A2512 REDLINED 021319.PDF

MARICOPA COUNTY INTERNAL POLICY
Policy Number: A2512
Policy Title:
Current Adoption 10-19-201102-13-
ELECTRONIC FUNDS TRANSFER (EFT) Date: 2019
Current 10-19-201102-13-
Implementation Date: 2019
Board Agenda C-18-192-004014-6-
Approved by: Number: 00
BOARD OF SUPERVISORS Original Adoption
Date: 10-19-2011
A. PurposeI. PURPOSE
The purpose of the Maricopa County Electronic Funds Transfer (EFT) Policy is tTo establish procedures and
overall responsibilities regarding the appropriate usage of EFT payments made outside of the County’s
Financial (Accounting) system which may include provide guidelines to County Departments and Special
Districts including the Flood Control District, Library District, and Stadium District for the appropriate usage
of Automated Clearing House (ACH) or direct Wire Transfers. It is the County’s policy to limit the use of EFT
payments whenever possible,. Payments except where such payments are made through the County’s
Financial (Accounting) System are referred to as (Accounts Payable EFTs and are the preferred method.T).
Other than ACH or Wire Transfers, the only other means of County disbursement is by warrant.
Arizona Revised Statute (ARS) §11-493.4 requires the Maricopa County Treasurer’s Office
(Treasurer’s Office) to disburse County money: 1) by warrant that is issued by the County Board of
Supervisors and that is signed by the chairman and the clerk of the board, 2) by electronic transfer
with written authorization from a person designated by the governing board, or 3) as provided by
law. This policy defines EFTs and it establishes procedures and overall responsibilities to be
followed by Departments and District(s) when using EFTs outside the County’s Financial
(Accounting) System.
Department directors and administrators are responsible for ensuring all personnel are aware of
and comply with the requirements of this policy.
II. AUTHORITY
Arizona Revised Statute §11-493.4 requires the County Treasurer’s Office (Treasurer’s Office) to disburse
County money: 1) by warrant that is issued by the County Board of Supervisors and that is signed by the
chairman and the clerk of the board, 2) by electronic transfer with written authorization from a person
designated by the governing board, or 3) as provided by law.
III. APPLICATION
This Policy applies to all Maricopa County appointed departments as well as the Flood Control District
of Maricopa County, the Maricopa County Library District, and the Maricopa County Stadium District
(Special Districts). The Board of Supervisors is authorized to jointly adopt policies applying to the Special
Districts under the Intergovernmental Agreement, C-06-18-393-6-00, approved on April 11, 2018.
II. This policy also applies to employees of County elected and judicial branch offices unless the elected official
has implemented a similar policy specific to his or her office.
B. IV. DefinitionsDEFINITIONS

Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
A. Accounts Payable EFT: A method of payment (see D below) which serves as an alternative to the
issuance of a warrant and which is processed by the Department of Finance, Accounts Payable Division,
in much the same manner as a warrant.
B. Automated Clearing House (ACH) – a A method of EFT from the County (entity) to another entity (such
as a vendor, bank or other government agency). ACH transactions require 24-48 hours advance notice
but are less costly to process than wire transfers. ACH payments to vendors for goods or services can
be are initiated by Departments the Department of Finance through the County’s Financial (Accounting)
System or can be processed directly by the Treasurer’s Office. All other ACH transfers are processed
by the Treasurer’s Office. ACH is the preferred method of payment for all EFT payments requested by
County Departments as they are the least costly. ACH payments are assigned a settlement date,
therefore, they can be initiated in advance of a specific pay date. For internal control purposes, County
dual control procedures are required to initiate an ACH payment.
C. Department – For the purpose of this policy, “Department” refers to any division of the County including
elected and judicial branch offices and Special Districts.the department, office, or agency under
budgetary responsibility and oversight of the Maricopa County Board of Supervisors or other Elected
Official as well as the Maricopa County Special District(s) Board of Directors. Special Districts include
the Flood Control District, Library District, and Stadium District.
D. Electronic Funds Transfer (EFT) –T is the electronic exchange or transfer of money from one bank
account to another, either within the same bank or different banks. There are various and different types
of EFTs, but for purposes of this policy, EFTs will refer to electronic transfer of funds by ACH or Wire
Transfer.
E. Journal Voucher (JV): An internal County document used to process and record transactions in the
County’s Financial (Accounting) System. The JV contains vital accounting string codes which are used
to post to specific Funds, Departments, Units, Activities, Balance Sheet Accounts and/or
Revenue/Expense object codes as indicated on the document.
Fund – a fiscal and accounting entity with a self-balancing set of accounts segregated for the purpose of carrying out
specific activities or obtaining certain objectives in accordance with regulations, restrictions, or limitations.
F. Wire Transfer – Aa method of EFT from the County (entity) to another entity (such as a vendor, bank,
or other government agency). A wire transfer is made from one bank account to another bank account,
either within the same bank or different banks. Wire transfers are processed by the Maricopa County
Treasurer’s Office when same day credit of funds are required. Wire transfers are the quickest but and
most costly method of money movement. For internal control purposes, County dual control procedures
are required to initiate a wire transfer.
C.A. Background
Under normal circumstances, expenditures should be paid by using the County’s Financial (Accounting)
System thereby recording the transaction(s) directly to the general ledger. Such payments are made by
Accounts Payable EFT or warrant, depending upon vendor registration selections. Utilizing the Financial
(Accounting) System is the preferred method of recording transactions as this facilitates:
1. Automatic tracking and reporting of transactions, as further defined below,
2. Auditing of transactions by internal and external auditors,
3. Uses existing and established internal controls over the accounts payable process, and
4. Provides a greater level of transparency.
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Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
Financial (Accounting) System – automatic tracking and reporting of transactions include, but are not limited
to:
1. Grant expenditure transactions are tracked for Federal and State grant reporting purposes including the
annual reporting under the Schedule of Expenditures for Federal Awards (SEFA).
2. Capital expenditure transactions are tracked for Construction in Progress and the Capitalization of
Capital Facilities and Capital Projects.
3. Contractual expenditures are tracked to ensure compliance with the contract award.
4. Facilitates the request for public record requests as the transactions and supporting documentation are
posted to the Financial (Accounting) System and imaged in OnBase.
5. Transactions posted to the Financial (Accounting) System ensure proper annual reporting of IRS Form
1099 (Misc. Income), as applicable.
EFTs processed by the Treasurer’s Office, as opposed to those processed through the County’s Financial
(Accounting) System, are posted by Departments to the Financial (Accounting) System by Journal Voucher
(JV) which may not capture all the information as required above.
V. POLICY
A. Accounts Payable EFTs are the County’s preferred method for processing EFT payments as they utilize
the County’s Financial (Accounting) System to record the transaction(s) directly to the County’s general
ledger. Such payments are easily processed by the Department of Finance, Accounts Payable Division,
so long as the vendor registration is properly established in the accounting system. Accounts Payable
EFTs facilitate:
1. The auditing of transactions by internal and external auditors,
2. The use of existing/established internal controls over the accounts payable process,
3. A greater level of transparency, and
4. Automatic tracking and reporting of transactions, such as:
a. Tracking of grant expenditure transactions for Federal and State grant reporting purposes
including the annual reporting under the Schedule of Expenditures for Federal Awards (SEFA).
b. Tracking of capital expenditure transactions for Construction in Progress and the capitalization
of Capital Facilities and Capital Projects.
c. Tracking of contractual expenditures to ensure compliance with contract awards.
d. Easier management of public record requests as the transactions and supporting documentation
are posted to the Financial (Accounting) System and imaged in the system.
e. Proper annual reporting of IRS Form 1099 (Misc. Income), when applicable.
B. By contrast, EFT payment requests processed directly through the Treasurer’s Office are not
automatically recorded in the County’s Financial (Accounting) System and require the processing of a
separate journal voucher in order for the transaction to be properly reflected in the general ledger.
Therefore, when choosing to process an EFT payment directly through the Treasurer’s Office,
Departments should bear in mind that these transactions should:
1. be infrequent in nature,
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Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
2. require immediate and/or guaranteed funds,
3. and generally carry a negative consequence if payment is not made by a certain date.
C. Examples of some EFT transactions which may be processed directly by the Treasurer’s Office include,
but are not limited to, the following:
1. Debt service payments for long-term obligations.
2. Payments to escrow agent/title company for the purchase of real property.
3. Payments requiring same-day settlement.
D. When requesting EFTs directly through the Treasurer’s Office, Departments must:
1. Obtain Board of Supervisors’ (Board) authorization and approval to initiate and request EFT
payments from the Treasurer’s Office on an annual basis. This is achieved by submitting a Board
Agenda item which, at minimum, must contain the following information:
a. A formal request for approval and a description of the purpose(s) and frequency of the EFTs,
b. The annual dollar amount(s) or range(s) (if the exact amount is unknown) of the EFTs,
c. Identification of the individuals who are authorized by the Department to initiate Treasurer’s
Office EFTs. Authorized individuals may include the Director, Deputy Director, Manager, or other
individuals deemed to have the capacity to authorize the transaction, and
d. The number of authorized individuals needed to initiate or approve the Department’s EFT
request. At a minimum, two authorized individuals are required.
2. Upon receipt of Board approval, submit the following to the Treasurer’s Office (items may be scanned
and sent via email to wire.transfer@mail.maricopa.gov):
a. Board agenda item approving and authorizing the Department and individuals initiating EFTs,
b. An original document prepared on Department letterhead requesting the EFT and signed by the
authorized individuals and including the following information:
i. Department responsible for the expenditure, vendor invoice, statement, support, etc.
indicating the amount and due date and
ii. EFT instructions necessary to process the transaction. (i.e., bank account information, etc.)
c. If the items mentioned in 2a and 2b are not properly approved and complete, the Treasurer
reserves the right to deny EFT payment. Additionally, the Treasurer’s Office requires 24-hour
advance notice for processing of EFT wire payments.
3. Upon completion of EFT payment, Departments must prepare and process a corresponding journal
voucher (JV) to recognize the transaction in the County’s Financial (Accounting) System. The JV
must be processed in the same accounting period as the EFT. It is critical that accurate and complete
information be provided within the JV document to ensure that tracking and reporting processes are
not compromised.
D. Guidelines
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Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
Maricopa County and Maricopa County Special District(s) will record transactions in the County’s Financial
(Accounting) System, as appropriate.
It is recognized that some transactions are more appropriately paid for by Treasurer’s Office EFT which may include,
but are not limited to:
1. Debt service payments for long-term debt obligations,
2. Payments to escrow agent/title company for the purchase of real property, and
3. Other transfers that are deemed necessary. For example, payment amounts requiring same day settlement and
for which the amount or timing is not known in advance to process through the accounts payable ACH
transactions. The Maricopa County Treasurer’s Office will 24-hour advance notice to process an EFT wire
payment. Please consider all other methods of payments available when making this decision.
These transactions are infrequent in nature, require immediate and/or guaranteed funds, and generally have a
negative consequence if payment is not made timely.
Departments requesting Treasurer’s Office EFTs will need to perform the following:
1. Annually, Departments must submit a Board Agenda item to obtain Board of Supervisors authorization and
approval to initiate and request EFT payments from the Treasurer’s Office. The Board Agenda item, at minimum,
must contain the following:
a. Request Board authorization and approval to initiate Treasurer’s Office EFTs,
b. Describe the purpose(s) and frequency of the EFTs,
c. Provide the annual dollar amount(s) or range(s) (if the exact amount is unknown) for the EFTs,
d. Identify individuals who are authorized by the Department Director or Elected Official to initiate
Treasurer’s Office EFTs. Authorized individuals may include the Director, Deputy Director, Manager, or
other individuals deemed to be in the capacity to authorize the transaction, and
e. Identify the number of authorized individuals needed to initiate or approve the departmental Treasurer’s
Office EFT. At least two authorizing individuals are required to approve these requests.
2. Submit to the Treasurer’s Office:
a. Agenda item approving and authorizing the department and individuals initiating EFTs,
b. An original document prepared on Department letterhead requesting the EFT and signed by the
authorized individual(s),
i. Departmental/County/other Fund responsible for the expenditure,
ii. Vendor invoice, statement, support, etc. indicating the amount and payment due date, and
iii. EFT instructions necessary to process the transaction.
3. Treasurer’s Office reserves the right to not process payment by Treasurer’s Office EFT if the submitted request is
not sufficiently approved and complete.
4. Approved Treasurer’s Office EFT documents from item number 2 may be scanned and sent to the Treasurer’s
Office email wire.transfer@mail.maricopa.gov.
5. Department will prepare a corresponding Journal Voucher (JV) to recognize the EFT transaction on the County’s
Financial (Accounting) System. The JV should be processed in the same accounting period as the EFT.
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Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
Example of Agenda Item Language - the following examples are for reference only and not considered part of the
Electronic Fund Policy. As such, the example of agenda item language may be periodically updated without Board
approval.
VI. EXAMPLES
THE FOLLOWING EXAMPLES ARE FOR REFERENCE ONLY AND NOT CONSIDERED PART OF THE
EFT POLICY. AS SUCH, THE EXAMPLE OF AGENDA ITEM LANGUAGE MAY BE PERIODICALLY
UPDATED WITHOUT BOARD APPROVAL.
A. Example of Annual Board Agenda Item for Frequent EFT Requests
Pursuant to Electronic Fund Transfer Policy (A2512Policy Number), the <insert (Department Name)> is
requesting authorization to have the Treasurer’s Office process Electronic Funds Transfers for the annual
Debt Service payments due to the Trustee in the amount of $XX10 million in Fiscal Year 20XX. The payments
have been budgeted. The debt service payments are typically due on January 1st and July 1st of each fiscal
year. <insert Department name> request for authorization to the Treasurer’s Office will come from the Chief
Financial Officer, <insert authorized personnel>(insert name), and the Deputy Finance Director, <insert
authorized personnel>(insert name). Debt Service payments require guaranteed funds. The Department
will prepare a corresponding journal voucher to record the EFT transaction on the County’s Financial
(Accounting) System in the same accounting period as the EFT.
The Board Action may require additional information depending upon the action being requested.
B. Example of Board Agenda Item for a Single/One-time EFT Request
Pursuant to Electronic Fund Transfer Policy (A251Policy Number), the <insert Department
name>(Department Name) is requesting authorization to have the Treasurer’s Office process an Electronic
Funds Transfer for $XX10 million as an escrow payment to the trustee for the purchase of real property
<(insert description>). The payment has been budgeted. It is anticipated that the escrow payment will be
paid in December 20XX. Departmental request for authorization to the Treasurer’s Office will come from the
Chief Financial Officer, <insert authorized personnel>(insert name), and the Deputy Finance Director, <insert
authorized personnel>(insert name). Escrow agent requires guaranteed funds. The Department will prepare
a corresponding journal voucher to record the EFT transaction on the County’s Financial (Accounting)
System in the same accounting period as the EFT.
C. The Board Action may require additional information depending upon the action being requested.
D. Example of Departmental Letter Requesting a Treasurer’s Office ACH/Wire Transfer
Letter to be put on Departmental Letterhead
DATE: December XX, 20XX
TO: Maricopa County Treasurer - <insert name of personnel responsible>
FROM: <Department Authorized Individual(s) as approved by the Board of Supervisors>
SUBJECT: Request for ACH/Wire Transfer (Department to indicate transaction type)
Per the attached Board approved agenda, I am requesting that you process an (ACH/Wire Transfer)
payment for $XX,XXX.XX due on (date required). The payment is for (identify purpose of payment). Also
attached is the (invoice, statement, letter or other form of communication) as support for the payment.
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Policy Title: Policy Number: A2512
ELECTRONIC FUNDS TRANSFER (EFT) Current Adoption 10-19-201102-13-
Date: 2019
Listed below are the EFT transfer instructions for the outgoing payment.
Name of Bank, Trust Agent, etc.
ABA #: (Bank Routing Number)
Account Name:
Account Number:
Reference/Description: used for tracking purposes
For accounting purposes, monies will come from Treasurer’s Fund 3X-XXX-000.
(Treasurer Fund represents the Fund in which the expenditure will be paid from)
Please call (Department Contact) at (602) 506-XXXX if you have any questions.
EFT Policy A2512 approved on October 19, 2011
C-18-12-014-6-00 Approval of EFT Policy A2512-Maricopa County
C-18-12-015-6-00 Approval of EFT Policy A2512-Flood Control District
C-18-12-016-6-00 Approval of EFT Policy A2512-Library District
C-18-12-017-6-00 Approval of EFT Policy A2512-Stadium District
Revision History
Version Revision Date Description of Revision
1 10/-19/-2011 Initial version. (C-18-12-014-6-00, C-18-12-015-6-00, C-18-12-016-6-00, C-
18-12-017-6-00)
2 02/13/2019 Review, update language, and cite authority. Update to current policy
formatting. (C-18-19-004-6-00)
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