COLLECTING FROM ANOTHER STATE AGENCY/DEPARTMENT - 8293.3

(Renumbered: 10/2020)

(Revised and renumbered from 8776.8)

Pursuant to Government Code section 11255, an agency/department that provides services to another agency/department may recover outstanding receivables by initiating a Transaction Request (TR) form (CA 504) with the State Controller’s Office (SCO) to transfer funds from the debtor department.  This option shall be used on a limited basis, and only when the following conditions are met:

 

• The invoice was not paid by the requested due date
• Nonpayment provisions are included in the interagency agreement between the agencies/departments
• The invoice has not been disputed
•  A 30-day notice has been provided to the debtor department that a transfer of funds will be initiated for nonpayment  

Interagency Agreements Language

 

Include the following when preparing interagency agreements:

• Specify the process for nonpayment. 
• Cite Government Code section 11255 as the authority for processing a TR.
• The agency/department receiving the services (or debtor department) shall provide the appropriation to charge if payment is not made timely. This appropriation data must include: fund number, organization code/business unit, fiscal year, reference, and category or program. If applicable, also include element, component, and task.
• It is the responsibility of the agency/department providing the services to ensure that no disputes exist before submitting a TR to the SCO.

 

Submission Requirements to the SCO 

 

On the TR, indicate the debtor agency’s/department’s appropriation data to charge, as identified in the interagency agreement, and the initiating department’s appropriation data to credit the payment. In the Legal Authority and Reason for Request box, indicate the items below:

• Authority for initiating the transfer:  Government Code section 11255
• Interagency agreement number
• Invoice numbers and dollar amounts for which you are requesting a transfer. If the list is long, include an attached table with the invoice numbers, amounts, and appropriation string. Include the language “See attached” in the legal authority.

Attached to the TR, agencies/departments must also submit a copy of the following: 

• Notification sent to the agency/department that the transfer of funds will occur
• Interagency agreement 
• Applicable invoice(s). It is permissible to submit a list of the invoices, in lieu of the invoice copies, when there are more than five invoices 

The TR and attachments must be submitted to the SCO at the following address:

State Controller’s Office
State Accounting and Reporting Division
State and FI$Cal Accounting Section, Bureau of Accounting and Consulting Unit 3301
C Street, Suite 760 Sacramento, CA 95816