ELECTRONIC
TRANSACTIONS OF FUNDS AND AUTOMATED CLEARING HOUSE ARRANGEMENTS
The following policy of the Board of
Education of Benton Harbor Area Schools shall govern the use of
electronic transactions and automated clearing house arrangements.
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The following definitions shall be used in
this policy:
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“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.
Also referred to as “Electronic Funds Transactions” or “EFT”.
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“ACH Arrangement” means the agreement
between the originator of the ACH Transaction and the receiver of the
ACH Transaction.
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“ACH Policy” means the procedures and
internal controls set forth in this policy.
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“ACH Transactions” means an electronic
payment, debit, or credit transfer processed through and ACH.
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"Electronic Transactions Officer” or “ETO”
means the Superintendent or designee is responsible for the district’s
ACH agreements, including payment approval, accounting, reporting, and
general oversight of ACH Policy compliance.
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Authorization for
ACH Arrangements. The ETO may enter into an ACH Arrangement in
accordance with the Act and this ACH Policy. However, Benton Harbor
Area Schools shall not be a party to an ACH Arrangement unless the
Board of Education has adopted a resolution authorizing electronic
transactions and the ETO has presented to the Board of Education this
ACH Policy
- Responsibility
for ACH Arrangements. The ETO is responsible for ACH agreements of
Benton Harbor Area Schools including payment approval, accounting,
reporting, and general oversight of ACH Policy compliance.
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Internal Controls. The following system
of internal accounting controls will be used to monitor the use of
Benton Harbor Area Schools ACH transactions:
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Incoming Payments
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The ETO shall appoint at least one person
other than the ETO, to be in charge of receiving incoming payments.
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When an incoming payment is received the
person in charge shall record the payment in the general ledger
receipt book.
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Outgoing Payments
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The ETO shall appoint at least one person,
other than the ETO to process outgoing payments.
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