Audit Requirements for All Participating DFI’s, third Party Service Providers, and Third Party Senders the NACHA Operating Rules and Guidelines require that all participating depository financial institutions, third-party senders and third-party service providers that offer ACH service must conduct an annual ACH audit no later than December 31 of each year. It's imperative to gain a strong understanding of audit requirements and the functions of a receiving depository financial institution (RDFI), and an originating depository financial institution (ODFI). Learn about the important sections of the audit focusing on agreements, previous audits and verification requirements, including:

• What are the audit requirements to maintain compliance?
• Under the Rules who is responsible and accountable for oversight of and fulfillment of the audit requirements?
• What are the retention requirements for the audit documentation?
• What are the responsibilities of a DFI to the National Association regarding an audit of compliance?
• What are the ACH Operations audit specifications that must be conducted regarding the following?
• Retention
• Records in electronic form
• Compliance to Appendix Eight
• Use of Encryption
• Entries processes through non-affiliated participating DFI
• ACH Risk assessments
• DFI established security policies

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The NACHA Operating Rules and Guidelines require that all participating depository financial institutions, third-party senders and third-party service providers that provide ACH services must conduct an annual ACH audit of the following items relating to the receipt of ACH entries. This 60-minute session will arm RDFIs with inside information on how to best comply with NACHA verification requirements including:

• Account numbers validation within Pre-notification entries.
• COR Entries and Notifications of changes (NOCs)
• Acceptance of all types of entries
• Appropriate handling of XCK entries
• Proper settlement and posting of credit and debit entries
• Proper information related to consumer and non-consumer accounts
• Proper timing of return entries
• Handling of late or dishonored returns
• Handling of returned credit entries
• Handing of Stop payment orders
• Proper usage of written statements of unauthorized debits (WSUDs)
• Proper disclosures for UCC 4A compliance
• Proper handling of addenda records

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Audit Requirements for ODFI’s and Third Party Service Providers, and Third Party Senders when performing an obligation of the ODFI, must conduct an audit of the following relating to the origination of ACH entries.

• Unique requirements of Third Party Senders
• Origination and applicable sending point Agreements
• Oversight and Assessment of risks of originator’s or Third Party Sender’s ACH activity
• Regular review of each originator’s or Third Party sender’s exposure limits
• Monitoring of originator’s return rate activity.
• Proper handling of return and extended return and dishonored
• Proper handling of NOC's and corrected NOC's
• Proper handling of RDFI requests for Receiver’s Authorization
• Handling of late return entries
• Proper disclosures for UCC 4A compliance
• Commercially reasonable verification of identity of originators
• Verification of proper initiation of reversing entries/files
• Verification of all required steps for Direct Access status have been completed as applicable

Make sure you stay ahead of the changing Rules. Register today.