RSM 3, Section 1200: Payments

Updated: 07/23

1201 Terminology

For purposes of DORS policy and procedures in this section, the terms "bill" and "invoice" are used interchangeably. Whether called a "bill" or "invoice" the vendor’s request for payment must meet the requirements stated in Section 1206.

1202 Credit Card Payments

Purchases made with a credit card for a participant must be recorded in AWARE™. This is handled through the issuing of a Vendor authorization (see Section 1100). Credit Card transactions will be handled in the following manner:

1. The counselor will draft a Vendor authorization to be used as a request to the supervisor to charge the item. Authorizations are to be developed in accordance with Section 1103.

2. The supervisor will review the case record. Upon approval to purchase item/items, the supervisor will issue the authorization.

3. Upon completion of the credit card transaction, the authorization number will be entered on the Cardholder’s Activity Log under the column "For Acct Use Only PO# Site." The support staff will enter the payment information into AWARE™ as follows:

1. Select appropriate participant; select "Pages" command button, then select "New Payment."

2. Payment information is to be filled out in the following manner:

• Action – Set to Final
• Invoice Number – Client’s name
• Invoice Date – Date on sales slip
• Invoice Received Date – Date on sales slip
• Payment Amount – Total amount on sales slip

4. The Cardholders Activity Log will be forwarded to the Regional Fiscal Associate who will verify that the payment information in AWARE™ is correct and that all invoices are included with the statement and the log.

   Credit card payments are released automatically from the Authorization Module in the overnight batching process. No additional action by staff is necessary in order to accomplish this release.

5. Once the review of the payments is complete, the regional fiscal associate will forward the Cardholder’s Activity Log and supporting documentation to DORS Procurement for final processing.

1203 Recurring Payments (M&T)

Recurring payments are set up in AWARE™ to be processed every two weeks, according to the established payment schedule (see Attachment 1100-1).

1203.01 Confirmation or Cancellation of Payment

The counselor is responsible for running an "Open Recurring Authorization Report" and reviewing their list of participants to determine whether or not a payment should be sent. Payments that are to be sent should have the counselor’s initials and the date by the participant’s name. For those payments that will be cancelled, the participant’s name will have a single line crossing out the information.

Note: Any recurring payment that is not made must be cancelled in AWARE™. The system does not allow for payments to skip.

1203.02 Open Recurring Authorization Report

The Open Recurring Authorization Report is generated in the following manner:

1. From the Case Search screen, pull up the caseload.

2. Select the "Reports" command button, then select the "Case Management Reports" group from the Report Search page.

3. Select "Open Recurring Authorization Report." This will electronically display the report.

4. Print the report.

5. The counselor shall initial and date beside the participant's name if the payment is to be sent.

6. The counselor shall draw a line through the name of participants on the list who are not to be paid.

7. Counselors with both VR and IL cases will need to do this for each case type.

8. Signed reports are to be faxed to the DORS Accounting Branch at 410-554-9248. The reports are due to DORS Accounting Branch on or before the due date specified in the DORS’ payment schedule (see Attachment 1100-1).

Note: Open Recurring Authorization Reports not received by the due date will result in payments not being released by DORS Accounting Branch.

1204 Procedures for Payments Involving Petty Cash

1. No Invoice – Petty cash purchases are used in emergency circumstances and for certain purchases when the vendor does not accept a DORS authorization and requires a check prior to provision of the good or service. Therefore, vendors should not submit invoices or bills for the good or service, since prepayment has been made.

2. Petty Cash Procedures – Once an authorization has been approved by the Regional director a payment must be made in order to complete the process. The following steps are to be taken:

1. Support staff will select the appropriate client from the Participant Module in AWARE™. Then select the "Pages" command button and select "New Payment."

2. On the Payment screen, from the pull down menu select "Final Payment."

3. Invoice Number – Enter the clients name; last name first, first name last.

4. Invoice Date – Enter date that authorization was signed by Regional Director.

5. Invoice Received Date – Enter date that authorization was signed by Regional Director.

6. Payment Amount – Must equal the amount of Petty Cash requested.

7. Select "Close."

8. Do not fax any documents to DORS Accounting. MSDE will send documentation to DORS Accounting after petty cash check has been written.

1205 Time Frame for Payment of Invoices

The Maryland State Department of Education, Division of Rehabilitation Services (DORS) is committed to the immediate payment of invoices for goods and services purchased on behalf of individuals served or for the administration of the program. This is in fairness to the vendors who have provided goods and/or services and to assure that vendors are able to continue to do business with the state.

The State of Maryland requires that invoices be paid within 30 days of receipt. To assure that vendors receive payment within that time frame, DORS staff must initiate the process as soon as invoices arrive. Unless there are extenuating circumstances as described later in this section, DORS staff must process invoices for payment within 24 hours of receipt.

1206 Specifications for Invoices

DORS staff will advise vendors that bills/invoices must be prepared to include the requirements listed below, and that incomplete or inaccurate invoices will likely result in delays in payment (see Section 1205). Vendors must be advised that statements (balance forward or balance due) are not acceptable as invoices and will not be processed. All invoices must meet the requirements of the Comptroller of the Treasury R*Stars Accounting Procedures Manual (section 3.1.5). Therefore, invoices must:

1. Be made out to the Division of Rehabilitation Services.

2. Include the vendor’s name, remittance address, and federal taxpayer identification number. (If the vendor does not have a federal identification number, include the vendor’s Social Security Number).

3. Include the participant’s name.

4. Describe the details of the goods and/or services provided, including the date that the goods and/or services were rendered and the date of the invoice.

5. Include the authorization number.

6. Include an invoice number. Note: if there is no invoice number, the vendor is to be contacted and informed that a number is required for every invoice.

7. Be sent (via fax or use of Invoice & Report Portal) to the DORS office which originated the Authorization/ Purchase Order. In limited circumstances, a DORS office other than the originating office may be the recipient of the invoice.

8. Reference only one Consumer per invoice.

1207 Procedures upon Receipt of an Invoice

All invoices are to be submitted electronically, utilizing the DORS Invoice and Report Portal or office fax. Upon receipt, designated staff will:

1. Save the invoice in an office designated electronic drive.

2. Electronically "stamp" the invoice with the date the invoice is received in the office Invoice e-mail inbox. The stamp shall include the receipt date and time, name of the staff processing the invoice, and the Authorization number.

3. Review the invoice and any supporting documentation to verify accuracy and agreement with the authorization. If the bill is not accurate, is submitted substantially later than the vendor’s invoice date, and/or does not agree with the purchase order, see Section 1208.02, Disputed Bill Stamp Procedures.

4. If the vendor’s name and/or address on the invoice is different from that on the authorization:

1. A change in vendor information cannot be made based on a phone call or email, but rather requires an IRS form W-9 submitted with the invoice to DORS Administrative Headquarters.

2. Disputed bill stamp procedures apply (see Section 1208.02).

3. The vendor must be immediately contacted regarding the need for an updated W-9 form and a re-submitted Invoice. Document in AWARE™ as to the delay in processing.

1208 Processing Invoices for Payment

1208.01 Invoice Payment Procedure

1. After the invoice has been date stamped, the designated counselor will review the invoice for accuracy of the items or services being billed for, and supporting documentation. The counselor will electronically sign and date the invoice to verify receipt of items or services and forward the invoice to supervisor (or other designated office staff) for approval of payment.

2. If the vendor’s invoice indicates an item is more than 10% above the authorized amount, the Counselor (or Supervisor) will need to amend the authorization to reflect the increase in cost above the authorized amount for that item. The 10% increase is by line item not the total of the authorization. (To amend an authorization refer to Section 1106.)

3. Supervisor will review, electronically sign and date the invoice, and forward to support staff for entry into the AWARE™ case management system.

4. The support staff will enter the payment data into the AWARE™ case management system. Support staff will select the appropriate participant from the Participant Module in AWARE™. Then select the "Pages" command button and select "New Payment."

   To enter payments in AWARE™:

1. On the Payment screen, if there is more than one item on the authorization, the proper item must be selected by using the "Select Item" button and choosing the correct item. AWARE™ processes payments by line item, therefore each item must be paid separately.

2. From the pull down menu select either final or partial payment; the system will automatically default to partial payment. Final payment will cancel any remaining balance for that line item.

3. Enter the invoice number. Acceptable entries include the following:

• The vendor’s invoice number.
• The patient account number, if the vendor is a physician or psychologist or other like-vendor who does not use an invoice numbering system.

4. Enter the vendor’s invoice date in the Invoice Date field; use the date on the invoice provided by the vendor. (If the invoice is received by the DORS office more than seven calendar days after the invoice date, the dispute bill stamp procedures apply per Section 1208.02. Save all electronic documentation which indicates the date the invoice was received by DORS and attach in the AWARE™ case file. This information can be used to document any discrepancies in dates.

5. Enter the office "received" date in the Invoice Received Date field. This date cannot exceed seven calendar days beyond the invoice date unless the invoice is being disputed.

• Example: An invoice is dated April 1st and the office date stamp is April 4th, then the invoice received date in AWARE™ is set at April 4th.

6. Enter in the amount of the payment.

• Do not use the dollar sign ($), but do use decimal points and zeros (e.g., 25.00).
• If the payment is less than the amount authorized and Final payment has been selected; AWARE™ will automatically cancel the remaining balance for that line item.

5. Invoices are to be electronically placed in the appropriate Regional or Office DORS Accounting folder at the end of each day. All invoice accounting folders are located under the "+Accounting AWARE Bill Pay" folder, which is located on the DORS H:Drive. Supporting documents are to be attached in the AWARE™ case file.

   NOTE: When submitting an invoice for books and/or supplies from a college or university, a receipt with the list of books/supplies needs to be included as part of documentation.

6. The original stamped invoice and all accompanying documentation shall be attached to the consumer's file in AWARE™. This is necessary to document payment for services provided and is subject to review by management and auditors.

   NOTE: For disability-related accommodations regarding the processing of invoices, please consult with the office Director.

1208.02 Disputed Bill Stamp Procedures

1. Purpose – The purpose for using the disputed bill stamp procedures is to clearly indicate when an invoice cannot be processed within the usual time frames. These procedures also confirm why the delay occurred and, when appropriate, establish an adjusted date from which to determine if invoice payment standards have been met.

2. When to use the disputed bill stamp – The disputed bill stamp is to be used in the following three instances:

1. When an invoice is received more than seven calendar days after the "invoice date" provided by the vendor. This might occur if a vendor prepares an invoice and then holds it before submitting it. In these instances, print the email message associated with the invoice, and attach it to the invoice when processed.

2. When a problem with an invoice arises which is caused by the vendor, such as missing or incorrect vendor address, missing or incorrect vendor identification number, or miscalculated invoice amount. It is not to be used when the problem is the result of an error or failure to follow procedures by DORS staff.

3. When there is a dispute about the goods or services ordered, such as missing or damaged goods, incomplete services, documentation does not support the invoice, or pending inspection report for a residential modification project.

3. Procedures:

1. "Disputed Bill" is to be electronically stamped on the front of the invoice in the spot that is least likely to obscure important information.

2. A concise, informative explanation of the nature of the problem is to be written. For invoices received by DORS more than seven calendar days after the invoice date (see b.1 above), staff will type "other: delayed receipt, message attached" and fax a copy of the email message with the bill to Accounting to document the received date.

3. When the dispute involves only receipt of the invoice more than seven calendar days after the "invoice date" (that is, the only problem is late receipt of the bill rather than other issues described in b.2 and/or 3 above), the "date corrected" will be the date the invoice was received in the office and the date used in AWARE™. DORS staff will initial and date the disputed bill stamp and immediately process the bill, with its attached email message, for payment.

4. When the dispute involves vendor error/omission on the bill or issues related to the goods or services (i.e., those described in b.2 and/or 3 above) and the dispute has been resolved:

   1. The date of resolution ("date corrected") and the initials of the person furnishing that information is to be recorded in the area provided on the disputed bill stamp; and

   2. The original date of receipt of the invoice on the front and back of the invoice is to be clearly crossed out, but not obliterated; and

   3. A new date (the same as the date of resolution/date corrected) is to be stamped on the front and back of the invoice. The new date should be stamped next to the original date stamp, if possible. If there is insufficient room to do so, it may be placed anywhere on the front of the invoice. In all cases of disputed invoices, interactions with the Vendor need to be documented in an AWARE™ Case Note.

1208.03 Special Circumstances

The following special circumstances require specific instructions but should not delay the invoice payment process and do not involve the use of the disputed bill payment process.

1. One invoice received for two or more consumers on two or more authorizations:

   Contact the Vendor, requesting separate Invoices be created and then re-submitted for each Consumer.

2. Two fiscal years covered by one bill:

1. Write the authorization number next to the item that is in previous fiscal year and pay against existing authorization and;

2. Generate a new authorization for remaining items for the current fiscal year, copy invoice and write authorization number next to the item that is being invoiced.

3. Paying invoices on recreated authorizations:

1. If the invoice has the original authorization number referenced on it, electronically strike through the original authorization number and electronically type the new authorization on the invoice.

2. If the invoice has no authorization number referenced on it, simply electronically type the new authorization number on the invoice, and send a reminder to the vendor that authorization numbers are required on all invoices.

4. One invoice received requiring payment from two or more authorizations for the same consumer.

1. Make a copy of the invoice for each authorization.

2. Stamp each copy of the invoice as an original.

3. Process payment for the services under each authorization separately.

4. Line out items that are not to be paid by the authorization.

5. Line out the original total and write in the new amount to be paid.

6. Handle all payments separately.

5. Invoice received for missed or broken appointment:

   See Section 1104.11, Authorizations for Missed Appointment Fees.

11208.04 Submitting Processed Invoices to DORS for Payment

At the end of each business day each DORS field office will submit invoices to the DORS Accounting Branch those invoices that have been processed that day in AWARE™. The invoices are electronically placed in the Accounting folder "+Accounting AWARE Bill Pay" on the H: drive. For invoices which are being disputed, a copy of the dispute stamp and any supporting documentation will be sent to the DORS Accounting Branch. Original copies of the invoice will be kept with the file.

1208.05 Original Invoice

After the accuracy of the invoice has been verified, the invoice processed for payment, the original invoice will be attached in the AWARE™ case record.

1209 Non-Payment of Invoice Inquiries and Requests for Copies of Canceled Checks

When a vendor makes an inquiry about payment(s) due, DORS staff shall:

1. Clarify the usual procedure and timelines for expecting payment.

2. In AWARE, search for the Authorization "Enter Date" and the "Paid Date" for the invoice in question. This informs staff a date the invoice payment was entered, and a date the payment was released by the DORS Accounting office.

3. If there are continuing problems regarding payment of an invoice, the staff person will contact the fiscal specialist or the branch chief of fiscal operations for assistance. The fiscal specialist or branch chief will further explore the issue, verify whether a payment has been made (via access to FMIS) and, if needed, will obtain a copy of the check.