Deposit Checks

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

 

Banking Fees

 

•  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