PHASE ONE OF THE STATE'S ANNUAL SUPPLIER INACTIVATION PROCESS
With completion of the SHARE Upgrade and issuance of the 2017 IRS 1099 Miscellaneous Income Statements to effected suppliers, DFA and DoIT proceeded with phase
one of the annual supplier inactivation process this evening. As you may know, the state follows an industry best practice of inactivating suppliers that have
not been used during past 24 months. This is an important control as it removes suppliers no longer engaged in state business from the active database, preventing
potential misuse. It also recognizes that physical addresses, banking information and tax data can change over time. Inactivation prevents errors related to
outdated information. Since this process was not performed in 2017, we needed to address two years of inactivity; suppliers not used since 2014 and those not
used since 2015.
We expected to inactivate 7,298 suppliers not used since December 31, 2014, however there were a number of old open documents tied to some of these supplied that
prevent the process from running to completion. As a result, 156 suppliers that should have been inactivated during the process remain open. These will be addressed
using an alternate approach. However, this does highlight the need for agencies to remain vigilant in closing requisitions, purchase orders and other procurement
related documents when activity is complete to prevent this from happening in the future and more importantly to keep SHARE in tip top shape.
The second phase of the inactivation process, which addresses suppliers last used in 2015, will be performed during the third quarter when we expect to inactivate
7,600 suppliers. A worksheet listing those suppliers addressed during the process is linked below.
NMS Automated Inactive Vendors Spreadsheet