§ 14-59-105 - Prenumbered checks -- Electronic funds transfers. - Arkansas Statutes

14-59-105. Prenumbered checks -- Electronic funds transfers.

(a) All disbursements of municipal funds, except those described in this section and as noted in 14-59-106, petty cash funds, are to be made by prenumbered checks drawn upon the bank account of that municipality.

(b) The checks shall be of the form normally provided by commercial banking institutions and shall contain as a minimum the following information:

(1) Date of issue;

(2) Check number;

(3) Payee;

(4) Amount both in numerical and written form; and

(5) Signature of authorized disbursing officer of the city.

(c) The municipality shall maintain printer's certificates as to the numerical sequence of checks printed.

(d) Disbursements of municipal funds used for payment of salaries and wages of municipal officials and employees may be made by electronic funds transfer provided that:

(1) The municipal employee or official responsible for such disbursements shall maintain a ledger containing at least the name, address, and social security number of the employee receiving payment of salary or wages; the routing number from the bank in which the funds are held; the account number and the accounts clearing house trace number pertaining to the transfer; the date and amount transferred and proof that the employee has been notified of direct deposit of his or her salary or wages by electronic funds transfer; and

(2) No such disbursement may be made by electronic funds transfer without written consent of the employee to whom direct deposit is made.

(e) A disbursement of municipal funds shall have adequate supporting documentation for the disbursement.