Wire Transfers

Scope

This policy provides authoritative guidance to the University in accounting for outgoing Wire Transfers and related procedures.  This policy applies to all departments that need to make payments via Wire Transfers and to the Accounts Payable Shared Services area.

Reason for Policy

The primary purpose of this policy is to ensure that Wire Transfers are initiated, approved and executed in a secure manner.

Policy Statement

Payments made by Wire Transfer should be limited.  Because of the risk and costs associated with Wire Transfers, it is generally recommended that payments be made through the traditional accounts payable system via ACH (Automated Clearing House) or check.  However, there are times when it is necessary for the University to pay vendors by Wire Transfer.

The department making the payment must initiate the Wire Transfer process by processing a voucher.  A Wire Transfer authorization form must be submitted with the voucher before the wire can be executed.  The Office of the Treasurer has the ability to execute wires in US dollars and in foreign currency.  All wire payments entered into the accounts payable system should be in U.S. dollars and approved by the department’s Authorized Approver.  Approval of the wire by the department attests that the transaction and all supporting documentation is appropriate.

All Wire Transfers will be coordinated and submitted through Accounts Payable Shared Services and approved by the Authorized Approver.  Once approved by Accounts Payable Shared Services, the voucher is sent to the UM System Treasurer’s Office for payment.

Definitions

Authorized Approver - a designated person within the department that has authority for approving the use of department funds.

Wire Transfer - a type of electronic funds transfer that guarantees immediate available funds or same day settlement for USD wire payments and 2-day settlement for foreign currency wire payments.  The payments are made through the Federal Reserve System’s federal wire (Fed Wire) network.

Accountabilities

UM System Treasurer’s Office:

• Review the voucher and validate appropriate approvals have been made
• Obtain payroll office review for tax issues
• Convert the wire to a foreign currency, if applicable
• Add the bank’s wire fee to the voucher, if applicable
• Initiate and approve the Wire Transfer
• Verify that the wire cleared the correct bank account
• Route the completed voucher to Accounts Payable Shared Services

UM System Controller’s Office:

• Reconciles bank accounts with accounts payable system and the general ledger

Accounts Payable Shared Services:

• Review all Wire Transfers for accuracy
• Ensure that all necessary information is provided on the Wire Transfer authorization form
• Release the hold on the voucher
• For foreign currency wires, revise the US dollar amount and manually record the payment in the accounts payable system

Campus Departments:

• Prepare the voucher
• Attach all appropriate documentation (invoices, receipts, IRS form W-8, etc.)
• Completely fill out the Wire Transfer authorization form
• Obtain all required approvals

Additional Details

Documents and Form

• International and Domestic Wire Instructions Guide - PDF reference guide.
• Wire Country Info List - Excel spreadsheet. Currency type, fees, and wire options specific to the selected country are displayed.
• University of Missouri Wire Form - Fillable PDF. Please download before completing form fields.

Related Information

Any services performed by non-resident aliens or foreign businesses on US soil need to be paid through payroll.  This ensures the payment is recorded correctly and the appropriate tax forms are issued to the supplier.

History

Formerly Accounting Policy Manual 2.10.80 – Wire Transfer Payments (revised 4/18/2007)

Procedure

Funds Movement FAQ

Non-PO Voucher Payment Types