COMPTROLLER'S MEMORANDUM NO. 01 (1999-2000)
SUBJECT: ELECTRONIC PAYMENT AUTHORIZATION
To improve the accuracy and security of banking information provided to us for electronic payment authorization, we changed our authorization form and added a requirement for a verification letter from the financial institution.
When submitting the new authorization form, vendors and other payees will be required to submit a letter from their financial institution stating that the account information is correct and that the person signing the authorization is authorized to sign on the account specified. The letter is required to be on the bank's letterhead. Both the authorization form and letter must be originals and submitted together. No faxes will be accepted.
Previously, some agencies have copied the old authorization form without including the instructions on the backside. This should be avoided with the new authorization form. Old versions of the authorization form should be destroyed, as they will no longer be accepted.
If your agency is considering making electronic payment available to a group of vendors or payees, please contact the EFT Section before taking action in this regard. The EFT Section can assist you with payee name coordination to ensure the necessary match between the EFT authorization file and the vendor files.
To make payments electronically, the payee's vendor number is matched to the EFT authorization file. The three digit sequence number is not used. When a match is found, the first 31 characters of name from the vendor file (first line) is then matched to the name on the EFT authorization file. If the names on the two files match, the payment will be sent electronically. Otherwise, a warrant is produced. Please remember to use the ET function in FLAIR to see if a vendor is set up for EFT and how the name is listed. Since vendors who elect electronic payment will receive their payments in one bank account, be careful not to add additional listings in the vendor files. The fewer vendor name variations established in the vendor files, the more payments will be made electronically.
A copy of the new authorization form and sample bank letter have been distributed to each agencies' fiscal office. Should you have any questions or need to contact the EFT Section, the phone number is (850)410-9466 or Suncom 210-9466.