COMMONWEALTH OF PENNSYLVANIA
CURRENT STATE REQUISITION TO PAY PROCESS
REVIEW
August 2006
THIS DOCUMENT WAS PREPARED BY:

Tom Eiselt, Managing Director, BearingPoint, Inc.

Todd Lilly, Senior Manager, BearingPoint, Inc.

Peggy Brown, Manager, BearingPoint, Inc.

Shontrese Smith, Consultant, BearingPoint, Inc.
TABLE OF CONTENTS
1.
INTRODUCTION ........................................................................................................................................ 4
1.1.
1.2.
1.3.
2.
CYCLE TIME ANALYSIS ......................................................................................................................... 5
2.1.
2.2.
2.3.
3.
PRIMARY CALCULATION METHOD ........................................................................................................... 5
ALTERNATIVE CALCULATION METHOD ................................................................................................... 7
ANALYSIS................................................................................................................................................. 7
WORKLOAD ANALYSIS .......................................................................................................................... 8
3.1.
3.2.
3.3.
3.4.
4.
PURPOSE .................................................................................................................................................. 4
SCOPE....................................................................................................................................................... 4
APPROACH ............................................................................................................................................... 4
COMPTROLLER DATA ............................................................................................................................... 8
TREASURY DATA ..................................................................................................................................... 9
AGENCY DATA ......................................................................................................................................... 9
ANALYSIS............................................................................................................................................... 10
PROCESS DETAIL ................................................................................................................................... 11
4.1.
PHHS..................................................................................................................................................... 11
4.1.1. DPW .....................................................................................................................................................................................17
4.2. PENNDOT .............................................................................................................................................. 20
4.3. CENTRAL SERVICES ............................................................................................................................... 59
4.4.
PPR ........................................................................................................................................................ 69
4.4.1. DOC .....................................................................................................................................................................................98
4.5.
4.6.
LCB ....................................................................................................................................................... 99
LECS ................................................................................................................................................... 112
4.6.1. PDE ....................................................................................................................................................................................112
4.6.2. LECS Special Accounting ...................................................................................................................................................121
4.6.3. L&I .....................................................................................................................................................................................129
4.6.4. LECS Document Review and Control ................................................................................................................................132
4.7. TREASURY ............................................................................................................................................ 150
4.8. BUREAU OF FINANCIAL MANAGEMENT ................................................................................................ 150
4.9. BUREAU OF AUDITS ............................................................................................................................. 151
4.10. SYSTEM INVENTORY ............................................................................................................................ 152
5.
GAP ANALYSIS....................................................................................................................................... 153
5.1.
5.2.
LEADING PRACTICES ............................................................................................................................ 153
BENCHMARK METRICS ......................................................................................................................... 162
6.
KEY FINDINGS ....................................................................................................................................... 163
7.
APPENDIX: ORGANIZATION CHARTS .......................................................................................... 165
1. INTRODUCTION
1.1.
Purpose
The Comptroller’s Office of the Commonwealth of Pennsylvania commissioned BearingPoint to analyze the current
state of its requisition to payment process, identify performance gaps and make specific improvement
recommendations. We are pleased to provide this first deliverable presenting the findings of the current state
analysis.
1.2.
Scope
The scope of this engagement includes the portions of the P.O. and non-P.O. procurement and payment processes
performed within the six Comptrollers’ offices listed below, the six specifically identified agencies listed below and
Treasury:
Comptroller Offices:
 Public Health and Human Services (“PHHS”)
 Central Services (“CS”)
 Public Protection and Recreation (“PPR”)
 Pennsylvania Department of Transportation (“PennDOT”)
 Liquor Control Board (“LCB”)
 Labor, Education and Community Services (“LECS”)
Agencies:
 Department of Public Welfare (“DPW”)
 Department of Corrections (“DOC”)
 Pennsylvania Department of Education (“PDE”)
 Labor and Industry (“L&I”)
 PennDOT
 Department of Community and Economic Development (“DCED”)
1.3.
Approach
Over the last ten weeks, a project team composed of BearingPoint and Commonwealth resources conducted
interviews with Commonwealth personnel involved in the requisition to pay processes at the agencies, Comptroller
offices and Treasury. These interviews allowed the team to document worksteps and issues associated with the
current processes across the organization. In addition, the Comptrollers’ organization provided data related to cycle
times for use in a comparative analysis.
The project team reviewed the current process documentation and also compared current practices to those of other
organizations. This enabled the team to identify the opportunities for improvement presented in this document.
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©2006 BearingPoint, Inc.
2. CYCLE TIME ANALYSIS
2.1.
Primary Calculation Method
Cycle time is the measure of the time that a manually entered invoice takes to complete the process from receipt to
payment. In order to calculate the total time, we have used times for agencies, comptrollers and Treasury under the
following circumstances:
 Agency: Anecdotal comments from specific questions in agency and comptroller interviews, along with an
analysis of the time between invoice date and posting date on SAP invoices from a recent 30-day period. The
12 days that have been used across the board as the agency standard may be understated.
 Comptroller: The Comptrollers each provided the number of days of backlog currently existing in their
invoice processing group. This backlog is equivalent to the amount of time it would take for a normal
invoice to be audited and entered for payment.
 Treasury: The Treasury provided the cycle time of invoices during a presentation to a broad group of people,
which included our project team. The times were validated through individual interviews with Treasury.
 Exceptions: The project team made the assumption that exceptions are equivalent to blocked invoices in SAP.
In order to determine the cycle time of these exceptions, the project team obtained the blocked invoice report
from each Comptroller for July 28, 2006. The average age of the blocked invoices (including those blocked
for CRP)was computed by measuring the time between the Baseline date and July 28 for all invoices
(excluding invoices older than 6 months) and averaging.
Cycle Time for Manually Entered Invoices (Elapsed Calendar Days)
CS
LCB
LECS
PennDOT
PHHS
PPR
CoPA Average
0
5
10
15
20
25
30
35
40
The chart below is for manual invoices only. There are invoices that are done automatically through interface with
SAP.
Agency
CS
LCB
LECS
PennDOT
PHHS
PPR
CoPA Average
Leading Practices*
12.0
12.0
12.0
10.0
12.0
12.0
11.7
Comptroller
8.0
9.0
8.0
5.3
3.0
3.5
6.1
Treasury
Total
9.0
9.0
9.0
9.0
9.0
9.0
9.0
Exceptions
29.0
30.0
29.0
24.3
24.0
24.5
26.8
13.5
26.8
64.4
22.3
8.1
34.5
19.0
29.2
3.5
* Leading practices portrays the median benchmark.
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2.2.
Alternative Calculation Method
Another method of determining the cycle time is to examine the dates entered into the SAP system as a part of the
transaction processing similar to the exception method used above. SAP captures four dates that relate to different
steps in the process:
 Document Date: The date placed on the invoice by the vendor, which was presumably the date when it was
printed.
 Baseline Date: The date the Commonwealth first “stamped” the invoice as received. This can occur in the
Comptroller’s Offices or in the Agencies.
 Posting Date: The date the invoice was entered into SAP and posted as a financial transaction.
 Clearing Date: The date the entered invoice cleared the system as paid and was sent to Treasury.
The team used this method as an alternate because there are some systemic/process issues that could confuse the data:
 The Baseline Date changes when the invoice processor manually sets the “Pay Date” – the scheduled date for
Treasury to issue payment.
 There is no way to distinguish invoices that go to the Agencies versus those that go to the Comptroller, and
not all Agencies stamp the invoice when it is first received.
 There is no way to track mail time from the vendor.
We do believe that this alternate method is valid for directional purposes despite the concerns as it looks at all
manually entered invoices in SAP and provides tangible evidence. The following table shows the results of the SAP
query on invoice types KR and RN for the month of July. The days exclude Treasury (an additional 5-9 days) and
includes mail time (subtract 2-4 days).
CS
LECS
PDOT
LCB
PHHS
PPR
COPA
2.3.
Invoice Date
to Baseline
Date
14
21
17
16
13
17
Baseline Date
to Posting
Date
22
12
8
14
14
11
Posting Date
to Clearing
Date
1
0
7
1
1
1
16
13
2
Total
37
33
32
31
28
29
30
Analysis
From the charts above, the invoice cycle time ranges between 27 and 34 days. The Comptrollers are measured
against invoices paid within 35 days, and they are meeting this target with the majority of invoices. At the same time,
as noted in the Primary Method, leading practices is 8.5 days. A cycle time this low would allow more flexibility for
payment and offer the opportunity to negotiate and take discounts where available.
Exception processing (which could be due to blocked invoices because of non-compliant CRP) adds 29 days to the
process, which is significant compared to leading practices of 3.5 days. The exceptions take a long time primarily
due to Agency neglect for goods receipts entry and just the complications that can arise from complex service
contracts and grant agreements. We believe that the time is lengthened by the lack of a focused exception group.
In summary, the cycle times for normal invoices are by design. Because the cycle time nearly equals the pay target,
however, payments involving exceptions can take 60 days on average to resolve. Shortening the front-end cycle time
would allow time for exceptions to be available for payment in a more reasonable time.
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©2006 BearingPoint, Inc.
3. WORKLOAD ANALYSIS
3.1.
Comptroller Data
Comptrollers have been given the responsibility for reviewing and/or processing all payment requests under the
Governor’s purview. They leverage the SAP system to process manual and interfaced payments. The following
chart shows the analysis of the current work effort of the Comptroller Offices related to invoice processing. The base
data was provided by each Comptroller and was used to make the included calculations.
Labor Cost (salaries + benefits)
Imaging Cost (salaries + benefits)
# Invoices
Manual Invoices
Cost/Invoice
Cost/Manual Invoice
FTEs
Annual Invoices/FTE
Weekly Invoices/FTE
Daily Invoices/FTE
Manual Invoices/FTE
Weekly Manual Invoices/FTE
Daily Manual Invoices/FTE
Central Svcs
$
664,370
$
14,479
374,614
60,107
$
1.73
$
10.81
13
28,816
554
111
4,624
89
18
$
$
$
$
PPR
1,295,464
199,949
184,918
6.48
7.01
29
6,895
133
27
6,376
123
25
LECS
$ 2,092,846
$
70,604
409,217
58,732
$
4.94
$
34.43
33
12,401
238
48
1,780
34
7
$
$
$
$
LCB
780,989
52,458
231,933
64,148
3.14
11.36
16
14,496
279
56
4,009
77
15
PHHS
$ 1,261,911
$
98,755
137,168
120,968
$
8.48
$
9.62
28
4,899
94
19
4,320
83
17
PennDOT
787,590
83,445
136,860
97,692
$
5.15
$
7.21
19
7,398
142
28
5,281
102
20
$
$
Total
$ 6,883,169
$
319,741
1,489,741
586,565
$
4.62
$
11.73
138
10,834
208
42
4,266
82
16
The primary focus of the Comptrollers’ efforts is to ensure that payments made are accurate. This focus is derived
from the direction of the Governor and the political reality that mismanaged expenditures can become topics for
public discussion. The following chart shows the error rate percentages for invoice processing within the
Comptroller Offices as determined by the number of redlines (7/05-6/06) from Treasury. The number of redlines
indicates errors that made it past the Comptroller, but does not indicate errors (e.g. blocked invoices in SAP including
those blocked due to Contractor Responsibility Program) that occurred as a part of the Comptroller review. As the
chart shows, the Comptrollers have been very successful at minimizing the number incorrect payment requests sent to
Treasury.
Comptroller
Central Services
PHHS
PPR
LCB
LECS
PennDOT
Total
Leading Practices (Gov’t)
Redlines
351
876
552
2
250
275
2,328
% Errors*
.09%
.64%
.28%
.00%
.06%
.20%
.16%
2.00%
The primary reasons for redlines are:
 Department requests (355)
 Payee incorrect (428)
 Address incorrect (465)
* Our analysis uses the total number of invoices above as the denominator to calculate the percentage. Treasury is responsible
for additional disbursements that total approximately 3.5 million.
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©2006 BearingPoint, Inc.
3.2.
Treasury Data
Under the Fiscal Code, Treasury is responsible for auditing payment requests across the Commonwealth using
“generally accepted auditing standards” to ensure that payments are “legal and correct.” The Treasury audit
duplicates the effort of the Comptrollers, but is required by current law. The following metrics represent the cost and
productivity of Treasury’s Fiscal Review group with regards to payments made under the Governor’s jurisdiction:
Treasury
Labor Cost (salaries + benefits)
$3,232,566
Invoices
1,489,741
Cost/Invoice
$2.17
FTEs
56
Annual Invoices/FTE
26,603
Weekly Invoices/FTE
512
Daily Invoices/FTE
102
Note: Our analysis reduces Treasury provided data of headcount (67) and labor cost ($3.7 million) by approximately 17% to
account for the fact that only approximately 83% of Treasury’s disbursements result from areas under the Governor.
3.3.
Agency Data
Agency data was gathered through interviews where available. Because most of the effort related to invoice
processing is spread throughout the agencies, only specifically identifiable FTEs have been documented. This
approach will yield a more conservative number, but will still provide further directional information on the total cost
of the Commonwealth invoice processing. The estimates were made as follows:
 PennDOT: The total assumes 1 FTE per county office (total of 68), a total of 11 across all district offices and
none in the central office, though interviews indicated 38 organizations centrally also handled invoices in
some capacity.
 PDE: There is a centralized group that receives and reviews all invoices and assists with procurement.
Agency interviews noted that 2 of the 9 people in this group are dedicated to invoices.
 DOC: Per the PPR Comptroller, DOC has 44 Invoice Reconcilers.
 DCED: Per the Agency, DCED has approximately 10 FTES distributed throughout the organization.
The following table summarizes the FTE and labor cost estimates for the Agencies:
PennDOT
FTEs
Estimated Labor
Cost**
79
$5,056,000
PDE
DOC
2
$128,000
44
$2,816,000
DCED
Total*
10
$640,000
135
$8,640,000
* Information not available for DPW and L&I, as invoice effort is spread throughout the organization and would require
extensive activity surveys at the agency level to identify resource counts.
** Estimate based on average labor and benefits cost of $64,000.
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©2006 BearingPoint, Inc.
3.4.
Analysis
The following table summarizes the total cost and efficiency of invoice processing throughout the Commonwealth.
The comparisons with leading practices indicate that the Commonwealth varies unfavorably with other organizations.
Leading
Practices*
Agencies
Comptrollers
Treasury
Total*
FTEs
135
138
56
329
Labor Cost
$8,640,000
$6,883,169
$3,232,566
$18,755,735
Invoices
1,489,741
1,489,741
1,489,741
1,489,741
Cost/Invoice
$5.80
$4.62
$2.17
$12.59
$2.84
Invoices/FTE
4,528
8,352
* Leading practices represents the median benchmark. Invoices/FTE amount is for Government organizations.
The primary reason for the unfavorable variances is the successful drive for accuracy, which was shown above in
Comptroller Data. In order to achieve this level of accuracy, the Agencies and Comptrollers have created large
organizations and detailed, redundant processes. These organizations and processes are in addition to the required
Treasury organization and processes and exist as a “protection” for the Governor from the potential political impacts
of erroneous or improper payments. Both the Comptroller and Treasury are subject to these possible political impacts
related to faulty or improper payments.
Despite the size, cost and productivity of the invoice processing organizations, it would be incorrect to conclude that
any of the organizations have excess capacity or a light workload. Comptroller organizations in particular have been
shrinking due to attrition – primarily retirements – and budget cuts and are doing more work with fewer people. The
people, too, are becoming to be more skilled (e.g. SAP) and adaptable to handle the increased workload, and our
interviews and analysis did not reveal find any significant skill gaps. Instead of residing with effort or skill, the issue
rests squarely with the process and organizational redundancy.
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©2006 BearingPoint, Inc.
4. PROCESS DETAIL
4.1.
PHHS
The PHHS Comptroller Office serves the Department of Public Welfare, the Department of Aging and the
Department of Health. Activities reviewed include:
 Contracts Process
 P.O. Invoice Processing
 Non-P.O. Invoice Processing
 DPW Contracts Process
PHHS Contracts, Grants and Funds Commitments Process
The following process map represents the PHHS contracts, grants and funds commitment process. This process is
typically used to set up a contract to purchase services, though any type of purchase not already on a statewide
contract will follow the same steps. At the end of the process, the funds will be encumbered either through a funds
commitment document or a purchase order (P.O.) in SAP. The role of the PHHS Comptroller’s Office is to review
all RFPs and ensure procurement laws are followed. While they are currently a non-voting member of the evaluation
committee, after SRM is implemented the Comptroller’s Office will become an approver within the automated
workflow.
Comptroller
Office
PHHS Contracts, Grants and Funds Commitment Process
C.O. assists the
Agency in
preparing the RFP
Agency decides to
do procurement
via contracts
Agency completes
the RFP and
sends it to C.O.
and legal for
review
Agency prepares
the RFP, RFQ or
Sole Source
Agency
Start
Make
recommendations
?
C.O reviews the
RFP
No
Agency posts the
approved RFP to
DGS website and/
or advertises for
potential bidders
Yes
Yes
No
Legal
Yes
Legal assists
Agency in
preparing the RFP
DGS
Vendor
Legal reviews the
RFP
Make
recommendations
?
Vendor received
the RFP and
prepares the
proposal
Page 2
Delegate back
to Agency?
No
DGS leads RFP process – steps
consistent with those in the delegation
process, though the roles of the
agency and Procurement would be
reversed
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©2006 BearingPoint, Inc.
PHHS Contracts, Grants and Funds Commitment Process
Comptroller Office
C.O. participate in
the evaluation
process as non
voting member
C.O. reviews the
recommendation
C.O. confirms
recommendation
Yes
End
Agency prepares
recommendations
and sends it to the
parties concerned
Agency prepares,
negotiates and
finalizes the
Contract and
sends it to the
vendor for
signature
Agency revises the
recommendations
and sends it to the
parties concerned
Agency
Legal
C.O. images the
contract
No
Agency receives
the proposal and
reviews
Vendor
C.O, posts the
funds in SAP
leveraging SAP
workflow
Agency signs the contract,
enters contract information
into SAP and electronically
routes for signature to C.O.,
legal, OGC and AG as
required. Agency forwards
paper documentation for
review and approval.
Contract is executed
with the final signature
Agency sends notice of
execution and copy of
contract to vendor who
can proceed with the
work and a copies are
sent to Treasury, C.O.
and other required
parties
Page 1
Vendor sends out
the proposal/
quotes to Agency
Vendor signs the
Contract
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PHHS P.O. Invoice Processing
The following process map depicts the steps involved in P.O. Invoice Processing for PHHS. The process begins with
the requisition and purchase of goods or services and results in payment to the vendor. SAP is leveraged throughout
the process, and SRM will further enhance the functionality surrounding this process.
The Comptroller’s office reviews the following items as part of P.O. invoice processing:
 Effective dates
 Rates
 Amounts
 Remit-to address
The blocked invoice issue resolution procedures shown on the second page of the diagram occur for several reasons:
 In the case of multiple invoices and goods receipts against a single purchase order, SAP is typically unable to
match them automatically.
 Certain invoices might not include a proper remit-to address. Treasury requires an exact match of the
invoice remit-to address to the address in the vendor master file. A variation in the address from the vendor
will necessitate either correction of the invoice or addition of a partner vendor in the vendor master file. This
in turn results in multiple vendor records in the vendor master file.
Comptroller
Office
PHHS PO Invoice Processing
Non-standard T&C
Pos require legal
approval
Agency has a
requirement and
prepares a
requisition in SAP
when required
CO reviews PO;
approves or
requests
correction
Approves
Agency prepares
the PO and sends
it to C.O for review
Agency receives
the PO and sends
it to the Vendor by
mail or fax
Legal
C.O. receives the
Invoice from the
mail room
Page 2
Requisition goes
through approvals
using SAP
workflow
Vendor
Agency
Start
Correction
Vendor fulfills the
P.O,
Legal
approves?
Vendor sends the
Invoice to C.O.
No
Yes
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PHHS PO Invoice Processing
Page 1
C.O. manually
enters invoice into
SAP
Does the
Invoice match
in SAP
SAP runs the
matching process
Yes
C.O. generates the
invoice list in SAP
to be sent to
Treasury
SAP is updated
with check # or
ACH warrant #
Comptroller Office
No
SAP blocks the
mismatching invoices
either for CRP, payment
amount >$25MM, lack of
goods receipt
C.O. generates the
blocked invoice
report in SAP
C.O. generates
cleared invoice
report and
physically removes
blocked invoices
before submitting
hard copies to
Treasury
C.O. tries to
resolve the issues
with the invoices.
C.O. images the
cleared invoices
Agency
Agency assists
C.O. in invoice
issue resolution
Vendor
C.O. backs
Treasury rejected
invoices out of
SAP
Vendor assists
Agency & C.O. in
invoice issue
resolution
End
Treasury
NO
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Vendor receives
payment via mail
or ACH
Is Treasury
audit result OK
?
Treasury starts the
audit process
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and ACH
payment
information to SAP
PHHS Non-P.O. Invoice Processing
The following process map illustrates the steps involved in Non-P.O. Invoice Processing for PHHS. The process
begins with a contract already in place and results in payment to the vendor according to contract terms. Non-P.O.
transactions typically relate to grants and service contracts.
The PHHS Comptroller Office reviews the following items as part of processing invoices against contracts:
 Invoice v/s Budget Amount
 Salaries
 Operating Cost
 Line item level details
 Reallocation clause
 Terms and Conditions
 Cumulative cost or Year to date
The issue resolution process shown on the second page of the process map is typically required where incomplete
information is provided with the invoice (such as P.O. number, vendor number, SAP fund and other coding) or the
purchase order (pricing). Invoices may also be blocked due to delays in entry of the goods receipt by the Agency.
Issue resolution takes approximately 50% of a Comptroller’s Office supervisor’s time.
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PHHS Non PO Invoice Processing
Comptroller Office
No
C.O. contacts
Agency for
resolution either by
phone, email or
return letter
C.O. receives the
invoice and audits it
v/s contract, T&C,
budget, procurement
rules, agency
approval and acct.
coding
Is C.O. audit
result OK ?
Yes
Page 2
Yes
Agency has a
contract in place to
get services or
goods from
Vendor
Vendor renders
services or goods
to the Agency
Agency receives
services or goods
from Vendor
Does the
Agency
approve the
Invoice ?
Agency assists
C.O. in invoice
issue resolution
No
Agency contacts
Vendor for invoice
issue resolution
Agency reviews
the invoice against
the contract
Vendor sends
invoices to
Agency.
Vendor revises the
invoice if
necessary
Vendor resolves
issue with the
invoice
Treasury
Vendor
Agency
Start
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©2006 BearingPoint, Inc.
PHHS Non PO Invoice Processing
C.O. manually
enters invoice or
downloads
interface files into
SAP
Is the invoice
blocked?
No
C.O. generates the
invoice list in SAP
to be sent to
Treasury
SAP is updated
with check # or
ACH warrant #
End
Yes
Comptroller Office
Page 1
SAP blocks the
mismatching invoices
either for CRP,
payment amount
>$25MM, one time
Vendor
C.O. runs a
blocked invoice
report in SAP
C.O. generates
cleared invoice
report and
physically removes
blocked invoices
before submitting
hard copy invoices
to Treasury
C.O. tries to
resolve the issues
with the invoices.
C.O. images the
cleared invoices
Agency
Vendor assists
Agency & C.O. in
invoice issue
resolution
Treasury
Agency assists
C.O. in invoice
issue resolution
Vendor
C.O. backs
Treasury rejected
invoices out of
SAP
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Is Treasury
audit result OK
?
Treasury starts the
audit process
16
No
Vendor receives
payment via mail
or ACH
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
4.1.1. DPW
The Department of Public Welfare is organized into eight groups that offer human services such as medical facilities,
mental retardation facilities, Youth camps, special needs adoption, and medical assistance transportation. DPW
consumes $22.5 of the Governor’s budget – approximately one half of the budget -- offering hundreds of programs.
DPW Non-Contract Purchasing
Non-contract purchasing for DPW done by the agencies is supported by the program office, DPW Contract
Management & Purchasing and by the Comptroller’s Office. Purchase orders and funds commitments are set up in
SAP.
Program
Office / Facility
Vendor
Non-Contract Purchasing - DPW
Receives Order
Start
Makes Purchase
Requisition
Issue Resolution
Fulfills Order
Sends Invoice
Receives Order
Enters Receipt
Data in SAP
Receives Payment
End
Comptroller’s
Office
DPW Purchasing
Agent
Yes
Reviews Vendor
Info & Compliance
Issue?
No
Yes
Enters Invoice
Matches Receipt,
Invoice and
Purchase Order
Sets up Purchase
Order in SAP;
sends to Vendor
Issue?
Initiates Payment /
No Prepares Payment
File
Coordinate Issue
Resolution
Treasury
Yes
Reviews / Audits
Invoice
17
Issue?
No
Pays Invoice
©2006 BearingPoint, Inc.
DPW Contract Setup
The newly formed DPW Contract Management and Procurement team has taken an innovative approach to
supporting the DPW Program Offices in contract negotiation for their agency. This team not only pushes back on
pricing, but negotiates more favorable terms, including better insight and disclosure, damages for non-timely
delivery, and warranties. As the team ramps up, they are building a repository of rate cards, negotiation memoranda,
pricing for selected & non-selected bids. Most contracts are fixed price and deliverables-based.
Vendor
Contract Setup Process - DPW
Program Office /
Facility
Assists in
preparation of
RFP /RFQ
Assists in
preparation of
RFP /RFQ
Sends notification
of pending RFP /
RFQ
Prepares RFP /
RFQ response /
bid
Signs contract
Issue
Resolution
Issue
Resolution
Selects Vendor
Assists in analysis,
evaluation &
negotiation of
terms
Sends RFP / RFQ
to Vendors
Issue
Resolution
Support
Receives &
reviews response /
bid
Prepares Contract
Notifies
Vendors
Yes
Processes
contract for
Approver
Comptroller’s
Office
DPW Purchasing Agent
Start
DPW Contract
Analyst
Receive
RFP / RFP
Issue?
No
Sets Up Purchase
Order in SAP
Executes
Contract
Sets Up Payment
Schedule
18
Stores Soft Copy /
Forwards Contract
to Comptroller’s
Office
End
©2006 BearingPoint, Inc.
DPW Contract Payment
Payment of invoices related to DPW contracts is a combined effort of the Program Office, Comptroller’s Office and
Treasury. DPW’s contract payment office is in line with the Commonwealth’s accounts payable process, where
invoices are received and processed by the Comptroller’s office and paid by Treasury. Issues may arise related to late
entry of receipt information by the counties. Note that for service contracts, invoices are received in the field and
where they are reconciled prior to sending them to the Comtroller’s Office for entry and payment processing. This is
done because of the difficulty in matching the invoice to the contract deliverable.
Delivers Service /
Deliverable
Sends Report of
Delivery / Monthly
Progress
Sends Invoice
Issue Resolution
Receives Payment
End
No
Program
Office / Facility
Start
Receives
Deliverable
Comptroller’s
Office
Vendor
DPW Contract Payment Process
Enters Invoice
Accept
Receipt?
Yes
Enters Receipt
Information
Issue Resolution
Yes
Yes
Matches Receipt,
Invoice and
Contract Terms
Issue?
No
Initiates Payment /
Prepares Payment
File
Coordinate Issue
Resolution
Treasury
Yes
Reviews / Audits
Invoice
19
Issue?
No
Pays Invoice
©2006 BearingPoint, Inc.
4.2.
PennDOT
The Pennsylvania Department of Transportation is tasked with providing services and a safe intermodal
transportation system. PennDOT is organized into six major groups that focus on system preservation,
management & productivity, quality of life, mobility and safety of citizens. Activities reviewed include:



Contracts
Grant Payments
Invoice Processing
Pre-Consultant Agreement Activities – Non-P.O.
This process map documents the activities that need to be completed before a consultant can submit statements of
interest in response to an advertisement posted on the ECMS site. It includes the approval of the business partner
agreement, overhead rates, and hourly rates for the consultant’s employee roster. It also includes the maintenance of
the consultant’s Consultant Qualification Package. All activities here, outside of the manual routing of the business
partner agreement through the Office of Chief Counsel and the Comptroller, are transacted in ECMS.
Pre-Consultant Agreements Activities (ECMS) - Non-PO
Consultant Firms maintain their Consultant Qualification
Package (CQP) in ECMS at least annually. CQP describes
their firm's capabilities including General Information,
Experience, Resumes and Quality Plan
Agency
Consultant
Start
End
Engineering &
Computing
Management Division
(ECMD) receives
paper Agreement and
routes to Office of
Chief Counsel
Office of Chief Counsel
reviews Business
Partner Agreement and
approves and forwards
to Comptroller
Comptroller
Consultant Firms submit overhead rates via ECMS to
PennDOT for Approval
Consultant Firm
registers (one time
only) in ECMS and
sends in a signed
copy of the
Business Partner
Agreement
Review Business
Partner
agreement
Consultant Firms use ECMS Employee Roster function to
submit for approval new or updated hourly rates for
employees that will work on PennDOT projects
Consultant Agreement
Section reviews and
approves overhead rates in
ECMS
ECMD Approves
registration in ECMS
which sends Business
Partner ID information
to Consultant Firm
Consultant Agreement
Section reviews and
approves rates in ECMS
Office of Chief
Counsel forwards
signed agreement
to ECMD
All OK?
Yes
If PennDOT rejects overhead
or hourly rates, email is
automatically sent to the
Consultant Firm
Return to Business Partner
Agreement to Office of
Chief Counsel for tracking
No
Notify ECMD of the
problem who will notify
Consultant Firm of the
problem
20
©2006 BearingPoint, Inc.
Processing Consultant Agreements (ECMS) – Non-P.O.
This process map illustrates the activities to advertise for the services of a consultant firm, select the firm and execute
the agreement. Most activities, including the routing and approval of the agreement, are transacted in ECMS. A
parallel process to enter and approve the funds commitment in SAP is included in this flow.
Processing Consultant Agreements (ECMS) - Non-PO (Page 1 of 3)
Start
Modified
Selection
Process?
Selection team identifies
shortlist, Consultant
Selection Committee
approves and publishes
results in ECMS
No
PennDOT (District or Central
Office) identifies a need for the
services of a Consultant for either
a specific project or generically
through an Open-End Agreement
Project Manager creates
the Scope of Work in
ECMS containing main
and detailed tasks that
define the work to be
done.
Consultant Areement Section or
Portfolio Manager sets up the
agreement in ECMS entering the
Agreement Summary, Team,
Header, Milestones, Parts, and
Planned Projects data
Planned Project is created
and published in ECMS to
provide advanced
notification to consultants
about future projects
Project Manager or Portfolio
Manager creates and
advertisement for the project in
ECMS that is reviewed and
published in ECMS by authorized
Central Office users
Selection team identifies final
ranking of consultants,
Consultant Selection
Committee approves and
publishes results in ECMS
Consulting Firms view Planned
Projects
Consulting Firms view
advertisement and create and
submit Statements of Interest
via ECMS
Consulting Firms view selection
results in ECMS
Consultant
Agency
Selection Team
reviews statements
of interest
Project Manager
estimates the cost of
the project by creating
the Department
Estimate in ECMS
Shortlist
Dept.
Est.
Yes
Note: Department
Estimate must be
completed before
final ranking.
Final
Ranked
Processing Consultant Agreements (ECMS) - Non-PO (Page 2 of 3)
Agency
Dept.
Est.
Selection Team reviews Technical
Proposals, identifies final ranking
of consultants, obtains approval of
the Consultant Selection
Committee and publishes results
in ECMS
Consulting Firms
view selection
results in ECMS
Each Shortlisted
Consulting Firm starts
developing their Technical
Proposal and can post
questions in ECMS to
clarify scope
Final
Ranked
Consulting Firms
view selection
results in ECMS
Top Ranked Consulting
Firm starts developing
their Technical Proposal
and can post questions in
ECMS to clarify scope
Shortlisted Consulting
Firms submit their
Technical Proposals in
ECMS
Top Ranked
Consulting Firm
submits their Price
Proposal in ECMS
Negotiator creates Legal
Agreement in ECMS,
starting process to
electronically route
through approvals
Legal
Agmt
PennDOT posts
scope clarification
questions and
answers
Top Ranked
Consulting Firm
submits their
Technical Proposal in
ECMS
Comptroller
Consultant
PennDOT posts scope
clarification questions
and answers
Shortlist
PennDOT reviews
Price Proposal and
negotiates with
Consulting Firm
21
©2006 BearingPoint, Inc.
Processing Consultant Agreements (ECMS) - Non-PO (Page 3 of 3)
Agency
Legal
Agmt
Project Manager provides District
Fiscal Officer with a copy of the
first page of the agreement and
the breakdown of the cash flow
over the life of the project (by
Fiscal Year)
Comptroller
Consultant
Deputy Secretary and
Chief Counsel view and
sign agreement in
ECMS
District Fiscal Officer
manually enters the
funds commitment for
the ECMS Consultant
Agreement into SAP
Consultant Agreement
Section Chief executes
agreement in ECMS
Consultant Agreement
Section provides CRP
clearance info to
Comptroller
Consulting Firm views
executed agreement
in ECMS
Consulting Firm
views and signs
agreement in
ECMS
End
Comptroller reviews
agreement in ECMS
and checks agreement
using standard
contract checklist
All OK?
Yes
Verify funds
commitment in SAP for
correct information
Go into workflow
and approve funds
commitment
Approve
Agreement in
ECMS
Comptroller may reject
Agreement in ECMS if
problem found earlier cannot
be resolved in a timely
manner
No
Work with District Fiscal
Officers or the Consultant
Agreement Section to
resolve problem
Up to approximately 25% of
the agreements processed
require problem resolution
with CRP issues being the
main problem here
22
File
completed
checklist
©2006 BearingPoint, Inc.
Processing Consultant Agreement Supplements (ECMS) – Non-P.O.
This process map depicts the activities to create and execute a supplement to an existing Consultant Agreement as a
result of a need to modify the existing agreement. Most activities, including the routing and approval of the
agreement supplement, are transacted in ECMS. A parallel process to adjust the funds commitment in SAP is
included in this flow.
Processing Consultant Agreement Supplements (ECMS) - Non-PO
Agency
Start
Project Manager
estimates the cost of
the supplement by
creating the Department
Estimate in ECMS
PennDOT (District or Central
Office) identifies a need to modify
an existing agreement
Project Manager creates the
Scope of Work for the
supplement in ECMS
containing main and detailed
tasks that define the work to
be done.
Consultant
PennDOT reviews
Technical and
Price Proposals
and negotiates
with Consulting
Firm
Prime consultant
submits their
Technical and Price
Proposals in ECMS
Comptroller reviews
supplement in ECMS
and checks
supplement using
standard contract
checklist
District Fiscal Officer
manually creates a
request to adjust the
funds commitment
(SAP 8) and forwards it
to the Comptroller
Consultant Agreement
Section Chief executes
agreement supplement
in ECMS
Consultant Agreement
Section provides CRP
clearance info to
Comptroller
Consultant Agreement Section
or Portfolio Manager sets up
the supplement header and
parts for the existing agreement
in ECMS
Comptroller
Project Manager provides District
Fiscal Officer with a copy of the
first page of the supplement and
the breakdown of the cash flow
over the life of the project (by
Fiscal Year)
Negotiator creates
Legal supplement in
ECMS, starting
process to
electronically route
through approvals
Deputy Secretary
and Chief Counsel
view and sign
agreement in
ECMS
Consulting Firm
views and signs
supplement in
ECMS
Consulting Firm views
executed agreement
supplement in ECMS
End
All OK?
Yes
Using information from
the SAP 8, adjust the
funds commitment in
SAP
Approve
Agreement
Supplement in
ECMS
Comptroller may reject
Agreement Supplement in
ECMS if problem found
earlier cannot be resolved in
a timely manner
No
Work with District Fiscal
Officers or the Consultant
Agreement Section to
resolve problem
File
completed
checklist
23
©2006 BearingPoint, Inc.
Processing Consultant Agreement Work Orders (ECMS) – Non-P.O.
This process map walks through the activities to create and execute a work order for an existing Open-End
Consultant Agreement. The Open-End agreement sets aside funds to perform the work. A work order is created and
executed when the Department identifies that work needs to be performed and the scope of work is defined. Most
activities, including the routing and approval of the work order, are transacted in ECMS. A parallel process to adjust
the funds commitment in SAP is included in this flow. This adjustment “moves” funds to the work order by reducing
the amount on the dummy line. The net change in this case is zero.
Processing Consultant Agreement Work Orders (ECMS) - Non-PO
Agency
Start
PennDOT (District or Central
Office) identifies a need for work to
be performed against an existing
open-end agreement
Comptroller
Consultant
Portfolio Manager sets up the
work order for the existing
agreement in ECMS
For Open-End Agreements
Project Manager provides District
Fiscal Officer with a copy of the
first page of the work order and
the breakdown of the cash flow
over the life of the project (by
Fiscal Year)
Project Manager
estimates the cost of
the work order by
creating the Department
Estimate in ECMS
Project Manager creates the
Scope of Work for the work
order in ECMS containing
main and detailed tasks that
define the work to be done.
PennDOT reviews
Technical and
Price Proposals
and negotiates
with Consulting
Firm
Negotiator creates
Legal work order in
ECMS, starting
process to
electronically route
through approvals
District Fiscal Officer
manually creates a
request to adjust the
funds commitment
(SAP 8) and forwards it
to the Comptroller
Work order routed in
ECMS through the
following approvals: QC
Reviewer, Signatory
Reviewer, and [Work
Order] Owner
All OK?
No
Work with District Fiscal
Officers to resolve
problem
End
Prime consultant
views and signs
Work Order in
ECMS, executing
the Work Order
Prime consultant
submits their
Technical and Price
Proposals in ECMS
Comptroller reviews work order in ECMS
and checks the following: Is the work
order in accordance with the original
agreement? Does it have the right
approvals? Are the costs within
established limits? Has/will the
agreement expire?
The adjustment in this case
is to move funds to the work
order by reducing the
amount on the dummy line the net change should be
zero
Yes
Using information from
the SAP 8, adjust the
funds commitment in
SAP
Up to approximately 25% of the work orders
processed require problem resolution with
the main problems:
Non-qualified personnel have approved for
either the QC Reviewer or Signatory
Reviewer, Funds commitment has not been
adjusted properly, agreement will expire
before work order is complete, or not
enough funds.
24
Approve Work
Order in ECMS
Comptroller may reject Work
Order in ECMS if problem
found earlier cannot be
resolved in a timely manner
File completed
checklist (email notice
from ECMS that was
used write notes from
review)
©2006 BearingPoint, Inc.
Processing ECMS Consultant Invoices – Non-P.O.
This process map shows the activities to input, receive, and approve consultant invoices in ECMS, resulting in a
payment to the Prime Consultant. As work is performed for a consultant agreement the prime and sub consultants
enter invoice data into ECMS. The prime consultant reviews and approves the data entered by sub consultants. Once
the project manager approves the invoice in ECMS, a nightly interface transfers the payment request to SAP for
review by the comptroller. The payment to the consultant occurs after Treasury’s system receives the payment
request from SAP, Treasury receives hard copy files, and Treasury approves the payment.
General
Accounting
Comptroller (Accountant)
Agency
Consultant
Processing ECMS Consultant Invoices - Non-PO
Start
Prime consultant
and subconsultants
download an invoice
template from
ECMS
Prime consultant
completes invoice
and submits via
ECMS
Prime consultant can reject
subconsultant invoice and
subconsultant will then need
to correct and resubmit
Prime consultant
views
subconsultant
invoice in ECMS
and approves
Subconsultants
complete invoices
and submit via
ECMS
Project Manager
reviews and
approves invoice in
ECMS
ECMS nightly interface transfers
approved payment request to SAP,
posting and blocking the payment*
Project Manager can reject prime consultant
invoice (which also puts subconsultant invoice
in rejected status). Consultants then need to
correct and resubmit
Comptroller reviews
payment request checking
items such as: Does the
payment amount match
what is in SAP?
Are there
errors?
Yes
No
Report is
generated in
RMDS listing
payments included
in the batch
interface
OK to pay?
Yes
*Nightly batch interface
changes to a real-time interface
with ECMS II.
Pull RMDS report,
print, and submit
to General
Accouting
Comptroller
removes block
Correct any IDOC
erros that occured
during interface
If any errors
occur as a
result of ECMS
running its
nightly
interface with
ECMS, the
agency is
responsible for
correcting
those errors
SAP transmits payment request
to Treasury system that
responds with a check date
and number
Payment sent to
consultant
Send hard copy
files to Treasury
End
No
Only about up to 1% of
the payment requests
require problem
resolution
Contact the District to
resolve the problem
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
Run report for all
payments released
to Treasury
Reconcile report
with all physical
invoices
25
©2006 BearingPoint, Inc.
Processing Highway Construction Contracts (ECMS) – Non-P.O.
This process map represents the activities to prepare for and let a construction project through issuing Notice to
Proceed (NTP) to the contractor who has been awarded the project. It includes the process to prepare the bid
package, advertise the project, receive bids, award and execute the contract and issue NTP. Most activities, including
the receipt and opening of bids and the routing and execution of the contract, are transacted in ECMS. A parallel
process to enter and approve the funds commitment in SAP is included in this flow.
Processing Highway Construction Contracts (ECMS) - Non-PO (Page 1 of 3)
Start
Project Team (which may include PennDOT and consultant personnel) completes all items identified in the
Project Development Checklist in ECMS for the particular project. These items include the plans,
specifications, and estimates (PS&E) for the project as well as items such as documentation of completed
reviews, local agreements, Federal wage rates, environmental clearances, permits, Right-of-Way clearance,
Utility clearance, maintenance and protection of traffic (MPT) approval and appropriate fiscal authorizations (D4232 Federal, ID-21 State)
Design Project Manager runs Execute
Rules to confirm project is ready for
letting, fixing any errors and obtaining
approval for overrides, if necessary
Design Project Manager creates and
submits the bid package in ECMS
Project Team enters Design Items and
Quantities into ECMS
Agency
Project Team enters Design Item Funding into ECMS, entering fund codes, associating
State Project Numbers (SPN) to fund codes, associating Federal Project Numbers, if
required, to fund codes, and linking fund codes to design items
Bid Package is reviewed by the
appropriate reviewers depending on
project type (may include Central
Office personnel and FHWA personnel)
Design Project Manager enters project
milestones in ECMS and let date is set/
approved by the Contract Management
Section Chief
Design Project Manager publishes the
bid package which advertises it on
ECMS
Addendum
needed?
Yes
Contractor
PennDOT
publishes
Addenda
Contractor
downloads files
and prepares bid
ECMS receives
bid files via
Internet
No
Bids
received
Contractor submits
bid via Internet
26
©2006 BearingPoint, Inc.
Contractor
Processing Highway Construction Contracts (ECMS) - Non-PO (Page 2 of 3)
Apparent low
bidder submits
post bid
documents via
ECMS
Bids
received
PennDOT Contract Awards
Officer conducts bid
opening via ECMS which
checks bids and identifies
the apparent low bidder for
each project on the letting
Sign contract in
ECMS
PennDOT Contract Awards Section performs
checks and confirms bid/bidder passed all checks
to permit award of contract to contractor including:
Available capacity, 50% Work Class Code, Bid
Justification, PMC Funding, DBE Participation for
Federal Projects, Federal Debarment, Contractor
Responsibility Program, Mailing Address, Payment
Address, Insurance Certificate Forms.
Contract
Prepared
All OK?
Contract Awards Section
obtains concurrence to
award and awards
contract to contractor
Yes
Agency
No
Yes
Contract Awards Section
generates contract and
routes contract via ECMS
for approval
Department and/or
contractor resolve
issues
All
resolved?
No
Go to next
bidder?
No
27
Department rejects
project
Project
rejected
District Fiscal Officer manually
enters the funds commitment
for the ECMS construction
project into SAP
Bureau of Design and
Chief Counsel (OCC)
reviewers review and
approve contract in
ECMS
Contract signed
through OCC
©2006 BearingPoint, Inc.
Processing Highway Construction Contracts (ECMS) - Non-PO (Page 3 of 3)
Project
rejected
Comptroller (Accountant)
Agency
Contract signed
through OCC
Execute contract
in ECMS
Contract
Prepared
In ECMS Contract Awards,
verify the following:
1. CRP document is signed
and dated
2. Contractor mailing address
is on file
3. Insurance certificate is on
file and the Commonwealth of
PA is the holder
4. The contractor selected is in
fact the lowest bidder.
In ECMS Contract,
1. Verify the contractor
2. Determine if state or federal funded, or
both
4. Verify the bid opening data
5. In paragraph 1 verify contractor and
dollar amount are correct.
6. In paragraph 2 verify work being done
and confirm it is within Pennsylvania
7. In paragraph 4 verify the dollar amount
8. Verify paragraphs 16 &17 are present if
federally funded.
In ECMS, verify
1. Bid Items fall in scope of work being
done.
2. The Correct designated special
provisions (SP) are indicated in G101Aa00101 SP and if 100% state funded,
identify the MBE/WBE %
3. If 100% state funded, verify G3501Aa3501 SP is present and a % is entered
4. Verify money, project, and contractor
information in surety links correspond
with the contract
Issue Notice to
Proceed (NTP) to
Contractor
All OK?
End
Approximately 15-20% of the
contracts processed have
issues that need problem
resolution. Main problems
here: Funds commitment
not in SAP and Contractor
addresses do not match.
No
Contact Contract Awards
Section and/or District Fiscal
Officer to resolve problem
Yes
Verify funds
commitment for correct
information
All OK?
Yes
Approve
contract in
ECMS
Go into workflow in
SAP and approve
File
completed
checklist
No
Contact District
Fiscal Officer to
resolve problem
28
©2006 BearingPoint, Inc.
Processing ECMS Estimate Payments – Non-P.O.
This process map portrays the activities to record the items and quantities completed by the contractor (as viewed by
the construction inspectors) and create and approve estimate payments, generating payments to the contractor. CDS
NextGen is a system used by most projects to record project site activity records including the completed items and
quantities. Estimate payments are created in CDS NextGen and uploaded to ECMS for review and approval. Once
approved in ECMS, a nightly interface transfers the payment request to SAP for review by the comptroller. The
payment to the contractor occurs after Treasury’s system receives the payment request from SAP, Treasury receives
hard copy files, and Treasury approves the payment. In the case where an overpayment has been made, the Bureau of
Construction and Materials may work with the Comptroller to redirect payment back to the Department. In other
cases the overpayment is deducted from the next payment to the contractor. This process also covers Estimate
Interest Payments where the Department owes interest to the contractor as a result of late payments. An estimate
interest payment typically occurs only at the end of a project.
Contractor
Processing ECMS Estimate Payments - Non-PO
Performs
construction work
PennDOT
executes contract
and issues Notice
to Proceed in
ECMS
Start
Agency
Includes Estimate Interest Payments
Document
in CDS*?
*CDS =
Construction
Documentation
System Next
Generation
Yes
No
Contractor
receives payment
District approvers review and approve estimate payment in ECMS
(approvers required vary based on the content of the estimate).
Approvers may include: ACE (Asst. Const. Eng.), ADE (Asst. Dist.
Exec.), BOCM Admin Reviewer (Bur. of Const. & Materials), Finals Unit
& Supervisor Reviewers, WO (Work Order) Specialist, and DE/DA
(District Executive)
Field inspectors inspect
construction work, entering
quantities installed as Project
Site Activity (PSA) entries in
Field Inspector Diary
Daily - CDS
operators enter
PSA data into
CDS
Every 2 weeks Inspector in Charge
(IIC) creates Estimate
Payment in CDS and
uploads to ECMS
Monthly - District
personnel enter
item quantities
directly into ECMS
Every 2 weeks Inspector in Charge
(IIC) creates Estimate
Payment in ECMS
ECMS nightly interface transfers
approved payment request to SAP,
posting and blocking the payment*
Report is
generated in
RMDS listing
payments included
in the batch
interface
*Nightly batch
interface changes
to a real-time
interface with
ECMS II.
Are there
errors?
Yes
End
If any errors occur
as a result of
ECMS running its
nightly interface
with ECMS, the
agency is
responsible for
correcting those
errors
Correct any IDOC
erros that occured
during interface
General
Accounting
Comptroller (Accountant)
No
Comptroller reviews
payment request, checking
the following: pay amounts
and addresses, making
sure data in ECMS
matches SAP
OK to pay?
Yes
Comptroller
removes block
Pull RMDS report,
print, and submit
to General
Accounting
SAP transmits payment request
to Treasury system that
responds with a check date
and number and sends
payment
No
Only about 3% of the payment
requests require problem resolution.
Typically the problem is with a
payment address not matching what
is in SAP (this is an estimated guess).
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
Contact BOCM,
Contract
Management
Division or District
to resolve problem
Run report for all
payments released
to Treasury
Reconcile report
with all physical
invoices
29
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
Processing Right-of-Way (ROW) Payments – Non-P.O.
This process map documents the activities to determine and make payments to claimants as a result of the need to
acquire right-of-way for a PennDOT project. Claimants can include one or more property owners and tenants. Subclaimants can include lien holders, taxing authorities and courts. The funds commitment for these payments is
manually entered in SAP by the District and posted by the Comptroller. Once the signed paperwork is received from
the claimants, the District Right-of-Way Administrator creates the payment document(s) in ROW Office (the system
used to administer and track ROW payments). ROW Office interfaces with SAP to create and block the invoice. The
payment package is sent to the Central Office Utilities and Right-of-Way Section (URWS) for a quality assurance
check. Following successful completion of the check portions of the package are distributed to the Office of Chief
Counsel and the Comptroller for processing. The payment to the claimant occurs after Treasury’s system receives
the payment request from SAP, Treasury receives hard copy files, and Treasury approves the payment. Issues found
by the Comptroller have dropped significantly since the implementation of the quality assurance check by URWS.
Currently it is estimated that only 0.5% to 4% of the payment requests require problem resolution.
Processing Right-of-Way (ROW) Payments - Non-PO (Page 1 of 2)
Agency
Start
District R/W
Administrator enters
project in ROW
Office
Need to acquire
Right-of-Way as a
result of a
PennDOT project is
identified
Project Manager
provides pre-final R/W
plan to District R/W
Administrator and
updates based on
feedback
District R/W
Administrator
receives final R/W
plan
District completes
appraisal process,
determining fair
market value of
property
District Fiscal Officer
prepares and submits
ID-21 & ID-46 (and D4232 if Federal funds
involved)
District Fiscal Officer
manually enters the funds
commitment
(encumbrance) into SAP
for ROW Contract
As Funds Commitment
information is updated or
adjusted in SAP, SAP send
information to the ROW Office
application via message 815Funds commitment update/
adjustments.
District completes negotiation
process, including Declaration of
Taking and Deposit as well as
relocation assistance processes ,
if necessary
District prepares payment
documents, invoices, transmittal
letters, etc. and submits
documents for claimant(s)* to
sign
Documents typically include the Deed, the
Sales Agreement, the Settlement Agreement,
and relocation related documents
Claimant(s) signs
documents and
returns them to
District
Claimant(s)
signed
This posting used to
automatically occur in FMIS, but
when the Commonwealth
implemented SAP, the
Comptroller was then required to
manually perform the posting.
Comptroller
Claimant
*A project may involve one or more owners and
one or more tenants as claimants and, for
example, the following as sub-claimants: Lien
Holders, Taxing Authorities, and Courts (who
disseminate funds)
District performs field
view and enters R/W
estimate in ROW
Office
30
Verify vendor is
PennDOT and
post the
encumbrance
©2006 BearingPoint, Inc.
Processing Right-of-Way (ROW) Payments - Non-PO (Page 2 of 2)
District R/W Admin creates
payment document in ROW
Office which sends a real-time
800 message to SAP that
creates the invoice, blocks it,
and returns a financial
document number
District R/W Admin
submits the
payment package
to Central Office
(URWS) for QA
check
Central Office (URWS), performs
a quality assurance check of the
payment package, approving for
payment in ROW Office and
sending paperwork to the
Comptroller
All OK?
Yes
URWS approves payment
package in ROW Office and
distributes portions of the
package to Comptroller and
Office of Chief Counsel
No
District R/W Admin
resolves issues found
and reenters payment in
SAP, if necessary
URWS returns
payment package to
District
No
Is coding or
payee incorrect
effecting SAP
payment?
Yes
Comptroller
Office of Chief
Counsel
Agency
Claimant(s)
signed
Central Office
(URWS) sends
documents to
District who
records
documents in the
courthouse
Chief Counsel reviews
documents for form and
legality and returns to
Central Office (URWS)
Comptroller reviews payment
request checking items such
as: Are all signature blocks
signed? Do the amounts on
the paperwork match what is
in SAP and is the amount
correctly spelled out where
required? Does the payment
address match an address in
SAP?
Problem resolution is required
for about only 0.5 % to 4% of
the payment requests
General
Accounting
Send a request to
Comptroller to
reverse financial
document #
Receive request
and reply with
reversal #
OK to pay?
Yes
Comptroller
removes block
Send to
General
Accounting
No
Contact URWS to
resolve the
problem
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
If a payment amount is
incorrect and needs to be
reversed, it needs to be
reversed in both SAP (by
Comptroller) and ROW Office
(by URWS)
SAP transmits payment request
to Treasury system that
responds with a check date
and number
Payment sent to
Claimant
End
SAP sends messages to the ROW Office
application as payment moves through process:
810 - Invoice Released (unblocked)
820 - Payment creation in Treasury
830 - Treasury Warrant Information (such as,
check date and number)
Run report for all
payments released
to Treasury
Reconcile report
with all physical
invoices
31
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
Maintenance Highway Materials – Procure – P.O.
This process map depicts the activities to procure materials for highway maintenance work. It is based on the To-Be
flows defined by the Plant Maintenance project that has a planned go-live date of July 2007. This process includes
the use of Materials Requirements Planning to identify material needs and the processes to source the material. If the
custom sourcing routine finds that the source has already been defined on a contract, the auto P.O. program will
generate the P.O. and send it to the vendor once the Purchase Requisition is approved in SAP. If the custom sourcing
routine cannot identify a source, the standard COPA processes identified by SRM will be used to identify the source
and provide a P.O. to the vendor. Payment for these materials will occur following the standard process when the
goods are received.
Represents the To-Be flows using SAP defined by the
Plant Maintenance Project. Planned go-live is July 2007.
Maintenance Highway Materials - Procure - PO (Page 1 of 3)
Start
Materials Requirements
Planning executes
identifying suggested
replenishment needs
District, County, or Warehouse
Inventory person reviews the
planned orders created by MRP
and converts those they determine
should move forward to PREQs
CSR (Custom
Sourcing Routine)
Approver runs custom
sourcing routine
Source
found?
Yes
Agency
Single
source?
Yes
The custom routine
assigns single source
No
Exception
Delivery Plant
Mix Material?
Yes
ITQ
Source?
No
CSR Approver
approves PREQs
Yes
Source not
available
CSR Approver
approves PREQs
No
CSR Approver selects
from multipe sources
(e.g. FOB Source) and
updates PREQ
Open PO Line
Item with a compatible
date?
CSR Approver performs
price comparison and
updates PREQ - If not #1,
provide justification
No
ITQ
Sourced
Yes
Purchaser changes
quantity on PO and
deletes PREQ
Source
identified
CSR Approver
approves PREQs
No
Auto P.O. program
generates P.O.s and P.O.
are automatically or
manually sent to vendors
Follows release
strategy
This is the SRM process.
Outputs PO to vendor
Comptroller
(Accountant)
End
32
©2006 BearingPoint, Inc.
Represents the To-Be flows using SAP defined by the
Plant Maintenance Project. Planned go-live is July 2007.
Maintenance Highway Materials - Procure - PO (Page 2 of 3)
Source not
available
< $3K?
Yes
SRM Purchaser
converts PREQ to
P.O.
Yes
Existing Sole Source
Process
Yes
SRM Purchaser
obtains informal bids
(i.e. phone bids)
Source
identified
No
Sole
source?
Agency
These are the
standard SRM
processes for
COPA
No
$3K-$10K?
No
$10K $20K?
SRM Purchaser
obtains formal bids
(i.e. RFQ)
SRM Purchaser or Buyer
creates PO with releases
Follows release strategy
No
Existing DGS Bidding
Process
Comptroller
(Accountant)
>$20K?
Agency
Maintenance Highway Materials - Procure - PO (Page 3 of 3)
ITQ
Sourced
Purchase creates
RFQ against ITQ
Purchaser creates PO
referencing PREQ
and RFQ
Some ITQs are
PennDOT
specific, others
are general
ones for COPA
Follows release
strategy
Source
identified
Vendor
Represents the To-Be flows using SAP defined by the
Plant Maintenance Project. Planned go-live is July 2007.
Vendors respond to
RFQ
33
©2006 BearingPoint, Inc.
Processing Utility Relocation Reimbursement Agreements – Non-P.O.
This process map walks through the activities to create and execute an agreement to reimburse utilities for relocation
work that qualifies for reimbursement and is associated with a construction project. The project manager and the
District Utility Administrator (DUA) work with the utilities involved to determine utility relocations. Once the
reimbursable portion of the cost is determined, the District Fiscal Office manually enters the funds commitment in
SAP and the Central Office Utilities and Right-of-Way Section (URWS) develops a draft paper agreement and
manually routes the agreement through the approval and execution process. The Comptroller approves the funds
commitment in SAP as part of this approval process.
Utility
Company
Processing Utility Relocation Reimbursement Agreements - Non-PO
Utility Companies
provide Relocation
Prints to the District
Agency
Start
Project Manager
determines construction
project will involve the
relocation of Utilities
that qualify for
reimbursement
Project Team reviews
prints, resolves
conflicts and works with
Utility to set utility
locations
Project Manager
obtains appropriate
fiscal authorizations (D4232 Federal, ID-21
State)
Project Team, including
Utility consultant, develops
relocation plans
Project Manager, through the
District Utility Administrator
(DUA), provides Plans/
Profiles and Cross Sections
to Utility Companies and
requests relocations
Comptroller (Accountant)
Approximately 50% of the Reimbursement
Agreements require problem resolution.
Problems found here typically include:
Incorrect funds commitment amount or
amounts set up in wrong fiscal years, math
errors, and address of party on contract
does not match what is in SAP.
All OK?
Yes
District Fiscal Officer manually
enters the funds commitment
(encumbrance) into SAP for
the Reimbursement
Agreement*
Approve and return
agreement to Office
of Chief Counsel (for
tracking purposes)
Go into workflow in
SAP and approve
No
Yes
Contact District
Fiscal Officer and/
or URWS to
resolve problem
Problem
Resolved?
No
34
Utility Company
receives executed
agreement
Central Office Utility and
Right-of-Way Section
(URWS) routes agreement
for approval through
URWS, Office of Chief
Counsel and then onto the
Comptroller
Central Office Utility and
Right-of-Way Section
(URWS) develops draft
agreement and sends to
Utility Company and
DUA
DUA provides the
District Fiscal
Officer the amount
to encumber
*The funds commitment is based on an estimate that will most
likely change before the agreement is created. When better
estimates are developed, the District Fiscal Officer will need to
manually complete an SAP 8 (Request to adjust Funds
Commitment) and send to Comptroller to adjust.
Comptroller reviews
agreement using the
standard contract checklist
Utility Company signs
agreement and returns
to URWS
End
URWS sends executed
agreement copies to
Comptroller, Treasury, and
Utility and notifies District via
email that the scanned
agreement is in UR-EDMS
Office of Chief
Counsel logs
agreement and
forwards to URWS
Complete
checklist and
file
Route agreement
back to URWS to
modify and start
back through
process
©2006 BearingPoint, Inc.
Processing Utility Relocation Payments to Utility – Non-P.O.
This process map illustrates the activities to process invoices submitted by utility companies that are covered by a
reimbursement agreement. After review by the District Utility Administrator (DUA), the District Fiscal Officer
enters the invoice in SAP. The Comptroller then reviews the invoice and removes the block in SAP. The payment to
the utility occurs after Treasury’s system receives the payment request from SAP, Treasury receives hard copy files,
and Treasury approves the payment.
Utility
Company
Processing Utility Relocation Payments to Utility - Non-PO
Start
Utility Company performs
non-incorporated work
(design or construction)
that qualifies for
reimbursement
Note: The costs for Utility Relocation work that was incorporated
into the construction project and is the resposibility of the Utility
to pay for will be recovered from the Utility when the Finals Unit
in the District creates an invoice and bills the Utility. The billing
of the Utility is not part of this req-to-check process.
Utility Company
submits invoice to
District Utility
Administrator (DUA)
Utility Company
receives payment
End
General
Accounting
Comptroller (Accountant)
Agency
DUA verfies work is
complete and costs are in
line with what was
estimated
OK to pay?
Yes
Cumulative value invoiced to date less
than 75% of the total reimbursement or
is it the Final Invoice?
Yes
DUA gives invoice to
District Fiscal Officer who
enters invoice in SAP
and forwards invoice to
Comptroller
No
DUA resolves
issue with Utility
Company
Comptroller reviews
payment request check
items such as: Does the
payment amount agree
with the contract? Does
the remit to address match
what is in SAP?
DUA holds until
final invoice
received
OK to pay?
Yes
No
SAP transmits payment request
to Treasury system that
responds with a check date
and number and forwards
payment to Utility.
Send to
General
Accounting
Comptroller
removes block
No
Contact the DUA
to resolve the
problem
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
Run report for all
payments released
to Treasury
Reconcile report
with all physical
invoices
35
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
PennDOT Processing SAP P.O. Invoices
These procedures are used by the Comptroller’s Office for all invoices received for Goods or Services on Purchase
Orders. A three way match must occur before payment can be released to Treasury. Therefore, if the receipt and
P.O. are not present, the invoice will block.
An issue that the Agency experiences is that a vendor will call the District because they have had a point of contact
there for several years. However, the District may have never seen the invoice because it goes directly to the
Comptroller.
Vendor
Send invoice to
Comptroller
Admin Unit
Open mail, count
and log all
incoming invoices
Send to AP
Accountant
Receive invoices
from mailroom
Sort invoices by
type and delegate
accordingly
Receive invoice
from accountant
Enter PO# into
SAP using ME23N
Fiscal Assistant
Start
Comptroller
(Accountant)
PennDOT - Processing SAP PO Invoices
Audit invoice against PO to
ensure invoice has correct
info such as unit price,
invoice date, address,
delivery date, etc
Have good
receipts been
entered?
Pull listed invoices
from 'hold files'
No
Send to General
Accounting for
imaging and
processing to
Treasury
Enter invoice to be
blocked
Yes
Send email to
purchaser
requesting goods
receipt be entered
Enter invoice
information to
create payment
using MIRO
General
Accounting
Receive list of
unblocked invoices
from General
Accounting
Receive invoices
for imaging and
processing to
Treasury
Enter document #
on invoice
Run report of all
POs released to
Treasury
Record document
# on the top of
invoice
Reconcile report
with all physical
invoices
Take all unblocked
invoices to general
accounting section
for imaging and
processing to
Treasury
Send list of all
unblocked invoices
to AP Accountant
36
File invoice in 'hold
files'
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
PennDOT – Non-SAP non-PO Invoicing
The process map below depicts PennDOT’s approach to processing non-SAP, non-P.O. invoices. These invoices are
received and input de-centrally at PennDOT.
Comptroller (Accountant)
Comptroller
(Supervisor)
Admin Unit
District
Vendor
PennDOT - Non-SAP Non-PO Invoicing
Start
Receive goods/
services
Deliver goods/
service
Receive and sign
invoice
Open mail, count
and log all
incoming invoices
Send to AP
Accounant
Receive invoices
from mailroom
Delegate work
accordingly
Determine which
system to audit
invioce in by using
the 'invoice type'
listing guide
Perform all
mathematical
calculations
Send invoice to
district
Verify goods/
service receipt and
key invoice
information into
SAP
Audit invoice for
product, unit price,
dates, signatures,
address, county
codes, etc
Write SAP document # on
invoice and ensure funds
commitment # and
contract # (if applicable)
are on invoice
Send Comptroller
invoices
Is all
information
accurate and
present?
No
Go to GSA's
website to pull
actual imaged
contract for
complete
information
No
Are there any
discrepancies?
Receive request
and send
Comptroller new
document #
Yes
Page 2
Send invoices
general accounting
for imaging and
processing to
Treasury
Remove block
from invoice
Yes
Contact the district
for reversal and
reentry using same
invoice (exception for
bituminous asphalt)
General
Accounting
PennDOT - Non-SAP Non-PO Invoicing (Page 2)
Page 1
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
Run report for all
payments released
to Treasury
37
Reconcile report
with all physical
invoices
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
PennDOT – Direct Expenditures
These procedures are used by the Comptroller’s Office to process a Direct Charge when a Contract or Purchase Order
is not required under Act 57 for expenditures less than $3,000 or payments directed under grants that do not require
an encumbrance document. (Comptroller Office Operations Manual – Direct Charge Payment Processing).
Comptroller (Accountant)
Comptroller
(Supervisor)
Admin Unit
District
Vendor
PennDOT - Direct Expenditure Invoicing
Start
Receive goods/
services
Deliver goods/
service
Receive and sign
invoice
Open mail, count
and log all
incoming invoices
Send to AP
Accounant
Receive invoices
from mailroom
Delegate work
accordingly
Determine which
system to audit
invioce in by using
the 'invoice type'
listing guide
Perform all
mathematical
calculations
Send invoice to
district
Verify goods/
service receipt and
key invoice
information into
SAP
Audit invoice for
product, unit price,
dates, signatures,
address, county
codes, etc
Write SAP document # on
invoice and ensure funds
commitment # and
contract # (if applicable)
are on invoice
Send Comptroller
invoices
Receive request
and send
Comptroller new
document #
Receive list of
blocked invoices
from General
Accounting
Pull listed invoices
from 'hold files'
Send to General
Accounting for
imaging
Is all
information
accurate and
present?
No
Contact the district
for reversal and
reentry using same
invoice (exception for
bituminous asphalt)
Yes
Page 2
Send invoices
general accounting
for imaging and
processing to
Treasury
Remove block
from invoice
Run report for all
payments released
to Treasury
Reconcile report
with all physical
invoices
General Accounting
PennDOT - Direct Expenditure Invoicing
Page 1
Receive invoices
for imaging (copy
is imaged, orginal
goes to Treasury)
38
Send hard copy
files to Treasury
End
©2006 BearingPoint, Inc.
PennDOT – PO against an ITB for Service
An agency identifies a need and receives internal approvals to send out an ITB. The agency will draft an ITB, send it
out, receive the ITB, and create a PO based on the lowest responsive/responsible vendor. As long as the ITB is for an
amount greater than $3K, the agency will send the PO to the Comptroller’s Office. If PO is greater than $10K, it
must go to Agency Legal and if non-standard terms and conditions are not used, the Attorney General/General
Counsel will get involved.
PennDOT - SAP PO against ITB Services
Send ITB to
Vendors
Receive
completed bid
from vendors
Create PO based
on lowest
responsive/
responsible vendor
Is PO >$3K?
Agency
Start
Release approved
SAP PO to Vendor
No
Yes
Research and
resolve issues
Send to
Comptroller
Agency Legal
Send back to
Agency
Page 2
a
Should SAP
PO be
approved?
No
Review SAP PO
Yes
Vendors
Send to Attorney
General/General
Counsel
Receive ITB
Yes
Release PO to
agency
Submit completed
bid to Agency
Page 2
Comptroller
Does ITB have
standard terms
and
conditions?
No
Release to Agency
No
Is PO >$10K?
Yes
Release to Agency
Legal
Yes
Receive SAP PO
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Verify bid amount,
name, and
address on SAP
PO match bid
Verify bid was
awarded to lowest
responsive/
responsible vendor
39
Should SAP
PO be
approved?
No
Send email to
resolve issue
©2006 BearingPoint, Inc.
Send back to
Agency Legal
Vendor
No
Should SAP
PO be
approved?
Receive and
review PO from
Agency Legal
Page 1
Yes
Release to Agency
Agency
Attorney General/ General
Coucil
PennDOT - PO against an ITB (page 2)
Page 1
a
Receive approved
PO
Release approved
SAP PO to vendor
Receive released
SAP PO
End
40
©2006 BearingPoint, Inc.
PennDOT – PO against DGS Statewide Contract (Quote/No Quote required)
In these two processes, an agency will either request a quote from a DGS supplier or proceed to create a PO if a
standard price is stated in contract. One issue that is outstanding in this process is being able to procure thing below
the P-Card threshold when it is against a DGS Statewide Contract.
PennDOT - SAP PO for DGS Contracts (Quote Required)
Agency
Yes
Start
Prepare SAP PO
referencing DGS
contract
Vendor
Send SAP PO to
vendor
No
Submit copy of
quote to
Comptroller
Request quote
from DGS supplier
Comptroller
Is SAP PO
<$3K?
Receive quote
request
Submit completed
quote to Agency
Audit PO for
funding source,
account coding
and propriety of
purchase
Verify vendor
quote matches
SAP PO
Research and
resolve any issues
with PO
Receive released
SAP PO
Audit SAP PO
against DGS
contract and
validity period
End
Send request to
Agency for
resolution
No
Should SAP
PO be
approved?
41
Yes
Release PO
©2006 BearingPoint, Inc.
PennDOT - SAP PO for DGS Contracts (No Quote Required)
Agency
Yes
Start
Prepare SAP PO
referencing DGS
contract
Is SAP PO
<$3K?
Release SAP PO
to vendor
No
Research and
review any issues
with PO
Comptroller
Vendor
Submit to
Comptroller
Receive released
SAP PO
Audit PO for
funding source,
account coding
and propriety of
purchase
Audit SAP PO
against DGS
contract and
validity period
End
Work with Agency
for resolution
No
Should SAP
PO be
approved?
42
Yes
Release PO
©2006 BearingPoint, Inc.
PennDOT – DGS SAP PO for Commodities >$20,000.
If the original contract amount is anticipated to exceed $20,000 (not to include renewal options), DGS solicits, bids,
awards and purchases the supply (except steel for bridges). The originating organization prepares specification and
the requisitioner creates a shopping cart in EBPro.
After the purchase requisition has gone through appropriate reviews, it will be routed with proper supporting
documentation to DGS. DGS will create an RFQ with reference to the purchase requisition and a purchase order with
reference to the RFQ.
Start
Prepare requisition
Submit to DGS
Receive requisition
from Agency
Award bid based
on lowest
responsive/
responsible vendor
Prepare SAP PO
Research and
resolve issues
Vendor
DGS
Agency
PennDOT - DGS SAP PO - Supply >$20K
Research and
resolve issues
Prepare ITB
Receive and
review submitted
bids
Receive ITB
Submit completed
bid to DGS
Approve SAP PO
and submit to
comptroller
Research and
resolve issues
No
Receive approved
SAP PO from DGS
Legal
Release approved
SAP PO to vendor
Receive released
SAP PO
End
DGS Legal
Comptroller
No
Receive SAP PO
Audit for funding
source, account
coding, and
propriety of
purchase
Send back to DGS
Should SAP
PO be
approved?
Yes
Should SAP
PO be
approved?
43
Yes
Release SAP PO
Receive and
review SAP PO
©2006 BearingPoint, Inc.
PennDOT – Grant Agreements
A grant is a legally binding agreement between a grantor and grantee or sub-grantee which delineates all terms and
conditions of a particular grant (OA Central – Management Directive 305.20). The grantees may be awarded the
grant based on whether they meet general criteria and their ranking/scoring.
PennDOT - Grant Agreements
Page 2
a
Agency
Start
Send out/post to
web instructions to
grantees with
conditions that
must be met to
qualify for grant
Receive
agreement sent
back from
Comptroller
Does the
grantee meet
the grant award
criteria and/or
ranking?
Review application
yes
Will application
be used as the
grant
agreement?
Yes
Send to
designated agency
approver
no
No
Page 2
Send to
Comptroller
(mailroom)
Receive
information/
instruction on
conditions that
must be met to
qualify for grant
Notify grantee
reason for denial
of grant award
Develop and
submit grant
agreement to
grantee
Designated
agency approver
signs and sends to
agency attorney
Receive and input
into log/tracking
file
Receive
agreement, sign
and send back to
agency
Submit completed
grant application
Agency
Attorney (Legal)
Grantees
Page 2
b
Resolve
outstanding issues
Send back to
Agency
44
Review and sign
agreement
©2006 BearingPoint, Inc.
Comprtroller
Mailroom
PennDOT - Grant Agreements (Page 2)
Page 1
Receive grant from
agency
Date stamp 2nd
copy
Yes
File FIFO
Retrieve grant
agreement
Comptroller
Page 1
b
Does this grant
use federal
funds?
Verify award
process
Page 3
Post funds
commitment
document
Yes
No
Take grant
agreement
package to special
accounting group
for approval
Log into SAP to
verify name,
agreement #,
address,etc
Audit grant
agreement pay
sched., funds
appropriateness,
math calc. etc.
Does audit
meet approval
criteria?
No
No
Does resolution
require send
back to
agency?
Contact agency for
resolution
Yes
Yes
Special
Accounting
Page 1
a
Work with agency
to resolve
45
No
Does grant
meet approval
criteria?
Receive grant and
review
©2006 BearingPoint, Inc.
Agency Legal
Comptroller
PennDOT - Grant Agreements (Page 3)
Page 2
Receive grant
agreement package
from Comptroller
and record into log
tracking system
Sign grant
Review for final
signatures needed
Receive fully
executed copy of
contract
Send to Agency
Legal
Should package
be sent to
Attorney General
and General
Counsel?
No
End
Receive fully
executed copy of
agreement
Image contract
and return to
Contract Unit for
filing purposes
Return to agency
for distribution
Yes
Receive fully
executed grant
package from
Attorney General/
General Counsel
Send package to
Attorney General/
General Counsel
Page 3
Distribute a fully
executed copy to
Comptroller,
Treasury, and
grantee
Agency
Attorney
Admin Unit General/General
Coucil
Send to Admin
Unit for imaging
Receive package
from Agency Legal
Review grant
agreement
package
Sign and return to
Agency Legal
46
©2006 BearingPoint, Inc.
PO against ITB for Supplies >$3 <$20
This process highlights the way in which invitation to bids are used for supplies great than $3K, but less than $20K.
Any PO over $10K requires Agency Head, Agency Legal, and Comptroller approval. Those POs below $10K only
require Comptroller approvals.
PennDOT - ITB for Supplies (> $3K < $20K)
Start
Send ITB
Receive
completed bid
from vendors
Select vendor
based on lowest
responsive/
responsible vendor
End
Agency
No, <$3K, use P-Card or SAP PO
(as appropriate)
Is PO >$3K
and <$20K?
Prepare SAP PO
Yes
Vendors
Send to
Comptroller
Receive ITB
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Submit completed
bid to Agency (by
phone/fax)
Verify bid amount
matches PO
quantity, name,
and address
Approve and
release SAP PO
Comptroller
Receive SAP PO
Research and
resolve issues
Yes
Is SAP PO
<$10K?
Yes
Verify bid was
awarded to lowest
responsive/
responsible vendor
No
Send to Agency
Legal
Page 2
Should SAP
PO be
approved?
Request correction
and send email to
Agency
No
47
©2006 BearingPoint, Inc.
PennDOT - PO ITB for Supplies (> $3K < $20K) (Page 2)
Page 1
Review SAP PO
Should SAP
PO be
approved?
Yes
Are standard
terms and
conditions
used?
No
Send to Attorney
General/General
Counsel
Send to Agency
Research and
resolve issues
Work with Agency
Legal to resolve
No
No
Send to Agency
Yes
Research and
resolve issues
Vendor
Agency
Attorney General/General Counsel
Agency Legal
Yes
Should SAP
PO be
approved?
Receive approved
PO
Receive PO from
Agency Legal
Release approved
SAP PO to vendor
Receive released
SAP PO
End
Sole Source
Sole source for services can be used to purchase a service involving repair, modification or calibration of equipment
by and for repair parts supplied by the manufacturer or the manufacturer’s authorized dealer. These are authorized up
to $10,000 without requiring sole source approval. For purchase of highway equipment repair services (refer to Pub.
3 SAP – Highway Equipment) for criteria to qualify as sole source. Approvals Required:
 Sole Source RFQs – Secretary of DGS
 PO <$10,000: Comptroller
 PO >$10,000: Comptroller, Agency Head, Agency Legal
 Contract <$25,000: Agency Head, Comptroller
 Contract >$25,000: Agency Head, Comptroller, Agency Legal
Sole source for services can be used to purchase a service involving repair parts and services (non-highway
equipment) available from the manufacturer or the manufacturer’s authorized dealer. These are also authorized up to
$10,000 without requiring sole source approval. Approvals Required:
 Purchase Order (SSD)
 Secretary of DGS
 Comptroller
 DGS Legal
 Treasury
 Sole Source Board
48
©2006 BearingPoint, Inc.
Agency
Start
Submit requisition
to DGS, attach
Sole Source Fact
Sheet, and
prepare SAP PO
DGS
Verify Sole Source
and send RFQ to
vendor
Obtain DGS
internal approvals
including Sole
Source Board
Vendor
PennDOT - Sole Source Procurement for Supplies (>$3K)
Complete quote
and send back to
DGS
Research and
resolve issues
Approve SAP PO
Page 2
Comptroller
Yes
Receive SAP PO
Verify sole source
amount, name,
and address on
SAP PO match
quote
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Should SAP
PO be
approved?
No
Approve and
release SAP PO
Is SAP PO
<$10K?
Send to Agency
Legal
Request correction
and send email to
agency
Approve SAP PO
Treasury
Page 1
Approve SAP PO
DGS
DGS Legal
PennDOT - Sole Source Procurement for Supplies (>$3K)
Approve SAP PO
on behalf of Sole
Source Board
End
49
©2006 BearingPoint, Inc.
PennDOT – Federal Grant Agreement Invoicing
This process illustrates the federal grants process within PennDOTs Comptroller’s Office. In this case, the federal
accounting group is tasked with actually going into a separate federal system (the specific federal system will depend
upon what program it is for, e.g., Federal Aviation) and drawing money from that system after a complete audit of the
package that has been sent from the Department to the Comptroller is complete. In these cases, the Accountant will
have to record all transactions occurring outside of SAP manually based on the dates that federal funds are available
or received. These transactions generate RT documents, or receiver transaction documents.
PennDOT - Federal Grants Payments
Enter invoice into
SAP
Receive package
Review to ensure all
documentation is present
and accurate including
summary vendor invoice and
expenditure status report
Assemble
information
package and send
to Comptroller
Post block invoice
Research and
resolve issues
Federal Agency
Federal Accounting
Agency
Start
Are all docs
present and
accurate?
No
Contact or send
back to Agency for
resolution
Yes
Enter information
into federal system
Review
information in
system, approve
and send to
agency
Notify bureau
invoice is unblock
Unblock invoice
and assign pay
date
Page 2
50
©2006 BearingPoint, Inc.
Page 1
Receive approval
and send to
federal accounting
Log into
appropriate federal
system and draw
money
Log into SAP and
record draw of
money from
federal system
Receive copy of
invoice
Image and discard
Generate RT and
other grant
transactions, print
RT and approve
Send copy of RT
to General
Accounting
Treasury
General
Accounting
Federal
Accounting
Agency
PennDOT - Federal Grants Payments (Page 2)
Send original RT
invoice to Treasury
for processing
End
Receive
documentation,
process, and make
payment
51
©2006 BearingPoint, Inc.
PennDOT – Restricted Receipts Invoicing
Restricted receipts are somewhat different, in that the Comptroller plays a different role for these transactions. In
these processes, the Comptroller acts as a conduit between local and federal funds. The Accountant must ensure
monies are available to process the invoice, and do some editing of the post-blocked invoice involving a change of
the baseline date and payment date to stay in line with funds becoming available from FHWA.
Enter invoice into
SAP
Start
District
Agency
PennDOT - Restricted Receipts
Assemble
information
package and send
to Comptroller
Post block invoice
Research and
reolve issues
Change baseline date (do not pay
until a certain date when federal
funds are transferred and made
available)
Is all
information
correct?
Yes
Generate RT and
other grant
transactions, print
RT and approve
Receive copy of
invoice
Unblock invoice
Modify postblocked document
information
Send notice and
letter to Treasury
and General
Accounting
Image invoice by
federal project
number
Keep copy of RT
in weekly bill folder
FHWA weekly bill
is generated and
AR automatically
created
Send RT to
Treasury for
processing
There is a weekly transmittal for
entire federal highway bill. This is a
summary level of all RT documents.
Hardcopies must still be submitted to
Treasury
Image and discard
Treasury
General
Accounting
Federal Accounting
No
Review to ensure
moneys are
available,
documentation is
present, accurate
and complete
Receive
documentation,
process, and make
payment
52
End
©2006 BearingPoint, Inc.
PennDOT – Formal Agreements
Formal agreements can be encumbered or non-encumbered. If they are encumbered, the Agency is responsible for
entering the funds commitment document. If it is non-encumbered, the funds commitment step will be skipped, the
contracting party will review agreement, and they will sign accordingly. If a pre-approved form is not present in the
agreement, Attorney General/General Council will get involved.
PennDOT - Formal Agreements
No
Prepare
agreement
Is this
encumbered?
Yes
Enter funds
commitment
document
Park document
Send to Agency
Legal
Obtain necessary
Agency approvals
Send to
Contracting Party
Agency
Start
Contracting
Party
Research and
resolve issues
Receive
agreement, sign
and send back to
Agency
Agency Legal
Yes
Send to
Comptroller
Work with agency
to resolve
Should
agreement be
approved?
No
Receive
agreement from
Agency and review
Comptroller
Yes
Review agreement
Audit agreement
for funding source,
account coding,
and propriety of
purchase
Is all
information
correct?
Verify name, and
address match
53
No
Work with agency
to resolve
Page 2
©2006 BearingPoint, Inc.
PennDOT - Formal Agreements (Page 2)
Comptroller
No
Agency Legal
Page 1
Receive
agreement
Post funds
commitment
Yes
Does
agreement
have preapproved
form?
No
Send to Agency
Legal
Send to Attorney
General/General
Counsel
Yes
Attorney General/General
Counsel
Receive approved
agreement and
send to Agency
Agency
Is this
encumbered?
Send to Agency
Legal
Send to Agency
for distribution
Yes
Should
agreement be
approved?
Receive
agreement from
Agency Legal
No
Work with Agency
Legal to resolve
End
Receive
agreement and
distribute to
Comptroller,
Treasury, and
Contracting Party
Research and
resolve issues
PennDOT – RFP for Formal Agreements
A request for proposal (RFP) will follow the same major steps as a formal agreement. The differences are the steps
on the front end of the process. The Agency will send out a RFP to the vendors and award based on qualifications
and rankings. From there, it follows suite with formal agreements.
54
©2006 BearingPoint, Inc.
PennDOT - RFP for Formal Agreements
No
Issue RFP
Agency
Start
Evaluate vendor
proposals and
award contract to
vendor with the
highest score
Prepare contract/
formal agreement
Is this
encumbered?
Vendor
Research and
resolve issues
Enter in funds
commitment and
park document
Send to Agency
Legal
Send to
Contracting Party
Obtain necessary
Agency approvals
Submit proposal
Contracting
Party
Receive RFP
Yes
Receive
agreement, sign
and send back to
Agency
Agency Legal
Yes
Send to
Comptroller
Work with agency
to resolve
No
Should
agreement be
approved?
Receive
agreement from
Agency and review
Comptroller
Yes
Review agreement
Audit agreement
for funding source,
account coding,
and propriety of
purchase
Is all
information
correct?
Verify name, and
address match
55
No
Work with agency
to resolve
Page 2
©2006 BearingPoint, Inc.
PennDOT - RFP for Formal Agreements (Page 2)
Comptroller
No
Agency Legal
Page 1
Receive
agreement
Post funds
commitment
Yes
Does
agreement
have preapproved
form?
No
Send to Agency
Legal
Send to Attorney
General/General
Counsel
Yes
Attorney General/General
Counsel
Receive approved
agreement and
send to Agency
Agency
Is this
encumbered?
Send to Agency
Legal
Send to Agency
for distribution
Yes
Should
agreement be
approved?
Receive
agreement from
Agency Legal
No
Work with Agency
Legal to resolve
End
Receive
agreement and
distribute to
Comptroller,
Treasury, and
Contracting Party
Research and
resolve issues
56
©2006 BearingPoint, Inc.
PennDOT – ITB for Formal Agreements
An invitation to bid (ITB) will follow the same major steps as a formal agreement. The differences are the steps on
the front end of the process. The Agency will send out an ITB to the vendors and award based on lowest
responsive/responsible vendor. From there, it follows suite with formal agreements.
PennDOT - ITB for Formal Agreements
No
Send ITB/contract
to Vendors
Agency
Start
Receive
completed bid/
contract from
vendors
Is this
encumbered?
Vendor
Research and
resolve issues
Send to Agency
Legal
Send to
Contracting Party
Obtain necessary
Agency approvals
Submit completed
bid/conract to
Agency
Contracting
Party
Receive ITB/
contract
Enter in funds
commitment and
park document
Yes
Receive
agreement, sign
and send back to
Agency
Agency Legal
Yes
Send to
Comptroller
Work with agency
to resolve
No
Should
agreement be
approved?
Receive
agreement from
Agency and review
Comptroller
Yes
Review agreement
Audit agreement
for funding source,
account coding,
and propriety of
purchase
Is all
information
correct?
Verify name, and
address match
57
No
Work with agency
to resolve
Page 2
©2006 BearingPoint, Inc.
PennDOT - ITB for Formal Agreements (Page 2)
Comptroller
No
Agency Legal
Page 1
Receive
agreement
Post funds
commitment
Yes
Does
agreement
have preapproved
form?
No
Send to Agency
Legal
Send to Attorney
General/General
Council
Yes
Attorney General/General
Council
Receive approved
agreement and
send to Agency
Agency
Is this
encumbered?
Send to Agency
Legal
Send to Agency
for distribution
Yes
Should
agreement be
approved?
Receive
agreement from
Agency Legal
No
Work with Agency
Legal to resolve
End
Receive
agreement and
distribute to
Comptroller,
Treasury, and
Contracting Party
Research and
resolve issues
58
©2006 BearingPoint, Inc.
4.3.
Central Services
The Central Services Comptroller’s organization supports the Governor's Office, Executive Offices, Banking,
Securities Commission, Historical and Museum Commission, Insurance, General Services, Revenue, State,
Lieutenant Governor's Office, Civil Service Commission, Pennsylvania Public Television Network, State Tax
Equalization Board, Ethics Commission, State Employees' Retirement System, Public School Employees' Retirement
System, Pennsylvania Housing Finance Agency, and the Pennsylvania Municipal Retirement System.
Activities reviewed include:
 RFP Process
 Purchase Order and P.O. Invoice Process
 Interfaced and Direct Charge Invoice (Non-P.O.) Process
 Funds Commitment Invoice Processing
 Grant Process
CS RFP Process
The following process map represents the procurement steps within the agencies represented by the Central Services
comptroller office. This process is typically used to set up a contract to purchase services, though any type of
purchase not already on a statewide contract will follow the same steps. At the end of the process, the funds will be
encumbered either through a funds commitment document or P.O. in SAP.
Comptroller
Office
Central Services RFP Process
C.O reviews the RFP
for budget, fiscal
responsibility,
availability of funds etc
C.O. assists the
Agency in
preparing the RFP
as required
C.O. approves
the RFP?
Yes
No
Agency decides to
do procurement
via Contracts
Agency
Start
ITB
RFP, ITB, Sole
Source,
Emergency?
Agency completes
the RFP and
sends it to C.O.
and DGS for
review
Agency prepares
the RFP
Agency posts the
RFP to DGS
website for
advertisement
Sole Source/
Emergency
Page 2a
No
Yes
DGS
Agency solicits
telephone bids and
selects vendor
Agency sends
RFP to
Disadvantaged
Business Program
for review
Yes
Agency sends the
RFP to Vendor
RFP
Procurement
reviews and
approves the RFP
Delegate back
to Agency?
DGS leads RFP process – steps
consistent with those in the delegation
process, though the roles of the
agency and Procurement would be
reversed
Disadvantage or
SERB business
reviews the RFP
Vendor
No
Procurement
reviews the
RFP
Page 2b
59
Vendor received
the RFP and
prepares the
proposal
©2006 BearingPoint, Inc.
Comptroller Office
Central Services RFP Process
C.O. participates
in the evaluation
process as non
voting member,
assists with bid
opening
C.O. reviews the
encumbered
document and posts
funds to SAP
C.O. participates
in the negotiation
with the Vendor
From 2a
Agency
Agency receives
the proposal and
reviews/scores
Agency prepares
recommendations
and sends to
parties concerned
including C.O.
Agency negotiates
with the Vendor for
the prices
Agency prepares
the Contract and
sends it to Vendor
for signature
Agency signs the
contract and
electronically routes
for signature to C.O.,
legal, DGS, OGC and
AG as required
Vendor
END
From 2b
Vendor sends the
proposal/ quotes
to Agency
Vendor
participates in the
negotiation for the
price
60
Contract is executed
with the final
signature, and the
Agency images the
contract and enters
purchasing document
with associated
documentation in SAP
Notice of execution and
copy of contract sent to
vendor who can
proceed with the work
and a copy sent to
Treasury for imaging
and public record
Vendor signs the
Contract
©2006 BearingPoint, Inc.
CS Purchase Order and Invoice Processing
The following process map represents the steps to process a P.O. purchase transaction and subsequent invoice
processing. P.O.s and invoices are processed in SAP.
CS Comptroller Office ensures that the approved invoice has the following information so that it can be processed in
SAP:
 Vendor #
 Coding Fund Commitment #
 Cost Center
 GL
 Line #
 SAP Fund #
 Payment method by Check or ACH
 Remit-to address
The blocked invoice resolution procedures are the result of several issues:
 Agencies often manually change the Bill-to address on the P.O. so the Invoice is sent to them rather than the
CS Comptroller’s Office.
 A significant number of invoices are missing required information such as the contract line item #, P.O.#,
rate information, remit-to address.
 For Funds Commitment, Agencies do not validate whether the invoice includes all the required details such
as the FC#, Time stamp or Coding.
 Agencies enter the goods receipt after the invoice is received rather than at the time goods are received.
 The remit to address on the invoice must match the remit to address in the vendor master file very precisely
for Treasury to pass it for payment. In some cases the remit to address is not present on the P.O.
Central Services PO and Invoice Processing
No
Comptroller Office
C.O. contacts
Agency for
resolution
C.O.
approves
the PO?
C.O. receives the
Invoice from the
mail room and preaudits invoice
against P.O.
Issues?
Yes
No
Page 2
C.O. contacts
Agency for
resolution by
phone, mail or
return letter
PO > $3000 needs
Yes
C.O. approval
Yes
Yes
Agency
Start
Agency has a
requirement and
enters a requisition
in SAP manually
Agency resolves
the PO issue
>$3000?
No
Agency reviews
the PO. In case of
a Non Std PO it is
routed to OGC &
AG for signature
Agency receives
the Goods /
Services and
enters GR into
SAP
Yes
Agency tries to
resolve issue
No
Requisition goes
through approvals
using SAP
workflow
Agency prints the
PO and sends it to
Vendor by mail or
fax
Requisition
becomes a PO.
Some wait for
Agency approval
Agency contacts
vendor for
resolution
Vendor
Agency approves
the PO. Routed to
C.O. in SAP
Vendor fulfills the
PO, Sends the
Goods to Agency
61
Vendor sends the
Invoice to C.O.
Vendor resolves
the issue and
sends revised
invoice if
necessary
©2006 BearingPoint, Inc.
Central Services PO and Invoice Processing
C.O. manually
enters invoice into
SAP
Comptroller Office
Page 1
SAP runs the
matching process
Does the
Invoice match
in SAP
Yes
SAP generates the
invoice list to be
sent to Treasury
SAP is updated
with check #
End
No
C.O. run the
blocked invoice
report in SAP
C.O. removes the
blocked invoices
from the list and
sends paper copy
to Treasury
C.O. tries to
resolve the issues
with the Invoices.
Agency
SAP blocks the
mismatching Invoices
either for CRP, Payment
amount excess, one time
Vendor
C.O. images the
invoices
Agency uses MR
11 for resolution
Treasury
Vendor
NO
Vendor assists
Agency & C.O. in
Invoice issue
resolution
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Is Treasury
Audit result OK
?
Treasury starts the
audit process
62
Vendor receives
payment via mail
or ACH
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
CS Interfaced and Direct Charge Invoice Processing
The following process map walks through the steps for a direct charge or interfaced invoice to be paid. A direct
charge invoice does not have a P.O. or a contract associated with it, which means that the vendor and payment
information is entered into SAP for the first time. Direct charge invoices may be entered manually or through
interfaces from other systems. CS manages 14 interfaces from agency systems that load invoices directly into SAP:














Tort Claim
CAT Fund – HHC Claimant Care
Worker’s Comp Indemnity (Insurance)
MCARE Claims
Worker’s Comp Medical/Legal
Retiree’s Medicare PEBTF
Crime Victims – Providers
Worker’s Comp. Medical/Other
CAT Fund - Other
MCARE Abatement
USTIF
Worker’s Comp Indemnity (OA)
Crime Victims – Claimants
E-Grant
Comptroller Office
CS Interfaced and Direct Charge Invoice Processing
No / Budget Issue or any other issue?
Types of invoices covered by this
process include utilities, purchases
<$3K w/o PO, and the 13 interfaced
systems
C.O. contacts
Agency for
resolution either by
phone, email or
return letter
C.O. receives the
Invoice and audits
it v/s Budget
C.O. checks
invoice compliance
with procurement
rules
Is C.O. audit
result OK?
Yes
Page 2
Yes
Agency receives
services or goods
from Vendor
Does Agency
approve the
Invoice
Agency assists
C.O. in invoice
issue resolution
Agency
No
Agency receives
the Invoice and
reviews it
Vendor
Start
Vendor renders
services or goods
to the Agency
Contact Vendor for
invoice issue
resolution
Vendor revises the
invoice if
necessary
Vendor sends
invoices to Agency
63
Vendor resolves
issue with the
invoice
©2006 BearingPoint, Inc.
CS Interfaced and Direct Charge Invoice Processing
C.O. manually
enters invoice into
SAP with the
exception of the 13
automatic interfaces
SAP runs the
validation process
Does the
Invoice match
in SAP
Yes
SAP generates the
invoice to be sent
to Treasury
SAP is updated
with check #
C.O. does the post
audit process
No
End
13 Automatic
interfaces to
generate invoices
in SAP from VIPs
file in batch
process
SAP blocks for either
CRP, $5MM and $25MM
thresholds, or one time
vendor
C.O. runs the
blocked invoice
report in SAP
C.O. removes the
blocked invoices
from the list and
send paper copy
to Treasury
C.O. works to
resolve the issues
with the Invoices
Agency
Comptroller Office
Page 1
C.O. images the
invoices
Agency assists
C.O. in invoice
issue resolution
No
Treasury
Vendor
Vendor assists
Agency & C.O. in
Invoice issue
resolution
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Is Treasury
Audit result OK
?
Treasury starts the
audit process
64
Vendor receives
payment via mail
or ACH
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
CS Funds Commitment Invoice Processing
The following process map portrays the approach for processing funds commitment invoices. These include pre-SAP
documents, PCCD E-grants and other grants. Invoices are paid against the contract, funds commitment and budget in
SAP rather than using a traditional 3-way match.
CS Funds Commitment Invoice Processing
Comptroller Office
No / FC, Budget or any other Issue ?
Types of invoices covered by this
process include pre-SAP documents,
PCCD E-Grant and all grants.
Agency
C.O. receives the
Invoice and audits
it v/s Contract, FC
and Budget
C.O. checks
invoice compliance
with procurement
rules & Contract T
& Cs
Is C.O. audit
result OK ?
Yes
Page 2
Yes
Start
Vendor
C.O. contacts
Agency for
resolution either by
phone, email or
return letter
Agency has a
Contract in place
to get services or
goods from
Vendor
Vendor renders
services or goods
to the Agency
Agency receives
services or goods
from Vendor
Does the
Agency
approve & sign
the Invoice ?
Agency assists
C.O. in invoice
issue resolution
No
Contact Vendor for
invoice issue
resolution
Agency reviews
the Invoice against
the Contract
Vendor sends
invoices to
Agency.
Vendor revises the
invoice if
necessary
65
Vendor resolves
issue with the
invoice
©2006 BearingPoint, Inc.
Central Services Funds Commitment Invoice Processing
C.O. manually
enters invoice into
SAP with the
exception of the
PCCD interface
SAP runs the
validation process
Is the invoice
validated in
SAP?
Yes
SAP generates the
invoice to be sent
to Treasury
SAP is updated
with check #
C.O. does the post
audit process
No
End
PCCD interface into
SAP to generate
automatic XML
(GRANT) invoices
from E Grant system
SAP blocks for either
CRP, $5MM and $25MM
thresholds, one time
vendor or for E Grant
Invoices
C.O. tries to
resolve the issues
with the Invoices.
C.O. unblocks E
Grant Invoices
manually
C.O. runs the
blocked invoice
report in SAP
Agency
Comptroller Office
Page 1
C.O. removes the
blocked invoices
from the list and
send paper copy
to Treasury
C.O. images the
invoices
Agency assists
C.O. in invoice
issue resolution
Treasury
Vendor
NO
Vendor assists
Agency & C.O. in
Invoice issue
resolution
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Treasury starts the
audit process
Treasury
approves?
66
Vendor receives
payment via mail
or ACH
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
CS Grant Process
The following process map describes the procedures for offering a grant, selecting a grantee and setting up the
encumbrance in SAP for later payment.
Comptroller
Office
Central Services Grant Process
C.O reviews the RFA
for budget, fiscal
responsibility,
availability of funds etc
C.O. assists the
Agency in
preparing the RFA
as required
C.O. approves
the RFA?
No
Agency decides to
offer grant money
for a particular
program
Start
Agency completes
the RFA and
sends it to C.O.
for review
Agency prepares
the RFA
Yes
Agency
RFA
ITB
RFA, ITB, Sole
Source?
Sole Source
Page 2a
Vendor
Agency solicits
telephone bids and
selects vendor
Agency advertises
the RFA
information
through the
Agency website or
other means
Page 2b
67
Vendor obtains the
RFA and prepares
the proposal
©2006 BearingPoint, Inc.
Comptroller Office
Central Services Grant Process
C.O. reviews the
encumbered
document and posts
funds to SAP
From 2a
Agency
Agency receives
the application and
reviews/scores
Agency
determines awards
Agency prepares
the grant
agreement and
sends it to Vendor
for signature
Agency signs the
agreement and
electronically routes
for signature to C.O.,
legal, DGS, OGC and
AG as required
Agreement is
executed with the final
signature, and the
Agency images the
Agreement and enters
purchasing document
with associated
documentation in SAP
Notice of execution and
copy of agreement sent
to vendor who can
proceed with the work
and a copy sent to
Treasury for imaging
and public record
Vendor
END
From 2b
Vendor sends the
grant application to
Agency
Vendor signs the
agreement
68
©2006 BearingPoint, Inc.
4.4.
PPR
The PPR Comptroller is responsible for 14 agencies:
 Agriculture
 Board of Probation and Parole
 Conservation and Natural Resources
 Corrections
 Environmental Protection
 Environmental Hearing Board
 Fish and Boat Commission
 Game Commission
 Milk Marketing Board
 Military and Veterans’ Affairs
 PA Emergency Management Agency (PEMA)
 PA Infrastructure Investment Authority
 Public Utility Commission
 State Police
Activities reviewed include:
 Grant Agreements
 Service Contracts
 SAP and Non-SAP Purchase Orders
Some of the unique aspects of PPR are as follows:
 Types and variety of funding sources that the law restricts with regard to the use of the funding sources.
 Have over 300 field offices that are allowed to bid and purchase.
 Grant guideline restrictions and requirements.
 DEP and DCNR are allowed to do their own construction contracts.
Some of the issues that PPR faces are:
 Goods receipts are not entered in a timely manner by the agencies. There are 500 to 700 blocked invoices
daily requiring 1 FTE to manage. Every day several hundred blocked invoices are released and new invoices
are blocked, implying that some receivers are waiting for the invoices to post before entering goods receipts.
 In SAP, bids cannot be scanned in and attached to the P.O. within the module. The reason is because it will
slow down the system because it fills up server space. As a result, the Comptroller’s Office has to wait for
the supporting documentation before the Comptroller’s Office can approve the P.O.
 A multi-line P.O. in SAP may not match in order, line for line, the invoice that the vendor sends.
 All SAP P.O. invoices should come directly to the Comptroller’s Office. Vendors have established addresses
in their system for an ordering entity and send the invoice to the ordering entity address rather than the
Comptroller address on the P.O. This is a vendor management issue.
 Applying credit memos to SAP P.O. is at times difficult. Each credit memo has to be linked back to the same
agency and SAP fund in order to post correctly to the same SAP Fund as the original expense in both
Treasury and SAP.
 Additional processing time is needed to process an invoice when a line item on the SAP P.O. is split between
multiple account codes and the goods receipts for the line are not entered. The Fiscal Assistant must
manually calculate the dollar amount of the split based on the percentage indicated on the SAP P.O. line.
69
©2006 BearingPoint, Inc.
PPR Competitive or Allocation Formula Grant Agreements
This process map depicts the processing of ‘Competitive or Allocation Formula Grant Agreements.’ In this process,
grantees submit their applications and are ranked based on a scoring system. Grant agreements are submitted to the
Comptroller’s Office for review and approval, and posting of funds commitments.
Competitive or Allocation Formula Grant Agreements - PP & R
Page 2
a
Agency
Start
Send out/post to
web instructions to
grantees with
conditions that
must be met to
qualify for grant
Receive
agreement sent
back from
Comptroller
Does the
grantee meet
the grant award
criteria and/or
ranking?
Review application
Page 2
b
Resolve
outstanding issues
yes
Will application
be used as the
grant
agreement?
Yes
Send to
designated agency
approver
no
No
Page 2
Notify grantee
reason for denial
of grant award
Submit grant
agreement to
grantee
Receive
information/
instruction on
conditions that
must be met to
qualify for grant
Designated
agency approver
signs and sends to
agency attorney
Receive and input
into log/tracking
file
Receive
agreement, sign
and send back to
agency
Submit completed
grant application
Agency
Attorney (Legal)
Grantees
Send to
Comptroller
(mailroom)
Send back to
Agency
70
Review and sign
agreement
©2006 BearingPoint, Inc.
Comptroller
Mailroom
Competitive or Allocation Formula Grant Agreements - PP & R (Page 2)
Page 1
Receive grant from
agency
Date stamp 2nd
copy
Yes
Comptroller (Contract Review Unit)
File FIFO
Retrieve grant
agreement
Page 1
b
Does this grant
use federal
funds?
Verify award
process
Page 3
Post funds
commitment
document
Yes
No
Take grant
agreement to
federal accounting
group for approval
Log into SAP to
verify name,
agreement #,
address,etc
Audit grant
agreement against
current laws, funds
appropriateness,
etc.
Does audit
meet approval
criteria?
No
No
Does resolution
require send
back to
agency?
Contact agency for
resolution
Yes
Yes
Park funds
commitment
document
Federal
Accounting
Page 1
a
Work with agency
to resolve
71
No
Does grant
meet approval
criteria?
Receive grant and
review
©2006 BearingPoint, Inc.
Page 2
Create ME from
template
Send copy to
Vendor Relations
for imaging
Yes
Prepare grant
agreement and
address envelope
Send to mailroom
to be dispatched to
agency
Image contract
and return to
Contract Review
Unit
Receive header
sheet and copy of
fully executed
contract
No
Page 4
Receive grant
agreement from
Contract Review
Unit
File in pending file
Mail package to
agency
Page 4
b
Receive copies of
grant agreements
Agency
Yes
Does
Comptroller
have the final
signature?
Create a folder
with copy of ME
Vendor
Relations
Comptroller
Mailroom
Comptroller (Contract Review
Unit)
Competitive or Allocation Formula Grant Agreements - PP & R (Page 3)
Was the
Comptroller the
last to sign the
grant
agreement?
Yes
Distribute grant
package to
Treasury and
grantee
End
No
Send to Agency
legal
Page 4
a
72
©2006 BearingPoint, Inc.
Agency Legal
Competitive or Allocation Formula Grant Agreements - PP & R (Page 4)
Receive grant
agreement from
Agency
Review for final
signatures needed
No
Return to agency
for distribution
Yes
Send grant to
Attorney General/
General Counsel
Attorney
General/General
Counsel
Page 3
a
Receive grant from
Agency Legal
Review grant
agreement
Sign and return to
agency
Receive fully
executed grant
agreement from
Attorney General/
General Counsel
Agency
Comptroller (Contract Review)
Should grant
agreement be
sent to Attorney
General and
General Counsel?
Receive imaged
contract from
Vendor Relations
Pull original folder
from pending file
Distribute a fully
executed copy to
Comptroller,
Treasury, and
grantee
Receive fully
executed copy of
contract
Send to Vendor
relation for
imaging
Page 3
Page 3
b
File in permanent
file
End
73
©2006 BearingPoint, Inc.
PPR Sole Source Grants
Sole source grants are submitted to the Comptroller for approval. The Comptroller reviews for the validity of the
project, the funding source, and the sole source justification.
Sole Source Grants
Agency
Page 3
a
Federal Accounting
Comptroller (Contract Review)
Start
Receive
agreement sent
back from
Comptroller
Prepare a
'Request for
Approval; of a Sole
Source grant
Receive request
Submit request to
Comptroller Office
No
Does grant
meet approval
criteria?
Yes
74
Prepare grant
agreement and
send to grantee
Receive request
Does the Sole
Source grant
request meet
the criteria?
Review request
Page 3
a
Work with agency
to resolve
Page 2
b
Resolved
outstanding issues
Yes
Page 2
Does the
request involve
federal funds?
No
Yes
Notify agency
reason for denial
of request
Send to Federal
Accounting
Send approved
request for Sole
Source
No
Approve request
Receive request
and review
Initial and send
back to Contract
Review unit
©2006 BearingPoint, Inc.
Comptroller (Contract
Review)
Comptroller
Mailroom
Agency
Attorney
Agency
Grantee
Sole Source Grants (Page 2)
Page 1
Receive grant
agreement
Review agreement
and sign
Sign agreement
Send to Agency
Attorney
Receive
agreement
Review and sign
agreement
Send to
Comptroller Office
Receive grant from
agency
Date stamp 2nd
copy
Send to Contract
Unit
Receive grant
agreement
File FIFO
Retrieve grant
agreement
Send back to
Agency
Audit agreement
for things such as
funding, payment
terms, etc
Page 3
Page 1
b
75
©2006 BearingPoint, Inc.
Sole Source Grants (Page 3)
Yes
Comptroller (Contract Review Unit)
Page 2
Verify approved
sole source to
ensure request,
coding, project,
time period and
dollar amounts
Post funds
commitment
document
Page 4
No
Does this grant
use federal
funds?
Yes
Does audit
meet approval
criteria?
No
Log into SAP to
verify name,
agreement #,
address,etc
Take grant
agreement to
federal accounting
group for approval
Audit grant
agreement against
current laws, funds
appropriateness,
etc.
No
Yes
Does resolution
require send
back to
agency?
Park funds
commitment
document
Federal
Accounting
Page 1
a
Contact agency for
resolution
Work with agency
to resolve
76
No
Does grant
meet approval
criteria?
Receive grant and
review
©2006 BearingPoint, Inc.
Page 3
Create ME
template
Send copy to
Vendor Relations
for imaging
Create a folder
with copy of ME
Yes
Prepare grant and
address envelope
Send to mailroom
to be dispatched to
agency
Image contract
and return to
Contract Review
Unit
Receive header
sheet and copy of
fully executed
contract
No
Page 5
Receive grant
agreement from
Contract Review
Unit
File in pending file
Mail package to
agency
Page 5
b
Receive copies of
grant agreements
Agency
Yes
Does
Comptroller
have the final
signature?
Vendor
Relations
Comptroller
Mailroom
Comptroller (Contract Review
Unit)
Sole Source Grants (Page 4)
Was the
Comptroller the
last to sign the
grant package?
Yes
Distribute grant
package to
Treasury and
grantee
End
No
Send to Agency
legal
Page 5
77
©2006 BearingPoint, Inc.
Agency Legal
Sole Source Grants (Page 5)
Receive grant
agreement from
Agency
Review for final
signatures needed
No
Return to agency
for distribution
Yes
Send to Attorney
General/ General
Counsel
Attorney
General/General
Counsel
Page 4
Receive package
from Agency Legal
Review grant
agreement
Sign and return to
agency
Receive fully
executed grant
from Attorney
General/ General
Counsel
Agency
Comptroller (Contract Review)
Should be sent to
Attorney General
and General
Counsel?
Receive imaged
contract from
Vendor Relations
Pull original folder
from pending file
Distribute a fully
executed copy to
Comptroller,
Treasury, and
grantee
Receive fully
executed copy of
contract
Send to Vendor
relation for
imaging
Page 4
Page 4
b
File in permanent
file
End
78
©2006 BearingPoint, Inc.
PPR DGS SAP P.O. - Commodities (> $20,000)
Depending on the agency, the field can manage the bid process for commodities up to $20,000. Any commodity
purchases greater than $20,000 must go through DGS. There is no limit for decentralized bidding for services not
covered by a DGS statewide service contract.
Start
Prepare requisition
Submit to DGS
Receive requisition
from Agency
Award bid based
on lowest cost
Prepare SAP PO
Prepare ITB
Receive and
review submitted
bids
Approve SAP PO
and submit to
comptroller
Receive ITB
Submit completed
bid to DGS
Research and
resolve issues
Federal
Accounting
DGS Legal
Comptroller
Vendor
DGS
Agency
DGS SAP PO - Commodities (> $20,000)
Research and
resolve issues
No
Receive approved
SAP PO from DGS
Legal
Release approved
SAP PO to vendor
Receive released
SAP PO
End
No
Receive SAP PO
Audit for funding
source, account
coding, and
propriety of
purchase
Send back to DGS
Is this PO
charged to
federal funds?
Should SAP
PO be
approved?
No
Should SAP
PO be
approved?
Yes
Work with agency
to resolve
79
No
Yes
Does PO meet
approval
criteria of
federal grant?
Yes
Send to DGS
Legal
Receive and
review SAP PO
Receive PO and
review
©2006 BearingPoint, Inc.
PPR Agency ITB for Supplies (> $3K < $20K) and Services (> $3K)
The following process map steps through the activities required for a PPR Agency to manage a bid process for goods
or services in accordance with the requirements of the Procurement Field Handbook. The Comptroller does not
review the bid document in advance for an Invitation to Bid. The Agency will request the Comptroller office to
review the bid document in advance if they deem it necessary.
Agency ITB for Supplies (> $3K < $20K) and Services (> $3K)
Send ITB to
Vendors
Receive
completed bid
from vendors
Award PO based
on lowest cost
Prepare SAP PO
Agency
Start
Is PO >$10K?
No
Vendors
Send to
Comptroller
Receive ITB
Comptroller
Receive SAP PO
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Yes
Research and
resolve issues
Agency Approves
Submit completed
bid to Agency
Is this PO
charged to
federal funds?
Yes
Take SAP PO to
federal accounting
group for approval
Research/Review
or send back to
Agency
Page 2
No
Yes
Verify bid amount,
name, and
address on SAP
PO match bid
Verify bid was
awarded to lowest
vendor
Should SAP
PO be
approved?
Federal
Accounting
No
Yes
Work with agency
to resolve
80
No
Does PO meet
approval
criteria of
federal grant?
Receive PO and
review for
compliance with
federal grant
©2006 BearingPoint, Inc.
Agency
Legal
Agency ITB for Supplies (> $3K < $20K) and Services (> $3K) (Page 2)
Yes
Review SAP PO
Should SAP
PO be
approved?
Does SAP PO
include preapproved terms
and conditions?
Yes
No
Send to AG/OGC
Research and
resolve issues
Comptroller
Is ITB >$10K?
Yes
No
No
Does ITB have
pre-approved form
(terms and
conditions)?
No
Send to Agency
Legal
No
Yes
Send to Agency
Yes
Should SAP
PO be
approved?
Receive PO from
Agency Legal
Research and
resolve issues
Receive approved
PO
Vendor
Agency
Attorney General/
General Counsel
Page 1
Release approved
SAP PO to vendor
Receive released
SAP PO
81
End
©2006 BearingPoint, Inc.
PPR Agency SAP P.O. for DGS Contracts
The following process maps show the steps necessary to purchase goods or services off of a DGS contract when a
quote is and is not required. A quote is requested from a DGS supplier. After that supplier submits a quote, the P.O.
can be released to the vendor if it is less than $3K. For all quotes greater than 3K, the Comptroller will review for the
funding source, account coding, and propriety of purchase. After the Comptroller has approved the P.O., it will be
released to the Agency, who will then release to the vendor.
Agency SAP PO for DGS Contracts (Quote Required)
Prepare SAP PO
referencing DGS
contact
Is SAP PO
<$3K?
Agency
Start
No
Submit copy of
quote to
Comptroller
Vendor
Request quote
from DGS supplier
Receive quote
request
Comptroller
Audit PO for
funding source,
account coding
and propriety of
purchase
Federal
Accounting
Release SAP PO
to vendor
Yes
Research and
review any issues
with PO
Receive released
SAP PO
Submit completed
quote to Agency
Does this PO
use federal
funds?
No
Verify vendor
quote matches
SAP PO
Should SAP
PO be
approved?
No
End
Work with Agency
for resolution
Yes
Take PO to federal
accounting group
for approval
Receive PO and
review
Yes
Audit SAP PO
against DGS
contract and
validity period
Does PO meet
approval
criteria of
federal grant?
Yes
Send to Agency
for release
Work with agency
to resolve
No
82
©2006 BearingPoint, Inc.
Agency SAP PO for DGS Contracts (No Quote Required)
Prepare SAP PO
referencing DGS
contact
Is SAP PO
<$3K?
Agency
Start
Release SAP PO
to vendor
Yes
No
Research and
review any issues
with PO
Federal
Accounting
Comptroller
Vendor
Submit to
Comptroller
Receive released
SAP PO
Audit PO for
funding source,
account coding
and propriety of
purchase
Does this PO
use federal
funds?
No
Audit SAP PO
against DGS
contract and
validity period
Work with Agency
for resolution
Yes
Take PO to federal
accounting group
for approval
Receive PO and
review
End
No
Should SAP
PO be
approved?
Yes
Does PO meet
approval
criteria of
federal grant?
No
83
Yes
Send to Agency
for release
Work with agency
to resolve
©2006 BearingPoint, Inc.
PPR Agency Sole Source Procurement for Services (>$3K)
If a good or service cannot be awarded using a competitive process, they are procured as a Sole Source. Sole Source
services are approved by DGS. The Department of General Services pre-approves an agency to enter into a sole
source service agreement. Then the Agency prepares the P.O. and Comptroller’s Office approves the P.O.
DGS
Agency Sole Source Procurement for Services (>$3K)
Receive RFQ with
Sole Source Fact
Sheet and quote
Verify and approve
Sole Source
request
Submit to Agency
Submit RFQ to
DGS with Sole
Source Fact Sheet
and vendor quote
Receive approved
Sole Source
request
Is PO >$10K?
Agency
Prepare SAP PO
Receive SAP PO
Comptroller
Agency approves
No
Send to
Comptroller
Research and
resolve issues
Start
Verify sole source
amount, name,
and address on
SAP PO match
quote
Does PO use
federal funds?
Yes
No
Yes
Work with agency
to resolve
No
Research and
resolve issues
Page 2
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Yes
Take SAP PO to
federal accounting
group for approval
Federal
Accounting
Yes
Does PO meet
approval
criteria of
federal grant?
84
Should SAP
PO be
approved?
Research/review
or send back to
Agency
No
Receive SAP PO
and review
©2006 BearingPoint, Inc.
Agency Sole Source Procurement for Services (>$3K) (Page 2)
Agency Legal
Yes
No
Send to AG/OGC
Yes
Review SAP PO
Comptroller
Is Sole Source
>$10K?
No
Should SAP
PO be
approved?
Research and
resolve issues
Send to Agency
Yes
No
Yes
Does Sole Source
PO have preapproved form
(terms and
conditions)?
No
No
Send to Agency
Legal
Attorney
General/
General
Council
Page 1
Send to Agency
Yes
Should SAP
PO be
approved?
Receive PO from
Agency Legal
Research and
resolve issues
Receive approved
PO
Vendor
Agency
Does sole source
include preapproved terms
and conditions?
Release approved
SAP PO to vendor
Receive released
SAP PO
85
End
©2006 BearingPoint, Inc.
PPR Agency Sole Source Procurement for Supplies (>$3K)
If a good or service cannot be awarded using a competitive process, they are procured as a Sole Source. Sole Source
commodities are approved by the Board of Building and Grounds. Purchase orders are prepared by DGS and
approved by the Agency Comptroller.
Agency
Start
Submit requisition
to DGS and attach
Sole Source Fact
Sheet
DGS
(Commodity
Specialist)
Verify Sole Source
and send quote to
vendor
Obtain DGS
internal approvals
Vendor
Agency Sole Source Procurement for Supplies (>$3K)
Complete quote
and send back to
DGS
Prepare letter to
Board of
Commissioners of
Public Grounds
and Buildings (sole
source board)
Prepare SAP PO
Approve SAP PO
Page 2
Comptroller
Yes
Receive SAP PO
Verify sole source
amount, name,
and address on
SAP PO match
quote
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Does PO use
federal funds?
Federal
Accounting
Take SAP PO to
federal accounting
group for approval
Yes
No
Should SAP
PO be
approved?
86
Research/review
or send back to
Agency
Yes
Does PO meet
approval
criteria for
federal grant?
Receive SAP PO
and review
No
No
Work with agency
to resolve
©2006 BearingPoint, Inc.
Agency Sole Source Procurement for Supplies (>$3K)
Should SAP
PO be
approved?
Yes
Approve SAP PO
No
Work with DGS
Commodity
Specialist
Sole Source
Board
Meet and approve
sole source
Treasury
Research and
resolve issues
Approve SAP PO
DGS
DGS
(Commodity
Specialist)
DGS Legal
Page 1
Approve SAP PO
on behalf of Sole
Source Board
End
87
©2006 BearingPoint, Inc.
PPR Agency RFP for Services
If a contract is awarded using the Request for Proposal (RFP) process, the initial interaction of the Comptroller’s
Office begins with the review of the draft RFP. An RFP is used to obtain services when an agency is seeking a
solution whereby criteria other than costs are used in the evaluation process.
Agency RFP for Services
Agency
Page 2
Start
Agency
Legal
DGS
Submit request to
issue RFP to DGS
for approval
Appoint an RFP
committee
Establish scoring
for RFP
Issue RFP to
vendors
Provide copy of
RFP to DGS MBE/
WBE Office
Receive approval
from Comptroller
and comments
from Comptroller
and Legal
Draft RFP and
submit draft for
review to Legal
and Comptroller
Approve agency to
issue RFP
Receive copy of
RFP from agency
Review draft RFP
and provide
comments
Ensure statement
of work is
complete and is
deliverable based
Comptroller
Review draft RFP
for compliance to
DGS format
Ensure cost
information is tied
to deliverables
Determine if
Comptroller Office
will be a nonvoting member
Provide written
comments and
Comptroller
approval to issue
RFP
88
©2006 BearingPoint, Inc.
Vendors
Agency RFP for Services (Page 2)
Page 1
Send questions to
agency
Will a preproposal
conference be
held?
Issue written
response to all
questions
No
Receive answers
to submitted
questions
RFP Evaluation
Committee
Submit formal
response to RFP
Send SERB
portion to DGS
MBE/WBE office
for scoring
Distribute technical
proposal to RFP
evaluation
committee
Yes
Hold pre-proposal
conference
addressing RFP
and questions
raised
Secure cost
portion until
Technical and
SERB is evaluated
Receive RFP
DGS MBE/
WBE
Agency
Receive questions
from agencies
Review RFP
Receive SERB
portion and score
Page 3
Recommend
award
Review and score
cost portion
89
Open SERB
scores
Send scores to
agency
Receive technical
proposal , evaluate
and score
proposal
©2006 BearingPoint, Inc.
Agency
Agency Head/
Designee
Agency RFP for Services (Page 3)
Page 2
Negotiate contract
Receive RFP
recommendation
Approve award of
RFP
Contact
Comptroller for
decision/approval
of SAP PO or
paper contract
Should SAP
PO/paper
contract be
approved?
Should an SAP
PO or paper
contract be
prepare?
Yes
SAP PO
Forward
supporting
documentation to
Comptroller
Prepare SAP PO
Research and
resolve issue
Paper Contract
Page 5
Comptroller
Review and collaborate
with Agency for a
decision whether SAP
PO or paper contract
should be approved
Audit for funding
source, account
coding and
payment terms
Page 4
Does PO use
federal funds?
No
Yes
Yes
Receive SAP PO
Audit for
compliance with
RFP rules and
procedures (if not
on the compliance
committee
Take SAP PO to
federal accounting
group for approval
Should PO or
contract be
approved?
No
Work with agency
to resolve issue
Federal
Accounting
Yes
Does PO meet
approval
criteria for
federal grant?
Receive SAP PO
and review
90
No
Work with agency
to resolve
©2006 BearingPoint, Inc.
Agency Legal
Agency RFP for Services (Page 4)
Review SAP PO
Page 1
Comptroller
Does SAP PO
include preapproved terms
and conditions?
Yes
No
Should SAP
PO be
approved?
Send to AG/OGC
Research and
resolve issues
Send to Agency
Legal
No
No
Send to Agency
Yes
Should SAP
PO be
approved?
Receive PO from
Agency Legal
Research and
resolve issues
Receive approved
PO
Vendor
Agency
Attorney
General/
General
Counsel
Yes
Release approved
SAP PO to vendor
Receive released
SAP PO
91
End
©2006 BearingPoint, Inc.
PPR Agency RFP for Services (Funds Commitment)
The following process map is consistent with those above with the exception that a paper contract is used. A paper
contract requires a funds commitment document in SAP to be used to encumber funds. The funds commitment
document has slight variations from other encumberance documents.
Contractor
Agency
Agency RFP for Services (Funds Commitment (Page 5)
Page 3
Submit paper
contract to
Contractor for
signature
Receive paper
contract and
forward to Agency
Legal
Receive paper
contract
Sign and send
back to Agency
Approve and
forward paper
contract and
supporting
documentation to
Comptroller
Research and
resolve issues
No
Agency Legal
Send back to
Agency
Yes
Receive and
review paper
contract
Yes
Send to Attorney
General/General
Counsel
Research and
resolve issues
Attorney General/General
Counsel
Should
agreement be
approved?
Page 6
No
Does contract
have preapproved
form?
Send to Agency
Yes
Send back to
Agency Legal
No
Should contract
be approved?
Receive contract
from Agency Legal
92
©2006 BearingPoint, Inc.
Comptroller
Mailroom
Agency RFP for Services (Funds Commitment (Page 6)
Page 5
File FIFO
Receive paper
contract from
Agency
Receive contract
from Comptroller
to send to Agency
Date stamp 2nd
copy
Send original
paper contract to
mailroom for
disbursement to
Agency
Sign and send to
vendor relations
for imaging
Create folder with
copy of ME
Create ME from
template
Comptroller
Yes
Retrieve paper
contract
Audit SAP PO for
funding source,
account coding
and propriety of
purchase
Does
agreement use
federal funds?
Audit RFP rules
and procedures (if
not on RFP
committee)
No
Should
agreement be
approved?
No
Research/review
or send back to
Agency
No
Work with agency
to resolve
Yes
Receive imaged
contract, pull
original folder from
pending file and
file in permanent
file
Vendor
Relations
Yes
Does
agreement
meet approval
criteria of
federal grant?
Receive
agreement and
review
Agency
Federal
Accounting
Take agreement to
federal accounting
group for approval
Receive original
contract from
Comptroller
Receive header
sheet and copy of
fully executed
contract
93
Distribute copies
to Treasury and
Contractor
End
Image contract
and return to
Contract Review
Unit
©2006 BearingPoint, Inc.
PPR Processing SAP P.O. Invoices
In this process, an invoice is sent directly to the Comptroller from the vendor. The invoice is audited for invoice and
baseline date, dollar amounts, etc. Each line item is reviewed and checked for quantity and price.
The major reasons for invoice blocks are incorrect vendor address, overages in pricing, and missing CRP.
Start
Send invoice to
Comptroller
Receive incoming
mail
Date stamp 2nd
copy
The majority of invoices come directly from Vendor
to Comptroller. Many vendors still send SAP PO
invoices to the agency, who will then send them to
the Comptroller
Count invoices in
and sort mail by
invoice date and
type
Delegate work
accordingly
Agency
Comptroller
Vendor
(Pre-Audit
Mailroom Vendor
Relations
Supervisor)
Processing SAP PO Invoices - PPR
Research and
resolve issues
Enter invoice date,
baseline data,
$$amounts, short
and long text
Fiscal Assistant
Receive work from
supervisor
Audit invoice
against vendor
name and address
on the PO
Enter PO number
Is information
correct?
No
Work with agency
for issues
resolution
Yes
Page 2
a
Page 2
Yes
Does the
invoice block
for CRP
Yes
Is invoice
>$10K?
No
No
Send invoices to
General
Accounting with
all blocked
invoices on top
Record document
and invoice # on
invoice
Are errors due to
incorrect
quantities or
unqualified CRP
vendors?
Yes
Yes
94
Is automated
system check
correct?
Input each line
item for
appropriate
sections of PO
quantities
No
Are errors due
to pricing errors
No
No
Yes
©2006 BearingPoint, Inc.
Page 1
Receive invoices
Run report of all
invoices released
to Treasury
Reconcile report
with all physical
invoices
Comptroller
(Contract Unit)
Agency
General
Accounting
Processing SAP PO Invoices - PPR (Page 2)
Page 1
a
Yes
Receive invoice
95
Send list of all
blocked invoices to
AP Accountant
Receive
notification
Submit clearance
certificate
Send email
notification of
blocked CRP to
Agency
Receive clearance
certificate and
unblock invoice
Send hard copy
invoice file to
Treasury and file
extra copy
End
Send to General
Accounting
©2006 BearingPoint, Inc.
PPR Processing Invoices Against Competitive or Allocation Formula Grant Agreements
In this process, the invoices are sent to the agency first. The agency will review the invoice for compliance with
grant activities. The agency then approves the invoice and forwards to the Comptroller for audit and entry.
Grantee
Perform grant
activities and
initiate payment
request
Send approved
invoices to Agency
Review invoice for
compliance with
grant objectives
Sign and approve
invoice
Send to
Comptroller
Receive incoming
mail
Date stamp 2nd
copy
Vendor
Relations
Delegate work to
each employee
(oldest invoice
dates first)
Pre-Auditor
Count invoices in
and sort mail by
invoice date and
type
Comptroller
(Pre-Audit
Supervisor )
Comptroller
Mailroom
Start
Agency
Processing Invoices Against Competitive or Allocation Formula Grant Agreements
Audit invoice
against all imaged
document
information
Post expenditures on
invoice against the
budgetary categories
on the Excel
spreadsheet, if
necessary
Choose
appropriate
funding line on
funds commitment
document
Page 2
96
©2006 BearingPoint, Inc.
Processing Invoices Against Competitive or Allocation Formula Grant Agreements (Page 2)
Comptroller
(Contract Unit)
General
Accounting
Agency
Pre-Auditor
Page 1
Are there any
issues with
audit?
No
Process invoice in
SAP Finance
Is invoice
>$10K?
No
Send invoices to
General Accounting
at end of each day
No
Yes
Yes
Resolve
outstanding issues
with agency
Does the
invoice block
for CRP?
Research and
resolve issues
Receive invoices
Receive
notification
Yes
Run report of all
invoices released
to Treasury
Reconcile report
with all physical
invoices
Submit clearance
certificate
Send list of all
blocked invoices to
AP Accountant
Send email
notification of
blocked CRP to
Agency
Receive invoice
97
Send hard copy
invoice file to
Treasury and file
extra copy
Receive clearance
certificate
End
Send to General
Accounting
©2006 BearingPoint, Inc.
4.4.1. DOC
The DOC protects the public by confining persons committed to their custody in safe, secure facilities and provides
opportunities for inmates to acquire skills and values for becoming productive, law abiding citizens, while still
respecting the rights of crime victims. The DOC administers three general fund appropriations: medical, education,
and all other expenses. The top five categories of purchases are:
 Food
 Maintenance materials
 Medical services
 Clothing; and
 Housekeeping supplies.
Food, in particular, creates a significant amount of work during the req-to-check process. Food inventories must be
purchased, received, inventoried and paid at a SKU level. Purchases are typically made through SAP on POs,
thought DOC still maintains a legacy requisition system. The institution warehouse manages the delivery and enters
the receipts directly into SAP. Food purchases are currently under state contracts, but service levels from the current
vendors have been poor and each facility may soon be able to contract with its own vendor of choice.
Institutional purchases begin with requisitions within the institution. Those requests are forwarded to the business
office, which has procurement staff trained to process the request in accordance with the Procurement Field
Handbook, including entering the request/PO into SAP and/or managing the bid process. After the goods are
delivered or services are performed, the vendor typically sends an invoice to the facility. The business office invoice
reconciler ensures that all supporting documentation for invoice processing is available (including documentation of
receipt) and provides to those handling procurement for entry receipt into SAP. The invoice and supporting
documentation is then bundled and sent to the Comptroller.
The req-to-check process within DOC is not complicated significantly by grants. In this sense, the processes are
more consistent with commercial operations than many of the other agencies where grants make up a significant
portion of the payments made.
98
©2006 BearingPoint, Inc.
4.5.
LCB
The LCB manages the beverage alcohol industry in Pennsylvania, which includes all licensing and retailing as well as
providing an educational program on the effects of alcohol. The LCB operates 645 retail locations and 3 distribution
centers and is an independent board that is not required to follow the fiscal or administrative codes. The LCB
procures all items necessary to run its liquor distribution and retailing business, with its two primary purchases being
liquor and the leasing of retail space. LCB is subject to the participating in statewide contracts for items such as
office supplies. Activities addressed include:
 Liquor Quote Process
 Contracts Process – Non-Liquor
 Funds Commitments Process - Grants
 Funds Commitment Process - Rent
 Funds Commitment Process - Non-Rent
 Stock Process
 Special Liquor Order Process
LCB Liquor Quote Process
The following process map steps through the process of obtaining and accepting quotes for liquor purchases. This
process is used to establish contracts with liquor suppliers for the purchase of inventory for re-sale.
Comptroller
Office
LCB Liquor Quote Process
Agency receives
quotes and
reviews them
Agency
approves or
disapproves
the quote
Yes
Agency sends the
quotes to Board
for review and
approval
Yes
Agency receives
the approved
quotes, prepares
POs as needed
End
Agency
No
Agency negotiates
the price with
Vendor
Vendor
Board
approves or
disapproves
the quotes
Board reviews the
quotes
Start
Vendor revises the
prices and sends
new quotes to
Agency
No
Vendor sends the
renegotiated rates
with the quotes
99
©2006 BearingPoint, Inc.
LCB Contracts Process – Non-Liquor PO
The process flow below illustrates the process for establishing non-liquor contracts from initiation of the purchasing
process, setup of the purchase order, invoice receipt and payment. Non-liquor contracts are for services such as
consulting.
Comptroller
Office
LCB Contracts Process – Non-Liquor
CO approves
PO?
Agency
determines need
for service and
forwards request
to Procurment
Legal
Agency
Start
Procurement
awards contracts
based on
purchasing
guidelines.
Procurement
creates a PO in
SAP
Page 2
PO is forwarded to
vendor
Yes
Vendor
DGS
No
Yes
C.O. enters
invoice into SAP
and initiates
payment process
Services are
performed as
stipulated in
contract
Vendor sends
invoices to C.O.
Delegate back
to Agency?
No
DGS leads RFP process – steps
consistent with those in the delegation
process, though the roles of the
agency and Procurement would be
reversed
100
©2006 BearingPoint, Inc.
LCB Contracts Process – Non-Liquor
Does the
invoice match
in SAP
SAP is updated
with check #
Yes
C.O. run the
blocked invoice
report in SAP
C.O. unblocks the
invoice
Agency
Agency reviews
blocks and
resolves with
vendor, if needed
Agency reviews
the corrected
invoice and returns
to C.O.
Vendor sends
corrected invoice if
needed
Treasury
End
No
Vendor
Comptroller Office
Page 1
SAP blocks the
Invoice
C.O. reviews
invoice and
provides answer to
Treasury
All cleared
invoices are sent
to Treasury
C.O. images the
invoices
No
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the
payment process
Vendor receives
payment via mail
or ACH
Is Treasury
Audit result OK
?
Treasury starts the
audit process
101
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
LCB Funds Commitment Process - Grants
The following process flow represents the Agency grants process where payments are made from SAP using Funds
Commitment. Grants are awarded for programs such as Alcohol Education.
Comptroller
Office
LCB Funds Commitment Process – Grants
CO approves
document/
contract?
A paper document
is prepared and
forwarded for
approval
No
Document/contract
is forwarded to
grantee
C.O. approves
funds commitment
and posts funds
Services are
performed as
stipulated in the
contract
Yes
Alcohol Ed
approves?
No
Grantee sends
Invoices to Alcohol
Education
Treasury
Grantee signs
document
Page 2
Alcohol Education
creates a funds
commitment and
forwards to
Agency Budget
Office for approval
Procurement signs
document and
routes for proper
approvals
Alcohol Education
awards contracts
based on grant
guidelines.
Grantee
Agency
Start
Agency
determines need
for grant program
and solicits
awardees
Yes
102
©2006 BearingPoint, Inc.
LCB Funds Commitment Process – Grants
Does the
invoice block
for CRP?
C.O. images the
invoices
Yes
After close of
accounting period,
legacy is updated
with payment
SAP is reconciled
with legacy and
journal entries
prepared for
period close
SAP is updated
with check #
End
Yes
C.O. reviews the
invoice against the
grant and enters
into SAP
C.O. unblocks the
invoice
All cleared
invoices are sent
to Treasury
C.O. reviews
invoice and
provides answer to
Treasury
Alcohol Ed
resolves CRP
issues
Grantee
Agency
Comptroller Office
Page 1
Grantee receives
payment via mail
or ACH
Treasury
No
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the audit
process
Is Treasury
Audit result OK
?
103
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
LCB Funds Commitment Process - Rent
The agency has about 640 locations for which the lease payments are made out of SAP using Funds Commitment.
There is a pilot project underway to pay at least 10 store lease payments for September using Invoice Planning in
SAP. Typically these are 5 to 10 year leases that are set up in SAP.
C.O. approves
lease request and
certifies the funds
Start
Agency
determines need
for lease
Agency develops
lease option and
makes
recommendation
to Board
Board approves
Real Estate
prepares a lease
request and
forwards for
approval
Real Estate
forwards request
to DGS for
approval and lease
preparation
Real Estate
forwards to Lessor
for signature
DGS gets required
approval and
returns to Agency
Real Estate
Lessor
DGS
Agency
Comptroller
Office
LCB Funds Commitment Process - Rent
Lessor signs lease
Treasury
Page 2
104
©2006 BearingPoint, Inc.
LCB Funds Commitment Process - Rent
Comptroller Office
Funds
commitment
electronically
routed to C.O. for
approval
C.O. creates
general invoice to
pay supplemental
rent amounts
C.O. adds lease to
the recurring rent
file for monthly
processing
The recurring
payment file runs
monthly and
creates SAP
invoices
Building is leased
and rents incurred
Invoices Block
for CRP?
No
C.O. resolves
redline issues
Page 2
Real Estate
forwards copies of
the lease to the
appropriate parties
Yes
Treasury
Legacy is updated
with payment
information
SAP and Legacy
system are
reconciled and
journal entries
created to close
period
End
Payment file with
cleared invoices
sent to Treasury
along with hard
copies
Real Estate
creates funds
commitments and
forwards to
Agency Budget
Office for Approval
Real Estate
resolves
outstanding CRP
issues
Lessor
Agency
SAP is updated
with check #
Lessor receives
payment via mail
or ACH
Treasury receives
payment file and
initiates audit
Treasury Audit
OK
105
Yes
Treasury send
check/ACH to
Lessor
Treasury sends
payment
information to SAP
©2006 BearingPoint, Inc.
LCB Funds Commitment Process – Non-Rent
The following process flow depicts the non-rent funds commitment process. Utilities, trash handling and some
commodities fall under these contracts.
Comptroller
Office
LCB Funds Commitment Process – Non-Rent
CO approves
document/
contract?
A paper document
is prepared and
forwarded for
approval
No
Document/contract
is forwarded to
vendor
Procurement
awards contracts
based on
purchasing
guidelines.
C.O. receives
invoices and
sends for approval
if required
Page 2
Procurement
creates a funds
commitment and
forwards to
Agency Budget
Office for approval
Procurement signs
document and
routes for proper
approvals
DGS
Vendor
Legal
Agency
Start
Agency
determines need
for service and
forwards request
to Procurment
Yes
C.O. approves
funds commitment
and posts funds
Vendor signs
document
Yes
Services are
performed as
stipulated in the
contract
Vendor sends
Invoices to C.O.
Delegate back
to Agency?
No
DGS leads RFP process – steps
consistent with those in the delegation
process, though the roles of the
agency and Procurement would be
reversed
106
©2006 BearingPoint, Inc.
LCB Funds Commitment Process – Non-Rent
Comptroller Office
Does the
invoice block
for CRP?
C.O. reviews the
invoice against the
document/contract
and enters into
SAP
Agency
After close of
accounting period,
legacy is updated
with payment
SAP is reconciled
with legacy and
journal entries
prepared for
period close
SAP is updated
with check #
End
Yes
C.O. unblocks the
invoice
All cleared
invoices are sent
to Treasury
C.O. reviews
invoice and
provides answer to
Treasury
Procurement
resolves CRP
issues
Page 1
Vendor
C.O. images the
invoices
Yes
Agency approves
invoice and returns
to C.O. after
resolving issues, if
any
Vendor corrects
invoices as
needed
Vendor receives
payment via mail
or ACH
Treasury
No
Treasury receives
the paper invoice
from C.O. and
payment file from
SAP
Treasury images
the invoices and
initiates the audit
process
Is Treasury
Audit result OK
?
107
Yes
Treasury prepares
the check / ACH
and sends it to
Vendor
Treasury sends
check and
payment
information to SAP
©2006 BearingPoint, Inc.
LCB Stock Purchase Process
The process flow below represents the steps involved in making purchases in liquor for resale. Liquor purchases may
only be made from licensed vendors. Vendor license numbers are created in the licensing system, but are held as a
part of the vendor master record.
Comptroller
Office
LCB Stock Purchase Process
C.O. receives the
invoice from the
mail room
C.O. does a
manual 3 way
matching
Yes
Page 2
No
Agency prepares a
requisition in
legacy system and
it routes via
workflow for
approvals
Upon approval,
PO is generated
and sent to the
Vendor
Yes
Agency
resolves the
issue
Agency
Start
Agency gets a
recommendation
from demand
planning sysytem
Manugistics
Vendor fulfills the
PO, Sends the
goods to
warehouse of
Agency
Vendor sends the
Invoice to C.O.
Vendor resolves
issue
Warehouse
Treasury
Vendor
No
Warehouse
receives the Stock
108
Warehouse enter
Goods Receipts
into the legacy
system
©2006 BearingPoint, Inc.
Page 2
C.O. consolidates
invoices by vendor
and enters invoice
into SAP and
initiates the
payment process
C.O. sends paper
copy of invoice to
Treasury
C.O. resolves
issues and
resubmits to
Treasury
Agency
Comptroller
Office
LCB Stock Purchase Process
SAP is updated
with check #
End
Vendor
No
Vendor receives
payment via mail
or ACH
Treasury receives
payment file and
initiates audit
Treasury receives
payment file and
initiates audit
Treasury Audit
OK
Yes
Treasury send
check to Vendor
Treasury sends
payment
information to SAP
Warehouse
Treasury
Legacy is updated
with payment
information
109
©2006 BearingPoint, Inc.
LCB Special Liquor Order Process
A special liquor order (SLO) is placed either by an individual through a retail location (5% of the transactions) or by
a business (95% of the time). In both cases, the purchaser is ordering an item that is not normally carried in stock and
must be special ordered from the vendors. For individual orders, the retail location enters the SLO into SPOS and
enters the goods receipt into the Point of Sale (POS) system, which automatically updates SPOS. Most business
orders are the result of sales efforts by vendors. As a result, the vendor enters the order directly into SPOS on behalf
of the business.
Comptroller
Office
LCB Special Liquor Order Process
Agency
POs rolled up by
vendor and C.O.
runs a file with
receipts 20 days or
older to generate
XML invoices
Page 2
Agency reviews
the PO and sends
it to the Vendor
Store
Treasury
Vendor
Vendor fulfills the
PO and sends the
goods to stores of
Agency
Start
Store personnel or
liquor salesman
identify a need for
specialty liquor
order
Store personnel or
liquor salesman
enter PO into
SPOS system
Stores receives
the stock
110
Stores enter goods
receipts into the
POS system,
which interfaces w/
SPOS
©2006 BearingPoint, Inc.
Page 2
Invoices are sent
to IES, which
generates SAP
invoice number
and provides back
to SPOS
SPOS generates a
document that
serves as the
remittance and
back-up, which is
sent to Treasury
C.O. resolves
issues with the
invoices
Agency
Comptroller
Office
Special Liquor Order Process
SAP is updated
with check #
End
No
Vendor
Treasury
SPOS reconciled
w/SAP
Vendor receives
payment via mail
or ACH
Treasury receives
payment file and
initiates audit
111
Treasury Audit
OK
Yes
Treasury send
check to Vendor
Treasury sends
payment
information to SAP
©2006 BearingPoint, Inc.
4.6.
LECS
The LECS Comptroller Office serves the agencies for Labor and Industry, Education and Community and Economic
Development. The LECS Comptroller Office has some unique characteristics such as:
 Federal divisions handle the entire requisition to payment (check) process
 Four separate divisions making payments (decentralized) for the purpose of efficiency and customer service
 The normal requisition to payment process is a small part of daily activities as grants make up a significant
portion of the work effort
 FMS – Financial Management System – sub-recipients submit info online and it interfaces with SAP
Some of the issues that LECS faces are:
 Problems with vendors/agencies reporting their goods receipts (GR/IR)
 Information in the Vendor Management System does not match the invoice
4.6.1. PDE
The Pennsylvania Department of Education leads and serves the educational community to enable each individual to
grow into an inspired, productive, fulfilled, lifelong learner. Activities reviewed include:
 Grant Payments Process ECS Federal in Fresh Fruits and Vegetables Program
 Grant Payments – Workforce Investment, Vocational Rehabilitation, Disability Determination
 School Finance – Rents, Retirement, Unipay, Approved Private Schools
PDE supports approximately 501 school districts. A significant amount of the funds are strictly state funds and are
used to pay school districts. PDE has its own Text Book and Materials system which pays for the books of private
schools instead of giving them funds to do so. All financial information is calculated and maintained on a website
and uses an interface for reporting purposes.
LECS - ECS Federal
The following process maps are related to programs that make payments through both FAI and CNPEARS. These
federal monies are used to support programs such as:
 Fresh Fruits and Vegetables
 Summerfood
 National School Lunch
 Child and Adult Care
The Fresh Fruits and Vegetables program, though currently processed through FAI, will be converting over to
processing through CNPEARS. The highest volume of activity occurs in the ECS Federal group.
112
©2006 BearingPoint, Inc.
ECS Federal Grants – Fresh Fruits and Vegetables Program
BMIS
Comptroller (Accountant)
Agency
LECS - ECS Federal Grants - Fresh Fruits and Vegetables Program (entered into FAI)
Start
Send invoice to
Comptroller
Receive hard copy
invoice from
agency
Log into FAI
Create document
in FAI
Enter expenditure
information to
attach to each
related invoice
Eliminate liquidation
amounts to eliminate
SAP from searching
for commitment
documents to pull from
Run ICS balance
verification
Validate all
amounts against
physical invoices
Pull up document
summary report
and print
Verify there is
budget available
by running budget
report in SAP
Create ICS export
file
Reconcile against
balance
verification sheet
Transmit ICS file
to BMIS group for
coding transfer
Send courtesy
email to BMIS
group of sent file
Print summary
report for
reconciliation with
VTs on file
Release electronic
FAI documents to
Treasury
Print hard copy VT
documents
Courier hardcopies
to Treasury
Receive file and
email from
Comptroller
(Accountant)
Validate summary
report amount with
all document
invoices
No
Search payee to
input new invoice
into document
Are there any
outstanding
invoices?
Yes
Page 2
Transfer legacy
ICS coding to SAP
coding (VT
document)
LECS - ECS Federal Grants - Fresh Fruits and Vegetables Program (entered into FAI)
Receive electronic
FAI file from
Comptroller
Receive summary
report and VT
Image invoice
Audit Process
End
Release payment
Treasury
Page 1
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©2006 BearingPoint, Inc.
ECS Federal – Grants Processed through CNPEARS
BMIS
Comptroller (Accountant)
Agency (Division of Food and
Nutrition)
Grantee
LECS - ECS Federal - Grants Processed through CNPEARS (Summerfood, National School Lunch, Child and Adult Care)
Start
Key grant
application request
information into
web based
application
Submit
electronically
Receive
notification of
denial or award of
grant
Receive grant
request
submission
Review grant
request and award
or deny grant
application
Notify grantee of of
reason for denial
of award or that
award has been
granted
Batch process all web based
information compiled from web
based application submissions for
establishment of reimbursements
Send Comptroller
compiled file
Validate/audit
information to
ensure information
is as accurate as
possible
Receive
notification of
errors
Correct or extract
bad data for
continuity
Perform validation
check to kick out
any errors
Were any
errors
detected?
Yes
Contact agency for
resolution
Upload web-based
info into FAI file
Send FAI file w/
notification email
to BMIS group for
coding transfer
No
Print VT summary
report for
reconciliation with
hard copy VTs on
file
Receive file and
email notification
of file
Print out VT
document, sign,
and send to
Treasury
Release FAI
documentation to
Treasury
Page 2
Transfer legacy
ICS coding to SAP
coding for VT
document
LECS - ECS Federal - Grants Processed through CNPEARS (Summerfood, National School Lunch, Child and Adult Care)
Receive electronic
FAI file from
Comptroller
Receive summary
report and VT
Image invoice
Audit Process
End
Release payment
Treasury
Page 1
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School Finance
School Finance has several processes in the requisition to payment cycle. All transactions processed in the LEAPs
system are VTs that will eventually go through FAI. All of School Finance’s appropriations are encumbered in SAP.
The major processes included in this review are:
 Rental Authority and sinking Fund Program (Application Process)
 Retirement (LEAPS)
 Unipay
 Approved Private Schools (4008 Process)
 APS School District Recovery Program
 FAI Retirement VT Process
School Finance – Rental Authority and Sinking Fund Program
Initiate building
project
Start
Education
Each School
District
LECS - School Finance - Rental Authority and Sinking Fund Program (Application Process)
Pull PlanCon H, J,
or K for approval
Verify amounts,
signatures,
schedule and all
info on application
is correct
Seek bond
approval with PDE
Make bond
payment to bank
Approve the
PlanCon from
steps A-K and
notify schools and
Comptroller
See LECS
PlanCon
process
Is all
information
correct?
No
Send application
for reimbursement
to Comptroller
Are the
changes
minor?
Research and
resolve errors
Yes
Receive letters
explaining errors
from Comptroller
Fax errors to
school for
correction to their
copy and
Comptroller copy
Comptroller
Yes
Process for
payment through
LEAPS
Send applications
with cover letters
and explanation of
errors to School
Districts
Input information
into LEAPS
system
No
Send to Unipay
lead
Page 2
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©2006 BearingPoint, Inc.
Comptroller (Unipay Lead)
LECS - School Finance - Rental Authority and Sinking Fund Program (Application Process) (Page 2)
Page 1
Load LEAPS info
directly into FAI
Monthly, run
reports for Unipay
Print rents report
Make any
necessary
adjustments
Send out Penn
Link letters
End
Monthly, reconcile
Education records
with current
records on hand
School Accounting - Retirement
School Entities
Start
Input salary info to
PSERS database
PSERS
LECS - School Accounting - Retirement (LEAPS)
Receive salary
data from schools
Generate quarterly
report and yearly
reconciliation files
Quarterly/Yearly,
receive 2 report
files from PSERS
(in the same
month)
Upload records
into LEAPS
Send to
Comptroller
Are there precalculation
errors?
Yes
Contact PSERS
point of contact for
resolution
PSERS
Are the error
program
related or
PSERS
related?
Program
Contact
programmer for
resolution
Are there
subsidy holds?
Yes
Log into LEAPS
and input
information
No
Comptroller
Yes
Perform post calculation by checking
calculation based on # of records,
holds, and audit summary report.
Run reports and verified report #s
(ex. quarterly salaries outstanding,
holds, etc.)
Are there postcalculation
errors?
No
No
End
No
Is this an
annual
reconciliation?
Generate files in
LEAPS including
AUN# and
payment amounts
Hold payment until
subsidy holds are
lifted
Yes
Distribute
information to
PSERS
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©2006 BearingPoint, Inc.
School Finance - Unipay
LECS - School Finance - Unipay (Including monthly APS payments)
Manually, check all
totals and line item
deductions from
payments sent
from PDE
Receive a hard
copy memo and
Excel package
from Education
Retrieve file from
FTP, use Excel file
from Education or
create manual
spreadsheet
Audit hardcopy for
signatures, coding,
calculation, rates,
etc
Audit Excel file for
each AUN number
Go into Excel file
to format AUN#
and amounts
Import file from
Education into FAI
Combine
payments by year
and appropriation
Check SAP and
appropriations
spreadsheet for
funds availability
Release electronic
FAI documents to
Treasury
Print hard copy VT
documents and
signed memo
Courier hard
copies to Treasury
Image hard copy
packet after 2
years
File hard copy
packet of
everything for 2
years
Send out Penn
Links a week
before scheduled
payment
Comptroller
Start
Transmit ICS file
to BMIS group for
coding transfer
Print summary
report for
reconciliation with
VTs on file
BMIS
End
Receive file and
email from
Comptroller
(Accountant)
Transfer legacy
ICS coding to SAP
coding (VT
document)
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©2006 BearingPoint, Inc.
School Finance – APS – 4008 Process
LECS - School Finance - Approved Private Schools (APS) - 4008 Process
Verify information
on 4008 is
accurate
Receive PDE4008
Is information
correct?
APS
Start
Complete forms
PDE forms 4010
(new student) and
4011 (change of
student)
Yes
School Districts
Send forms to
each school
district
Send to
Comptroller
Note corrected
information on
4008
Yes
Receive PDE
forms
Verify information
on forms is
accurate
Roll LEAPS
system database
Load entry age file
Receive forms
Verify information
on forms is
accurate
PDE
Comptroller
No
Send back to
school districts
Is information
correct?
No
Research issue
and resolve
At beginning of
new fiscal year,
send out PDE4008 (list of all
APS attendees)
Is information
correct?
Yes
Send to PDE
Receive 4008
forms from APS
Page 2
Enter information
from form into
LEAPS system
No
LECS - School Finance - Approved Private Schools (APS) - 4008 Process
Page 1
Reconcile PDE4008 with LEAP
system
Are there any
discrepancies?
Yes
School Districts
Comptroller
No
Work with PDE to
resolve variances
In January, send school
districts an attendance
verification letter of
students in particular
districts attending an
APS
Receive
verification form
118
End
©2006 BearingPoint, Inc.
School Finance – APS – School District Recovery Program
LECS - School Finance - Approved Private Schools (APS) - School District Recovery Program
Start
Perform
preliminary ADM
calculation
Load preliminary
tuition rate file (Jan
or Feb)
Process
preliminary
deductions
Borrow from 'Basic
Ed' funds before
Unipay is due
Wait until final
tuition rates have
all been completed
and issued
Process
Adjustment
Create deduction
file
Mail to school
district
File copy of report
Receive deduction
file in inbox
Yes
Have final
tuition rates
been issued?
Generate reports
for distribution
Compare file to
deduction report
Comptroller
Lock PDE out of
the database
No
Receive deduction
file
Payback basic ed
by transferring
funds (year-end
mailing)
Deduct from 'Basic
Ed' funding
Calculate 'Basic
Ed' payments
School Districts
Child
Accounting
Email deduction
file to Barbara
Nelson (child
accounting)
Send deduction
reports notifying
school districts of
deduction
Send 'Basic Ed' file
to Comptroller
Receive reports
119
End
©2006 BearingPoint, Inc.
School Finance – FAI Retirement VT Process
LECS - School Finance - FAI Retirement VT Process
Comptroller
Start
Import LEAPS
retirement
payment file into
FAI
Check SAP and
appropriations
spreadsheet for
funds availability
Print summary
report for
reconciliation with
VTs on file
Send out Penn
Links a week
before scheduled
payment
BMIS
Transmit ICS file
to BMIS group for
coding transfer
Receive file and
email from
Comptroller
(Accountant)
Release electronic
FAI documents to
Treasury
File hard copy
packet of
everything for 2
years
Print hard copy VT
documents and
signed memo
Courier hardcopies
to Treasury
Image hard copy
packet after 2
years
End
Transfer legacy
ICS coding to SAP
coding (VT
document)
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4.6.2. LECS Special Accounting
The LECS Special Accounting group works directly with the Department of Community and Economic Development
to approve and process loans for initiatives that improve the economic state of the Commonwealth. Approvals are
made by a board that meets monthly.
Activities reviewed include:
 Special Accounting – Non-PIDA Loans
 Special Accounting – PIDA Loans
These two activities require the Special Accounting organization to make unique payments. This group deals strictly
with loans and check requests drawing from the loans. Loan Accounting disburses between 20 and 25 loans per
month in SAP. Since these checks are generally held for a loan closing date, the checks are post-dated. For example,
a check may be issued on June 15th with a check date of June 20th. As part of this process, all loan documentation
must be reviewed before the above is entered into SAP. HGAC Accounting processes approximately 100 invoices
per month into SAP. After the invoices are processed, they are sent to General Accounting and forwarded to
Treasury.
Special Accounting – Non-PIDA Loans
Borrower
LECS - Special Accounting - Non-PIDA Loans
Start
Request loan
Submit completed
grant application
Send terms and
conditions to
borrower
Sign and return
agreement to
DCED
Send notification
as to reason for
denial of the loan
DCED
Yes
Receive and
review loan
request
Receive signed loan
application and send
funds commitment
document to encumber
funds to Comptroller
Is loan request
approved?
Comptroller (Accountant)
No
Receive 3 copies
from department
Print loan # on
each packet
Pull commitment
document
Verify 'loan note' for
document #, address,
payee, schedule date
(check date), amount,
interest rate, term, etc
Calculate
amortization
schedule in Loan
Application system
Print out 3 copies
of amortization
schedule (1 for
Comptroller, 2 for
files)
Log into SAP
Insert vendor #,
dates, doc #,
amounts, etc
Enter Loan # in
'notes' field
Enter payment method, enter a '1' for
physical check to be set to Comptroller
office, information in payment terms,
GL accounting info, doc amt., cost
center, fund #, etc.
Record document
# on each package
Fill out program
checklist
Send Treasury
and Comptroller
loan package to
document review
and control
Log into log list
files (Excel
spreadsheet)
Send request note
to Treasury to
release check by
request date
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Page 1
Receive request
from Comptroller
of check release
date request
Print document
print screen
Receive check and
amortization
schedule from
Comptroller
accountant
Send check to
Comptroller on
check requested
date
Receive check
from Treasury
Input check # and
warrant # from
check into loan log
list
Send check to
legal with a copy
of the loan
amortization
schedule
End
Transfer all information
from Loan Application
system to Loan Master file
in the disbursement month
Send letter to
borrower with
amortization schedule
before 1st payment
due date
Perform closing on
loan
Comptroller
(Supervisor)
Legal
Comptroller (Accountant)
Treasury
LECS - Special Accounting - Non-PIDA Loans
Send bill to
borrower before
1st payment due
date
122
©2006 BearingPoint, Inc.
Special Accounting – PIDA Loans
Start
Once a month,
conduct board
meetings to
discuss loan
requests
Receive loan
application
approval list
Create hardcopy
ME sheet
Post funds
commitment
document in SAP
File loan
application
Receive
encumbrance
worksheet from
Fiscal Asst
Wachovia
Comptroller
(Accountant)
A list of loans are
discussed,
approved/denied,
and the list is sent
to Comptroller
Calculate 1%
commitment fee
and notify
borrower
Input info into loan
log spreadsheet
Receive check
request
Receive report and
reconcile with
report from Loan
Application system
End
Borrower
Comptroller (Fiscal Asst.)
PIDA Board
Meeting
Members
LECS - Special Accounting - PIDA Loans
Send commitment
fee
Receive calculated
commitment fee
notification
Liquidate
encumbrance in
SAP
File package
Input all ME
information into
Loan Application
system for preencumbrance
Input information
and amounts into
'Req Log'
spreadsheet
Fill out hard copy
encumbrance
sheet
At the end of the month,
send encumbrance
sheet to Accountant for
the processing of check
request
Fax requisition
request to
Wachovia
Send a report of all
requisitions
ordered
4.6.2.1. DCED
DCED fosters opportunities for businesses and communities to succeed and thrive in a global economy. DCED
supports grant programs used to stimulate business and economic development in the community, as well as loan
programs. Funding is a combination of both Federal and state sources. There are frequent requests to expedite
payments related to political initiatives.
DCED falls under the LECS Comptroller. DCED has developed its own grant/loan single application system that has
created an automated, efficient way to submit, review, and approve grants and loans.
There are several issues that DCED faces in their day to day activities. First are changes or amendments to budgets.
Each time there is an amendment to the budget Treasury requires the invoice to sit in queue until the entire approval
process occurs for the amended document. The invoice therefore may be outstanding for more than 30 days after
which it still has to go through the Comptroller, vendor, program office, legal office, and budget and fiscal office
prior to payment. There used to be a 10% variance that was allowed, however, this has ceased to exist.
DCED made a request to obtain access to imaged invoices and agreements. This may work itself out through the
initiative that is currently in progress to have access to imaged documents through a URL and eventually move to a
123
©2006 BearingPoint, Inc.
centralized imaging system. However, they receive requests for the release of certain documents based on the ‘Right
to Know’ mandate, which allows access to documents they may not be able to find in hard copy.
One of the other issues that DCED faces is operational. The LECS Comptroller’s Office has found that when they
send the agency’s invoices back to them, as a whole, they have been much more diligent in entering their goods
receipts. Unfortunately, much of DCED’s invoice processing work has become redundant because many of the
invoices sent from Comptroller that require investigation have already had goods receipt entered.
Applicant
DCED - Grant and Loan Programs
Start
Page 2
a
Submit single
application
No
Send applicant
rejection letter
Has an account
manager been
pre-assigned?
No
Search by
company name/
FEIN to assign
account manager
Send to Office
Director
No
Can account
manager be
assigned by
customer
service center?
Is information
valid?
Validate single
application data
Receive
application
Receive rejection
letter
End
Yes
Customer Service Center
No
Yes
Create 'Single App
Form' with all info,
scanned
narratives, budget
attachments, and
auto control #
Is Single App
complete and
correctly
submitted?
Yes
Check for preassigned account
manager
Select office
director from list
Yes
Send to Account
Manager
Page 2
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©2006 BearingPoint, Inc.
Deputy
Project Team
Account Manager
Office Director
DCED - Grant and Loan Programs (Page 2)
Yes
Page 1
Receive and
review application
Review and select
account manager
from list
Is application
eligible under
any programs?
Send to account
manager
Send to Account
Manager
No
Send to Deputy
Page 1
a
Send applicant
rejection letter
No
Yes
Receive email
notification
Is program
funding
approved?
Receive funding
package
No
Review application
and identify
potential funding
program team
members
Send email
notification to
Project Team
Review application
and identify
funding package
Send to account
manager
Is the funding
recommended?
Yes
Send email to
Office Director
No
Send to Account
Manager
Page 3
125
Should funding
package be
approved?
Review funding
package
©2006 BearingPoint, Inc.
DCED - Grant and Loan Programs (Page 3)
Page 3
Communicate with
Press and
Legislative offices
Send (optional)
letter of intent to
applicant
Notify funding
program office to
proceed
Is funding a
loan?
Yes
Page 4
Loans
Yes
Page 5
Grants
Account Manager
No
Email notification
of commitment to
applicant
Is funding a
grant?
No
Applicant
Press and
Legislative
Offices
Inform account
manager funding
program is
complete
End
Receive
information and
publish
accordingly
Receive letter of
intent
Receive
commitment
126
©2006 BearingPoint, Inc.
Legal (Attorney)
Legal (Docket Clerk)
Program Office
(Loans)
Account
Manager
Applicant
Loan Programs
Page 3
Sign commitment
Receive
notification funding
program is
complete
Send to loans
program office
Update single
application status
Receive
preliminary letter
Receive closing
documents
Review, sign and
send back to Legal
End
Create loan sheet
my inputting loan
number, type, etc
Send to legal
Inform account
manager funding
program is
complete
Receive loan
sheet
Assign attorney
from list
Send letter to
borrower with
closing
requirements
Send closing
documents
Check off receipt
of each required
document
Send to Attorney
Input closing date
Review paper
document
Approve in
electronic form
127
©2006 BearingPoint, Inc.
Page 3
Create a routing
sheet inputting
contract #s and
appropriations
codes
Send to contract
office
Receive
notification from
contract office that
signature process
is complete
Grantee
Contract Office
Account
Manager
Program Office
(Grants)
Grant Programs
Inform account
manager that
funding program is
complete
Receive
notification funding
program is
complete
Receive route
sheet
Review form and
create contract
Receive contract
from contract
office
Review, sign, and
send back to
contract office
Mail contract to
grantee
Receive signed
contract
128
Update single
application status
Approve contract
End
Notify program
office when
signature process
is complete
©2006 BearingPoint, Inc.
4.6.3. L&I
L&I is dedicated to improving the quality of life and economic security for Pennsylvania’s workers and businesses.
Activities reviewed include:
 Grants – Workforce Investment
 Non-P.O. Funds Commitments – Vocational Rehabilitation
 Invoicing – Disability Determination
 Joint Jobs Initiative
All of these programs deal with grants, which is an award by a Federal or State agency to an eligible recipient.
Additionally, most all of the programs use federal monies and must meet federal reporting requirements except for
the Joint Jobs Initiative.
L&I uses a Comprehensive Workforce Development System (CWDS) for agency programs such as unemployment
compensation, worker’s compensations, worker’s insurance fund, and workforce investment. A majority of these
programs use federal funds. Workers’ Compensation, Workers’ Insurance, and the Office of Vocation and
Rehabilitation use an outside system instead of SAP. The Disability and Determination program interfaces with SAP.
Files are passed to Treasury on a daily basis using up to 6 different file types or formats. Unemployment
Compensation and State Workers Compensation both interface directly through Treasury and interface with SAP
only at a summary level.
Grants – Workforce Investment
Start
Receive notice of
funding
Send notice of
funding
Create funding
associations and
program identifiers
in FMS
Link Notification of
Funding (NOO) to
funds association
Contract funding to
chosen local area
Prepare notice of
obligation
Audit, approve and
sign hardcopy
NOO
Log into FMS
Receive NOO
Creates Award(s)
in FMS
(crosswalks to
SAP)
Is request from
bureau >$500?
Yes
Send to L&I Admin
Services and/or
L&I Secretary
Audit and approve
NOO in FMS
system
Page 2
Send to
Comptroller
No
Receive signed
copy of NOO from
BWDP
Send to
Comptroller
Dept of
Labor and
Industry
Bureau of Workforce
Investment
Comptroller
US Dept of
Labor
LECS - Labor and Industry - Grants - Workforce Investment
Receive NOO
129
Approve, sign, and
return hardcopy
NOO to BWDP
©2006 BearingPoint, Inc.
Log into FMS
Comptroller
Page 1
Review and
approve requests
for funds
Reconcile
hardcopy VT
documents with
Treasury report
L&I OIT
Local Area
LECS - Labor and Industry - Grants - Workforce Investment (Page 2)
FMS files are
released into SAP
and Treasury
Print VT backup
Local area can
now see that they
have received
money
Request funds
Send hardcopy VT
to Treasury as
backup
documentation
Review and sign
hardcopy VT
document
Verify VT posts in
SAP
End
Non-P.O. Funds Commitments – Vocational Rehabilitation
Treasury
District
Comptroller L&I Federal
General
Accounting
Program Office
OVR
LECS - Labor and Industry - Non-PO Funds Commitments - Vocational Rehabilitation
Start
Allocate awarded
money to each
district office
Verify document
was posted
correctly in SAP
Receive invoice to
the District
Review and sign
request from OVR
Send copies of
OVR100 to
Treasury and
Comptroller
Send wire transfer
electronic file to
IES - BMIS group
and Treasury
Receive checks
from Treasury and
disburse
Send to General
Accounting
End
Receive signed
copy of OVR100
from General
Accounting and file
Create funds
commitment
document in SAP
Send invoice to
Program Office
Receive signed
copy of OVR100
from General
Accounting
130
Make payment
from electronic file
and backup
documentation
Send check back
to Comptroller for
disbursement
©2006 BearingPoint, Inc.
Invoicing – Disability Determination
Bureau of
Disability
Determination
District
LECS - Labor and Industry - Invoicing - Disability Determination
Start
Input invoices into
BDD system
Send medical
service invoice to
Central Office
BDD files are
released into SAP
Send invoice to
Comptroller
Research and
resolve issues
Treasury
General Accounting
No
Receive invoice
and release to
SAP
Are there IDOC
errors?
Yes
Verify all
document in cycle
have cleared
Work with BDD to
rectify
Verify number of
checks and
invoices included
in cycle
End
Print and sign
hardcopy VT
document
Run reports of files
released to
Treasury
Make payment
from electronic file
and backup
documentation
Reconcile
hardcopy PO
documents with
Treasury report
Send hardcopy VT
to Treasury as
backup
documentation
Receive check
from Treasury and
send to BDD for
their disbursement
Return check to
Comptroller for
distribution to BDD
131
©2006 BearingPoint, Inc.
4.6.4. LECS Document Review and Control
LECS – Document Review and Control – SAP P.O. Invoicing
In this process, an invoice is sent directly to the Comptroller from the vendor. The invoice is audited for invoice and
baseline date, dollar amounts, etc. Each line item is reviewed and checked for quantity and price.
Mailroom
Vendor
Processing SAP PO Invoices
Start
Send invoice to
Comptroller
Receive incoming
mail
Date stamp 2nd
copy
Send to Agency
for goods receipt
Receive invoice
The majority of invoices come directly from Vendor
to Comptroller. Many vendors still send SAP PO to
the agency, who will then send them to the
Comptroller
Enter invoice date,
baseline data,
$$amounts, short
and long text
Audit invoice
against vendor
name and address
on the PO
Enter PO number
Comptroller
Yes
Record document
and invoice # on
invoice
Agency
Send invoices to
General
Accounting
Receive invoice
Is information
correct?
No
Work with agency
for issues
resolution
Yes
Block invoice
No
Input each line
item for
appropriate
sections of PO
quantities
Is automated
system check
correct?
Page 2
Yes
Enter/verify goods
receipt
Send back to
Comptroller
Research and
resolve issues
General
Accounting
Processing SAP PO Invoices (Page 2)
Page 1
Receive invoices
Run report of all
invoices released
to Treasury
Reconcile report
with all physical
invoices
132
Send list of all
blocked invoices to
AP Accountant
Send hard copy
file to Treasury
and file extra copy
End
©2006 BearingPoint, Inc.
LECS – Document Review and Control – Non-P.O. Invoicing
In this process, the invoices are sent to the agency first. The agency will review the invoice for compliance with
grant activities. The agency then approves the invoice and forwards to the Comptroller where they will audit the
invoice once more.
Start
Initiate grant
agreement
Perform grant
activities and
initiate payment
request
Send approved
invoices to Agency
Review invoice for
compliance with
grant objectives
Sign and approve
invoice
Send to
Comptroller
Research and
resolve issues
Audit invoice
against all imaged
document
information
Post expenditures on
invoice against the
budgetary categories
Choose
appropriate
funding line on
funds commitment
document
Are there any
issues with
audit?
Comptroller
Agency
Grantee
Department
Non-PO Invoicing
No
Process invoice in
SAP Finance
SAP releases
information to
Treasury and courier
hard copy to
Treasury for payment
Unblock invoice in
SAP
End
Yes
Resolve
outstanding issues
with agency
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©2006 BearingPoint, Inc.
LECS – Document Review and Control – Rush Payments
LECS has the most rush payments in the Commonwealth. A large majority of these rush payments are politically
driven.
This process is very similar to the normal invoice payment process. The difference here is that the Bureau Director is
directly involved and communicates directly with the Comptroller’s Office. If this payment is a wire transfer, the
Comptroller will verify banking information and approve. If the payment is not a wire transfer, a manual VT must be
constructed. This is a very time intensive process that involves someone sitting at a typewriter and manually
inputting information on the VT document.
Initiate grant
agreement
Start
Bureau Director
Grantee
Department
Rush Payments
Perform grant
activities and
initiate payment
request
Send approved
invoices to Agency
Review invoice for
compliance with
grant objectives
Sign and approve
invoice
Send to
Comptroller
Verify address and
contract terms
match invoice
Verify value date,
long text, and
project reason for
grant is correct
Is all
information
correct?
Research and
resolve issues
No
Work with agency
to resolve issues
Comptroller
Yes
Is this a wire
transfer
yes
Yes
Construct a
manual VT
Unblock invoice in
SAP (if needed)
Walk invoice over
to Treasury
End
No
Is banking
information
present/
correct?
Work with Bureau
to rectify
No
134
©2006 BearingPoint, Inc.
LECS – Document Review and Control – Grants
According to OA Central – Management Directive 305.20, a grant is a legally binding agreement between a grantor
and grantee or sub-grantee which delineates all terms and conditions of a particular grant. The grantees may be
awarded the grant based on whether they meet general criteria and their ranking/scoring.
Grant Agreements
Agency
Start
Send instructions
to grantees with
conditions that
must be met to
qualify for grant
Does the
grantee meet
the grant award
criteria?
Review application
yes
Will application
be used as the
grant
agreement?
Yes
Send to
designated agency
approver
no
No
Page 2
Notify grantee
reason for denial
of grant award
Submit other form
of agreement to
grantee
Receive
information/
instruction on
conditions that
must be met to
qualify for grant
Designated
agency approver
signs and sends to
agency attorney
Receive and input
into log/tracking
file and parks
document
Receive
agreement, sign
and send back to
agency
Submit completed
grant application
Agency
Attorney (Legal)
Grantees
Send to
Comptroller
(mailroom)
Send back to
Agency
135
Review and sign
agreement
©2006 BearingPoint, Inc.
Comprtroller
Mailroom
Grant Agreements (Page 2)
Page 1
Receive grant from
agency
Date stamp 2nd
copy
Yes
Comptroller (Contract Review Unit)
Review grant
agreement or
contract
Does this grant
use federal
funds?
Verify award
process
Page 3
Post funds
commitment
document
Yes
No
Take grant
agreement to
federal accounting
group for approval
Log into SAP to
verify name,
agreement #,
address,etc
Audit grant
agreement against
current laws, funds
appropriateness,
etc.
Does audit
meet approval
criteria?
No
No
Does resolution
require send
back to
agency?
Contact agency for
resolution
Yes
Yes
Federal
Accounting
Funds
commitment
document remains
parked
Work with agency
to resolve
136
No
Does grant
meet approval
criteria?
Receive grant and
review
©2006 BearingPoint, Inc.
Comprtroller
Mailroom
Comptroller (Contract
Review Unit)
Grant Agreements (Page 3)
Send to mailroom
to be dispatched to
agency and
Treasury
Prepare grant
agreement and
address envelope
Page 2
Send copy to
Mailroom for
imaging
Receive grant
agreement from
Contract Review
Unit
Mail package to
agency
Image contract
and discard
hardcopy
End
Agency
Receive copies of
grant agreements
and file
Receive header
sheet and copy of
fully excuted
contract
137
©2006 BearingPoint, Inc.
LECS – Document Review and Control – Sole Source Grants
Sole source grants are submitted to the Comptroller for approval. The Comptroller reviews for the validity of the
project, the funding source, and the sole source justification.
Sole Source Grants
Prepare a
'Request for
Approval; of a Sole
Source grant
Submit request to
Comptroller Office
Receive request
Prepare grant
agreement and
send to grantee
Agency
Start
Sign agreement
and park
document
Comtroller (Contract Review)
Send to Agency
Attorney
Receive request
Does the Sole
Source grant
meet the
criteria?
Review request
File approved
request for Sole
Source
No
Notify agency
reason for denial
of request
Grantee
Agency
Attorney
Yes
Send back to
Agency
Receive
agreement
Review agreement
and sign
Receive grant
agreement
Page 2
138
©2006 BearingPoint, Inc.
Agency Legal
Sole Source Grants (Page 2)
Receive grant
agreement
package from
Agency
Review for final
signatures needed
Attorney
General/General
Counsel
No
Return to agency
for distribution
Yes
Send package to
Attorney General/
General Counsel
Page 1
Receive package
from Agency Legal
Review grant
agreement
package
Sign and return to
agency
Receive fully
executed grant
package from
Attorney General/
General Councel
Comptroller (Contract Review)
Agency
Should package
be sent to
Attorney General
and General
Counsel?
Distribute all
copies to
Comptroller
Receive fully
executed copy of
contract
139
Page 3
©2006 BearingPoint, Inc.
Sole Source Grants (Page 3)
Does this grant
use federal
funds?
Verify approved
sole source
Page 2
Post funds
commitment
document
Page 4
Yes
No
Take grant
agreement
package to federal
accounting group
for approval
Log into SAP to
verify name,
agreement #,
address,etc
Audit grant
agreement against
current laws, funds
appropriateness,
etc.
Does audit
meet approval
criteria?
Yes
No
Contact agency for
resolution
Federal
Accounting
Comptroller (Contract Review Unit)
Yes
Work with agency
to resolve
No
Does grant
meet approval
criteria?
Receive grant and
review
Comprtroller
Mailroom
Comptroller (Contract Review
Unit)
Sole Source Grants (Page 4)
Send copy to
mailroom for
imaging
Page 3
Prepare grant
package and
address envelope
Receive grant
package from
Contract Review
Unit
Send to mailroom
to be dispatched to
agency
Receive header
sheet and copy of
fully excuted
contract
Mail package to
agency
Image contract
and dispose paper
copy
End
Agency
Receive original
copy of grant
agreement
140
©2006 BearingPoint, Inc.
LECS – Document Review and Control – DGS SAP P.O. for Commodities >$20,000
If the original contract amount is anticipated to exceed $20,000 (not to include renewal options), DGS solicits, bids,
awards and purchases the supply (except steel for bridges). The originating organization prepares specification and
the requisitioner creates a shopping cart in EBPro.
After the purchase requisition has gone through appropriate reviews, it will be routed, with proper supporting
documentation, to DGS. DGS will create an RFQ with reference to the purchase requisition and a purchase order
with reference to the RFQ.
Start
Prepare requisition
Submit to DGS
Receive requisition
from Agency
Award bid based
on lowest cost
Prepare SAP PO
Prepare ITB
Receive and
review submitted
bids
Approve SAP PO
and submit to
comptroller
Receive ITB
Submit completed
bid to DGS
Research and
resolve issues
Vendor
DGS
Agency
DGS SAP PO - Commodities (> $20,000)
Research and
resolve issues
No
Receive approved
SAP PO from DGS
Legal
Release approved
SAP PO to vendor
Receive released
SAP PO
End
DGS Legal
Comptroller
No
Receive SAP PO
Audit for funding
source, account
coding, and
propriety of
purchase
Send back to DGS
Should SAP
PO be
approved?
Yes
Should SAP
PO be
approved?
141
Yes
Send to DGS
Legal
Receive and
review SAP PO
©2006 BearingPoint, Inc.
LECS – Document Review and Control – SAP P.O. for a DGS Contract (Quote and No Quote)
In these two processes, an agency will either request a quote from a DGS supplier or proceed to create a P.O. if a
standard price is stated in contract. One issue that is outstanding in this process is being able to procure thing below
the P-Card threshold when it is against a DGS Statewide Contract. Recently, DGS and Comptroller Operations have
agreed on which statewide contracts you can procure from using a P-Card.
SAP PO for DGS Contracts (Quote Required)
Agency
Yes
Start
Prepare SAP PO
referencing DGS
contact
Vendor
Release SAP PO
to vendor
No
Submit copy of
quote to
Comptroller
Request quote
from DGS supplier
Comptroller
Is SAP PO
<$3K?
Receive quote
request
Submit completed
quote to Agency
Audit PO for
funding source,
account coding
and propriety of
purchase
Verify vendor
quote matches
SAP PO
Research and
review any issues
with PO
Receive released
SAP PO
Audit SAP PO
against DGS
contract and
validity period
End
Work with Agency
for resolution
No
Should SAP
PO be
approved?
142
Yes
Send to Agency
for release
©2006 BearingPoint, Inc.
Agency SAP PO for DGS Contracts (No Quote Required)
Agency
Yes
Start
Prepare SAP PO
referencing DGS
contact
Is SAP PO
<$3K?
Release SAP PO
to vendor
No
Research and
review any issues
with PO
Comptroller
Vendor
Submit to
Comptroller
Receive released
SAP PO
Audit PO for
funding source,
account coding
and propriety of
purchase
Audit SAP PO
against DGS
contract and
validity period
End
Work with Agency
for resolution
No
Should SAP
PO be
approved?
143
Yes
Send to Agency
for release
©2006 BearingPoint, Inc.
Sole Source Procurement for Services (>$3K)
If a good or service cannot be awarded using a competitive process, they are procured as a sole source. Sole source
services require approval by the Department of General Services (DGS). DGS pre-approves an agency to enter into a
sole source agreement. Then the agency prepares the purchase order and the Comptroller’s Office approves it.
DGS
Sole Source Procurement for Services (>$3K)
Receive requisition
with Sole Source
Fact Sheet and
quote
Verify and approve
Sole Source
request
Submit to Agency
End
Submit requisition
to DGS with Sole
Source Fact Sheet
and vendor quote
No
Agency
Receive approved
Sole Source
request
Prepare SAP PO
Is PO >$3K?
Yes
Start
Comptroller
Receive SAP PO
Send to
Comptroller
Audit SAP PO for
funding source,
account coding,
and propriety of
purchase
Research and
resolve issues
Page 2
Yes
Verify amount,
name, and
address on SAP
PO match quote
Should SAP
PO be
approved?
Research and
review any issues
with PO
Send back to
Agency
No
144
©2006 BearingPoint, Inc.
Agency
Legal
Sole Source Procurement for Services (>$3K) (Page 2)
Yes
Review SAP PO
Should SAP
PO be
approved?
Comptroller
Is Sole Source
>$10K?
Send to Agency or
AG/OGC
Research and
reslove issues
No
Yes
Does Sole Source
have preapproved form
(terms and
conditions)?
No
No
Send to Agency
Legal
No
Attorney General/
General Counsel
Page 1
Send to Agency
Yes
Should SAP
PO be
approved?
Receive PO from
Agency Legal
Research and
resolve issues
Receive approved
PO
Vendor
Agency
Yes
Release approved
SAP PO to vendor
Receive released
SAP PO
145
End
©2006 BearingPoint, Inc.
LECS – Document Review and Control – Agency RFP for Service
If a contract is awarded using the RFP process, the initial interaction of the Comptroller’s Office begins with the
review of the draft RFP. An RFP is used to obtain services when an agency is seeking a solution whereby criteria
other than cost are used in the evaluation process.
RFP for Services
Agency
Page 2
Start
Agency
Legal
DGS
Submit request to
issue RFP to DGS
for approval
Appoint an RFP
committee
Establish scoring
for RFP
Issue RFP to
vendors
Provide copy of
RFP to DGS MBE/
WBE Office
Receive
comments from
Comptroller and
Legal
Draft RFP and
submit draft for
review to Legal
and Comptroller
Approve agency to
issue RFP
Receive copy of
RFP from agency
Review draft RFP
and provide
comments
Ensure statement
of work is
complete and is
deliverable based
Comptroller
Review draft RFP
for compliance to
DGS format
Ensure cost
information is tied
to deliverables
Determine if
Comptroller Office
will be a nonvoting member
Provide written
comments for
consideration
146
©2006 BearingPoint, Inc.
Vendors
RFP for Services (Page 2)
Review RFP
Send questions to
agency
Will a preproposal
conference be
held?
Issue written
response to all
questions
Page 1
Agency
Receive questions
from agencies
No
Receive answers
to submitted
questions
Submit formal
response to RFP
Send SERB
portion to DGS
MBE/WBE office
for schoring
Distribute technical
proposal to RFP
evaluation
committee
Yes
Hold pre-posal
conference
addressing RFP
and questions
raised
Secure cost
portion until
Technical and
SERB is evaluated
RFP Evaluation
Committee
DGS MBE/
WBE
Receive RFP
Recommend
award
Page 3
Receive SERB
portion and score
Send to agency
Review and score
cost portion
Receive technical
proposal and
SERB scoring
Comptroller
Agency
Agency Head/
Designee
RFP for Services (Page 3)
Receive RFP
recommendation
Approve award of
RFP
Negotiate contract
Prepare SAP PO
or post funds
commitment
document
Forward
supporting
documentation to
Comptroller
Receive SAP PO
or paper contract
Audit for funding
source, account
coding and
payment terms
Audit for
compliance with
RFP rules and
procedures (if not
on the compliance
committee
Page 2
Research and
resolve issue
Should PO or
contract be
approved?
No
Work with agency
to resolve issue
Yes
Page 4
147
©2006 BearingPoint, Inc.
Agency
Legal
RFP for Services (Page 4)
Yes
Review SAP PO
Comptroller
Is ITB >$10K?
No
Should SAP
PO be
approved?
Yes
Send to Agency or
AG/OGC
Research and
reslove issues
Approve PO
Yes
Does ITB have
pre-approved form
(terms and
conditions)?
No
Send to Agency
Legal
Attorney General/
General Counsel
Page 3
No
Agency
Send to
Comptroller for
approval
Vendor
Receive approved
PO
Yes
Should SAP
PO be
approved?
Release approved
SAP PO to vendor
Receive released
SAP PO
148
Receive PO from
Agency Legal or
AG/OGC
End
©2006 BearingPoint, Inc.
LECS – Document Review and Control – P-Card Post Audit
Currently, the dollar threshold for P-Card use is $3K. Starting August 31st, the dollar threshold will move to $5K.
After purchases have been made with a P-Card and the card owner has reconciled the purchases, the Comptroller will
sample audit transactions.
BFM
P-Card Post Audit
Start
May print the following reports: cost
allocation, comp. stats., past due
accounts, multiple transactions,
MCC exceptions, over/under spend
limits, trans limits
Export cost
allocation report to
Excel
Do a statistical
sample for PDE
and L&I,
judgement sample
for DCED
Import file to
ACCESS
Select all
transactions to be
audited on statistic
sample
Request
documentation
from department
(invoices approval
levels)
Audit transactions
in the SAMPLE file
using Error Listing
Criteria
Receive
documentation
request from
Comptroller
Send requested
documentation to
Comptroller
Cut and paste
sample
spreadsheet into
Access and
generate results
Perform statistical
projection
Send memo with
audit findings to
appropriate
department
Send Error Report
to appropriate
section of
Comptroller's Audit
Department
End
149
Document
responses from
dpartment
Send response to
Comptroller on
negative audit
findings
Receive memo of
audit findings
Audit
Department
Department
Comptroller
Receive email
from BFM
Send email around
20-23rd of every
month
Receive error
report from
comptroller
©2006 BearingPoint, Inc.
4.7.
Treasury
The State Treasurer of Pennsylvania (“Treasury”) is an independently elected executive officer as provided by the
state constitution. The responsibilities of the Treasurer are detailed in the Fiscal Code pursuant to authority granted
from the Administrative Code of 1929. In particular, the Treasury is responsible for auditing payment requests for
the state and ensuring that they are “legal and correct.” Because of this statutory responsibility, Treasury maintains a
Fiscal Review group for invoice audit and independent systems for the preparation and printing of checks.
The following process shows the steps that Treasury takes from the point of receiving a payment file from SAP and
results in the creation of a check or electronic payment to a payee.
IT
Treasury Process
Receive payment
file from SAP
Run audit and sort
program to
separate items for
audit
Audit?
No
TABS
Yes
Run budget and
accounting checks
Fiscal Review
Sort work
automatically into
queues for audit
Conduct audit
based on defined
checklist of items
Audit Ok?
Comptroller
Print checks or
ACH payments
Clear request for
payment
End
Yes
No
4.8.
Yes
Set for bank
assingment
Start
Issue
Resolved?
No
Redline request
Attempt to resolve
Treasury issues
Bureau of Financial Management
The Bureau of Financial Management (BFM) comprises six reporting units that perform financial reporting,
budgeting, accounting, vendor master file maintenance, manage advancement accounts and the purchasing card
program as well as account for Federal funds. These groups are:
 Commonwealth Financial Reporting
 Budgetary Accounting
 Commonwealth Accounting
 Central Vendor Master Unit (CVMU)
 Financial Operations
 Federal Accounting
150
©2006 BearingPoint, Inc.
CVMU is responsible for maintaining vendor records in SAP, including both procurement and accounting vendors
(e.g., grant recipients). Current challenges include significant effort expended in resolving vendor name differences
due to tight restrictions by Treasury for vendor name matching (e.g., rejected invoice for “Lowes, Inc.” because
vendor record said “Lowes”).
Financial Operations manages advancement accounts and the purchasing card program. Advancement accounts are
used in cases where disbursement authority has been granted to agencies, representing approximately 115,000 checks
annually. In addition, Financial Operations pays and audits charges made using the 3,600 purchasing cards in use
across the Commonwealth. Current challenges include availability of purchasing card level III data for reporting,
which would enable better report-based transaction reviews, but which is not always entered by the vendor at point of
sale.
4.9.
Bureau of Audits
The Bureau of Audits is responsible for:
 Annual training and audit support
 GAAP and single audit assistance
 Audits for programs and spending by Comptroller’s Offices
 Quality control reviews of Comptroller
 SAS 65 reviews
 IT Control audits
The Bureau of Audits recognizes a need for further SAP training and to communicate to the field about how their
actions impact the financial statements.
151
©2006 BearingPoint, Inc.
4.10.
System Inventory
The follow list of systems was accumulated during interviews. We are certain that it is not exhaustive,
but does provide insight into the architecture complexity required to track information that produces
payments.
System/Module
SAP
PROMISe
HIPP 32 (Health Insurance Premium
Payments)
Income Maintenance System
CIS
CCIS
CCMIS
FIDM
PACSES
WIS
eGrants
FMS
FAI
ICS
DCED
LEAPS
AFR
Unipay
PSERS
Loan Application system
SWIFT
CWDS
ECMS
CMS
CARATS
MUSIC
Excel
Manugistics
POS
SPOS
FMS
OVR
VIPS
SERS
CDS NextGen
ROW Office
DCED Grant/ Loan Application
Purpose
Enterprise wide purchasing and payables
DPW system for paying medicare/Medicaid claims to doctors/hospitals
DPW HIPP program pays employer portion of health insurance premiums
for eligible individuals when deemed more cost effective than a medical
assistance program
DPW
DPW Client Information System
DPW Child Care Information System
DPW Child Care Management Information System
Financial Institution Data Match
DPW Pennsylvania Child Support Enforcement System
Welfare Information System
PDE online grant application system
LECS Recurring payments against funds commitments
LECS Summary posting of contracts with commitments, payment
processing
LECS
LECS DCED Grant Invoice
LECS Retirement Payments, payment to private schools
LECS Annual Finance Reporting System
LECS Appropriations
LECS Reporting of retirement data
LECS PIDA loans
LECS labor insurance program tracking
LECS Comprehensive Workforce Development System
PennDOT Contract Management, construction & consulting payments
PennDOT
PennDOT
PennDOT liquid fuels tax distribution
PPR Grants, budget calculations and funding availability
LCB demand planning system
LCB store point of sale system
LCB store point of sale system – SLO purchases
L&I
L&I
Vendor Invoice Payment System
State Employees Retirement System
PennDOT project site activity record
PennDOT right of way payment tracking
DCED Grant/ Loan Application tracking
152
©2006 BearingPoint, Inc.
5. GAP ANALYSIS
5.1.
Leading Practices
LEADING
PRACTICE
Organization
Shared Services
DESCRIPTION
BUSINESS BENEFITS
Shared services is an organization
structure where one location serves many
for one or more support functions. It
relies on three principles: standardization,
consolidation and re-engineering.
 Reduces cost by leveraging economies of
scale
Processes and technology are
standardized and processes and systems
are re-engineered.
A key tenet of shared services is to
establish a strong customer service
culture and employ practices that
continue to drive that focus.
GAP?
 Facilitates end-to-end process management
Partial
CURRENT PRACTICE
QUICK
HIT?
 Sourcing for cross-agency
commodities is centralized with DGS
 Enables focus on core competencies and
specialization
 Purchasing and sourcing within
agencies typically occurs within the
agencies
 Provides platform for growth with
standard, scalable processes
 Invoices are received and in some
cases pre-processed at agencies
 Allows cost effective leveraging of
scanning solution(s)
 Invoice processing occurs at separate
Comptroller’s offices
 Supports knowledge sharing if the entire
procure to pay solution is co-located:
process expertise management, policy
management and adherence, vendor
management, vendor data management,
vendor credit management
 Payment is centralized in Treasury
N
 Payroll and T&E processing exist in a
shared services environment
 Vendor master maintenance handled
by CVMU
 Supports a central document management
solution for all e-docs thru the entire
procure to pay process
 Facilitates people management (training,
cross-functional knowledge, etc.) for staff
supporting the co-located process
 Offers improved internal and external
customer service levels and satisfaction
 Supports a vendor customer service
delivery model whereby all level 1 (and
above) inquiries can be supported by an
SSC call center
 Creates a work team that is adaptable, fast,
and requires fewer layers of organizational
153
©2006 BearingPoint, Inc.
hierarchy
 Facilitates future change by creating one
workforce that embraces opportunities for
improving customer value
 Faster, consistent invoice entry improves
accuracy of data for accruals
Internal Controls:
 Provides separation of duties between field
purchasing and payables
 Enables more consistent application of AP
policies and procedures
 Field staff are responsible for entering
receipt information and/or authorizing
invoices for payment, ensuring payment is
contingent upon delivery of goods or
services
 AP data entry roles in SAP restrict them
from vendor setup and other conflicting
duties
Centralized
Invoice Receipt
Centralized invoice receipt can offer
many benefits to an organization from
improved vendor relations to cost
reduction by leveraging enabling
technologies.
 Improves vendor relations by reducing
confusion for vendors dealing with
multiple locations
Companies receive invoices into a central
location and use enabling technologies
such as imaging and optical character
technology to input invoice data.
 Prevents invoices directed to locations
from being lost in the shuffle
Workflow technology can be leveraged to
route invoices to the appropriate party for
approval.
Y
 Invoices are received and in some
N
cases pre-processed at agencies
 Makes implementation of enabling
technologies more cost effective
 Reduces workload companywide by
eliminating redundancy and providing
economies of scale
 Offers stronger control over invoice
processing
 Faster, consistent invoice entry improves
accuracy of data for accruals
Internal Controls
 Reduces potential for fraud by providing
separation of duties between purchasing
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and invoice entry
 Field staff are responsible for entering
receipt information and/or approving
invoices for payment, ensuring payment is
contingent upon delivery of goods or
services
 AP data entry roles in SAP restrict them
from vendor setup
Requisition and Ordering
Online
E-procurement is the purchase of supplies
Purchasing / eand services via the Internet by one
Procurement
business from one or more other
businesses. E-procurement is enabled by
software that manages the purchasing
process according to pre-arranged
payment terms and incorporates the use
of purchasing cards or is integrated with
the receiving and payment systems.
Many e-procurement software packages
integrate with vendor catalogs via the use
vendor punchout catalog sessions, which
allow employees to order from the vendor
catalog using their own company’s eprocurement system.
Purchasing
Cards
Employees charge purchases to a
purchasing credit card which the
company settles by paying one summary
invoice.
Like a personal credit card: (1) the
cardholder receives a monthly statement
listing purchases; (2) each cardholder is
assigned a credit limit; and (3) vendors
receive 97 percent to 98.5 percent of the
purchase price within two days of
purchase.
Unlike a personal credit card: (1) the
company is obligated to pay one rolled-up
 Improves process efficiency
N
 The SRM project will enable online
bidding, including the use of punchout
catalogs with multiple vendors and ebidding tools.
N
Partial
Purchasing cards are in use and usage
will increase with the implementation of
SRM.
N
 Improves price reductions
 Reduces maverick buying
Internal Controls:
 Paired with a policy requiring usage of the
e-procurement system for certain types of
purchases, it constrains employees to use
negotiated vendors, pricing and terms &
conditions
 Because purchases go through a common
system, reporting is available to facilitate
auditor analysis of spending patterns
 Online purchase medium sharply reduces
likelihood of collusion between supplier
and employee / purchaser
 Speeds the requisition to order time by
eliminating need for vendor setup
 Eliminates or reduces workload in
purchasing, accounts payable, mailroom,
general accounting and IT
 Provides Level III reporting that can be
used in supplier negotiations (note, Level
III reporting is an option offered by card
vendors)
Internal Controls:
 Preventive controls are placed on cards for
vendor blocking and spending limits per
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However, the p-card program currently
faces some obstacles to taking complete
advantage of the benefits offered by a
strong p-card program, such as:
 Vendors are inconsistent about
supplying Level III data at point of
purchase. The resulting gaps in this
data for post-transaction audits
requires manual effort for reviewing
source documentation and adds to the
©2006 BearingPoint, Inc.
bill summarizing monthly purchases
made by all cardholders, (2) card issuers
offer SIC or MCC blocking which allows
the company to restrict card usage to
specific types of suppliers, and (3) a
company can obtain on-line real-time
access to all card transactions. The dollar
amount of purchases and transaction
frequency associated with p-cards can be
controlled by the card-using organization.
Total p-card spending by the company is
controlled by the card-issuing institution
through an established line of credit.
Blanket POs
With blanket purchase orders, the price
for an item is agreed upon before the
transaction and resides in the purchasing
system. The supplier agrees to supply
quantities of an item at an agreed-upon
price for an agreed-upon amount of time.
The agreement is usually based on some
type of quantity commitment by the
buyer. Blanket POs are typically not used
for purchases that are in total a small
dollar amount.
transaction and per day. P-card users are
not granted authorization to impact
controls over their own card
cost of administering the p-card
program.
 While card limits are being raised,
there may be opportunity for raising
that ceiling for certain types of
purchases undertaken by specific
individuals. Currently parallel
payment methods must be maintained
contingent upon the purchase amount.
 Review and approval of card spending by
at least one supervisor of purchaser with
budgetary responsibility
 Audit of p-card spending can leverage
reporting by card provider for analysis of
spending patterns
 P-card policy has not been
comprehensive or readily enforced.
 Shift of small dollar transactions from P.O.
/ invoice to p-card frees audit time to
spend on higher dollar transactions
 Reduces workload for setting up individual
purchase orders for frequently purchased
items
N
 Blanket POs are not currently used for
most items.
N
 LCB is piloting an approach to use
SAP invoice planning for leases,
which operates similarly to a blanket
PO.
 Offers flexibility when exact quantities to
be purchased are not known
Improves consistency of vendor and P.O.
data by use of one purchase order rather than
many
Internal Controls:
 Reduces likelihood of error by
consolidating many purchase order setups
to one
 Supports P.O. setup by a centralized buyer
as a separate role from the purchaser
Receipt of Goods and Services
Advance
Advance shipping notices are a form of
Shipment
EDI receipt where vendors or shippers
Notice
communicate data electronically
(typically in XML) pertaining to pending
deliveries of ordered goods.
The XML transmission is uploaded to the
receiving system to pre-populate
receiving data, where it is then confirmed
by an employee after actual receipt of
goods.
 Reduces data entry for receiving by
providing uploadable detail regarding
shipments in transit
 Purchases can be tracked en route,
increasing purchaser’s visibility of
delivery date
Internal Controls:
 Provision of receiving detailed data by
vendor paired with confirmation by
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Y
 Currently, receiving data is entered
manually by the purchaser.
N
 Receipt entry is often done after the
invoice is input as part of issue
resolution and is the cause of many
blocked invoices. Purchasers have no
incentive to enter receipts in a timely
fashion. Late payment penalties are
paid from a central budget and there
are currently no personal performance
©2006 BearingPoint, Inc.
This facilitates entry of receiving data and
allows tracking of purchases in transit.
Often used in conjunction with bar coding
or RFID technology for inventory receipt
and management.
Vendor SelfService Receipt
Entry
Electronic
Notification of
Receipt
receiver of that detail reduces potential for
fraud by either party
 Electronic download from vendor system
and upload to buyer receiving system
reduces likelihood of data entry errors
Vendor self-service receipt entry offers a
web interface for vendors to enter
shipment detail into a restricted portion of
the receiving system. Similar to Advance
shipping notices, vendor self-service
receipt entry pushes the effort of receipt
data entry to the vendor while still relying
on the receiving employee to confirm
receipt.
 Reduces data entry for receiving
Used where shipments are received by a
receiving dock or department rather than
by the end user of the purchase. Some
purchasing and receipt systems offer
automated notification via email that
alerts the purchaser that their shipment
has been received, triggered by entry of
the receipt information.
 Increases purchaser’s visibility of delivery
status
Invoice Processing
Evaluated
Also known as invoiceless processing,
Receipt
ERS eliminates the 3-way match in favor
Settlement
of a 2-way match of P.O. and receiving
(ERS)
information. The premise is that if one
has an approved purchase and proof of
receipt of that purchase, that payment can
be made based on the terms in the P.O.
and the invoice is unnecessary. This
generally can be implemented only for
certain vendors and relies upon the
receiving staff to verify receipt and record
metrics linked to that activity.
Y
 Increases purchaser’s visibility of delivery
status
 Provision of receiving detailed data by
vendor paired with confirmation by
receiver of that detail reduces potential for
fraud by either party
Y
 Reduces miscommunication between
receiving and purchasing
 Simplifies matching process
Internal Controls:
 Ensures that payment is made based upon
negotiated terms and conditions
N
 Receipt entry is often done after the
invoice is input as part of issue
resolution and is the cause of many
blocked invoices. Purchasers have no
incentive to enter receipts in a timely
fashion. Late payment penalties are
paid from a central budget and there
are currently no personal performance
metrics linked to that activity.
Internal Controls:
 Reduces invoice data entry workload and
associated labor cost
 Currently, receiving data is entered
manually by the purchaser.
 Currently, receiving data is entered
manually by the purchaser.
N
 Receipt entry is often done after the
invoice is input as part of issue
resolution and is the cause of many
blocked invoices. Purchasers have no
incentive to enter receipts in a timely
fashion. Late payment penalties are
paid from a central budget and there
are currently no personal performance
metrics linked to that activity.
N
 In scope for implementation as part of
the SRM project.
Y
 Treasury’s current process requires an
invoice, or the representation of an
invoice, to presented to Treasury as an
appropriate payment requisition.
 Receiving staff or purchaser must enter
receipt information and record returns
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returns.
EDI
Used with larger vendors that have EDI
capability, this method of invoice
presentment involves providing the
vendor with P.O. information that they
can then use with an extract from their
own billing system as a means to provide
their invoices electronically.
 Reduces workload for entering invoice
information
N
 Electronic receipt of invoice
information is planned with the SRM
implementation via XML files and
through a portal.
N
 Electronic receipt of invoice
information is planned with the SRM
implementation via XML files and
through a portal.
Partial
 Imaging currently occurs at the end of
 Facilitates workflow routing for approval
 Improved accuracy – no data entry errors
and data matches P.O. information
provided
 Vendor is able to generate their EDI file
from their own billing system, which
increases vendor compliance
Internal Controls:
 Vendor address and any bank account data
is derived from the P.O. / vendor master
file, reducing likelihood for fraudulent
diversion of funds
 Electronic transmissions typically are
encrypted and have better protections
against tampering than a paper invoice
Vendor SelfService /
Electronic
Invoice
Presentment
(EIPP)
After a purchase occurs, the vendor posts
their invoice to the buyer’s EIPP system,
which integrates with the buyer’s AP
application. The buyer reviews the
invoice online and if correct can then
initiate payment.
Third party EIPP tools offer flexibility for
the incoming file formats that can support
the ability for the vendor to generate their
invoice from their own billing system, a
feature that improves vendor compliance.
 Reduces invoice data entry workload
 Facilitates electronic workflow routing for
approval
 Offers a viable option for smaller vendors
who may not be candidates for ERS or
EDI
 Vendor may be able to provide an EIPP
upload file from their own billing system,
which increases vendor compliance
Internal Controls:
 Vendor address and any bank account data
is derived from the P.O. / vendor master
file, reducing likelihood for fraudulent
diversion of funds
 Electronic transmissions typically are
encrypted and have better protections
against tampering than a paper invoice
Imaging
Imaging technology is a recognized
 Reduces cycle times for routing documents
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Y/N
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Technology for
Filing, Routing
and
Documentation
Optical
Character
Recognition
(OCR) for
Invoice Entry
method of storing and routing payables
invoices. When paired with workflow
technology to route invoices for approval
or other inquiries, imaging offers a faster
mode of communication and reduces the
likelihood of lost documentation.
for approval
the process for storage only.
 Reduces likelihood of lost documentation
 Treasury also images invoices for use
in their audit process
 Paperless archiving reduces need for
storage space
Internal Controls:
A successful imaging process includes
technician review to ensure that the
imaged invoice is clearly legible.
 Imaged documentation offers better
protection against alteration than does
paper. Imaged documents have a file date
and are typically stored as an attachment in
an accounting transactional or document
management tool that offers version
control
Optical character recognition software
has improved to the point that
organizations are beginning to use it for
AP invoice entry. Such software now
offers unstructured forms processing that
uses pattern recognition technology to
pull key information from scanned
invoices to populate fields in the AP
system. The AP staff move from data
entry clerks to a role of monitoring
accuracy of the imaged data.
 Reduces workload for invoice data entry
Companies that have implemented this
technology see dramatic increases in
invoices entered per person from an
average of 28 per day to an average of
150 per day according to The Accounts
Payable Network. In addition, the
accuracy of data entry also improved.
 Reduces likelihood of data entry error
when compared with manual keying of
invoice data
Y
 We did not see any evidence of OCR
within the Commonwealth.
N
N
 Tolerances in SAP for differences in
the 3-way match are set to zero,
resulting in processing exceptions not
only for differences in the totals but
also for differences in the order of the
Y
 Improved accuracy for invoice data entry
Internal Controls:
 Imaged documentation offers better
protection against alteration than does
paper. Imaged documents have a file date
and are typically stored as an attachment in
an accounting transactional or document
management tool that offers version
control
This option requires high quality scanners
and is most cost effective where invoice
receipt is centralized.
Tolerance
Thresholds for
Automated
Matching
In addition to allowing passing of
differences deemed immaterial in the
dollar amounts between purchase orders
and invoices, tolerance thresholds can
also accommodate differences in the
 Shifts effort to resolving significant
exceptions
 Reduces overall invoice processing cost
 Improves vendor relations by reducing
payment delays
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Payment
Automated
Clearinghouse
Payment (ACH)
order in which the same set of items
appear on the two documents or
unimportant differences in the vendor
name. This frees up employee time spent
on resolving irrelevant differences to
focus on more important exceptions.
Tolerance limits are set by the company
to levels that make them comfortable that
all material exceptions will be identified,
yet is cost effective in passing nonmaterial or irrelevant exceptions.
Internal Controls:
ACH can be used to reduce the use of
paper checks by making automated
payments. ACH payments are made by
prior arrangement with major vendors by
sending a formatted disbursement file to
the bank which then electronically
transfers payments to vendors.
 Reduces cost and workload for payment
processing: average manual data entry is
28 invoices per hour; automated capture
system averages 150 invoices per hour
line items entered for the invoice
versus the purchase order.
 Frees review time spent on immaterial
differences to higher risk exceptions or
transactions
 This has resulted in a manual prematch performed during invoice entry,
effectively negating the value of
having auto-matching software.
 Reduces likelihood of rubber stamp
overrides of high volume invoice
exceptions
 Typically paired with reporting on vendor
passed differences to review patterns
Partial
 ACH payment methods are in use
currently
Y
 Treasury would like for a greater push
to paying with ACH
 Lower postage and material costs
 DGS Bureau of Procurement is
discussing further use of ACH during
vendor contracting.
 Improved tracking of payments
Internal Controls:
 Reduces likelihood of employee fraud by
eliminating paper check handling
Auditing
PostTransaction
Statistical
Auditing
Post-transaction statistical auditing shifts
review of business to business
transactions until after payment is made.
It uses a formal auditing approach and
sampling methodology to focus the audit
on higher risk transactions.
 Application of a formal, risk-based
sampling methodology focuses audit time
on higher value reviews
Partial
 Invoices are reviewed an audited
multiple times, but all audits occur
before payment.
 Overall invoice payment cycle times not
impacted negatively by post-transaction
audits
 Comptrollers follow a post audit
approach for p-card and advancement
account transactions.
Internal Controls:
 The Auditor General has statutory
responsibility for post audit of
spending.
 Limited audit resources are focused on the
highest risk areas
N
 Implement with vendors where there is
recourse for payment correction
Vendor Master File Management
Vendor
Companies can streamline their vendor
Reduction
master file and see significant workload
 Increased buying power to negotiate price
and terms
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Partial
 An effort is currently underway to
clean up the vendor master file and
Y
©2006 BearingPoint, Inc.
and buying benefits using a combination
of methods:
 Reduced workload for vendor master file
maintenance
 Purge vendors with infrequent or low
dollar purchases that supply goods
available from a more active vendor
Internal Controls:
 Reduce commodity vendors to 2-3 per
commodity
address legacy system data issues, but
it lacks staffing and is proceeding
slowly.
 Reduces likelihood of a fraudulent vendor,
or alternate address or payment
information for a valid vendor appearing in
the master file
 Shift purchases to p-cards
 Centralize new vendor setup to one
procurement team
Vendor Master
Maintenance
A formal vendor management process
that includes pre-purchase vendor due
diligence, use of substitute W-9 to gather
additional vendor data (imaged for
storage), establishing rules for vendor
setup, including vendor naming and
address conventions and ongoing
procedures for vendor master file
cleanup. Often preceded by a one time
master file cleanup project.
 Reduce potential for fraud
 Reduce duplicate payments
 Improved vendor spending data and
buying power
 Better vendor relations
Internal Controls:
 Reduces likelihood of a fraudulent vendor
or alternate address or payment
information in the master file
161
Partial
 The CVMU is responsible for
managing the vendor master
Y
 An effort is currently underway to
clean up the vendor master file and
address legacy system data issues, but
it lacks staffing and is proceeding
slowly.
 A process is in place for adding new
vendors.
©2006 BearingPoint, Inc.
5.2.
Benchmark Metrics
Commonwealth data were supplied by the Comptroller’s offices and through interviews. While the Commonwealth was not able to supply data for
comparison with all the benchmark metrics offered below, BearingPoint presents the additional metrics for potential discussion purposes. While not all the
metrics were available based upon a government organization peer group, we provide them where available, as noted.
Agency
Comptroller
Treasury
Total CoPA
Metric
Annual Invoices Processed per AP FTE
10,834
$5.80
$4.41
8,352 (Gov’t Orgs) 1
17,414 (1st quartile, > 100K
Annual Invoices) 2
13,613 (> 100K
Invoices annually) 2
10,092 (Large
Organizations) 1
$12.59
$2.17
17.0
Average Days Added to Payment Cycle
for Exceptions
Percent of Disbursements with Errors
Benchmark Median
19,632 (High, Gov’t Orgs) 1
4,266
Annual Manual Invoices Process per AP
FTE
AP Staff Labor Cost per Invoice (salary
+ benefits)
4,528
Benchmark 1st Quartile /
High
$1.88 (1st quartile, > 100K
Annual Invoices) 2
$2.84 ( > 100K
Invoices annually) 2
3-4 Days1
17.0
2% (2% for Gov’t orgs)
0.16%
1
Business Days from Invoice Receipt to
Posting
11.7
6.1
Business Days from Posting to Payment
9.0
Materiality Threshold for Differences in
the 3-way Match
1
Source: The Accounts Payable Network, 2006
2
Source: BearingPoint World-Class Finance Benchmark, 2003
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17.8
1-3 Days (High) 1
4-6 Days 1
9.0
4-6 Days (High) 1
7-10 Days 1
$0
$127 (1st Quartile) 2
$52 2
©2006 BearingPoint, Inc.
6. KEY FINDINGS
During this assessment, we found that there were some common themes and challenges within the requisition to
payment processes. These common themes were the primary causes of the high organizational cost and the lengthy
cycle times. These themes will be considered a key focus for the next phase of the project, Future State Visioning.
Entry of receipt for goods or services by purchaser is not timely
Viewed as an epidemic problem throughout the Commonwealth, the most common reason for invoices being blocked
in SAP is due to the lack of a goods receipt. Since SAP was implemented, the Comptrollers have tried to encourage
entry through meetings, training and reports, but Agency compliance has been lacking. Additionally, Comptrollers
and Treasury have been reluctant to implement policies and procedures (e.g. Evaluated Receipt Settlement) on a
broad basis that would eliminate the need for receipt entry in all cases. Through our research, we discovered that the
primary reasons behind the Agency lack of compliance are:
 Lack of training as to the importance of the overall process and receipt entry.
 Culture that is unwilling to change.
 Lack of incentives for Agency compliance.
Vendor master makes picking the right vendor or partner difficult
The vendor master for SAP contains approximately 300,000 vendors and was not cleaned when legacy system data
was converted as a part of the initial SAP go live in 2002. Additionally, new vendor names and addresses are added
continuously with no corresponding ongoing effort to remove inactive vendors. As a result, invoice processors
commonly choose the wrong vendor partner for payment. Recently, efforts have been underway to clean up the
vendor master and to begin working with vendors to accept payments at one location. At present, however, neither of
the efforts are project defined with timelines and management aimed at accomplishing the necessary task.
Imaging effort is inconsistent and not a part of the process
Imaging of invoices is done by 5 of 6 Comptrollers and is used only for storage purposes. Treasury also images
invoices and uses the imaged document as a part of their fiscal audit. There is an obvious duplication of effort that
exists with imaging, and a lack of leveraging the available technology within the Agency and Comptroller process.
Invoices are received throughout the Commonwealth
When SAP was first implemented, the project team pushed for each Comptroller to receive all invoices for their
agencies. The Comptrollers complied with this request with the exception of PennDOT, which believed its
decentralized process to be faster and more effective. Over time, the practices of other Comptrollers have changed
where some Agencies change the remit-to address on the PO so that they can receive and audit their own invoices.
The lack of a consolidated point of entry eliminates the ability to use an image of the invoice for electronic routing,
reduces visibility into the process, slows the process because of the mail time required between Agency and
Comptroller, and can create confusion with vendors on whom they should talk to ask questions and resolve issues.
Time is wasted on insignificant dollar amounts, name differences and address differences
The current Agency/Comptroller process has zero tolerance and zero thresholds built in with the exception of certain
services contracts. The SAP configuration has tolerances completely turned off, which causes issues when trying to
match invoices with POs and Receipts. Additionally, the Comptrollers review every invoice presented regardless of
size. Treasury does put thresholds on the dollar amounts of invoices it reviews, but does not allow payments to
process unless the name and address are exact matches to the contract or PO. This lack of process and system
flexibility is a reason for the higher organization requirements.
Invoice audit redundancy
One of the primary reasons that Agencies (and facilities within Agencies) choose to have invoices sent directly to
them is the desire to audit the invoice prior to sending to the Comptroller. The Comptroller then audits the invoice
before it is sent to Treasury, and Treasury potentially audits the invoice before it can be paid. As discussed during the
Workload Analysis section, this redundancy adds significant cost to the process, but does improve the accuracy of
payments.
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Lack of Agency responsibility and accountability
Many of the current practices are in place because Agencies either do not take the responsibility or have traditionally
not been held accountable. As a result, responsibilities that should seemingly reside solely with the agency (e.g. grant
contracts) are also the responsibility of the Comptroller.
Lack of standardized customer service
Each Comptroller is responsible for handling the vendor and agency customer service calls independently. The
vendors, however, may call anyone within the Commonwealth process and may or may not be forwarded to someone
else. The SRM project seeks to improve this somewhat by implementing the first elements of online vendor self
service.
Inconsistent processing of grant applications and agreements
Grants make up a significant amount of the contract and payment volume that is handled within the req-to-check
process. However, there are currently at least 4 existing grant application management systems with additional ones
on the verge of being purchased or developed. The sophistication of these systems varies, but none seem to include
workflow routing of agreements or direct interfaces with SAP. While procurement seeks to be more standardized,
grant management has not been in scope. There has been some effort to address grants from an enterprise
perspective, but progress seems to be limited at this time.
Incomplete procurement or SAP training
As a part of the initial SAP implementation and now the SRM implementation, project team training was developed
and delivered. Process or system training for new hires has been left to the Agencies and has been incomplete. As a
result, frustration exists at the requisitioner level with how to properly use the system and how to properly navigate
through the process.
The training delivery was removed from the IES organization and transferred to the business owners without clear
direction or a transition plan. Training programs were not sustained for new and existing projects.
Comptrollers organized primarily by Agency/mission instead of function
The current organization structure of the Comptrollers does not allow the Commonwealth to fully leverage its
investment in SAP and seemingly creates a higher organizational cost due to the layers of management. Additionally,
a significant amount of time is spent trying to standardize practices across the Comptroller Offices that may be
causing issues for Agencies, Vendors, BOP or Treasury. Outside of the Comptroller’s Offices, which include
Accounting, Auditing and Document Review and Control, the Commonwealth Comptroller organization includes
functional groups for Financial Management, Payroll and Travel and Entertainment and Audits.
As part of the initial SAP implementation and now the SRM implementation, project team training was
Contract process does not always effectively take payment into account
Standardized payment terms, required payment information and a single remit-to address are items that are not
included in many contracts today. DGS BOP does not include someone financial in all negotiations and some of the
important issues that would streamline payment are excluded from agreements.
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7. APPENDIX: ORGANIZATION CHARTS
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