MEMORANDUM NO. 2016-10

April 20, 2016

TO THE HEADS OF ALL STATE AGENCIES

I. PURPOSE

To provide State agencies with guidance in the drafting of internal controls and the requirements for voucher processing when accepting vendor invoices by email.

II. AUTHORITY

Connecticut General Statutes 1-266 through 1-286 & 3-112.

III. PROCEDURES

Many vendors now prefer to use email invoicing in order to save time and money. Current State Statute requires that both parties agree when using electronic documents to conduct transactions. At this time the Comptroller's Office will allow agencies to authorize vendors for submission of properly completed original invoices via email. This is for the purpose of processing payment against a purchase order only. This will not be allowed for Non?PO vouchers. Agencies are not required to accept email invoices. However, if accepted, they will need to develop a policy to insure standardized and accurate processing. Care should be taken when processing invoices received through electronic means to prevent the increased possibility of duplicate payments. Agency staff should also be trained to recognize possible fraudulent activity, as email is often a primary source of scams.

All agencies are required to maintain internal accounting controls to insure adequate protection against improper payment. A copy of such internal controls will be requested for submission with post-audit documents. In addition, agencies will be required to notify the Comptroller's Office of any vendor from which they have agreed to accept email invoices. Please use the address osc.apdpa@ct.gov  and include "Email Invoice Vendor" in the subject line.

Agency internal controls should consider the following:

1. Purchase orders should specify where to submit invoices electronically, i.e. a dedicated AP mailbox accessed multiple times daily.
2. The invoice date is the date the document is received from the vendor, which is the date on the email, not the date first read or printed. For audit purposes, invoices should be marked with that invoice date.
3. An invoice should be rejected if not complete and must include a unique invoice number provided by the vendor. Agencies must develop a consistent format for the invoice ID field on the Core-CT voucher.
4. Steps to be taken to prevent multiple copies being processed ? such as a payment tracking log.
5. Standardized procedures for verification, payment approval, voucher entry, and voucher approval.
6. Method of defacing the original electronic invoice once paid.
7. For all agencies storing documents electronically (refer to CSL Digital Imaging policy), the ability to add attachments in Core-CT should be encouraged.
8. Additional items as determined by the agency to secure state funds by providing an efficient procedure that maintains proper controls.

Vendor inquiries regarding other types of electronic invoicing should be referred to the Office of the State Comptroller, Accounts Payable division at osc.apd@ct.gov. 

IV. QUESTIONS

The Accounts Payable division is available to assist in the development of agency policy upon request. Questions regarding this memorandum may be directed to the Accounts Payable Division of the Comptroller's Office at osc.apdpa@ct.gov  or (860) 702-3393.

KEVIN LEMBO
STATE COMPTROLLER

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