Accounting and reporting

Below are resources and reference material related to Executive Order 17-09 signed May 5, 2017 related to promoting fiscal responsibility by recovering monies owed to the state.


​EO 17-09 applies to any agency within the Executive Department as defined in Oregon Revised Statute 174.112, other than the Oregon Secretary of State, Oregon State Treasury, Oregon Department of Justice and Oregon Bureau of Labor and Industries (hereafter referred to as state agencies).

Governor Kate Brown encourages the Secretary of State, the State Treasurer, the Attorney General and the Commissioner of the Bureau of Labor and Industries, as well as the Legislative Assembly and the Judicial Department, to adopt policies and practices to recover liquidated and delinquent debt consistent with the measures adopted by the Executive Order.

Executive Order 17-09

State agencies are required to assign liquidated and delinquent accounts to the Department of Revenue Other Agency Accounts Unit no later than 60-days after the debt is declared liquidated and delinquent. Accounts may be exempted from the 60-day assignment provision per OAM 35.40.10.

**Note: EO 17-09 temporarily supercedes the assignment timelines referenced in the OAM. Since the OAM applies to agencies not subject to the Executive Order, the policies have not been amended to reflect the 60-day assignment timeline.

​DAS will develop a quarterly reporting measurement that tracks debt collection activities. The Governor will set a debt collection benchmark to measure performance of state agencies by January 1, 2018.
​State agencies shall modify their procurement and contracting practices to facilitiate debt collection and shall consider liquidated and delinquent debt owed to the state when evaluating vendors on state price agreements, when issuing purchase orders or similar ordering documents, or when entering into new contracts with vendors.

The State Chief Procurement Officer (CPO) will revise public contract templates to include a model provision that would allow state agencies to recoup liquidated and delinquent debt owed by vendors to any state agency by means of reducing state agency payments to such vendors. The CPO will revise procurement instructions to enable state agencies to consider liquidated and delinquent debt owed to the state when evaluating vendors on state price agreements, when issuing purchase orders or similar ordering documents, or when entering into new contracts with vendors when the contract value exceeds $150,000.

DAS created OAM 35.30.90 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.


​The Department of Revenue (DOR) will assess the feasibility of creating a website listing entities and individuals that owe the state liquidated and delinquent debt and shall report such feasibility to the DAS COO by December 31, 2017.
​DOR will make efforts to recover liquidated and delinquent debt by issuing garnishments using electronic means. DOR shall report to the DAS COO on the results of these efforts by September 1, 2017.





For more information, contact SWARM: swarm@oregon.gov.