AUDITING INVOICES 101

Transcription

1 AUDITING INVOICES 101

2 AUDITING CONSULTANT INVOICES Definitions MCA: Master Consulting Agreement parent agreement that contains general terms and conditions by which consultants provide services CSA: Consultant Services Authorization child agreement; project specific; must be Board approved For services in excess of $50,000 Cost of consulting services does not matter if related construction is in excess of $250,000 Agreement shall contain the scope of work, compensation method, subconsultant proposals and insurance, hourly rate schedule from MCA, reimbursable schedule, professional liability insurance certificate (must reference CSA name and number) CPO: Consultant Purchase Order child agreement; project specific; approved by Procurement For services less than $50,000 Related construction CANNOT exceed $250,000 Agreement shall contain the scope of work, compensation method, any subconsultant proposals and insurance, hourly rate schedule from MCA

3 AUDITING CONSULTANT INVOICES Definitions continued Not-to-exceed project: compensation is approved to a certain amount. Invoicing should be done on an hourly basis with timesheets attached reflecting: Employee Name Job Classification MUST match MCA Date Worked Hours Worked Hourly Rate MUST match Hourly Rate Schedule from MCA Amount Lump sum project: compensation is provided as a total lump sum and is billed by percentage of task completed. Invoicing on a task basis, utilizing percentages, does not require a detailed breakdown other than narrative required by the division to ensure work has been performed. We do not allow time and materials method of billing

4 AUDITING CONSULTANT INVOICES Definitions continued Notice to Proceed: official correspondence issued by User Division to Consultant Start Date: date work begins Completion Date: date work is scheduled to be completed No work should be allowed after completion date If additional time is necessary, User Division MUST initiate a modification prior to expiration of contract Invoices may be submitted after contract has expired, however, the work dates MUST be prior to expiration

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7 Example of a purchase order with multiple lines

8 Be sure to always include the Line number that represents the fund you are making payment from on the invoice

9 AUDITING CONSULTANT INVOICES Division Project Manager is responsible for accuracy of invoices All services must have been performed for the period being invoiced All hourly time sheets must be attached All job classifications and hourly rates must match the MCA PM MUST verify this information against the CSA and/or MCA If information is incorrect, the PM MUST return the invoice to the consultant and request changes Invoices MUST contain the following information: Purchase order number CSA or CPO number Division MUST note the purchase order line number when creating a receipt PM shall verify: Process All totals are correct; no handwritten corrections by the division will be allowed All reimbursables are allowable and have adequate documentation attached; invoice will be returned to consultant if anything is missing or incorrect DO NOT FORWARD INVOICE TO ACCOUNTS PAYABLE THAT IS NOT CORRECT!!!! ANY INVOICE THAT REFLECTS HANDWRITTEN CHANGES WILL CAUSE THE INVOICE TO BE REJECTED BY ACCOUNTS PAYABLE AND RETURNED TO THE USER DIVISION!!!

10 AUDITING CONSULTANT INVOICES Process Division Project Manager is responsible for forwarding audited invoices to Brenda Flores in Accounts Payable If invoice is received by Thursday, A/P will make every effort to have invoice audited and paid by the following Thursday Check payables inquiry in Oracle if consultant is asking for payment status. The division should contact A/P if payment information can not be found in oracle. Please do not have consultants contact A/P for payment status Invoice WILL be returned for the following reasons: Incorrect job titles and/or hourly rates Handwritten corrections Incorrect or missing time sheets Incorrect or missing mileage logs Expired contract Missing receipt for reimbursables Incorrect calculations IT IS THE PROJECT MANAGER S RESPONSIBILITY TO ENSURE THE ACCURACY OF ALL INFORMATION AND DOCUMENTATION

11 AUDITING CONSULTANT INVOICES Position Rates Determine if the rates are listed as the labor rates or billing rates Labor rates = actual hourly rate employee is paid Billing rate = labor rate multiplied by the multiplier Rates may be less than the range but can never be over the range If rate is over the range, return invoice to consultant for correction If a position appears that is not listed on the contract return the invoice to the consultant to be corrected. Tolerance amount of $1.00 allowable (don t worry about pennies)

12 AUDITING CONSULTANT INVOICES Reimbursables Items that will be reimbursed, provided sufficient documentation is attached: Overnight deliveries (Fed Ex, UPS, etc.) -No markups allowed & we do pay taxes Reproduction (see Reimbursable Cost Schedule) Fax (Local is non-reimbursable) Long distance calls (excludes Tampa, Orlando and Gainesville) Subcontractor services at cost (Must be accompanied by an invoice/paid receipt) Mileage (FS ) (excludes travel from consultant s office to the County line) In conjunction with memo from County Manager (IRS) Travel (FS & County s Employee Handbook) -only Class A overnight travel ( 75% for day of departure & return) Assets (Must become property of County to qualify)

13 AUDITING CONSULTANT INVOICES Backup for Reimbursables Reimbursable items must be pre-approved by Division Director (approved during development of CSA/CPO) Invoices with paid receipts Hotel receipts Copy of air fare, if consultant is flying Rental car agreement Logs for copies, postage, mileage

14 AUDITING CONSULTANT INVOICES Prompt Payment Act Non-construction related purchases of services or goods must be paid within forty five (45) days from the day the correct invoice is received. All invoices should be date and time stamped at the time they are received by the County. F :

15 AUDITING CONSTRUCTION PAY APPLICATIONS (Overview) Verify po # and contract # are correct (Bid # is NOT the contract #) Verify original contract amount Verify all change orders to date are applied to pay app Verify retainage withheld is correct percentage Stored material Reimbursables Local Prompt Pay Act (FS ) Final Pay Application

16 AUDITING CONSTRUCTION PAY APPLICATIONS (Purchase Order) A Master contract purchase order will be set up by Procurement this PO number MUST appear on the requisition A separate line MUST be created for each fund source If funding is from multiple divisions, the major work division will put the requisition online with fund info from the other division(s) A separate line for each fund source MUST be created Major work division will need to get fund information from other division(s)

17 AUDITING CONSTRUCTION PAY APPLICATIONS Front page of Pay Application 1. Original contract sum (Bid amount + Alternates + Allowance) - this amount will never change 2. Net change by change order (Increase/Decrease) 3. Contract sum to date (line 1 -/+ line 2) -change orders should not appear unless they have been fully executed by the appropriate authorities; original should be sent to the Clerk s office with a copy sent to Procurement 4. Total completed and stored to date (add up the completed and stored to date column on the schedule of values to ensure that they are the same) 5. Retainage: The retainage is 10% of the Total Completed and Stored to Date, unless 50% of the total contract has been spent. If 50% has been spent, the retainage must be decreased to 5%. This action should be taken on the first application completion reaches 50% expenditure. -if the retainage is incorrect return the application to the contractor and have it corrected -the contractor cannot elect to keep retainage at 10%; it MUST be reduced 6. Total earned less retainage (subtract line 5 from line 4 for total) 7. Less previous certificates of payment (line 7 should match line 6 of the previous pay application) 8. Current payment due (subtract lines 5 and 7 from line 4 for total) 9. Balance to finish, including retainage (subtract line 6 from line 3 for total)

18 AUDITING CONSTRUCTION PAY APPLICATIONS Schedule of Values Column C (Scheduled Value) should be the same as line 1 *This should never change it is the bid information!!! Work Completed from Previous App should be the same as Total Completed and Stored to Date from previous pay app and line 4 on current pay app Compute the work completed this period and add to work completed from previous app and make sure it matches line 4 of current pay app Materials stored (must have a copy of a paid invoice or a letter from the bonding agent) Pay app should be returned to contractor for proper back up if stored materials are included Please do not have contractors contact A/P for payment status

19 Sample Pay Application

20 AUDITING CONSTRUCTION PAY APPLICATIONS

21 AUDITING CONSTRUCTION PAY APPLICATIONS PROMPT PAYMENT ACT (FS ) All pay applications must be time stamped on the date they were received by the consultant (if applicable) and user division. There are two different time lines for construction pay applications. 1. With a consultant: The consultant has five (5) days from the date they receive a correct pay application to review, sign and forward to the County. The County then has twenty (20) days to review, audit, sign, receive and issue payment. 2. Without a consultant: The County has twenty (20) days to review, audit, sign, receive and issue payment. Regardless of whether there is a consultant or not, if a pay application is returned to the contractor, the County has ten (10) days to process the pay application once a corrected pay application is received. Pay applications MUST be returned to the contractor for corrections NO changes will be allowed by County personnel.

22 AUDITING CONSTRUCTION PAY APPLICATIONS REIMBURSABLES The only reimbursable permitted on a Construction contract is permit fees and they must be billed on a separate invoice along with a copy of the invoice/paid receipt. Permits are reimbursed at 100% of cost.

23 AUDITING CONSTRUCTION PAY APPLICATIONS FINAL PAY APPLICATION Must be clearly marked Final Must accompany final close out documentation Certificate of Substantial Completion Certificate of Final Completion Consent of Surety Any final change order(s) Originals go to Accounts Payable with a copy of all to Procurement Must include all retainage final application for payment MUST have 0.00 balance

24 AUDITING CONSTRUCTION PAY APPLICATIONS The following documentation must accompany the Final pay application. As Builts (if applicable) Original Consent of Surety Original Certificate of Substantial Completion Original Certificate of Completion by Contractor Final Change Order (Includes unused Allowance or Contingency funds) Warranties (with contact names) Operational Manuals (list all) CLOSE OUT DOCUMENTATION If all items do not accompany the Final pay application, the pay application must be returned to the contractor. Remember: copies of final close out documents (Consent of Surety, Substantial & Final Completion Certificates, and final change order) must be sent to Procurement for upload into Novatus

25 CONSTRUCTION MANAGER AT RISK (CMAR) APPLICATION FOR PAYMENT The only difference between Construction and Construction Manager at Risk pay applications is the retainage. The County does not keep retainage on General Conditions, self performed work or the Public Construction Bond on CM-at-Risk.

26 CONSTRUCTION MANAGER AT RISK (CMAR) APPLICATION FOR PAYMENT

27 CHANGE ORDER FOR OWNER DIRECT PURCHASE The Florida Department of Revenue now requires ALL owner direct purchases to have a Certificate of Entitlement attached to the purchase order Procurement will fill out and sign the certificate Original goes to supplier with a copy to the contractor A copy will be uploaded into Novatus

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