Invoicing Requirements Presented by Michelle Harvey Disbursement Manager

Invoicing Requirements Presented by: Michelle Harvey Disbursement Manager

Today’s Goals • • • Understanding of the State’s payment process Department of Financial Services Role The Agency Role The Provider Role Determine Payment Methods Requirements of Fixed Price & Fixed Rate Requirements of Cost Reimbursement Invoice Requirements Supporting Documentation Requirements 2

Payment Process Overview 3

Department of Financial Services’ Role Section 215. 42, Florida Statues: The Chief Financial Officer may require proof, as he deems necessary, of delivery and receipt of purchases before honoring any voucher for payment from appropriations made in the General Appropriations Act or otherwise provided by law. • • Auditing of all Agency Contract/Grant Agreements. Auditing of all Agency Contract/Grant Agreement payments. Expanded Audits of Contract/Grant Agreement payments. Process EFT and warrants for disbursement of payments to Vendor/Payees. 4

The Agency’s Role • Review invoices for accuracy and completeness • Verify that any required supporting documentation has been submitted • Review documentation to gain reasonable assurance that services have been satisfactorily performed and meet the minimum level of service required • Apply financial consequences if the minimum level of service was not performed in accordance with the agreement • Approve invoice after all other steps have been satisfactorily completed 5

The Provider’s Role Prior to Submitting Payment Requests: • Understand the agreement’s Payment Terms and applicable laws and rules. • Review and submit complete and accurate invoices and supporting documentation. 6

Determine Payment Methods • Fixed Price Single amount paid upon completion of specified tasks • Fixed Rate Cost per unit of commodity or service • Cost Reimbursement Reimburse for undetermined final cost *Not-to-exceed limit applies A combination of multiple payment methods can be used when appropriate 7

Fixed Price/Rate Requirements • Verify invoice provides unit description and unit price, and the rate billed coincides with agreement rate. • Compare invoiced units of service to supporting documentation and determine if minimum performance standards have been met. • If minimum performance standards are not met, prepare invoice accordingly. 8

Cost Reimbursement Requirements • Verify expenditures are: • • • Allowable in the agreement budget Allowable pursuant to other rules and regulations Directly related to the scope of work Reasonable Documented • Verify minimum performance standards are met and apply financial consequences as necessary. 9

Invoice Requirements • Invoices for services must clearly reflect the specific deliverables that must be provided and accepted prior to payment. • Invoice must evidence that the minimum performance standards were met. • Invoices must be itemized by expenditure categories (salaries, travel, expenses, etc. ) 10

Supporting Documentation Requirements • Documentation for each amount for which reimbursement is being claimed must indicate that the item has been paid. • Each piece of documentation should clearly reflect the dates of service. • Only expenditures for categories in the approved agreement budget may be reimbursed. • Expenditures must be allowable, reasonable, and necessary (pursuant to law) and directly related to the services being provided. 11

Resources • • • DFS Reference Guide For State Expenditures DFS Training/Financial Education Online Sunshine Florida Statutes Search Florida Administrative Code & Register Search Florida Accountability Contract Tracking System (FACTS) DFS Vendor Payment History 12