Common use of Verification of Payment Clause in Contracts

Verification of Payment. This checklist is to assist the Subrecipient in preparation of its billing packets to State. This checklist is provided as guidance and is subject to change by State. State shall provide notice of any such changes to Subrecipient. All items may not apply to your particular entity. State’s goal is to reimburse Subrecipients as quickly as possible and a well organized and complete billing packet helps to expedite payment. Verification of Payment – ✓ General Ledger Report must have the following: • Identify check number or EFT number; • If no check number is available, submit Accounts Payable Distribution report with the General Ledger; • In-Kind (must be pre-approved by State) and/or cash match; • Date of the report; • Accounting period; • Current period transactions; and • Account coding for all incurred expenditures. ✓ If no General Ledger Report, all of the following are acceptable: • copies of checks; • check registers; and • paycheck stub showing payment number, the amount paid, the check number or electronic funds transfer (EFT), and the date paid. ✓ State needs to ensure that expenditures incurred by the local agencies have been paid by Party before State is invoiced by Party. ✓ Payment amounts should match the amount requested on the reimbursement. Additional explanation and documentation is required for any variances. In-Kind or Cash Match – If an entity wishes to use these types of match, they must be approved by State prior to any Work taking place. ✓ If in-kind or cash match is being used for the Local Match, the in-kind or cash match portion of the project must be included in the project application and the statement of work attached to the Agreement or purchase order. FTA does not require pre-approval of in-kind or cash match, but State does. ✓ General xxxxxx must also show the in-kind and/or cash match. Indirect costs – If an entity wishes to use indirect costs, the rate must be approved by State prior to applying it to the reimbursements. ✓ If indirect costs are being requested, an approved indirect letter from State or your cognizant agency for indirect costs, as defined in 2 CCR §200. 19, must be provided. The letter must state what indirect costs are allowed, the approved rate and the time period for the approval. The indirect cost plan must be reconciled annually and an updated letter submitted each year thereafter. Fringe Benefits- Considered part of the Indirect Cost Rate and must be reviewed and approved prior to including these costs in the reimbursements. ✓ Submit an approval letter from the cognizant agency for indirect costs, as defined in 2 CCR §200. 19, that verifies fringe benefit, or ✓ Submit the following fringe benefit rate proposal package to State Audit Division: • Copy of Financial Statement; • Personnel Cost Worksheet; • State of Employee Benefits; and

Verification of Payment. This checklist is to assist the Subrecipient in preparation of its billing packets to StateCDOT. This checklist is provided as guidance and is subject to change by StateCDOT. State CDOT shall provide notice of any such changes to Subrecipient. All items may not apply to your particular entity. StateCDOT’s goal is to reimburse Subrecipients as quickly as possible and a well organized and complete billing packet helps to expedite payment. Verification of Payment – –‌‌ ✓ General Ledger Report must have the following: following:‌‌‌ • Identify check number or EFT number; number • If no check number is available, submit Accounts Payable Distribution report with the General Ledger; Ledger‌ • In-Kind (must be pre-approved by StateCDOT) and/or cash match; match‌ • Date of the report; report‌ • Accounting period; period‌ • Current period transactions; and transactions‌ • Account coding for all incurred expenditures. ✓ If no General Ledger Report, all of the following are acceptable: acceptable‌‌ • copies of checks; checks‌ • check registers; and registers‌ • paycheck stub showing payment number, number and:‌ • showing the amount paid, the check number or electronic funds transfer (EFT), ) and the date paid. ✓ State CDOT needs to ensure that expenditures incurred by the local agencies have been paid by Party before State CDOT is invoiced by Party. Party.‌‌ ✓ Payment amounts should match the amount requested on the reimbursement. Additional explanation and documentation is required for any variances. variances.‌ In-Kind or Cash Match – If an entity wishes to use these types of match, they must be approved by State CDOT prior to any Work work taking place. place.‌‌ ✓ If in-kind or cash match is being used for the Local Matchlocal match, the in-kind or cash match portion of the project must be included in the project application and the statement of work attached to the Agreement agreement or purchase order. FTA does not require pre-approval of in-kind or cash match, but State does. CDOT does.‌ ✓ General xxxxxx must also show the in-kind and/or cash match. match.‌ Indirect costs – If an entity wishes to use indirect costs, the rate must be approved by State CDOT prior to applying it to the reimbursements. reimbursements.‌‌ ✓ If indirect costs are being requested, an approved indirect letter from State CDOT or your cognizant agency for indirect costs, as defined in 2 CCR §200. 19, must be provided. The letter must state what indirect costs are allowed, the approved rate and the time period for the approval. The indirect cost plan must be reconciled annually and an updated letter submitted each year thereafter. thereafter.‌ Fringe Benefits- Considered part of the Indirect Cost Rate and must be reviewed and approved prior to including these costs in the reimbursements. reimbursements.‌ ✓ Submit an approval letter from the cognizant agency for indirect costs, as defined in 2 CCR CCR‌ §200. 19, that verifies fringe benefit, benefit or ✓ Submit the following fringe benefit rate proposal package to State CDOT Audit Division: Division:‌‌ • Copy of Financial Statement; Statement‌‌ • Personnel Cost Worksheet; Worksheet • State of Employee Benefits; andBenefits‌