December 27, 1989
COMPTROLLER'S MEMORANDUM NO. 10 (1989-90)
|SUBJECT:|| INFORMATION CONCERNING IMPLEMENTATION
OF COMPLIANCE MONITORING PURSUANT TO SECTION
215.422, FLORIDA STATUTES (PROMPT PAYMENT LAW)|
Chapter 89-200, Laws of Florida, amended
Section 215.422, Florida Statutes, effective January 1, 1990.
Because we are required to monitor agency compliance with the
requirements of the section, we have modified SAMAS to provide
for this monitoring function. The prompt payment law applies
to all payments for goods and services purchased by state agencies.
Additionally, it applies to travel and other reimbursements to
state officers and employees.
Agencies should be aware of the following:
- Effective January 1, 1990, the transaction
date field in Departmental SAMAS shall be used to begin the 20-day
period for purposes of determining compliance with the filing
requirements of Section 215.422, Florida Statutes, and in determining
whether the vendor is due interest. For this reason, this field
should contain the later of the date the goods or services are
received, inspected and approved or the date the invoice is received.
(See the proposed rules for determining such dates). Certain
payments are not subject to Section 215.422, Florida Statutes,
such as advance payments. In such cases, all zeros should be
entered in the transaction date field. It is the agencies' responsibility to insert the appropriate dates in the transaction
date field and we will be testing the appropriateness of the dates
- "Receipt of Invoice" for the purpose of travel and other reimbursements to state officers
and employees is the date a properly completed reimbursement form
is received by the officer's or employee's supervisor or person authorized to approve the reimbursement form.
In the event the traveler and approving authority are the same
person, the date the reimbursement form is received by the fiscal
office should be used as the received date.
- With the exception of health care provider
payments, when the number of calendar days between the transaction
date and warrant issuance date exceeds 40 days, the SAMAS system
will calculate the apparent interest penalty due and issue an
interest penalty report. This interest penalty report will be
issued to the agencies on a daily basis. Agencies should review
all interest penalty invoice reports when received to determine
the appropriateness of the interest calculated. These reports
will not be produced for payments made to agencies by journal
transfer. However, such transactions between state agencies
are subject to the provisions of Section 215.422, F.S., and interest
penalty payments should be made as appropriate.
- For purposes of determining compliance
with Section 215.422 (13), F. S., health care provider payment standards
will be applied to all payments object coded 1317 - Personal Services
- Independent Contractors, Medical or 2510 Care and Subsistence
- Medical Services. Interest penalty will accrue after 35 days
from the date eligibility for payment of the claim is determined.
The system will calculate apparent interest penalty due and issue
an interest penalty invoice report.
- The Department will track all interest
penalty invoices generated by the system until resolution by payment
of the interest or otherwise. However, we will not require agencies
to pay interest penalty invoices of less than $1 unless the vendor
asserts his right to the interest penalty payment either orally
or in writing.
- When vouchering the interest penalty
invoices, agencies should use Object Code 8910XX. Also, agencies
should accurately input the interest penalty invoice number in
the invoice field so the payment will be accurately recorded in
the tracking subsystem. Payments should be made from the SAMAS
disbursement account as the original transaction.
- The amendments to the law take effect
January 1, 1990, and therefore will apply to all transactions
for which the 20-day filing period begins on or after January
1, 1990. All earlier transactions should be handled pursuant
to the law prior to the amendments.
Your cooperation is appreciated and
if you have any questions, please call the Bureau of Accounting at 410-9951, Suncom 210-9951.