Comptroller's Office
 Policies and Procedures Manual

Effective: 03/10/2008
Revised: 08/13/2013 

CMP 420-05: Direct Deposits for Employee and Student Payments


Purpose

 Define direct deposit usage for employee and student payments


Source

 University policy


Applicability


  This policy covers all employee and student  (payee) payments made from the Advantage Financial System (Advantage)


Policy

Employees and students who receive paychecks and/or student refunds via direct deposit through PeopleSoft will automatically receive payments through the Advantage Financial System via direct deposit (EFT payment document).  Direct deposit information must be setup through the payroll system via Payroll's Direct Deposit Form or online through LOUIE Self Service. Direct deposit reimbursements can only be made to one bank account in Advantage.  The bank account used will be the primary or "balance" account setup in LOUIE.  In addition, bank account information cannot be setup separately in Advantage, so employees and students must be enrolled for direct deposit in the LOUIE to receive direct deposit payments in Advantage. 

Employees and students may opt-out of direct deposit reimbursements through Advantage by submitting a "Direct Deposit Election" form (see procedures section below).

If a direct deposit reimbursement is rejected by the bank due to incorrect banking information or a closed account, eligibility for direct deposit reimbursements will be removed in Advantage and the payee will instead receive check reimbursements until such time as new or corrected bank account information is entered in LOUIE and a "Direct Deposit Election" form is submitted with the reinstate direct deposit check box checked.   

If a travel payment is issued in error, departments must contact Financial Accounting Services (523-6064) within 5 days of the payment if they wish to pull back the payment from the payee's  bank account (similar to a void check).  This can only occur if there are funds available in the payee's bank account.  If the funds cannot be retrieved, it is the department's responsibility to collect the funds from the employee/student and deposit the money back to the department's account.


Procedure


Employee and Student Payment Direct Deposit Opt-Out Procedure:

To Opt-Out of direct deposit reimbursements through the Advantage Financial System, complete the "Direct Deposit Election" form and mail or fax it to Purchasing Services:

U.S. Mail                                     Campus Mail             FAX

Northern Arizona University               Box 4124               928-523-1343
Purchasing Services
PO Box 4124
Flagstaff, AZ  86011-4124

After opting out of direct deposit reimbursements, employees and students may elect to receive direct deposits again by submitting the Direct Deposit Election form with the reinstate checkbox checked.

Incorrect or Closed Bank Accounts:

The Comptroller's Office will be notified by the bank of any EFT direct deposit rejects. Depending on the type of payment (travel or expense reimbursement), either the Travel Coordinator or Accounts Payable will notify the Advantage processor, the payee, and Payroll department via e-mail that the direct deposit payment rejected and the reason thereof.  The Comptroller's Office will cancel the payee's EFT payment and request that a check be issued.  At the same time, the payee's eligibility for EFT payments through Advantage will be removed by the Purchasing Department until such time as the payee corrects their bank information in LOUIE and  reinstates their eligibility by submitting a "Direct Deposit Election" form with the reinstate direct deposit check box checked.    

EFT E-Mail Notification and Timing:

As part of the Advantage nightly batch process, employees and students will be notified via e-mail that an EFT payment request has been generated in their name.  To allow for the verification of the EFT file to the bank, payments will be made with an effective date of two business days in the future.  As an example of the timing for an EFT payment, a travel payment request (TP doc) submitted on a Tuesday will generate an EFT payment request and e-mail notification on Tuesday night.  The EFT file will be processed by the bank on Wednesday and the payment will post to the payee's bank account on Thursday.  Payees will not receive a paper remittance advice detailing their direct deposit payment. However, if a payee has questions regarding the details of their payment, they can contact the appropriate Advantage processor in their department with the EFT reference information provided in their e-mail notification. 

 


Cross-Reference


CMP 420-0:  Faculty and Staff Reimbursements
CMP 401-03: Prohibited Transactions
CMP 430-19: Participant Expenses (Sponsored Projects Use Only)
CMP 500: Departmental Travel Responsibilities

 


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