Automated Clearing House (ACH)
Assure that the entry, verification, and release to CAPS is handled appropriately.
Is there a segregation of duties between initiation and data entry of ACH
Are ACH data entry employees familiar with procedures so as to recognize any
potential problems? Are written procedures readily available to employees who
process new account and who handle ACH payments, etc.?
3. What are the access security measures for data entry?
Does the computer system verify each element entered?
Are there hardcopy forms that must be retained for ACH transfers? If so, what
are the procedures?
Is customer verification necessary? If so, how is this obtained?
Is a customer notified of the transaction outside of the ACH transmission (e.g.,
Do we originate a Notification of Change (NOC) if corrections are required?
Is the ACH payment information retained for an adequate period of time to
support the NOC function?
10. Are ACH items ever returned? If so, are they in a suspense or hold account?
How are those accounts processed?
11. How can we assure that all requirements/features of our associated banks have
been divulged and implemented?
12. Does the system automatically control non-repetitive transfers and assure there
are two distinct individuals involved with their release?
13. What is to prevent Analyst #1 from having Analyst #2 release a transaction
without Manager approval?
14. What are the verification steps taken by Analyst #2?