1. An Overview of the Payment Process

2. 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

3. 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

4. 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

5. 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.

6. 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

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

8. 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

9. 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.

10. Pre-Audit Process:
The payment is in compliance.
Invoice complies w/ 69I , 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.

11. 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: days

12. Sample Questions taken from your submissions:

13. Please define grant

14. What does a payment deliverable look like?

15. 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?

16. Are there universal standards used during the payment review process?

17. 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?

18. 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?