Through its' "pay-as-you-build" Progress Payment System, the MSBA reimburses districts for eligible project costs during construction. After a community enters into a Project Funding Agreement with the MSBA and submits project costs that have been incurred and paid locally, the MSBA audits the submitted invoices and reimburses the district for its share of eligible project costs. The MSBA typically makes payment within 15 days of receiving a complete reimbursement request.
The major benefits to the system are:
- Communities avoid having to borrow the MSBA’s share of project costs, which reduces both the amount of debt on the local books and interest costs related to financing.
- Communities receive the full amount of the MSBA’s share of project costs during construction and its close-out audit.
- The MSBA is auditing projects as they are built, avoiding the many-year delay between project completion and final cost reconciliation.
- Consistent, predictable payments allow communities to better manage their cash flow.
In 2007 the Pro-Pay web-based system became fully operational. It allows districts to enter cost information and submit a request for reimbursement electronically. This system gives districts:
- The ability to enter and manage budgets that better mirror the MSBA process (Feasibility Study, Scope and Budget Agreement and Funding Agreement).
- Budget management functionality, including the ability to request and approve budget revisions.
- Streamlined and simplified cost categories (chart of accounts).
In addition to the benefits of the Progress Payment described above, the use of Pro-Pay on all its current projects allows the MSBA to collect and analyze a wealth of electronic information to continue to support management of the School Building Assistance program.
Pro-Pay Trainings are generally offered at our offices once a month on the second Friday, but this schedule is subject to change. To sign-up for training, please go here to reserve a spot in an upcoming training class. Reservations will close on the Thursday of the preceding week (If training is scheduled for April 12th, you will need to reserve your spot no later than April 4th.) MSBA requires that districts have an executed first agreement (For CORE projects that means an executed Feasibility Study Agreement and for Accelerated Repair Projects (ARP) that means an executed Project Funding Agreement). Attendees will also need to obtain access to the Pro-Pay system in order to sign up for training.
- Collateral Materials Understanding the Audit Details Tab
- Collateral Materials Understanding the Budget Tab
- Contracts and Agreements as Audit Milestones
- Important Terms
- View Project Advisory on Reclassifying Previously Submitted Eligible Costs in Pro-Pay
- View Project Advisory on Reporting General Contractor Costs in Pro-Pay and Pro-Pay Training
- View Project Advisory on the MSBA Policy on Third Party Funding