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Memoradum

DATE: 07/06/2007

TO: Faculty and Staff

FROM: William A. Nance
Vice President for Finance and Support Services

SUBJECT: Debt to the State of Texas - Holds on Vendor Payments

In order to comply with state regulations set in the Texas Government Code, the General Accounting Office (GAO) is verifying if vendors, employees or students are on payment hold status with the Comptroller’s Office prior to processing a payment from state or university funds. Payment holds are placed against a vendor or individual who is indebted to the state or has a tax delinquency. This includes all state taxes (sales, franchise, and unemployment), default on student loan payments, and/or child support.

Verification of payment hold status occurs when:
• A vendor is set up in SAP; and
• During routine uploads from the Comptroller’s Office payment hold files in the state accounting system.

Departments will be notified of the vendors or individuals hold status when setting up a vendor number or when processing a payment. Vendors and individuals are to contact the state agency which placed the hold and make arrangements on the debt. Once arrangements are met, the state agency which placed the hold will provide appropriate instructions in writing directly to GAO, not to the vendor or individual. Depending on the determination, GAO will respond accordingly.

Comptroller payment holds will not prevent departments from doing business with a vendor or individual, but it will prevent Texas State from issuing a check or direct deposit. Also, in accordance with the Texas Government Code and Education Code, university funds are not exempt from Comptroller payment holds.