4.2 ERMUSR 01-12-2021 - Laserfiche WebLink

Home Browse Search

UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Theresa Slominski –General Manager MEETING DATE:AGENDA ITEMNUMBER: January 12, 2021 4.2 SUBJECT: Electronic Funds Transfer Policy ACTION REQUESTED: Delegate and authorize the Finance Manager to make electronic funds transfers of Elk River Municipal Utilities. BACKGROUND: On August 8, 2017, the Commission adopted Governance Policy G.4i Financial Condition and Transactions. The policy states that the “General Manager (GM) shall not allow financial transactions to occur outside of the boundaries established by other applicable provisions of the Commission’s governance policies.” The policy specifically states in item 11 that the GM shall “implement internal policies and procedures that comply and ensure timely accounting and reporting of financial condition and transactions in accordance with legal or regulatory requirements, and generally accepted industry practices.” At the recommendation of our auditors, we are implementing an Electronic Funds Transfer (EFT) management policy to comply with Minnesota Statutes 471.38, Subd 3 and 3a. There is no explicit portion that states a formal written policy is required, however due to the State’s emphasis on it, the auditors recommend a formal written policy. The Statutes are attached for reference. DISCUSSION: Minnesota Statute 471.38, Subd3 defines what an EFT is and what a local government may make an EFT for. Additionally, Minnesota Statute 471.38 Subd 3a lists the policy controls that a local government must have in place to transact EFTs. Elk River Municipal Utilities (ERMU)has all of these required controls through our signature cards on file with our bank, authorization controls within our accounting system, and documentation provided monthly in the commission packet. The one formality we do not have in place is an annual delegation of authority (discussed below) and we are remedying that. The attached policy A.27 references the state statute and the fact that our policies and procedures are compliant. Minnesota Statute 471.38, Subd 3a sets forth the requirements for processing EFTs and it is necessary for the Utilities Commission to annually delegate and authorize a designated business administrator or chief financial officer or the officer’s designee to make these transactions. We are asking for this official delegation now with the implementation of the new policy, and in the ______________________________________________________________________________ Page 1 of 2 67