Monroe County Intermediate School District
Bylaws & Policies
 

6143 - AUTOMATED CLEARING HOUSE (ACH) ARRANGEMENTS AND ELECTRONIC TRANSACTIONS OF FUNDS

The following policy shall govern the use of electronic transactions and ACH arrangements for Monroe County Intermediate School District:

Definitions

"Automated clearing house" or "ACH" means a national and governmental organization that has authority to process electronic payments, including, but not limited to, the national automated clearing house association and the Federal Reserve System.

An "ACH arrangement" means the agreement between the originator of the ACH transaction and the receiver of an ACH transaction.

An "ACH" transaction" means an electronic payment, debit or credit transfer processed through an automated clearinghouse.

An "ACH policy" means the procedures and internal controls as determined under this written policy.

Authority to Enter into ACH Arrangements and Electronic Transfers of Public Funds

The Electronic Funds Officer (ETO) may enter into an ACH arrangement as provided by Public Act 738 of 2002, effective December 30, 2002.

The School District shall not be a party to an ACH arrangement unless the District Board of Education has adopted a resolution to authorize electronic transactions and the ETO has presented a written ACH policy to the Board.

An ACH arrangement under PA 738 of 2002 is not subject to the Revised Municipal Finance Act, Public Act 34 of 2001 (M.C.L.A. 141.2101, et seq.) or to provisions of law or charter concerning the issuance of debt by a local unit.

Responsibility for ACH Agreements

The ETO is responsible for the Districtís ACH agreements, including payment approval, accounting, reporting and generally for overseeing compliance with the ACH policy.

An ACH transaction report detailing individuals or businesses paid, services purchased, the cost of goods or services and the date of the payment shall be contained in the School Districtís electronic general ledger software system or in a separate report and made available to the Board. These ACH reports shall be retained for audit purposes.

Internal Accounting Controls to Monitor Use of ACH Transactions Made by School District

The following system of internal accounting controls will be used to monitor the use of ACH transactions made by the School District.

 A.The ETO or designate shall prepare a list of vendors authorized to be paid by ACH transaction. Such list will be approved by ETO.

 B.If applicable, the business office initiates the transaction upon receipt of an invoice included on the authorized ACH list approved by the ETO. ACH invoices must be approved before payment. The ETO signs the ACH invoice, which then acts as approval for the ACH transactions.

 C.A separate list of electronic payments shall accompany disbursement lists for approval.

 D.The ETO or designate will sign the electronic transaction and make the actual transfer of funds.

 E.The ETO shall retain all ACH transaction documents for audit purposes.

As required by law, resolution to authorize electronic transactions and written ACH policy presented on May 18, 2004.

M.C.L.A. 124.301 et seq.

Adopted 6/24/04