 58,633,271 63,187,933
Designated Tuition (General Use Fees) 25,675,763 27,585,605 32,930,098 37,806,768 43,191,988
Student Service Fees 14,601,684 14,677,776 15,840,077 16,821,144 17,359,347
Other Fees 25,510,430 26,327,429 29,097,070 33,473,021 38,776,355
Tuition Remissions and Exemptions 7,703,859 7,611,896 7,423,144 7,552,091 8,223,283
State Appropriations-General Revenue 173,981,018 187,924,172 191,414,008 233,466,704 229,520,995
State Appropriations-H.E.A.F. 32,650,104 32,650,104 32,650,104 32,650,104 34,950,547
Federal Grants and Contracts 36,608,120 39,517,051 44,958,438 45,698,575 49,929,300
Federal Pass-Through Grants from Other State Agencies 2,592,105 2,613,174 4,332,308 3,537,422 5,651,964
State Grants and Contracts 1,242,536 1,938,385 1,472,619 5,080,346 3,843,308
State Pass-Through Grants from Other State Agencies 2,314,405 3,768,302 1,509,353 5,323,178 6,696,736
Local Gifts, Grants, and Contracts 529,597 899,389 1,722 94,886 171,468
Private Gifts, Grants and Contracts 7,820,408 7,603,064 9,063,383 10,464,191 17,907,984
Net Increase/(Decrease) in the Fair Value of Investments 2,202,104 (67,976) (22,562) 714,829
Investment Income 4,718,881 5,676,508 6,266,292 8,192,649 9,768,565
Endowment Income 4,149,618 4,354,297 5,055,013 5,025,445 4,952,735
Sales and Services:
Educational Activities 9,705,017 11,287,355 11,532,321 13,495,014 13,324,834
Research Activities 720,366 760,775 725,991
Auxiliary Enterprises 55 505 540
55,505,540 58,923,974
58 923 974 60,615,530
60 615 530 60,402,921
60 402 921 62 745 604
62,745,604
Other Interest Income 948,199 1,304,750 1,598,990 1,989,008 1,087,358
Realized Gains/Losses on Investments
Other Sources 6,189,946 9,049,819 11,155,404 7,679,702 7,287,597
Total Current Funds Revenues 461,968,532 498,219,332 522,862,602 587,363,878 619,292,730
Current Funds Expenditures
Educational and General
Instruction 151,574,566 165,087,070 171,739,726 186,123,426 198,039,398
Research 12,129,771 11,243,864 11,817,940 15,290,999 16,368,490
Public Service 14,807,048 16,848,301 19,933,220 20,232,040 19,467,071
Academic Support 27,548,929 27,349,956 30,307,520 33,698,508 38,037,865
Student Services 14,776,212 14,843,639 16,141,665 18,465,835 18,151,518
Institutional Support 38,319,342 43,759,305 47,994,208 55,508,429 68,903,180
Operation and Maintenance of Plant 33,063,620 36,493,038 36,407,131 38,618,291 42,731,682
Scholarship and Fellowships 39,244,430 43,506,480 44,173,728 49,477,836 57,336,884
Total Educational and General Expenditures 331,463,918 359,131,653 378,515,138 417,415,364 459,036,088
Auxiliary Enterprises Expenditures 75,005,323 77,281,479 80,770,604 85,550,398 88,873,791
Total Current Funds Expenditures 406,469,241 436,413,132 459,285,742 502,965,762 547,909,879
Mandatory Current Funds Transfers (Net) (15,891,558) (15,638,609) (18,947,222) (26,207,689) (26,501,464)
Excess Current Funds Revenues to Current Funds
Expenditures and Mandatory Transfers 39,607,733 46,167,591 44,629,638 58,190,427 44,881,387
Note A: The financial statements for FY2002 were prepared using the economic resources measurement focus and accrual basis of accounting as
prescribed by Governmental Accounting Standards Board Statements 34/35. This reporting model is significantly different from the previous model.
(See fiscal years 1997 through 2001. For that reason, comparative numbers are not possible. The new reporting format will be presented in future years with
another year added each year until a 5 year comparison is in place. This table will continue to be reported until five years of the new format are in place. The
new table will be named Table A-8(A).
8
TABLE A-8(A)
TEXAS STATE UNIVERSITY SYSTEM
Combined Statement of Revenues and Expenses and Changes in Net Assets
For the Most Recent Four Fiscal Years
FY 2005 FY 2006 FY 2007 FY 2008
OPERATING REVENUES
Sales of Goods and Services (PR-Chgs for Services)
Net Tuition and Fees 240,988,043.20 258,814,947.08 295,587,714.80 304,878,908.79
Net Hospitals
Net Professional Fees
Net Auxiliary Enterprises 72,205,587.98 80,281,144.55 97,224,631.37 87,196,121.56
Net Other Sales of Goods and Services 12,744,674.98 13,243,415.28 12,283,137.72 14,545,555.11
Premium Revenue (PR-Chgs for Services)
Interest and Investment Income (PR-Chgs for Services) 247,532.62 305,963.00 769,438.26 578,195.73
Interest and Investment Income (PR-OP Grants/Contributions)
Interest and Investment Income (GR) 93,117.06 152,453.89 71,260.30 39,946.19
Net Increase (Decrease) Fair Value (PR-OP Grants/Contributions)
Net Increase (Decrease) Fair Value (GR)
Federal Revenue-Operating (PR-OP Grants/Contributions) 74,161,436.14 84,549,758.63 80,636,835.20 83,684,195.62
Federal Pass Through Revenue (PR-OP Grants/Contributions) 11,325,299.04 24,849,141.96 13,517,873.68 10,542,867.23
State Grant Revenue (PR-OP Grants/Contributions) 6,708,844.47 2,495,992.94 6,687,202.65 7,077,364.58
State Grant Pass Through Revenue (PR-OP Grants/Contributions) 16,685,143.58 19,468,407.80 20,912,486.93 20,463,791.17
Other Grants and Contracts-Operating (PR-OP Grants/Contributions) 8,256,777.80 6,204,915.13 9,263,953.84 6,470,663.14
Land Income (PR-Chgs for Services)
Contributions to Retirement Systems (PR-Chgs for Services)
Other Operating Revenues (GR) 11,636,607.64 12,036,372.24 13,710,577.13 13,569,242.25
Other Operating Revenues (PR-Chgs for Services) 82,948.08 1,900.00 15,669.27
Total Operating Revenues 455,136,012.59 502,404,412.50 550,680,781.15 549,046,851.37
OPERATING EXPENSES
Instruction 238,948,452.96 251,261,927.14 281,217,105.53 253,103,979.18
Research 18,492,235.18 17,916,284.06 20,070,842.50 29,178,685.93
Public Service 34,203,236.41 35,808,583.33 41,192,930.65 34,900,261.57
Academic Support 55,039,608.96 62,643,835.44 71,929,572.99 71,372,428.76
Student Services 26,738,610.06 34,418,639.08 39,436,914.46 36,125,332.16
Institutional Support 84,285,261.60 75,655,956.54 89,007,294.14 79,715,576.68
Operation and Maintenance of Plant 57,005,929.71 75,739,903.23 66,365,535.43 60,527,375.87
Scholarship and Fellowships 50,367,964.27 55,387,272.24 57,109,039.12 53,554,554.36
Auxiliary Enterprise Expenditures 103,617,929.16 111,384,374.02 126,507,606.10 121,677,265.60
Depreciation and Amortization 28,457,849.21 41,341,768.07 43,906,939.69 47,862,411.34
Total Operating Expenses 697,157,077.52 761,558,543.15 836,743,780.61 788,017,871.45
Operating Income (Loss) (242,021,064.93) (259,154,130.65) (286,062,999.46) (238,971,020.08)
9
TABLE A-8(A)
TEXAS STATE UNIVERSITY SYSTEM
Combined Statement of Revenues and Expenses and Changes in Net Assets
For the Most Recent Four Fiscal Years
FY 2005 FY 2006 FY 2007 FY 2008
Legislative Revenue (GR) 204,439,944.48 252,808,454.00 219,413,903.00 213,210,041.00
Additional Appropriations (GR) 43,880,911.19 47,161,283.15 49,546,097.72 46,873,600.26
HEAF Appropriation Revenue (GR) 34,950,547.00
Federal Revenue Non-Operating (PR-OP Grants/Contributions) 12,225.92
Gifts (PR-OP Grants/Contributions) 12,305,367.95 16,493,338.76 28,471,117.12 24,724,447.24
Investment Income (PR-OP Grants/Contributions) 8,008,062.96 19,119,118.54 15,097,223.56 4,817,934.59
Investment Income (GR) 5,345,950.25 48,839.06 11,197,736.16 8,876,182.79
Loan Premium/Fees on Securities Lending (PR-OP Grants/Contributions)
Investing Activities Expense (80,191.85) (1,804,713.05) (395,255.34) (1,611,009.73)
Interest Expense and Fiscal Charges (16,650,146.89) (12,249,595.34) (23,533,582.58) (14,153,006.46)
Borrower Rebates and Agent Fees
Gain (Loss) on Sale of Capital Assets (GR) (211,888.89) 13,205,780.52 (274,913.52)
Net Increase (Decrease) in Fair Value of Investments (PR-OP Grants/Contributions) 5,124,298.27 (234,783.82) 2,812,180.54 (2,171,377.54)
Net Increase (Decrease) in Fair Value of Investments (GR) 1,088,624.53 2,316,006.49 (2,797,258.46)
Settlement of Claims (PR-Chgs for Services) (34,604.67) (133,507.35) (86,680.35) (134,886.05)
Settlement of Claims (GR) (136,035.94) (127,021.99) (136,854.45) (121,134.27)
Other Nonoperating Revenues (Expenses) (PR-Chgs for Services) 1,555,316.82 8,709,672.61 5,117,930.57 3,472,849.05
Other Nonoperating Revenues (Expenses) (GR) 97,368.96 (935,724.12) (329,817.27) 43,875.83
Total Nonoperating Revenues (Expenses) 298,806,788.53 329,744,322.01 322,695,785.69 280,755,344.73
Income (Loss) before Other Revenues, Expenses, 56,785,723.60 70,590,191.36 36,632,786.23 41,784,324.65
Gains, Losses and Transfers
OTHER REVENUES, EXPENSES, GAINS,
LOSSES AND TRANSFERS
Capital Contributions 13,029.73 (664,024.66) (354,562.05)
Capital Contributions (HEAF) 32,827,106.00 32,827,106.00 45,654,860.00
Additions to Permanent and Term Endowments 5,371,398.37 2,035,815.33 584,409.85 (647,425.02)
Special Items 25,686.00 (38,898,403.00)
Extraordinary Items
Increase Interagency Transfer Capital Assets 52,901.33
Decrease Interagency Transfer Capital Assets (3,709.50)
Transfers-Ins 703,190.67 (39,530.57) 1,783,882.08
Transfers-Out (1,434,357.67) (2,579,236.47) (3,100,028.88) (219,869,592.90)
Legislative Transfers-In 4,125,474.93
Legislative Transfers-Out (116,771.92)
Legislative Appropriations Lapsed (139,024.92) (12,290.96) (101,309.38)
CHANGE IN NET ASSETS 61,347,898.78 63,132,893.07 66,577,420.19 (127,220,593.81)
Net Assets, Beginning 858,228,408.32 857,712,996.84 921,125,749.77 987,687,218.15
Restatements (61,863,310.26) 267,181.12 (15,951.81) (22,100.08)
Net Assets, Beginning as Restated 796,365,098.06 857,980,177.96 921,109,797.96 987,665,118.07
NET ASSETS, ENDING 857,712,996.84 921,113,071.03 987,687,218.15 860,444,524.26
10
TABLE A-9
TEXAS STATE UNIVERSITY SYSTEM
Current Investments
as of August 31,2008
Type of Security Fair Value
U.S. Government
U.S. Treasury Securities 0.00
U.S. Government Agency Obligations 303,283.50
U.S. Governement Agency Obligations (Texas Treasury Safekeeping) 965,640.58
Corporate Obligations 3,254,866.00
Corporate Obligations (Texas Treasury Safekeeping) 0.00
Corporate Asset and Mortgage Backed Securities 0.00
Equity 7,124,822.24
Repurchase Agreement 1,902,039.59
Fixed Income Money Market and Bond Mutal Fund 70,091,897.05
Other Commingled Funds 19,682,929.30
Other Commingled Funds - Texpool 544,249,371.06
Commerical Paper 1,185,333.00
Real Estate 27,100.00
Miscellaneous 583,404.89
Total 649,370,687.21
Consisting of the Following
Proprietary Funds Current Cash Equivalents 435,430,243.70
Proprietary Funds Current Restricted Cash Equivalents 79,019,598.98
Proprietary Funds Short Term Investments 198,000.00
Proprietary Funds Non-Current Restricted Cash Equivalents 31,900,589.56
Proprietary Funds Non-Current Restricted Investments 69,129,908.10
Proprietary Funds Non-Current Investments 33,692,346.87
Total as above 649,370,687.21
11
TABLE A-10
TEXAS STATE UNIVERSITY SYSTEM
Endowment Funds Summary
August 31, 2008
52,624,761 63,263,697 75,174,036 100,270,044 97,571,384
Institution 2004 2005 2006 2007 2008
Angelo State University 73,212,545 77,895,230 80,940,829 87,446,864 n/a
Lamar University - Beaumont 7,476,376 7,624,874 7,875,532 9,735,018 10,692,218
Lamar State College - Orange 5,524 5,524 10,524 10,524 15,524
Lamar State College - Port Arthur 0 0 0 0 0
Lamar Institute of Technology 0 0 0 0 0
Sam Houston State University 18,173,335 20,629,643 25,596,863 31,985,986 36,102,070
Sul Ross State University 9,555,599 10,545,429 11,282,461 12,075,519 12,685,421
Texas State University - San Marcos 16,868,085 19,127,553 22,166,889 38,119,591 29,754,085
System Administration 545,842 5,330,674 8,241,767 8,343,405 8,322,067
Total 125,837,306 141,158,927 156,114,865 187,716,908 97,571,384
(A)
(A) The GASB reporting model was adopted by the State of Texas beginning with FY2002. Under the previous reporting
model, Term-Endowments and Quasi-Endowments were identifiable and thus included in the balances reported in
this table. Such balances are no longer identifiable from the published Annual Financial Report. For the FY2002 and all
future years, only the more narrowly defined, Unexpendable Endowments will be reported.
1
