Primary Department: County Administration
Primary Department Head/Elected Official: Jesse Dickerman, Interim County Administrator
Secondary Department: Choose an item.
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable):
Vendor/Entity Legal Name (if applicable):
MWBE Contracted Goal (if applicable):
MWBE Current Participation (if applicable):
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable):
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request for discussion and possible action on the Harris County Prompt Payment Act Policy.
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Background and Discussion:
On November 30, 2021, at the request of Harris County Commissioner Precinct 2, the Commissioners Court Analyst's Office issued a memo identifying data limitations that made it difficult to determine when invoices were paid late. These limitations created challenges in ensuring compliance with the Texas Prompt Payment Act (PPA), which requires the calculation and payment of interest on qualifying late payments.
In 2022, the County Auditor's Office issued a memo identifying three key requirements to support PPA compliance: (1) improving data capture for invoice tracking, (2) standardizing business processes across departments, and (3) automating interest calculation within the County's financial system. The first two requirements have advanced through the County's broader Procure-to-Pay (P2P) improvement efforts.
The Prompt Pay Project addresses the third requirement by implementing automated calculation and application of interest on late invoices. Together with the supporting policy, this effort will establish consistent standards for how the County applies the Prompt Payment Act, strengthens accountability for timely processing, and improves transparency in...
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