Commission Agenda Item No. 2
Exhibit A

Commission Agenda Item No. 2
Exhibit B

Commission Agenda Item No. 2
Exhibit C

Commission Agenda Item No. 2
Exhibit D

BUDGET POLICY (CP-009)

It is the policy of the Texas Parks and Wildlife Commission to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department.  Revenues derived from interagency agreements may be budgeted and expended.
5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission.  Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
7. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
9. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.

The Chair or Vice Chair of the Commission, or a Commissioner designee of the Chair or Vice Chair, is authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below.  Any budget adjustments that exceed a threshold of $250,000, excluding federal and bond funds, require the prior approval of the Chair, Vice Chair, or Commissioner designee through such means as a conference call or memo.  Donations or gifts exceeding $500 shall be accepted by the Chair, Vice Chair, or Commissioner designee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the TPW Commission of any changes to previously discussed purposes or uses of funds, the Department is authorized to use dedicated accounts and sub-accounts for purposes consistent with those outlined in relevant statutory provisions or administrative rules as set forth in the Texas Administrative Code.

This policy shall rescind any existing policy on budget adjustments and transfers.

APPROVED this the 30th day of August 2012.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 30th day of August 2012.

Commission Agenda Item No. 2
Exhibit E

INVESTMENT POLICY (CP-016)

All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Parks and Wildlife Code or allocated to TPWD per §151.801 of the Texas Tax Code are required by §11.042 of the Parks and Wildlife Code to be deposited in the treasury with two exceptions, the Operation Game Thief Fund and the Texas Park Development Fund.  The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee.  Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller.

Parks and Wildlife Code §11.065 authorizes the commission to adopt rules for investment of the Lifetime License Endowment Account.  The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller.

In addition, TPWD has established an account at The Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Texas Comptroller of Public Accounts.  TPWD’s account at The Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission.  Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

1. Objectives of TPWD
1. Suitability of the investment to TPWD requirements
2. Preservation and safety of principal
3. Liquidity
4. Marketability
5. Diversification of the portfolio
6. Yield
2. Policy Guidelines
   1. TPWD funds shall be held in the state treasury and invested by the Comptroller under Texas Government Code §404.024.
   2. Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
   3. Bank accounts authorized by the General Appropriations Act of the 82st Legislature, Article VI, Rider 3, and Texas Government Code §403.241-403.252 and §660.025 (petty cash accounts and imprest accounts for the purchase of evidence) should be either interest-bearing accounts or accounts with no fees.  Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund.  The establishment of any petty cash or imprest bank accounts must be approved by the Department’s Chief Financial Officer (Signature and Approval Policy OP-03-03).  Continuance of bank accounts is dependent upon timely and accurate recordkeeping and reporting.
3. Texas Public Funds Investment Act:  Investment Officer Designation and Reporting
   1. Pursuant to Texas Government Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds which are deposited into the state treasury and which are managed by the Texas Comptroller of Public Accounts in accordance with Texas Government Code §404.024.  Therefore, TPWD does not presently have any funds on deposit outside the treasury subject to the PFIA.
   2. In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or designee, shall identify and designate an Investment Officer.
      1. The designated TPWD Investment Officer, or Officers, shall perform the functions and responsibilities required by the PFIA.
      2. The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
      3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
      4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TPWD and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
      5. The Investment Officers will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by FDIC up to the FDIC deposit insurance limit, currently $250,000.  If at any time deposits exceed the FDIC deposit insurance limit in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding the deposit insurance limit.
      6. Reports of investment transactions for all funds managed under the PFIA shall be prepared within 45 days of the end of each quarter and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer as required by § 2256.023.  These quarterly reports shall comply with state requirements for content.
      7. To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, a report summarizing those legislative changes to the PFIA shall be prepared and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session.
4. Review — The Texas Parks and Wildlife Commission shall review this policy at least annually.

APPROVED this the 30th day of August 2012.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 30th day of August 2012.