EFFECTIVE IMMEDIATELY: CHANGE IN NYS PAYMENT PROCEDURE TO ELECTRONIC PAYMENT
The Office of the State Comptroller is enforcing new payment procedures mandating electronic payment to vendors. Payment for invoices submitted by the vendor shall only be rendered electronically unless payment by paper check is expressly authorized in advance by Accounts Payable due to extenuating circumstances. Once an office receives an approved Purchase Order, they should direct vendors to authorization forms which are available at the OSC website at www.osc.state.ny.us/epay/index.htm, by email at email@example.com or by telephone at 518-474-4032. To avoid this process, P-cards should be used when possible. Contact Accounts Payable with questions.
Section 179 of the State Finance Law requires New York State to pay vendors in a manner consistent with accepted business practices. Specifically, the law requires that when vendors are not paid within 30 calendar days (excluding legal holidays) after delivering acceptable goods/services and a proper invoice to the designated Payable Office, interest will begin to accrue. Interest will be calculated using the “overpayment rate” set by the Commissioner of Taxation and Finance. Interest will only be paid when it exceeds $10 per invoice and when payment is made directly by the State rather than through an intermediary organization such as the Trustee for Certificates of Participation, issued pursuant to Article 5-A of the State Finance Law.
If a department or individual on its own authority, acting as an agent for the University, chooses to change the Purchase Order's designated Payable Office, that department shall solely bear the burden of proof of receipt of the vendor's proper invoice and assume any and all interest charges as stipulated by New York State's Prompt Payment Legislation from that point forward. If the department fails to properly record receipt date of vendor invoice, Accounts Payable will add four days to the invoice date and apply this as the invoice receipt date for interest calculation.
Last Updated: 5/19/10