ABC’s of Conducting your Annual ACH Rules Compliance Audit

Credit(s)

IRS CPE Credits: 2 Tax hour

The Nacha Operating Rules and Guidelines require that all participating depository financial institutions (ODFI & RDFI), Third Party Senders (TPS) and Third-Party Service Providers (TPSP) that provide ACH services to the RDFI or ODFI, conduct an annual ACH audit by December 31 of each year (Nacha Operating Rules, Article 1.  

Each year, updates to the Nacha Operating Rules impact the requirements for your annual ACH Rules Compliance Audit, including the changes for 2024.

These Rules changes will be included as they affect the audit.  There are always the little things that are overlooked during the annual ACH Audit, the trainer will help identify “what to look for” when sampling payment information while ensuring compliance.

This session will cover “every detail” of the audit process and requirements for each participant conducting an annual ACH audit, to help ensure their compliance with the Nacha Operating Rules.

Webinar Objectives

The annual ACH Rules Compliance Audit involves a thorough review of all ACH processes in which a participant is engaged, followed by a 'compliance test' to ensure adherence to the Nacha Operating Rules.

Knowing what to check for and understanding what report to look at (incoming ACH file or outgoing ACH file) is crucial for ensuring you are ensuring compliance with the Nacha Operating Rules. This session by Donna K Olheiser, AAP will guide you step-by-step, offering tips on how to effectively 'test' and what to focus on when reviewing ACH processes for rules compliance.

In addition, this session will help identify the participants required to conduct an annual ACH Audit. It will also outline the audit process for each participant, providing tips and guidance on creating a personalized ACH Audit tailored to the specific ACH activities you perform.

Webinar Agenda

• Financial Institutions NEED to determine the role they play in the ACH network and what types of ACH transactions they either send and/or receive
• Upon determination of ACH activities within the financial institutions ACH program, then step-by-step, scoping those activities to ensure compliance with the Nacha Operating Rules
• TPSP (Third-Party Service Providers) and TPS (Third Party Senders) NEED to determine which ACH function they are participating in during their ACH processing on behalf of either an ODFI or RDFI or perhaps an Originating Company – then audit accordingly
• Each ACH function that a TPSP and/or TPS participates in must be thoroughly inspected each step of the way to determine Rules compliance with Nacha
• The trainer will walk through each process of “testing” ACH functions (processes) to ensure compliance and will provide tips on “what to look for” on incoming and/or outgoing reports for specific detail, while covering Rules compliance at the same time

Webinar Highlights

• Identify the participants in the ACH network required to conduct an annual ACH Rules compliance Audit
• Define the General Audit Requirements
• Discussion on tools available in the Nacha Operating Guidelines for guidance when conducting the annual ACH Rules Compliance Audit, including the TPS audit.
• Review the flexibility for each participant when following the Guidelines, which include the ODFI, RDFI, TPSP and TPS within the Rules Book
• Describe “how-to” ensure Rules Compliance after determination of what ACH activities are being audited
• Recommended areas to check (audit) in addition during the ACH Audit

Who Should Attend

• ACH Operations staff
• Compliance Officers
• Treasury professionals
• Third-Party Payment Processors (who process ACH payments)
• Third-Party Senders (who process ACH payments)
• ACH Managers
• Electronic Payments Professionals for AAP CEC (Continuing Education Credits)
• ACH auditors (internal and external)