FWS partners with IBC to Meet Prompt Payment Act Mandate
Fish and Wildlife Service partnered with the Interior Business Center in the consolidation of the bureau’s regionally dispersed payment processing, greatly minimizing prompt pay interest. Within six months, the percentage of payments incurring interest went from 10% to 3%, as the backlog was reduced. More important, the total dollars spent on interest penalty payments stayed below 1% during this time. In FY13, IBC’s accounting operations staff has processed 47,611 invoices, with a total dollar amount of $397,976,204.20.
The Prompt Payment Act generally requires agencies to pay its contractors within 30 days of receipt of relevant documents. Representatives from Fish and Wildlife Service, Brian Bloodsworth, Bureau Lead and FWS FBMS Project Manager, and Rick Coe, Denver Operations Manager for the Division of Financial Management, have publicly acknowledged IBC’s performance related to prompt pay and the successful partnership they share with IBC’s accounting operations staff.
In 2012, the FWS and 60 Departmental Offices (including the IBC) converted to DOI’s new Financial and Business Management System (FBMS). In advance of the deployment, FWS contacted the IBC about a partnership. Previously, the FWS had been processing miscellaneous vendor payments throughout their dispersed regions. Outsourcing vendor payments to IBC has allowed FWS to meet the FBMS separation of duty requirements and focus on issues that are more mission centric.
FWS leadership realized that with the challenges of learning a new financial system and its separation of duty requirements, payment processing would be more efficient and cost effective if consolidated in one single location. Therefore, outsourcing payment processing to the IBC offered the most viable solution to that problem.
To learn more: