NC Local Government Investment Association Agenda Introductions State

NC Local Government Investment Association

Agenda Introductions State of North Carolina Contracts ACH Overview Cash. Pro Information Reporting Fraud Prevention / UPIC Contract Pricing The Players / Responsibilities Other Contract Technologies Electronic Data Interchange Debit / Prepaid Cards Purchasing Card / Epayables Questions 2

Introductions 3 3

State of North Carolina and Bank of America Presenters Amber Young Central Compliance Manager Statewide Accounting Division NC Office of the State Controller Shannon Okine Specialized Banking Unit Supervisor Financial Operations Division NC Department of State Treasurer Gary L Clark Senior Vice President Senior Treasury Officer Bank of America 4

State of North Carolina Financial Contracts 5 5

State of North Carolina Financial Contracts ACH Disbursements Provider = Bank of America Purchasing Card & Epayables Provider = Bank of America Merchant Services Provider = Suntrust 6

ACH 101 7 7

The ACH Process 3 RD Party ACH Gateway Local Government Entity Originating Financial Institution Creates ACH Files to send To Bank of America ü Processes On-Us Transactions ü Produces automated file for all other items to send to ACH Cash. Pro On. Line ü ACH Initiation ü Wire Transfer ü Info Reporting ü ACH Reports Payables Settlement Accounts Recipients of Funds (Employees, Vendors) 8 Returns Receiving Financial Institution ACH Network

ACH Transactions PPD - Prearranged Payment or Deposit (consumer) PPD+ - PPD Plus one addenda record (consumer) CCD - Cash Concentration or Disbursement (corporate) CCD+ - CCD Plus one addenda record (corporate) CTX - Corporate Trade Exchange (corporate) up to 9, 999 addenda records § POP - Point of Purchase (consumer) § RCK - Re-Presented Check (consumer) § WEB – Internet Initiated (consumer) § TEL – Telephone Initiated (consumer) § ARC – Accounts Receivable Entries (consumer) § § § 9

Cash. Pro Information Reporting 10 10

Cash. Pro Online Overview § Single sign-on portal to Payments, Information Reporting, Notifications, Trade and Foreign Exchange § Latest technology – Web 2. 0 § Dashboards: Visibility of data customized at the user level § Intuitive workflows that support customization § Flexible reporting options with custom reports and formats § Notifications available via e-mail, sms & fax § Regionalization capabilities including local language support for 11 languages § Dual administration & Multi-layer security § Online University available 24/7 for access to virtual assistance, interactive training courses, user guides and other resources Cash. Pro Online Client Value Proposition Cash. Pro Online delivers simple, secure access and greater control over all the financial solutions your business uses, wherever and whenever you choose. “One Portal. One Password. Global Convenience. ” 11

Cash. Pro® Online – Information Reporting § Configurable dashboard § Online Balances – current day and previous day § One click reporting – My Reports § Advanced filtering and searching § Customizable reports and downloads § Multi. Bank reporting § Transaction search capability § Local Language user interface and data reporting capabilities § e. Statements § e. Mail scheduling for Reports and Statements § 365 days online history § 18 months of online statements § Export capabilities in csv, pdf, excel, XML, MT 940 and others. 12

Cash. Pro® Online - Payments Features § Ease of creating payments § User defined fields § Straight through processing § Depending upon the debit account selected and currency of the payment, Cash. Pro® Online will automatically present the fields to be completed to ensure STP § Single currency transactions § Cross currency transactions § Foreign currency transaction § Smart Calendar § Beneficiary emails § Flexible payment approval options § Import and export capabilities § Standard and customized reports in various formats § Supports 10 languages 13 Cash. Pro® Online – Global Payments Solution

Internet Phone Training 14 In Person

Fraud Prevention 15 15

ACH Positive Pay With ACH Positive Pay, you receive online reporting of incoming ACH transactions that do not meet your authorization criteria, before the transactions post to your account. This early warning reporting allows an entitled user to pay or return incoming ACH transactions as they are received. REAL TIME DECISIONING ▪ Ability to accept or reject ACH transactions from your unauthorized trading partners ▪ Helps with investigating potentially fraudulent items as they happen REAL TIME NOTIFICATION OF EXCEPTIONS; CUMULATIVE REPORTS ▪ Ability to view ACH exceptions as they are received ▪ Daily reporting provides an audit trail of daily authorization activity SELF SERVICE ONLINE AUTHORIZATIONS ▪ Authorization lists for your trading partners easily kept current allowing for up-to-date transactions 16

ACH Blocks Automatically reject ACH transactions received, such as those from unauthorized trading partners or intended for consumer bank accounts or all debits and/or credits. OPERATES AUTOMATICALLY ▪ Establish block instructions on our system ▪ Based on your instructions, our system automatically rejects incoming transactions ▪ By using an automatic service, you save time NO RECONCILEMENT IMPACT § Rejected transactions do not post to your account, so there are no additional transactions to reconcile ONLINE CONVENIENCE § Rejected and paid transaction detail § Block instruction detail 17

UPIC is a code assigned to a replace the bank account number during the processing of ACH credits. A UPIC is obtained by an ACH receiver, and provided to the ACH credit originator, so the originator may initiate ACH credits using a code, instead of a bank account number. SECURE ▪ UPIC enables ACH credits, without revealing the receiving bank account number CONVENIENT AND EFFICIENT ▪ Reduce the risk of unauthorized debits to your account ▪ Mitigate the risk of fraud ▪ Increase ACH payment credits without distributing your account number ▪ Avoid divulging sensitive bank information 18

Contract Pricing 19 19

Line Item Costs Per Unit Cost Annual Cost ACH Origination Services ACH Monthly Maintenance per Account A CH Credits/Debits/Prenotes Originated Annually ACH Addenda Originated Annually ACH Origination Files Transmitted Annually via CPS $ 4. 00 $. 0048 $. 004 $ 2. 75 $ 5, 272. 00 $ 66, 746. 60 $ 1, 514. 75 $ 825. 00 ACH Origination Files Transmitted Annually non-CPS $ 2. 75 $ 29, 700. 00 Transmission Maintenance Fees for DCC Monthly N/A Transmission Maintenance Fees for Participant Monthly N/A Other ACH Related Services ACH Returns Annually ACH Notifications of Change Annually ACH Reversals Annually ACH Received Entries File Transmission Annually ACH Received Entries Per Credit Item Reported Annually Settlement Account Services Bank Account Monthly Maintenance ZBA Account Monthly Maintenance Returns Handling Monthly Maintenance ACH Debit Block/Filter Monthly Maintenance Wire Transfers Incoming Annually Book Transfers Annually Deposits other than ACH Credits Received & wires Annually Debit Postings Annually $ . 50 $ 7. 00 $ 2. 75 $ . 01 $ 26, 969. 00 $ 14, 583. 50 $ 5, 418. 00 $ 3, 225. 75 $ 33, 379. 70 $ 8. 00 $ 5. 00 $ 1. 00 $ 4. 00 $ 5. 00 $ 1. 50 $ . 25 $ . 03 $ 21, 760. 00 $ 5, 645. 00 $ 89. 00 $ 3, 672. 00 $ 51, 680. 00 $ 19, 582. 50 $ 8, 707. 25 $ 1, 033. 56 $ 20. 00 $ 94, 020. 00 Online Bank Account Reporting Monthly Online Reporting Maintenance 20

The Players / Responsibilities 21 21

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Other Contract Technologies 23 23

Supplier e. Payables AP System Process pay run for payments and send a single payment file to Paymode-X®. Reconcile paper check, ACH, wire and other payment types using Bof. AML Treasury Services Card Payments 1. Works® generates email notification to supplier 2. Updates transaction status and posts to AP system 3. Card controls and maintenance Receives email Initiates payment through ERP or merchant terminal Processed through Keys in remittance data from TSYS email Paymode-X Payment File Paymode-X (ACH) Payments Forwards ACH payments to the Bof. AML ACH network Paymode-X system Split payments • Card file • ACH file • Check file • Wire file Posts Paymode-X payments to online reports Check Payments Global payments, wires, split remittance options Supplier Can view Paymode-X transactions online Receives flexible data file outputs for updating AR Paymode-X Plus Check Printing Facility Processes and mails checks Sends payment data to bank ARP system for inclusion in issue file Cash. Pro® Connect Payments Global payment network for wires and split remittance options for vendors. 24

Prepaid Cards

Questions ? ? ? 26 26