Whether your audit has not taken place yet this year, or you are already preparing for 2025, ePayAdvisors wants to ensure a seamless process by informing you of the essential documents and information needed, potentially saving you time and resources.
Here are some things to keep in mind as you prepare for your organization's ACH audit:
Your audit reports for the last six years
We will be verifying:
• That your annual audits have been performed;
• That you have been adhering to the 6-year record retention requirement for your audit reports; and
• That you have remedied any findings from previous audits
Samples of records of entries going back six years
Maintaining records is a cornerstone of compliance. We will verify that records of entries, including returns and adjustments, are retained for six years from the date the entry was transmitted and that those records can be provided to the Receiver, ODFI, or Operator upon request.
Most recent Risk Assessment
The ACH Rules require financial institutions to complete an ACH Risk Assessment as specified by their regulator. ePayAdvisors will request a dated copy of the most recent risk assessment.
Business Continuity Plan and critical vendors
Did you know that September is National Preparedness Month? Your Business Continuity plan, including a list of critical vendors and the date you last tested the plan, is necessary for us to evaluate your readiness to overcome potential processing disruptions.
Policies and Procedures
We will examine your ACH policies and procedures for several compliance areas and best practice recommendations. We will look at one item of specific interest: your method for evaluating the creditworthiness of Originators with whom you do not have a lending relationship.
Exposure limits for Originators
Your approach to exposure limits is crucial to managing risk. Be ready to verify that you establish, review, and adjust per file and per settlement day exposure limits for your Originators periodically.
Return rates monitoring
We’ll need clear evidence that you're actively monitoring Institution and Originator Return Rates for overall, administrative, and unauthorized returns.
Proper SEC Codes for Entries
Accuracy in transaction categorization impacts compliance with applicable exception processing Rules. Provide proof that origination adheres to the proper SEC Codes for Entries. Providing Nacha formatted Files helps to ensure a smooth review and compliance.
Nacha’s Risk Management Portal
Before your engagement, visit the Nacha Risk Management Portal and verify your registration details. Ensure your ACH contact information is up to date. If applicable, confirm your Direct Access and Third-party Sender information.
A complete checklist is provided to you well ahead of your scheduled engagement so that you can properly prepare. It may seem like a lot, but being prepared ahead of time will ensure an efficient and accurate audit. Don't hesitate to ask for clarification if you're unsure about any request!
To schedule your audit engagement, fill out the Request for Proposal at epayadvisors.com or contact us at info@epayadvisors.com. We're here to support your compliant payment operations!