The following policy shall govern the use of electronic transactions and ACH arrangements for the City of Howell:
(a) Authority to Enter into ACH Agreements and Electronic Transfer of Public Funds.
(1) The Treasurer or ETO may enter into an ACH agreement as provided by Act 738 of the Public Acts of 2002, effective December 30, 2002. The City of Howell has adopted Resolution 03-26 authorizing electronic transactions and approving this policy. Applicable definitions in the Act shall apply.
(2) An ACH arrangement under Act 738 of the Public Acts of 2002 is not subject to the Revised Municipal Finance Act, Act 334 of the Public Acts of 2001, M.C.L.A. Sections 141.2101 to 141.2821, or to provisions of law or charter concerning the issuance of debt by the City.
(b) Responsibility for ACH Agreements. The Treasurer or ETO shall be responsible for all ACH agreements, including payment approval, accounting, reporting and generally overseeing compliance with the ACH policy. The Treasurer or ETO shall submit to the City of Howell documentation detailing the goods or services purchased, the cost of goods or services, the date of the payment and the department levels serviced by payment. This report can be contained in the electronic general ledger software system or in a separate report to the governing body.
(c) Internal Accounting Controls to Monitor Use of ACH Transactions.
(1) The Treasurer or ETO shall be responsible for the establishment of ACH agreements. The Treasurer or ETO shall notify the person responsible for approval and payment of those accounts to be paid by ACH or electronic transfers.
(2) Upon receipt of an invoice for payment for accounts paid by ACH, the person responsible for approval and payments all approve payment and notify the Treasurer or ETO of the date of debt to the City accounts. Accounts payable by this method may include utility and recurring lease payments. These payments shall be included on the report of payments to the City of Howell. All other invoices approved by the person responsible for approval and payment and payable by ACH may be paid in that matter if deemed in the best interest of the City of Howell to avoid a late fee.
(3) For payment of State and Federal payroll taxes, the Treasurer or ETO shall initiate payment to the proper authority upon receipt of the information from the payroll department and established EFTPS and state program.
(4) For deposits from state, county and/or federal authorities, and from third-party payment processors, e.g. banks/vendors, the Treasurer or ETO shall obtain the amount of the deposit and send an advice to the person responsible for accounting records.
(5) All invoices shall be held by the person charged with keeping the records along with copies of payment advices.
(Res. 03-26. Passed 12-1-03.)