7.2 - Claims

Introduction

This section describes the process for making claims for financial assistance.

Progress claims

Progress claims may be made monthly for all qualifying expenditure that is supported by certified invoices. An approved organisation need not have made an actual payment at the time of claiming financial assistance. These claims shall be based on the estimated value of works in place.

Rule: Claim items are to be listed in accordance with the work categories identified in the approved programme. Calculations are to the nearest dollar.

Community focused activities

Land Transport NZ recognises that payment for some community focused activities carried out by not-for-profit entities need to be made in advance of the activities being delivered.

Submitting and paying claims

Land Transport NZ requests that approved organisations submit monthly claims to Land Transport NZ regional offices by the 7th working day of the following month. As a minimum, claims will be required to the end of September, December and each month following, through to the final claim. This may be varied by agreement with Land Transport NZ’s partnership manager for approved organisations with small programmes.

Land Transport NZ will pay claims within 21 days of their receipt. Approved organisations being paid by electronic means will be advised of the payment date and if the value of the payment varies from the claim.

Certifying claims

Unless Land Transport NZ specifically requires otherwise, payment of financial assistance is dependent on the officer certifying the claim form accepting responsibility for appropriate design, construction/implementation procedure, and quality of materials. The value of work claimed must be certified by the approved organisation’s Chief Executive or approved delegate.

The endorsement of the claim form will be taken to certify that these matters were undertaken to a standard fit for their intended purpose.

Note: Financial assistance is also dependent upon the council’s adoption of agreed standards as set forth in Land Transport NZ’s Standards and guidelines manual.

Internet claims

Approved organisations must claim for payment via the internet. Land Transport NZ will issue a secure password to an authorised representative of each approved organisation. That representative must be given the appropriate delegation to certify the claim.

Note: The certification comprises the same information as contained on the form on the next page.

Form 7.1

This form serves as a certification and summary of claims for financial assistance. This form is replicated in the internet claim system.

Tax invoice and claim for payment

Final claims

Final claims are those that claim for work done to 30 June within the approved allocation. The final claim must be based on accrued expenditure and be supported by certified invoices or certificates of work done. Claim items are to be listed in accordance with the work categories in the approved programme.

Supplemental requests

Supplemental requests are those that claim for work done to 30 June in excess of the approved allocation. The following applies:

• Over-expenditure on improvement projects that have an allocation in the next year may be claimed as advanced work.
• Over-expenditure on improvement projects in excess of the approved total cost will be considered on a case-by-case basis. Supporting information is required as if it were a request for a price level increase at a review.

Deadline for final claims and supplemental requests submission

Final claims and supplemental requests are to be submitted separately and received by the regional office no later than 31 July. Supplemental requests are to be submitted as a review request as per section 7.3. Once approved, an electronic claim should then be submitted.

Approved activities

Financial assistance is payable only on expenditure on approved activities and projects included in the NLTP.

Note: For programme items (other than block allocations) that include fees and/or property with the physical works component, financial assistance for fees or property shall not be claimed until the physical works tender has been contractually committed.

Commitments

Where a project has been approved by Land Transport NZ for inclusion in the following year’s national land transport programme (NLTP), but the project has commenced in the preceding year, the following process occurs:

Projects undertaken in previous years

Apart from the above, and with exception of investigation/ design fees and land purchase associated with approved projects, expenditure on works in a previous financial year does not qualify for financial assistance in the subsequent programme year.

Claims where financial assistance applies to only part of the cost

The financial assistance claim shall only show the expenditure that is eligible for financial assistance, eg:

• street cleaning in urban areas (30 percent of the cost) - refer to section 2.3 - work category 113: Routine drainage maintenance
• relocation of services - refer to section 4.22
• construction of stock crossings - refer to section 4.24
• construction and renewal of stock truck effluent disposal facilities (50 percent of the cost) - refer to section 4.25.

Claims subject to audit

Claims for financial assistance are not checked in detail prior to payment. Land Transport NZ has arranged for periodic audits of selected claims. These are called procedural audits. Land Transport NZ regional staff will regularly monitor the status of claims submitted and may ask to check the balance in the land transport disbursement account to ensure that large credit balances are not being held.

Note: Detailed examination automatically follows in any case reported to Land Transport NZ by the Office of the Controller and Auditor-General.

Cost recording

All expenditure from the land transport disbursement account shall be recorded in that account in a form that is compatible with the approved programme.

Record keeping

Whatever form of accounts is adopted by an approved organisation, adequate prime records and working papers must be held to support claims to the satisfaction of the Office of the Controller and Auditor-General and Land Transport NZ’s performance monitoring team.

The following specific records are to be retained by approved organisations for a period of at least seven years after the end of the financial year to which they relate:

• books of account (whether contained in a manual, mechanical, or electronic format) that record receipts and payments or income and expenditure
• vouchers, bank statements, invoices, receipts, and such other documents as may be necessary to verify the entries in the books of account
• accounts (whether contained in a manual, mechanical, or electronic format)
• procurement documentation that clearly shows the procedure used to contract every supplier of works or services that are eligible for financial assistance from Land Transport NZ.

Note: Land Transport NZ may, at its discretion and on request by any approved organisation, dispense with the need to retain any of the records specified above.

Over-claims

Over-claims become a debt due to the Crown immediately upon establishment of the debt.

Refund

Where Land Transport NZ agrees to a refund being made by instalments, interest is payable.

False certificates

Attention is drawn to the relevant section of the Public Finance Act, which provides for the imposition of penalties on persons who give false certificates for the purpose of procuring for any approved organisation the improper payment of any public money.