ACH Payments from Federal Agencies
John P. Kruczek, University Controller
The Federal government is changing the way it pays vendors and grantees. The purpose of this memorandum is to provide for the establishment of coordinated procedures for receipt of payments from outside third-parties through the Automated Clearing House (ACH) network. In accordance with the Federal Debt Collection Act of 1996, all Federal payment recipients will receive their payments via Electronic Funds Transfer, through the ACH network. Instead of receiving paper checks, payments will be electronically deposited directly into our local bank account or the State Treasury account. Several University offices have already received the ACH Vendor Enrollment Form, and some payments have already been received in this manner.
The following policies and procedures were developed by a ACH Coordinating Team who represent several areas within the University that are in contact with federal agency payment processors. Although this process has been developed to address payments from federal agencies, we anticipate other organizations will desire to use this mode of payment as well. These procedures are effective immediately. ACH Enrollment Forms
ACH Vendor/Miscellaneous Payment Enrollment forms received from any agency should be routed to the attention of the ACH Coordinator in S113 Criser Hall along with the originating department name, contact person and telephone number. UF has developed an ACH Enrollment form that standardizes various elements of the required information (i.e., bank information, routing numbers, contact persons, etc.). The ACH Coordinator in Criser Hall will log the UF ACH Enrollment form in and route it to the appropriate areas of the University (Contracts and Grants, IFAS, Engineering, Health Center, Local Funds Accounting) for completion of the form. Once completed, the form will be returned to the ACH Coordinator in Criser who will complete the log and send the form to the requesting agency. The originating department will also be notified when the form is sent to the agency. Federal Employer Identification Number (FEIN)
The University of Florida has been instructed by the State of Florida Comptroller’s office to discontinue using the State Comptroller’s FEIN (596001874) for receipt of moneys from other agencies per State Comptroller’s Memo No. 9 dated May 8, 1997. As part of our efforts to coordinate ACH payments, we are informing all agencies to use only the University of Florida’s FEIN (596002052) which will be part of the standardized information on the UF ACH Enrollment form. The University Controller is contacting all agencies already transmitting payments through the ACH network and informing them of this change. No action on the part of any department is required at this time. Identification of Receipt/Payment
The coordinating team has established certain payment identification criteria to be used by the agency remitting the payment. This identification criteria will be requested with the enrollment form when signing up for the ACH payment method. The Local Funds Accounting area will use this criteria in establishing the identity of the payee. All departments are encouraged to observe the following procedures for receipting and recording of these payments:
- At the time of vouching/billing the agency and prior to receipt of the moneys, prepare a Notice of Expected Electronic Transmission (form attached – copies can be made) for all moneys expected to be remitted electronically to UF. On this document the department will provide the following information: department name, department contact person and telephone number, voucher/invoice number, date requested and expected amount, federal agency sending the money, and the expected arrival date.
- The Notice of Expected Electronic Transmission document should be forwarded to the Local Funds Accounting area at University Financial Services (S113 Criser Hall) which will monitor the receipt of moneys into the local bank account or directly into the State Treasury bank account.
- When the moneys are received, the Local Funds Accounting area will use the Notice of Expected Electronic Transmission and the payment identification criteria attached to the ACH remittance transmission to contact the appropriate department. The department will then prepare a deposit transmittal document and forward it to the Local Funds Accounting area where it will be processed.
Please share this information with the appropriate staff in your area who receive and deposit payments to the University of Florida. If you have any questions or need additional information, please contact Michael McKee (email: firstname.lastname@example.org) at 392-0779.
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