Harvard will issue wire transfers in lieu of AP checks in special situations.

A wire transfer is an online transmission of funds from the central Harvard bank account to a vendor or supplier bank account.

The use of wire transfers is discouraged in most instances because of the transaction costs involved.

Special situations when wire transfers are appropriate:

1. General operations:

· Funding of foreign bank accounts relating to Long Term Operating Advances (LTOA)

· Central processing on behalf of the University (e. g., Tax, Am Ex, Pcard payments)

· Payment to foreign individuals or vendors in countries with inadequate postal and/or bank systems or where check theft is a serious problem

2. Large dollar payments where immediate availability of funds is required

For purposes of this policy a large dollar amount is defined as over $5 million.

Background:

Checks should be issued for the majority of large dollar transactions since this maximizes funds available to the University. However, for certain large dollar transactions, e.g., real estate purchases, vendors require immediate availability of funds. This may be required under the terms and conditions of the agreement. Federal wire transfers will be issued for these transactions since neither AP nor certified bank checks guarantee immediate availability of funds.

Other situations:

· It is recognized that wires in US dollars for amounts $1,000 and greater may be preferred, however, it is strongly recommended that AP checks be used instead.

· Domestic and foreign wires in US dollars are not allowed for amounts under $1,000.

Basic Procedures

Local unit

· Prepares and approves web voucher

· Completes and attaches Wire Transfer Authorization Form to the front of the invoice

· Forwards documentation to AP

Central OFS: upon receipt of documentation and appropriate review

· Enter and match transaction into AP system

GL account immediately expensed

· Cash Management wires Harvard funds to receiving bank account

Note: If a wire transfer is needed in a foreign currency, follow procedures for Bank Drafts in ABLE under Web Voucher (insert URL)

See ABLE for more detailed processing instructions or to obtain the wire transfer or bank draft authorization form.