Electronic Transactions Policy

Policy #027

  • Adopted: February 27, 2006
  • Effective: February 27, 2006

Objective

The following policy shall authorize and regulate the use of electronic transactions and ACH arrangements for Kalamazoo Public Library.

Authority to Enter into Electronic Transfer Agreements

The Director, Deputy Director, or Head of Finance & Budget may enter into an electronic transfer agreement as provided by Public Act 738 of 2002, effective December 30, 2002 with financial institutions previously approved by the Treasurer and the Board of Trustees. The Kalamazoo Public Library Board of Trustees shall have adopted a resolution to authorize electronic transactions and have received a copy of the policy. Applicable definitions in the act shall apply.

Responsibility for Electronic Transfer Agreements

The Treasurer delegates responsibility for overseeing all electronic transfer agreements and compliance with ACH policy to the Library Director.

Internal Account Controls to Monitor Use of Electronic Transactions

A. Electronic transfer transactions shall be used to transfer payment of salaries, benefits, or employee deductions or reimbursements; for the payment of Kalamazoo Public Library bond principal and interest; or for the purpose of transferring funds between Kalamazoo Public Library owned checking or investment accounts. No other ACH or electronic transfer of funds is authorized without the express written approval of the Treasurer.

B. All electronic payments must be reported in the monthly financial reports indicating service received, payment date, payee(s), and amount. All electronic transfer of funds must also be detailed indicating amount transferred, date, purpose, and Kalamazoo Public Library accounts affected.

C. All electronic payments must be approved by the Director, Deputy Director, Head of Finance and Budget, or their delegate, prior to entry of the transaction into the applicable software system.

D. Dollar limits for all outgoing electronic transfers will be established at no more than $500,000 per day, regardless of purpose. Dollar limits will be limited to allow only those transfers necessary. Current staff members with transfer authority include: Head of Finance & Budget, Payroll Supervisor/Benefits Specialist, Payroll Clerk, and Accounting Assistant.

E. Access to electronic bank software will be restricted to Business Office personnel on a need to know basis. Each staff member with access will have a dollar limit established and authority granted specific to their function and transaction need. Passwords & security access will be updated every 90 days.