ELECTRONIC CHECKS OVERVIEW OF GVSU 4 4 yea ear publ ublic U Uni - PowerPoint PPT Presentation

ELECTRONIC CHECKS

OVERVIEW OF GVSU 4 4 yea ear publ ublic U Uni niver ersity  1 of 15 in state of Michigan  1 of 12 in the country in the public liberal arts education space  Tuition is in the lower half of all Michigan public universities  Receives the lowest level of state funding of the 15 universities Grand nd V Valley’s ef efficient o oper erations have been e been no noted ed i in n Michigan a and i in n nation onal r l rankings. Grand nd V Valley h has a an eco n econo nomic i impact in n the e Wes est Mi Mich chigan reg egion o of more e than $730 m $730 million d dol ollars. Grand nd V Valley w was na named ed o one ne of the e co count untry’s g greenes eenest uni univer ersities es by Sier erra Club. ub.

OVERVIEW OF GVSU GVSU w was as founde ded in in 1960 Curre rrent E ERP ( (Banner) r) s system w was i imple lemented i in 2005  Investment i initially w lly was $ $7.4 milli llion on  Sh Shar ares o one dat datab abase b between st students an and d vendo dors  Ban Banner is o is only t the se second E ERP sy system in in our h his istory

OVERVIEW OF GVSU 5, 5,500 v 500 ven endors  90,000 invoices in Fiscal year 12/13  30,130 (53%) were ACH payments  27,072 (47%) were check payments  Added 664 new vendors in the last fiscal year  177 (27%) signed up for ACH payments  72 (9%) signed up for VerifyValid checks 30, 30,448 p 48 purch chasing car ard d pay ayments

OVERVIEW OF GVSU 24, 4,500 s 500 students  75,000 payments in fiscal year 12/13 for over $118 million  42% with electronic checks  30% with credit cards  21% with paper checks  5% with cash  2% with wires  Issued 50,000 Financial Aid refund checks  61% with ACH  39% with paper checks

OVERVIEW OF GVSU 2, 2,400 400 full & l & part t time e emplo loyees 2, 2,200 200 st stude dent emplo loyees  115,207 (86%) ACH payments  18,904 (14%) paper checks Ev Even n th thoug ugh G GVSU have e been en using g AC ACH since e 1996, we still ill have not elimi minated ed paper chec ecks. Adding new forms ms of elec ectronic paymen ment should d help r redu duce t that numb mber er.

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK Wh Why d did id GVSU e U even en cons nsid ider er a a chang ange? e?  Improve efficiency  Improve the sustainability pledge  Reduce the time of printing and delivery  Reduce the cost of printing and postage  Reduce the chance of fraud  Reduce the number of phone calls about validity of checks  Reduce the number of paper checks  Complete the electronic invoice process system

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK How d doe oes s VerifyVali lid’ d’s el elec ectronic nic c chec eck work?  Vendor is set up with a payment email in our ERP system  Payments are created in our accounting system based on bank code  Process the VerifyValid bank code like our regular paper checks  Create a file of payment information and remittance information  Upload the file to VerifyValid  Click one button to sign and send emails  Payee receives a notification email  Payee clicks the link to view a pdf that at i is a a ch check with remittance data  Payee either prints check for deposit or deposits directly into their bank with remote deposit capture

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK Impl plica cations for G GVSU a and d Vendo dors  Reduces paper use – improves our green initiative  Completes the ability to receive and pay invoices electronically  No software implementation costs – just per item fees which are less than cost of paper check  Little IT investment  Vendors recognize a check  Vendors get paid faster – bigger economic impact with the same dollars  Vendors can deposit with remote deposit capture same day as university creates the check

CASE STUDY TAKE AWAYS  Go Going e electronic requi uires t thought o on n how it w will i impact systems a and nd pr processes  Decrease ses s costs  Decreases t time for or vendors t to o receive p paym yment  Improves acce ccess t to data ta  Im Improves security y  Ban Banks p process r remai emains t the e sam ame

CASE STUDY TAKE AWAYS  Little effort o on n our ur pa part to convert v vend ndors t to t this type pe o of e electronic check No o me merchant f fees   Autom omates the receiving of of these payme yments  Payer a and P Payee benefit Why? y? IT IT IS IS J JUST A A CHEC ECK!