Section 5 Utility Invoicing and Auditing.pdf

Right of Way Section Oregon Utility Relocation Manual

July 2023 page 20

SECTION 5 – UTILITY INVOICING AND AUDITING

All reimbursable invoice documentation of the utility owner, its contractors and subcontractors are subject to audit by representatives of the state and the FHWA and will be retained for a period of five years from the date final payment was issued.

5-1 – Reimbursement Eligibility Reimbursement eligibility is covered under Title 23 CFR 645 Subpart A and this manual. CFR 645 states, “the FHWA’s reimbursement to the State Transportation department will be governed by state law (or state regulation) or the provisions of this regulation, whichever is more restrictive.”

Per the Federal Acquisition Regulation (FAR), Part 31.201 3(a), “the burden of proof shall be upon the contractor to establish that such cost is reasonable.” Reimbursement is paid on reasonable actual expenses and shown with supporting documentation.

A utility owner can submit either progressive invoices, at least every 3 months, throughout the relocation or a single invoice upon completion of all work. The utility owner has one year from the time of completion of its work to submit a final invoice, as per the utility construction agreement. The utility owner must submit an invoice with the supporting documents to request reimbursement.

The utility coordinator reviews the invoice documentation submitted by the utility owner and verifies that all required information attached is accurate and represents verifiable actual costs.

Per the Federal Acquisition Regulation (FAR), Part 31.201 3(a), “the burden of proof shall be upon the contractor to establish that such cost is reasonable.” All supporting documentation must be verifiable.

5-2 – Invoice Requirements Invoice submissions should include, but are not limited to the following:

Invoices must:

o Include utility company information:

Company name, Address, Phone and fax numbers

Email address.

o Indicate whether the invoice is a progressive or a final invoice.

o Identify the total dollar amount requested.

o Include an invoice date.

July 2023 page 21 o Include a unique invoice number.

o Identify the project name and key number.

o Indicate the billing period, with beginning and end dates.

Beginning date must not be prior to the NTP, nor can it land within any previous billing period.

Invoices should:

o Be printed on company letterhead.

5-2-1 – Revised Invoices If a utility owner submits a revised invoice, the following requirements apply:

The invoice date should be updated to the new submittal date.

The invoice number should reference the previously submitted invoice. For example, invoice number 2256 would be revised to invoice number 2256 R.

5-3 – Supporting Documentation Requirements The supporting documentation must be included with each invoice and itemized in verifiable categories and be available for audit. Supporting documentation must be in accordance with 48 CRF 31 – Contract Cost Principles and Procedures.

Supporting documentation must include but is not limited to the following items. This list is not all inclusive. Additional documentation may be requested by ODOT.

5-3-1 – Labor Detailed labor records that show the daily hours worked by employee, including pay rate. (Employee number or name, classification, hours worked, date worked, and unit cost).

Summary of what job the employee was working on (detail location).

5-3-2 – Equipment Equipment description, rates, dates worked, and hours used.

5-3-3 – Materials and Tools All material costs shall be paid on an actual cost basis that is reasonable, allowable and allocable. (FAR 31.201 2, 3, 4, 6 and 7)

All materials used including description, price per unit, quantity, and total cost.

All certificate of materials origin which are required on all projects.

Restocking fees may be charged.

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5-3-4 – Subcontractors and Vendors Copies of original invoices from vendors and/or subcontractors to support all invoiced costs.

Copies of continuing contracts or lowest bid documents, if not already submitted to the

SUL.

5-3-5 – Travel, Lodging and Per Diem Travel, Lodging and Per Diem shall be paid in accordance with the Oregon Accounting Manual available online: https://www.oregon.gov/das/Financial/Acctng/Pages/OAM.aspx

The following guidelines shall apply:

The travel, lodging, and per diem rates are the maximum reimbursement. Under no circumstance shall travel, lodging and per diem rates exceed the maximums set forth by the state controller. See https://www.oregon.gov/das/Financial/Acctng/Documents/40%20Travel%20search.pdf .

Mileage – All mileage approved by agency will be reimbursed according to the rates in effect when the travel occurs. See https://www.oregon.gov/das/Financial/Acctng/Documents/40%20Travel%20search.pdf .

For all methods of compensation, cost estimates for mileage, lodging and per diems for approved travel shall be based on the rates in effect on the date when the contract is executed.

Mileage expense reimbursement must be based on actual distance traveled, whether from home office, residence, other project site in proximity to the project, or from lodging accommodations used for project assignment(s), whichever is less.

Receipts are required for lodging and lodging taxes.

5-3-6 – Overhead/Additive rates All applicable indirect costs/overhead rates must be approved prior to invoicing and payment. Indirect costs must comply with 48 CFR Part 31 of the Federal Acquisition Regulations, refer to: https://www.ecfr.gov/cgi bin/text idx?tpl=/ecfrbrowse/Title48/48cfr31_main_02.tpl. Indirect cost rates may be subject to audit by ODOT Audit Services

State, Local and Indian Tribal governments are required to follow 2 CFR 200 Part 21 (http://www.ecfr.gov/cgi bin/text idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl) prior to reimbursement of indirect costs/overhead. Direct costs, i.e. employee salaries, employee fringe benefits, materials, subcontractors, etc. are allowable.

Allowance for funds used during construction (AFUDC) charges are unallowable.

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5-4 – Recommending Payment Once the invoice is verified by the utility coordinator, they submit a memo recommending payment to the SUL.

If the individual utility owners’ invoice for a project exceeds $10,000, the utility coordinator must obtain written verification and approval from the respective area manager confirming that there are sufficient funds in the project budget for the invoice. The area manager’s written approval must be submitted with the memo recommending payment.

If any utility owner invoice causes the overall utility relocation expense account (UR EA) to exceed the programmed budget, the area manager must approve, in writing, any further monthly utility invoices.

The SUL verifies that the invoice documentation and calculations are correct and recommends approval of payment to the ROW programs manager. The ROW programs manager signs the approval for payment certifying that the invoice meets all program requirements and is authorized for payment. The SUL then submits the approved invoice to ODOT Financial Services Department.

ODOT is required to submit payment within 45 days of the invoice date. This timeframe has been established by ORS 293.462 and discussed in the “Accounts Payable and Expenditures” chapter of the Financial Administration and Standards Manual. The utility coordinator has 10 business days to review the complete invoice package, obtain the area manager’s approval if applicable, and forward the payment recommendation to the SUL.

If the utility owner’s invoice package is incomplete, the utility coordinator must request, in writing, any needed additional support documents. Stamp all incoming invoices and supporting documentation with the date of receipt. The SUL has three business days to review the invoice and have it signed and turned into the Finance Office for payment.

5-5 – Invoicing for Certified LPA Projects Certified LPA projects will follow the utility invoicing requirements as discussed in this Section 5.