DJEK    Electronic Transaction of Funds                                                                           DJEK

 

The district, through resolution of the board, shall be a party to an Automated Clearing House1 (ACH) arrangement2.  The superintendent shall be responsible for the district’s ACH agreements, including payment approval, accounting, reporting, and generally for overseeing compliance with the ACH policy3.  All ACH invoices are to be approved prior to payment.

 

Internal Accounting

 

The superintendent shall be responsible for development and maintenance of appropriate accounting controls to monitor the use of ACH transactions4 made by the district.

 

 

LEGAL REF:  MCL 124.301-124.305

 

 

Approved:  6/26/03

 

                                               

1 “Automated clearing house” or “ACH” – a national and governmental organization that has authority to process electronic paymen5ts, including, but not limited to, the national automated clearinghouse association and the federal reserve system [MCL 124.301(d)].

2 ACH arrangement – the agreement between the originator of the ACH transaction and the receiver of an ACH transaction [MCL 124.301(a)].  Under PA 738 of 2002, MCL 124.301, and ACH arrangement is not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101, or to provisions of law or charter concerning the issuance of debt by a local unit.

3 ACH policy – the procedures and internal controls as determined under this written policy developed and adopted by the superintendent [MCL 124.301(b)].

4 ACH transaction – an electronic payment, debit or credit transfer processed through an automated clearinghouse [MCL 124.301(c)].