HomeMy WebLinkAboutResolution No. 418CITY OF MEDINA, WASHINGTON
RESOLUTION NO. 418
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MEDINA, WASHINGTON, AMENDING THE FINANCIAL
MANAGEMENT POLICY TO INCLUDE EFT (ELECTRONIC
FUND TRANSFER) CONTROL PROCEDURES
WHEREAS, State policy requires that agencies develop written internal policies for managing
Electronic Fund Transfers; and
WHEREAS, as a result the State Auditor made recommendations that the City develop and
adopt policies for managing these transactions; and
WHEREAS, based on example policies provided by MRSC and existing City practices, City staff
drafted new policies and procedures for EFT Control Procedures for City Council consideration;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON,
RESOLVES AS FOLLOWS:
Section 1. Amended Financial Management Policies Adopted. The City Council finds
it in the best interest of the City to have an EFT Control Procedures Policy and hereby adopts
the amended Financial Management Policy attached hereto as Exhibit A.
Section 2. Effective Date. This Resolution shall be effective upon its adoption by
the City Council.
PASSED BY THE CITY COUNCIL OF THE CITY OF MEDINA ON JUNE 14, 2021 AND
SIGNED IN AUTHENTICATION OF ITS PASSAGE ON JUNE 14, 2021.
Filed with the City Clerk: 6/15/2021
Passed by the City Council:6/14/2021
Resolution Number: 418
EFT (Electronic Fund Transfer) CONTROL PROCEDURES
To promote the safety of City funds in the electronic funds transfer environment, the following
procedures will be adhered to:
1.The procedure to initiate, approve, and record an EFT payment is subject to the same financial
policies, procedures, and controls that govern disbursements made by any other means.
•Review of transfer by Finance Director or her/his designee who will not be entering or initiating
the transfer.
•Two approval signatures from authorized check signers.
•Reconciliation of bank activity to the General Ledger will be performed in a timely manner with
all exceptions resolved.
2. EFT transactions will not be made without proper authorization of affected parties in accordance with
federal and state statutes and accepted business practices.
3.All EFT payments should be initiated by secure computer-based systems:
•US Bank SinglePoint (designated administrator, dual control & time-limited token generated
PIN)
•Known payroll benefit providers’ portals, such as IRS, AWC, DRS.
4. The City Finance Director shall serve as primary administrator to manage and control access to the
systems used to process EFT transactions. The administrator shall ensure that adequate separation of
duties exists in accordance with accepted internal control standards. In addition, the administrator shall
ensure approval and maintenance of user system IDs, user permissions, including authorized
representatives and their associated transfer limits. The City Manager has authority serve as back up
administrator.
5. Because EFT transfers between City bank accounts have reduced risk, the Finance Office may use EFTs
on a routine basis to concentrate funds for payment and investment purposes. Although the risks are
minimal for transfers between City accounts, reasonable controls should exist with regard to
authorization, reconciliation, and review of these transactions.
6. EFT payments are limited to transfers between City bank accounts, employee expense
reimbursement, payroll and payroll benefits.
7. Employees must submit hard copy of completed Direct Deposit Agreement Form to the Finance
Director. No electronic signatures will be accepted. Any change to banking information will require a
newly completed form. Employee signatures will be verified against signature on file. If an employee
submits a change request without enough time for authorization prior to payroll, payment will be made
by check until such time as the information can be verified.