05TO-S3607-Unclaimed Property Software-Scope of Work.docx

Treasurer, Unclaimed Property Division Unclaimed Property Software Scope of Work - Attachments

10.2 - Scope of Work Vendor will be required to provide, as it relates to Technology standards and requests:

Encryption for data at all stages of use, including at rest. Encryption methods must meet required:

Applicable regulatory standards which may include HIPAA, DSS-PCI and banking standards.

Housing of servers, including back up and disaster recovery servers, which shall remain physically located in the United States.

Vendor Staff and Contractors that collect or process Nevada state data must be located within the continental United States.

Staff and Contractors that handle or process Nevada state data must provide evidence of a background check.

Vendor's employee and contractor access to Nevada state data must be documented or logged when handling or processing said data.

Any changes to the system must comply with NRS Chapter 603A and Federal standards where applicable.

Provide annual security audit reports and proof of certifications as they come available to the vendor (e.g.: SOC2 Type 2 reports, ISO27001 certification, any additional reports).

Provide monthly access security logs for the Nevada specific application logs.

Maintenance, upgrades, and patching of the server.

Provide IT data security reports upon request, based on audits conducted of State systems.

Vendor will not utilize any federal or state banned technologies regarding implementation, storage, or maintenance of Nevada state systems.

The state of Nevada, Office of the State Treasurer, reserves the right to audit all Nevada state data hosted on Vendor's servers.

The Nevada State Treasurer's office must be notified of security incidents, data leaks, or breach of systems that contain Nevada state data within 24 hours of discovery of the event.

Notification of the incident, leak or breach must contain at minimum:

Description of incident, including what data was impacted and the cause of the incident.

Date and time.

Any mitigation action taken.

Any preventative action recommendations.

Name, title, and date of the person completing the report.

Modifications and maintenance of the unclaimed property holder reporting and claims websites.

Allowing only data that has been approved by the State for publication to these websites and other publications.

Vendor will be required to facilitate:

Automation of data related to funds received, paid, or subsequent reversals of funds received or paid by the State's bank account into the system. This may be accomplished by uploading banking reports. The system is to reflect the payment information (electronic reference or check number) and the date of the action.

Allowing multiple receipts on the same batch of receipts.

Allowing the receipt type, amount, payor and memo line to be documented.

Allowing receipts to be split amongst reports and amongst general ledger accounts.

Ability to perform ACH payments and Check payments to claimants, allowing for AVS validation prior to making payment. If AVS validation fails, changing the payment type and possibly requiring the State to approve the change in payment method to ensure that the validation failure was not the result of a fraudulent claim.

Since the data is being collected on the Vendor's hosted website, the Vendor is still required to comply with National Automated Clearinghouse Association (“NACHA”) and other federal requirements, as necessary.

A change order may be required to implement AVS and ACH payments for additional development and transaction costs.

Automation of general ledger entries to demonstrate funds received based on the receipt and/or report type, requiring the system to be interfaced to the State's accounting system.

Automation of general ledger entries to demonstrate claims payment activities (including reversals), requiring the system to be connected to the State's accounting system. Where possible, the general ledger entries must break out the funds paid on a claim from individual properties’ fund sources. Cancels and reissues should be based on the date of the action and should reflect the fund sources in the same manner as the original issuance.

Automation of claimable properties being published to the national MissingMoney website.

Any changes to the requirements to publish claimable properties to the MissingMoney website, changes to how it is delivered to or published on the MissingMoney website must be reviewed and approved by the State.

Statistical data published to the MissingMoney website must be reviewed and approved by the State.

Automatic importing of claims initiated on the MissingMoney website for claims in the State’s custody.

Software Functionality Requirements:

Holder Reporting and Remittance:

Ability to make payments by electronic formats supported by the State's banking partners and allow payments to be automatically tied to the reports they apply to.

Ability to automatically clear reports based on report and receipt information matching and the value of the report.

The ability to automatically attach receipts to reports, including the ability to split a payment amongst reports in a file when a payment for a file matches the value and FEIN of the payment information.

Automatic unclearing of reports when payment is rejected, to prevent payment of claims and prevent the report from locking for future handling.

Ability to search for holders, reports, and receipts based on holder ID, Report ID, Receipt ID, holder name, address, contact name, contact phone number, contact email address, FEIN, holder/payment/receipt type, etc.

Allow for new holders to be created internally by copying information from another holder.

Allow for new holders to be created based on importing of the National Association of Unclaimed Property Administrators (“NAUPA”) formatted Holder Report file. This can be implemented after the system is created. This includes the creation of foreign holders using foreign tax IDs.

Automated creation of new holders based on holder creation on the website. This includes the creation of foreign holders using foreign tax IDs.

Allow for customization of required fields in a NAUPA report and allow for errors or rejections when those fields are not populated or are populated incorrectly (e.g.: when a Social Security Number is in the name field, that should require an update on the report prior to submission) to take place prior to the report’s submission. This would require the website to perform preliminary analytics of the file to ensure that it is in a format that the system can read, is not a duplicate file, and meets standards established by the State and required for the system to process the report. The website should clearly indicate at that stage that the report upload was not successful.

Allow data on a screen to be exported to PDF/Excel format where appropriate, and data security requirements allow export of the data.

Allow for NAUPA III standards to be implemented once it is finalized.

Ability to allow for the State to process reports and claims in NAUPA II / NAUPA III formats.

If it is deemed appropriate by the State and vendor alike, converting specific information reported from NAUPA II to NAUPA III standards can be done in a manner that the State agrees to in writing. Specific conversions must be documented and available in a configuration report.

All configurations within the system must be available for Administrators in the system, on at least a read-only basis, along with explicit meanings for the configurations. Configurations should be accessible through a report.

Allow certain State Government Holders (such as Courts and County Governments) to Report in Excel format, which can be uploaded to the system.

Allow for canned letters to be created and documented in the system with all letters sent to an individual holder to be accessed in one location.

Electronic sending letters from the system must allow for multiple recipients.

Communications sent must be able to be reproduced using the original date sent and the exact text of the communication.

Allow for automated modifiable penalty, interest and fee assessments; documenting assessments, waivers and payments.

Penalty and interest calculations should be based on the most recently received holder report payment and/or report received date, whichever is later. Calculations should not take into consideration payments for penalties, interest, fees, stock sales, or auction receipts.

Calculations should consider approved waiver and extension requests. (Thereby impacting report/remittance deadlines, applying waivers if estimated assessments prepayments were made, applying waivers if the property reported was all due during the reporting cycle for which the extension was granted, etc.), Allow for extensions to be documented prior to the report being submitted.

Allow for simple negative reporting.

Include simple, real time guides for holders to submit reports, including State specific inserts to ensure reporting is smooth for holders.

Allow multiple users at a holder to upload reports for the same holder.

Provide ability to provide a holder's reporting history on demand and delivered via email to an approved holder contact.

Tracking of original report data (including to the property and owner level of data), along with the details of any edits, the identity of the user who made the edits, when the edits were made, the information pre-edit and post edit, how the edit was made, etc.

Allow for reports and receipts to be classified by type.

Tracking of holder compliance, to include when reports/remittances were early, past due, failed to include required information, etc. Information should be indicated at the holder level.

Allow holder tracking based on the holder's FEIN, and to allow for the "holder name reported as" tracking to show at the property record.

Allow for reports/properties to disclose a remittance amount that varies from the report amount based on settlements, interest earned on certain property types, bankruptcies, etc. Each variance at the property level should be individually identified with an addition/deduction amount and type, with multiple additions/deductions allowable on each property and summarized at the report level.

Holder Related Website Features:

When a report is uploaded but prior to notifying the uploader, the file is analyzed to determine all associated holders. If the holders included in the file do not match records in the system, the system should require the holder to select holders associated with the information or create a new holder and provide a note as to why a new holder is necessary. This includes the creation of foreign holder using foreign tax IDs.

Require the holder to identify a reason that the “holder name reported” would vary from the holder’s information. For example: the holder is reporting on behalf of another entity, the holder is the successor company of the entity that originally held the obligation, etc.

Allow for holders to report on the website without requiring the report be encrypted prior to submission.

Website will only allow properly formatted NAUPA reports to be uploaded.

Allow the holder to identify the report type on the website.

Publish real time guidance and forms for holders.

The ability to determine and document a reported property owner’s identity.

The ability to send certain properties for periodic current owner address updates and document each update separately from the reported owner’s address. The information to be published shall be determined at a later date.

Publish instructions to make payment.

Ability to upload documentation to support reports and audits. Uploads should trigger notifications to Administrator’s staff to review the records.

Claims Related Requirements:

Allow for claims to be assigned to Administrator’s staff members.

Allow for multiple levels of review based on the value of the claim. This should include market value of stocks, stock cash received (including dividends and from stock sales) and safekeeping cashed out.

Allow for a percentage of properties to be paid to claimants based on ownership rights, not to exceed 100% of the cash value reported and remitted.

Allow for various statuses of claims and customizable information available to claimants when searching the status of their claim on line. For example, if a claim is under review for fraud, we would not want to claimant to be privy to that fact, only publishing that their claim is still in the process of being reviewed.

Allow for the State to automatically mark claims as potentially fraudulent and suppress claim forms based on email addresses, domain names, claimant names, address, IP Address, and other similar criteria.

Allow for the state to block website traffic from designated IP addresses.

Allow for looking up claims at a minimum by: Claim Number, claimant's e-mail address, claimant's address, claimant's SSN, reported owner name, claimant's FEIN/SSN, IP address, Finder name, payee name, check number, value, claimant name, claim status, claim source, CUSIP, number of stocks, and inventory items count.

Allow for editing claims information in the following fields: Claimant name, Address, Payee, Date of Birth, SSN/FEIN, Relation, Source, Email address, special handling, payment type, or other relevant information as deemed necessary by the Division.

Allow for adding property to claims from the property level inside the claims screen.

Allow for adding from property to claims from windows of property searches.

Allow for deleting properties from claim, and require notations of deletes.

Allow for switch first and last names at the payee level with a button.

Allow for toggle between FEIN and SSN.

Allow for splitting claims and bulk Splitting (adjusting percentages) and automatic recalculation of claim value.

Allow for manual and automated updating Claim Status.

Allow for adding notes, including documenting any edits made to a claim since its inception.

Allow for canned letters to be created and documented in the system with all letters sent to an individual claimant to be accessed on the claim.

Electronic sending letters from the system must allow for multiple recipients.

Communications sent must be able to be reproduced using the original date sent and the exact text of the communication.

Allow for manual edits of letters prior to being sent, and tie the sending of the letters to specific updates to the claim’s status based on the letter being sent.

When letters are sent to claimants, allow for attachments to be selected, such as the claim form, bond letters, general guidance, etc.

Initiating claims on the claims screen Inquiry results must show reported: Name, SSN, Address, Property ID, other claims on property, Check Number(s) Ability to search for property by Owner Name(s), SSN(s)/TaxId(s), Address, Property ID, Check Number reported, Account Number reported, Lexis Nexis ID, reported value (cash, shares, and inventory quantity), SK.ID, SK box number, Auction ID, Holder Name Reported, Holder Name, Holder FEIN, Property type code, Claimant Email, Claimant Phone Number, Claimant Name, IP address.

Ability to copy a claim or a claim and its properties to create a new claim with the same information Ability to see work history / claim activity Provide services that analyze a claim's likelihood to be fraudulent and allow various handlings based on criteria of likelihood.

Flag multiple claims on the same property, claims with IP addresses located in areas not supported by the information provided on a claim, claims with the same email address, claims with the same phone number, payee’s electronic banking information, etc. and provide all relevant claim IDs.

Allow for automated approval based on a variety of factors (to include at a minimum, value, number of properties, property types on a claim, claimant relationship type, etc.).

Document in the notes of the claim/property results of Lexis Nexis search, including the LexID®, that individual’s name(s), address history, Date of birth, tax ID, etc. Documenting the LexId alone does not guarantee the data can be requested and reproduced.

Provide details of success/failure of the individual criteria required to allow automated approval.

Allow for proactive claims payment issuances based on the system verifying reported information to information in Lexis Nexis, on recently paid claims, and other confirmation processes agreed upon by the vendor and the Administrator.

Ability to create reciprocal claims based on unpaid properties with different states reported as last known address.

Ability to add multiple properties to a claim at once Ability of the system to automatically add properties to a claim based on information provided by the claimant and/or owner information of other properties claimed.

Ability for the system to have various methods to automate claims approvals, including through proactive claims methods.

Claims Specific Website Functionality:

Allow constituents to create their own claim(s) online through the state’s website and/or through partnering websites (such as MissingMoney) if agreed to in writing by the Administrator.

All for constituents to search the status of their claim, upload documents directly to their claim, obtain a copy of their current claim form, and obtain a copy of the most recent system documented correspondence to the claimant through the website.

Provide a guide to creating a claim on the website.

Provide forms with guidance by claim type/circumstances on the website.

Do not allow properties on the website that are in an approval status of any level, that are marked as unpublishable or unclaimable, if the owner’s information is marked as private, or other criteria as determined by the Administrator are present.

Limit property and owner information published to the website to only those fields, presented in a manner determined appropriate by the Administrator.

Allow for a user friendly interface that guides the claimant at each step as to what’s required to complete the claim.

Safekeeping Ability to edit SKID Ability to customize information on property for bonds Ability to adding/delete SKID, without the assistance of the vendor, including but not limited to:

Creating Transactions Splitting Transactions Deleting transactions Creating appraisals Adding SKID to appraisal Deleting SKID from appraisal Creating Auction, without the assistance of the vendor, including but not limited to:

Adding SKID to auction Deleting SKID from auction Downloading appraisal and auction Uploading appraisal and auction from a spreadsheet, breaking out the values received by SKID.

1. Tying an auction to a receipt.

Closing auction when the receipt amount has no unapplied balance and every SKID has a value applied or a disposition applied.

2. Allowing images to be attached to SKIDs to keep Securities Ability to import reports from securities custodian or directly interface with securities custodian to ensure timely and accurate record keeping of stocks.

Ability to record Corporate Actions on stocks including, but not limited to: manually and automatically through uploaded spreadsheets or automatically from interface files information at the stock/CUSIP level including but not limited to: Dividends, Drips, Splits, Mergers, Interest/Principal Payments, Sales, Adjustments, Name Change.

Automatically apply actions taken at the stock/CUSIP level across properties with remaining shares.

Ability to undo/delete an action without the assistance of the vendor Ability to edit property and/or owner information, including but not limited to:

corporate actions on property Sell orders Proceeds imports Create stock Create custodian Merge Stock Custodian Reconciliation import, disclosing stocks that are out of balance, requiring further research by Administrator staff.

Stock Price import, updating the property Ability to have multiple dates for non-dividend corporate actions – the date of the change, the date the shares left the account, and the date the new shares came in Ability to have 2 dates for dividends - the record date and the settle date Ability to record the date the stocks transfer was initiated and the date it settled for newly reported properties.

Ability to obtain an exportable report from the holder report, an export of securities, with CUSIP, symbol, security name, stock transfer initiation and settle dates by property and owner.

Name change for stock Stock split with name change Auditing Allow for audits and other compliance efforts to be tracked in the system.

Provide an indication of a compliance effort on the holder's main page, to allow for report types to be evaluated Allow for uploads of Work in Progress reports from the website and/or importing from within the system.

Automated creation of audits based on uploads of audit proposal documentation and work in progress reports.

Ability to track statuses of audits, including lack of activity, where WIPS have required State intervention, etc.

Ability to track audit/compliance related reports.

Ability to track audit invoices.

Ability to image documents into the system.

Ability to import a Work in Progress report Allow for automatic notifications from the system when a holder's audit has not been included in a Work in Progress report for a specified period of time.

Ability to link audits of subsidiaries/affiliates to the parent company.

Reports of System Activity Allow for canned and customizable reports to demonstrate at a minimum:

Remittances received within a specified time period, disclosing the remittance amount, breakdown of how that remittance was applied, remittance method (e.g.: ACH Debit, Check, Wire, etc.), remittance type (e.g.: November cycle reports, audit reports, penalty and interest, etc.).

Claims initiated within a specified time frame (showing initial values, date initiated, status, payment amount and payment date).

Claims denied within a specified time frame.

Claims paid within a specified time frame (showing payment values, payment type, payment date, claimant name, etc.).

Claims cancelled/ reissued within a timeframe (based on the date of the action).

Properties available for claim at a given date based on the time frame a report was submitted, showing the breakdown of the owner's reported county of address, the value, the owner's name, and other fields required pursuant to NRS l 20A.580.

Property/Owner/Safekeeping/Stock Edits reports (showing properties edited by means other than the report deletion, by date the edit was made, who made the edit, what the values were prior to and subsequent to edits made, etc.).

Report Deletes/Rejections within a time frame (showing who deleted the report, when it was deleted, the value of the deleted report, etc.).

Data disclosing dates that images were uploaded on the claims website or otherwise scanned in by the State.

Data disclosing dates that images were uploaded on the holder/report/audit sections website or otherwise scanned in by the State.

Current information disclosing the State's received property values to date, properties paid to date, and the current balance of liability to the State.

Claims initiated and/or paid by type (owner claim, heirfinder claims, heir claims, business claims, etc.) for a specified date range.

Claims approved through Fast Track for a specified date range, along with those claims details (payee name, total cash value, total number of stocks transferred, total number of safekeeping inventory items returned, total estimated value, total number of properties, claim type, claim source, and if it was fast tracked.

Changes to State user access capabilities based on changes made within a specified time range.

Real time user access listings, along with detailed descriptions delineating what those accesses allow the user to do.

Reports received during a specified date range that have not been cleared. This should disclose the holder's FEIN Reports disclosing, at a minimum, claims paid through a settlement date, delineating if the claim was Fast Track, the claimant's name, the claim amount, number of properties on the claim, quantities of stocks and safekeeping and any subsequent proceeds from sales of stocks and safekeeping items.

Reports required for heirfinder discs (showing properties aged a specified amount of time, over a specified limit, showing each owner on the property, property type, the owner's address reported, the holder reporting the property, the general amount of the property, etc.).

Customizable, on-demand report functionality.

Other System Functionality Allow for users to be provided with accesses based on their job functions.

Ability to customize accesses and roles based on needs determined by the State.

Automated batch payments of approved claims based on the date the first claim documents were uploaded, automatically applying payment status to the claim.

The number of claims allowed in a payment batch must be customizable and editable by the Administrator without the need of the vendor’s assistance.

Ability to add alerts on reports, properties, and claims to prevent automated processes from taking place and to notify Administrator staff of an issue.

Ability to add notes and/or images to multiple properties, reports, holders, and claims at a time.

Ability to confirm share transfers Ability to confirm mailing of safekeeping Change orders are permitted when the State requests a change to the system. If a Change Order results in costs that are not included in the costs identified in Attachment BB, Exhibit E and Section 6 of the Contract, the vendor must provide a quote and receive approval of that quote prior to beginning the work. These quotes require amendments to the Contract and must follow the amendment process required by Section 31 of the Contract.

Maintaining the Administrator’s website for constituents to report and remit unclaimed property, filing claims, uploading documentation required to support reports.

Document retention: The system will retain and be able to pull from information previously reported or previously provided through the claims process. Document retention will, at a minimum, adhere to the state’s retention requirements for imaged documents.

Disposal of information will be performed in a manner agreed upon by the vendor and the Administrator.

Disposal and retention cycles should include considerations for back up and disaster recovery systems.

10.4 – The Administrator is the custodian of properties (ranging from cash, securities, and physical goods) deemed abandoned. The Administrator’s goal is to receive, maintain and pay out properties in a timely and accurate manner. In doing so, that requires upkeep of a public facing website for holders and claimants alike, efficient means to process reports and receipts received, efficient means to process claims received, and identify fraud.

11 – Cost Schedule Attachment

· Costs for the contract must be broken down by charge type

· Costs for the contract must be broken down by month within the contract scope period using projected number of transactions per month provided in the cost schedule

· Increases to rates must be identified and are limited to a maximum of 5% per 12 months.