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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

Going Paperless with Accounts Payable - WPTA … presentations/Going...Accounts Payable -going paperless An overview of the accounts payable process and converting to a paperless system

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  • Accounts Payable

    -going paperlessAn overview of the accounts payable process

    and converting to a paperless system

    WPTA Conference, April 13th, 2017

    Philip Steffen

  • Outline

    �Records retention requirements

    �Scanning Process

    �Electronic payments

    � Internal Controls

    �Purchase Cards

  • City of Anacortes’ Story

    � Motivated to have electronic access

    � Internal use

    � Auditor use

    � System configuration

    � Departmental implementation

    � Meetings

    � Instructions

    � Equipment

  • 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 65.24.101

    � (3) "Electronic document" means a document that is received by the recording officer in an electronic form.

    � WAC 434-663-305

    � Scanning density

  • 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� https://www.sos.wa.gov/archives/RecordsManagement/scanning-and-tossing-records.aspx

  • 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.

  • 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


    � Equipment

    � Large and small scanners

  • Brother ADS-1500W

  • Large printer

  • Scanner Equipment

    � OCR Capable

    � Speed

    � Input of file name prior to scanning

    � Duplex scanning

  • Electronic Invoices

    �Get invoices directly from vendors

    �Sign up for online statements

    �One email

    �Multiple emails

  • 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

  • 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

  • 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

  • Source: 2016 AFP Payments Fraud Report

  • 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


  • 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.

  • Purchase Cards

    � US Bank provides purchase cards

    � Transactions are downloaded into accounting system

    � Automatically paid via ACH to US Bank

  • Questions and Discussion

  • Contact

    � Philip Steffen

    � City of Anacortes – Uses Tyler Technologies Eden software

    [email protected]

    � 360-293-1903