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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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presenter robin herring october 2006

NIH ACQUISITION MANAGEMENT COMMITTEE SYMPOSIUM

OFM – Commercial Accounts Branch

Presenter

Robin Herring

October 2006

Jaime Otero-Zuazo

welcome
Welcome!
  • INVOICE PAYMENT PROCESS       
  • FOREIGN CURRENCY PAYMENTS
  • INTEREST PAYMENTS
  • FUTURE INITIATIVES
  • QUESTIONS AND ANSWERS
  • Wrap Up
slide3

Invoice Payment Process

  • Foreign Currency Payments
  • Interest Payments
  • Future Initiatives
  • Questions & Answers
  • Wrap Up
invoice payment process
Invoice Payment Process
  • The Office of Financial Management (OFM) is the designated billing office (DBO) for the NIH unless a contract states otherwise. All payments, contracts included, that are not paid through the Payment Management System (PMS) are processed by this office.
  • To ensure prompt payment, the OFM requires fourteen (14) calendar days to process the invoice for payment. Therefore, the time between the date of the receipt of invoice from the contractor by the contracting officer and the date the approved invoice is received in the DBO shall not exceed sixteen (16) calendar days (see NIH Policy Manual, Chapter 6332-9).
slide5

Invoice Payment Process

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

request.  

invoice payment process1
Invoice Payment Process

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.

invoice payment process2
Invoice Payment Process
  • A Certifying Officer reviews the payment schedule for accuracy and the payment is electronically submitted to Treasury.  Treasury has 48 hours from the date payment is received to issue payment. 
invoice payment process3
Invoice Payment Process

RCM/ADB Payments:

-        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.

.

ADB System

slide9

Invoice Payment Process

  • Foreign Currency Payments
  • Interest Payments
  • Future Initiatives
  • Questions & Answers
  • Wrap Up
foreign currency payments
Foreign Currency Payments

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

payments.

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

payment.

wire payment
Wire Payment

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)

Payee Name

Bank Identifier Number

Bank Name

Bank Address

Bank Account Number

Currency Type

Amount

Invoice Information  

check payment
Check Payment

Payee Name

Payee Address

Currency Type

Bank Name

Amount

Invoice Information

foreign currency payments1
Foreign Currency Payments

- 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.

slide14

Invoice Payment Process

  • Foreign Currency Payments
  • Interest Payments
  • Future Initiatives
  • Questions & Answers
  • Wrap Up
interest payments
Interest Payments

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

calculated.

If payment is over 30 days late, monthly compounding interest is

calculated.

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 payments1
Interest Payments

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.

interest payments2
Interest Payments
  • Interest payments are not due when payment is delayed because of a disagreement between a Federal agency and a contractor over the amount of the payment or other issues concerning compliance with the terms of a contract.
  • In addition to late payment interest, a contractor shall be entitled to additional interest penalties if they:
    • (1) receive a payment after the payment due date which does not include the interest penalty also due.
    • (2) are not paid the interest within 10 days after the date on which the initial payment is made.
    • (3) make a written request, no later than 40 days after the payment date, that the agency pay such additional penalties.     
    • The additional penalty shall be equal to 100 percent of the original late payment interest but must not exceed $5,000 nor be less than $25.
slide18

Invoice Payment Process

  • Foreign Currency Payments
  • Interest Payments
  • Future Initiatives
  • Questions & Answers
  • Wrap Up
slide19

FUTURE INITIATIVES

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

Procurements.

slide20

Invoice Payment Process

  • Foreign Currency Payments
  • Interest Payments
  • Future Initiatives
  • Questions & Answers
  • Wrap Up
suggested references and websites
Suggested references and websites:

www.fms.treas.gov/fm

www.acquisition.gov/far/index

www.fms.treas.gov/kfc

www.arnet.gov/far

www1.od.nih.gov/oma/manualchapter/contracts/633s-9/main.html

  • OMB Circular A-125, Prompt Pay
  • FAR 32.9, Contract Financing, Prompt Pay
  •  HHSAR 332-9, Prompt Pay