Legal Unit

Contracts: % of contract/grant invoices processed timely to meet payment terms

95.2%Sep 2020

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  • Department of Finance & Management
  • DVHA Vendors
Story Behind the Curve

This performance measure informs management and employees about how efficiently the unit is managing the financial aspects of its agreements.

Approximately 21% of DVHA agreements have Net 15 or Net 00 terms rather than the State standard Net 30. The majority of those are grant agreements, requiring more detailed backup support from vendors before payment is fully approved by the State. This has often resulted in invoices initially being rejected or DVHA requiring and waiting for additional information from vendors, thereby delaying the process. Additionally, the VISION system determines payment due date based on the date of the vendor’s invoice. DVHA’s agreements, however, are contractually based on the date the State receives an error-free invoice and complete supporting documentation, not on the date of the invoice. DVHA works to initially review invoices within three business days in order to promptly identify issues and inform vendors of needed corrections, including invoice dates that match submission dates.

DVHA used the Jan-19 reporting period as a baseline in its work towards improving timely invoice processing. The unit started with a target value of 80%. Based on successful implementation of weekly invoice processing KPIs and increased accountability within the Grants & Contracts team, the target value was increased to 85%. April values fell due to budget holds and problems with the VISION upgrade, both of which were beyond the unit’s control, requiring certain invoices to be held longer than normal. These issues were resolved in mid-May, leading to a slight increase in processing rates. KPIs remained well-above goal for the first three weeks in June but fell to 56% during the last week, leading to a monthly KPI below target. This drop was the result of state fiscal year closeout activities that led to budget holds on certain funds and prevented invoice payments during the last two weeks of June. The target for the first week in July is expected to be impacted as well, but KPIs should be at or above target after that. The target value will be reassessed in August.

Despite being short 2 staff members during the busy month of December, staff prioritized this task and were able to achieve our highest rate so far, this fiscal year.

No contracts were routed during the month of February 2020

The slight decrease was the focus on contract drafting in April which may have caused some delay in invoice processing.

In May 2020 we had many grant invoices that were submitted with errors, and we had to work with the vendors to obtain corrected invoices which delayed our ability to pay timely.

June 2020 increase was due to all invoices had to be processed before the VISION shut off date of 06/15/20.

Last updated 10/15/2020



Invoice status is reviewed at weekly unit meetings and will be emailed to the group with a weekly agreement status check. Team members will seek assistance within the group if workload demands or scheduling conflicts are expected to create unusual challenges. There will be a push toward negotiating Net 30 payment terms for all agreements whenever possible. Invoice processing KPIs are used to locate barriers to successful operations and design strategies that will lead to better performance. Unit staff will work to ensure funds are properly encumbered through POs so that invoice can be processed in a timely manner.

Scorecard Result Container Indicator Measure Action Actual Value Target Value Tag S R I P PM A m/d/yy m/d/yyyy