Vendor Attachment

Presentation to Participating State AgenciesAug. 18-19, 2010

Revised Sept. 22, 2010

Agenda

• Definition of Vendor Attachment• The Vendor Attachment Process

OSC NCDOR Agencies

• Handling Calls From Impacted Vendors• Questions

Vendor Attachment

• Vendor Attachment allows the state to deduct back taxes owed by vendors from State payments to those vendors

• Vendor Attachment is authorized by G.S. 105-242(b)

• Vendor Attachment represents a significant process change for OSC

• Vendors refer to businesses that do business with selected state agencies

• The Vendor Attachment project involves agencies that use the N.C. Accounting System or NCAS

Impacted Taxpayers

• The funds are deducted from payments before they are sent to vendors

• Vendors receive notices of attachment from NCDOR informing them of the transaction

• Vendors will receive attachment notices only if their tax cases have been “final billed”

All reviews and appeals are complete All cases thoroughly vetted by NCDOR staff

Vendor Attachment Process: OSC

• Office of State Controller will create a file of all scheduled vendor payments nightly each business day

• The file will be transmitted to NCDOR File will not include employee payments such as

expense reimbursements

Vendor Attachment Process: NCDOR

• NCDOR will match the vendor payments against list of taxpayers that owe taxes

• Send a new file with matches back to OSC

• Generate Attachment Notices for each match

• Mail attachment notices to vendors

Vendor Attachment Process: Agencies

• On receiving the matched file from NCDOR, OSC will create a debit memo against the vendor payment

• Invoice created to redirect funds to NCDOR• Vendor Attachment Report titled MM122-V AP

Vendor Attach is produced each day for agency review

DATE: 8/16/2010 PAGE: 1REPORT: XXXXX

PAYING ENTITY: 14PT

ORIGINAL INVOICE PAYMENT BNK PMT ORIGINAL ATTACHMENT DEPT OF REVENUE DEPT OF REVENUEVENDOR NO GRP NO VENDOR NAME INVOICE NUMBER DATE DATE CODE CHECK NO AMOUNT INVOICE NUMBER CHECK NO

123456789 01 SAMPLE VENDOR 1 ABC123 07/31/2010 08/16/2010 14D 0000012345 1,145.00 DS08161001 0000054321123456789 01 SAMPLE VENDOR 1 123ABC 07/28/2010 08/16/2010 14D 0000012345 125.25 DS08161002 0000054321987654321 A SAMPLE VENDOR 2 MAY 2010 FEES 08/01/2010 08/16/2010 14D 0000012346 35.00 DS08161003 0000054321

STATE OF NORTH CAROLINA ACCOUNTING SYSTEMVENDOR ATTACHMENT INVOICES

PAID TO DEPARTMENT OF REVENUE 561611838 DS

Vendor Attachment Process: Agencies

• CMCS transfer on CMCS screen 13 automatically posted in prepared status

• Agency responsible for passing the transfer as automated - OSC budget code 64159 titled OSC – Vendor Clearing

• OSC is responsible for remitting all funds to NCDOR

Calls From Vendors

• Refer calls to NCDOR’s Central Collections Unit

1-877-919-1819, extension 10053

• Employees there handle calls from taxpayers every day

Those employees will receive special training for calls from state vendors

Implementation Timeline

• Migrating Data: Sept. 1-7• First File Generated From OSC: Sept. 22• First Notices Go Out: Sept. 23

11

Questions