Vendor Attachment Presentation to Participating State Agencies Aug , 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 (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 produced each day for agency review

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 titled OSC – Vendor Clearing OSC is responsible for remitting all funds to NCDOR

Calls From Vendors Refer calls to NCDOR’s Central Collections Unit  , extension 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. 8 First Notices Go Out: Sept. 9

11 Questions