Procedure PR2005 - Deposit to Penn State Federal Credit Union
Office of the Corporate Controller - Payroll
Policy Steward facilitating procedure: Associate Vice President for Finance and Corporate Controller
Table of Contents:
- AUTHORIZING, CHANGING, OR CANCELING A DEDUCTION
- MONTHLY WITHHOLDINGS OF DEDUCTIONS
- REFUNDS AND ADJUSTMENTS
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORD RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES
Penn State University employees may authorize deduction and subsequent deposits to the Penn State Federal Credit Union. Participation includes regular, full-time salaried employees, wage payroll employees, and grad assists who are paid on either a monthly or regular bi-weekly payroll basis. The deduction must be an even dollar amount, with a minimum deduction per pay period of five dollars for personnel on the monthly payroll and three dollars for personnel on the regular bi-weekly payroll.
Distribution of the deposit to the accounts of spouse and children will be made by the Credit Union upon request. In addition, the Credit Union will split the deposit between the repayment of a loan, purchase shares, and other deposits.
Any eligible employee, who is a member of the Credit Union and desires to initiate, change or cancel a payroll deduction, obtains from the Penn State Federal Credit Union the Credit Union Deposit Authorization" form.
The Credit Union will validate the completed "Credit Union Deposit Authorization" after checking to see that all necessary information is included on the form. These authorization forms will be delivered to the Payroll Department.
The Payroll Department will confirm that the forms are completed and that they are validated by the Credit Union. Any invalid forms received by Payroll will be returned to the Credit Union. After the files are checked to ensure the employees are on a regular payroll basis, the forms are processed to have deductions made.
As each payroll is processed, The Office of Administrative Services Administrative prepares an alphabetical listing of "Other Deductions" which will contain the social security numbers, names and amounts deducted for the Credit Union." This listing is forwarded to the Payroll Office and then sent to the Credit Union. A second copy which contains the PSU ID, names and amounts deducted is filed in the Payroll Office. The amounts withheld are credited to fund 0652 (Penn State Federal Credit Union).
After each payroll period, the Payroll Department will prepare and process an ACH transfer to the Credit Union charging the fund 0652 for the total deductions withheld during the pay period.
Payroll deduction listings received 3-4 days prior to the end of the pay period will be a part of the ACH transfer. The deductions will be posted to the Credit Union Members' Accounts as directed on the "Distribution of Deposits" forms. The Credit Union will inform the Payroll Department should any questions arise regarding the listings provided to them.
For each pay day, Accounting Operations will make adjustments to the listings errors discovered prior to the preparation of the monthly transfer.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional detail, or to request changes to this procedure, please contact the Manager, Payroll Office.
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Blue/White Shredding Program
Date Approved: 01/17/00
Most recent changes:
- Rev 1. - Dated 08/20/99
Revision History (and effective dates:)
- Rev 1. - Dated 08/20/99
- Original - Dated 12/1971