invoice development and submittal process · pdf fileinvoice development and submittal process...

2017 PEPS Conference

INVOICE DEVELOPMENT AND SUBMITTAL PROCESS2017 PEPS Conference

Tamika Griffin

November 3, 2017


Table of Contents

2

Standard Operating Procedure

Roles and Responsibilities

Invoice Submittal

Payment Types and Required Documentation

Invoice Package

Common Issues and Frequently Asked Questions

Questions and Discussion

11

22

33

44

55

66

77


Standard Operating Procedure

3

Prime Provider

PEPS Service Center

District/Division PM

PEPS Service Center

Accounting Department

Comptroller’s Office


District/Division Project Manager Responsibilities

4

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.

2017 PEPS Conference 5

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 e-mail 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

Vendor Responsibilities


PEPS Contract Staff Responsibilities

6

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


Invoice Submittal

7

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 email

A service period of an invoice cannot overlap fiscal years


Invoices Submitted to PEPS Invoice Process Mailbox

• Invoices are submitted to applicable PEPS Service Center Managing the Contract and/or Work Authorization.

– [email protected] – Supports Austin District

– [email protected] – Supports all Rural Districts

– [email protected] – Supports Dallas District

– [email protected] – Supports El Paso District

– [email protected] – Supports Ft. Worth District

– [email protected] – Supports Houston District

– [email protected] – Supports TxDOT Divisions

• Large files can be sent using the TxDOT drop box. https://ftp.dot.state.tx.us/dropbox/

• Subject Line Naming Convention:

Provider Name-Contract No-WA No-Provider Invoice No

8

Invoice Payment Types and Required Documentation

9

Payment Type

Description

Lump Sum

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.

Unit Cost

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.

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SpecifiedRate Basis

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.

Cost PlusFixed Fee

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.




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.

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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


Invoice Templates

13

Pkg #Payment Type

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.

Lump Sum

X X X X

II.

Specified Rate

X X X X X X X

III.

Specified Rate/Unit Cost Hybrid X X X X X X X X

IV

Cost Plus Fixed Fee

X X X X X X X

Professional Service Contracts

Template Attachments

Engineering, Surveying and Architicerial for

Invoice Template Packages


Invoice Package Requirements

14

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)

E-mail documentation for overtime

E-mail documentation for change in classification title


Invoice - Follow the Yellow Brick Road!

15

Follow the yellow brick

road

Charge detail provided by DD

PMIf service dates fall

outside the WA expiration date, the invoice is rejected

Dept.ID Billed


Signature Authority Page -Vendor

16

Enables you to add different payment

types for one invoice


road !!

Invoice will be rejected for failure of vendor to sign and date certification statement.

30 day clock starts over


Signature Authority Page - State

17


Work Authorization Financial Status Summary CPFF

18

Follow the yellow brick road

Check Fixed Fee (Profit) shown in WA for the firms (prime and sub

can be different)


Work Authorization Financial Status Summary Specified Rate

19



Work Authorization Financial Status Summary Lump Sum

20



Labor Summary CPFF

21

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.


road!


Labor Summary Specified Rate

22

Employee Names are identified by Acronym. Only

staffing categories in executed WA may be billed

Contract rate for staff category


road!


Deliverable Summary Lump Sum

23

Deliverable description should match description from Table of Deliverables

Deliverable amount should match Table of

Deliverables


Lump Sum Table of Deliverables

24

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


Summary of Total Amount Invoiced

25


Travel Expense Summary

26

Remember you can only invoice for travel expenses within your executed WA!!


Other Direct Expense Summary

27

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!


Additional Information

28

• Prompt Payment ActCorrect 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. § 2251.021(b) http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2251.htm#2251.021

• Payment StatusTo check payment status, view detailed payment information and request advance payment notifications from the State Comptroller’s office @ https://fmx.cpa.texas.gov/fmx/payment/resources/search.php

• Direct Deposit (strongly recommended)To set up direct deposit of payments: http://www.window.state.tx.us/taxinfo/taxforms/74-176.pdf

• Large files can be sent using the TxDOT drop box. https://ftp.dot.state.tx.us/dropbox/


Common Invoice Issues that Delay Processing

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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.

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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 e-mail 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.

Common Invoice Issues that Delay Processing


Frequently Asked Questions

31

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


Frequently Asked Questions

32

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


Frequently Asked Questions (continued)

33

Can the vendor apply a handling fee or pass thru fee for sub-provider 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).


Frequently Asked Questions (continued)

34

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.


Additional Questions and Discussion

35


Contact Information

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Tamika GriffinTxDOT | PEPS Service Center for Divisions(512) [email protected]

Tamika GriffinTxDOT | PEPS Service Center for Divisions(512) [email protected]

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