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It's been a long time coming, but I have finally completed my analysis of
using electronic direct deposit (EDD) for the City of Fresno's payroll, and here
are my results. We have determined that it would cost us more to convert
to electronic direct deposit.
In July, we converted from issuing individual checks to the bank for each
employee who is signed up for direct deposit to issuing one Accounts Payable
check to all banks that allow us to direct deposit our employee's checks.
Currently, we have 7 banks who allow this. By doing this, we cut our
banking charges almost in half.
When I analyzed our actual costs over the last and current fiscal years
with what we would have paid with (EDD), I found that the costs were very
comparable during FY1999. However, because we are issuing only one check
per bank this year, our costs per transaction is far less than both last year's
actuals and EDD. The difference between last year's and this year's
actuals is the "Per Item" charges. The difference between this year's
actuals and EDD are the flat monthly fees.
Using EDD would keep our monthly service fees in tact, but would also
add new monthly service fees for using EDD. These fees would quickly
absorb any savings we would have incurred on the "Per Item" charges, leaving us
back where we came from last FY.
I am attaching my workbook on this research project for you to
examine. It is in Microsoft Excel format, and includes actual data and
comparison charts.
Phillip Hardcastle
Accountant/Auditor City of Fresno (559) 498-1399 FAX: (559) 488-4636 |
Payroll - Direct Deposit Analysis (Actuals.xls- [CSMFO Members] Credit Card Acceptance Survey Alexander, Crystal
- Phillip Hardcastle
