Payment Scheduling

To maximize the interest earned on funds held by the state, agencies are required to schedule their payments in USAS. Unless an exception is documented, payments are made 30 days from the last received, either the invoice or completion of services/receipt of goods. There are certain cases when an agency should schedule a payment for earlier distribution.

Agencies are responsible for negotiating early payment discounts when possible and ensuring that those discounts are cost effective. Agencies must seek earlier payment distribution than the payment due date whenever taking a discount would be beneficial to the state.

The Comptroller’s office recognizes unique situations may arise if certain vendors require payment before the standard 30-day period in response to emergencies or disasters declared by the governor. If an agency chooses to process an early payment, the agency should document the business justification in terms of the emergency or disaster event.

A state agency may not pay for goods or services before they are delivered to the agency, unless the advance payment is necessary and serves a proper public purpose. The Comptroller’s office may request additional information to justify any advance payment, including payment made for disaster-related expenses. See Advanced Payments for more information.

See Chapter 2155.382 of the Texas Government Code.

Definitions

Payment

Money owed to a vendor.

State agency

• A board, commission, department, office or other agency in the executive branch of state government created by the constitution or a statute of this state, including an institution of higher education as defined by Texas Education Code Section 61.003.
• The Supreme Court, the Court of Criminal Appeals, a court of appeals, a state judicial agency or the State Bar of Texas.