This is to provide information on requirements/mandates to vendors and contractors. Please review the following carefully and submit all required documentation completely and accurately to ensure compliance with governing requirements.
In an effort to reduce wasteful spending and streamline operations the NYS Office of Taxpayer Accountability (OTA) has issued a Directive to State Agencies, which requires contractors to accept electronic payment for goods and services provided. This requirement to accept electronic payment will be of mutual benefit to the State and its contractors and will result in significant savings to the State, as use of paper checks is a less timely and efficient means of rendering payment and the processing of paper checks require the State to incur unnecessary expense (paper, toner, postage, etc.).
Effective March 1, 2010, all State Agency contracts and purchase orders will contain a "Contract Payment" provision similar to the one below, and vendors will only receive payment via electronic means. The requirement to include this provision in agency contracts, grants and purchase agreements may only be "waived" by the Governor's Counsel's Office where valid and significant concerns exist in the implementation of this requirement.
Contractor shall provide complete and accurate billing invoices to the Agency in order to receive payment. Billing invoices submitted to the Agency must contain all information and supporting documentation required by the Contract, the Agency and the State Comptroller. Payment for invoices submitted by the Contractor shall only be rendered electronically unless payment by paper check is expressly authorized by the Commissioner, in the Commissioner's sole discretion, due to extenuating circumstances. Such electronic payment shall be made in accordance with ordinary State procedures and practices. The Contractor shall comply with the State Comptroller's procedures to authorize electronic payments. Electronic Payment Authorization Forms are available at the State Comptroller's website at www.osc.state.ny.us/epay/index.htm, by email at firstname.lastname@example.org, or by telephone at 518-474-4032. Contractor acknowledges that it will not receive payment on any invoices submitted under this Contract if it does not comply with the State Comptroller's electronic payment procedures, except where the Commissioner has expressly authorized payment by paper check as set forth above.
Only an original Electronic Payment Authorization Form will be accepted and should be submitted with an attached voided check (as verification of your business banking information). If you (the vendor) chose not to submit a voided check, you should have your financial institution complete section-two of the authorization form and mail it to the address provided at the end of this notification.
New York State is implementing a new Statewide Financial Management System to improve processing and enhance operational efficiencies. As a principal component of this initiative the Office of the State Comptroller (OSC) is establishing a centralized vendor file. To facilitate this effort OSC is requiring vendors to submit Substitute Form W-9, containing their taxpayer identification number, business name, and business contact person information. This data is critical to ensure the vendor file contains the information necessary for agencies to contract with and render payment to the vendor.
Vendors should submit the Substitute Form W-9 along with an original of the Electronic Payment Authorization (EPA) Form by March 1, 2010, if they have not already so. The EPA Form, together with the Substitute Form W-9 should be mailed to OSC at:
NYS Office of the State Comptroller
Bureau of Accounts
Warrant & Payment Control Unit
110 State Street, 9th floor
Albany, NY 12236