to guide state agencies in their efforts to recover liquidated and delinquent debts from entities to which state agencies are remitting significant payments.
Following are frequently asked questions associated with implementing the coordination of vendor payment process in the Statewide Financial Management Application:
1. Is the agency responsible for tracking the garnishment until the debt is paid in full?
No, the EO 17-09 coordination of vendor payment process assumes a one-time garnishment of the pending vendor payment even if the amount of the garnishment is more than the pending vendor payment. DOR is responsible for monitoring collection of the total debt.
Example: Agency ABC notifies DOR of a pending vendor payment in the amount of $500. DOR sends a garnishment to agency ABC in the amount $6,000. Agency ABC remits the $500 vendor payment to DOR (refer to training instructions) and files the garnishment paperwork in the agency files with the payment paperwork. This transaction is completed.
If agency ABC receives another invoice from the vendor and the vendor profile is still inactive in SFMA, the agency notifies DOR of the new pending payment (refer to training instructions) and DOR will provide a new garnishment (if necessary).
If agency ABC receives another invoice from the vendor and the vendor profile is active in SFMA, the agency should proceed with issuing payment directly to the vendor.
2. I notified DOR of my pending vendor payment on 6/8, received the garnishment on 6/8 and when I tried to process the payment on 6/11 the vendor was active in SFMA. What do I do?
Garnish the payment as directed by DOR (refer to training instructions).
Once an agency notifies DOR of a pending payment amount and DOR issues a garnishment, DOR is expecting to receive the pending payment amount.
3. How are vendor profiles being activated so soon?
DOR provides a debtor list daily to SFMA. DOR does factor in any pending payment amounts expected to be received from agencies when determining if a vendor/debtor will remain on the list. If the vendor/debtor is no longer subject to be on the debtor list, DOR will remove the vendor/debtor from the debtor list, then SFMA will activate the respective vendor profile during the nightly batch processing cycle.
Please note: The EO 17-09 coordination of vendor payment process is not the only method used to collect these debts. Additionally, a vendor/debtor may be removed from the debtor list for reasons other than payment in full (e.g. garnishment appeal, payment plan).
4. I notified DOR on 6/12 of my pending payment; as of 6/15 I haven’t received a response from DOR but the vendor is active. Can I pay the vendor?
No, do not pay the vendor directly until you receive a response from DOR (unless it has been more than 5 business days since you notified DOR).
DOR has been responding within 2 business days (or less); therefore, if you haven’t received a response, double check your Revenue Online messages (refer to training instructions) to verify a response was not missed.
5. Why doesn’t DOR issue a garnishment only for the amount of the pending vendor payment?
DOR must issue the garnishment for the total amount of the vendor’s garnishable debt.
6. Why is mail code 444 active when the rest of the vendor profile is active?
SFMS staff are working on program changes to inactivate mail code 444 when the vendor is no longer on the debtor list and the rest of the vendor profile is active.