Two scenarios often result in cash shortfalls on projects (generally contracts):
Wire Transfer Fees
• Payments made by wire, both from U.S. and foreign banks, are often charged a wire transfer fee.
• SPF receives the payment less the fee, and applies that payment to the appropriate account.
- Fees vary - common fees are $10, $25, & $27.
• At the end of the project, a cash shortfall exists
• Projects that involve international subcontracts often incur banking fees due to in-country banking operations
- i.e.: Fees for withdrawing cash from, or depositing checks to, a Kazakhstan-based banking account.
• At the end of the project, a cash shortfall exists.
- This may be avoided by planning for these fees during the budgeting process.
Handling Wire & Banking Fees
• In both scenarios, the prime department is responsible for covering the cash shortfall.
• At account closeout, SPF will:
- Decrease the budget to match total payments received
- An overdraft will result
- Request an unrestricted account number to which the overdraft will be transferred
• For wires based in a foreign currency, the associated wire fee and/or cash shortage due to currency fluctuation is waived 17