16 Tex. Admin. Code § 402.514 - Electronic Fund Transfers

(a) Electronic Fund Transfers. Electronic fund transfers (EFT) refers to the transfer of funds using a computer system, electronic terminal, telephone, mobile phone, or other non-paper based method that may be used for both credit transfers, such as deposits into an account, and debit transfers, such as deposits into an account, and debit transfers, such as payments from an account.

(b) Controls Over Electronic Fund Transfers.

(1) Licensed authorized organizations or units shall use for all EFT transactions the same financial policies, procedures, and controls that govern disbursement by check and the receipt of funds into the bingo bank account. (See §2001.452 of the Bingo Enabling Act and § 402.505 of this chapter (relating to Permissible Expense) and § 402.506 of this chapter (relating to Disbursement Records Requirements)).

(2) The licensed authorized organization or unit shall implement the following controls for EFT transactions.

(A) Only authorized person(s) shall be allowed to execute an EFT transaction on behalf of the organization or unit.

(B) The licensed authorized organization or unit shall maintain documentation of approval of changes in the person(s) authorized to execute electronic funds transfers. Documentation may include but is not limited to: meeting minutes, bank account signature cards, or copies of applications to the financial institution to authorize individuals access to perform on-line banking in association with the bingo bank account or unit bank account.

(3) The bingo chairperson, or in the case of an accounting unit, the individual authorized in writing by each unit member's bingo chairperson, and bookkeeper shall review accounting records and bank statements to ensure that only authorized EFTs are executed. Each EFT shall be accounted for when completing monthly bank reconciliations.

(c) Recordkeeping for Electronic Funds Transfers.

(1) EFT receipts into the bingo bank account shall be recorded in the accounting records. At a minimum the organization or unit must record the following information regarding EFT receipts:

(A) payer name;

(B) amount paid;

(C) date paid;

(D) purpose of the funds received; and

(E) the EFT confirmation receipt, if provided.

(2) The organization or unit shall maintain in its accounting records a copy of each EFT payment transaction together with the invoice or billing statement. The following information must be maintained supporting the payment:

(A) payee name;

(B) amount paid;

(C) date paid;

(D) account number from which the transfer is made;

(E) nature of payment;

(F) the name of the person executing the EFT transaction on behalf of the organization or unit; and

(G) the EFT confirmation receipt, if provided.

(3) All records relating to electronic fund transfers into or out of the bingo checking account of a licensed authorized organization or unit must be retained for a period of not less than four years.

(d) Discrepancies or Misapplication of Electronic Fund Transfers. The bingo chairperson or other person authorized to sign on the bingo bank account shall notify the organization's financial institution immediately to report problems or if it is suspected that someone has access to the bingo bank account without authorization.

Notes

16 Tex. Admin. Code § 402.514

The provisions of this §402.514 adopted to be effective July 5, 2010, 35 TexReg 5826; Amended by Texas Register, Volume 41, Number 31, July 29, 2016, TexReg 5536, eff. 8/1/2016