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Administrative Procedure 8.702 Administrative Procedure 8.702



Title

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:  May 2019
Prior Dates Amended:  April 2006, March 2015    
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:  May 2021

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.

II. Definitions

A.    Electronic Funds Transfer (EFT) – Transfer of funds by electronic means via Automated Clearing House (ACH) or wire transfer directly to the University’s bank account. .

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’s checking account where all University funds, regardless of the source of funds, are deposited unless otherwise authorized by the Vice President for Budget and Finance/Chief Financial Officer.

III. Administrative Procedure

A.    Applicability

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

B.    Restrictions

        1.    The University does not allow any debits to University account to be initiated by external entities,
              unless specifically authorized by the Treasury Office.
        2.    In order to receive information such as invoice number, contract or grant number, amount
              breakdown and remitter information, the ACH format should be Corporate Trade Exchange (CTX)
              format.
        3.    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.

C.    Responsibilities

        1.    Treasury Office
              a.    Reviews EFT agreement forms for accuracy of UHGA information; signs  EFT forms or obtains
                      bank confirmation, if required by remitter
              b.    Routes EFT notices to campuses/departments for recording in the University’s financial system
              c.    Reconciles EFT transactions recorded in bank with amounts recorded in University’s financial
                      system
              d.    Routes unidentified or unclaimed EFT payments to Fiscal Administrator Listserv to identify
                      proper department; returns unclaimed payments
        2.    Campuses and Departments
              a.    Inform the Treasury Office when new EFT agreements are established
              b.    Notify the Treasury Office via email of expected EFTs, including remitter, estimated date and
                      amount to ensure the EFT notification can be processed without delay
              c.    Record EFT payments in the University’s financial system
        3.    Fiscal Administrator
              a.    Review email notifications sent by the  Treasury Office to the Fiscal Administrator LISTSERV for
                      unclaimed payments and contact the Treasury Office to claim in timeframe requested

D.    General Procedures

        1.    Procedures for completing EFT Transfer Form

              a.    Remitter provided EFT Form
                      i.    Any language indicating that the remitter may debit the University’s account should be
                            stricken from the agreement.
                      ii.  Request ACH format as CTX.
                      iii.  Contact the Treasury Office for assistance to review or sign the remitter provided EFT forms.
                      iv.  Provide a copy of the completed form to the Treasury Office

              b.    University EFT Form
                      i.    A partially completed EFT form is available at
                            http://www.fmo.hawaii.edu/cash_handling/docs/EFT_Form_UH.pdf
                      ii.  University personnel will complete the information, including department name, address,
                            and contact person and phone number on the UH EFT form.
                      iii.  If requested, the Treasury Office will sign the form or provide bank confirmation of bank
                            information.
                      iV.  Provide a copy of the completed form to the Treasury Office.

        2.    Notification of EFT received
              a.    The Treasury Office will fax or email a copy of the remittance advice to the
                      campus/department.
                      i.    For ACH transactions, the remittance notification is sent on the next business day after the
                            transfer.
                      ii.  For wire transfers, the remittance notification is sent when the notification is received by the
                            bank, which is generally on the day it is posted to the University’s account.
                      iii.  The Treasury Office will provide the reference number to be used for recording the EFT in
                            the University’s financial system.
                      iv.  If the remittance notification received is not for the campus/department, it should be
                            promptly returned to the Treasury Office.

        3.    Recording of EFT transactions
              a.  Refer to Section III.D.3. of Administrative Procedure AP 8.701, Recording and Depositing Funds
                    Received by the University.

        4.    Return of EFT
              a.    Return payment identified by campus/department
                      i.    Campuses/departments should notify the Treasury Office on any EFT that should be
                            returned and provide an explanation on the reason for the return (i.e. duplicate payment,
                            student not enrolled for the class, etc.)
              b.    Other unidentified payments
                      i.    The Treasury Office will send an email to the Fiscal Administrator Listserv to request
                            assistance with unidentified EFTs.
                      ii.  Fiscal Administrators shall review the notifications and claim any EFT that is for their
                            department.
                      iii.  If no response is received within ten (10) working days, the Treasury Office may return the
                            EFT to the remitter.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information


VI. References

Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
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    
    June 12, 2019    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

Electronic Funds Transfer

Attachments