Loading...
HomeMy WebLinkAboutRes2006-067 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A SINGLE ELECTRONIC SIGNATORY FOR ELECTRONIC BANKING TRANSACTIONS WITH THE STATE OF ALASKA AND OTHER GOVERNMENT ENTITIES WHEREAS, the Seward City Council and City administration have heretofore required two signatures to appear on all checks, drafts, notes or orders drawn against the City of Seward's bank accounts, including dual electronic endorsements of electronic funds transfers, in order to ensure internal control and to safeguard public funds; and WHEREAS, the City of Seward is required by the State of Alaska to utilize various State electronic payment mechanisms such as ACH and myAlaska, in order to make payments to the Department of Motor Vehicles, Public Employees Retirement System, etc., and these payment systems require only one individual to electronically release funds from the City's Bank accounts, and provide no mechanism by which further security features can be required; and WHEREAS, the City has been notified by the State of Alaska Department of Administration that failure to utilize the specific programs required by the State of Alaska will subject the City to revocation of the City's contract to provide DMV motor vehicles services in Seward, which is a service that has been provided by the City on behalf of the State of Alaska for decades, and is a highly valued service to the community; and WHEREAS, the City administration will continue to require two written signatures to authorize an electronic transfer, prior to one individual being given the authorization to release funds from the City's bank accounts, in order to maintain internal controls. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City will require two City officials authorized to release funds from the City's bank accounts to affix their signature to documents approving the electronic release of funds from the City's bank accounts, but only one individual is required to electronically authorize the transfer of funds to the State of Alaska or other governmental entities, when those entities require electronic forms of payments. \\tU'~ftlll',~ ,:,\......~ "JO iJ."' i:~~'<J. :"l'C:"'.:e~ '#~ .. .A......~~\ :Jftv/}j....U; ~ ;- ...-tJ -. c>' _'~ -o-,.~ .. : . .... .. . rT'\.-Tr.'TS :... :0: -.1Va : = .". ~ . .... .... ----.Ji::.. ;. \O~ D~"':: <:, O;:...~...bt!d. O~?...,.Y)"s. Al~J) ..,~ \Y~". ......~.. .....'YW~ "'.,.. ~-~~y. ::",(*',.10' --.' tijl'..~ _ L'-<O ,:;J'; \,..\. S'II",.,;,\\ ~l~IJ l~J J ~ 'S~M~1 ~I )\ :1.S31.1.V ~UON SEWOlJ.L ~uoN l~JElJS 'UOSmpm8: 'l~JElJ:lS 'ZU~101 'EnEPIEA 'WElJUna :N1V.LSS:V :.LNtIS8:V :StION :StIAV WW '.IOlJ8QS 8J08A ?/w;t V)lSV'IV '<mV M.3S .!IO AU;) 301. "900Z '~unI JO AEP lJlZ I S~lJl 'E~SEIV 'pmM~S JO Al~J ~lJl JO H:lunoJ AlD ~lJl Aq <I3AOHddV <INV <I3SSV d 'UOndOpE Sl! uodn APlE~P~WW~ p~JP ~~lIlElJs uonnlos~l s~lJ.L 'Z OO!JJOlS VS)IV'IV '<mV M.3S .!IO A1.I;) L9-900Z NOI1.il'IOSIDI Council Agenda Statement Meeting Date: June 12, 2006 Through: Clark Corbridge, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Single Electronic Signature Authorized for Banking Transactions with Governmental Entities BACKGROUND & JUSTIFICATION: The City has previously required two signatures to appear on all checks, drafts, notes or orders drawn against the City’s bank accounts. With the advent of electronic banking, the City has also required dual electronic endorsements of electronic funds transfers, in order to ensure internal control and to safeguard public funds. In the past few months, the State of Alaska Division of Motor Vehicles notified the City that it would be required to pay DMV fees to the State daily, utilizing a program called myAlaska. Unfortunately, this payment mechanism, and others utilized by the State of Alaska and other governmental agencies, have limited security controls, and enable one individual to transfer funds electronically. These systems are less secure than the City’s current practice of requiring two electronic signatures before funds can be released from the City’s accounts. The State Department of Treasury was willing to work with the City to accept payment in any one of a variety of ways. However, the Department of Administration, as well as the Governor’s Office, was unwilling to work with the City to respect our need for a higher level of control of public funds. The State informed us that if we were unwilling to utilize the myAlaska system, our contract to provide DMV services in Seward would be terminated effective July 1, 2006. The Seward City Council was notified of this matter at its meeting of May 22, 2006, and directed the City administration to forward a resolution authorizing a single person to initiate electronic banking transactions, so that the City’s DMV contract would not be in jeopardy. The administration intends to work to resolve this matter with future State administrations, to provide a higher level of safeguarding of public funds. In the meantime, rather than to give the State a justification for terminating our contract, we have no choice but to concede to their single methodology for payment. The City of Seward has provided motor vehicle services to the Seward community for decades, and we believe this is a highly valued service. Therefore, the administration will continue to require two written signatures to authorize an electronic transfer, prior to one individual being given the authorization to release funds from the City’s bank accounts, in order to maintain internal controls. FISCAL NOTE: The new contract requires daily payments to the State of Alaska which adds more work for the finance department staff, but is not expected to result in added bank transaction fees. Approved by Finance Department: ___________________________ RECOMMENDATION: Recommend City Council approve Resolution 2006-, authorizing a single electronic signature as sufficient for transferring funds electronically from the City to governmental entities.