Chapter 11: Billing and PaymentsAnchor: #BGBIDFBG
Section 1: Invoicing and Payment ProceduresAnchor: #i1004531
The TxDOT Utility Liaison or the LPA should encourage the utility to submit billings as soon as its adjustments are complete, and records of costs and expenditures are processed. Failure to submit billings promptly could result in loss of records and forfeiture of reimbursement.
The ROW Division has developed a booklet entitled Reimbursement Guidelines and Billing Procedures for Utility Adjustments (see Appendix A) for District distribution to utilities and LPAs. Use and distribution of this booklet, and use of lump-sum agreements for utility adjustments, should aid in the billing process.
The billing/payment process is one step in the coordination of utility adjustments between the utility, the LPA, and TxDOT. The responsibilities of the participants are listed below.
If a utility does not submit an invoice within 24 months after the end of a fiscal year, (i.e., by August 31, 2005 for the fiscal year ending August 31, 2003), the reimbursement must go through the Miscellaneous Claims Process, which may require the reauthorization of funds by the State Legislature. Therefore, TxDOT encourages utilities to submit their billings with this time frame.Anchor: #i1004567
The “Prompt Payment Law”
In 2001, the Texas Legislature enacted the “Prompt Payment Law” now codified in Government Code §2251. The law prescribes that a payment by a State governmental agency under a contract executed on or after September 1, 1987, is overdue on the 31st day after the later of:
- Anchor: #OBDTHKQR
- the date the governmental entity receives the goods under the contract; Anchor: #FXCEQMIJ
- the date the performance of the service under the contract is completed; or Anchor: #YXCXYXAL
- the date the governmental entity receives an invoice for the goods or service.
A payment begins to accrue interest on the date the payment becomes overdue.
The renewal, amendment, or extension of a contract executed on or before September 1, 1993, is considered to be the execution of a new contract; therefore, receipt of a new invoice under a revised contract begins another 30-day period during which the invoice must be paid before interest begins accruing.
Therefore, it is imperative that the Districts and ROW Division make every effort to process utility payments in a timely manner, and thereby avoid payment of interest.
Any payment resulting from an audit, or as a result of and LPA agreement, is not subject to the Prompt Payment Law.
For further information, refer to the Comptroller's Purchase Policies and Procedures Guide.Anchor: #i1004626
Participant Responsibilities in Billing/Payment Process
- Anchor: #OMIMITJP
- Anchor: #HFWIJAUB
- Provide “as-built” plans, if there is a significant difference from approved plans. Anchor: #VURAWNRC
- Execute District-prepared quitclaims, if applicable. Anchor: #UWISUKQW
- Maintain complete and accurate records of its involvement in preparation and accomplishment of the adjustment(s). Anchor: #MXGRGJXH
- Provide definitions of procedures, descriptions of practices, and explanations of materials used to document the type and nature of adjustments. Anchor: #MECUIBMW
- Submit a single comprehensive billing upon compilation/summation of all record costs. Anchor: #YNKEFLFR
- Submit billings in a manner that will allow correlation to the original estimate. Anchor: #PDEGWJPP
- Respond promptly to requests from TxDOT or the LPA. Anchor: #GCCGRURJ
- Maintain detailed billing records demonstrating compliance with 'Buy America' provisions; the documentation must be available for review in the event of an audit. Anchor: #BFGFNYHP
- Utilities shall use TxDOT Form 1818 and provide to their suppliers to certify materials used for the project comply with 'Buy America' rules. Anchor: #XCINITJC
- All items that are subject to Buy America must be identified in the utility agreement.
- Adhere to TxDOT guidelines and policies in dealing with utilities. Anchor: #LVFNVFCC
- Submit executed quitclaims, if applicable. Anchor: #KRDROEED
- Maintain records of installations and expenditures. Anchor: #MDTDKGCR
- Respond promptly to requests from the utility and TxDOT. Anchor: #DJDFOGQI
- Promptly process reimbursement requests for eligible expenditures upon completion of adjustments. Note: Fees for recording quitclaims, releases of easement, and other documents are not eligible for TxDOT participation. However, fees for recording replacement right of way interests acquired by the utility in its own behalf are eligible.
- Provide guidance to utility accounting/billing personnel regarding requirements of reimbursement procedures when work is authorized, or as soon as possible. Anchor: #JWWYIRTH
- Assist the LPA or utility with forms and requirements of reimbursement procedures. The TxDOT Utility Liaison should aid the LPA or utility in preparing the forms. Anchor: #OHYXTTTN
- Request an accounting/billing contact from the utility when the plan of adjustment is being discussed. Anchor: #NYTYHCLU
- Promptly contact the utility for final billing upon the completion of work. Follow up as needed. Anchor: #OWLKFVPL
- Prepare and have utility execute all necessary quitclaims, if applicable. Anchor: #AFIKEITG
- Review, approve, and recommend final billing for payment. Anchor: #SSYFUAVP
- Provide clarification and/or additional information to the ROW Division and Audit Office/External Audit Section, as requested. Anchor: #YJUXTBGD
- Ensure that payment is made in accordance with the “Prompt Payment” process.
- ROW Division
- Provide guidance, assistance, and on-site support to District personnel on all aspects of utility reimbursements. Anchor: #CFCEYJYN
- Review all District-prepared and executed quitclaims, when applicable. Anchor: #XCSRIVCD
- Process utility reimbursement claims for payment. Anchor: #EAYUNFWJ
- Process final reimbursement claims to the Resource Management Section, ROW Division. Anchor: #KFJLJFTU
- Ensure that payment is made in accordance with the “Prompt Payment” process.
- Audit Office/External Audit Section
A flowchart that may act as a guide to the progress of a request for payment showing the steps involved in the billing/payment process is available.Anchor: #i1004829
Use of Form ROW-A-15, Payment Request
The District should use Form ROW-A-15, generated through ROWIS for making payment requests involving utility adjustments – this includes payment requests for partial and final billings. Send Form ROW-A-15 to the ROW Division for final review. The ROW Division retains a copy and submits the forms to the Finance Division for issuance of State warrants by the Comptroller’s Office. The Finance Division forwards the warrants pertaining to the payment requests directly to the Payee.
The following information is required on Form ROW-A-15, as applicable. For unusual circumstances, contact the District accountant for proper billing codes.
- Anchor: #OTNWWCXK
- Name of Payee. Enter name exactly as it will appear on the State warrant. Anchor: #XLJGSHLL
- Date. Enter date you are completing the ROW-A-15. Anchor: #HFXGCSDV
- Address. Enter remittance address of payee. Anchor: #RKDWGKIK
- City & State (of payee's remittance address) Anchor: #DPSRINGT
- Delivery Date. Enter the date that product or service is delivered and determined acceptable according to procurement requirements. This is normally determined by the date stamp when received by TxDOT. Anchor: #GXPIAJVE
- Payee ID Number. Enter the Payee Identification Number (PIN), including payee’s mail code, of the payee. The State Comptroller’s Office prepares State warrants based on data entered in the Texas Payee Identification System (TPIS), which requires PINs. The name and address entered in Form ROW-A-15 must be the same as produced by the PIN. Establishing PINs with accuracy is very important. Ensure that the last three digits of the PIN are the mail code, which generate the remittance address shown at the top of the form. Anchor: #QHQQKQFK
- Invoice Date. Enter the date of the invoice. Anchor: #CGJAIUBJ
- Invoice Number. Enter the vendor's invoice number. Anchor: #GAQIBWTC
- Fiscal Year. Enter the fiscal year that the work/adjustment was performed or completed. A fiscal year runs from September 1 through August 31. For example, if an invoice is delivered and is acceptable on September 2, 2005, for work performed during the month of May 2005, enter the fiscal year of 2005. For work/adjustment performed more than two years before the current fiscal year requires special processing; contact the Resource Management Section of ROW Division. Anchor: #BJQJRWKQ
- Source Unit. Entered only by Finance Division. Anchor: #SHMDMWPG
- Description. Include the Federal project number when applicable. The description of charges should indicate whether a “Partial Billing” or a “Final Billing” is being submitted. Anchor: #EOIUQSQX
- Quantity. Enter the quantity for the service or goods delivered. Anchor: #KEQIEPUA
- Unit Price. Enter the unit price for the service or goods delivered. Anchor: #UOBNEDQI
- Amount. Enter the total of quantity times unit price for each item. Anchor: #SCMQJENO
- Total. Enter the total amount of the invoice. Anchor: #MTPXEJWX
- IAC (Inter-Agency Contract) or Misc Contract Number. Enter the work order number. Anchor: #NFOFXRCP
- TxDOT Req. No. Enter the requisition number. Anchor: #PKUUQTTR
- Purchase Order No. Enter the purchase order number. Anchor: #LBAOKFHP
- Date. Enter the date of purchase order. Anchor: #JTRKMQWG
- District or Division No. Enter the applicable District or Division code number. Anchor: #SAIBFVTS
- Segment ID No. Enter the appropriate segment identification number. Anchor: #QGLPSNYY
- Detail. Enter the Project ROW CSJ Number. Anchor: #ELAUGVEJ
- Amount. Enter same amount as above. Anchor: #DGKOIPPJ
- Function Code. Enter Function Code 500 for utility adjustment work. Anchor: #VYTPGQGR
- Object of Expenditure Code Enter Object of Expenditure Code 393 for utility adjustment work. Anchor: #HNGNUYWM
- Agency Verification/Audit. The original Form ROW-A-15 must be signed by the District Engineer or designee, attesting that an agency verification/audit was performed and that the invoice is correct and unpaid.
Other Items Relevant to Billing Preparation
- Anchor: #AFRVFNPW
- In addition to Form ROW-A-15 showing the beginning and ending dates of utility adjustment, it should show the description and site of the project, the Federal-aid project number (if applicable), CSJ numbers (identified as ROW and/or Construction), and assigned “U” number. Anchor: #JYNCTSLU
- A “date received" is the date on which the invoice is received at the District and does not need modification, correction, or additional documentation. This must be established for utility adjustment payment requests and initiates the provisions of the Prompt Payment Act. Anchor: #VSAWXJUY
- If the invoice is found incorrect, a request for correction should be made. Anchor: #FIOWIGLW
- The date for payment of reimbursable recording fees should be the date the service is performed. Anchor: #UJPGURSV
- Form ROW-A-15 may be modified to indicate
partial reimbursement, and should be submitted along with Forms
Certificate for Partial Payment for Utility Adjustment, and
Support for Certificate of Partial Payment for Utility Adjustment (for
- Upon submission of a final billing, when
prior reimbursement is made, Form
of Utility Adjustments should be submitted, as well as Forms
and Certification of Partial Payments for Utility Adjustment (for
LUP only), and
Tabulation and Certification of Partial Payments for Utility Adjustment (Final)
(for LUP only), as appropriate.
This data is necessary for determining the work accomplished, and the amount reimbursable to the LPA, if applicable.
- Upon submission of a final billing, when prior reimbursement is made, Form ROW-U-45, Tabulation of Utility Adjustments should be submitted, as well as Forms ROW-U-47A, Tabulation and Certification of Partial Payments for Utility Adjustment (for LUP only), and ROW-U-47B, Tabulation and Certification of Partial Payments for Utility Adjustment (Final) (for LUP only), as appropriate.
- All final billings must be submitted within 12 months of the date the work is completed by the utility and accepted by TxDOT. Anchor: #SYCVDTRY
- The original Form ROW-A-15 must be: Anchor: #EAHVEYEY
- All quitclaims (Form ROW-N-30) shall be prepared in accordance with the example provided.
Billing Assembly Checklist
The following items should be attached to a final billing assembly for submission to ROW Division. As a final check on the billing assembly before processing for payment, a Utility Billing/Payment Checklist for District use, Form ROW-U-BillChkDist, is available for attachment to any adjustment submissions.
- Anchor: #LHGYVUNA
- Form ROW-A-15, Billing Statement Anchor: #XUGPHYQF
- Final Billing Anchor: #VAETJPSN
- Submit 2 copies.
- Show beginning and ending dates of adjustment on billing or attachment. Include 2 copies of the following: Anchor: #HPDBVGJM
- statement reflecting address of records/accounts for audit and mailing purposes, Anchor: #OQUQEPPC
- invoices, Anchor: #NHYOVBAY
- salvage inspection statement, Anchor: #UCIHELXF
- bid specifications and bid tabulation, and Anchor: #BEHVSKWJ
- original and one copy of District’s transmittal memo, with clarification, recommendation, and an explanation of any unusual underruns or overruns.
- Submit two originals (with signatures), if not previously submitted, and two copies of the Standard Utility Agreement. Anchor: #NTBVFWQL
- Submit one recorded original of Anchor: #OACKILMT
- Form ROW-N-30, Quitclaim, or ROW-N-17, Release of Easement,or ROW-N-85, Subordination of Mineral Leasewhich ever is applicable, if not previously submitted.
- Special Considerations
- Any conditions applied at agreement approval should not be reflected in billing. Anchor: #ASOKSVKO
- Format of billing must agree with format of estimate, so correlation is possible. Anchor: #GRTMYNKD
- Billings must be compared and reconciled to the approved agreement, plans, and estimate. Anchor: #ICWDALKB
- Deduct any betterments not originally included in the agreement. Otherwise, betterment ratios must be the same as originally approved. Anchor: #BLQHIGRD
- Consulting engineering services in the billing must have prior District approval, with an approved contract in District files. Anchor: #UHHALGGW
- Major changes in the scope of work, not to exceed tier level, must be approved in an amendment to the agreement by the District or ROW Division. Anchor: #UNMPBJAX
- Minor changes must be explained in transmittal letter sent to ROW Division. Anchor: #OWCJEOKH
- Identify low bid contractor used. Anchor: #MTJJKIWD
- Place a copy of the appropriate pages of the inspector’s project diary in District files and use it to verify charges on the billing. Anchor: #GVKCBIFM
- Correctly apply the approved betterment credit, accrued depreciation, salvage credit, and eligibility ratio. Anchor: #JXECJLJO
- Show the beginning and ending work dates. Anchor: #BDGUHFIU
- Check that all extensions and totals are correct.