Clallam County finance staff propose electronic funds transfer policy ahead of ERP rollout

Staff presented a new Electronic Funds Transfer policy designed to formalize internal controls, account verification and segregation of duties for initiating and receiving electronic payments. The policy was described as a response to the state auditor’s recommendations and to recent NACHA (ACH) rule updates that create additional verification requirements.

Finance and treasury staff said the policy would allow the county to offer electronic vendor payments, payroll EFTs and incoming electronic receipts while preserving existing AP processes and reducing dependence on paper checks. They described a planned vendor portal and account‑verification steps to reduce fraud and payroll rejects and said the county’s new ERP rollout will streamline workflows and approvals between the auditor’s office, treasurer and department requestors.

Commissioners asked about the types of transactions covered and whether adopting EFT would reduce credit‑card payments. Staff said EFT will support payroll and vendor payments and incoming receipts but may not replace immediate credit‑card purchases without additional workflow changes; the ERP is expected to help make the process seamless in a future state. Finance staff recommended a biennial policy review and noted that sample language was vetted against other counties’ policies and the state auditor’s 2023 recommendations (BARS manual references). The board directed that the item be placed on the next regular agenda for formal consideration.