Electronic Funds Transfer (EFT) Policy

Objective

The purpose of this policy is to provide guidelines and establish procedures for processing domestic and international electronic funds transfer (EFT) requests.

Applicability

This policy applies to all University departments, individuals and organizations and all University domestic and international electronic funds transfer (EFT) transactions.

Definitions

Automated Clearing House: An electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers typically include direct deposit, payroll, and pension. 

Banking Information: Data from the payee indicating their bank name, bank account number, ABA and/or routing numbers and any additional information required for foreign banks, necessary to transmit funds. 

Electronic Funds Transfer (EFT): The electronic exchange (transfer of money from one account to another), either within a single financial institution or across multiple institutions, through computer-based systems. Wire transfers and ACH payments are examples of EFTs.

Wire Transfer: An order transmitted electronically from one bank to another to pay or credit money to a payee as designated by payer.

Payment Card: A payment card can be a credit card (Visa, AMEX, MasterCard, Discover, etc.) or a debit card.

Roles and Responsibilities

The Controller’s Office is responsible for initiating and releasing EFTs on behalf of the University for the movement of funds from University bank accounts. Two separate individuals are required to initiate and release the EFT.  The Controller's Office also has the responsibility to confirm EFT instructions with specific departments and individuals if there is any question as to the validity of the EFT request.

The Business Office is responsible for the administrative process for all purchase requisitions and accounts payable functions.

Individual departments are responsible for obtaining and submitting the proper support and approvals, including the completed and approved Wire Transfer Request Form, to the Business Office.

The Bursar's Office is responsible for the administrative process for all student account refunds.

Policy

Utilization

Domestic payments are typically processed via paper check. A domestic wire transfer of funds or ACH will only be utilized in payment of an obligation of the University when the situation requires more immediate funding or circumstances where a paper check is not an acceptable form of payment.

A wire transfer is the typical form of payment of an international obligation.

Compliance with related University Policies

All other University policies governing purchasing and the submission of documents for payment to the Business Office must be followed. All supporting documentation (i.e. invoice, purchase order, or contract), including banking information supplied directly from the vendor, must be attached to the Wire Transfer Request Form, must be properly approved and cannot be circumvented. Please refer to the Procurement & Payment Authorization Policy for examples of proper supporting documentation and approval guidelines.

All other University policies governing student refunds must be followed. The Wire Transfer Request Form must be properly approved by the Bursar’s Office and sent to the Controller’s Office, and cannot be circumvented. Banking information must be supplied directly from the student to the Bursar’s Office and the information must then be included with the Wire Transfer Request Form. Please refer to the Bursar’s Office website for further information regarding refunds.

The Wire Transfer Request Form should be completed and signed by the Requestor and Approver in accordance with Section 3.0 of the Procurement Approval Authority Policy.  If the wire amount requested is for $15,000 or greater, then the Wire Transfer Request Form must have additional approvals in accordance with Section 5.0 of the Procurement Approval Authority Policy.

Subsequent Review

 Completed nonrecurring EFTs greater than $15,000 are reviewed and signed by appropriate and authorized individual(s) on a monthly basis.

Cancellations and Modifications

Once a wire transfer is initiated, the Controller’s Office cannot cancel or modify the transaction.

Waivers and Exceptions

Any waiver or exception to this policy must be documented through the Controller’s Office and is required to be reviewed and approved by two of the following individuals: President, Senior Vice President for Finance and Administration/Treasurer, and/or Senior Vice President of Academic Affairs and Provost..

Contact Information

Departments should contact the University Controller’s Office for further guidance on EFT payments.

Violation of Policy

Violations of this Policy may lead to appropriate disciplinary action, which may include temporary or permanent restrictions on access to certain information up to dismissal from the University.

Revision History