164-1-22 Procedures for the payment and disbursement of funds.

(A) The project agreement required by rule 164-1-21 of the Administrative Code shall provide for the payment and disbursement of funds as follows:

(1) Upon completion of work as specified in his contract, a contractor promptly shall submit an invoice to the project manager designated in the agreement.

(2) Within three business days following receipt of an invoice from a contractor, the project manager shall review the invoice and, if found to be accurate, so certify in writing a copy of the invoice to the chief fiscal officer designated in the agreement.

(3) Within five business days following receipt of the invoice and certification from a project manager, the chief fiscal officer shall conduct such reviews as he considers appropriate and, if he approves such invoice, submit the contractor’s invoice and the project manager’s certification to the director or the administrator, along with a request for disbursement of state funds signed by both himself and the chief executive officer designated in the agreement. The dollar amount set forth in the request shall be calculated by multiplying the disbursement ratio set forth in the project agreement and applicable to the work covered by the invoice times the dollar amount set forth in the invoice.

(4) Within five business days following receipt of an invoice, a certification, and a request meeting the requirements of paragraphs (A)(1), (A)(2), and (A)(3) of this rule, the director or the administrator shall review them for accuracy and, if found to be accurate, initiate a voucher, in accordance with applicable state requirements, for payment of the amount set forth in the request. The project agreement shall specify that payment shall be made by the state either:

(a) To the contractor or his authorized representative as direct payment for the work covered by the invoice; or

(b) To a subdivision, its authorized representative or assignee, as reimbursement for payment that the subdivision, its authorized representative or assignee has previously paid to the contractor for the work covered by the invoice.

(5) Upon receipt of a warrant from the auditor of state drawn in connection with a voucher initiated under paragraph (A)(4) of this rule, the director or administrator shall forward it, by regular first-class United States mail, to the appropriate recipient designated in the disbursement request.

(B) The project agreement shall specify that no contractor may submit an invoice for payment more than once every thirty days or submit an invoice for work that has not been completed.

(C) The project applicant shall be responsible exclusively for complying with retainage requirements applicable to the project under sections 153.12, 153.13, 153.14, and any other section of Chapter 153. of the Revised Code. All such retainage amounts withheld, placed in escrow, or otherwise dealt with by a subdivision or contractor participating in the project shall come out of the local match for the project established by the project agreement in compliance with division (D) of section 164.05 of the Revised Code. No contractor may submit an invoice, and no subdivision may submit a request for disbursement of state funds, that, if paid, would result in the state having paid for any such retainage.

HISTORY: Eff 6-7-89 (Emer.); 4-1-90

Rule promulgated under: RC 119.03

Rule authorized by: RC 164.05

Rule amplifies: RC 164.05, 164.051

119.032 Review Date: 1-10-03