Updates to Supplier ACH Information Due to Recent Bank Failures
March 22, 2023
As a precaution, the SMART Team has inactivated supplier ACH information linked to the 3 financial institutions that failed on March 10, 2023. A letter is being sent to each supplier that has received a payment from the State of Kansas in the past 6 months.
Three options have been given to the suppliers:
If the supplier takes no action, payments from State of Kansas will no longer be paid by ACH to any of the 3 failed financial institutions. Payments will go to another ACH location, if there is one, or by paper check.
The supplier can contact the paying agency to submit a new direct deposit form to direct payments to a new account with a different financial institution.
The supplier can contact the paying agency to request that the ACH information directed to the failed bank be re-activated, but this is not advised. If this is the case, the supplier needs to include a new letter from the bank confirming the routing and account number to be used.