State Agencies Bulletin No. 1646

Subject
Direct Deposit Returns and Reversals during the Statewide Financial System (SFS) Blackout for Fiscal Year End
Date Issued
March 30, 2018

Purpose

To notify agencies that OSC will be unable to print checks for employee Direct Deposit Returns and Reversals during the SFS blackout period

Affected Employees

Employees whose Direct Deposit is returned from their financial institution for any reason or whose Direct Deposit is reversed due to an overpayment

Background

The Statewide Financial System will be unavailable for use due to fiscal year end processing.

Effective Date(s)

March 29, 2018 through the completion of fiscal year end processing

OSC Actions

OSC will continue to receive and process direct deposit returns from the financial institution. OSC will prepare all transactions to be submitted to SFS for check printing when SFS becomes available. Therefore, employees whose direct deposits are returned from the receiving financial institution during this period will not receive a check to replace the returned direct deposit until approximately five (5) business days after the SFS blackout period ends.

OSC will continue to receive and process direct deposit reversals to and from financial institutions for employees who were overpaid by the agency. OSC will prepare transactions for all direct deposit reversals received from financial institutions to be submitted to SFS for check printing when SFS becomes available. Therefore, the checks will not be available to process a Report of Check Returned for Refund or Exchange (AC-230) until approximately five (5) business days after the SFS blackout period ends.

AC-230s to reverse the overpayment in PayServ will continue to be received and audited by OSC. However, AC-230s will not be processed to reverse the paycheck in PayServ until the corresponding direct deposit reversal check is processed and received from SFS.

Agency Actions

Agencies must ensure employee direct deposit account changes and updates are completed as soon as possible. If an employee notifies the payroll office of a direct deposit account change or closure during the SFS black out period, ensure the employee’s Direct Deposit Table in PayServ is updated immediately.

Questions

Questions regarding this bulletin may be directed to the [email protected] mailbox.