Home Table of Contents

006.09.1 R1-19-4-407. Electronic Warrants

AR ADC 006.09.1 R1-19-4-407Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 09. Office of Accounting
Rule 1. Rules and Regulations of the Financial Management Guide
Ark. Admin. Code 006.09.1 R1-19-4-407
006.09.1 R1-19-4-407. Electronic Warrants
Overview
Electronic warrants must be formatted to comply with Automated Clearing House (ACH) requirements. Circumstances occasionally arise that require deletions or reversals from the ACH transmittal file after it is created by the Statewide accounting system. The difference between a reversal or deletion of an ACH item is determined based upon the timing of the request. If an ACH item has not been distributed to the Federal Reserve by the bank, the ACH item will be deleted. If an ACH item has been distributed to the Federal Reserve, it will be reversed if possible. ACH items are distributed to the Federal Reserve two (2) business days prior to the effective date if the bank has the item at that point. For example, if an ACH item is transmitted and the Request for Reversal/Deletion of an ACH Item form is faxed to the bank on Monday and the ACH item has an effective date of Thursday or later, the ACH item will be deleted. If an ACH item is transmitted and the Request for Reversal/Deletion of an ACH Item form is faxed to the bank on Monday and the ACH item has an effective date of Wednesday or earlier (but no earlier than five (5) business days prior), the ACH item will be reversed.
Deletions/reversals from an ACH file can only be processed by the Department of Finance and Administration - Office of Accounting (DFA-OA). In order to request a deletion/reversal of an ACH, the agency must properly complete the “Request for Reversal/Deletion of an ACH Item” form and submit the form via fax to DFA-OA. The “Request for Reversal/Deletion of an ACH item” form must be signed by two authorized agency personnel who are on file with DFA-OA as authorized personnel. Requests for deletion/reversal of an ACH item must be processed immediately following knowledge of an error.
Please Note: To comply with National Automated Clearing House Association (NACHA) Rules, the Reversal/Deletion Request must be received by the bank in time to be processed within five (5) business days of the original entry settlement date. (The cutoff time is 5:00 PM CST on the 5th business day after settlement.)
After two DFA-OA authorized personnel review and sign their approval to the “Request for Reversal/Deletion of an ACH item” form, DFA-OA will contact the bank and submit a formal request for a reversal/deletion of an ACH item. Pending bank approval, the monies will be returned to the Vendor ACH Return Account, the Payroll ACH Return Account or the Income Tax ACH Return Account.
If the monies are returned to the Vendor ACH Return Account, the requesting agency will be notified by DFA-OA and issued a check from the Vendor ACH Return Account to be processed as a refund to expenditure to the fund, fund center, commitment item, wbs element and/or internal order of original issuance.
If the monies are returned to the Payroll ACH Return Account, a check will be issued to the Payroll paying fund and deposited into the Treasurer of State's office.
If the monies are returned to the Income Tax ACH Return Account, a check will be issued to DFA-Revenue-Individual Income Tax and deposited into the Treasurer of State's office as a refund to expenditure.
Changes to the file after it is sent to the bank
The purpose of this process is to delete or reverse an ACH item once the file has reached the bank. This must be done within five (5) working days of the settlement or pay date of the deposit.
The requesting agency must complete the “Request for Reversal/Deletion of an ACH item” form and submit via FAX to the DFA-OA. Two persons from the approved agency personnel list must sign the request form prior to submission to the DFA-OA.
DFA staff will approve the request for submission to the bank. Designated Office of Accounting staff will fax the official “ACH Reversal/Deletion Request” form to the bank for processing.
Deletion of an item is possible if done prior to 5 PM on the day of transmittal of the ACH file by the Auditor of State. If an item is deleted, it will not be presented for reimbursement to the Treasurer of State, and Bank of America will return no money to the State. Cancellation of the electronic “warrant” will be necessary. No further payments should be issued until the DFA - Office of Accounting confirms the reversal.
Reversal of an item is at the discretion of the receiving bank. If the reversal is honored, money will be returned to the Treasurer of State's bank settlement account and subsequently transferred to either the Vendor ACH Return Account or the Payroll ACH Return Account. At that point a check will be written to reimburse the agency for the funds or the Payroll Paying Account and deposited as a refund to expenditure, either current or prior year.
Current with amendments received through January 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.09.1 R1-19-4-407, AR ADC 006.09.1 R1-19-4-407
End of Document