HOW TO INVOICE FOR ALLOWABLE COSTS AND ENSURE TIMELY PAYMENT

RSC CONTRACT INVOICE PROCESS

OVERVIEW

What we will be covering today:

• Invoicing responsibilities:

• Allowable costs

• Budget

• 90-day rule

• Revised invoice and submission process

• What to expect after you submit your invoice

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INVOICE RESPONSIBILITIES

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ALLOWABLE COSTS

Your invoices should reflect only costs that are allowable per your contract and applicable Federal circulars. One or more of the following may apply:

•A-21: Educational Institutions•A-87: State and Local Governments•A-110: Administrative Requirements •A-122: Non-profits•A-133: Independent Audit•EDGAR: Education Department General Administrative Regulations

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ALLOWABLE COSTS

It is your responsibility to know what’s allowable and unallowable. However, we can help.

If you have a question about an expenditure and are unable to determine allowability with these resources, please speak to your RSC Contact for guidance.

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BUDGETS & INVOICING

Budgets are a tool used by RSC to ensure grant goals and objectives are met, to track available funds, and help mitigate against misappropriation of grant funds.

Therefore, your invoice should match your most current approved budget. To avoid having your invoice returned to you:

Bill only for items approved in your budget. Keep track of your budget to ensure you don’t

exceed the contract balance. Submit budget revisions to avoid exceeding an

approved budget category amount.

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BUDGET REVISIONS

The last date to submit a budget revision is 45 days prior to the end of the grant period.

Submit a budget revision:

•If you suspect you will exceed an approved cost category amount

•When reallocation of funding will enhance the success of grant objectives

•When circumstances change (ex. Lay-offs, a computer breaks, etc.) that may require an unexpected expenditure.

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BUDGETING & INVOICING

The Fiscal Monitoring and Compliance Unit (FMCU) will randomly select invoices to review throughout the year. To ensure accuracy and timely processing of invoices, avoid the following:

•Late purchases – because expenditures must benefit the grant, late purchases invite scrutiny as to its necessity

•‘Stockpiling’ – Purchasing excessive amounts of a supply that is not justified by the contract’s scope.

•‘Padding the budget’ – costs must be reasonable and appropriate

•Guessing – Please base your budgets on previous grant years and current prices

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According to OAC 3304-1-13:

“When RSC purchases a good or service from any vendor or service provider, the vendor or service provider shall submit the bill to RSC within ninety days of RSC’s acceptance of the good or service or within ninety days of the date RSC becomes aware of a bill being due... If the bill is not submitted to RSC within ninety days of acceptance of the good or service or if a written extension is not requested, RSC shall not pay the bill.”

90 DAY INVOICING

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EXTENSIONS

OAC 3304-1-13 also states:

“If the vendor or service provider can not submit the bill within ninety days, the vendor or service provider may request an extension indicating the reason for needing an extension and the amount of time needed. The request for an extension must be made in writing to the RSC executive director at least thirty days before the bill is due.”

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INVOICE EXTENSIONS

To request an extension, email your request -- addressed to RSC’s Executive Director -- to your RSC Contact as soon as possible to request a waiver of this requirement.

If the original invoice is not submitted to RSC within ninety days of acceptance of the good or service or if a written extension is not requested within that time frame, RSC cannot pay the bill.

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NEW RSC INVOICES

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NEW INVOICE

The new invoice is in Excel. Each section is on a separate tab.

• Instructions

• Invoice Summary

• Direct Cost Billing Details

• Additional lines for Direct Costs

Administrative VRP3 contracts are required to submit a Consumer Activity Report (CAR) as well, which is included in the VRP3 invoice template. See the separate training/presentation for CAR.

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INSTRUCTIONS

The invoice is color-coded for your convenience.

• Vendor-Partners only need to complete the yellow-highlighted cells

• Drop-down menus and automatically populated fields

• The green and pink cells are formula-driven and should not be changed.

Signature is no longer needed. The invoice should be sent by authorized staff of the primary contractor (no invoice should be submitted by subcontractors).

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INVOICE SUMMARY SHEET

Complete vendor information at the top (yellow):

• Select Contractor Name from the “drop down” menu (The OAKS Vendor ID will automatically populate once you make your selection)

• Enter Project Name and billing address.

• Be sure you enter the correct PO number for the invoice being submitted

• Invoices must have a “unique” invoice number (no two invoices should be numbered the same) and invoice date

• The “Contact Name” and “Email” should be for the person who can answer questions about the invoice

• Ensure the appropriate “Billing Period” is indicated

• Enter Indirect Costs (in section B of the Operating Expenses)15

DIRECT COST BILLING: SALARY/FRINGES

Select Position/Title from drop-down menu.

Enter name of staff.

Identify whether staff is contractor or subcontractor as instructed.

Enter FTEs billed. Be sure that it matches the “FTE charged to Award” as calculated in your approved budget.

Enter the actual amount paid (cash basis).

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DIRECT COST BILLING: TRAVEL

All travel reimbursement must be in compliance with OAC 126-1-02:

• Cost per mile cannot exceed $0.45 per mile

• Detailed receipts are required for lodging expenses

• Meals are only allowed when there is an overnight stay

• Parking and tolls are the only incidental expense allowed for day travel

All required supporting documentation (receipts) must be scanned and attached to email submission of the invoice. 17

DIRECT COST BILLING: SUPPLIES

• Enter a description of the items purchased, as listed on the budget proposal and the amount.

If the item does not match what was listed in your budget proposal, it may delay your payment.

• Amount per item may not exceed $300.00

If any item exceeds this amount, it is considered “equipment” and must have a “useful life” retirement.

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DIRECT COST BILLING: EQUIPMENT

• Enter a description of the equipment purchase, as listed on your budget proposal.

• Equipment purchases must be pre-approved.

If the item does not match what was listed in your budget proposal, then your invoice will be returned to you.

• Enter the appropriate portion of the actual cost of the item based on its Useful Life. Useful life is defined as the time period over which an asset is depreciated. The Ohio Dept. of Administrative Services has published a useful life table at http://www.das.ohio.gov/LinkClick.aspx?fileticket=CP9jt-tYH1o%3d&tabid=312.

To avoid conflict of interest, RSC cannot tell you how to calculate the useful life or what to submit.

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DIRECT COST BILLING: STAFF DEVELOPMENT

• Training must be related to the program or to the individuals we serve to be eligible for reimbursement.

• Bill actual cost incurred. Do not claim any training where no payment was made.

• On the form:Select the Position/Title from the drop down menuEnter name of the staff attending trainingIdentify whether attendee is contractor or

subcontractor as instructedIdentify the type of training (clear and brief)Identify trainerEnter the cost for the attendee 20

DIRECT COST BILLING: OCCUPANCY

Enter your organization’s name or a subcontractor’s name

Enter the percentage of square footage calculated in your Budget proposal

• Identify if contractor or subcontractor costs

Enter actual monthly allowable costs for entire facility. For expenses which are billed other than monthly (annually or quarterly), submit either:

• the full amount in billing period when actually paid or

• 1/12 of the annual amount paid each month 21

The spreadsheet will automatically calculate the occupancy costs by applying the square footage percentage to the allowable monthly costs.

To ensure accurate calculation of your occupancy costs,

let the spreadsheet do the calculation.

DIRECT COST BILLING: OCCUPANCY

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SUBMITTING YOUR INVOICE

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CONTRACTOR INVOICE CHECKLIST

After you’ve completed your invoice, use the Contractor Invoice Review Checklist before submitting to RSC to ensure your invoice is correct. This will save time and money!

If you run into any questions, refer to the contract as needed or direct questions to your RSC contact.

You do not need to include the checklist with your invoice.

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SUBMITTING YOUR INVOICE

• New submission process starts with FFY13 billings (October 2012)

• Submit Excel invoice (no scans, PDFs)

• Attach scan of required receipts

• Email Excel invoice and scanned receipts to RSC.Invoices@rsc.ohio.gov

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WHAT HAPPENS NEXT?

• RSC Finance will review invoice to ensure compliance with state rules

• Program staff will review to ensure compliance with budget and contract

• Fiscal Monitoring and Compliance Unit (FMCU) will review for compliance with federal rules

At any time, FMCU may opt to perform a more in-depth review of an invoice.

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WHAT HAPPENS NEXT?

• RSC intends to complete its review within 15 days.

• If changes are needed to your invoice, you’ll be contacted within this time frame. • When resubmitted, the 15 day “clock” starts

over

• Resubmission does not impact the 90 day rule

• If you do not hear from RSC, you can assume your invoice has been approved for payment.

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STATUS CHECK

• If it has been more than 15 days, contact Ohio Shared Services (OSS) to check on the status of your invoice:

E-mail:  ohiosharedservices@ohio.gov  Phone:  614-338-4781 or 1-877-OHIO-SS1 (877–644–6771)Web:     www.ohiosharedservices.ohio.gov

Sign up for eSupplier for online self-service to monitor status of

invoices

• If the invoice is not at OSS, contact Jenny D. Jones, Finance Manager

Phone: 614-433-8279E-mail:  jenny.jones@rsc.ohio.gov 28