INVOICE DEVELOPMENT AND SUBMITTAL PROCESS

Transcription

1 INVOICE DEVELOPMENT AND SUBMITTAL PROCESS Tamika Griffin November 3, 2017

2 Table of Contents Standard Operating Procedure Roles and Responsibilities Invoice Submittal Payment Types and Required Documentation Invoice Package Common Issues and Frequently Asked Questions Questions and Discussion 2

3 Standard Operating Procedure Prime Provider Comptroller s Office PEPS Service Center Accounting Department District/ Division PM PEPS Service Center 3

4 District/Division Project Manager Responsibilities District /Division (DD) Project Manager (PM) receives invoice electronically from PEPS Service Center for approval. DD PM confirms deliverables are in accordance with the work authorization. DD PM confirms they have received the monthly progress report for the service period of the invoice. Correlation between the invoice and the monthly progress report exists DD PM tracks time and $ remaining in work authorization. Work can t be performed or invoiced outside the termination date of work authorization. DD PM approves and sends back the invoice to PEPS for further processing or rejects the invoice within 5 working days. If the DD PM rejects the invoice they contact the vendor PM directly to discuss the issues. The 30-day prompt pay clock stops once an invoice is rejected. Unless the invoice is rejected this agency is subject to the 30 day prompt pay act (interest) so adhering to the 5 working days response is important. 4

5 Vendor Responsibilities Submit invoice electronically on approved format by method of payment to PEPS Service Center Managing your contract or work authorization Provide monthly written progress reports to your DD PM either separately or with the invoice Provide documentation from the DD PM of prior approval of overtime expenses along with the invoice Track time and money remaining in work authorization. Service period of an invoice must be after execution and before the termination date of the work authorization Confirm staffing, classifications, rates, unit costs, other direct expenses are all in accordance with the executed work authorization Provide revised invoices, as necessary 5

6 PEPS Contract Staff Responsibilities 1.Receives invoice for review and payment processing 2.Verifies the following: Contract/Work Authorization No. (WA) Contract/WA expiration dates Service period/ Fiscal year work performed Invoice amount Charge detail Staffing classifications, rates unit costs and other direct expenses are billed in accordance with the executed WA 3.Routes invoices to DD PM for review and approval 4.Processes receipts in PeopleSoft 5.Submits invoice for payment 6.Reconciles databases 6

7 Invoice Submittal The electronic billing documentation must be legible. If the documentation is illegible, the consultant must correct it Electronic billings must be sent as one.tif or.pdf file. Scan 300 dpi. The different sizes of billing documentation must be scanned at their original size One invoice per A service period of an invoice cannot overlap fiscal years 7

8 Invoices Submitted to PEPS Invoice Process Mailbox Invoices are submitted to applicable PEPS Service Center Managing the Contract and/or Work Authorization. Supports Austin District Supports all Rural Districts Supports Dallas District Supports El Paso District Supports Ft. Worth District Supports Houston District Supports TxDOT Divisions Large files can be sent using the TxDOT drop box. Subject Line Naming Convention: Provider Name-Contract No-WA No-Provider Invoice No 8

9 Invoice Payment Types and Required Documentation Payment Type Lump Sum Unit Cost Description The lump sum shall be equal to the maximum amount payable. The lump sum includes all direct and indirect costs and profit. The Engineer shall be paid pro rata based on the percentage of work completed. For payment the Engineer is not required to provide evidence of actual hours worked, travel, overhead rates or other evidence of cost, but must submit billing information in a form acceptable to the State as required by Article 4 A & B including classifying work, partial or completed, according to the Table of Deliverables. The unit cost(s) for each type of unit and number of units are shown in the FCP. The unit cost includes all direct and indirect costs and profit. The Engineer shall be paid based on the type and number of units fully completed and the respective unit cost. For payment, the Engineer is not required to provide evidence of actual hours worked, travel, overhead rates or any other cost data. The FCP may include special items, such as equipment which are not included in the unit costs. Documentation of these special costs may be required. The maximum amount payable equals the total of all units times their respective unit cost plus any special direct items shown. 9

10 Invoice Payment Types and Required Documentation Specified Rate Basis Cost Plus Fixed Fee The specified rates for each type of labor are shown in the FCP below. The FCP may include special items, such as equipment which are not included in the specified rates. Payment shall be based on the actual hours worked multiplied by the specified rate for each type of labor plus other agreed to special direct cost items. The specified rate includes direct labor and indirect cost and profit. The State may request documentation of reimbursable direct costs including hours worked. Documentation of special item costs may be required. The specified rate is not subject to audit. Payment shall be based on direct and indirect costs incurred plus a pro rata share of the fixed fee based on the ratio of labor and overhead cost incurred to total estimated labor and overhead cost in the FCP or the percentage of work completed. The invoice must itemize labor rates, hours worked, other direct costs and indirect costs. The Engineer may be required to provide documentation of hours worked and any eligible direct costs claimed. The provisional overhead rate charged is subject to audit and adjustment to actual rates incurred. The FCP below shows the hourly rates for labor, other direct expenses including but not limited to travel and allowable materials, provisional overhead rate and the fixed fee. A. Actual Cost Plus Fixed Fee - Actual wages are paid (no minimum, no maximum. This option does not apply to Indefinite Deliverable Contracts.) B. Range of Cost Plus Fixed Fee Actual wages must be within the allowable range shown on the Final Cost Proposal. 10

11 Invoice Payment Types and Required Documentation Cost Plus Fixed Fee Actual rate to be billed not to exceed the maximum amount shown. Minimum rate to be billed if actual is less. Documentation of hours billed such as time-sheets and labor summary reports may be necessary for reimbursement Specified Rate Contract rate to be billed. Documentation of hours billed such as time-sheets and labor summary reports may be necessary for reimbursement Lump Sum Invoice by deliverable, according to table of deliverables (TOD). A copy of the TOD shall be included with each invoice package and is payable by each deliverable and line item as identified in the TOD. Partial payments of line items not allowed. Documentation of hours worked not required. Unit Cost Payment based on units completed. No partial payments. 11

12 Invoice Payment Types and Required Documentation Other Direct Expenses For cost plus fixed fee, specified rate and unit cost payment methods - Fixed items t be billed at fixed cost rate. For items with a maximum cost, actual cost must be billed not to exceed the maximum shown. Expense shown as current state rate are billed at the rates that are in effect at the time the expense is incurred. Itemized receipts must be maintained and are required for reimbursement. For lump sum no documentation required payment is made in accordance to the TOD. If rates by fiscal year or calendar year are included, the maximum rates for the last year shown apply to all later years. Any staffing or other direct expense classification included in the contract but, not in a work authorization, is not eligible for payment under that work authorization. 12

13 Invoice Templates Pkg # Payment Type Professional Service Contracts Invoice Template Packages for Engineering, Surveying and Architicerial Template Attachments Invoice Signature Authority Page WA Financial Status Summary Summary of Total Invoiced Labor Summary Deliverable Summary Unit Cost Summary Travel Expense Summary Other Direct Expense Summary I. II. III. IV Lump Sum Specified Rate Specified Rate/Unit Cost Hybrid Cost Plus Fixed Fee X X X X X X X X X X X X X X X X X X X X X X X X X X 13

14 Invoice Package Requirements Progress report Projected vs Actual report (if not included in progress report) Applicable TxDOT invoice template (no other form accepted) Back up documentation for Other Direct Expenses Time labor summary reports (if applicable) documentation for overtime documentation for change in classification title 14

15 Invoice - Follow the Yellow Brick Road! Follow the yellow brick road Charge detail provided by DD PM If service dates fall outside the WA expiration date, the invoice is rejected Dept.ID Billed 15

16 Signature Authority Page -Vendor Enables you to add different payment types for one invoice Follow the yellow brick road!! Invoice will be rejected for failure of vendor to sign and date certification statement. 30 day clock starts over 16

17 Signature Authority Page - State 17

18 Work Authorization Financial Status Summary CPFF Follow the yellow brick road Check Fixed Fee (Profit) shown in WA for the firms (prime and sub can be different) 18

19 Work Authorization Financial Status Summary Specified Rate Follow the yellow brick road 19

20 Work Authorization Financial Status Summary Lump Sum Follow the yellow brick road 20

21 Labor Summary CPFF Employee Names are identified by Acronym. Only staffing categories in executed WA may be billed Actual hourly rate of staffing category can t exceed max. Follow the yellow brick road! 21

22 Labor Summary Specified Rate Employee Names are identified by Acronym. Only staffing categories in executed WA may be billed Contract rate for staff category Follow the yellow brick road! 22

23 Deliverable Summary Lump Sum Deliverable description should match description from Table of Deliverables Deliverable amount should match Table of Deliverables 23

24 Lump Sum Table of Deliverables Payment will be made in accordance to the Table of Deliverables Deliverable for each line item shown must be completed before payment can be made Provider shall complete green section and submit with each invoice 24

25 Summary of Total Amount Invoiced 25

26 Travel Expense Summary Remember you can only invoice for travel expenses within your executed WA!! 26

27 Other Direct Expense Summary Can only invoice for those ODE s within executed WA! This column is populated with acronyms for expenses by completing table off to the right Some expenses are to billed as actuals with a NTE amount. Check your executed WA! 27

28 Additional Information Prompt Payment Act Correct invoices not paid within thirty calendar days will accumulate interest at an annualized percentage rate, in accordance with the prompt Payment Act, Tx Gov t Code Ann (b) Payment Status To check payment status, view detailed payment information and request advance payment notifications from the State Comptroller s Direct Deposit (strongly recommended) To set up direct deposit of payments: Large files can be sent using the TxDOT drop box. 28

29 Common Invoice Issues that Delay Processing Incorrect staff positions or other direct expenses: If a staff position, unit cost or other direct expense is not listed in the executed work authorization then it is not authorized to be billed even if it is in the contract. Incorrect overhead rates: Field vs. Home Office Prime and Subproviders Incorrect Fixed Fee (profit) billed. TxDOT PM responsible for tracking Fixed Fee paid Fixed fee will not be paid over negotiated amount Progress reports contain incorrect information. 29

30 Common Invoice Issues that Delay Processing Higher labor rate billed. Staff level positions must be within the range of that position. If an individual makes higher than the top of the range, the firm can only invoice the max shown in the contract. Classification title change without TxDOT PM approval Approved overtime. Overtime must have documentation from the State s Project Manager approving the vendor s request for OT during the service period of the invoice must be presented with the invoice. Lists an expense in the invoice, but the back-up is for a different item. 30

31 Frequently Asked Questions Can I invoice for staff positions not in the work authorization? No Can I invoice for two Project Managers or two Principals? No Can I bill for ODEs shown in the contract but not in the work authorization? No What if the actual rate of a individual is higher than their classification range, can the actual be billed? No Since an individual s rate is not contained within the range for their staffing level, can I bill the individual at another staffing level to cover their rates? No 31

32 Frequently Asked Questions Can a vendor invoice for sub-providers not part of the contract, which means an amendment to the contract was never done to add said sub-provider? No The vendor signs a contract with a sub-provider and agrees to pay rates higher than their contract with TxDOT. Can the vendor invoice TxDOT for the higher rate? No Can an invoice be rejected due to the vendor failing to provide a progress report with the invoice? No Can you invoice for alcoholic beverages? No Can you invoice tips? No 32

33 Frequently Asked Questions (continued) Can the vendor apply a handling fee or pass thru fee for subprovider invoices? No Can you invoice for services not authorized by TxDOT and the work authorization? No Can administrative staff be billed as technical personnel? No Can the vendor invoice CEI work using the lump sum method of payment? No. This method of payment is not in the contract. The approved method of payments are specified rate, range of cost plus fixed fee, and unit cost (e.g., testing). 33

34 Frequently Asked Questions (continued) Question: Can TxDOT short pay an invoice instead of rejecting an invoice? Yes. TxDOT can short pay an invoice if it is less than 1% of the total invoice billed. Reductions more than 1% must be approved by the PEPS Division Director. Documentation must be maintained and must receive concurrence from the vendor (not applicable for lump sum payment method). Question: If an invoice billing error results in an increase to the total amount billed, will TxDOT pay the increased amount? No. If a billing error causes the invoice to increase, the invoice will be rejected for corrections and resubmission. 34

35 Additional Questions and Discussion 35

36 Contact Information Tamika Griffin TxDOT PEPS Service Center for Divisions (512)