What You Need to Know About CDS
Vendors sometimes contact VCU about payments that don’t match their invoices and one reason this may happen is because of a partial or full payment interception. Payment interceptions usually happen as a result of the Commonwealth Debt Set-Off (CDS) Program, a legally mandated program that recovers outstanding debts that vendors owe to state (CDS) and federal Treasury Offset Program (TOP) government agencies.
When part of a vendor’s payment is withheld through either CDS or TOP, departments may also be confused and concerned. Vendors often call looking for explanations or to dispute the withheld amount, and departments may feel helpless if vendors suspend services or refuse to deliver ordered goods.
What’s Important for You to Know
- VCU processes invoices for full payment
- The Virginia Department of Taxation (TAX) and Department of Accounts (DOA) are authorized by several different laws to intercept funds to cover outstanding debts owed by the vendor.
- Once funds are withheld, the invoice is deemed paid in full by VCU.
- VCU does not have details about the debt and cannot resolve these disputes.
- VCU should not attempt (make a second payment) to make the vendor whole or pay the disputed balance.
- Vendors who suspend services or refuse to send goods, after a payment interception, are actually violating Virginia law.
- Vendors will receive official notices from TAX, DOA, and VCU explaining the offset and how to contest it.
Your Role When Vendors Call
You are not expected to resolve disputes. Instead:
- Be informed about the CDS and TOP so you can understand why vendors might call.
- Direct vendors with questions or concerns to Procurement or the appropriate state agencies:
- Virginia Department of Accounts: 804-367-8037
- Virginia Department of Taxation: 804-367-8380
Why This Matters
Knowing about CDS empowers you to stay informed and confidently guide vendors to the right resources, without getting involved in matters outside of VCU’s control. This keeps communication clear, consistent, and efficient.
Categories Controller's Office, Procurement Services