OFFICE: Office of State Finance / STATE: OK / DATE: 03/01/2012
QUESTION / ISSUE:
The state of Oklahoma would like to know what information other states use to validate vendor information (especially banking information) where vendors are allowed to register online and update their own data.
State / Comments
Arizona / The state of Arizona currently utilizes a statewide e-procurement and purchasing system (ProcureAZ) that allows vendors to self-register. This system interfaces vendor data to our statewide financial system (AFIS), but only for vendors that have purchase orders issued to them. When a new vendor is interfaced to AFIS, we compare the name and Tax ID against the IRS database to determine if they are registered correctly in ProcureAZ. If they are not registered correctly, the vendor is inactivated in AFIS and payments cannot be made to them unless the information is corrected. Once vendors self-register in ProcureAZ, they cannot change their name or Tax ID, but they can change other information such as vendor type, address, minority owned business indicators, etc. The name and Tax ID can only be changed by our State Procurement Office or by us, the General Accounting Office. This is to prevent vendors changing their name and Tax ID when it has already been validated against the IRS database, which helps to reduce our 1099 B-Notices.
Banking information is only in our statewide financial system and is only entered centrally here at the General Accounting Office. We still have paper forms that vendors must submit to our office to set up ACH payments or to change existing ACH set ups. The paperwork to set up new ACH payments must first be validated by the agency they do business with. When we receive paperwork to change ACH information, we call the vendor to validate the last four digits of the account number using the phone number(s) we currently have in our vendor file.
Colorado / We use the IRS tin matching program daily to validate the legal names of our vendors against their EIN’S. If the vendor records do not match, they are placed on hold immediately so payments are not issued. We do not have any systems in place for vendors to enter their own banking information online. The vendors must submit an EFT authorization form and a copy of a voided check or letter from their bank to validate their banking information. These forms are submitted to each state agency. Our office then enters the banking information into our financial system.
Georgia / The state of Georgia does not allow vendors to enter/update their banking information online. We require that a form to be sent to the vendor management group and only that group can enter/update banking information.
In terms of validating vendor information:
- We validate TIN’s through the IRS’ TIN verification website in which the TIN and name must match exactly in order for us to approve a vendor.
- As for banking information, we request that the vendor attach a voided check to the vendor maintenance form.
Minnesota / When vendors register on our website, they are required to provide a FEIN or SSN and create a password (I have attached our registration steps).
Once they have completed the registration process, an email is automatically sent from our system once the vendor has been approved. We provide a login ID, which is the 10-digit vendor ID with a VN prefix. They created the password during registration; this is not provided in the email.
The initial registration is their only opportunity to sign up for EFT online. If they do not sign up at that time, they must provide a paper form to our Central Vendor files. The paper forms are then entered by vendor file staff, all new EFTs are pre-noted for 10 days.When a bank change is made, a letter is sent to the vendor address on file indicating there was an account change. The letter asks that they contact us immediately if they did not request a bank change. I have attached our EFT and bank change forms.
Montana / We are not allowing vendors to update their own bank information at this time
Nevada / In Nevada, we don't have online updating. To verify our vendors banking information they must submit either a canceled check that is imprinted with their name or a letter from their bank or a statement on their letterhead giving us the banking information.
New Mexico / When the vendor submits the W-9 form to register to be a vendor with the state of New Mexico, they have the option of being paid through a warrant (check) or by ACH. If they select the ACH option, they are also required to attach a voided check to be used; 1) to input the information into their bank profile, and 2) to verify the information that they are providing is accurate. In other words, if John Doe is registering, then the voided check should say John Doe and not Mary Sue.
Since the state of New Mexico currently does not have the capability for vendors to register on-line, the same process could be easily established by the vendor providing the information as a follow-up or sending the information through a secured site.
Ohio / In Ohio, we do not have vendor direct entry at this time but we are currently in the assessment phase of a vendor self-service project. Currently we require a voided check from the vendor with a manual form to establish the EFT account.
Oregon / The state of Oregon does not allow vendors to make any changes to the vendor files. All changes go through a central vendor desk so that changes can be verified with original information provided. We have about 140,000 vendors and one FTE maintaining this desk.
Utah / Utah does not allow vendors to register or update their information online. However, to verify a vendor's banking information, we require a voided check (or other documentation from the vendor's bank showing the vendor's name and account number) along with our regular EFT form. To verify that the form was actually submitted by the vendor, we verify the phone number via another source (i.e., their website) and call the vendor to confirm that they want to add/change their bank information.
To verify a vendor's Tax ID number, we use the IRS Tin Matching website.
To verify a vendor's address, we require printed documentation (invoice, letterhead, phone book, etc.) Documentation for the address cannot be hand written (such as a W-9).
Virginia / Virginia does not have a self-registration process that provides for the entry of banking information for EFT. Our process is currently paper-based but due to authentication concerns we’re re-examining the whole process.
Wyoming / Our vendors do not register online.