Pol-Electronic Funds Transfer (EFT)

policy Electronic Funds Transfer EFT modified Fri Jan 31 2020 11:03:18 GMT-0500 (Eastern Standard Time)

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University of Louisville

OFFICIAL
UNIVERSITY
ADMINISTRATIVE
POLICY

POLICY NAME

Electronic Funds Transfer (EFT)

EFFECTIVE DATE

June 2, 2008

POLICY APPLICABILITY

This policy applies to all University Employees (administrators, faculty and staff).

POLICY STATEMENT

General

  1. Electronic Funds Transfer, hereinafter called “EFT” are funds that are credited (receipts deposited) or debited (payments charged) electronically to any of the University’s bank accounts.  All University bank accounts are currently with National City Bank.  
  2. An EFT transfers funds directly from the sending bank to the receiving bank.  Typically, funds received are “good funds” on the date received, as compared to paper checks which may take additional days to clear and be credited to the receiving bank account.
  3. The most common EFTs are ACH (Automated Clearing House, a.k.a. direct deposits) and Wire (Fed Wire), hereinafter both are identified as EFT.

Policy

  1. Treasury Management monitors all activities on the University’s bank accounts on a daily basis.
  2. Treasury Management works in conjunction with University Accounting (hereinafter referred to as “UA”) to insure all cash receipts and disbursements are posted to the financial system in a timely manner.  
  3. Treasury Management has sole authority for approving EFT debits (charges) to University bank accounts.  All requests from Vendors for the University to pay by EFT must be processed through Treasury Management and any EFT debit that has not been pre-approved will be rejected by the bank.    
  4. Departments are responsible for notifying the Treasury Department at (502) 852-8253 or email (preferred) TREASMGT@louisville.edu when expecting EFT payments.
  5. Departments will provide Program/SpeedType (hereinafter referred to as “SpeedType”) and Account code for posting all EFT payments and receipts on first occurrence.  If multiple SpeedTypes are involved please contact UA via email UNIVACCT@louisville.edu regarding the posting of transaction.

EFT – Domestic / International Payments

  1. Treasury Management processes requests for EFT payments specifically in the form of Wires, both international and domestic.
  2. Requests for payment of goods and services must be in accordance with all Kentucky revised statutes and University procurement policies and procedures.  Further instructions on how to submit such payment requests may be found at:  http://louisville.edu/purchasing/policies and http://louisville.edu/vpf/controller/acctops/accountspayable/disbursementguidelines04.html.
  3. Additional information and procedures for requesting Domestic / International Wire payments can be found at EFT- Domestic / International Payments.

EFT – Pre-Authorized Debits

  1. Vendors requesting payment from the University via EFT, debiting the University bank account direct, must be pre-approved by Treasury Management.  Requests are submitted to Treasury Management using the form (link to Request For EFT Debit Authorization).
  2. EFT Debit Authorization forms provided by the Vendor must be completed by both the department and Treasury Management who has sole authority for releasing bank account information.  
  3. Additional information and procedures for requesting EFT Debit approval can be found at EFT – Preauthorized Debits.

EFT – Receipts

  1. Providing bank account information to Vendors requesting to send payments by EFT to the University must first be authorized by Treasury Management.  Requests are submitted to Treasury Management using the form (link to Request Remittance to UofL Via EFT)
  2. Additional information and procedures related to receiving payments to the University by EFT can be found at EFT – Receipts.



ADMINISTRATIVE AUTHORITY

Vice President for Finance and CFO

RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION

Controller’s Office
Service Complex
Louisville, KY 40292
Phone:  502.852.7072
E-Mail: controll@louisville.edu

HISTORY

Revised Date(s): 

Reviewed Date(s):


The University Policy and Procedure Library is updated regularly. In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.