ORD NO 12-2024r
CITY OF VAN BUREN,ARKANSAS
ORDINANCE NO. 1A-2024
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS,AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE TO ESTABLISH POLICY AND PROCEDURES
FOR ELECTRONIC FUNDS TRANSFERS ("EFT") FOR BOTH
PAYMENTS AND RECEIPTS DECLARING AN EMERGENCY,
AND FOR OTHER PURPOSES.
WHEREAS, Arkansas Code Annotated 14-59-105 establishes procedures for municipality accounts
payable and receivables by means of electronic funds transfer,provided certain measures
with proper accounting controls, documentation, and oversight is properly adopted by
ordinance;and
WHEREAS, The City of Van Buren recognizes the use of various electronic payment methods as a
safe and efficient method to process certain accounts payable and accounts receivable;
and
WHEREAS, The City of Van Buren is committed to establishing specific controls and procedures for
the utilization of electronic fund transfers"BFT's";and
WHEREAS, the procedures outlined below delineate how the City of Van Buren shall engage in the
proper accounting procedures to be followed in accordance with state statute and
according to regulations laid out by state auditors.
NOW,THEREFORE,BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF
THE CITY OF VAN BUREN,ARKANSAS,THAT:
SECTION 1: The City of Van Buren by way of this ordinance shall hereby be authorized to utilize
EFT's for receipt of intergovernmental payments, grant payments, and other revenues
where practical,transmitting of payroll,withholdings,tax deposits,bond payments,credit
card processing,banking fees, remote deposits, real estate transactions, utility payments,
insurance payments, retirement payments, recurring payments, payments to fuel
providers and other vendors where practical or required. EFTs are defined as transfers by
electronic means of the City's funds through banking channels directly into a payee's
account in financial institutions into and from any account allowed by the City of Van
Buren.
SECTION 2: The City of Van Buren has determined the proper procedures to initiate an EFT, which
shall be subject to the same financial policies, procedures, and controls that govern
disbursement by any other payment method. EFT transactions shall not be made without
proper authorization of affected parties in accordance with federal and state statutes and
accepted business practices. Said procedures are laid out in the policy and procedures
document attached hereto as Exhibit A.
EXHIBIT A
ACH/Electronic Funds Transfer Policy for the City of Van Buren
The purpose of this policy is to describe the accounting procedures under which the City of Van Buren is
allowed to utilize ACH or Electronic Funds Transfer(EFT).
• Each user initiating bank transactions will have a separate bank user ID,Password and Login
credentials that require two-factor authorization. Passwords,security questions or login
credentials will not be shared.
• Bank balances will be monitored and reconciled daily,with minimal exception,for unusual
activity. A daily Cash Analysis report will be distributed to the Mayor and City Clerk-
Treasurer's office via email by the Chief Deputy City Clerk.
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• Reconciliation of bank statements will be completed by the Chief Deputy City Clerk beginning
no later than the fifth(fifth)business day of each month. This will be completed and approved by
the City Clerk-Treasurer no later than the tenth(1 Ot")business day of each month.
• The Mayor or City Clerk-Treasurer is authorized to initiate vendor payments through EFT,or if
needed,transfer of funds between bank accounts. The City Clerk-Treasurer will be responsible
for review of EFT requests in order to ensure compliance, completeness and proper recording.
This method of payment will be used only when authorized by the Mayor or City Clerk-
Treasurer.
• To ensure the safety of city funds all procedures will be strictly followed. 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 other methods.
• If a vendor is approved for EFT an invoice for each payment must be obtained.
• The invoice for payment will be approved and coded by the appropriate Department Head.
• The amount of the invoice will be entered into the Incode accounting system and proof of
payment will be printed and attached to the invoice,just as if it were a paper check being used.
• The documents will be date stamped and initialed by the Mayor.
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SECTION 3: For electronic fund payments the City of Van Buren hereby requires:
a. The receipt of an invoice from the payee, which, if received electronically shall be
printed for the hard copy file and also scanned into the digital file.
b. The City Clerk-Treasurer's office shall enter all pertinent data into the accounting
system.
c. The invoice and a copy of the proof of payment will be presented to the Mayor
and/or City Clerk-Treasurer for review and signature.
d. All bank statements including electronic fund transfers will be reconciled, at
minimum, of once a month by the City Cleric-Treasurer and approved Deputy City
Clerk
e. Bank balances shall be monitored regularly for unusual or unexpected transactions
and reconciliation of banking activity shall be accomplished in a timely manner with
investigation and resolution of reconciling items. Additionally, the City of Van
Buren will ensure the state auditor has access to files,records, and documentation of
all EFT transactions involving the City of Van Buren when required, for conducting
any and all audits.
f. In the event any portion of this ordinance is declared to be inoperative or invalid as a
result of a statute or judicial decision,then only that portion expressly so declared to
be inoperative or invalid shall be affected thereby and all other provisions hereof
shall remain in full force and effect.
g, The City Council for the City of Van Buren further determines that this ordinance is
necessary for the immediate protection and the welfare of the citizens of Van Buren
because this ordinance minimizes the expense and inefficiency of paying bills via
paper check while preserving the necessary accounting oversight procedures.
Therefore, an emergency is hereby declared, and the ordinance shall take effect and
be in full force after its passage,approval and publication.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did pass,
approve, and adopt, by a vote of—Y for and_0 against, the foregoing Ordinance at its regular meeting
held on the 22°d day of April 2024.
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ATTESTED: APP ORM:
Shawnna Reynolds acob Howe
City Clerk/Treasurer City Attorney �`'.'e '