Vendors occasionally contact UVA when a payment they receive doesn’t match their invoice. A common reason is that the Commonwealth has intercepted part or all of the payment through the Commonwealth’s Debt Set-Off (CDS) Program, which is used to collect past-due obligations owed to Virginia state agencies, including UVA (designated in Workday as State-EDI payment type).
Payment interceptions can also create confusion within departments, especially if a vendor pauses services or seeks clarification about the withheld amount. This FAQ explains how the program works and what vendors should do.
What is the Set-Off Debt Collection (CDS) Program?
The CDS Program is administered by the Virginia Department of Taxation under Virginia Code § 58.1-520 et seq. It allows the Commonwealth to intercept payments issued by any state agency and apply them toward debts a vendor owes to another state agency.
This is an automatic, statewide process.
More information is available in the Commonwealth’s Setoff Program Information Guide.
Does UVA decide to intercept these funds?
No. UVA does not decide which vendor payments are intercepted, nor does it have visibility into the vendor’s debt, balance, or status. All determinations are made solely by the Commonwealth using Taxation’s statewide matching system.
Has UVA met its obligation to pay a vendor if funds are intercepted?
Yes. Under Virginia Code § 2.2-4350, a payment is considered made once the set-off process has begun. UVA satisfied its payment obligation when payment is issued to the Commonwealth; the Commonwealth then applied the funds towards the vendor’s outstanding debt.
Will the vendor receive any remaining portion of the payment?
Possibly. If the intercepted amount exceeded the debt owed, the Commonwealth may release the remaining balance to the vendor. Vendors can contact:
- Virginia Department of Taxation / 804-367-8380
- Virginia Department of Accounts / 804-367-8037
Who should the vendor contact with questions or appeals?
All questions regarding:
- the debt
- the amount intercepted
- remaining balances
- dispute or appeal options
must be directed to the Virginia Department of Taxation and/or the Department of Accounts.
UVA cannot share information about set-off actions or vendor debt status.
Does a vendor, whose funds are intercepted by CDS, still need to fulfill its contract with UVA?
Yes. Vendors are contractually obligated to perform in accordance with the terms of their agreement with UVA. Set-off actions by the Commonwealth do not change or limit those obligations.
Can UVA resend the payment or issue payment another way?
No. Once the Commonwealth has intercepted funds, UVA no longer has control over the payment and cannot reissue or redirect it.
Can UVA answer questions about how or why the Commonwealth intercepted the payment?
No. UVA does not participate in evaluating vendor debt, determining intercept amounts, or administering the CDS Program. For information about how or why the payment was intercepted, vendors must contact:
- Virginia Department of Taxation / 804-367-8380
- Virginia Department of Accounts / 804-367-8037
- Virginia Department of Taxation / 804-367-8380
- Virginia Department of Accounts / 804-367-8037
Who can vendors contact at UVA with general questions?
Vendors may contact UVA Procurement or Accounts Payable for questions about their purchase order, invoice status, or the university’s payment process through [email protected] or (434) 924-3400.
However, inquiries about the intercepted portion of the payment must be directed to the Commonwealth agencies administering the CDS Program.