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County auditor urges return to electronic payments with new controls; commissioners approve phased EFT policy
Summary
After reviewing payment‑fraud risks and recent phishing losses, the county auditor recommended resuming electronic payments with strengthened internal controls. Commissioners voted 4–1 to restore EFT use while requiring departments to adopt written ACH/EFT procedures and controls before resuming electronic vendor payments.
Nueces County’s interim auditor briefed the court on Oct. 8 about payment‑fraud risks and best practices, and commissioners voted 4–1 to resume electronic funds transfers (EFT/ACH) with additional internal controls and written procedures for departments.
What the auditor recommended: County Auditor Constance (presenting the auditor’s office findings) summarized industry guidance saying electronic payments reduce risks tied to lost or stolen paper checks and streamline reconciliation, but only when stringent internal controls, supplier‑setup procedures and staff training are in place. The auditor cited recent industry data presented in a payments‑fraud webinar and recommended a countywide written ACH payment policy, mandatory training on social‑engineering risks and a single‑point approval requirement for supplier bank‑account changes.
Court action and rationale: Commissioners voted 4–1 to return to full use of electronic payments for vendors but directed the auditor’s office to enforce new controls: supplier setup and change requests must be approved at the auditor or first‑assistant level; staff must complete cybersecurity and payments training; and departments with off‑system accounts must adopt matching controls before resuming EFTs. Commissioner Morris recorded a sustained opposition, citing liability differences between check fraud and erroneous wires and urging further review of insurance and bank liability.
Context and follow up: Constance said the employees who were responsible for the county’s prior phishing loss are no longer with the county; she said the office has implemented written procedures for accounts payable and required staff signoffs. Commissioners asked for additional briefings about the county’s cyber‑insurance coverage and how it would respond to future fraud events; staff said they would report back with details and coordinate training and implementation timelines.
Ending: The court restored electronic payments with new controls and ordered the auditor’s office to distribute a required supplier‑setup checklist, staff training schedule and a countywide ACH policy for formal adoption and compliance monitoring.
