ACH (RDFI/ODFI) Audits

ACH (RDFI/ODFI) Audits

With ACH, as with any service channel that provides convenience, ease of use and assists with the movement of money, there comes risk and potential losses. To maintain the integrity and efficiency of the ACH system, NACHA has required financial institutions to complete an annual self-audit.

The purpose of this audit is to ensure that transactions are handled properly to minimize potential losses and exposure to liability. Such improper transaction handling can have consequences beyond the immediate loss; in some cases, mishandling of transactions may lead to loss of reputation or confidence in the financial institution.

Outsourcing the ACH audit offers several advantages. It brings an element of independence, requiring someone to review the function who does not participate in the daily activities of the organization. While NACHA currently does not require the self-audit to be completed by an independent third-party auditor, it is beneficial and best practices dictate that an independent third party be used. Outsourcing also helps keep the organization’s staff focused on production and service.

TWHC understands the regulations and the risks involved; moreover, TWHC can provide useful insight on the required control environment. TWHC has been offering audit and risk assessment services for ACH to financial institutions for over ten years. TWHC has experience in offering such services to both Originating Depository Financial Institutions (ODFI) and Receiving Depository Financial Institutions (RDFI).

Our team has the experience necessary to provide your organization with a comprehensive review of your ACH program.