Electronic Funds Transfer

The University of Toronto is currently implementing a project to update the payment method to transition vendors from paper cheques to Electronic Funds Transfer. This initiative will help to increase efficiency and transparency as well as provide a convenient, cost-effective way to distribute recurring payments to established Canadian vendors. To achieve this goal, the Financial Services Department, Procurement Services and Enterprise Applications & Solutions Integration have implemented CIBC Electronic Funds Transfer (EFT) payment to allow U of T to pay vendor invoices directly to vendors’ bank accounts.

Project Overview

Phase 1 – Launched August 2022

Vetted 33 Canadian currency vendors to transition from payments by paper cheque to direct deposit, offering increased payment speed while reducing processing costs for U of T and vendors.
Vendors were selected for the EFT pilot due to their transaction volume and spend and were onboarded through the Enterprise Service Centre.

Phase 2 – Launched March 2023

Increased automation and reduced manual workflows.
Scaled automation to onboard larger numbers of existing U of T vendors, including additional vendors proposed by the U of T community.
Enabled the convenient display of EFT suppliers in SAP.

Phase 3 – Initiated June 2023

Streamlining processes, particularly in Accounts Payable for reviewing and approving supporting documentation for payments.
Continuing to strategically onboard existing U of T vendors and accept additional vendor recommendations from the U of T community for future consideration.
Initiating pilot for onboarding net new vendors in September 2023.

Why Transform the Vendor Payment Process?

U of T currently prepares physical cheques for vendor payments, which are then mailed to vendors. This process can be slow, labor intensive and subject to the availability and speed of Canada Post. U of T has limited control over when cheques arrive, which makes it challenging to meet tight payment terms and there is no tracking or tracing ability. Given these challenges, U of T has implemented this project to improve efficiencies and transparency for vendors and staff.

Resources

Interested in learning about changes for users? Visit Financial Services’ webpage for details about:

An overview of the project
Highlights for financial administrators
Documentation and simulations related to the EFT Initiative and FIS reporting and processing
Contacts

Benefits

U of T

Reduces manual effort and provides a convenient, cost-effective way to distribute recurring payments by an electronic payment file rather than issuing a cheque.
Allows U of T to deliver remittance information along with payment electronically.
Reduces the uncertainties associated with the timing of cheques, reduces lost or misdirected cheques, and facilitates meeting tight payment terms.
Provides a secure file-transfer system to move files to and from CIBC in an automated manner.
Provides reassurance that security protocols will be implemented.
Allows for improved tracking capabilities.
Provides reassurance that payments will be processed properly by CIBC, a trusted U of T partner.

Vendors

Increases payment transparency and reduces the uncertainties associated with the timing of payments and avoids lost or misdirected cheques.
Eliminates the inconvenience of suppliers having to prepare and process deposits – reduces manual workflows.
Increases speed of payment.

Timeline

Contact

Kirin Jeffery
Manager, Strategic Initiatives, Finance Division
kirin.jeffery@utoronto.ca

Project Sponsors

Trevor Rodgers, Chief Financial Officer

Project Leadership Group

Cathy Eberts, Director, Enterprise Applications and Deputy CIO
Renata Faverin, Director, Procurement Services
Sanish Samuel, Controller and Director of Financial Services
John Ogg, Senior Manager, Financial & Student Account Information Systems

June

				Go Live
Design
	Build
		Test
			Deploy