Electronic Funds Transfer

The University of Toronto is seeking to introduce a pilot project to update the payment method for external vendors. 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 are seeking to implement a pilot Electronic Funds Transfer (EFT) payment system that will allow U of T to pay vendor invoices directly to vendors’ bank accounts.

Project Overview

The pilot phase of this project will transition 53 U of T construction and high-volume vendors from cheque payment to CIBC EFT payments. U of T will be able to pay vendors through EFT and send remittance information along with the payment. The pilot will provide learnings and will serve as a foundation for a future for select additional vendors and projects.

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 is implementing this pilot project to improve efficiencies and transparency for vendors and staff.

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

  • A – Milestone: Go Live, Occurs August 2022
  • B – Task: Prepare, Starts December 2021, Ends February 2022
  • C – Task: Design, Starts February 2022, Ends March 2022
  • D – Task: Build, Starts April 2022, Ends July 2022
  • E – Task: Technical Testing, Starts May 2022, Ends June 2022
  • F – Task: Financial Testing, Starts July 2022, Ends July 2022
  • G – Task: Deploy, Starts July 2022, Ends August 2022
  • H – Task: Communication & Change Management, Starts December 2021, Ends August 2022
  • I – Task: Project & Quality Management, Starts December 2021, Ends August 2022

 

 

Contact

Kirin Jeffery
Special Projects Officer, Planning & Budget
kirin.jeffery@utoronto.ca

Project Sponsors

  • Scott Mabury, Vice-President, Operations and Real Estate Partnerships & Vice-Provost, Academic Operations
  • Trevor Rodgers, Chief Financial Officer

Project Leadership Group

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