I recently received a brochure for a 2003 ACH Processing seminar by PBS. It refers to 2003 Audit and Examination Guidelines and expanded annual self-audit procedures. Does anyone know what this is referring to? The seminar doesn't come to my area until December and the audit must be completed before December 1. I use WG&L's Bank Internal Auditing Manual, but there have been no recent updates in the area of ACH audit.

Any assistance will be appreciated.

I attended their seminar about 10 days ago. The changes refer to the NACHA Rule changes that became effective March 14,2003. All the changes are covered in the NACHA Audit Workbook if you have it.

If you don't have the Self-Audit Survival Guide, the information is in the 2003 ACH Rules book starting on page OR 131.

Thank you. I will check out the 2003 rules book.

I have always been under the impression the ACH audit had to be performed yearly, prior to Dec. 1st.
However, I am reading ach compliance manual put out by nacha and it states the audit must be performed at least once every three years. Help, I'm confused (isn't the first time, won't be the last time).

I am using Appendix eight - rule compliance audit requirements. I am at Section 8.2 J - the part about we receive written statements under penalty of perjury from consumers for R07 and R10 returns. Here's the question...our form doesn't actaully say "under penalty of perjury" it goes more like "the debit transaction was not originiated with fraudulent intent by me or any person acting in concert with me". Is this sufficient or is there a sample form that I should emulate?

The reason NACHA changed the wording to "Written Statement Under Penalty of Perjury" is because the reference to "Affidavit" which had been used previously, caused some notarization issues in some states. Some states like the state I am in, require that any document that contains the word "Affidavit" must be notarized. So, NACHA came up with the WSUPP so this wouldn't be required. I don't think it is critical that your document contain these words exactly, but you may want to check to see if yours does still contain the word "affidavit" somewhere and whether your state requires it to be notarized.

The cleanest process of course, would be to revise your document to contain the WSUPP language.

None of our account disclosures mention UCC 4A. However our account agreement disclosure does state "we may offer preauthorized deposits or transfers from other accounts. You must authorize each direct deposit or preauthorized transfer by filling out a separte form." The forms are authorization agreements for preauthorized ach debits and ...ach credits. The forms are signed by customer, and lists all pertinent information regarding the debit or credit along with a statement the authorization is to remain in force until we have received written notification of its termination.
My question...Does this suffice for the UCC 4a or do we need something else. We don't originate, except for originating individual debits out (mortgage payments, insurance, etc.) and we are mainly consumer, very little business bank with us.

The NACHA Rules state what has to be included in your disclosure. I believe if you look in Appendix 8.2.K - UCC4A Compliance, it will tell you exactly what has to be included. There are three paragraphs total. 1. Provisional Payment disclosure, 2. Notice disclosure, and 3. Choice of law disclosure.

mackenzie- Thank you for your help. I am looking on page OR 133 of the 2003 ach rule book - that is where I am finding 8.2.k and all it says is ensure compliance with UCC Article 4A. That is the step that I am on and directed me to list my question above. Am I looking in the wrong place? Is there another 8.2.k that will give me the items you are talking about? Thank you very much for your help

I took that straight from my MPX audit workbook. Sheesh, sometimes the sections they cite do not match up with the audit requirement....hold on let me find it myself.

Guidelines
Section IV, Chapter I (Third-Party Service Providers)
UCC 4A
State law governing wholesale (i.e., corporate-to-corporate) ACH credit entries

Here you go. This is from the table of contents online.