Electronic Positive Pay
The following procedures are for the purpose of insuring effective processing and proper internal controls for the electronic positive pay system. These procedures pertain to the following departments: Accounts Payable, Payroll, and Computer Operations.
- Every night (M-F), Operations will run job FRSD2012 that will produce a file to be transmitted (via FTP) to Bank of America (BOA). This file contains the required data for electronic positive pay regarding the checks to be issued the next day.
- On nights when both an accounts payable update and a final payroll are run, job FRSD2012 will combine the data from both jobs into one data file to be transmitted to BOA.
- The file will be transmitted by Operations to BOA no later than 10:00 p.m. The deadline for BOA to receive the file is 10:00 p.m.
- In the event that Operations is unable to FTP the file by 10:00 p.m., they will transmit the file as soon as possible thereafter. If it cannot be transmitted before 9:00 a.m., Operations will notify Accounts Payable so that they can hold checks (if deemed necessary).
- A report FS2293—Summary Report of AP and Payroll Combined File Transmitted to the Bank--will be generated with control totals of the number of checks and the amount of the checks contained in the data file, separated by AP and Payroll Checks, and also giving the overall total.
- Report FS2293 and the standard AP daily report VBC030 will be distributed by the Controller Office to Procurement Management by 8:30 a.m. each morning.
- Staff in Procurement Management will verify the AP control totals with the AP reports, verify the payroll check count and total from information provided by the Payroll Office (see below), and then fax the control totals to BOA no later than 9:00 a.m. If a control fax is not received by BOA by 9:00 a.m., the data file will, nevertheless, be processed.
- When final payrolls are run, the Payroll Office will need to provide Procurement Management with the control totals (# of checks and amount) from EBC332 no later than 8:30 a.m.
- Manual checks must be entered into the positive pay system no later than 10:00 a.m. on the day the checks are to be distributed. These checks should not be presented for payment to a BOA teller window prior to noon. Manual checks issued after 10:00 a.m. should not be presented to a BOA teller window prior to noon the next day.
- Exception items will be available for review via BOA Direct by 10:00 a.m. each day. Persons responsible for pay/return decisions will log onto the system and make the pay/return decisions no later than noon. Persons responsible for release decisions will log onto the system and release or authorize the pay/return decisions no later than 2:00 p.m.
- Accounts payable checks $50,000 or greater and payroll checks $15,000 or greater will automatically come up as exception items as an extra control measure and will need to have pay/return and release decisions made. This means that even if it is a University holiday, a pay/return and release decision must be made.
- All decisions must be made via BOA Direct no later than 4:00 p.m. If no pay/return and release decision is made, the default is to return (or reject) the items.
- In addition, accounts payable checks and payroll checks over 3 years old will automatically come up as exceptions items. These items should be returned (not paid) because checks this old have been written off of our books and turned over to the State as unclaimed property.
- Teresa Johnston, in Financial Services, serves as the administrator of the BOA Direct system. She will enter into the system the authorizations as indicated below.
- The list below outlines persons authorized to utilize BOA Direct to enter positive pay pay/return or release decisions. Duties are separated so that one person in AP and/or Payroll will make the pay/return decisions and enter issues or voids, and a different person will authorize the release of that decision, issue or void.
- Every effort should be made to make sure that persons with like authority, are not both absent from the office on the same day. If this should occur, Jody Nelsen will serve as the backup to make either the pay/return or the release decision as needed.
Accounts Payable - Old and New Controlled Disbursement Account
Gina Niemann, Christy Baxter and Helen van der Woude may:
- Enter pay/return decisions electronically
- Enter pay/return decisions manually (facsimile) - contingency only
- Enter instructions to add/cancel issues
Pete Bond or Mary Ann Routzahn may:
- Release pay/return decisions electronically
- Release pay/return decisions manually (facsimile) - contingency only
- Release instructions to add/cancel issues
Payroll Office - Payroll Account
Carole Abbott, Sandra Zemcik or Valerie Lariscy:
- Enter pay/return decisions electronically
- Enter pay/return decisions manually (facsimile) - contingency only
- Enter instructions to add/cancel issues
David Maldonado, Sandra Goertzen or Diane Graham may:
- Release pay/return decisions electronically
- Release pay/return decisions manually (facsimile) - contingency only
- Release instructions to add/cancel issues
Backup - All Accounts
Jody Nelsen may:
- Enter pay/return decisions electronically
- Enter pay/return decisions manually (facsimile) - contingency only
- Enter instructions to add/cancel issues
- Release pay/return decisions electronically
- Release pay/return decisions manually (facsimile) - contingency only
- Release instructions to add/cancel issues
Teller Positive Pay
- First contact for teller positive pay approval: Gina Niemann
- Second contact for teller positive pay approval: Christy Baxter
Check Stock
Check stock is purchased from Moore Wallace Company. It is an open stock item and is delivered as blank stock. It contains the following security features:
- Two color document: blue/burgundy
- The words "VOID" appear when the check is copied on a copier
- The back of the check contains a water mark that is not able to be copied and is only visible when holding the check at a slant
Check stock is stored in the Procurement Office and Payroll Office.
Check Printing Software
Checks are printed using Create-A-Check software. The software is loaded on the following five PCs:
- Christy Baxter (Administrator)
- Gina Niemann (Accounts Payable)
- Helen Van der Woude (Accounts Payable)
- David Maldonado (Payroll)
- Diane Graham (Payroll)
Only these three individuals can print AP or Payroll checks. Access is password protected. A password is required for the initial entry into the software, and then again before the checks can be printed. The Create-A-Check software is stored in a locked vault in the Procurement Office. Only the Administrator can change users or change features on the check. Check printing software includes the digital signature of the authorized signer of the check.
The check printing software prints the MICR information for bank routing on the check using a special MICR ink cartridge. Checks are sequentially numbered based on the next available number which is input by the operations person running the daily check extract job. In the upper right hand corner of the check the initials of the user printing the checks appears along with the date the checks are printed.
Checks are printed daily as follows:
- The check extract job is scheduled and run each evening for accounts payable and before each payroll by IT
- One of the staff listed above logs into the Create-A-Check software and access the program with their password
- The file is retrieved and loaded into the Create-A-Check program
- The print job is processed (requiring a second input of the users password) and printed on check stock.
- The check copies are printed on plain 8 ˝ by 11 green stock.
- The person processing the checks exits the Create-A-Check program
Check Handling
Accounts Payable and Payroll receives a daily check log that itemizes the checks processed the night before. A check range and count is determined for reconciliation after checks are printed and prepared for mailing.
Checks are printed as indicated above. AP printed checks are given to the AP clerk to be matched with vouchers. Payroll prints screen that shows number of checks and dollar amount and the monthly or semi monthly payroll person verifies the count and dollar amount to balances from recap time sheets by earning codes and the payroll trial.
AP and Payroll checks pressured sealed. AP check copies are stapled and filed with the voucher packet. Payroll checks are picked up by Bursar's Office for distribution on pay date. Bursar staff verify number of checks received and prepare for disbursement to the employees. Checks are stored in the vault until the date to be released. Each payroll check is signed for by the individual (id checked) or by a approved Departmental representative.
When AP checks are ready to mail, they are given to a third Procurement staff member who counts the checks. This number is compared with the original count to make sure all checks are accounted for.
Any AP checks for pick-up or special handling are noted and included in the count. Checks that are picked-up are signed for before they are released. The rest of the checks are put in the US or campus mail.
Hand Checks
Hand checks can be approved and prepared by any of the AP individuals who have access to the Create-A-Check software (listed above).
Hand checks are logged into a manual log and given the next sequential check number. Hand check sequence began at number 122000. The log includes the payee name, dollar amount of the check, and initials of the person preparing the check.
Last Updated: September 16, 2008
