Section 4: Managing Payment Audits
Anchor: #i1002180Overview
DMS requires the District verify all contract payment audits, assist in resolving any discrepancies, and track if the DBE goal will be fulfilled.
Anchor: #i1002190District Responsibilities
Performing a monthly audit in DMS
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- On the Contract Audit: Audit Summary for Total Contract page, view the total payments TxDOT paid to the prime contractor and the reported payments the prime contractor paid to the subcontractors. Anchor: #WAGHCJWO
- Verify the total payments paid to the prime contractor are accurate. Anchor: #i1000371
- Verify the prime contractor reported payments to the subcontractors (or zero payment entries if no work is performed). Anchor: #GRDKJHFJ
- Verify the DBEs’ confirmed payment data received from the prime contractor. Anchor: #i1000379
- Follow-up with prime contractor on any discrepancies. Anchor: #i1000383
- Complete audit by the end of the month.
If prime contractor fails to perform monthly audit:
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- Contact the prime contractor with a reminder of its contractual obligation. Anchor: #i1000391
- When required, escalate the issue. Escalated actions may include suspending work, withholding all or a portion of an estimate, withholding project acceptance, placing contractor in default for breach of contract, or other actions deemed appropriate.
DMS Dashboard Set-up for Payment Audits
The DMS dashboard can be configured to show Contract Audits as seen below.
Please see B2Gnow Staff User Manual Chapter 1 (pages 4-5) for information on the DMS dashboard.
Required Monthly Reporting Audit by the DDC
Each month’s total payments to the prime contractor will be combined and an audit will be created by DMS. The district staff will need to complete the audit by the end of the month. The District will utilize the following steps for the monthly audits.
Step 1: Log in to DMS.
Step 2: Locate desired contract and navigate to Contract Management page.
Step 3: Click on the Compliance Audit List tab.
The screenshot below shows the March 2017 audit has not yet begun. Audits will be added automatically.
Step 4: Click on View Audit under the Actions column.
Screenshot showing March 2017 audit has begun and awaiting response from prime.
Step 5: Verify payment from TxDOT to prime contractor is accurate.
Step 6: If the audit is incomplete, send reminder to the prime contractor.
If a prime contractor fails to report payments to subcontractors:
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- Contact the prime contractor with a reminder of its contractual obligation. Anchor: #VOKUNOUN
- DBE prime contractors must report subcontractor activity for all subcontractors to include DBEs and non-DBEs.
Step 7: Verify the prime contractor reported payments to the subcontractors (or zero payment entries if no work is performed).
Step 8: Verify the DBEs confirmed payment data received from the prime contractor.
Scenario 1: Prime contractor has not entered payment details.
Scenario 2: Prime contractor has entered payments and one subcontractor has confirmed payment. Confirmation of payment by three subcontractors are still pending.
Scenario 3: One of the subcontractors has indicated a discrepancy.
Scenario 4: Subcontractors have confirmed payment including final payment as selected by subcontractor.
Step 9: If audit is to be the final audit, the District will select the mark as Final Audit option on the Compliance Audit: [Month] [Year].
DMS Process for a Zero-Dollar Estimate Month
Each month’s total payments to the prime contractor will be combined and an audit will be created by DMS. This process will not occur for months with a zero-dollar estimate. In this instance, the District will utilize the following steps.
Step 1: Log in to DMS.
Step 2: Locate desired contract and navigate to Contract Management page.
Step 3: Click on the Compliance Audit List tab.
The screenshot below shows the March 2017 audit has begun, but no payment is entered.
Step 4: Click on View Audit under the Actions column.
Step 5: Click on Submit in the Payment to Prime section.
Step 6: Enter $0.00 for the payment, enter a date and comments.
Step 7: Click Save.
Step 8: Inform the Prime Contractor that the $0.00 has been entered into DMS. Prime Contractor should enter any payments to subcontractors, if applicable.
Step 9: Verify the prime contractor reported payments to the subcontractors (or zero payment entries if no work is performed).
Step 10: Verify the DBEs confirmed payment data received from the prime contractor.