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Administrative Procedure 8.702 Administrative Procedure 8.702



Title

Administrative Procedure AP 8.702, Establishment of Electronic Funds Transfer and Receipt of Funds

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.702, Establishment of Electronic Funds Transfer and Receipt of Funds
Effective Date:  March 2015
Prior Dates Amended:  April 2006    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 8.201, Cash Management And Short-Term Investment of Operating Funds
Review Date:  August 2018

I. Purpose

To provide uniform procedures to establish and process electronic funds transfer agreements with federal and state agencies and other businesses that wish to pay the university by electronic funds transfer and to record receipts in the University’s financial system.

II. Definitions

A.  Electronic Funds Transfer (EFT) – Transfer of funds by electronic means directly to the University of Hawai‘i General Account (UHGA).  The remitter initiates the transfer.  The amount is based on a drawdown request, letter of credit, previously established agreement, or an invoice.

B.  EFT Agreement Form - A form, usually provided by the remitter, requesting payee and financial institution information.

C.  University of Hawai‘i General Account (UHGA) - The University checking account where all revenues, regardless of the source of funds, are deposited unless otherwise authorized by the Vice President for Budget and Finance and Chief Financial Officer.

III. Administrative Procedure

A.  Applicability

This administrative procedure applies to all University departmental personnel responsible for receipting funds.

B.  Responsibilities

    1.  University Departments – UH departments are responsible for the timely billing of accounts receivable, drawdowns and receipt of payments.  Upon receipt of funds, departments are responsible for the timely recording to the University’s financial system.

    2.  Treasury Office - The Treasury Office reviews the EFT agreement for accuracy of UHGA account information and coordinates the establishing of the agreement between the university and the remitter.

C.  General Procedures

    1.  In order to receive information such as invoice number, contract or grant number, amount break down and remitter information, the EFT ACH format should be in Corporate Trade Exchange (CTX) format.

    2.  Departments should notify the Treasury Office via email of expected electronic funds transfers to ensure that the transfer can be identified and processed without delay.

    3.  Treasury will fax a copy of the remittance advice to the campus/college/ department business office on the next business day after funds are received.  The business office staff then prepares an advance deposit (AD) or cash control (CTRL) as appropriate.  Refer to A8.701, 9, for detailed instructions on receipting and depositing University funds.

    4.  When the recipient of an electronic funds transfer cannot be identified, an email with pertinent details is posted to the Fiscal Officer Listserv.  If there is no response within ten (10) banking days, the funds may be returned to the remitter.

    5.  In cases where the EFT is to pay for a student’s educational expenses and a University invoice was not initiated, the amount shall not be more than the amount actually owed to the University.  This is especially important when the remittance originates from a foreign country.  Any excess shall be returned to the remitter.

    6.  The University shall not accept EFT or transact business with certain countries.  The Office of Foreign Assets Control (OFAC), under the U.S. Department of Treasury, publishes a list of foreign countries, government entities, companies, and individuals that are prohibited from doing business with the U.S.

D.  Procedures for Completing Electronic Funds Transfer Form

    1.  University personnel shall complete the information including department name, address, contact person name and phone number on the EFT agreement form provided by the remitter.  If the remitter does not provide an agreement form, use the form on Attachment 1.

    2.  Forward the completed form to the Treasury Office.

    3.  If requested, Treasury will return the signed agreement to the department for transmittal to the remitter.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

    
Treasury Office, 956-8527, or wendall@hawaii.edu
Website:  http://www.fmo.hawaii.edu/cash_handling/index.html#tab7

VI. References

    A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
    B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

Attachment 1:  UH Electronic Funds Transfer Form

Approved

    Signed    
    Kalbert Young    
    March 11, 2015    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

Electronic Funds Transfer

Attachments