This measure is important because DVHA is required by Finance and Management Policy 5.0 to pay vendors on-time and according to generally accepted standard payment terms: Net30 for contracts and Net00 for grants.

This performance measure informs how efficiently the unit is managing the financial aspects of its agreements.  Approximately 21% of DVHA agreements have Net 00 terms rather than the State standard Net 30. The majority of those are grant agreements, requiring more detailed backup support from vendors before payment is fully approved by the State. This has often resulted in invoices initially being rejected or DVHA requiring and waiting for additional information from vendors, thereby delaying the process. Additionally, the VISION system determines payment due date based on the date of the vendor’s invoice. DVHA’s agreements, however, are contractually based on the date the State receives an error-free invoice and complete supporting documentation, not on the date of the invoice. DVHA works to initially review invoices within three business days to promptly identify issues and inform vendors of needed corrections, including invoice dates that match submission dates.  Invoice processing KPIs are used to locate barriers to successful operations and design strategies that will lead to better performance.

Annually, the number of invoices processed in June will be lower than average, due to the AP system shutting down on June 15th each year. This also causes an increase to the number of invoices processed in July each year, with the % of invoices processed timely dropping in July due to invoices due between June 15-July 1st that were not able to be processed. Additionally, the number of invoices will generally increase the month following a quarter-end, due to some vendors billing on a quarterly basis for services performed.

Narrative last updated:  07/31/23

• Department of Finance & Management
• DVHA Vendors