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Division Director

Christina Smith

Assistant Director

Rick Sweet


Accounting and Auditing
200 East Gaines Street
Tallahassee, FL 32399-0318

(850) 413-5510
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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:

  1. 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 used.

  2. "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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.