State of Connecticut Office of the State Comptroller MEMORANDUM NO. 2007-03


	STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2007-03

February 1, 2007

TO THE HEADS OF ALL STATE AGENCIES

Attention:	Chief Administrative Officers, Chief Fiscal Officers, and Business Managers
Subject:	Revised Assignment and Assumption Agreement Procedures

I. PURPOSE

The purpose of this memo is to advise all State agencies that the Office of the State Comptroller, the Department of Administrative Services, and the Office of the Attorney General have recently revised the procedures to effect an assignment and assumption agreement.

II. PROCEDURES

Assignment and assumption agreements are generally required under the following situations:

Partial assignment - A state vendor (contractor) assigns a portion of its contractual rights, duties and/or other obligations to a third party. Accounts receivable, rights to payment, or some or all of the performance obligation are assigned to a third party.
Complete contractual assignment - A state vendor (contractor) assigns all of its contractual rights to a third party. The third party is responsible for complying with all the terms and conditions set forth in the original contract between the State and the original vendor.
Mergers, acquisitions and changes in ownership - A State vendor (contractor) experiences a change in the business entity or FEIN. The vendor continues to conduct business with the State. A change in name only is not an assignment and assumption.

Vendors sometimes notify State agencies of the aforementioned situations, but often do not submit the proper legal documentation. Further research may be necessary when a vendor provides information regarding a change in name, entity type, or FEIN to determine if an assignment and assumption agreement is required.

Revised assignment and assumption procedures have been updated in the State Accounting Manual at:

osc.ct.gov/StateAcct/commitments/commitments.htm#MISCELLANEOUS

All required paperwork from the vendor(s) including changes relating to contract awards will now be reviewed and approved directly by the Comptroller's Accounts Payable Division staff.

III. QUESTIONS

Please direct questions to Beth Macha, Accounting Manager, at (860) 702-3405, or Elizabeth.Macha@po.state.ct.us.

NANCY WYMAN
STATE COMPTROLLER

NW:MKA

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