Authority
Florida Prompt Payment Act, Chapter 218.70, State of Florida Statutes

Objective
To establish policies and procedures, in accordance with the Florida Prompt Payment Act. This act, governing financial matters of local government, their institutions and agencies, provides that payment for all purchases by local governmental entities be made in a timely manner; and that the entities specify requirements for a "proper invoice" and make such requirements available to vendors; and that the entities establish dispute resolution procedures in cases of such disputes concerning payment of an invoice.501.03 General Statement It is the policy of the City of Tallahassee to fully implement the provisions of the State of Florida Prompt Payment Act which requires compliance with the following:

1. Adopting by formal action the requirements for a proper invoice;
2. Informing all City vendors of the City's requirements for a proper invoice as defined in this policy;
3. The prompt payment of proper invoices non-construction services within 45 days of the payment due date which is the date they are stamped as having been received by the chief disbursement officer who, for the purposes of this policy, is the supervisor of the Accounts Payable Section of the Finance Department;
4. The prompt payment of proper invoices for construction services within 20 business days of the date the invoice is stamped as being delivered to an agent, employee or facility of the City.
5. Notifying vendors within 10 days of the receipt of improper invoices as to what corrective action is needed to make invoices proper;
6. When proper invoices are not received for specific reasons (e.g., contract provides dates of payments or partial deliveries, rental property, etc.), the establishment of procedures for calculating payment due dates according to the Prompt Payment Act, with prompt payment being made within 45 days of these calculated dates for non-construction services and 20 business days for construction services.
7. Establishing procedures whereby (1) each invoice shall be date stamped on the date it is first delivered into the hands of an agent or employee or to an office or facility of the City; and (2) all invoices and/or other documents required for prompt payment shall be date stamped upon their receipt by the Accounts Payable Section of the Finance Department for the purposes of calculating payment due dates; 
8. Establishing a process for the timely resolution of disputes on payment obligations;
9. Ensuring that no purchase for which federal funds are intended to be used for payment shall be made without reasonable assurance that federal funds to cover the cost thereof will be received. Where payment or the time of payment is contingent on receipt of federal funds or federal approval any contract and any solicitation to bid shall clearly state such contingency;
10. All other requirements that may not be specifically delineated above.

501.04 Scope and Applicability 
This policy applies to any and all departments related to the external procurement of goods or services for the City of Tallahassee.

501.05 Definitions
For the purposes of this policy, the following terms shall be defined:

1. Construction Services - all services performed in connection with the construction, alteration, repair, demolition, reconstruction, or any other improvements to real property that requires a license as a construction contractor or electrical or alarm system contractor under parts I and II of hapter 489, F.S.
2. Date stamp - a visible indication which shall be placed on (by using a date stamp or other markings) the following:
   1. all invoices indicating the date said invoices are first delivered into the hands of an agent or employee of the City or to a facility or office of the City; and
   2. on all invoices and other documents required for prompt payment indicating the date said documents are received by the Accounts Payable Section of the Finance Department. The date so stamped shall be the date on which the invoice and/or other document is received.
3. Dispute resolution process - procedures for the resolving of a controversy that might arise between a vendor and the City related to the promptness of payment of a proper invoice by the City, which shall be resolved by the Controller in compliance with the guidelines specified in the Prompt Payment Act.
4. Improper invoice - any invoice or payment request which is received by the Accounts Payable Section of the Finance Department which does not conform to this policy's definition of a "proper invoice."
5. Non Construction Services - services performed that do not require a license as a construction contractor or electrical or alarm system contractor under parts I and II of chapter 489, F.S. 
6. Payment due date - a date of payment to be calculated according to the Florida Prompt Payment Act by the Accounts Payable Section of the Finance Department, which will be within 45 days for non-construction services or 20 business days for construction services of one of the following:
   1. the date of receipt by the Accounts Payable Section of a proper invoice;
   2. the date the invoice for construction services is first delivered into the hands of an agent or employee or to an office or facility of the City.
   3. if invoicing or request for payment is not required, it will be based on one of the following:
      1. date on which delivery of personal property is accepted by a department;
      2. date on which services are completed;
      3. date agreed to by contract between the City and the vendor, whichever date is latest.
7. Proper invoice - Any invoice or payment request which is received by the Accounts Payable Section of the Finance Department which. conforms to the required criteria established in this policy. The requirements for a proper invoice are that an invoice shall be, as follows:
   1. in compliance with the terms of the purchase order, agreement, or contract governing the purchase of the particular goods or services;
   2. original invoice;
   3. delivered to the City in accordance with the purchase order, agreement, or contract;
   4. received by the Accounts Payable Section of the Finance Department, and shall contain the following information:
      1. the name of the vendor;
      2. the date of preparation;
      3. the number of the invoice to facilitate identification;
      4. the authorizing City purchase order number which shall correlate to the City purchase order with which the purchase was made, and respective receiving reports;
      5. the vendor's federal identification (if the number is not already on file);
      6. an accurate description of the goods or services;
      7. the correct quantity, unit price, and total cost of goods or services delivered;
      8. any applicable discounts;
      9. the location and date of delivery of the goods or services to the City (if applicable);
      10. the address to which the payment should be mailed (if not already on file).
8. Prompt Payment - means payment of proper invoices made within 45 days for non-construction services and 20 business days for construction services of the payment due date as calculated by the Accounts Payable Section of the Finance Department according to the Florida Prompt Payment Act.
9. Purchases - means The purchase of goods or services, the purchase or lease of personal property, or the lease of real property by the City.
10. Vendor - any person who sells goods or services, sells or leases personal property, or leases real property to a local governmental entity.

501.06 Departmental Responsibilities

1. Management and Administration Procurement Services Division - It shall be the responsibility of the Purchasing Administrator to develop and implement policies and procedures for the following:
   1. making all departments aware of the established purchasing policies and procedures;
   2. informing all vendors with which the City does business of the City procurement procedures and requirements necessary for. authorized purchases;
   3. providing that no purchase order or contract entered into by the City and a vendor violates the Prompt Payment Act;
   4. providing that purchase orders and contracts clearly specify requirements for submitting a proper invoice as defined in this policy;
   5. providing that purchase orders and contracts clearly specify what are the City's prompt payment dispute resolution procedures, as provided for in this policy.
2. Finance Department. Accounting Division - It shall be the responsibility of the Controller to develop and implement procedures, in accordance with the Florida Prompt Payment Act, for the following:
   1. making available to vendors with which the City does business the specific requirements for submitting a proper invoice for prompt payment;
   2. notifying vendors of improper invoices in writing within 10 days of receipt;
   3. date stamping of all invoices and other documents required for prompt payment;
   4. calculating payment due dates;
   5. calculating payment due dates on purchases allowing for partial deliveries;
   6. providing for prompt payment of all invoices within 45 days of the calculated payment due date for non-construction services and 20 business days for construction services;
   7. providing for the vendor payment processing procedures required to be followed by all departments;
   8. providing for and arbitrating the dispute resolution process in compliance with the Prompt Payment Act;
   9. providing an annual report of information required by the Prompt Payment Act to the City Commission during December;
   10. Compliance with the requirements of the Prompt Payment Act not specifically delineated in this policy; and
   11. exceptions to this policy.
3. Legal Department - It shall be the responsibility of the City Attorney to develop and implement all policies and procedures related to contracts and invoices for legal services, in accordance with the Florida Prompt Payment Act, to include the following:
   1. administering all contracts which involve any provisions for legal services to the City;
   2. selecting all outside legal counsel who will be involved in the delivery of legal services to the City;
   3. ensuring the availability of funds, identification of account(s) to be charged, and encumbering funds so that they are available when needed;
   4. negotiating and executing a11 legal contracts entered into by the City;
   5. receiving, reviewing, and processing all invoices and related documents to the Accounts Payable Section of the Finance Department;
   6. ensuring that legal services provided are in compliance with contract specifications; and
   7. closing out all legal contracts on behalf of the City.
4. All Departments - It shall be the responsibility of all departments to develop and implement policies and procedures for the following:
   1. complying with the City's procurement policies and procedures;
   2. complying with the City's vendor payment processing procedures as provided for in this policy;
   3. informing their vendors of the specific requirements for submitting a proper invoice for prompt payment as defined in this policy;
   4. forwarding all receiving reports and/or receiving tickets to the Accounts Payable Section immediately after the receipt of the purchased goods and/or services; and
   5. date stamping and immediately forwarding all invoices and contract pay requests and/or other documents required for prompt payment to the Accounts Payable Section of the Finance Department;
   6. notify as soon as possible the vendor and the City Controller of the development of any controversies that might affect prompt payment;
   7. notifying the vendors of the City's prompt payment dispute resolution procedures when controversies that might affect prompt payment arise;
   8. complying with the City's prompt payment dispute resolution procedures as provided for in this policy; and
   9. ensuring that no purchase for which federal funds are intended to be used for payment shall be made without reasonable assurance that federal funds to cover the cost thereof will be received. Where payment or the time of payment is contingent on the receipt of federal funds or federal approval, any contract and any solicitation to bid shall clearly state such contingency.

501.07 Exceptions 
Any exceptions or unusual circumstances not provided for in this policy must be documented and will be subject to review and approval by the City Manager or his designee.

501.08 Appendix A - Vendor Payment Processing Procedures 
In order to facilitate compliance with the intent of this policy, the Vendor Payment Processing Procedures, which are Appendix A of this policy, should be strictly adhered to. Due to the nature of these procedures, they may be revised by the City Manager or his designee when necessary.

501.09 Appendix B - Prompt Payment Dispute Resolution Procedures 
In order to facilitate compliance with the intent of this policy should a dispute occur between a vendor and the City concerning the payment of a proper invoice, the Prompt Payment Dispute Resolution Procedures are presented in Appendix B.

501.10 Administering Department
Finance Department

501.11 Effective Date 
October 1, 1995

Attachments

• Appendix A: Vendor Payment Processing Procedures
• Appendix B: Prompt Payment Dispute Resolution Procedures

State of Florida Prompt Pay Policy

Payment shall be made in accordance with Section 215.422, Florida Statutes. (The State of Florida is required to pay all properly completed and correctly addressed invoices within 40 days of receipt of invoice for goods or services received.) If payment is not made within 40 days a separate interest penalty set by the State Department of Banking and Finance pursuant to Section 55.03 F.s. will be due and payable in addition to the original invoice amount.