A local unit shall not be a party to an ACH arrangement unless the governing body of the local unit has adopted a resolution to authorize electronic transactions and the treasurer or the ETO of the local unit has presented a written ACH policy to the governing body. The ACH policy shall include all of the following:
    (a) That an officer or employee designated by the treasurer or ETO is responsible for the local unit’s ACH agreements, including payment approval, accounting, reporting, and generally for overseeing compliance with the ACH policy.
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Terms Used In Michigan Laws 124.303

  • ACH: means a national and governmental organization that has authority to process electronic payments, including, but not limited to, the national automated clearing house association and the federal reserve system. See Michigan Laws 124.301
  • ACH arrangement: means the agreement between the originator of the ACH transaction and the receiver of the ACH transaction. See Michigan Laws 124.301
  • ACH policy: means the procedures and internal controls as determined under a written policy developed and adopted by the treasurer or the electronic transactions officer of a local unit under section 3. See Michigan Laws 124.301
  • ETO: means the person designated under this act by charter or by the governing body in a local unit other than a township or county. See Michigan Laws 124.301
  • Governing body: means any of the following:
    (i) The council, commission, or other entity vested with the legislative power of a city or village. See Michigan Laws 124.301
  • Local unit: means any of the following:
    •     (i) A village. See Michigan Laws 124.301
  • Treasurer: means the elected treasurer in a township or county. See Michigan Laws 124.301
    •     (b) That the officer or employee responsible for disbursement of funds shall submit to the local unit documentation detailing the goods or services purchased, the cost of the goods or services, the date of the payment, and the department levels serviced by payment. This report can be contained in the electronic general ledger software system of the local unit or in a separate report to the governing body of the local unit.
        (c) A system of internal accounting controls to monitor the use of ACH transactions made by the local unit.
        (d) The approval of ACH invoices before payment.
        (e) Any other matters the treasurer or ETO considers necessary.
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