Establishment of Vendors as Goods/Service Providers for Consumers

Prepare and Distribute a Goods & Services Vendor Package

Policy:

The Goods and Services Vendor Package consists of all forms that must be completed by the vendor and participant or the designated representative, when procuring goods or services from a vendor for the program.

Consumers will receive the Goods & Services package from their <<counselor>>. <<The counselor>> will review each form with the participant, helping the participant to understand the purpose and how to complete each form in the package. Each participant will receive a blank Goods and Services Vendor Package with their Welcome Package.

Throughout the program consumers will receive their supply of Goods and Services vendor packages from F/EA as they request packages to hire vendors.

F/EA is responsible for updating the Goods and Services vendor packages as applicable. F/EA will check on a monthly basis for updates on forms. As forms are updated, changes will be made to the vendor package. Packages that include updated forms are sent to consumers when they request vendor packages.

Note that individual workers are rarely considered "Goods and Services Vendors." A "Goods and Services" vendor is usually an agency, corporation, licensed non-profit or other independent contractor.

Procedure:

A blank Goods and Services Vendor package is included in each participant's Welcome Package.
Each blank Goods and Services Vendor package includes the following documents:
Information on F/EA operations and policies is provided for the Goods and Services Vendor in the package, including a payment schedule, contact information and roles and resposibilities of of the F/EA
Vendor agreement
A payment request form is included in each package

This form is used for goods and services vendor to propose services that they will provide to submit to F/EA to receive approval for payment

6. Vendor Enrollment Information Form

This form collects all of the relevant information in order for vendors to be issued payments in the program.

7. IRS Form W-9: Request for Taxpayer Identification Number and Certification, and Instructions for Qualified Independent Contractors Providing Approved Goods and Services

8. This form is provided to collect vendors Taxpayer Identification Numbers (TINs), in order for their invoices to be processed.

This information is needed in order for IRS Form 1099 to be processed for vendors at year end.

9. Medicaid Provider Agreement, as applicable

10. Direct Deposit Form

Internal Controls:

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

The methods of internal control utilized by F/EA to distribute Worker Hire packages are:

A control document is used to track checking for updated forms at least monthly.
- Staff verifies that new forms have been looked for at relevant agency websites at least monthly
The <<Staff Title>> reviews the updated Goods and Services Vendors Package prior to sending it to consumers or counselors.

Establish Goods/Services Vendor in Payroll System

Policy:

Prior to paying a Goods & Services vendor, the F/EA must receive a completed Goods & Services Vendor Package. The F/EA utilizes this information to establish the vendor as such in the F/EA's payroll system. This procedure ensures that payments to the vendor go where intended, but also that the F/EA has required information to send tax returns to the vendors at year-end. Form W-9 is required for all Goods and Services vendors prior to payment is issued.

F/EA will process vendor payments on a bi-weekly basis completed, valid payment request forms (PRFs) are received.

The payment request forms are distributed to all consumers when they join the program, in the Goods & Services Vendor Enrollment Package. Consumers or vendors can request PRF’s by calling F/EA’s toll-free customer service line or the form can be accessed online.

The PRF allows the participant to inform F/EA of what vendor is to be paid, in what amount and from what line in the participant’s budget to use allocated funds.

Procedure:

<<Insert process to quality check vendor package.>>
Ensure that the vendor has completed Form W-9, regardless of the vendor's status as a corporation, non-profit, sole proprietor, or Limited Liability Corporation.
<<Enter vendor data, including vendor TIN, name and address into payroll system.>>
<<As applicable, associate vendor with consumers who will pay vendor.>>
<<If vendor has submitted direct deposit paperwork, establish vendor for direct deposit.>>
<<Store vendor paperwork in participant file for a minimum of 7 years per File Retention Policy.>>

Internal Controls:

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

The methods of internal control utilized by F/EA to collect and process Goods & Services Vendor Packages are:

1. Vendor Information is not entered into the payroll system until the Goods & Services Vendor Package has satisfactorily passed a quality check.

This ensures that vendors with incomplete packages are not paid.

2. All packages are date stamped immediately upon receipt.

Verification of date stamp occurs by a separate staff member when packages are entered in payroll system and Goods & Services Vendor Packages

3. During quality check, each form is separately initialed and dated as it passes a satisfactory quality check.

4. A control sheet is used to Quality Check each packet.

During quality check, this control sheet is completed by the reviewer
The control sheet is reviewed secondarily during entry of vendor information in to the payroll system