Accounts Payable Bureau

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Accounts Payable Bureau
Randy Newtown Michael Weld-Eyob William
Smith Jenny Hedderman
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Accounts Payable Bureau
Contract Unit Manager Randy Newtown
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New - Contract Department Liaisons

• Staff are assigned about 30 departments each
• Paperwork submitted to CTR is no longer assigned
  to staff by object class the group meets each
  morning work is distributed evenly, regardless
  of object class
• If a document is rejected for any reason the
  person rejecting the document e-mails the
  department and copies the departments contract
  liaison
• Department Liaison is responsible for working
  with their departments on any MMARS encumbrance
  related clean-up issues (Departments must ensure
  that they are using the latest version of the
  Expenditure Classification Handbook)

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Contract Processing/Returns

• The unit refers to a checklist of about
• 75 rejected/return reasons

• The group verifies that the
• Contract package is complete when
• RFR, Winning Bidders Response, Commonwealth
  Contract and TC are included
• The Commonwealth Standard Contract/Amendment Form
  is completed accurately
• Contract is signed and dated or corrections have
  been initialed by both the vendor and department
• Health and Human Service Contract Attachments are
  completed
• Attachment 1 (Program Cover Page) or Attachment 3
  (Program Budget sheet)

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Contract Processing/Returns

• Space Lease Attachments Require Backup
  Documentation for Approval
• DCAM Transaction Approval Form 3 OR 4 or Exhibit
  E (Landlords beneficial interest disclosure
  statement)
• Lease-Purchase Agreement paperwork required
• Commonwealth of Massachusetts Fiscal Affairs
  Division Tax Exempt Lease Purchase (TELP) form or
  the Statewide Tax Exempt Lease Purchase Quotation
  form
• Grant supporting documentation required
• Legislative/Legal Authorization or posting

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Contract Processing/Returns

• Construction package is complete when
• Construction Contract or Notice to Proceed
  included
• MMARS data matches supporting paperwork
• Contract duration dates matches dates in MMARS or
  Vendor on Contract matches vendor in MMARS
• Note A transmittal cover sheet is required with
  all documentation submitted to the Contract Unit

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Contract Processing/Returns

• Board Award Field Comptroller/OSD Policy
• Board award field MUST be completed for all
  non-statewide contracts
• Completing the board award field facilitates the
  ability of the Quality Assurance Bureau to link
  the encumbrance transaction to the procurement
  method.
• In the Board Award field Departments must enter
• the RFR number - or
• In the absence of an RFR number, a department
  assigned contract tracking number or descriptive
  text should be entered - or -
• one of the Procurement Exceptions as follows
• INP for Incidental Purchase
• LEG exempt for Legislative Exemption
• Emergency for Emergency Contract
• Collective for Collective Purchase or,
• Interim for Interim Contract
• Encumbrances for non-statewide contracts with a
  Blank Board Award field will be rejected from the
  CTR/OSD worklist

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Contract Processing/Returns

• If a transaction is rejected, the department
  must
• Make the necessary corrections
• Resubmit the document to Pending status
• Notify appropriate CTR staff member that document
  has been corrected
• Resubmit paperwork to CTR if it had been returned
  to department

If the transaction is not corrected within 5
days, all the paperwork is returned to the
department
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Accounts Payable Bureau
Accounts Payable Bureau Director Michael
Weld-Eyob
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Delegated contracts/Department Responsibilities

• Contracts have been delegated to Departments
• Departments are responsible for following all
  contract laws, regulations and CTR policies
  procedures
• Encumbrance using statewide MAs must reference
  the agreement in the header section of the
  encumbrance
• GAE/INP transaction should not be used to
  circumvent contract law
• Contract splitting is prohibited
• Multi-year contracts must be processed with one
  Doc ID/multi-year encumbrance
• Contract Employee
• Must have T Cs and Standard Contract Form
• Employment Status Form must be completed and
  filed with Contract (See Individual Contractors
  policy)

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Delegated contracts/Department Responsibilities

• Open Order Encumbrance
• CT with event type PR51 Request for Approval Form
• Must be supported by individual contracts
• All contracting requirements apply

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Updated Encumbrance Correction PolicyCEC/GAEC

• New Event Type PR22 Credit Memo
• Workflow
• Comments Field Requirements

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Updated Encumbrance Correction PolicyCEC/GAEC

• Event Type - PR22 Credit Memo
• Restores money to the accounting line and
  creates a credit memo in MMARS that offsets a
  future payment to same vendor

• The credit memo will only offset a payment to
  that vendor within one department and one payment
  disbursement category.
• (if department A creates a credit memo for
  vendor X in disbursement category 600, the next
  payment offset to vendor X will be from
  department A within disbursement category 600).
  
• The vendors payment will not be offset by
  another departments payment to that vendor or by
  a payment by the same department but within a
  different disbursement category.

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Updated Encumbrance Correction PolicyCEC/GAEC

• Workflow
• Encumbrance Corrections using Event Type PR22,
  once validated and submitted, will go directly to
  a final status (no pending status)
• Departments must keep all supporting
  documentation in a contract file

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Updated Encumbrance Correction PolicyCEC/GAEC

• Comments Field Requirements for CEC and GAEC
  using Event Types PR 20 and PR21
• Enter a complete justification for processing the
  correction
• Enter the ER Doc ID in those circumstances where
  funds have been returned by the vendor and an ER
  transaction has been processed
• Note The CEC or GAEC should not be submitted
  until the ER is processed to final

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Accounts Payable Bureau

• Payee/Payments Unit
• Manager Bill Smith

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Payee/Payments

• Bill Paying Policy
• Prompt Payment Discounts
• Payees (Vendor/Customer)
• Advances
• Credit Cards

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Bill Paying Policy

• What is it?
• Why is it important?
• Who is in charge?
• How do you make it work for you?
• How do you make it work for your vendor?
• Where do we stand?
• 74 on time in August
• Where do we need to go?
• 90

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Bill Paying PolicyDays to Pay Timeline
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Prompt Payment Discount

• What is it?
• Why is it important?
• Who is in charge?
• How do you make it work for you?
• How do you make it work for your vendor?
• Where do we stand?
• Where do we need to go?

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Prompt Payment Discount
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Prompt Payment Discount
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Payees (Vendor/Customer)

• Common Issues
• Vendor physically moves to new location.
• In this scenario, a W-9 and VCM are used to
  modify the following fields
• Master Address ID (consists of Payment
  Procurement addresses)
• Legal Address (1099 information)
• Business Type (W9 information)

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Payees (Vendor/Customer)

• Common Issues
• Vendor wants to ADD or CHANGE a payment address.
• Preferred method W-9 or
• Vendor must submit request on letterhead
• Department responsible for authenticating
  signature on either W-9
• or Letter using the Contractor Authorized
  Signature Listing
• Department modifies VCUST record (VCM)
• Insert line for new payment address and ID
• Insert line for new procurement address and ID
• For changes - Change the Master Address ID

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Advances

• Emergencies can occur at anytime!
• All Departments should have an Emergency DYNACASH
  account

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Advances

• Advance sequence
• Encumbrance of Advance (EAV)
• Request for Advance (RA)
• Expenditure of Advance (EA)
• Return of Advance (AR)

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Advances

• EAV Encumbrance of Advance
• Vendor line must be inserted
• vendor code should not be used
• Must use x75 object code

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Advances

• RA Request for Advance
• Document Unit required
• DYNACASH (Category 705) marked single
• Must use an x75 object code

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Advances

• EA Expenditure of Advance
• Must use detailed object codes (not x75)
• Supporting documentation must be submitted to CTR
  for review and approval within 30 days

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Advances

• AR Return of Advance
• Must be submitted on a timely basis

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Credit Cards

• Department are encouraged to enroll in the credit
  card program.
• Can be used in emergency situations
• Can be used for incidental purchases
• Can not be used for services

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Legal Unit

• Jenny Hedderman Deputy General Counsel

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DEFINITION OF GRANT

• Financial assistance, with or without matching
  funds or resources, provided under contractual
  terms to assist the Grantee in the achievement or
  continuation of a specified public purpose to
  benefit the general public or a segment of the
  general public consistent with the Grantor
  department's legislative authorization.

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DEFINITION OF SUBSIDY

• Mandated (non-discretionary) payments or
  transfers appropriated by the Legislature as a
  direct payment, transfer or subsidy of a
  specified amount to a designated recipient
  entity, and which does not specify the use as a
  Grant, contract or for a program.

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Grant vs. Subsidy

• In most cases, unless the language is very clear
  that the funds are to be paid or transferred
  to a recipient, the language will be interpreted
  to be a grant.
• However, irrespective of whether a grant or
  subsidy is chosen, the Department has the same
  oversight responsibility for the proper
  expenditure of funds and fulfillment of the
  prescribed mandate.

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When a formal public notice of grant is required
(non earmarked funds)

• A formal public notice of a grant application
  will be required under 815 CMR 2.00 whenever a
  department plans to disburse discretionary grant
  funding of state appropriated funds which do not
  specifically identify the grant recipients to
  receive funding and
• the total anticipated value of any single grant
  award may exceed 50,000 for the duration of the
  grant or grant program, or
• the pool of potential eligible grant recipients
  includes, or may include, non-public entities, or
• the total available funds for disbursement in any
  fiscal year exceeds 200,000.

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Methods of formal public notice.

• A formal public posting of grant availability and
  posting of selection results may be made as
  determined appropriate by the department by
  either
• posting on Comm-PASS (preferred method)
• posting in the Central Register
• publishing a notice in a newspaper or other
  publication reasonably targeted to reach the
  eligible grant recipients or
• any other method of publishing or posting that
  will provide reasonable public notice to
  potential grant recipients of the availability of
  the grant and the final grant results (which may
  include the departments website).

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If grantee selection made through other than open
public award process

• (excluding incidental grants and earmarked
  grants) the department must post on Comm-PASS or
  other public posting, a notice of intent to award
  a grant(s) which identifies
• the selected grantee(s)
• the grant amount(s)
• the purpose of the grant funding
• the scope of grant performance to be achieved or
  funded under the grant
• the duration of the grant and
• a justification of
• why the selection of the grantee(s), without an
  open public process is either necessary,
  inefficient or would not support the purposes or
  timely disbursement of the grant(s), and
• why the award is fair and reasonable and in the
  best interest of the department, the grant
  funding authority, and the Commonwealth.

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NO PASS THROUGHS

• State finance law does not recognize
  pass-throughs
• With earmarked funds, there is a misconception
  that the funds are promised to a recipient and
  merely need to be provided to a recipient with no
  oversight by the paying Department
• Although a Department may not be in charge of
  implementing a mandate/earmark, the Department
  remains responsible for ensuring that the
  purposes of the mandate/earmark are fulfilled and
  for oversight of the proper expenditure of funds

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Subsidy Management

• Subsidy Agreement should be signed outlining the
  purposes of the subsidy if stated
• Recipient must identify what periodic and final
  reports will be provided to ensure compliance
  with Legislation
• Department responsible for monitoring performance
  of Recipient during subsidy period and receive
  confirmation of proper expenditure of funds

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Grant Management(All sources of funding)

• Good grant management does not mean that funds
  are provided and the Department is finished with
  the grant for the fiscal year
• Grant management requires oversight and
  monitoring throughout the life of the grant
• Grant payments must reflect Grantees need for
  payment
• Payments should not be paid in one lump sum at
  beginning of grant, but should be set up with
  periodic payments reflecting needs of Grantee
• Periodic payments should be contingent upon
  Grantees provision of periodic updates of
  performance and expenditure of funds
• Additional funds should not be made without
  periodic reports, and if Grantee has not spent
  previously provided funds. (Grantees should not
  be holding funds for more than 30 days or the
  Commonwealth is losing valuable investment
  opportunities
• Department responsible for monitoring
  performance of Recipient during the grant period
  and at the end to ensure completion of grant
  requirements and proper expenditure of funds

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Cost Recovery Contract

• Completed a completive bid and selected SKR to
  perform statewide cost recovery reviews.
• Cost Recovery Review will cover MMARS payments
  made during FY 2005 2006.
• All payments will be included in the cost
  recovery review except for Purchase of Services,
  Medicaid and Payroll.
• This is a contingent fee contract.
• All cost recovery reviews will be coordinated and
  pre-scheduled with agencys CFO in conjunction
  with CTR SKR.

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Accounts Payable