- Purpose:
The Prompt Payment Act requires that all invoice be paid within
30 days of receipt of the invoice or of the goods/services, whichever
is later. This procedure will help ensure that payment is made
within the guidelines established by this Act and thus avoid the
interest penalties provided for.
- Procedure:
In order to meet this requirement the unit ordering and receiving
the goods/services will have 15 calendar days to process the invoice,
the Fiscal Office be allowed 7 calendar days to process the invoice
after received and the remaining time will be allocated to mailing
time and processing in Austin. The disbursements section of the
Fiscal Office will monitor the timeliness of payment.
Any questions related to this policy should be directed to Shiao-Yen
Ko, Manager of Accounting Services at 979/845-4778.
Prompt
Payment Discounts
- Purpose:
To ensure that, where appropriate, units are taking advantage
of prompt payment discounts offered by vendors in accordance with
the General Appropriations Act.
- Procedure:
All invoices received at the unit level should be reviewed to
determine whether they offer a prompt payment discount. If it
is determined that such discounts are available and would be beneficial
to the state, processing of these invoices should be expedited.
When these invoices, and related vouchers, are sent to the disbursements
section of the Fiscal Office they should contain a visible red
"RUSH" sticker. This will notify personnel that processing
should take place in the manner that will allow for the discount
to be taken.
The disbursement section will also review all other vouchers received
to determine if discounts are available which the unit has not
taken advantage of. In these instances the unit will be contacted
so that the discount can be received.
Any questions related to this policy should be directed to Shiao-Yen
Ko, Manager of Accounting Services at 979/845-4778.
Payment
of Interest per the Prompt Payment Act
As you know,
Dr. Hiler's memorandum of December 3, 2001, all interest payments
on vouchers not paid within 30 days of receipt of the invoice,
or the goods/services, whichever is later, will be charged back
to the account assigned by the unit. In addition, in order to
meet the requirements of our recent audit by the System Internal
Audit Office, we are required to provide an explanation (on the
face of the voucher) for each item not submitted to the Fiscal
Office within 15 calendar days of receipt of the invoice or the
goods/services, whichever is later. If no explanation is provided,
you will be contacted by the Disbursements section, or Bill Gray
in our Management Review section, in order to obtain an explanation.
It is imperative
that we do this in order to insure that vendors are paid in a
timely manner in accordance with the Prompt Payment Act and that
audit recommendations are met.
If you have
any questions regarding this requirement please contact Shiao-Yen
Ko at 979/845-4778.
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