Missouri Code of State Regulations
Title 1 - OFFICE OF ADMINISTRATION
Division 10 - Commissioner of Administration
Chapter 3 - Preapproval of Claims and Accounts
Section 1 CSR 10-3.010 - Preapproval of Claims/Accounts and Direct Deposit: Definitions/Examples
Universal Citation: 1 MO Code of State Regs 10-3.010
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This amendment specifies the types of uniforms that cannot be purchased with state funds and revises the definition of an employee association to remove a restriction on collective bargaining that was found to be unconstitutional in Missouri Corrections Officers Association, Inc. v. Missouri Office of Administration, 662 S.W.3d 26 (Mo. App. W.D. 2022).
(1) The following are types of allowable claims:
(A) Claims for
goods and services having a clear business relationship to the agency work
program and submitted for payment after receipt of goods or services. The claim
is to be documented with an invoice billed to the state on the vendor's
descriptive business invoice form. Invoices are to be from vendors typically
engaged in a business practice of providing such goods or services.
Reimbursements may be made to employees for minor purchases made on behalf of
the state when accompanied by descriptive receipts;
(B) Claims for expenditures made pursuant to
programmatic appropriations and other statutory authority;
(C) Claims for the payment of reasonable and
necessary employee travel expenses actually incurred on behalf of the state and
in accordance with 1 CSR 10-11.010 State of
Missouri Travel Regulations; and
(D) Claims for employee course tuitions/fees
and related educational supplies that are either reimbursed or direct billed.
Course expenses may be reimbursed after receipt of evidence of course
completion and proof of payment. Course expenses may be paid in advance of
course completion only when documentation indicates the agency requested the
employee take the course.
(2) The following are types of unallowable claims unless special circumstances substantially justify the granting of an exception to this rule:
(A) Claims for the
purchase of goods or services which are not apparently or cannot be
substantially justified as directly related to the transaction of state
business. For example, employee parties, employee gifts, holiday cards and
decorations, personal club memberships, memorial flowers, political and
charitable contributions, traffic tickets, and uniforms for agency sports,
trivia, and similar teams. An exception is made for the purchase of retirement,
service, and other recognition award gifts which may be certified as regular
claims if reasonable in relation to the circumstances of the award and
primarily represent a token of recognition and not a reward with a cash
equivalent or substantial monetary value. Claims for the expenses of receptions
for employee recognition events should be at a nominal price per person
attending. Holiday decorations are allowed for commonly accessed public areas
such as reception and waiting rooms;
(B) Claims for the repair of damages or loss
of employee's personally owned property, such as clothing and privately owned
vehicles, except when such claims have been made against the state through the
Office of Administrations Risk Management Unit and approved for payment from
the Legal Expense Fund;
(C) Claims
with invoices prepared by state agencies rather than vendors. An exception
would be for those types of payments not customarily initiated by a vendor,
such as lottery prizes, uniform allowances, inter-agency billings, some
refunds, and some program payments. The Missouri Lottery may write prize
payment checks after the Lottery Commission submits the procedures for writing
the prize payment checks to the commissioner of administration in accordance
with section
313.321,
RSMo;
(D) Claims submitted to pay
employees of the state or others for goods or services they have sold to the
state if it is evident that they are not generally engaged in the business
practice of selling such goods or services. For example, an employee or
employee family member or friend rents or sells personally owned property to a
state agency;
(E) Claims with
invoices which are not invoiced to the state department that is submitting the
claim;
(F) Claims for expenditures
to reimburse accounts held outside of the state treasury or not authorized by
law;
(G) Claims that do not
sufficiently describe the products or services purchased or the date purchased.
This would include any unsupported charges or unsupported past due
amounts;
(H) Programmatic claim
documentation that does not sufficiently relate the expenditure to the program
or does not appear to adequately support/control the payment;
(I) Claims to make payments on credit card
accounts not authorized through the Office of Administration;
(J) Claims submitted for payment before the
goods or services have been received. Exceptions would be for those types of
items or services for which payment in advance is the normal business practice,
such as subscriptions, registrations, memberships, insurance, postage,
maintenance agreements, and building/parking rentals. Advance payment for
travel expenses, such as air fare, conference fees, and lodging, may be allowed
if in accordance with
1 CSR
10-11.010 State of Missouri Travel Regulations.
Advance payment is also allowed when prepayment is a condition of the sale or
is in accordance with contract terms. Ensure the invoice or other claim
documentation clearly states this requirement if advance payment is
made;
(K) Claims to establish
imprest funds not authorized by law or to increase established imprest funds
over the maximum amount allowed by law;
(L) Claims to reimburse imprest funds for
expenditures that are not incidental in nature or are not for other specific
uses authorized by law. Incidental expenditures are defined as payments that
are occasional, minor, and immediately necessary for the proper operation of
the facility. Travel expenses, including registration fees, are not to be paid
from imprest funds. Imprest funds are not intended to be used as a means to
circumvent state purchasing procedures; and
(M) Claims for late payment penalties not
submitted in accordance with the accounting procedures established by the
Office of Administration, Division of Accounting. It is the submitting
agencies' responsibility to verify that late payment penalties are calculated
correctly pursuant to section
34.055,
RSMo. The Office of Administration, Division of Accounting may ask for
documentation to support that the agency has recalculated and verified the
correct late payment penalty amount. Ensure a copy of the invoice that was paid
late is attached to the late payment penalty invoice. Late payment penalties
should be paid from funds appropriated in the fiscal year in which the goods or
services were delivered. If that fiscal year has lapsed, use current fiscal
year funds.
(3) The following are unallowable claims for the purpose of the appropriation charged:
(A) When the description of the claim
indicates that the expenditure is not within the purpose of the appropriation
being charged. For allowable claims, the following appropriation type
definitions apply:
1. Expense and
equipment-all expenditures for operating services, supplies, rentals,
professional and technical services, other charges necessary to the operation
of an agency, acquisition of equipment, and major repairs that extend the
useful life of the equipment.
A. Expense and
equipment may also include expenditures for unanticipated maintenance, repairs
or minor modifications, or unanticipated capital improvements to a state-owned
or leased facility or land that are limited to up to twenty thousand dollars
($20,000) per project. Such expenditures must be approved in advance by the
director of the Division of Facilities Management, Design and Construction and
the director of the Division of Accounting. If a qualifying project under this
section is necessary for the health and safety of the public and/or state
employees and exceeds the twenty thousand dollar ($20,000) threshold
established above, the Commissioner of Administration may approve the use of an
expense and equipment appropriation under this section up to thirty thousand
dollars ($30,000) per project. An expense and equipment appropriation may not
be used for any maintenance, repair, modification, or capital improvement of a
facility for which an appropriation was requested and not approved by the
General Assembly.
B. Expense and
equipment appropriations do not include employee's wage/salaries, land
acquisition, building acquisition, building construction, building demolition,
and capital improvements other than those allowed above.
C. As used herein, the following definitions
apply:
I. Maintenance-preventative, routine,
cyclical, and/or emergency unscheduled work necessary to keep in good working
condition any facility, land, or equipment;
II. Repair-any work necessary to restore to
good working condition any facility, land, or equipment; and
III. Minor modification-any alteration or
improvement to a facility, land, or equipment that does not increase its
capacity or operating efficiency or enhance its function;
2. Capital
improvements-substantial expenditures for the purchase of capital assets (land
and buildings) and the extensive repairs and improvements to a capital asset
which increases its capacity or operating efficiency by extending its useful
life and/or enhancing its function
3. Personal services-all expenditures for
salaries, wages, and related employee benefits; and
4. Program/specific-expenses for a group of
activities or services performed for an identifable group to serve a specific
purpose. This appropriation type allows any type of expenditure necessary to
fulfill the intent of the program as defined in the corresponding house bill.
Program appropriations may be broadly constructed or contain restrictive
language for specific purposes;
(B) When the invoice order date or service
period indicates that the expenditure is being applied to an incorrect fiscal
year appropriation. For the purpose of certification for correct fiscal year,
the invoice should be dated within the fiscal year being charged. If the
invoice is for services, it should indicate that the services were provided in
a time frame within the fiscal year being charged. Unless exempted in the
following paragraphs, claims for services provided in the next fiscal year
cannot be charged to the prior year appropriation:
1. Exception: Invoices for subscriptions,
membership dues, post office box rentals, maintenance agreements, and premium
payments for insurance coverage, may be paid from the current fiscal year even
though the terms may overlap into the next fiscal year;
2. Exception: A prior year claim may be paid
from a current fiscal year appropriation if the vendor presented the claim to
the state agency within two (2) years after the claim began to accrue (section
33.120,
RSMo);
3. Exception: A service
invoice may be paid from the current fiscal year for services to be provided in
the next fiscal year if the vendor is requiring immediate payment in order to
grant a cost savings discount or if it is in accordance with contract terms. An
example would be an invoice for a seminar to be held in the next fiscal year
for which the vendor is giving an early prepayment discount. Registration fees
may be paid from the current fiscal year for events to be held in the next
fiscal year when time is insufficient to process the payment; and
4. Exception: A service invoice for services
spanning two (2) fiscal years may be prorated between the two (2) fiscal years
appropriations or paid entirely from the most recent fiscal year's
appropriation; and
(C)
When a claim is submitted against an appropriation for which there is an
insufficient appropriation balance.
(4) The following are other types of unallowable claims pending resolution of the incorrect condition when:
(A) The vendor name on the invoice/document
does not agree with the vendor name entered on the warrant request;
(B) The amount to be paid does not agree with
the amount on the vendor invoice/document;
(C) The object codes used do not relate to
the descriptions of the goods or services purchased pursuant to the object code
descriptions published in the Chart of Accounts Manual issued by the Office of
Administration, Division of Accounting;
(D) Travel expense claims not in compliance
with the requirements of
1 CSR
10-11.010 State of Missouri Travel Regulations;
and
(E) Claims for expenditures are
not documented with one (1) of the delivery receiving report methods described
in the Financial Policies and Procedures Manual issued by the Office of
Administration, Division of Accounting.
Exceptions would be for those types of items or services for which advance payment is the normal business practice or is a condition of the sale by the vendor or is in accordance with contract terms.
(5) The following are the requirements for vendors who desire to have claims paid through direct deposit:
(A) Vendors on the Statewide Vendor File
desiring to participate in the state's direct deposit program have two (2)
options for enrolling. One (1) option is to complete a vendor Automated
Clearing House/Electronic Funds Transfer (ACH/EFT) Application. The application
is available on the web at www.oa.mo.gov/acct under Forms. The form is
also available by contacting the Office of Administration, Division of
Accounting at (573) 751-2971. The second option is to register on the State of
Missouri's eProcurement system and include ACH/EFT information when completing
the registration. The completed ACH/EFT application or registration authorizes
the Office of Administration to deposit (credit) a vendor's designated checking
or savings account for the payment amount. It also authorizes a vendor's
account to be debited only when an error has occurred resulting in an erroneous
payment to the vendor;
(B) Direct
deposit of vendor payments will begin following the submission of a properly
completed application form to the Office of Administration, Division of
Accounting, or an approved registration in the eProcurement system, the
successful processing of a test transaction through the banking system and the
election by a state agency to make payment to a participating vendor using the
direct deposit option; and
(C) The
state will conduct vendor direct deposit through the automated clearing house
system, utilizing an originating depository financial institution. The rules of
the National Automated Clearing House Association and its member local
Automated Clearing House Associations apply, as limited or modified by
law.
(6) The following are the requirements established to allow payroll deductions from employee compensation for authorized voluntary products:
(A) Definitions. The following terms and
meanings apply to vendor payroll deductions:
1. Vendor-any private insurance carrier or
company, a labor union, an employee association, or credit union;
2. Labor union-an exclusive state employee
bargaining representative established in accordance with sections
105.500105.530, RSMo;
3. Employee association-an organized group of
state employees that has a written document, such as bylaws, which govern its
activity, and that is not a private insurance carrier or company or credit
union;
4. Credit union-a financial
institution located in Missouri, which has a state charter and is insured by an
agency of the United States government or credit union share guarantee
corporation approved by the director of the Missouri Division of Credit Unions;
and
5. Dues-a fee or payment owed
by an employee to a labor organization as a result of and relating to
employment in a bargaining unit covered by an existing labor agreement or a
payment owed by an employee for membership in an employee
association;
(B) The
vendor providing a product or service is responsible for fulfilling all
prescribed standards with applicable federal and state regulatory
agencies;
(C) The proposed payroll
deductions are to be for programs or services which do not duplicate existing
programs and services provided by statutorily authorized entities (for example,
Missouri State Employees' Retirement System, Missouri State Highway Employees'
Retirement System, and State of Missouri Deferred Compensation
Commission);
(D) The proposed
service or program are to be offered on a consistent and continuing basis and
be reasonably anticipated to be available for a period of five (5) or more
years;
(E) Requests for payroll
deductions by the vendor are to be submitted to the Office of Administration in
writing on official company or association stationery plus all relevant product
information and marketing materials that fully describe the proposed
product;
(F) Within a period of
ninety (90) days, the vendor applicant for payroll deduction authority is
responsible for obtaining a minimum of one hundred (100) state employee-signed
applications for the proposed product, employee association, or credit union
membership. The ninety- (90-) day period for obtaining one hundred (100)
employee signatures will commence on the date designated by the Office of
Administration acknowledgement to a payroll deduction request in accordance
with subsection (6)(E);
(G) The
commissioner of administration will terminate voluntary payroll deduction
authority for any product that does not maintain at least one hundred (100)
active employee deductions;
(H)
Solicitation by a vendor of signed employee applications or memberships are not
to be performed in state facilities at any time with the exception of vendor
products that are eligible under Section 125 of Title 26 of the United States
Code and compliant with
1 CSR
10-15.010 and section
33.103,
RSMo;
(I) Labor unions do not need
to comply with subsections (6)(E)-(G) to become a vendor and collect dues, but
are to be recognized as an exclusive bargaining representative by separate
resolution agreement with the commissioner of administration in accordance with
sections
36.510
and 105.500-105.525, RSMo;
(J)
Vendors need to maintain a current primary point of contact with the Office of
Administration;
(K) The
commissioner of administration may reduce, suspend, or discontinue an
employee's voluntary deduction when the net pay, after all mandatory deductions
prescribed by law, is insufficient to meet wage garnishments, sequestrations,
or levies prescribed by law or court order or when the vendor fails to fulfill
the applicable standards prescribed by law or applicable federal and state
regulatory agencies; and
(L) Send
requests for payroll deduction authority to: Commissioner of Administration,
Office of Administration, PO Box 809, Jefferson City, MO
65102.
The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the headquarters of the agency and is available to any interested person at a cost established by state law.
*Original authority 1945, amended 1959.
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