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Dispute Resolution Procedure Concerning the Amount of Interagency Payments

Statutory Background

The Interagency Cooperation Act requires the Comptroller to determine the appropriate amount owed by one agency to another agency under a written contract or agreement for services or resources if those agencies cannot agree on the amount. If the payment is not made within 30 days, the performing agency may request that the Comptroller transfer the appropriate amount from the receiving agency’s funds. See Tex. Gov’t. Code § 771.008.

Definitions

In this document:

  • Agency includes every state agency in any branch of state government.
  • Business day means any day other than Saturday, Sunday, or a national or state holiday as defined by Section 662.003(a)–(b), Government Code.
  • Defending agency means the agency that has contracted with the initiating agency.
  • Initiating agency means the agency that initiates this procedure.
  • Performing agency means the agency that provided the services or resources.
  • Receiving agency means the agency that received the services or resources.
  • Resources means materials and equipment.
  • Services means special or technical services, including the services of employees.
  • USAS means the uniform statewide accounting system.

Delegating Powers And Duties Under This Procedure

To the extent allowed by law, the Comptroller may delegate a power or duty of the Comptroller under this procedure to any employee or division of the Comptroller.

Good Faith Attempt To Resolve The Dispute

The Comptroller may not act under this procedure unless the performing and receiving agencies have made a good faith attempt to resolve the dispute.

Requesting The Comptroller’s Intervention

The chief administrative officer of the performing agency or the chief administrative officer of the receiving agency may initiate this procedure by submitting a letter to the Comptroller that includes:

  • a detailed description of the nature of and circumstances surrounding the dispute;
  • the amount in dispute (even if the dispute concerns the quality of services or resources, the initiating agency must state a disputed amount);
  • a copy of the relevant provisions of the contract between the agencies;
  • a copy of the invoice in dispute;
  • documentation of when services were provided or resources were received;
  • a copy of any relevant change order, purchase order, or other document about the procurement and receipt of the services or resources;
  • a detailed description of the good faith attempts to resolve the dispute, including a copy of any correspondence between the agencies about these attempts and any other documentation of the dispute resolution attempts that the Comptroller requires;
  • the USAS coding block from which the receiving agency would pay the total invoice, if the initiating agency is the receiving agency;
  • the USAS coding block from which the performing agency would receive the payment, if the initiating agency is the performing agency; and
  • any legal arguments that the initiating agency believes are relevant to the dispute.

The initiating agency must copy the defending agency on the letter. If the initiating agency fails to copy the defending agency, then the Comptroller will provide a copy of the letter and all related documentation to that agency.

Evaluating The Request For Intervention

The Comptroller will determine whether the documentation provided by the initiating agency satisfies the preceding requirements.

If the Comptroller determines that the documentation satisfies those requirements, the Comptroller will initiate one or more meetings with the performing and receiving agencies to discuss the situation.

If the meetings do not resolve the dispute, then the Comptroller will decide whether to determine the amount owed under the contract between the parties, based on the relevant facts and applicable law. If the Comptroller intervenes, both parties will be notified regarding the decision.

Procedures After The Intervention Request Has Been Granted

If the Comptroller intervenes, then the defending agency must respond in writing to the initiating agency’s letter to the Comptroller not later than the 10th business day after the date of the Comptroller’s notification. The response must include:

  • a detailed description of the nature of and circumstances surrounding the dispute;
  • the amount in dispute (even if the dispute concerns the quality of services or resources, the defending agency must state a disputed amount);
  • copies of the relevant provisions of the contract, invoice, change orders, purchase orders, and other documents concerning the procurement and receipt of the services or resources, to the extent the defending agency believes that the copies provided by the initiating agency are incomplete or incorrect;
  • a statement and documentation about when the services were provided or the resources were received, to the extent the defending agency believes that the statement or documentation provided by the initiating agency is incomplete or incorrect;
  • a detailed description of the good faith attempts to resolve the dispute, including a copy of any correspondence between the agencies about these attempts and any other documentation of the dispute resolution attempts that the Comptroller requires, to the extent that the correspondence or documentation has not been provided already to the Comptroller;
  • the USAS coding block from which the receiving agency would pay the total invoice, if the defending agency is the receiving agency;
  • the USAS coding block from which the performing agency would receive the payment, if the defending agency is the performing agency; and
  • any legal arguments that the defending agency believes are relevant to the dispute.

The Comptroller will review the documentation submitted and determine whether all required documentation has been received. The Comptroller may ask the initiating or defending agency to provide additional documentation if necessary to make an accurate determination.

Unless the Comptroller determines that the circumstances require a delay, a decision will be rendered not later than the 10th business day after the date that all required documentation and arguments are received. If a delay is needed, the Comptroller will notify the parties accordingly.

The Comptroller’s final decision will be in writing or communicated electronically and include:

  • the amount owed by the receiving agency to the performing agency;
  • the USAS coding block that must be used by the receiving agency to make the payment;
  • the USAS coding block that must be used by the performing agency to receive the payment;
  • any accounting instructions that the receiving or performing agency must follow; and
  • the deadline for the receiving agency to make the payment, which must be not later than the 10th business day after the date of the Comptroller’s decision.