This bulletin announces a new Scheduled Contract Payment (SCP) which:
- Builds on the success of the Quick Pay Process;
- Enables agencies to enter a payment schedule in the CAS at the time the contract is entered;
- Automatically generates contract payments on the scheduled dates without agencies having to prepare, enter and mail hard-copy vouchers to OSC;
- Has been pilot tested successfully by a number of agencies over the past several months, and is now available to all agencies.
The SCP process will benefit agencies and OSC. Please read this bulletin, which serves as an operating manual, and prepare to use SCP. Agencies are encouraged to adopt contract payment terms consistent with SCP in order to take greater advantage of this highly efficient contract payment process.
||This bulletin describes the Scheduled Contract Payment (SCP) process which was implemented on a Pilot basis in July, 1994, and is now available to all agencies entering contracts on the CAS. It also reviews related changes to the Contract Encumbrance Request (AC340).
Since this bulletin serves as an operating manual for the SCP process, it includes numerous exhibits and sub-sections.
|SCP System Overview:
The current system for paying contractors requires agency preparation, entry and OSC audit of a voucher each time a payment is made. In most instances, this process is warranted and provides necessary controls over contract payments. In many other instances, however, payments can be scheduled on the CAS at the time the contract is audited, thereby eliminating the need for separate voucher preparation, entry and audit for each payment.
To streamline processing for those payments that can be scheduled, OSC has expanded the use of Quick Pay electronic certification and has developed a new automated process which:
- Allows agencies to enter in the CAS, a schedule of payments relating to a specific contract;
- Allows OSC auditors to review the schedule of payments as part of their contract pre-audit, and approve, modify or reject any or all of the schedule, with or without affecting the contract and its encumbrances;
- Requires the CAS to automatically initiate daily payment processing, creating voucher payment and charge transactions by matching Scheduled Contract Payment, Encumbrance and Contract Master records to obtain the necessary voucher data (Expenditure and liquidation data is taken from the Encumbrance Master file based on Agency, Contract and Line Number(s) entered with the schedule of payments.)
- Bulkloads these system-generated voucher transactions to the CAS Source Document Data Base (SDDB) in a suspended status so limited data changes can be made online by agencies;
- Prints daily reports on agency printers, listing:
- Error SCP records resulting from the payment initiation process,
- Voucher batches created and awaiting agency correction,
- Voucher batches awaiting agency certification
- Requires agency review/release of these vouchers for processing through the Quick Pay Correction Conversation (Agencies can review and make limited data field additions/changes to the transactions on a new Scheduled Voucher Payment screen.);
- Requires agency certifiers to release vouchers for payment, or reject them, using the Quick Pay Voucher Certification conversation;
- Issues checks on the Scheduled Payment Date for certified vouchers;
- Provides an online inquiry to the Scheduled Contract Payment Master file so agencies and auditors can review contract payments scheduled on the CAS.
|SCP Implementation Guidelines:
The Scheduled Contract Payment process is available only to those agencies that enter their own contracts in the CAS (either via remote terminals or bulkload).
Agencies entering scheduled contract payments must do so according to guidelines established by the Bureaus of State Expenditures and Contract Audit explained below. If an agency prepares and/or enters in the CAS an inappropriate payment schedule, OSC will reject the payment schedule and require agency resubmission.
Agencies can use the SCP process for existing or new contracts that have predetermined, specified payment dates and amounts.
For contracts in which all payments are not predetermined and specified as to date and amount, agencies can include predetermined payments on the SCP schedule and process hard copy vouchers for the other payments. For example, when a lease contract requires payments for utility expenses or escalation, these can be processed as hard copy vouchers while the predetermined contract payments can be scheduled for SCP processing.
SCP can not be used for contracts which are either month-to-month or temporary and lack a definite term.
The SCP process was developed initially for payments made pursuant to a formal contract. However, OSC encourages agencies to consider the SCP process for recurring payments currently not processed as contract payments by entering into "streamlined payment agreements". Such agreements would be entered on the CAS as contracts, but OSC's audit release process would be expedited.
For example, payments made from the Local Assistance account to local governments have traditionally been made without formal contract. However, many of these non-contract payments have predetermined amounts and are scheduled for payment on specific dates. Agencies should review such non-contract programs to determine the feasibility of establishing a streamlined payment agreement in order to use SCP. Agencies should first consult with OSC before developing this type of agreement. Where appropriate, OSC will assist agencies in the development of such an agreement.
OSC encourages agencies to consider entering into contracts with payment terms that will allow utilization of the SCP process. If you have questions on which contracts are suitable for SCP, contact Contract Audit at (518)474-3488.
FORMS The Contract Encumbrance Request form (AC340, Exhibit A) and the new Scheduled Contract Payments form (AC3092, Exhibit B) are explained below.
Agencies should continue to use their existing AC340 stock until it is depleted, entering data as shown on Exhibit C. Agencies interested in printing their own AC340 and/or AC3092 forms should contact the Accounting Information Center at (518) 473-1170 for OSC review.
- AC340 Changes OSC rearranged fields on the AC340 and added a variety of new fields. Some of these new fields (Bids Solicited, Number Rejected, Declined and No Reply) are for auditors' use only. The other new fields (Interest Eligible, IRS Code, Stat Type, Indicator-Statewide, Indicator-Department, Bid Date and Route Code) must be completed by agencies, as appropriate, so they will be available for automated voucher creation. (These fields will also be used to support a future CAS function that will further reduce agency data entry for non-SCP contract payments by allowing agencies to enter Originating Agency, Contract Number and Payee ID on a Voucher Entry screen, and the CAS will fill the screen with data from the corresponding Contract Master record.)
The Contract Data screens in the Contract Entry and Contract Correct conversations were rearranged similarly and include the new fields which are posted to the Contract Master record. Since the new fields are used in system generation of voucher transactions, the data entered in these fields is subjected to the same edits applied to vouchers.
- AC340 Preparation Agencies must prepare AC340 documents as follows.
NOTE: The first three of the following items pertain to fields already on the AC340 which are used in system generation of vouchers and therefore have new forms preparation requirements and system edits.
- Payee ID is required for all new (Action Code A) contract transactions. Payee ID can be changed with a change (Action Code C) contract transaction. Agencies must ensure payee ID in each of their Contract Master records is correct since this will be the source of Payee ID for system-generated voucher payments.
- Payee Address should conform to US Postal Service addressing standards explained in bulletins A-265, A-296 and A-332 and should be the contractor's "Remit To" address if this differs from the contractor's address. This is imperative for SCP contracts since the contract record will be the source of the address to which checks will be mailed.
- State and Zip Code are required for domestic addresses, but these fields must be blank for foreign addresses unless an asterisk is entered in a field to remove previously entered data as explained at the end of this section. When an address is foreign, Route Code 'F' must be entered, as explained later.
- Interest Eligible code is required on all vouchers pursuant to NYS Prompt Payment legislation. It is now required on all new (Action Code A) contract transactions. It is also required on all changes (Action Code C) to existing contracts that do not contain an Interest Eligible code.
- IRS Code, Stat Type, Indicator-Statewide, Indicator-Department codes should be entered as would be applicable on voucher transactions.
- Bid Date should be (1) the date bids are opened, or (2) for contracts not bid, the date a proposal is received.
- Route Code requires agency entry of 'F' if the contractor's mailing address is foreign (even though it's in a block reserved for OSC use). Agencies may not enter any other Route Code.
Also, agencies are able to remove previously entered data from the following fields in the Contract Master file:
Payee ID ADD
Payee Name 2
Street Address 2
State (enter * for foreign addresses only)
Zip Code (enter * for foreign addresses only)
Entering an asterisk (*) in the first position of any of these fields on a contract Change transaction replaces data previously posted to that field in the Contract Master record with blanks.
- New AC3092 A new Scheduled Contract Payments form (AC3092, Exhibit B) has been developed for SCP processing. The AC3092 is required for all SCP transactions. Fields are provided on this form for two types of data:
Additional information for voucher charges pertaining to each scheduled payment is optional, not required for audit, and does not appear on the AC3092. Agencies that choose to enter this charge data with scheduled payments should develop any form deemed necessary for agency operations. Only the AC3092 should be sent to OSC for audit.
- Required data - Payee ID, Action Code, Required Pay Date, Scheduled Payment Amount;
- Optional data - Scheduled Pay Date, Ref/Invoice No, Invoice Date.
- AC3092 Preparation Agencies can Add, Change or Delete Scheduled Contract Payments by preparing an AC3092 and entering SCP data into the CAS either on new screens in the Contract Entry and Contract Correction Conversations, or by submitting SCP transaction datasets to OSC for bulkload. Form AC3092 can only be submitted, and SCP transactions entered, in conjunction with a contract Add or Change transaction on an AC340.
Also, only one AC3092 can be submitted with an AC340. Up to 12 scheduled payments can be entered on one AC3092.
Agencies must prepare AC3092's as follows.
- Payee ID is required on the AC3092 only if Payee ID is not entered on the AC340. When an AC340 is prepared to either add a contract or change the Payee ID on an existing contract, Payee ID is required on the AC340 and should not be entered on the corresponding AC3092 also.
- Action Code must be A (Add), C (Change) or D (Delete).
- Required Pay Date is the date by which the payment must be made according to Prompt Payment Law and is a required field.
For all other contracts or agreements where payments are due and payable after the services are provided, the Required Pay Date is 30 days after the services are rendered or 30 days after the end of the service period covered.
- For contracts or agreements that require payments to be made in advance of services being provided (i.e., real property lease agreements, not-for-profit grant program contracts), the Required Pay Date is the advance payment date stipulated in the contract
It is essential that agencies accurately determine and enter Required Pay Date because:
a. MIR Date for the system-generated voucher will be calculated as 30 days prior to Required Pay Date;
b. The CAS will print the check on the Required Pay Date, unless a Scheduled Pay Date (explained later) is entered;
c. Liability Date on the system-generated voucher will be the same as Required Pay Date.
SCP edits do not allow a Required Pay Date more than two years beyond the current year.
- Scheduled Payment Amount is a required field and must always be a positive amount.
a. When an SCP Add or Change transaction is processed, the Scheduled Payment Amount is the full amount to be scheduled for a particular payment. Note carefully that when processing an SCP Change transaction, this is not an amount to be added to or subtracted from an existing SCP master file amount, but rather it is the amount which will replace the existing SCP master file amount.
b. When an SCP Delete transaction is processed, the Scheduled Payment Amount must be the payment amount currently scheduled in the record that is to be deleted.
- Scheduled Pay Date is optional. It is the date the check will be printed. If Scheduled Pay Date is not entered, the CAS will move the Required Pay Date to the Scheduled Pay Date field.
The Scheduled Pay Date can be up to seven days prior to the Required Pay Date. This allows the check to be signed and mailed so the vendor can receive the payment by the Required Pay Date.
NOTE: The key to the SCP Master file consists of Originating Agency, Contract Number and Scheduled Pay Date. Therefore, agencies will need to know Scheduled Pay Date to change or delete SCP Master records. To change the Scheduled Pay Date, agencies must delete the existing SCP record and add a new SCP record with the correct date. To change other SCP data, agencies must enter the Scheduled Pay Date along with the Required Pay Date if the dates differ.
- Invoice Date and Ref/Invoice No. are optional.
Entering an asterisk (*) in Ref/Invoice No. on an SCP Change transaction replaces data previously posted to Ref/Invoice No. in the SCP Master record with blanks.
- AC340/AC3092 Batching Requirements - The sum of the Scheduled Payment Amounts in the transactions being processed must be added to the Net Amount calculated for the Document and Batch.
|Data Entry Requirements:
The following paragraphs explain data entry/correction requirements for contracts and scheduled payments.
- Contracts The attached Contract Data Screens (Exhibits D and E) for the Contract Entry and Contract
Correction conversations reflect the changes to the AC340. Agencies must enter or correct data on these screens as explained above in 'AC340 Preparation'.
To change data in a Contract Master record to blanks for any field defined in 'AC340 Preparation' (above), the asterisk (*) must be entered in the first position of the data field on the screen.
There are selection options on the Contract Data screens which provide access to screens for entry or correction of Scheduled Contract Payments. Pressing key PF09 displays a Scheduled Payments screen (Exhibits F and G); pressing key PF10 displays a Scheduled Payments with Tail screen (Exhibits H and I). Movement through these conversations allows multiple returns to the document (Contract Data screen) and access to other screens using the PF keys. For example, in the Contract Entry conversation, after completing entry of screen 032 (Contract Data), the operator can press PF03 to go to screen 253 (Charges) and enter transaction data as necessary. Pressing PF03 returns the document screen 032 (Contract Data), and the operator can press PF09 to go to screen 252 (Scheduled Payments) to enter SCP transaction data. Pressing PF03 again returns the document screen 032. Note that the sequence for selecting Charge screens and Scheduled Payment screens is interchangeable; there is no system requirement to enter/correct charges before scheduled contract payments.
When initially displayed, the Scheduled Payments and Scheduled Payments with Tail screens display data from the Contract Data screen in the Originating Agency, Batch No and Contract No fields. These fields are all protected (i.e. can not be altered by the operator), as is the Doc Seq field. In Correction, the Seq field (transaction) is also protected.
If entered on the Contract Data screen (as is required when adding a contract or changing a contract's Payee ID), the Payee ID will also be displayed and protected on the SCP screen, eliminating the need for duplicate data entry. Otherwise, Payee ID must be entered on the SCP screen. The single entry of Payee ID (either on the Contract Data screen or on the SCP screen) will be displayed and posted for all SCP transactions in the document.
Whenever an agency processes SCP add, change or delete transactions, the CAS verifies the Payee ID in the SCP transactions to the Contract Payee ID, providing further assurance that the SCP transactions are recorded for the proper contract.
Other data fields required for each SCP transaction are Action Code, Required Pay Date and Scheduled Payment Amount.
The entry of the required data fields, in conjunction with the Orig Agency and Contract No, is used after audit approval to update a master file of scheduled payments which initiates CAS-generated voucher transactions.
Each SCP transaction allows for entry of Invoice Date and Ref/Invoice No. Refer to the attached exhibits F through I for the placement of the REF/INV# field on the screens, which some pilot agencies found difficult to identify on the system until they had gained some experience in keying SCP transactions.
If entered, this optional data will be carried in the CAS and moved into the system-generated voucher payment transaction for printing on check stubs. However, if a Ref/Invoice No is not entered, the CAS will post Contract Number in the Ref/Invoice No field of the system-generated voucher, subject to agency override at the time the agency reviews the voucher online.
The SCP process also allows an optional entry of data for up to 6 charges (with or without tail information) per scheduled payment. On Screens 252 and 258, the fields for entering the 6 charges are arranged in 2 groups of side-by-side columns, and the cursor will move from the first row of the left-hand column to the first row of the right-hand column, then to the second row of the left-hand column, and so on. This accommodates fitting 3 Scheduled Contract Payments, each with up to 6 charges, on one screen. It is not required that the charges be keyed in any particular occurrences of the charge code (i.e., three charges may be keyed in the left-hand column rows only; if more charges are to be added to this example, though, the operator will need to tab back to blank charge fields in the right-hand column).
Charge data is identified to the SCP process by keying the Encumbrance Line Number for the charge. These Encumbrance Line Numbers are later used as the source of Cost Center coding for the automatic creation of charge transactions for the SCP payment process.
Note that if charge data is not entered with SCP data, it will have to be entered during agency online review of system-generated payments.
Entering an asterisk (*) in one of the following fields on an SCP Change transaction replaces data previously posted to that field in the SCP Master record with blanks:
Accum - Department
Accum - Statewide
Charge Tail (Optional Code)
The optional entry of charge data in the SCP process has been designed to reduce keying in two ways.
- Less keying is required for voucher charge data. Currently, agencies enter cost center and object coding (up to 17 positions) on encumbrance transactions. Only the 3 position encumbrance line number is entered in the SCP process; when the voucher is automatically generated, the Encumbrance Master record will be accessed to obtain the coding for the charge transactions, eliminating the need to re-key the coding. (If necessary, charges can be added, changed or deleted when the agency reviews the system-generated voucher online.)
- A new "Duplicate Trans" feature has been developed for the SCP process which allows an operator to automatically display a scheduled payment transaction identical to the last displayed transaction except for the Required Pay Date and the Scheduled Pay Date. Agencies are required to enter these dates on each transaction. This feature is especially useful for scheduled payments that have multiple charge transactions and/or tail coding.
Transactions are duplicated on the Scheduled Payment screens by pressing key PF07 after the operator has entered a transaction to be duplicated. There is no required positioning of the cursor to initiate Duplicate Trans; any positioning on the screen is acceptable. The new transaction will duplicate only the data in the last transaction displayed when key PF07 is pressed. On screens 252 and 258 (Scheduled Payments) the transaction to be duplicated will be the last of the three possible transactions entered on the screen. Thus, if there are 2 or 3 transactions entered on the screen, only the last transaction in the sequence will be duplicated. On screens 034 and 035 (Scheduled Payments with Tail) only one transaction occurs on each screen. Therefore, the transaction to be duplicated will always be the one displayed on the screen when key PF07 is pressed.
In addition to entering the Required Pay Date and optionally a Scheduled Pay Date, any data field can be added to or changed in the new transaction.
- Other SCP Data Entry Points
To change data in an SCP Master record to blanks for any field defined in 'Optional SCP Data' (above), the asterisk (*) must be entered in the first position of the data field on the screen.
The limit of 12 SCP transactions with one contract transaction is controlled by a CAS edit applied when the batch is recapped and released. If more than 12 active SCP transactions have been entered/duplicated, the transactions do not process and a new error message, #211-TOO MANY TRANSACTIONS, prints on the BCL. This error can be corrected by accessing the SCP transactions in the Contract Correction conversation and deleting any transaction which has been entered inappropriately.
- Bulkload Agency Input Guidelines for Bulkload Files were revised to reflect these changes and were mailed to agencies that bulkload transaction files.
|OSC Audit Capabilities:
Upon receipt of a contract batch with an error-free BCL, OSC will audit the contract including the new data fields on the AC340.
When form AC3092 is attached to the AC340 and contract documents, the scheduled payment transactions are also audited for compliance with contract terms.
Online options available to OSC auditors for SCP are:
- Change Required Pay Date;
- Add or change Scheduled Pay Date;
- Reduce the Scheduled Payment Amount. (Reducing the Scheduled Payment Amount to zero results in no further processing for that transaction. This is the method OSC will use to prevent processing of a particular SCP transaction while still allowing other SCP transactions on the document to process.);
- Accept all SCP transactions on the document;
- Reject all SCP transactions on the document.
- The CAS does not allow audit approval of contract adds/changes unless all associated SCP transactions have been audited. Therefore, failure to include Form AC3092 with Form AC340 when SCP transactions are entered on the CAS will result in delays in the contract approval process.
|CAS Inquiry and Reporting
The selected SCP Master record is then matched to Contract Master records to verify that the payment is for a valid, active, audited contract, with a Payee ID that matches the Payee ID in the SCP Master. Failure of any of these matches/edits prevents voucher transactions from being created. When such errors occur, they are identified on a new daily report, SCP Payments In Error (VOU911, Exhibit N), which will print on the agency's printer. An error prints on the VOU911 only on the date the SCP record is selected for the system-generated vouchers process. VOU911 prints only when the agency has one or more SCP Master records that fail the matches/edits.
For contract payments identified on the VOU911 which require agency payment in spite of CAS rejection, agencies must prepare and send hard copy vouchers to OSC using new Batch Type 'VSM'. (See 'Processing a Voucher Against a Contract with SCP's', below.)
For each SCP Master record passing all the matches/edits with the Contract Master file, voucher transaction(s), document header and batch header records are created. One payment will be created per document and batch. Batch number and document number are assigned by OSC; both are prefixed with 'Z'. Batch Type is 'VSP'.
NOTE: Agencies must discontinue any use of 'Z' as the first position of batch number to ensure no duplicate batch number can occur when OSC creates VSP voucher batches. If a duplicate exists on the SDDB, the VSP batch will be rejected by the system and the agency will have to prepare and send to OSC a hard copy voucher.
VSP batches are loaded to the CAS Source Document Data Base in a suspended status. This means that they are at Entry level, accessible through the Quick Pay Voucher Correct conversation, and no expenditure postings will have occurred. (See 'Agency VSP Correction', below.)
At a minimum, the VSP batch has a payment (transaction 302) record comprised of data entered and carried in the SCP Master record or in the Contract Master record.
Additionally, for each voucher charge entered with the SCP payment data and carried in the SCP Master record, a voucher charge (transaction 304) record is created. The Encumbrance Master file is accessed to obtain the charge data.
The Standard Voucher (AC92, Exhibit P) identifies the data source of each field on a system-generated VSP voucher.
Two new daily reports will print on agency printers. The VSP Batches Awaiting Agency Correction (VOU910, Exhibit Q) alerts an agency to any VSP batches created and awaiting agency correction action. VSP Batches Awaiting Agency Certification (VOU915, Exhibit R) alerts an agency to any VSP batches corrected, released and awaiting agency certification action.
The VOU910 and VOU915 reports include contract and payee information so agencies can identify system-generated batches before accessing them online.
Each of the reports prints only when the agency has VSP batches at the appropriate level of processing.
A new master file of Scheduled Contract Payments has been added to the CAS. Each audit-approved SCP transaction with an amount greater than zero adds, changes or deletes a record on the SCP Master file. These SCP Master records provide the basis for the CAS to automatically initiate payment processing. Agencies are able to review data in the SCP Master records through a new online Inquiry conversation.
The new Scheduled Contract Payment Inquiry is available on Menu 016. Choosing the SCP Inquiry displays Select screen 272 (Exhibit J). Entering Orig Agency and Contract on the Select screen displays Browse screen 273 (Exhibit K) which lists up to 12 payments scheduled for the contract and some of the pertinent data for each payment. Also displayed is a message indicating whether there are additional records to be displayed. When there are additional records, pressing Key PF09, PG FWD, will display up to 12 more scheduled payments.
Complete data for a scheduled payment can be accessed in either of two ways:
- By entering Orig Agency, Contract and Scheduled Payment Date on Select screen 272, or
- By entering the sequence number for a record listed on Browse screen 273.
Selection of a specific scheduled payment record displays Detail screen 274 (Exhibit L).
The Contract Inquiry Detail (screen 431, Exhibit M) was changed to display the data fields now included on Form AC340 and on the Contract Data screens in the Contract Entry and Correction conversations.
A new SCP IND field is also displayed. SCP IND, to be maintained by OSC, will be 'N' if the contract has no Scheduled Payments, 'Y' if the contract has Scheduled Payments.
- System- Generated Vouchers
A new daily CAS process creates voucher transactions. The CAS selects each active SCP Master file record due to be paid in 14 calendar days or less. The status of every record selected is changed to "deleted".
The Quick Pay Voucher Correct and Certification conversations have been changed in a number of ways to facilitate agency correction and certification of VSP batches.
- New Batch Type VSP is allowed.
- New Scheduled Voucher Payment screen 497 (Exhibit S) has been added to display VSP payment and charge transactions.
- Certain VSP payment data fields are protected from data being entered or changed in the Correct conversation.
- Edits that limit the dollar amount that can be processed through Quick Pay are not applied to VSP vouchers.
- Each VSP voucher must be displayed in the Quick Pay Voucher Certification conversation before it can be Recapped and Released for payment.
Agencies are required to take system action in a timely manner for every VSP batch appearing on either the VOU910 or the VOU915.
All individuals presently authorized to enter or certify vouchers under the current Quick Pay Voucher process are automatically authorized to enter or certify VSP batches. Agencies should be sure to have trained backup personnel available with valid operator ID's for both the correction and certification of VSP batches. Backup is necessary to help avoid delays in processing VSP batches. Due to the large dollar value of some scheduled contract payments, interest calculated on a late payment can be significant.
Each VSP batch that appears on the VOU910 report must be accessed by the agency in the Quick Pay Voucher Correct conversation, recapped and released for processing. Entry of a VSP batch number on the Select screen displays the Scheduled Voucher Payment screen.
On this screen, these fields can not be added or changed:
|Interest Eligible Indicator
||Payee Name (1&2)
|Payee ID (and Additional)
Fields that are protected in all Correct conversations (e.g. Orig Agency, Batch No, etc.) are also protected on this screen.
The Scheduled Payment amount (1st Payee Amt field) can be changed, but can only be decreased.
The CAS voucher creation process posts "SCHEDULED PAYMENT" in the Description field, thus eliminating the need for agency entry. Agencies are free, however, to change this description. Also, a 'P' is automatically posted to the F/P of every charge transaction created.
Other Payment data and all Charge data can be added/changed as the agency deems appropriate. More Charges, Charges with Tails and/or Invoices screens can be accessed using PF Keys.
Any VSP voucher that should not be paid must be deleted.
When the review and any correction or rejection action is completed, the operator must Recap and Release the batch for voucher processing. Unless the voucher was deleted, standard voucher edits will apply and, for error-free vouchers, expenditure posting updates will occur.
When the batch has successfully processed (i.e. the BCL is error-free) it will no longer be selected for inclusion on the VOU910 report. No further CAS processing occurs for deleted VSP vouchers.
The VOU915 report lists all VSP batches that are ready for agency certification. The certification and rejection processes for batch type VSP, while similar to those for batch types KPV and KTV, will require display of screen 483, Voucher/Payment, for agency review before a payment can be certified.
For every VSP batch, even if the voucher is rejected, it is necessary to press PF05 to Recap and then ENTER to release the batch. A batch continues to be listed on the VOU915 until the certification or rejection has been fully processed.
- Processing A Voucher Against A Contract With SCP's
There will be occasions that arise requiring agency preparation of a hard copy voucher to make a payment when a contract has Scheduled Contract Payments. For example, an SCP Master record may fail the matches/edits process for creating a voucher. This will be noted on the VOU911 (as explained above in 'System-Generated Vouchers'), and the system at this point can not generate a voucher. If a payment must be made, the agency must prepare a hard copy voucher.
As mentioned in the 'SCP Guidelines' section, agencies are also required to process hard copy vouchers for payments that are not predetermined and specified as to date and amount, such as lease escalation or utility expense payments.
When processing these hard copy vouchers, agencies must include a complete description and explanation for the necessity of the unscheduled payment.
Whenever a hard copy voucher must be processed, use new batch type VSM and the regular Voucher Entry/Correct conversations, not the Quick Pay voucher conversations. This will alert OSC auditors to the existence of scheduled payments for the contract. Any batch type other than VSM will be rejected in the CAS if there are scheduled payments for the contract.
Section 3.0250 of the Controls and Special Procedures Manual explains internal controls required for processing disbursements. Review these controls and take steps to ensure they apply to payments made under the Scheduled Contract Payment process, as well as the Quick Pay and regular voucher processes.
Since the SCP process requires no paper vouchers or invoices to be sent to OSC, the following internal control points deserve special attention from agencies.
- Review the daily VOU065 reports to verify that only authorized payments have been processed.
- Develop effective audit trails to source documents for VSP Vouchers. Source documents will be required by OSC for post-audit.
- Retain Certification BCL's for a minimum of 3 years. These provide a hard copy record of the name and operator ID of the agency certifier. This information will be retained on magnetic media by OSC.
- Adhere to all controls for terminal and password security, as explained in "Security Users Guide" (Security Series Number 2, mailed to all system users) and in "Policies and Procedures for Remote Agencies" (Security Series Number 6, mailed to Agency Security Coordinators). Agency finance officers are responsible for ensuring that no employee can perform both correction and certification of VSP Vouchers.
||Direct questions on this bulletin to the Accounting Information Center at (518) 473-1170.