1. Business Billing & Collections: Older Is Not Better Presented By: Becky Barnett, eVA Business Manager Kelly Flexon, Deputy eVA Business Manager Bryan Chamberlain, eVA Billing & Collections Manager 2010 Virginia Public Procurement Forum

2. 2 Why eVA Fees?? Virginia General Assembly Directed That eVA Be A Self-Funded System –eVA Fees Are The Only Source of Funds –eVA Receives No General Funds Spreads The Cost Across All Users and all Funding Sources –Vendors –Agencies & Institutions of Higher Ed Business

3. 3 About Invoices Invoices Are Issued Bi-Monthly Business Agencies And Vendors Whose Names Begin With A Thru J Or Special Characters July September November January March May Vendors Whose Names Begin With K Thru Z August October December February April June Payments Are Due In 30 Days Collection Process Starts When Fees Are 60 Days Past Due

4. 4 Applicable Regulations Virginia Debt Collection Act Code of Virginia §2.2-4800 thru 4809 Fair Debt Collection Practices Act Title 15 of the United States Code United States Bankruptcy Code Title 11 of the United States Code Commonwealth Accounting Policies and Procedures (CAPPS) Manual Virginia Department Of Accounts Business

5. 5 Collections Process Step 1.a – Notice (60 Days Past Due) Written (Dunning) Notice To Vendor List of Vendors Provided To: –DPS Procurement Bureau –DGS Division of Engineering and Building –VITA Supply Chain Management –Other Agencies, By Request Business

6. 6 Collections Process Step 1.b – Notice (60 Days Past Due) Breach of Contract –If the vendor has an active statewide contract issued by DPS, a Vendor Complaint Form is issued requiring the vendor to cure the breach to avoid having the contract terminated for default. –This action is in addition to Step 1.a. Business

7. 7 Collections Process Step 2 – Debt Set Off (90 Days Past Due) Claim Submitted For Debt Set Off eVA Registration Deactivated List of Deactivated Vendors Published on eVA Knowledge Center Business

8. 8 Collections Process Step 3 – Collection (120 Days Past Due) OAG Division of Debt Collection –$3,000 Or More Private Collection Agency –Less Than $3,000 Business

9. 9 Mitigating Factors Vendor Fee Disputes –P.O. Amount Greater Than Vendor Invoice Amount –Order Canceled By Agency –Order Rejected By Vendor –Wrong Fee – Small Business Fee Cap Not Applied –Exempt Product/Service (APSPM 14.9.b.) –Vendor Not Registered or Registration Canceled –Unregistered Vendor Refused Fee Bankruptcy Business

10. 10 Disposition eVA Registration Reinstated –Payment In Full –Payment Plan –Debt Discharged (Bankruptcy) –Debt Adjusted – $0.00 Account Balance –Debt Collected – New Registration Agreement Signed (Pen and Ink) Business

11. 11 Frequent Questions What do I do if I have an open purchase order or active contract with a vendor that has been deactivated for non-payment? –Any agency that desires to continue doing business with a deactivated vendor that holds an existing contract is encouraged to contact the vendor and remind them of their contractual default. If a vendor agrees to cure its default, the vendor or the agency should contact Bryan Chamberlain, eVA Business & Collections Manager, to coordinate payment and registration reactivation. Ron Bell’s 9/20/2010 Memorandum To Agency and Institution of Higher Education Purchasing Directors Business

12. 12 Frequent Questions What can I do when I need to purchase from a vendor that has been deactivated for non- payment? –If any agency feels compelled to do business with a deactivated vendor, the agency must document the procurement file and process the order following the procedures set forth in APSPM Section 14.11.b for vendors not registered in eVA. (Ron Bell’s 9/20/2010 Memorandum To Agency and Institution of Higher Education Purchasing Directors) Business

13. 13 Frequent Questions How do I find out if a vendor has been deactivated for nonpayment? –The vendor will no longer be available for selection when you are creating an eVA requisition, shopping in the eVA eMall, selecting vendors for an eVA Quick Quote, creating an eVA bidders list, etc –The vendor will be included on the list published on the eVA Knowledge Center Business

14. 14 Frequent Questions Are There Other Issues That Could Result In Deactivation Of A Vendor Registration? –Returned Mail (Invoices) –Vendor Request –Suspension or Debarment –No Longer In Business Business

15. 15 More Questions ??? Contact Information: Becky Barnett, eVA Business Manager (804) 225-3689 rebecca.barnett@dgs.virginia.gov Kelly Flexon, Deputy eVA Business Manager (804) 371-2628 kelly.flexon@dgs.virginia.gov Bryan Chamberlain, eVA Billing & Collections Manager (804) 225-4046 bryan.chamberlain@dgs.virginia.gov Business