03-a-015 - Changes to STARS Electronic Deposit Processing and Direct Deposit Month (April 4, 2003)
|INFORMATIONAL CIRCULAR NO. 03-A-015|
|DATE:||April 4, 2003|
|SUBJECT:||Changes to STARS Electronic Deposit Processing and Direct Deposit Month|
|EFFECTIVE DATE:||April 4, 2003|
|A & R CONTACT:||Nickie Roberts||(785) 296-7917||(firstname.lastname@example.org)|
|Tim Hund||(785) 368-6347||(email@example.com)|
|SUMMARY:||Elimination of ten-day waiting period when using STARS electronic deposit. Vendors, and especially employees, encouraged to use electronic deposit.|
In an effort to streamline enrollment for STARS electronic deposit and to encourage participation in the electronic deposit program for STARS vendor payments, the 10-day pre-notification waiting period has been eliminated effective with vendor banking information entered into STARS on or after April 4, 2003. Vendors will no longer have to wait 10 business days from the time Accounts and Reports transmits the pre-notification to the bank before being able to use the STARS electronic deposit feature.
Agencies should encourage increased participation of vendors, and especially employees who receive reimbursements from the State of Kansas for travel or other expenses, in the Electronic Deposit program. Direct Deposit and Direct Payment Month will be observed in May. The nationally observed month is designed to educate consumers about the benefits of direct deposit. Sponsored by NACHA -- the Electronic Payments Association, Direct Deposit Month is a great time for your agency to boost your STARS electronic deposit program and sign up new users. Information that may be helpful in your enrollment efforts with vendors and employees may be found at http://www.directdeposit.org/.
We believe that electronic deposit provides the following benefits to vendors and employees:
Electronic deposit is safe and confidential.
- Payments made by electronic deposit have never been lost. In fact, you are much more likely to have a problem with a check.
- Electronic deposit is more confidential. A check passes through many more hands than an electronic transfer.
- Problems with electronic deposit, which are rare, are quickly resolved. By contrast, problems with checks may take much longer to correct, sometimes up to three weeks.
Electronic deposit is convenient and saves you time.
- By using electronic deposit, you save time by not having to go to the bank to deposit checks.
- You don't have to be in town for your money to be securely deposited into your account.
- Electronic deposit gives many vendors and employees access to their payments one to four days earlier than a check. There is no waiting for mail time or for a check to clear.
Vendors not currently established in the STARS Vendor File with the necessary banking information may become ACH capable by completing Form DA-130, Authorization for Electronic Deposit of Vendor Payment. This form may be found at http://www.da.ks.gov/ar/forms/. <------- Broken link We recommend that a voided check or deposit slip accompany the DA-130 when submitting it to the Division of Accounts and Reports.
Our web site for STARS Electronic Deposit ( http://www.da.ks.gov/ar/genacct/starsed2.htm), as well as Policy and Procedure Manual filing 11,749 ( http://www.da.ks.gov/ar/ppm/ppm01001.htm) have been updated to reflect this information.