MEMORANDUM NO. 98-7

March 23, 1998

TO THE HEADS OF ALL STATE AGENCIES

The Comptroller's Accounts Payable Division has developed a pilot program to pay vendors electronically. All payments to two towns, Rocky Hill and Vernon will be made electronically beginning on April 13, 1998. Several other vendors and non-profit organizations will be added shortly thereafter. Notification will be provided prior to implementing these vendors.

This EFT vendor pilot program is not to be confused with existing EFT payments (i.e. Tax Exempt Bond Fund Proceeds 80,000 batch series, Comptroller approved EFT "no check required" payments to fund agency checking accounts and payments to federal agencies).

Procedures necessary to process the EFT vendor payments to the towns of Rocky Hill and Vernon for both paperless processing and paper processing agencies are as follows:

1. Paperless Processing Agencies
   Effective Monday, April 13, 1998:
   1. All payments made to pilot vendors must be made electronically. Only one FEIN/SSN suffix is allowed on the vendor file.
   2. A separate expenditure batch is required.
   3. Audit release must be done with Special Code 70. (In the event a payment is to be offset, the agency will be notified to audit release with Special Code 75. Procedures similar to audit releasing with Special Code 15 are followed. Be sure to verify the FEIN/SSN and name on CAS Vendor File. After the offset occurs, remaining funds, if any, will be electronically transferred to the vendor's bank account.)
2. Paper Processing Agencies

   Effective Monday April 6, 1998:

   1. All payments made to pilot vendors must be made electronically. Only one FEIN/SSN suffix is allowed on the vendor file.
   2. A separate expenditure batch is required.
   3. The words "EFT-ACH" must be written in red letters on the batch header (CO-19). The Invoice Voucher for Goods and/or Services (form CO-17) must contain the exact vendor FEIN/SSN that appears on the Comptroller's Vendor File. The suffix must appear as "01". The words "EFT-ACH" must appear in red letters on the CO-17 form.

   Questions:

   Questions may be directed to the Office of the State Comptroller, Accounts Payable Division as follows:

   EFT Program Administration: (860) 702-3591

   Vendor File FEIN/SSN: (860) 702-3405

NANCY WYMAN
STATE COMPTROLLER

NW:MKA:ss

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