An Overview of the Payment Process

Section 17.03, Florida Statutes Provides: Audit procedures for sampling and auditing State disbursements, contracts, and grants Disseminate procedural and documentation standards for State payments Provide training and technical assistance

Why is the Audit Process Important? Ensures that the State is paying for valid claims Disbursements are in compliance with law and legislative intent The State is receiving the goods and services that are paid for The State has accurate financial reporting Your agency legal team will be involved in the creating the settlement agreement

How does the Payment Process Work? Each fiscal year the State’s Legislature and Governor sign the General Appropriations Act into law. This provides the legal authority for agencies to incur obligations. In early July the General Appropriations Act is loaded to the State’s accounting system (FLAIR). State agencies enter into contracts and grants and incur obligations

How does the Payment Process Work? Agencies are invoiced for goods delivered and/or services performed. State agencies enter disbursement transactions in FLAIR and create payment vouchers that include supporting documentation. DFS receives payment vouchers and performs the audit function. Upon successful audit, payments are made. Payments that are deficient are returned to the Agency.

How Does the Payment Process Work? Appropriation Agency incurs obligations Agency receives invoices and verifies service delivery Agency creates payment request and forwards to DFS DFS audits payment requests Warrants and EFTs are issued

Common Mistakes to Avoid During the Payment Process No receiving report/certification Minimum level of service not performed Invoice not compliant w/ 69I-40.002, F.A.C. Conflicting or inconsistent information provided FACTS criteria not met Authorizing document not provided Voucher schedule does not contain authorized signature

Common Mistakes to Avoid During the Payment Process Statutory Authority not present/identified Advance payment approval not provided Incorrect Object Code Split SWDN and amount not referenced Incomplete voucher packet submitted for Master/Participating agreements Contract Summary Form (printed from FACTS) not submitted

Pre-Audit Process: Auditors review voucher packets in order to determine or validate the following: The payment is authorized An obligation exists. Goods or services have been provided. Payment approved by agency. Payment has legal authority An agreement exists between provider and agency. The payment is properly supported. Acceptable invoice and sufficient supporting documentation provided.

Pre-Audit Process: The payment is in compliance. Invoice complies w/ 69I- 40.002, F.A.C. Deliverables invoiced in accordance with agreement. Minimum required level of service performed. The payment is being properly recorded by the Agency. Information in FLAIR is correct Payment and contract info recorded in FACTS Object code and Category are correct.

Payment Statistics In the 16/17 FY DFS audited 64,935 vouchers. 908,363 invoices The average time taken for DFS to process a voucher: 2.14 days

Sample Questions taken from your submissions:

Please define grant

What does a payment deliverable look like?

What supporting documentation is required to process a grant payment What supporting documentation is required to process a grant payment? How much support documentation is too much?

Are there universal standards used during the payment review process?

At this point in time, what is the long range plan for grant payments as far as utilization of FACTS vs PALM or even FLAIR? Any changes in the works?

Are there any plans to go paperless Are there any plans to go paperless? At least one of our vendors is submitting double-sided invoicing to save paper. How does this affect the audit process?