Prenumbered checks — Electronic funds transfers

  1. Law
  2. Arkansas Code
  3. Local Government
  4. Municipal Government
  5. Arkansas Municipal Accounting Law
  6. Prenumbered checks — Electronic funds transfers

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  1. (a) All disbursements of municipal funds, except those described in this section and as noted in § 14-59-106, petty cash funds, are to be made by prenumbered checks drawn upon the bank account of that municipality.

  2. (b) The checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:

    1. (1) Date of issue;

    2. (2) Check number;

    3. (3) Payee;

    4. (4) Amount; and

    5. (5) Signature of two (2) authorized disbursing officers of the city.

  3. (c) Disbursements of municipal funds used for payment of salaries and wages of municipal officials and employees may be made by electronic funds transfer provided that the municipal employee or official responsible for disbursements maintains a ledger containing at least the:

    1. (1) Name, address, and Social Security number of the employee receiving payment of salary or wages;

    2. (2) Routing number from the bank in which the funds are held;

    3. (3) Account number;

    4. (4) Accounts clearing house trace number pertaining to the transfer;

    5. (5) Date and amount transferred; and

    6. (6) Proof that the employee has been notified of direct deposit of his or her salary or wages by electronic funds transfer.

  4. (d) Disbursements of municipal funds used for payments to federal or state governmental entities may be made by electronic funds transfer.

  5. (e)

    1. (1) Disbursements of municipal funds, other than for payments under subsections (c) and (d) of this section, may be made by electronic funds transfer provided that:

      1. (A) The governing body of the municipality shall establish by ordinance an electronic funds payment system directly into payees' accounts in financial institutions in payment of any account allowed against the municipality;

      2. (B) For purposes of this subsection, municipalities opting for an electronic funds payment system shall establish written policies and procedures to ensure that the electronic funds payment system provides for internal accounting controls and documentation for audit and accounting purposes; and

      3. (C) Each electronic funds payment system established under this subsection shall comply with the information systems best practices approved by the Legislative Joint Auditing Committee before implementation by the municipality.

    2. (2) A single electronic funds payment may contain payments to multiple payees, appropriations, characters, or funds.

  6. (f) A disbursement of municipal funds shall have adequate supporting documentation for the disbursement.


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