Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Agenda
CDOT’s Mission Statement
Overview (Professional Services Voucher Payment Process)
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History
Audit
CDOT changes
Objectives
Benefits
CDOT’s New Invoice Process
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Requirements
How you can help
Team effort (CDOT and Vendor)
Vendor input
Questions
Rebekah
Scheinfeld
Commissioner
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
MISSION STATEMENT
It is the goal of the Department of Transportation to effectively
manage, through project programming and project design, the
maintenance and capital rehabilitation of the City of Chicago’s
transportation infrastructure, enabling the safe and efficient
movement of vehicles, cyclists and pedestrians on modernized
and beautified streets, bridges and viaducts by utilizing a
combination of city labor trades and contracted construction
companies, equipment and materials tailored to each specific task
or project and by expediting completion in a cost-effective and
timely manner of which the finished product meets or exceeds
the industry standards of practice and workmanship.
Rebekah Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Professional Services Voucher
Payment Process
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
History
Payments to consultants within 30-120 days
Incomplete packages
• Resulted in “phone tag” between CDOT staff and consultants.
Incorrect reference numbers on documents within packages
• Incorrect contract, project and release numbers resulted in additional CDOT research time to reconcile
invoices, which resulted in overall protracted processing times
Packages delivered to incorrect personnel for processing .
• Packages delivered to familiar personnel, e.g., the project manager or undefined personnel (rather
than the designated processing personnel) resulted in delayed processing.
Separate bills
• Prime Consultant submitted separate invoices for work performed by subcontractors caused delays on
processing invoices.
Cumulative bills submitted
• Consultants submitted invoices detailing several months services in one package instead of one
month increments delayed processing.
Errors on bills
• Math errors resulted in reconciliation efforts by CDOT staff including, but not limited to, telephone calls
and mailings to obtain verification of corrections. These additional measures added to processing time.
Sub-standard cohesion and communication between Consultant and CDOT
• Independent networks were established resultant of convenience of communication. This disrupted the
standard protocol of processing.
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Audit
CDOT retained an Independent Auditor to assess the entire CDOT Professional
Services Voucher Payment Process to determine how CDOT could improve the
existing system to achieve greater efficiency.
The Audit disclosed several areas where CDOT had room for vast improvement
within the voucher payment process. The generic recommendation provided by the
Audit was that CDOT modify its existing protocol to incorporate more thorough,
industry- standard accountability practices.
The more specific findings have been incorporated into this presentation and will be
discussed in greater detail herein.
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
CDOT changes
CDOT evaluated and accepted many of the recommendations provided by the
Auditor. Accordingly, CDOT has begun implementing those process changes.
Many of those changes will directly impact the way you do business with CDOT.
Therefore it is important that:
- We familiarize you with these changes and requirements for processing
invoices.
- We get your input and feedback regarding these proposed changes so that
we can implement these changes to the process in the most productive way
possible.
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Objectives
To present an overview of the current procedure for processing Professional
Voucher Payments.
To highlight some of the issues with the past processing system.
To inform the consultants about the proposed process changes.
To discuss and develop additional methods of improving the Division’s
performance to serve the needs of the consultants through consultant’s
input and feedback.
To address concerns and answer questions.
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Benefit to CDOT and Consultant
Compliments CDOT Mission Statement:
When CDOT actions are consistent with the CDOT Mission Statement the
Department is assured that it is providing the best possible service to the City
taxpayers.
Gets the Vendor paid timely:
These procedures will also help to insure a predictable and reliable payment
schedule for consultants. This will allow you to operate your business more
efficiently and continue to assist CDOT achieve its objectives.
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
CDOT Changes in Invoice Processing Procedures
- Unified Repository/Tracking
- Time and date stamped
- Cumulative invoices
- Separate agreements
- Invoices under $500.00
- Payment Voucher Requirements
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Unified Delivery/Tracking
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Consultants must submit all monthly invoices for labor and costs to:
Deputy Commissioner, Cheiko High
Chicago Department of Transportation
Records and Estimates Section
30 N. LaSalle, Suite 600
Chicago, IL 60602
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All invoices shall be delivered via a commercial form of delivery
which provides a tracking service.
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Acknowledgment of receipt of invoice
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All invoices received for processing will be time and date
stamped upon receipt by Department personnel.
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Invoices returned to the Consultant for deficiencies shall be date
stamped with a return date.
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Cumulative invoices
Cumulative, multiple-year invoices will be rejected, stamped with
a return date, and returned to the consultant.
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Separate agreements
1.
2.
Where the consultant has more than one agreement with
CDOT, a separate invoice must be submitted for each agreement.
Combine multiple projects in one invoice will be rejected
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Invoice minimum
Invoices for less than $500 will not be accepted unless the invoice
is for the last payment prior to closeout of the contract.
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Payment Voucher Requirements
Each Payment Voucher must include the following:
• One original plus three copies of the entire billing package.
• The billing package must include the five-part payment voucher form,
supplied by CDOT. (A copy of the form can be found on the next page.)
• Do not remove the Vendor copy. It will be returned to you after the bill has
been processed.
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
The voucher must have the following information:
Mayor
1.
2.
3.
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6.
7.
8.
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18.
Company’s name
Vendor code (Assigned by Procurement)
Address
Invoice number
Payment number
Contract number
Service performed (Date)
Project number
CDOT project manager
Release number
Amount of basic contract service
Amount of reimbursable
Contract ceiling amount including reimbursable
Amount of current invoice
Amount invoiced to date including current invoice
Invoice date
Name of consultant
Authorized signature of the vendor
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Second item in the billing package
Summary Page of the bill which includes the following information:
Summary should be written on the company letterhead and must contain the following information:
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Total labor charge
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Overhead burden and fringe
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Fixed fee
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Percent complete
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Direct costs
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Total amount due on the invoice
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Previous, current and total amounts charged.
Sub-contractor: Contract Amount, Invoiced to Date, Paid to date.
The consultant must support each invoice with reasonable detail as outlined in the
Schedule of Compensation in Exhibit 2 or Project Notice.
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Sample of Invoice Summary
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Sample of Invoice Detail
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Labor Sheet
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Please do not forget:
Mayor
• Payroll Data (in time sheet)
• Direct Costs (copy of receipts)
• Work by Subcontractors-Consultants
(Verified by Prime)
.
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
Rebekah
Scheinfeld
Commissioner
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Travel Expenditures Policy
Refer to Travel Guidelines as indicated in your
agreement or as indicated on the City of Chicago web
site.
http://webapps.cityofchicago.org/publish/etc/medialib/intranet_media_library/misc/policies/tra
vel.Par.68855.File.tmp/TravelPolicy08.pdf
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Common Causes of Payment Delays
• Insufficient documentation
• Incorrect calculations
• Incorrect contract number
• Incorrect project number or multiple project #’s
• Incorrect release number
• Incorrect address
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
TEAM EFFORT
Vendor
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Complete invoice
Accurate invoice
Monthly submission
Correct address
CDOT
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Expedite the payment to Vendor
Better communication
Correctly charge invoice to the task order
CDOT Project Manger
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Setup the funds before assigned task Order
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Track processing from receipt of invoice to payment
CDOT Commissioner’s Office
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Approve invoice and return in timely manner
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
VENDOR SUBMITS INVOICE
Admin(CDOT)
*
CLOCK STARTS
DAY 1
ENTERED IN THE SYSTEM
RETURNED BACK TO
CONSULTANT
INVOICES AUDITED
NO
*
11 days
INVOICE APPROVED
BY Audite Section
CLOCK STOPS
YES
NO
DIVISION(PM/DEPUTY)
FOR APPROVAL
7 days
CLOCK STOPS
YES
ACCOUNTING
COMMISSIONER
3 daya
2 days
CHECK
ISSUED
* CLOCK STOPS
DAY 30
YES
CONSULTANT
COMPTROLLER
6 days
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Reminder
Consultants must submit all monthly invoices to:
Deputy Commissioner, Cheiko High
Chicago Department of Transportation
Records and Estimates Section
30 N. LaSalle, Suite 600
Chicago, IL 60602
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Key Contact Personnel
Cheiko High, Deputy Commissioner of Administration
312.744.3133
E-mail:
Director of Administration : Cheryl Scott-Donegan
312.744.3910
E-mail:CScott@cityofchicago.org
Mohammed Pakshir
312.744.3561
E-Mail: mpakshir@cityofchicago.org
Rebekah
Scheinfeld
Commissioner
Chicago Department of Transportation
CDOT Professional Services Voucher Payment Process
Rahm Emanuel
Mayor
Any Questions?
Rebekah
Scheinfeld
Commissioner