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PAGE 9 ELECTRONIC FUNDS TRANSFERS State law (471.38 and 471.381) requires local units of government to adopt certain policies and procedures before electronic funds transfers are made. To pay vendor claims, many local government entities may use electronic funds transfers instead of checks. Electronic funds transfers may also be used to purchase and sell investments. Minnesota statutes state that a local government may make an electronic funds transfer for the following: 1. A claim for payment from an imprest payroll bank account or investment of excess money; 2. For a payment of tax or aid anticipation certificates; 3. For a payment of contributions to pension or retirement fund; 4. For vendor payments; and 5. For payment of bond principal, bond interest and fiscal agent service charges. The City of Arden Hills will make payments via electronic funds if the following policy controls are met: 1. The governing body shall annually delegate the authority to make electronic funds transfers to a designated business administrator or chief financial officer or the officer’s designee; 2. The disbursing bank shall keep on file a certified copy of the delegation of authority; 3. The initiator of the electronic transfer shall be identified; 4. The initiator shall document the request and obtain approval from the designated business administrator, or chief financial officer or the officer’s designee, before initiating the transfer; 5. Written confirmation of the transaction shall be made within one business day after the transaction to support the transaction; and 6. A list with all transactions made by electronic funds transfer shall be submitted to the governing body at its next regular meeting. The Finance Director shall be delegated authority to make electronic funds transfers. The Finance Director may delegate certain duties to appropriate staff, but shall remain responsible for the operation of the transfer program.