Electronic Funds and Automated Clearing House Transactions Policy
A policy which authorizes and regulates disbursement or receipt of funds by Seymour Public Library District (“Library”) via Electronic Fund Transactions and Automated Clearing Houses. This policy also applies to movement of funds between Library organizations that have authority to process electronic payments, and to provide for powers and duties of the officials that will act on behalf of the Library.
“Automated Clearing House” or “ACH” means a national and governmental organization that has authority to process electronic payments.
“ACH Arrangement” means an agreement between the originator of the ACH transaction and the receiver of an ACH transaction.
“ACH Transaction” means use of Electronic Fund Transactions for executing payment, debit or credit transfers which are processed through an automated clearing house.
“ACH Policy” means the procedures and internal controls as determined under this written policy which has been adopted by Seymour Public Library District Board of Trustees.
“Bookkeeper” means the individual or firm designated by the Library to prepare payroll, accounts payable, accounts receivable, documents in support of satisfying state and federal reporting requirements and to maintain the accumulation of day-to-day financial records for Library.
“Electronic Transaction Officer” or “ETO” shall be the person that the Board has appointed to serve as Treasurer. The ETO shall oversee and ensure that ACH transactions are executed in compliance with this policy.
“Electronic Funds Transaction” or “EFT” is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.
“Treasurer” shall be the person that the Board appoints to keep account of all monies received and disbursed in such manner and for such purposes as approved and authorized by the Board.
- Authority to Enter into ACH Agreements and Electronic Transfer of Public Funds
In accordance with any legal requirements of the local, state or federal law, the Board has adopted a
Resolution which authorizes the Library Director and Treasurer to enroll Seymour Public Library District into ACH Arrangements and authorizes use of Electronic Fund Transactions for executing payment, debit or credit transfers which are processed through an ACH when such actions conform with this policy.
- Responsibility for ACH Agreements
The Board designates the Library Director and the Treasurer to be responsible for ACH Arrangements and for generally overseeing compliance with this ACH Policy. The Library Director is also responsible for submitting documentation to the Board which provides details about the goods or services purchased, the cost of such goods or services, the date of payment, and the projects which have caused the District to incur expenses or receive revenues via ACH arrangements all in accordance with relevant law. EFT and ACH payment activities will be reported to the Board as part of the financial report that is delivered during each scheduled meeting.
- Internal Accounting Controls for use of EFT and ACH Transactions
Pre-Approved Payees and Payment Limits: The Bookkeeper shall prepare a list, for pre-approval by the Library Director, of all vendors, ACH Arrangements and other agencies that are to receive payments from Seymour Public Library District via Electronic Fund Transactions and ACH Arrangements (the ‘Payees”) – on a regular or on-going basis. This list shall also define the not-to-exceed amounts for which the Bookkeeper, Library Director and Treasurer may process and execute payments. The District Director will seek specific approval from the Board prior to making any payments that exceed the pre-approved limit or in preparation for making EFT or ACH payments to Payees that have not been listed on the preapproved list.
Reporting EFT and ACH Activities to the Board: All EFT and ACH payment activities will be reported to the Board at the next scheduled meeting following execution of such payments. These reports will be provided to the Board as part of the financial report that is delivered during each scheduled meeting.
Paying State and Federal Payroll Taxes: For payment of state and federal payroll taxes and other payroll liabilities – – the Bookkeeper has authority to make such payments via the established Electronic Federal Tax Payment System (EFTPA) and the State of New York program.
Receiving EFT & ACH Deposits: When Deposits from State, County, and/or Federal authorities, and from third-party payment processors, e.g. banks, vendors, are received – – the Bookkeeper shall obtain the amount of the deposit for recording and accounting purposes.
During a regularly scheduled meeting, conducted on ________________________, the Seymour Public Library District Board of Trustees approved a Resolution making this policy effective immediately.
Seymour Public Library District
By: Patricia Messina, Board President Date
By: , Secretary Date
Approved August 27, 2019