Escrow_Investment_Disbursement_Services_-_Attachment_1__Request_for_Proposal_Questionnaire_2018.doc

(Attachment 1)

Request for Proposal Questionnaire Background

1. Do you offer controlled disbursing? If so, how long have these services been available?

Yes__________ No__________ # of years_____________

2. How many controlled disbursing sites to you maintain?_____________________

· For each site, please provide the name and location of the institution that appears on the check and its transit routing code. Please indicate if this is a city point, RCPC or county point. Also, indicate if it is an affiliate, correspondent, branch, main office, etc.

· If you have multiple sites, which one(s) are you recommending to USDA – RD for its controlled disbursements?

Note: if you are recommending more than one site. Please complete a separate RFP for each site and label clearly.

3. Please provide the number of active customers to whom you provide controlled disbursing services and the total number of accounts used by those customers.

Customers______________________ # of Accounts__________________

4. What is the average daily volume for your largest controlled disbursing customer?

Average Daily $__________________ Average Daily Items_____________

5. What is the average daily total dollars and total items processed at your controlled disbursing site?

Average Daily $__________________ Average Daily Items_____________

6. What is your bank Thompson BankWatch rating?__________________________

7. Indicate the total assets for your bank and your bank’s holding company as of September 30, 2017.

Bank $_________________________ Holding Company$______________

8. Where does your bank rank in terms of assets nationally?____________________ Note: Please attach a copy of your bank’s annual and quarterly reports.

Presentment Policies

1. How many presentments are made daily at your controlled disbursement site?____

2. What percent of the dollars are received at each presentment?________________

3. Does the controlled disbursement site receive a presentment from the local clearinghouse?

Yes___________________________ No___________________________

If yes, at what time would USDA – RD be notified of the local clearinghouse presentment(s)?__________________ If notification is the next day, would USDA – RD be assessed for the resulting overdraft?

Yes___________________________ No___________________________

4. What is the latest an item can be presented and still be charged to the USDA – RD bank account on the current day?

5. Do you accept over-the-counter presentments?

Yes___________________________ No___________________________

If yes, do you accept them after the notification cutoff hour?

Yes___________________________ No___________________________

When would USDA – RD be expected to fund over-the-counter presentments if they were received after the notification cutoff?

Same Day______________________ Next Day_____________________

Would USDA – RD be charged for the overdraft created by over-the-counter presentments funded on the following day? If so, at what rate?

Yes___________ No__________ % Rate_______________________

Are over-the-counter presentments ever included in the daily notification?

Yes___________________________ No___________________________

6. As a matter of policy, does your controlled disbursing facility accept direct sends from correspondent banks?

Yes___________________________ No___________________________

If not, do you accept any direct sends on an exception basis?

Yes___________________________ No___________________________

If direct sends are accepted, what is the presentment deadline?________________

When must your bank be notified that a direct send will be presented?__________

7. List all days (regular and holiday) on which your disbursing location is closed or would not receive cash letters._________________________________________

8. Has your controlled disbursement point been designated as a High Dollar Group Sort (HDGS) endpoint?

Yes___________________________ No___________________________

If not, when do you expect this to happen?

Date__________________________

9. Are each of your controlled disbursement endpoints surveyed by Phoenix-Hecht’s check clearing study?

Yes___________________________ No___________________________

If no, which points are surveyed?_______________________________________ Note: Please provide a copy of your own bank’s specific Phoenix-Hecht clearing times from the most current survey available.

Processing Policies

1. What is the capacity per day for your controlled disbursing facility?____________

At what percent of capacity are you currently operating?

Average_______________________

Peak__________________________

2. How are damaged and/or rejected items re-entered into your system?

Manually______________________

Automatically__________________

Once reprocessed, are reject items included in the morning or afternoon notification call?

Morning_______________________ Afternoon_____________________

If not included in either, would USDA – RD be charged for the resulting overdraft?

Yes___________________________ No___________________________

3. Where is the processing of disbursement items handled?____________________

4. Are accounting and reconcilement functions performed on site?

Yes___________________________ No___________________________

5. Is your Federal Reserve office able to provide you with electronic notification of the cash letter to be presented each day?

Yes___________________________ No___________________________

6. How long does it take you on average to process the checks presented for your controlled disbursement customers?_____________________________________

7. What back-up arrangement exist in case of system failures?__________________

How and when are the back-up arrangements tested?_______________________

Has it ever been necessary to actually utilize the back-up arrangements? If yes please explain.______________________________________________________

8. Are any outside service bureaus used for any portion of your controlled disbursement services?

Yes___________________________ No___________________________

If yes, please identify the service provided._______________________________

9. Do you have an established maximum dollar value limit that may not be exceeded by an individual check?

Yes___________ No__________ Maximum $ Amount_____________

Is this a bank restriction or one mandated by the Federal Reserve?_____________

10. What is your procedure for handling checks with illegible serial numbers?______

11. Do you verify signatures?

If yes, please supply bank’s guidelines.

Notification Policies

1. What is your average daily presentment notification time?

1st Presentment__________________ 2nd Presentment_________________

What is the earliest time you are able to make the daily notification?___________

What is your latest deadline?__________________________________________

2. How frequently do you miss notification deadlines? Frequency in most recent 90 day period? Please specify the dates and the reason the deadlines were missed.

3. What notification methods are available to your controlled disbursement customers?

Telephone_____Automated Balance Reporting_____ Other_________________

4. What type of detail is available in the same day notification?

Total $______

Total Items________ Check Detail_______ Other_______

5. Does notification of daily clearing include both check and ACH debits?

6. Do you anticipate any changes occurring that will affect your notification times?

If yes, please specify.________________________________________________ Disbursement Services

1. Do you offer both full and partial Account Reconciliation Services (ARS) to your controlled disbursement customers?

2. Can you guarantee nightly update of our end-of-day check issuance file transmission?

3. Do you offer a service whereby you compare checks presented against a daily issue file (positive pay)?

Yes___________________________

4. Do you offer the following service options?

YES

NO

Data Transmission

Check Retention or Destruction

Immediate Confirmation of Stop Payments

Automated Balance Reporting

Image Viewing of Checks

CD-Rom Check Download

5. What is your normal statement cut-off date?______________________________ How soon after the cut-off date would USDA – RD receive the bank statements?

Do you supply special reconcilement statement cut-off dates as requested?

Yes___________________________ No___________________________

6. What is the turnaround time for full reconciliation?_________________________

7. Does your bank offer “on-line” (terminal entry) stop payment capabilities?

Yes___________________________ No___________________________

8. Do you check for “stale date” checks?

Yes___________________________ No___________________________

9. Do you offer “on-line” inquiry and reporting?

Yes___________________________ No___________________________

10. Are “on-line” services encrypted and authenticated?

Yes___________________________ No___________________________

11. For what length of time are the cancelled checks stored by the bank before they are destroyed?__________________# of days

12. Will you provide back-up and an explanation of all credit/debit memo charges?

Yes___________________________ No___________________________

Please provide sample account reconciliations and account statements. Explain any additional controlled disbursement services that you offer.

Implementation Services

1. Do you research the credit-worthiness of prospective controlled disbursement customers?

Yes___________________________ No___________________________

2. What is the lead time to establish a controlled disbursement relationship?_______

3. Please provide the names, addresses, and telephone numbers of four references for your controlled disbursement service.

Miscellaneous

1. Do you assess a charge for FDIC insurance?

Yes___________________________ No___________________________

2. Describe how information requests are handled. Address such issues as response times, inquiry mediums, customer service staffing and level of detail available.

3. How are your bank manpower resources structured for servicing the account?

Is your cash management area separated from the account officer?

4. Has the Federal Reserve introduced any policies or issued any statements in the last year which might impact either your bank’s ability to provide controlled disbursements or the benefits of this service to its users?

5. What sets your bank’s controlled disbursement services apart from your competition that provides a similar product or service.