STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2009-04
February 19, 2009
TO THE HEADS OF ALL AGENCIES
||Chief Administrative Officers, Fiscal Officers, and Business
||Change in ACH Payment Notification
- Sections 3-112 "Powers and duties" and 3-117 "Claims against
the state" of the Connecticut General Statutes prescribe that upon the
settlement of any claim against the state, under procedures adopted by the
Comptroller, the Comptroller will draw an order on the Treasurer for its
- To notify agencies of remittance advice changes for vendors receiving
ACH (EFT) payments.
- A. Objective:
In an effort to improve efficiencies, reduce the cost to the state and
still provide the necessary remittance information to vendors, the Office of
the State Comptroller is implementing changes to eliminate the printing and
mailing of remittance advices for vendors receiving payments electronically
via the Automated Clearing House (ACH). Various methods have already been
piloted with a small number of vendors. In order to effect these changes,
the default payment handling code was changed to "RA" for the three vendors
|JP Morgan Chase
|Eastern Bag & Paper
|Grainger Industrial Supply
- This practice has enabled the regular process to continue for all
remaining ACH vendors.
- Additional vendors may be selected in the very near future. Therefore,
when agencies create vouchers for any ACH vendor, the handling code should
be left as defaulted. If changes are thought to be required, please contact
the OSC Accounts Payable Division as directed below.
- B. Process:
Our goal is to obtain 100% participation from our vendors and to stop all
printing and mailing of remittance forms for electronic payments by the next
fiscal year. Letters will be sent to vendors who are currently receiving
electronic payments via ACH, requesting them to provide an email address that
will be used to notify them electronically of the payments they will receive.
The electronic remittance will be issued to vendors on the day the payments are
processed, informing them of payments that will be in their banks accounts on
the subsequent business day. The electronic remittance advice will include an
Excel spreadsheet for each payment issued. The spreadsheet will contain all
information that presently appears on the hard copy ACH remittance form.
- C. Post Implementation:
Please note that the default payment handling code will be changed to "RA"
only for SOME - and not all - vendors. Please do not change the defaulted
payment handling code for these vendors on your vouchers. This measure is simply
an interim step while OSC tests and pilots various options. Once every vendor
has received all of their remittance information electronically, the default
payment handling code will be reset to "RE". ACH payments with a handling code
of "RA" are not required to be reported on the "OSC Return to Agency (RA) Log".
- Payment Handling Code for some vendors receiving ACH payments will be
changed to "RA" while testing various options.
- ACH remittances will no longer be printed and mailed by next fiscal year
- Do NOT change the defaulted payment handling code without prior
- Do NOT list ACH payments with the RA code on the RA log sent in to OSC
APD Audit section.
- Notification letters will be sent to vendors in the next few weeks.
- Questions should be addressed to the Accounts Payable Division at (860)
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