CITY OF ST. PETERSBURG ADMINISTRATIVE POLICY
#050400
SUBJECT: Payment of Invoices
APPROVAL: Bill Foster, Mayor
EFFECTIVE DATE: 12/30/13
REPLACES POLICY DATED: 10/22/07
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Synopsis:
This policy applies to the payment of vendor invoices in accordance with the
Local Government Prompt Payment Act, Chapter 218, Florida State Statutes. This act,
governing financial matters of local government entities provides that payment for all purchases
be made in a timely manner; that the entities specify requirements for a “proper invoice” and
make such requirements available to vendors; and that the entities establish dispute resolution
procedures concerning payment of an invoice.
Policy:
A. Definitions
For the purposes of this policy, the following terms shall be defined:
1.
Construction Services - all labor, services, and materials provided in connection
with the construction, alteration, repair, demolition, reconstruction, or any other
improvements to real property.
2.
Contractor or provider of construction services - means any person who contracts
directly with the City to provide construction services.
3.
Proper invoice - any invoice or pay application which is received by the City
which conforms to the required criteria established in this policy.
4.
Prompt Payment - payment of proper invoices made within 45 days for nonconstruction services and 25 business days for construction services of the
payment due date as calculated by the “bill to” department according to the Local
Government Prompt Payment Act.
5.
Purchase - the purchase of goods, services, or construction services; the purchase
or lease of personal property; or the lease of real property by a local governmental
entity.
6.
Vendor - any person who sells goods or services, sells or leases personal property,
or leases real property directly to a local governmental entity.
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B. Responsibilities
Procurement & Supply Management Department - It shall be the responsibility of the
Procurement Director to develop and implement policies and procedures for the
following:
1.
Providing that no purchase order or contract entered into by the City and a vendor
violates the Prompt Payment Act;
2.
Providing that purchase orders and contracts clearly specify requirements for
submitting a proper invoice as defined in this policy;
3.
Providing that purchase orders and contracts clearly specify the City's prompt
payment dispute resolution procedures;
4.
Providing for and arbitrating the dispute resolution process in compliance with the
Prompt Payment Act; and
Finance Department - It shall be the responsibility of the Finance Director to develop and
implement procedures for the following:
1.
Notifying vendors of improper invoices in writing within 10 days of receipt;
2.
Date stamping of all invoices and other documents required for prompt payment;
3.
Providing for prompt payment of all invoices within 45 days of the calculated
payment due date for non-construction services and 25 business days for
construction services;
4.
Entering invoices, pay applications, retainage, credit memos or other documents
required for prompt payment to the accounts payable system;
5.
Notifying as soon as possible the vendor, and Procurement of the development of
any controversies that might affect prompt payment;
6.
Notifying the vendors of the City's prompt payment dispute resolution procedures
when controversies that might affect prompt payment arise; and
7.
Complying with the City's prompt payment dispute resolution procedures.
8.
Providing vendor payment processing procedures to be followed by all
departments.
Departments – It shall be the responsibility of the departments to develop and implement
procedures for the following:
1.
Entering requisition information, including price and a general description of
what is being purchased in the iProcurement system.
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C.
2.
Ensuring that all purchases, except non-purchase order requests and P-Card
transactions have a PO number or a blanket release number.
3.
Entering receiving information or contract deliverables in the iProcurement
System.
4.
Identifying and promptly resolving receiving issues.
5.
Cooperating with the Finance Department in resolving payment disputes.
General
The following applies to all external procurement of supplies or services for the City:
1.
All invoices must be sent directly to the Finance Department by the vendor. The
Finance Department will authorize payment after delivery and acceptance of
supplies or services by departments and review and matching of vendor’s invoice
with the purchase order (3-way match).
2.
The vendor’s invoice must be:
3.
a.
in compliance with the terms of the purchase order, agreement, or contract
governing the purchase of the particular supplies or services;
b.
an original invoice; and shall contain the following information:

the name of the vendor;

the date of preparation;

the number of the invoice to facilitate identification;

the authorizing City purchase order number which shall correlate to
the City purchase order with which the purchase was made, and
respective receiving entry;

the vendor’s federal identification number (if not already on file);

an accurate description of the supplies or services;

the correct quantity, unit price, and total cost of supplies or services
delivered;

any applicable discounts;

the location and date of delivery of the supplies or services to the City
(if applicable); and

the address to which the payment should be mailed (if not already on
file).
It shall be the responsibility of the Finance Department to:
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D.
a.
Resolve discrepancies between purchase orders and invoices in
collaboration with the requesting department;
b.
On standard purchase orders and blanket releases conduct a 3-way match;
that is, match purchase order, receipt and vendor invoice;
c.
Expedite invoice processing to ensure timely payment or take advantage
of early payment cash discounts when available; and
4.
The Finance Department shall review the payment documents, schedule payment
based on the terms established by the purchase order, and issue a payment to the
vendor.
5.
Any exceptions or unusual circumstances not provided for in this policy must be
documented and will be subject to review and approval by the Purchasing
Director.
Acceptance for the Purpose of Payment
Delivery of supplies or services to the City does not constitute acceptance for the purpose
of payment. Final acceptance and authorization of payment shall be given only after
delivery and a thorough inspection indicates that the supply or service meets contract
specifications and conditions. Should the delivered supply or service differ in any respect
from the specifications, payment will be withheld until such time as the supplier takes
necessary corrective action. The Procurement Department shall be notified of the
deviation in writing within five days of delivery. If the proposed corrective action is not
acceptable to the City, the Procurement Department may authorize the requesting
department to refuse final acceptance, in which case the supply(s) shall remain the
property of the supplier, and the City shall not be liable for payment for any portion
thereof.
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Resource Documents: Local Government Prompt Payment Act, Chapter 218, Florida State
Statutes; Procurement & Supply Management Policy and Procedures Manual, Chapter 8
(Processing Invoices for Payment)
Contact: Procurement & Supply Management Department
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