chief financial officer memorandum no. 02 … · payments may be delayed on agreements that do not...

October 3, 2012

CHIEF FINANCIAL OFFICER MEMORANDUM NO. 02 (2012-2013)

SUBJECT: CONTRACT AND GRANT REVIEWS AND RELATED PAYMENT

PROCESSING REQUIREMENTS

This memorandum supersedes the following Chief Financial Officer Memoranda: No. 01 (2007-

08), No. 03 (2009-10), No. 05 (2009-10), and No. 06 (2009-10).

CONTRACT DOCUMENT REQUIREMENTS

Section 287.058, Florida Statutes (F.S.), was amended in 2010, establishing new provisions

related to scope of work and deliverables in order to improve accountability for contractual

service agreements entered into by state agencies. Contractual service agreements executed on or

after July 1, 2010, must be in compliance with the requirements of Section 287.058, F.S. These

contractual service agreements must include:

A scope of work that clearly establishes all of the specific tasks the contractor is required

to perform.

Documentation required to be maintained by the contractor to evidence the completion of

the tasks.

Specific deliverables that must be provided and accepted prior to payment. Deliverables

must be quantifiable, measurable and verifiable. Each deliverable must be directly

related to a task specified in the scope of work and must identify the minimum level of

service to be performed. Agencies should not confuse reports with deliverables. Reports

usually are not deliverables. Rather, a report is the means to attest to the tasks performed

during a given period of time.

Specified criteria that will be used to determine the contractor’s successful performance.

Financial consequences that the agency must apply if the contractor fails to perform in

accordance with contract. A state agency must apply financial consequences if the

contractor fails to meet the minimum level of service identified in the agreement or other

contract terms.

CONTRACT AND GRANT REVIEWS

Contractual service (including purchase orders) and grant agreements will be submitted to the

Bureau of Auditing (Bureau) for review. For contracts that are effective July 1, 2012 or later,

required documentation must be submitted no later than when the next payment request is

submitted to the Bureau. For contracts executed after the date of this memorandum,

documentation must be submitted upon execution of the agreement. Agencies must submit

documentation including the contractual service agreement, purchase order, grant agreement,

along with any required special approvals (Attorney General, advance payment, etc.), and

procurement documentation (bid tabulation, proposal evaluation, price/cost analysis, etc.).

HANDOUT 1 – CFO MEMO NO. 02 (2012-2013)

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Agencies will submit documentation related to contractual service agreements, grant agreements,

and purchase orders, if the value of the agreement is, or has been amended to, $750,000 or more.

Agencies will submit documentation related to contractual service agreements and purchase

orders, that are based upon state term contracts, if the value of the agreement is $500,000 or

more. The Bureau may also review, on a sample basis, agreements below these thresholds.

The Bureau has determined that the types of agreements listed below are exempt from this

requirement:

Building Construction

Architect/Engineers

Legal Services (including Court Reporting)

Courier Services

Service Level Agreements between agencies and the Shared Resource Centers

Agencies may make a written request for additional exemptions.

The Bureau will focus its review on the agreement’s scope of work, deliverables, compliance

with the state term contract (if applicable) and the payment terms, as well as the compliance

requirements for state and federal financial assistance, as established by Chief Financial Officer

Memorandum No. 4 (2005-06). The Bureau will complete the review and provide its conclusions

to the submitting agency. Payments may be delayed on agreements that do not meet statutory

requirements (scope of work, deliverables, financial consequences, etc.).

AGREEMENTS FUNDED BY STATE AND/OR FEDERAL FINANCIAL ASSISTANCE

Section 215.971, F.S., requires agreements that are funded by state and/or federal financial

assistance include provisions related to scope of work and deliverables. Agreements executed on

or after July 1, 2010, are required to include:

A scope of work that clearly establishes all of the specific tasks the recipient/subrecipient

is required to perform

Documentation required to be maintained by the recipient/subrecipient to evidence the

completion of the tasks

Specific deliverables that must be provided and accepted prior to payment. Deliverables

must be quantifiable, measurable and verifiable. Each deliverable must be directly related

to a task specified in the scope of work and must identify the minimum level of service to

be performed. Agencies should not confuse reports with deliverables. Reports usually are

not deliverables. Rather, a report is the means to attest to the tasks performed during a

given period of time.

Specified criteria that will be used to determine the recipient/subrecipient’s successful

performance.

The requirements of Chief Financial Officer Memorandum No. 4 (2005-06), relating to these

agreements, continue to be in effect.


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COST ANALYSIS REQUIRED BY SECTION 216.3475. FLORIDA STATUTES

Section 216.3475, F.S., requires agencies to maintain records to support a cost analysis for

service agreements, executed on or after July 1, 2010, which were awarded on a noncompetitive

basis. Detailed budgets are required to be submitted by the person or entity awarded funding in

excess of Category II and must be reviewed by the agency. The attached Cost Analysis form and

instructions are to be used to document an agency’s review of the detailed budget. If an agency

already has an existing form which it desires to use, the form must be submitted to the Bureau

for review and approval.

The completed cost analysis is to be maintained in the contract manager’s contract file. The cost

analysis form is required to be submitted to the Bureau when submitting agreements with a value

of $750,000 or more.

Contact the Bureau of Auditing at (850) 413-5512 for questions regarding this memorandum.


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COST ANALYSIS FOR NON-COMPETITIVELY PROCURED AGREEMENTS IN

EXCESS OF CATEGORY II

Line Item

Budget

Category

Amount % Allocated

to this

Agreement

Allowable Reasonable Necessary

Salaries

Fringe

Benefits

Equipment

Utilities

Travel

Miscellaneous

Indirect

cost/overhead

TOTAL

CERTIFICATION:

I certify that the cost for each line item budget category has been evaluated and determined to be

allowable, reasonable, and necessary as required by Section 216.3475, F.S. Documentation is on

file evidencing the methodology used and the conclusions reached.

___________________

Name

___________________

Signature

___________________

Title

___________________

Date


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COST ANALYSIS INSTRUCTIONS FOR NON-COMPETIVELY PROCURED

AGREEEMENTS IN EXCESS OF CATEGORY II

1. Agencies must complete a cost analysis worksheet for the original contract and any

amendment that affects the amount of compensation and/or the level of services

provided.

2. Each separate line item must be evaluated to determine whether the cost is allowable,

reasonable and necessary. Each miscellaneous cost must be specifically identified.

3. To be allocated to a program, a cost must be related to the services provided. If the cost

benefits more than one program, a determination must be made that the cost is distributed

in a reasonable and consistent manner across all benefiting programs.

4. To be allowable, a cost must be allowable pursuant to state and federal expenditure laws,

rules and regulations and authorized by the agreement between the state and the provider.

5. To be reasonable, a cost must be evaluated to determine that the amount does not exceed

what a prudent person would incur given the specific circumstances.

6. To be necessary, a cost must be essential to the successful completion of the program.

7. Indirect costs/overhead should be evaluated to determine that the rate is reasonable.

8. Agencies must retain documentation in agency files to support the conclusions reached as

shown on the Cost Analysis for Non-Competitively Procured Agreements in Excess of

Category II form.


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HANDOUT 2 – PROVIDER ON-BOARDING CHECKLIST

Use this checklist to conduct the provider on-boarding meeting.

Section/Items

On-Boarding Preparation

Establish date/time/location of meeting

Prepare agenda

Notify all participants

On-Boarding Meeting Topics

Scope of the contract.

Contract terms and conditions, particularly any special contract provisions.

Technical and reporting requirements of the contract.

Applicable contract administration procedures, including contract monitoring and progress measurement.

The rights and obligations of both parties and the provider performance evaluation procedures.

Potential contract/grant problem areas and their possible solutions.

Invoicing requirements and payment procedures.

Liquidated damages (if any) and performance bonds (if any) including conditions for enforcement.

Explain limits of state agency personnel authority and obtain the same information regarding provider personnel.

Post On-Boarding

Prepare and distribute summary of meeting, including:

areas requiring resolution a list of participants a list of action items, including individual(s) responsible and due date

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July 26, 2012

CHIEF FINANCIAL OFFICER MEMORANDUM NO. 01 (2012-2013)

SUBJECT: CONTRACT SUMMARY FORM

This memorandum supersedes Chief Financial Officer Memoranda No. 02 (2010-2011) and No. 7

(2011-2012).

The purpose of this memorandum is to clarify how and when the Contract Summary Form is to be

used.

FLAIR PAYMENTS

For all contract and grant agreements that are recorded in the Florida Accountability Contract Tracking

System (FACTS) and for which payments are processed in FLAIR, each agency will utilize the

Contract Summary Form that is found in FACTS. Agency contract managers should print, complete,

and sign the FACTS Contract Summary Form, certifying that services were satisfactorily received.

The signed Contract Summary Form will be sent to the Agency’s accounting office and included in the

FLAIR payment voucher. The Bureau of Auditing (Bureau) will return, to the Agency, any FLAIR

payment voucher that does not include a completed and signed FACTS Contract Summary Form.

Federal and state grant agreements are not currently required to be recorded in FACTS; however

payments for grant agreements processed in FLAIR will also need to be supported by a properly

completed and signed Contract Summary Form, which can be found on the DFS website at

http://www.myfloridacfo.com/aadir/summary_csa.htm.

MFMP PAYMENTS

For all contracts that are recorded in FACTS, but for which payments are processed through MFMP,

agencies must print the FACTS Contract Summary Form and attach it to the Purchase Requisition (PR)

or Contract Request (CR). The Contract Manager will provide the following certification statement in

the comment section field on the PR or the CR: “I <insert name> certify by evidence of the attached

Contract Summary Form, that I am the Contract Manager and the information on this form is true and

correct.” For every change to a FACTS agreement, an updated FACTS Contract Summary Form must

be attached along with the required contract manager certification statement.

For all MFMP service payments, the Contract Manager must provide on the Invoice Reconciliation

(IR) the following certification statement: “I <insert name> certify that I am the Contract Manager and

the provided information is true and correct; the goods and services have been satisfactorily received

and payment is now due. I understand that the office of the State Chief Financial Officer reserves the

right to require additional documentation and/or to conduct periodic post-audits of any agreements.”

In lieu of the contract manager providing the certification statement on the IR, the FACTS Contract

Summary Form or the Contract Summary Form, as applicable, may be completed, signed and attached.

The Contract Summary Form may be found at http://www.myfloridacfo.com/aadir/summary_csa.htm.


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http://www.myfloridacfo.com/aadir/summary_csa.htm

http://www.myfloridacfo.com/aadir/summary_csa.htm

The Bureau has previously determined that the agreements for certain service types listed below are

exempted from the Contract Summary Form requirements. However, an acknowledgement of

satisfactory receipt and approval of services or a receiving report, as applicable, must be provided.

Utility payments

Property and Equipment Leases

Phone Services

Building Construction

Commodity purchases

The requirements of this memorandum are effective for contractual service and grant payments

submitted by agencies on or after August 1, 2012.

Please contact Laura Anderson at 850-413-5730, [email protected] or Cheri Greene

at 850-413-5593, [email protected] if you have questions regarding this memorandum.


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mailto:[email protected]

mailto:[email protected]

SUMMARY OF CONTRACTUAL SERVICES AGREEMENT/PURCHASE ORDER

OLO/Department: Agency Contact:

FLAIR Contract #: Telephone #:

Agency Contract #:

PO #:

Contractor/Vendor/Payee:

Original Contract Amount:

Total Contract Amount:

Contract Type:

Contract Start Date: Contract End Date:

Contract Last Signed Date:

Advance Funded YES NO

METHOD OF PROCUREMENT:

AGENCY REFERENCE #:

Invoice Number: Invoice Period:

Total Amount of Previous Payments:

CONTRACT MANAGER CERTIFICATION:

I certify, by evidence of my signature below, the information on this form is true and correct; the goods and services have been

satisfactorily received and payment is now due. I understand that the office of the State Chief Financial Officer reserves the right to

require additional documentation and/or to conduct periodic post-audits of any agreements.

Contract Manager Name printed:

Contract Manager Signature: Date:

Amendments/Renewals/Extensions

CHANGE TYPE: CHANGE DESCRIPTION:

Contract Last Signed Date: Agency Amendment Reference:

Amendment Amount: New Ending Date:



Agency Amendment Reference:




Agency Amendment Reference:



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OLO/Department:

FLAIR Contract #:

Agency Contract #:

PO #:

Deliverables

Deliverables as stated in the Contract

Minimum Performance Levels Payment Amount

Type of Services Method of Payment


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Instructions to complete the Summary of Contractual Services Agreement/Purchase Order Form:

This form should be completed in its entirety, signed and dated by the appropriate agency personnel and

submitted with each payment request. Please ensure each field on the form is completed according to the

guidance provided.

OLO/Department:

Agency Contact:

Telephone #:

FLAIR Contract #:

Agency Contract #:

PO #:

Contractor/Vendor/Payee:

Original Contract Amount:

Total Contract Amount:

Contract Type:

Agency’s numeric identifier (i.e. 640000/Department of Health).

Agency designated personnel to answer questions regarding

payment.

Designated personnel phone number.

Identify FLAIR ID number assigned to agreement.

Identify the agency number assigned to the agreement.

Identify the agency number assigned to the purchase order.

Identify Vendor/Payee (including d/b/a if applicable).

Provide the original contract amount when executed.

Provide the contract amount; amount must equal the total

amount of the contract; including

amendments/renewals/extension.

Provide the FACTS contract type. https://www.myfloridacfo.com/Division/AA/Manuals/10FACTSUserGuide-January2016-2-dj.pdf

Contract Start Date: Identify date contract begins.

Contract End Date: Identify date contract ends.

Contract Last Signed Date: Identify date of execution.

Advance Funded: Identify if the payment for which certification is provided is an

advance payment.

Method of Procurement: Identify the appropriate competitive or non-competitive

method of procurement.

Agency Reference #: Identify specific ITB, RFP or ITN number. If first payment is

being submitted on a competitively procured agreement, provide documentation evidencing procurement (e.g. bid tab).

If the procurement was non-competitive provide the specific exemption, statute, CSFA, CFDA or GAA line item.

Invoice Number: Identify the invoice number associated with this payment

request.

Invoice Period: Identify the invoice period this payment request covers.

Total Amount of Previous Payments: Provide the cumulative total of the payments to date,

excluding current invoice amount(s).


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https://www.myfloridacfo.com/Division/AA/Manuals/10FACTSUserGuide-January2016-2-dj.pdf

Contract Manager Certification: This section is to be completed by the employee designated by

the agency to function as the contract manager to certify the information provided on this form is true and accurately

reflects the terms and conditions in the executed contract

document and approve the identified invoice for payment based on direct knowledge of satisfactory receipt of the goods

or services. If the individual completing this section is not the designated contract manager, please provide justification or

delegation of authority for the individual to sign this form.

Contract Manager Name printed: Print name of the appropriate agency personnel.

Contract Manager Signature: Signature of the appropriate agency personnel.

Date: Enter the date signed by appropriate agency personnel.

AMENDMENTS/RENEWAL/EXTENSIONS:

Change Type: Identify the type of change-amendment, renewal or extension.

Change Description: Brief statement describing the changes that have occurred.

Contract Last Signed Date: Identify date of execution.

Agency Amendment Reference: Identify the agency amendment, renewal or extension number,

as applicable.

Amendment Amount: Provide the amendment, renewal or extension amount, as

applicable.

New Ending Date: Provide the new ending date, if applicable. If the end date

changed the contract end date on page 1 should be updated to reflect the new date.

DELIVERABLES:

Deliverables as stated in the contract: Identify the deliverables as stated in the contract.

Minimum Performance Levels: Identify the minimum levels of service to be completed as

stated in the contract.

Payment Amount: Identify the compensation amount for each deliverable.

Type of Services: Provide a brief description of the services being provided.

Method of Payment: Identify the payment method for each deliverable. For

example, fixed-price, fixed-rate, cost reimbursement.


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HANDOUT 4 – DELIVERABLE TRACKER

Use this table to track receipt of deliverables. The contract manager should prepare this schedule as soon as the contract is assigned to him/her and keep it in the contract file. As deliverables are received and approved, this schedule should be updated.

Deliverable Performance

Standard Date Due Date Received Date Accepted

Payment Amount

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HANDOUT 5 – DELIVERABLE ACCEPTANCE FORM

Use this memo to document written certification of acceptance of deliverables. Each time this memo is used to document receipt of a deliverable, it should be kept as part of the contract file.

Project Identification

Contract/Grant Number: Contract/Grant Title:

Deliverable

Provider Name:

Date Received:

Deliverable Name:

Deliverable Description:

This memo acknowledges receipt and acceptance of the deliverable listed above. In the opinion of the contract manager, this deliverable meets the performance standards and terms and conditions as stated in the contract/grant.

Contract Manager: [Type Name]

Date:

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HANDOUT6–SAMPLEINVOICE

AttachmentA:ScopeofWorkL. Payment Structure1. Payment on this contract is based on the structure established by OMS IT State Term Contract#973-561-01 01, Project Area #4, Staff Augmentation for Job No. 1620, Quality Assurance Analyst,Expert Level and Attachment K to this contract.2. The Consultant(s) shall only be paid based on actual hours worked, not to exceed 40 hours perweek withoutpriorwrittenapproval from the SSP Process Manager and/or CSE Contract Manager3. Daily work hours shall be arranged with the SSP Process Manager or designated team lead.4. The holiday schedule shall follow the approved State Holiday schedule.5. Authorization to work overtime, weekends, and/or holidays, must beobtainedinadvanceandinwriting (i.e., through email or other correspondence) from the SSP Process Manager or designatedSSP team lead.6. It is expected that the Consultant(s) will work approximately 2080 hours per year. Authorization towork more than this number in each year must be obtained in advance and in writing from the SSPProcess Manager and the CSE Contract Manager and will result in the need for an amendment to thecontract.7. Consultants authorized to work overtime, weekends, and/or holidays, shall be paid the samecontract hourly rate provided for the normal 40-hour work week. Noadditionalrateshallbeauthorizedforovertime,weekends,holidays,orhoursworkedexceedingan8‐hourworkdayor40‐hourworkweek.8. Consultants shall completeaDepartmentprovidedmonthlytimesheet and shall obtainsignature on the timesheet from either the SSP Process Manager or a designated SSP team lead. TheConsultant(s) will sign and submit the monthly timesheet to the Provider.9. Provider shall submit an invoice to the CSE Contract Manager by the 10thcalendardayofeachmonth for the time worked during the previous month. The consultant(s)' signedtimesheetmustbeattached to the invoice. Failure to include the timesheet(s) will result in either rejection of theinvoice or a delay in processing while the required documentation is obtained.10. The invoice must be on company letterhead and at a minimum, include the following information:a. Date of invoiceb. CSE Contract Manager's name and address (see section III.G.4. of the contract)c. Contract name (FLORIDA/CAMS Technical Assistance-SSP)d. CSE contract number (C3CAP)e. Service period (such as April1-April 30, 2010)f. The name of the consultant(s), their number of hours worked, total contracted hours remaining,hourly rate, payment amount, amount paid to dateg. Total payment amount requestedh. Authorized signature of Provideri. Date of signaturej. Provider’s address and complete payment information including the name, phone number andemail address of a person to contact for questions regarding the invoice.11. Writtenapprovalofanyovertime,holiday,orweekendworkclaimedmustbeattached to theinvoice. Failure to provide the written approval will result in either rejection of the invoice or adelay in processing while the required documentation is obtained.12. The State of Florida encourages all providers to use Electronic Funds Transfer (EFT) for increasedefficiency and effectiveness in prompt payment. An EFT application may be obtained from the CSEContract Manager or from the Florida Department of Financial Services

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(http://www.myfloridacfo.com/aadir/dd vendor.pdf.) If EFT is used, please include the EFT information on the invoice. 13. The Department prefers electronic submission of invoices, supporting documentation andcommunications using the e-mail addresses provided in Section I.C.3. of the contract.14. The final invoice must be submitted within thirty (30) calendar days of contract end, without goodcause. Failure to do so may result in the forfeiture of any payment due.

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HANDOUT 7 – APPLYING FINANCIAL CONSEQUENCES

Scenario

As contract manager, you have received the June 2013 Service Level Expectations Details Report for contract number DMS 11/12-030.

For this activity, perform the following tasks.

1. Review the vendor’s performance report to ensure compliance with performance expectations. 2. Identify any performance issues and determine the applicability of financial consequences based on

the June 2013 Service Level Expectations Details Report. 3. If needed:

a. calculate any financial consequences b. draft a correspondence to the vendor relaying any performance issues.

4. This vendor is paid $879,000 each month.

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HANDOUT 8 – CONTRACT CLOSEOUT CHECKLIST

Use this checklist to complete the closeout activities for all contracts/grants. Once completed, place this checklist in the contract/grant file to document that closeout activities were performed.

Closeout Action

Programmatic Closeout

All deliverables and services have been delivered and accepted in writing.

All reports (including Financial Status Report) have been received and accepted in writing.

Performance standards have been met.

All contract terms and conditions have been met.

Any instances of non-performance have been documented and all appropriate remedies for non-compliance have been applied.

The contract file is complete, clearly organized, and labeled for storage and retention purposes.

Fiscal Closeout

Invoices have been properly documented and paid.

Advances and/or interest earned on advances have been recovered or applied against what is owed.

If applicable, financial consequences have been assessed and collected for nonperformance/non-compliance.

Disallowed costs and/or unused grant funds have been recovered.

Final payment to provider has been made only after all programmatic and fiscal steps have been completed.

Acquired non-expendable property (having a unit value in excess of $1,000 and a useful life of greater than one year) has been returned to the state.

Match requirements have been met (if required).

Financial Status Report has been reviewed and approved in writing.

Cost audit has been performed.

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chief financial officer memorandum no. 02 … · payments may be delayed on agreements that do not...

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