STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2009-04

February 19, 2009

TO THE HEADS OF ALL AGENCIES

I. AUTHORITY

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 payment.

II. PURPOSE

To notify agencies of remittance advice changes for vendors receiving ACH (EFT) payments.

III. PROCEDURE

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 listed below:

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".

IV. SUMMARY

• 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 (possibly sooner).
• Do NOT change the defaulted payment handling code without prior approval.
• 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.
  

V. QUESTIONS

Questions should be addressed to the Accounts Payable Division at (860) 702-3411.

NANCY WYMAN
STATE COMPTROLLER

NW: MKA

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