NIH ACQUISITION MANAGEMENT COMMITTEE SYMPOSIUM OFM – Commercial Accounts Branch. Presenter Robin Herring October 2006. Jaime Otero-Zuazo. Welcome!. INVOICE PAYMENT PROCESS . FOREIGN CURRENCY PAYMENTS. INTEREST PAYMENTS. FUTURE INITIATIVES. QUESTIONS AND ANSWERS. Wrap Up.
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OFM – Commercial Accounts Branch
Manual Payment Process
The invoice is received in the mailroom of the Commercial
Accounts Branch (CA) from the IC Contracts Operations Branch (COB).
The invoice is date stamped and distributed to the Contracts
Section of CA. Invoices are then sorted and given to the
assigned technician for processing.
The invoice is reviewed to ensure compliance with the rules
and regulations governing the bill payment process.
The Prompt Payment; Final Rule requires that the Government
make timely payments to vendors, but that such payments not
be made earlier than seven (7) days prior to the due date.
For most payments this due date is 30 days after receipt of a
proper payment request or the acceptance of goods or services,
whichever is later. For fixed price and final invoices, the due date
is 30 days after the Contracting Officer’s approval of a proper payment
The type of schedule and payment (Check or Electronic Funds Transfer
(EFT)) depends upon the availability of the vendor’s banking information.
The Debit Collection Improvement Acts states that any entity doing business
with the Federal Government must be paid by Electronic Funds Transfer
unless there are documented circumstances that prevents this, and then
a waiver must be requested from the agency.
Payments are prepared for processing on a payment schedule. This payment
schedule is submitted to the U.S. Treasury via the Secure Payment System
(SPS). Payments are not disbursed from the NIH.
Accounting information is then entered into the accounting system.
The data will appear in Data Warehouse the following day if there are no errors.
- For those ICs that do not use the RCM/ADB, a technician will enter payment information directly from the hardcopy of the approved invoice provided by the IC. The invoice is then approved by approving official. A technician will access the payment request screen daily for invoices entered in the RCM/ADB for payment.
- A “payable date” is entered based on the “invoice received date” shown on the screen. The invoice received date is the date invoice was received in the individual IC. The payable date is 30 days from the invoice received date, unless fixed price or final invoice. The payable date would then be 30 days from contract officer approval date.
- Invoices are then scheduled, certified by Certifying Officer and sent to Treasury for disbursement.
An invoice requesting payment in foreign currency is scheduled on an
SF1166, “Voucher and Schedule of Payment: and sent to the Kansas
City Financial Center (KFC) for processing.
The KFC will process the payment once it verifies that the certifying
officer on the SF1166 matches a signature provided on file.
An individual SF1166 may contain either wire payments or check
If a payee requests a wire payment instead of a check, the SF1166
should be annotated to indicate a “WIRE PAYMENT” is requested,
along with supplying the required data to accomplish the wire
Agencies should use the SF1166 to supply the KFC with the following
information to initiate a wire or check payment:
Payment information is entered into SPS and printed out.
S.W.I.F.T Code (optional, provide only if available)
Bank Identifier Number
Bank Account Number
- The U.S. Department of the Treasury will do the conversion of foreign currency to U.S. dollar amounts. The State Department U.S. Disbursing Office will mail “foreign payment detail report” to address listed on SF1166. The detailed information includes check number, foreign currency amount, U.S. dollar amount, and payment issue date.
Interest begins the day after payment due date until payment is
made and continues until the funds are either deposited
electronically or the anticipated date a check will be received
by the contractor.
If payment is 30 days late or less, simple daily interest is
If payment is over 30 days late, monthly compounding interest is
Agencies shall pay any late payment interest from the funds
available for the administration of the program for which the
penalty occurred. The Prompt Payment; Final Rule does not
authorize the appropriation of additional funds to pay interest.
Interest will be calculated and will accrue daily at the interest rate
applicable on the day after the due date through the payment date.
When interest is owed and not paid, interest will accrue on the
unpaid principal until paid, up to 1 year.
Late payment interest shall be paid without regard to whether the
contractor has requested payments of such interest, and shall be
accompanied by a notice stating the amount of the interest penalty,
the number of days late and the rate used. Agencies should pay
interest together with the underlying principal payment.
Interest of less than one dollar need not be paid.
The Commercial Accounts Office is in the process of developing yet
another means for Contractors to access bill payment information.
In the near future, Contractors whose invoices are paid through the
Research Contracts Modulewill be able to access their payment
information using the Commercial Accounts Bill Payment Website.
This website is currently being utilized by vendors on Purchase Orders,
Records of Calls, Training Nominations, and other Simplified Acquisition