Can school districts use an electronic payments clearing account?
A.R.S. 15-1221(B) allows a school districts governing board to establish a bank account to make electronic payments to vendors. The district should maintain a current list of employees the governing board authorizes to make payments from the account. The account must be a clearing account maintaining a zero balance and must not accumulate funds except for any account interest balances that must be credited to the M&O Fund at the end of each fiscal year. The district may use this account for retirement contribution payments to Arizona State Retirement.
