HomeMy WebLinkAboutIR 10428 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10428
To the Mayor and Members of the City Council June 16, 2020
Page 1 of 1
s
ra Y
*a SUBJECT: INFORMATION ON BANK WIRE TRANSFERS
r rn
Yg7.3
This Informal Report is in response to the Audit Committee's request for information relating to payments
made by Bank Wire Transfer ("Bank Wires").
Background
Bank Wires provide a convenient and efficient way to process payments and are required for certain types
of payments and transactions. To minimize the risk associated with Bank Wires, Treasury management has
implemented strong security measures, incorporating relevant best practices, and utilizes strong system
access controls.
Bank Wires are limited. During the 2019 fiscal year, the city issued approximately 29,000 payments (paying
approximately 74,000 invoices). Of the approximately 29,000 payments issued, the City Treasury made 235
payments by Bank Wire, representing approximately 0.8% of the total count of payment transactions.
Certain payments are required to be made by Bank Wire such as property acquisitions (payments to title
companies), remittance of employee/employer benefit payroll deductions and related payments, bonded
debt and certain lease payments, gas well income distributions, and investment related transactions. These
account for the majority of payments made by Bank Wire. Other Bank Wires made during the 2019 fiscal
year include payments made through the home buyer and economic development assistance programs, a
payment to the Texas Regional Water District, legal settlement payments, and a casualty and property
insurance payment.
Authority and Security
The Bank Wire process is very controlled and requires dual processing (creation & release). Bank Wire
system templates require dual approval in the set up or modification and provide a full audit trail. Independent
verification of Bank Wire instructions by authorized Treasury personnel for non-routine Bank Wires is a
required standard practice.
Only authorized staff in the Financial Management Services Department ("FMS") have system access to
create, approve, and release Bank Wires. Additional approval procedures are in place for Bank Wires that
exceed the internal policy threshold.
Due to security risks, the specific approval threshold and authorized personnel were purposely excluded
from this report, as recommended by the City Auditor and the City's Banking Relationship Manager.
As cyber and financial fraud continues to increase in frequency and sophistication, staff will continue to
update/revise internal Bank Wire procedures, as needed, to incorporate the relevant best practices in wire
fraud prevention.
For questions regarding Bank Wires, please contact John Samford, Assistant Finance Director & City
Treasurer, at 817-392-2318.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS