Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Payments topic
No spam. Unsubscribe anytime.
Board adopts ordinance allowing electronic vendor payments and ACH safeguards
Summary
Hot Springs adopted Ordinance O-26-27 to authorize an electronic funds payment (ACH) system for vendor payments, with staff outlining vendor verification steps and positive-pay bank controls; the measure passed unanimously.
The Hot Springs City Board of Directors unanimously adopted Ordinance O-26-27 on June 16 to establish an electronic funds payment system for vendor payments, aligning local policy with Arkansas Code Annotated §14-59-105.
Finance Director Karen Scott told the board the city currently has about 1,725 active vendors and roughly 675 (about 39%) already set up for automated-clearing-house (ACH) payments. Scott said the ordinance enables an EFT payment option but does not compel vendors to accept ACH; vendors may still receive traditional checks.
Directors asked staff about security and vendor setup. Scott said the city elected not to post the vendor setup form online to reduce fraud risk and that staff use positive-pay bank features and direct vendor verification (phone contact by purchasing staff) before enabling ACH. Director Karen Garcia, who reported a recent personal bank fraud, praised the added safeguards.
The ordinance includes an administrative policy with written procedures for internal accounting controls and audit documentation. The board adopted the ordinance by voice vote.
Next steps: Finance will implement administrative procedures and continue vendor outreach; vendors wishing to receive ACH will be asked to provide bank details through a secure, staff-verified process.
