Code of Massachusetts Regulations
815 CMR - COMPTROLLER'S DIVISION
Title 815 CMR 3.00 - Ready Payment System
Section 3.03 - Conditions for Using the Ready Payment System for Contract Payments

Universal Citation: 815 MA Code of Regs 815.3

Current through Register 1531, September 27, 2024

A Contractor and a Department must fulfill the following requirements in order to use the Ready Payment System for Contract payments. Satisfaction of these requirements, during the life of the Contract, shall be determined by the Department contracting for services with the Contractor. These requirements must be met for each Contract to be paid using the Ready Payment System.

(1) Social, Educational or Rehabilitative Service Provider. The Contractor must be in the business of providing social, educational or rehabilitative services;

(2) Contract on file with the Office of the Comptroller. A Contract for the provision of social, educational or rehabilitative services, must be executed by the Contractor and the contracting Department in accordance with all relevant general and special laws and regulations, and filed with the Office of the Comptroller in accordance with the policies and procedures for filing Contracts as prescribed by that Office. The Contract must include the following mandatory sections:

(a) Certification of Incorporation or License to do Business. A certification, or other documentation, evidencing that the Contractor is properly incorporated with the Office of the Secretary of State of the Commonwealth, if the Contractor is a Commonwealth corporation; or, if the Contractor is not a Commonwealth corporation, that the Contractor is properly licensed to do business in the Commonwealth;

(b) Certification of Compliance with Laws. A certification that the Contractor will comply with all applicable state and federal general and special laws and regulations governing the Contractor's performance under the Contract and any other provisions specified in the Contract;

(c) Ready Payment Billing and Payment Schedule. The Contract must include the following:
1. The Contract must indicate that the Contractor and the Department have agreed, either at the time of entering into the Contract, or by subsequent amendment to the Contract, that Contract payments will be made using the Ready Payment System. Contract services must have a predictable, recurrent and regular delivery schedule that is compatible with the billing and payment cycle of recurring payments offered by the Ready Payment System. The Department shall determine whether or not the Ready Payment System is the most efficient and appropriate payment mechanism for Contract payments;

2. The maximum obligation for each fiscal year of the Contract; and

3. The anticipated payment schedule for Ready Payments (semi-monthly, bi-weekly, weekly or other schedule).

(3) Additional Department Requirements. In addition to the requirements outlined in 815 CMR 3.03(1), and (2) the Contractor's participation in the Ready Payment System will be subject to the Contractor's compliance with any additional requirements specified by the Department in the Contract.

(4) Invoice Submission and Reconciliation of Ready Payments.

(a) Contractor Submissions.
1. The Contractor is required to submit monthly invoices and supporting documentation to the Department in accordance with the terms and conditions of the Contract. The invoices and supporting documentation must be accurate, complete and sufficiently detailed to substantiate any claim for payment. Unless a different period is specified in the Contract, the Contractor shall submit the invoices and supporting documentation on or before the tenth of each month following service delivery. The Contractor's failure to submit timely invoices and supporting documentation may result in the suspension of the use of the Ready Payment System for Contract payments pursuant to 815 CMR 3.04.

2. The invoices submitted by the Contractor shall total at least 75% of the base payments received by the Contractor for the previous service delivery month.

3. Unless otherwise specified in the Contract, the Contractor shall be responsible for the prompt return or reimbursement of any overpayments made by the Department within seven calendar days of the Department's written request. Overpayments to the Contractor during any state fiscal year may not be retained by the Contractor to offset anticipated payments by the Department during a subsequent fiscal year.

(b) Department Adjustments to Base Payment Amount and Reconciliation of Ready Payments.
1. The Ready Payment System authorizes automated payments during each month of the Contract in accordance with the maximum obligation, the billing schedule and the base payment amount identified in the Contract. The Department may adjust the base payment amount to reflect the level of services actually delivered by the Contractor. The Department shall notify the Contractor of base payment adjustments. Base payment adjustments shall not require a formal Contract amendment or approval by the Office of the Comptroller.

2. The Department is responsible for the monthly reconciliation of ready payments made to the Contractor. The Department shall compare the supporting documentation provided by the Contractor for the level of services actually performed with the total amount of base payments made to the Contractor during the preceding service delivery month. The Department shall make any necessary adjustments to future Contract payments, including adjustments to the base payment amount of the Contract, to reflect the monthly reconciliation of ready payments. The Department is also responsible for final reconciliation of ready payments during the last month of each state fiscal year and the last month of the Contract if the Contract terminates prior to the end of a fiscal year. The Department shall take all necessary actions to update MMARS tables or complete MMARS transactions to complete the required reconciliation and adjustments to Contract payments in accordance with policies and procedures issued by the Office of the Comptroller.

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