Section 8 - Check Requests and Payables

Section 8.7 - Electronic Disbursements

Date: 2/20/06 — Approved: Finance Board

ELECTRONIC FUNDS TRANSFER (EFT)

An electronic funds transfer (EFT) is the transmission of an electronic message to a financial institution instructing it to make an electronic entry reflecting the transfer of ownership of funds from one depositor to another. EFT is a very reliable way of moving funds between financial institutions. EFTs are routinely used by the AS accounting office for moving funds between AS bank accounts.

The AS Council formulates basic AS policy on the handling of AS funds and delegates the execution of these policies to the AS Finance Board, who act under the Council's general supervision. The AS Controller has been specifically delegated to assist the Finance Board in matters concerning funds handling. Periodically, the AS Controller designates staff authorized to initiate and approve EFTs on behalf of the AS

To use EFT, the payment procedure must be agreed upon by the paying and receiving parties before the transfer. EFTs are administered by the Associated Students (AS) accounting department. The AS seeks to use EFT when a payment request meets one or more of the following conditions:

ELECTRONIC FUNDS TRANSFER (EFT) OPERATIONS

The AS Controller is responsible for the daily management of AS bank balances and general oversight of EFT activity.

Operations

EFTs between AS bank accounts — The AS Controller or delegate is responsible for the security and administration of EFTs between AS bank accounts.

EFTs to non-AS bank accounts — EFT requests are made to the AS Controller who is responsible for ensuring proper authorization of each transfer requested. Authorized wire transfer requests are processed by the accounting department when received or on the requested transfer date subject to the availability of funds and/or financial institution wire transfer deadlines.

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