Portaria SF Nº 275: Expense Procedures in São Paulo

Portaria SF Nº 275

• Sets procedures for liquidating and paying expenses within the Direct Administration, Autarchies, and Public Law Foundations of São Paulo.
• Published on September 5, 2024.
• Legal attributions of the Municipal Secretary of Finance were used
• The need to standardize liquidation and payment procedures for expenses within the Direct Administration, Autarchies, and Public Law Foundations of São Paulo was considered.

Legal Considerations

• Federal Laws nº 4.320 from March 17, 1964, and nº 14.133 from April 1, 2021 are taken into account.
• Federal Decree N° 8.373 from December 11, 2014, is another legal base.
• Normative Instructions from the Brazilian Federal Revenue Office nº 1.234 from January 11, 2012, and nº 2.110 from October 17, 2022, are factored in.
• Municipal Decree nº 62.100 from December 27, 2022, regarding procedures for liquidating and paying public expenses, is a consideration.
• Liquidation is seen as the process of verifying the legitimacy and enforceability of titles and supporting documents for public expenses, including the creditor's right, origin, and object.
• Parecer nº 11.267/2008 from the Procuradoria Geral do Município, regarding the impossibility of conditioning the payment of contractual installments to the fiscal regularity of the contracted party was also considered.

Article 1 and its Requirements for Expense Liquidation and Payment

• The liquidation and payment process for expenses from purchases, services, or works must be formalized by the contract supervisor in a duly authorized file.
• This file must include the following documents in chronological order:
• A copy of the requisition for the supply of materials, services, or execution of works.
• An electronic service invoice or electronic merchandise sale invoice-DANFE, receipt or invoice, or equivalent document.
• Detailed measurements verifying the execution of works or quantity produced, for service provided by production, related to the payment period.
• Verification of the electronic service invoice or electronic merchandise sale invoice-DANFE, receipt or invoice, or equivalent document, following Art. 120, III, of Municipal Decree nº 62.100/2022, according to ANEXO ÚNICO of this Portaria.

Additional Requirements for Continuous Service Provision with Exclusive Labor

• In continuous service provision that includes the assignment of exclusive labor, the following documents must also be included:
• An updated list of employees linked to the contract's execution in the month before the service provision.
• The attendance record of employees linked to contract execution in the month before the service provision.
• The payroll of employees linked to the contract's execution for the month before the service provision.
• Digital FGTS (Fundo de Garantia do Tempo de Serviço) Guide - GFD with proof of payment correlating to the month prior to service provision.
• A conference report “Detalhe da guia emitida” from FGTS Digital, listing the employees corresponding to the presented GFD, relevant to one month prior.
• DCTF WEB protocol demonstrating the amounts to be collected for the corresponding Social Security Contribution for the month prior.
• DARF generated in DCTF WEB, with respective payment receipt, pertaining to social security contribution (INSS).
• Proof of payment for salaries, additional payments, overtime, weekly paid leave and 13th salary.
• Proof of payment for transportation and food vouchers.
• Receipt of concession and payment of vacation and respective additional payment, if applicable.
• Proof that all employees linked to the contract receive payment in a bank agency.

Considerations for the Last Month of Service Provision

• For payments related to the last month of service provision, a copy of the work contract termination.
• Must include duly approved work agreements of the employees linked to the service provision, or proof of relocation of these employees.

Essential Information for Fiscal Documents

• The fiscal documents mentioned in item II of the "caput" of this article must detail the following:
• Company name.
• CNPJ as per the commitment note.
• Contracted object.
• Reference period.
• Quantity and price of materials and/or the identification of services.
• Corresponding unit and total prices.
• If payments involve the supply of materials and/or inputs essential for rendering contracted services, and these are not paid via NFE-DANFE in the paying body's name, these values must be included in the body of the service provision invoice.
• Values cannot be admitted via other documents that do not constitute legally established fiscal documents, such as debit notes or separate receipts.

Definitions for the Purpose of Article 1, § 1, Clarification

• Assignment of labor: making employees of the contracted company available to the contracting body or entity.
• Continuous services: those that constitute a permanent need of the contracting body or entity, recurring systematically or periodically.
• Third-party dependencies: those indicated by the contracting body or entity that are not its own and do not belong to the contracted service provider company.
• Documents as per Art. 1 can be delivered in digital format by the contractor but originals should be presented upon request.
• With digital document delivery, the liquidation and payment process must show proof of delivery date from contractor to contract supervisor.
• The reception date counts when received by 6 PM; after that, the next business day counts.
• If documents are physically delivered, the contract supervisor must identify the delivery date using a protocol stamp or documentation receipt.
• For services related to hiring a self-employed individual with more than one employment relationship, the liquidation and payment process must include document to prove INSS (Brazilian National Institute of Social Security) to RFB, for E-Social data purposes according to IN 2110/2022.

Article 2: Responsibilities of the Contract Supervisor

• To receive and analyze all documents related to Article 1, verifying compliance, especially regarding the following:
• Whether the quantity, description, and value of services/materials in the fiscal document match the documents in items I and III of the "caput" of Article 1.
• For continuous service provision with exclusive labor: whether all employees effectively present at work are listed in the document referred to in item I of § 1 of Article 1.
• Whether the attendance records of all employees related in the document mentioned in item I of § 1 of Article 1 are correct.
• Whether all employees listed in the document mentioned in item I have correct payment days in the payment sheet - item III.
• Whether the proofs described in items VIII to XI are in accordance with the terms of the Portaria.
• Whether all employees are listed in the document mentioned in item V, as well as whether the payment proof referred to in item IV is in agreement.
• Verify that proof refers to the correct creditor, and correct month.
• To separately initiate the liquidation and payment processes from the bidding or contracting process, associating them through process linking in the SEI, as per article 44.
• Attest to the delivery of goods and/or provision of services with ANEXO ÚNICO.
• To forward the payment and liquidation process to the contract management unit.
• If there are errors in the documents listed, the contract supervisor must request the contractor to make corrections.
• If the fiscal documents presented are not in compliance, the cancellation or replacement of the fiscal note or equivalent document should be requested from the contractor.
• If the contracted party does not agree with the replacement of the fiscal note or equivalent document, the value must be recorded, with the fiscal withholdings remaining on the gross value of the fiscal note.
• Inform any eventual contractual infractions committed by the contracted party for later investigation by the Management Unit if services/goods were not provided/delivered.

Further Considerations for Liquidation and Payment

• For the purposes of item II of the "caput" of this article, a process will preferentially be initiated for each payment, allowing the inclusion of more than one fiscal note in each process.
• The liquidation and payment of expenses may be carried out in the contracting process for the provision of services, acquisition of goods, or execution of works with a single delivery and payment.
• The supervisor's attestation period starts on the day following the date of delivery of the complete documentation by the contracted party.

Responsibilities of the Contract Management Unit

• To initiate a file, associating it with the bidding or contracting process through the process association resource in the SEI, as per article 44 of Portaria Conjunta.
• Update the certificates described, and in the case of irregularities, notify the contracted party to regularize within 5 business days.
• In the liquidation and payment process:
  • a) check measurements, invoice or equivalent document, and other documents.
  • b) if the documents, conform, forward the process to the accounting unit of budget execution as per each organ.
  • c) if the documents cited do not conform, return the process to the contract Fiscal for corrections.

Protocol for Contractual Infraction

• In the event of a contractual infraction, request the accounting unit to return the process to adopt the procedures outlined in the Budgetary and Financial Execution Decree in force and in articles 145 to 149 of Decree nº 62.100.
• The corresponding amount should be withheld in the liquidation and payment note.
• If there are no more payments to be made.
• Should the penalty applied be greater than the guarantee provided and the difference not collected, the debt related to the remaining amount must be registered in the Cadastro Informativo Municipal.

Responsibilities of the Accounting Unit for Budget Execution

• To verify the regularity of the invoice or equivalent fiscal document for payment, as well as to audit the conferences made by the fiscal and contract management as outlined in this ruling, in the contract and in its respective amending terms.
• To confirm the existence of sufficient commitment balance for the liquidation of the expense.
• To issue and insert the service taker's invoice (NFTS) in the SEI process.
• To analyze the need to withhold taxes due and other discounts relating to the payment of the expense.
• Manifesting the regularity in the instruction of the liquidation and payment process to the expense controller, with a demonstration of the withholdings, discounts, net amount, and payment term.
• Elaborating a document authorizing the liquidation, with a demonstration of the taxes withheld and discounts made.

Final Steps in the Accounting Unit

• To, at least 3 days before the obligation's due date, liquidate the expense in the Budgetary and Financial System (SOF), issue the Settlement and Payment Note (NLP).
• To safeguard the liquidation and payment process until the payment is completed, except in cases in item IV of Art. 3º and in Art. 6º.
• To include the payment receipt, consisting of the payment receipt or the NLP with the authentication code
• To, after the payment is completed, forward the process to the Fiscal for closing purposes, except in cases provided.
• If the contract does not define the obligation's due date or only stipulates "monthly payments", the Budget Unit will adopt, as the obligation's due date, 30 days as of the date of delivery.
• Debits or the absence of the documents do not prevent the liquidation and payment, according to legislation on the matter.
• Without prejudice, when the contract object is divisible, the Unit responsible may perform a partial liquidation in proportion to its approval.
• In cases of irregularities in the transaction, the Accounting Unit must inform the expense controller, for the necessary regularization.
• A counter’s orientation should be provided to the audit and control unit regarding any questions about checking payroll documents.

Additional Municipal Regulation

• According to municipal legislation, it must be verified that there is no registration.
• In the Municipal Information Register – CADIN, when paying the expense.
• This is done by the Department of Financial Administration – DEFIN of the Sub-secretariat of the Municipal Treasury – SUTEM of the Finance Secretariat – SF, in relation to the obligations of the Direct Administration, and,
• By the respective Financial Boards, in relation to the organizations, in relation to the autarchies and foundations of Public Law.
• The existence of a pending issue in the Municipal Information Register – CADIN does not keep.
• When the processing of the note of commitment and, consequently, of the payment note is not allowed.
• According to publication, the Budget Unit must:
• check with the Legal Advice of the respective Department regarding the legitimacy.
• access the spreadsheet; the documents must be forwarded to the Budgetary Execution System Management Division.

Concluding Points

• Budget should focus on contractual payment deadlines, with managers accountable for financial compensations due to delays.
• If delays occur, or are anticipated, the contract supervisor/manager should seek payment deadline extensions from the creditor to avoid financial penalties.
• The division/nucleus/team responsible must notify the contract supervisor/manager.
• Observance of relevant legislation.
• Department of Accounting .
• Questions regarding the application should be directed to the Department of Accounting.
• This ruling takes effect on the date of publication, revoking previous rulings.