BOP Program Statement 8532.08 § 8

paying invoices must be routed to the payment office for

consolidation and assembly of the payment voucher. The

centralized disbursement office is responsible for ensuring

payments are made timely and accurately.

PS 8532.08

3/15/2002

Page 16

a. Document Flow. To ensure compliance with the CFR

provisions relating to prompt payment, it is imperative that all

documents pertaining to payments be received and accepted in a

timely manner. Therefore, the normal sequential flow for receipt

of the basic documentation follows:

(1) Contract or Purchase Order. The Contracting Official

will forward a copy of the purchase order or contract generated

in the Material Management session to the Business Manager or

designee. However, in the Central Office, the purchase order or

contract must be provided to the FMB Accounts Payable Supervisor

or designee. A suspense file is to be created and maintained for

these documents until the receiving report and invoice for

payment are received.

(2) Receiving Report. In accordance with prompt payment

guidelines, the goods and/or services must be accepted promptly,

unless otherwise designated on the contract. At the institution

level, if a receiving report is required, a warehouse staff

member or designated DEO is to enter information creating a

receiving report into the integrated system documenting receipt

and acceptance immediately. However, at the Central Office

level, the FPI Controller must designate an employee to perform

the “receiving” function, since there is no warehouse capability.

A signed copy of the “screen print” receiving report is to

be provided to the Business Manager or FMB Accounts Payable

Supervisor or designee within 48 hours after acceptance.

The receiving report must be filed in the applicable

contract or purchase order suspense file until receipt of the

vendor’s request for payment (invoice).

(3) Receiving Report not Required. If a receiving report

is not required (i.e. services) the Business Manager or designee

and FMB Accounts Payable Supervisor or designee must make the

following certification on the invoice and obtain a signature of

a staff member who has knowledge of receiving the goods and/or

services.

“I certify that the goods or services indicated on this

invoice were received or performed on Date and that

this invoice is proper for payment.”

_________________________________

Signature

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(4) Invoice. The AW(I&E)/SOI and the FMB Financial Manager

are responsible for ensuring that all incoming invoices received

via mail are provided to the Business Manager and/or FMB Accounts

Payable Supervisor, respectively. FPI locations may accept

invoices via facsimile (fax) when necessary to facilitate payment

processing. However, the invoice must be certified by a UNICOR

staff member certifying the invoice is an original copy.

The Business Manager and the FMB Accounts Payable Supervisor

or designee must date stamp invoices immediately upon receipt and

review them within seven days to determine if they are proper. A

proper invoice must include:

< vendor name, invoice number and date, account

number;

< government contract or purchase order number;

< description, price and quantity of goods and

services rendered;

< shipping and payment terms, if applicable; and

< contact name, title, and telephone number

In addition, the prompt payment guidelines also require the

vendors Tax Identification Number (TIN) and banking information

be provided on the invoice. In order to avoid the potentiality

of compromising sensitive information, FPI has established

alternate procedures for obtaining this information from the

vendor. Each vendor conducting business with FPI is now required

to submit banking information to the Contracting Officer on an

Automated Clearing House (ACH) Vendor/Miscellaneous Payment

Enrollment form during the procurement process.

However, the FMB, ACH Coordinator is responsible for

updating and maintaining banking information for vendors rejected

during the payment process, due to erroneous information in

accordance with procedures established in this PS’ section on

“validation of vendor ABA numbers.”

(5) Improper Invoice. Invoices must be reviewed promptly,

but no later than seven days from receipt to determine if they

are proper. If the invoice is determined to be improper it must

be returned to the vendor by the seventh day. A written

explanation detailing the reasons why the invoice is being

returned and a request for a corrected invoice must also be

included.

(6) Lost or Destroyed Invoice. If the original invoice is

lost or destroyed, a “duplicate” invoice must be requested from

the vendor. When the “duplicate” invoice is received, it must be

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3/15/2002

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annotated with “certified original.” In addition, the Business

Manager must:

< provide a written explanation surrounding the

circumstance of the lost or destroyed invoice and

steps taken to avoid a duplicate payment;

< review the “Vendor Line Item Display” transaction

for the applicable invoice number and/or dollar

amount;

< review the suspense file to determine if the

invoice had been previously received and mis-

filed; and

< review the paid vendor file for the invoice.

These statements must be included as support documentation

for the payment voucher.

(7) Invoice not Required. Vendors are not required to

submit invoices for recurring payments, fixed amounts and/or

payments for services such as rents, maintenance of equipment,

pagers, cellular phones, etc. These payments are made at fixed

periodic intervals (i.e. monthly, quarterly, etc.) and are

referenced on the obligating document (i.e. purchase order,

contract).

The Business Manager and FMB Accounts Payable Supervisor or

designee must establish and maintain a log for each recurring

payment in the vendor file.

(8) Electronic Invoices. Vendors may request authorization

to transmit invoices electronically (i.e. via computer) instead

of submitting a “written” or “original” paper document. The

Business Manager must contact the FMB Controller or Deputy

Controller to determine if adequate safeguards and controls exist

before transmission can be authorized.

b. Assembly and Review of Payment Vouchers. The DEO is

responsible for ensuring the compiled “payment voucher” includes

all the basic documents (i.e. purchase order, receiving report,

invoice) from the suspense file and any other documents relating

to the payment (i.e. credit memos, etc). In addition, a Voucher

Payment Cover form (Attachment A) must be completed and attached

to the front of each voucher payment.

An approving official must pre-audit the payment voucher prior

to entering it into the integrated payment system, via invoice

verification.

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The Accountant or Accounting Technician can be designated as an

approving official for payment vouchers. The Approving Official

must review all the documents included in the payment voucher in

accordance with guidelines established in the section on “Pre-Audit of Disbursement Vouchers”.

Upon completion of the pre-audit, the complete voucher is

routed to the DEO for entry into the integrated payment system.

The Business Manager and/or Accounts Payable Manager is

responsible for ensuring payment is made for goods and/or

services received for his or her specific location. Therefore,

each month the Business Manager must review the Goods

Receipt/Invoice Receipt report and verify the validity of all

open items exceeding 30 days. The report should be initialed and

any vendor contacts must be maintained on a log.