Chapter 11: Billing and PaymentsAnchor: #BGBIDFBG
Section 1: Invoicing and Payment ProceduresAnchor: #ISGKCXCT
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.
Refer to Appendix A entitled Reimbursement Guidelines and Billing Procedures for Utility Adjustments for additional guidance.
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.
In accordance with 23 CFR 645.117(i)(2), the utility owner will provide one final and complete billing of all costs incurred, or of the agreed-to lump-sum, within one year following completion of the utility relocation work, otherwise previous payments to the utility may be considered final.
If a utility owner has not submitted an invoice within 24 months after the end of the fiscal year in which the date the performance of the service under the contract is completed, (i.e., by August 31, 2017 for the fiscal year ending August 31, 2015), the reimbursement must go through the Miscellaneous Claims Process, which may require the reauthorization of funds by the State Legislature.Anchor: #i1004531
If a utility owner has not submitted an invoice within 24 months after the end of the fiscal year in which the date the performance of the service under the contract is completed, (i.e., by August 31, 2017 for the fiscal year ending August 31, 2015), the reimbursement must go through the Miscellaneous Claims Process, which may require the reauthorization of funds by the State Legislature. State Legislation determines that we can pay only for expenses incurred in a specific timeframe - the current fiscal year, plus the past 2 fiscal years.
A fiscal year runs from September 1 through August 31. For example, if an invoice is delivered and is acceptable on September 2, 2018, for work performed during the month of May 2019, enter the fiscal year of 2019 as the service date. Work/adjustment performed more than two years before the current fiscal year will have to be processed through Miscellaneous Claims. For example, any payment with fiscal year 2018 or older will be processed as a miscellaneous claim by the end of fiscal year 2021.
Under the Miscellaneous Claims Law, the Comptroller's office is required to pay any claim that satisfies the requirements of Subchapter B of Chapter 103, Civil Practice and Remedies Code, as provided by Texas Civil Practice and Remedies Code Section 103.151.
The Comptroller's office may not pay the following under Miscellaneous Claims Law, therefore will be voted by the legislature for payment:
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- A single claim in excess of $50,000 Anchor: #SLQOTPFK
- An aggregate of claims by a single claimant during a biennium in excess of $50,000 Anchor: #QAPJOQSY
- A claim concerning unemployment compensation warrants that have expired because they were not presented to the Comptroller's office for payment within the time period specified in Texas Labor Code Section 210.012.
ROW Division during the process will request that the payment be submitted as Miscellaneous Claims. Texas Comptroller of Public Accounts Form 74-209 will need to be filled out by the Utility. All supporting documentation will need to be submitted and the invoice will need to include the service date. The Utility Portfolio Section will serve as a liaison between the Comptroller and the Utility.Anchor: #i1004567
The “Prompt Payment Law”
In 2001, the Texas Legislature enacted the “Prompt Payment Law” now codified in Government Code Section 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:
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- 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. Please refer to ROW Payment Life Cycle Submission Timeline and Flow Chart.
Any payment resulting from an audit, or as a result of an 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
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- 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 or state Iron and Steel Preference Provisions; the documentation must be available for review in the event of an audit. Anchor: #BFGFNYHP
- Utilities shall provide the completed compliance documentation with reimbursement requests for items required to comply with Buy America or state Iron and Steel Preference Provisions; although, compliance of these items should be verified prior to installation. Anchor: #XCINITJC
- All items that are subject to Buy America or state Iron and Steel Preference Provisions 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.
- 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/ROW Utility Portfolio 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 Contracts and Finance Section, ROW Division. Anchor: #KFJLJFTU
- Ensure that payment is made in accordance with the “Prompt Payment” process.
- Audit Office/ROW Utility Portfolio 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 Payment and Voucher Page
The District should use the Payment and Voucher Page, through TxDOTCONNECT for making payment requests involving utility adjustments – this includes payment requests for partial and final billings. The supporting documentation needs to be sent to ROW_UtilityRequests@txdot.gov for review and processing. The ROW Division retains an electronic copy of the payment package 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 the Payment and Voucher Page:
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- Payment ID number Anchor: #JAUXOLWS
- Project ID Anchor: #IGSBKWYE
- Control Section Job Anchor: #KCHQUOYO
- Payment Amount Anchor: #CFKYWVWW
- Payment Type Anchor: #COFUTASE
- Organization Name Anchor: #GMWODMMR
- District / Division
The following information needs to be verified before payment submittal:
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- Address. Enter
remittance address of payee. Refer to TINS record.
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- Confirm with Project Delivery PM.
- City & State (of payee's remittance address) Anchor: #GBIXXHSB
- Service Date. Enter the completion date of work (ensure the date matches the Billing Checklist). Anchor: #ULHGPAYL
- Payee ID Number. Enter the Payee Identification
Number (PIN), including payee’s mail code
- To verify the PIN, use Uniform Statewide Accounting System (USAS). For assistance see Project Delivery PM. Anchor: #VIDCBVWM
- Note: If you have a Utility that has not requested a payment in a 12-month period, updated information will be needed. The system will be scrubbed and will result in the PIN being inactive. This will require a W9 and AP-152 to be sent through the FIN Portal “http://legacy-crossroads/org/fin/Central/VoucherCentral/tins-req1.htm”.
- Invoice Date. Enter the date of the invoice.
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- Date invoice received and date-stamped
- Invoice Number. Enter the vendor's invoice number. Anchor: #JWWFBRCC
- 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, 2018, for work performed during the month of May 2019, enter the fiscal year of 2019 as the service date. For work/adjustment performed more than two years before the current fiscal year will have to be processed through Miscellaneous Claims. Anchor: #UCOGPXMX
- Amount. Enter the total of quantity times unit price for each item. Anchor: #EUTCRKHI
- Total. Enter the total amount of the invoice. Anchor: #BMUDBINK
- Detail. Enter the Project ROW CSJ Number.
Other Items Relevant to Billing Preparation
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- 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. Note: If additional documentation is needed from a Utility, the payment supporting documentation is not complete and will require an updated date stamp when the additional documentation is received. 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
- For partial payment, form ROW-U-27 Certificate of Partial Payment for Utility Adjustment will be required (for SUP only). Anchor: #EAHVEYEY
- All quitclaims (form ROW-N-30) shall be prepared, recorded, and submitted prior to final billing.
Billing Assembly Package
Prior to processing payment, form ROW-U-BillChkDist Utility Payment/Billing Checklist should be attached.
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submittal (one PDF document)
- show beginning and ending dates of adjustment on billing or attachment Anchor: #HPDBVGJM
- statement reflecting address of records/accounts for audit and mailing purposes (TINS) Anchor: #OQUQEPPC
- invoices Anchor: #NHYOVBAY
- salvage inspection statement Anchor: #UCIHELXF
- bid specifications and bid tabulation Anchor: #BEHVSKWJ
- district’s transmittal memo, with clarification, recommendation, and an explanation of any unusual underruns or overruns
- Attachments Anchor: #SYQIJUAK
- 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 betterment 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, exceeding +/- $100,000.00 or +/- 25% of the approved agreement, must be approved in an amendment (Supplemental) to the agreement by the District or ROW Division. Anchor: #UNMPBJAX
- Minor changes must be explained in transmittal memo sent to the ROW Program Office. Anchor: #OWCJEOKH
- Identify low bid contractor used. Anchor: #MTJJKIWD
- Attach 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.