Accounts Payable -going paperless An overview of the accounts payable process and converting to a paperless system

Transcription

1 Accounts Payable -going paperless An overview of the accounts payable process and converting to a paperless system WPTA Conference, April 13 th, 2017 Philip Steffen

2 Outline Records retention requirements Scanning Process Electronic payments Internal Controls Purchase Cards

3 City of Anacortes Story Motivated to have electronic access Internal use Auditor use System configuration Departmental implementation Meetings Instructions Equipment

4 Records Retention Compliance WA state requires 300dpi for some documents, recommended for all Lossless format required for documents with longer than 6 year retention schedule Lossless PDF Information RCW (3) "Electronic document" means a document that is received by the recording officer in an electronic form. WAC Scanning density

5 WA State Archives, Scan & Toss Only Non-Archival records are eligible Documents that can be destroyed at some point Complete and Accurate copies Quality Control procedures implemented Chocolate cake smudge? Keep the original Images must be accessible and protected Maintain ability to view records and file formats Backup of data Scan and Toss information from WA State Archives

6 Scan & Toss Use a simple test before tossing documents If you answered YES to each of the three items on the Checklist the original record(s) can be recycled.

7 Scanning Process Review current entity process Discuss with departments and personnel involved Establish procedures Records retention in mind Implement Know there will be adjustments to the process you thought was best Equipment Large and small scanners

8 Brother ADS-1500W

9 Large printer

10 Scanner Equipment OCR Capable Speed Input of file name prior to scanning Duplex scanning

11 Electronic Invoices Get invoices directly from vendors Sign up for online statements One Multiple s

12 Electronic Payments ACH The money is pulled from entity account The money is pushed to the vendor account Benefits No need to mail checks Money is cleared (no stale dated checks in the future) Faster for vendor to receive funds Drawbacks Liability of having vendors bank information

13 Electronic Payments Security Setting up a Vendor Tightly Control and coordinate the entire process Obtain proper documentation Written authorization is required in order to receive ACH payments Verify user at the vendor site is authorized Verify the bank information given For example, an individual at the vendor site might give personal bank information Encrypted communication

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15 Electronic Payments Security Create and maintain a secure computer environment Limit the use of online banking transactions to specific computers Require multiple layers of password security Actual payment process Dual control Extra bank control Token Identification Registered Computers Specific times

16 Source: 2016 AFP Payments Fraud Report

17 Internal Controls Process Development of user profiles, which enforce separation of duties Multiple approval processes should occur before disbursement of funds Dollar limitations Timely review of exceptions Frequent monitoring of cleared banking transactions to catch unauthorized transactions

18 Worth It Paying vendors via ACH and EFT can be a tremendous cost saving benefit for a nonprofit organization. The key to a successful EFT and ACH process is to make sure the proper controls are in place from start to finish. Protect your organization from being a victim of fraud.

19 Purchase Cards US Bank provides purchase cards Transactions are downloaded into accounting system Automatically paid via ACH to US Bank

20 Questions and Discussion

21 Contact Philip Steffen City of Anacortes Uses Tyler Technologies Eden software