G U.S. Bank Technical Requirements Submittal - RFP 28238-BD Sec 6.0.pdf

Attachment B: Technical Requirements Response Sheet RFP 28238-BD: Enterprise Banking Services

INSTRUCTIONS

For each requirement below, Proposer must provide a complete and accurate response. Omission, inaccuracy, or misstatement may be sufficient cause for rejection of the proposal or cancellation of the resulting Contract.

eSUPPLIER SUBMITTAL: The Technical Requirements Response Sheet (Attachment B) shall be uploaded with the Proposer’s responses into eSupplier.

HARD COPY SUBMITTAL: The Technical Requirements Response Sheet (Attachment B) shall be organized in TAB 2 of Proposal Submittal.

PROPOSER’S COMPANY NAME: U.S. Bank National Association

SECTION SECTION 6.0 TECHNICAL REQUIREMENTS

6.1 GENERAL REQUIREMENTS

6.1.1 DATA CENTER, DISASTER RECOVERY AND HOT BACK-UP PROCESSING SITE

A. Proposer shall list the location of the data center(s) that would process the transactions for the EBS Contract.

B. Proposer shall describe any features that distinguish the reliability of the Proposer’s data center from others, including any standard industry ratings. Include a description of the power backup available at the data center(s).

C. Proposer shall describe their disaster recovery plan, including testing.

D. Proposer shall indicate whether or not a hot back-up processing site exists and describe its capabilities.

6.1.1 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.1”

A. Data Center location U.S. Bank uses two primary internal alternate data centers, which are geographically dispersed. The data centers that would process transactions for the Enterprise Banking Services contract are located in Olathe, Kansas and Chaska, Minnesota. Our two state-of-the-art redundant data centers operate 24/7 and consistently exceed our own high internal and external delivery standards. Additional facts regarding the sites are confidential; however, we can discuss sharing such information after executing a mutual non-disclosure agreement (NDA).

B. Data Center features After undergoing a rigorous certification process by the Uptime Institute, the leading data center rating organization, the Olathe data center was one of three facilities in the U.S. (and nine worldwide) that were awarded the Tier IV status. Olathe Business Center achieved the highest rating possible, and it exceeded the Institute’s stringent operating procedures, guidelines and criteria for operational sustainability. The strength of OBC distinguishes us from many competitors – only four other organizations worldwide have this rating, and no other U.S. financial institution has achieved this rating.

C. Disaster Recovery plan

U.S. Bank Enterprise Preparedness Program Overview U.S. Bank’s Enterprise Preparedness Program establishes and supports our organization’s Business Continuity and Contingency Planning Program. The program is designed to evaluate the impact of significant events that may adversely affect customers, assets or employees. This program helps ensure that U.S. Bank and its applicable affiliates can recover our mission-critical functions and applications, thereby meeting our fiduciary responsibility to our stakeholders and complying with the requirements of the Federal Financial Institutions Examination Council (FFIEC), the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC), the Financial Industry Regulatory Authority (FINRA) and the Office of the Superintendent of Financial Institutions (OSFI). In addition, we have met all recovery criteria as prescribed by the Interagency White Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System.

The U.S. Bancorp Board of Directors approves the U.S. Bancorp Enterprise Preparedness Policy annually, and key issues and status are reported to the Board and senior executives on a periodic basis.

Crisis Management manages and coordinates the enterprise response to adverse events that threaten to harm our organization, stakeholders, employees, assets or reputation. The enterprise response focuses on the safety of all employees, customers and assets of U.S. Bank; minimizing disruption of service and/or inconvenience to customers; returning to a business-as-usual state as quickly as possible; and limiting any potential liability of the organization.

Additionally, Crisis Management maintains situational awareness and facilitates crisis management planning, conducts training, tests, exercises and maintains the emergency notification system. Crisis Management oversees the information flow between our lines of business, tiered response teams and executive management. The tiered incident response teams consist of the following:

Executive Crisis Management team First Response Executive team International Response team Emergency Response team

The U.S. Bancorp Pandemic Preparation and Response Plan was developed in partnership with senior leaders and other critical support departments to prepare for the possibility of pandemic flu in the same way that we prepare for other events that could affect our employees, customers and communities. The plan was prepared in communication with public officials, pandemic planning experts, various state and local organizations, and other financial institutions and businesses. The plan augments procedures already in place as part of the existing Enterprise Preparedness Program and outlines strategies to mitigate the impact of a pandemic upon our company, employees and customers.

We have resources dedicated to the Enterprise Preparedness Program and detailed Business Continuity Plans and Disaster Recovery Plans for the restoration of critical processes, applications, infrastructure and operations. Key features of our planning process include:

Employee safety strategies and communications/notifications Systems and telecommunications accessibility Alternate physical site location and preparedness Emergency notification processes and systems

System and data backup and recovery Pandemic and high employee absenteeism

The Enterprise Readiness Services department coordinates strategy, planning, testing, reporting and monitoring of the U.S. Bank Enterprise Preparedness Program across our organization. The Enterprise Preparedness group has set forth guidelines which incorporate industry best practices for recovery of critical business units, recovery of technology, and emergency and crisis management response and integrates the program into the overall risk management framework.

Criticality assessments—The Criticality assessments are used in the determinations of business process and application recovery time objectives, which addresses impacts based on financial, operational, reputational and regulatory risk factors.

Business impact analysis (BIA)—The BIA measures the effects of resource loss and escalating losses over time in order to provide management with reliable data upon which to base risk mitigation and continuity planning. BIA is reviewed biennially in conjunction with plan.

Threat vulnerability assessment—Our Enterprise Preparedness Program utilizes a Threat Vulnerability Analysis (TVA) process, biennially, to assess the risk of major natural hazard events and the impacts of those events on our corporate locations and the mission-critical processes/technologies executed at those locations. This analysis drives strategic recovery planning for continuity of operations for these processes and technologies at the selected locations. The planning process assists in mitigating the potential concentration risk exposure of a single natural hazard or man-made event to any particular location or process.

Business continuity, disaster recovery and vendor service plans—The plans are a documented collection of procedures and information that is developed and maintained to enable us to provide products and services at an acceptable predefined level in the event of a business, technology or third--party disruption. Recovery plans are reviewed and approved by senior management biennially at a minimum, or as changes occur to mission-critical functions and applications or as a result of issues discovered during exercises/tests.

Exercising/testing—All aspects of the plans are exercised/tested in accordance with regulatory requirements and U.S. Bank Enterprise Preparedness Policy guidance, and to demonstrate the level of recoverability. This includes plan activation simulation, including recovery strategies, crisis management and response, business continuity processes and critical infrastructure disaster recovery. Key mission-critical applications are exercised on a quarterly basis. Business Continuity Plans are exercised on an annual basis. Mainframe data is mirrored and replicated to the hot site, and server backups are stored off-site in a secured climate-controlled environment. All exercise testing is measured and reported with identified issues documented and remediated.

Audit—Annual internal audits and periodic OCC/Federal Reserve exams are conducted on the U.S. Bank Enterprise Preparedness Program.

Board of Directors Updates—The Enterprise Preparedness group provides annual updates at a minimum on the status of our Enterprise Preparedness Program to the Audit Committee of the Board of Directors of U.S. Bancorp.

Employee training and awareness—Employee training and awareness includes biennial training courses, evacuation procedure awareness and identifying employees’ roles and responsibilities during an adverse event. Clear communication during an event is vital. Employees who support mission-critical operations and technologies are trained through participating in functional exercises of recovery plans.

Our Business Continuity Plans are developed and maintained to address recovery strategies for such events as: pandemic/high employee absenteeism, technology outages, natural hazard impacts, etc. Below are examples of what might occur during an interruption of normal business operations.

In the event a business site becomes inaccessible, we presently employ the following recovery strategies for mission-critical functions:

Transfer work—Work is transferred to another location that does the same business function or has been cross trained.

Relocate people within business—Team members are relocated to another site.

Relocate to regional recovery center—A location, other than normal facility, will be used to process data and/or conduct critical or necessary business functions.

Vendor work area recovery—An external site will be used for the recovery of mission-critical personnel and processes utilizing a third party owned location.

Work from home—Team members will work from home on a bank-owned device.

In the event of a data center outage, we utilize an internal alternate data center, which is geographically disbursed, and utilizes near real-time data replication on an encrypted WAN connection to our recovery data centers within the prescribed recovery point objectives.

In the event of a major disaster at U.S. Bank that impacts your product or service, a member of the applicable product or service client support team will communicate with you.

Since it is impossible to anticipate every type of potential disaster, there can be no assurance that there will be no interruption of our business functions in all circumstances. The mission of our Enterprise Preparedness program is to minimize the impact of any disruption.

This overview is subject to modification by U.S. Bancorp at any time.

D. Hot site Yes. A hot backup system is running in the disaster recovery data center in Energy Park, Minnesota.

6.1.2 EXPERIENCE OF KEY STAFF

A. Proposer shall list the staff members that shall be assigned as the:

• Customer Service Ombudsman: Primary, as described in RFP Section 8.1.2, “Customer Service Ombudsman”

• Customer Service Ombudsman: Backup

• The Relationship Manager

B. Proposer shall describe the experience for each of the key staff listed above including:

• Years of experience in a similar capacity with other large government and/or large corporate banking Contracts (list each customer and the corresponding years of experience).

• The percentage of the position that shall be designated to support the State’s services (i.e. 50%, 100%).

• For each of the key staff listed above, the Proposer shall provide at least one example where they provided good customer service to a large government or large corporate customer.

*REFERENCE TABLE 6.1.2 at the end of this document.

6.1.2 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.2”

Please see ATTACHMENT B - 6.1.2 for a staffing matrix.

A. Staff members

Customer Service Ombudsman: Primary Nancy Ogas will serve as your primary customer service ombudsman for treasury management. Jake Pederson will be your primary customer service ombudsman for merchant services.

Customer Service Ombudsman: Backup Olivia Sexton will serve as your backup customer service ombudsman for daily questions and processing needs. Daniel Huff will be your backup customer service ombudsman for merchant services.

Relationship Manager Your overall U.S. Bank relationship manager is Teresa McBride. Amir Aslam is your relationship manager for merchant services.

B. Experience

U.S. Bank Nancy Ogas has served as customer service representative for the State for the last 11 years. For the first seven years, she was the secondary customer service representative. About four years ago, when the previous customer service ombudsman retired, Nancy became the primary customer service ombudsman for the State. Nancy has been with U.S. Bank for 33 years. As the primary customer service representative for the State, Nancy provides quick and accurate customer service to multiple state agencies, on any number of issues, almost daily. Some of the issues are routine, but many require working with various U.S. Bank departments to get an answer or come up with a resolution.

One such instance involved an agency that realized it had duplicated a large number of ACH transactions the day after Christmas. Nancy worked closely with the agency and our ACH Production group to reverse the transactions as quickly as possible. Many of the transactions went to another large government client, who was serviced by a different U.S. Bank Commercial Customer Service (CCS) site, so she worked with that site to get their client to return the transactions.

Another situation arose when the State of Wisconsin was expecting an incoming wire related to a high-profile issue. The wire had to be received before the end of the business day. The sender said the wire had been rejected by U.S. Bank and returned to their bank. With minutes to spare before the wire cutoff time, the State reached out to Nancy, who acted quickly. She contacted the Wire department to get more information and discovered the sender was using an incorrect routing number. She then relayed this information to the State, who provided it to the sender. The wire was successfully received just before the cutoff time.

Olivia Sexton has been with U.S. Bank for six years and has served as Nancy’s backup for one year. Nancy and Olivia are part of a team of CCS bankers available Monday through Friday from 7 a.m. to 7 p.m. CT. Olivia has assisted the State with balances and check filters information each quarter. She is contacted regularly by multiple state agencies and assists them in a timely and efficient manner, ensuring requests are completed by deadlines. For example, Olivia assisted with a large wire that was supposed to fund another U.S. Bank account. The wire needed to get into the account same day, but none of the signers were available. She assisted with an exception process and was able to get the wire out same-day before the cutoff.

Teresa McBride is the State of Wisconsin and the University of Wisconsin’s relationship manager. Teresa has been in this role for more than five years and has a thorough understanding of the State’s requirements. She has spent the last 13 years in the Government Banking division as a relationship manager for large public sector entities in Wisconsin. Teresa has been with U.S. Bank for 32 years. Prior to joining the Government Banking division, Teresa worked in the International division in a variety of roles. During those years, she was the area manager for Latin America, Africa and the Asia Pacific region. In her role as area manager, she underwrote and administered our credit extensions and managed our correspondent banking relationships in those markets. She was also in charge of marketing trade services products and trade finance products to our large corporate clients, and she spent a few years in the Structured Trade Finance group where she was responsible for global origination of structured trade deals. Teresa received her MBA from the University of Notre Dame and her undergraduate business degree from the Universidad de Lima in Lima, Peru.

Teresa has successfully managed large relationships throughout her 32-year career at U.S. Bank. She values her client relationships with her clients and collaborates with them effectively when issues arise. One example of good service happened when one of Teresa’s large clients had check fraud in their account. Checks had been altered and presented for payment at various banks. Teresa worked tirelessly with the banks of first deposit to recover the funds as quickly as possible. She worked with the legal and fraud departments of the banks involved and communicated with them repeatedly on behalf of her client. After a couple of months, the total amount of all the checks (more than $3 million) was recovered, and the client did not incur any losses.

Elavon Jake Pederson, operational account executive, joined Elavon in 2014. During his tenure, Jake has served in customer care, our technical support division and our MSP/partner support group. Jake has been managing the State and University relationship for Wisconsin for the past three years. He has worked on several projects for the State; for example, he assisted with the implementation of FuseBox. Jake dedicates about 40% of his time to managing the State but is available anytime the State requires assistance. He has received several awards during his career at Elavon and was selected three years in a row among his peers to go to Nationals, a celebration for Elavon employees who exemplify the values of Elavon and U.S. Bank.

Daniel Huff began his career with Elavon in 2015 as a client account manager for the Bank of the West division, managing more than 3,000 accounts. In this role, Daniel was recognized for his customer satisfaction and exceptional retention level. Daniel transitioned into his current operational account executive role in March 2019, where he also manages other large government accounts, such as the State of Texas and Miami- Dade County.

Amir Aslam, strategic account client executive, is a seasoned professional with more than 20 years of experience in finance, marketing, business development and relationship management across multiple industries. Over the course of his career, Amir has worked within several major U.S. banks and has also held several executive positions for companies in the United Arab Emirates (UAE) and Gulf Cooperation Council (GCC). Amir has successfully led product implementations, reengineered internal operations and helped businesses expand into international markets. He joined Elavon in 2011 and transitioned into his role as a strategic account client executive in 2014. In his tenure at Elavon, Amir has managed large government entities across the Midwest. His most notable customer service experience was when a particular state did not have the resources to implement several terminals across one of its cities. Amir personally visited the state and assisted the locations in their deployment efforts. Amir resides in Las Vegas and holds a bachelor’s degree in business administration, marketing management, finance and corporate management from California State University, Hayward.

6.1.3 RESPONDING TO SERVICE PROBLEMS

Proposer shall describe its procedures for receiving and responding to reports of service problems from the State during and outside of normal business hours.

• Include procedures for receiving, classifying, escalating, distributing and responding to problems reported through a customer service call center or similar facility.

• Include any implemented standards for responding to issues within a certain timeframe.

6.1.3 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.3”

If an issue requires escalation and more detailed second level support, your Commercial Customer Service (CCS) banker assigns the issue to an operations or technical area to facilitate the resolution through our call tracking system.

Should further escalation be required, the CCS banker escalates the issue to their team leader or CCS site manager, who works directly with escalation contacts for all operations and technical areas. Your relationship manager will be part of this process. Senior management team members meet each Friday to address and solve escalated issues, keeping ownership until the root cause is determined and resolved. The three-tier escalation process is as follows:

First level: Commercial Customer Service When the State first identifies an issue, your first step is to report it to your customer service ombudsman Nancy Ogas in CCS, who will enter it into our call tracking system and attempt to resolve it. If she is unable to resolve the issue, she escalates it to a product-specific Level Two support team.

Second level: escalation to appropriate operations/implementation managers Level Two support team resolves issue and updates tracking data, or if not resolved, interested parties are brought together to assist in resolution. Parties could include:

CCS team leader or site manager Relationship manager Treasury management sales consultant Treasury management support manager Operations manager

Third level: escalation to senior management If the issue is still unresolved, it is escalated to senior management. Reasons for escalation at this stage include:

SECTION SECTION 6.0 TECHNICAL REQUIREMENTS

Issues with unacceptably prolonged closure.

Issues for clients experiencing abnormally high quantity and/or frequency of service quality or system performance issues.

Chronic, recurring issues.

Issues that risk or may risk the client relationship.

The issue is escalated by an appropriate manager (as listed in Level Two) sending an email summarizing the situation to the Operation Servicing Issues group. An appointed senior management banker will then log the issue and engage appropriate operations (or other groups) in the research and resolution of the issue.

All open issues are reviewed in the Treasury Management Operations Service Quality meeting every Friday.

The purpose of the meeting is to review actual performance relative to all operations and IT service level agreements (SLAs). SLAs relate to system availability, accuracy and responsiveness. IT and operations managers speak to causes and remedial actions in process relative to missed SLAs.

6.1.4 A PROVEN PERFORMANCE RECORD FOR STATE BANKING SERVICES CONTRACTS

Proposer shall list all of the state government banking contracts that it was engaged in during the period of July 1, 2013 to June 30, 2018.

For each state contract listed, the Proposer shall list in tabular format:

• The state.

• The state agency signing the contract.

• Each of the service areas provided that relate to this Section (i.e. Deposit, Check

Processing, Disbursement, EFT, E-Payment Gateway, Merchant Processing and Information Reporting).

• The duration of the contract.

Confidential

6.1.5 THIRD-PARTY PROCESSORS

Proposer shall describe the role of any third-party processor or other to be used by the Proposer in providing the services listed within this Section.

• Include the name of the Vendor, the service(s) they shall provide, and the number of years they have provided the service(s) to the Proposer.

6.1.5 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.5”

U.S. Bank is not specifically contracting with any third-party subcontractors to fulfill any portion of the required scope of services for our response to the State’s RFP.

However, U. S. Bank does purchase services and/or software from several third-party vendors to provide portions of services to all our clients related to several products. Our third-party vendors are long-standing partners who work alongside us to provide you with the highest levels of customer service. They are held to the same standards as internal U.S. Bank resources; are well-vetted; and provide reliable, responsive services to our operational team. We are completely transparent about who we partner with to provide the full range of services you require, and we work with our partners, listed below, to ensure they understand and fully support all aspects of your program, including flowing down applicable portions of the contract and monitoring daily activities. Oversight of these subcontractors is maintained by both our operational teams and our Third-Party Risk Management team. All third-party vendors are subject to rigorous initial and annual audits conducted by our Third-Party Risk Management team who enforces not only U.S. Bank security and privacy standards, but standards imposed by the Office of Comptroller of the Currency.

Our vendor partners include:

For our remote deposit service, called On-Site Electronic Deposit, we partner with Deluxe Corporation

(f.k.a. RDM Corporation) for our client-facing user application and Electronic Deposit Manager (EDM) system for administrative, reporting and image retrieval access. Although we use Deluxe’s base software for On-Site Electronic Deposit, U.S. Bank has significantly enhanced this software – adding millions of dollars of upgrades to it, making its operations significantly different than other users of Deluxe’s base software.

U.S. Bank has partnered with Alacriti Payments, LLC, who provides the development, hosting and processing services for our eBill Service. We are excited about this partnership, which is new this year.

U.S. Bank eBill Service will replace our existing E-Payment Service and provide an enhanced product to the State. We anticipate this solution conversion to Alacriti will take place over the next 12–18 months, working in coordination with the State and your IT team.

For our ReliaCard Prepaid card services we partner with:

• Alorica, Inc. as our call center support provider.

• Enacomm, Inc. as an IVR support provider.

• Fiserv Output Solutions as our card fulfillment provider.

We partner with Early Warning Services, LLC for our account verification services.

Incedo, Inc. is our partner for Payee Choice service for payment management website hosting.

The vendor that hosts our Cash Concentration platform is FIS (formerly Metavante). They provide the IVR, voice and data exchange infrastructure, in addition to hosting the platform.

Apex is a business partner who provides support for our check printing services.

6.1.6 INTEGRATION OF BANKING SYSTEMS WITH PEOPLESOFT

On October 1, 2015, the State implemented PeopleSoft’s Financials and Supply Chain Management (FSCM) version 9.2.

Proposer shall describe in detail, how it assisted three large government and/or corporate clients in maximizing cash management efficiency between the Proposer’s systems and PeopleSoft.

If the Proposer has not worked with a PeopleSoft Client then describe how the Proposer worked with a client with a different ERP system.

Proposer shall include the following elements within their response:

• The name of each client.

• The time period that the Proposer worked with the client.

• The version of PeopleSoft FSCM the client utilized.

• Specific system features, functions, data files, etc. provided by the bank’s systems, and how they worked with the PeopleSoft system to provide greater cash management efficiency, and to save costs.

6.1.6 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.6”

U.S. Bank uses various PeopleSoft software platforms in more than 41 applications, giving us cause to integrate file transmissions to and from organizations such as Taleo, Total Systems Services (TSYS), Alight Solutions (f.k.a. AON Hewitt/Hewitt Associates), Blue Cross Blue Shield of Minnesota – St. Paul, Egencia and Expedia, Inc. We have also worked with hundreds of clients using various PeopleSoft platforms, and we successfully integrate data transmissions and online interfaces with them routinely.

Project #1: State of Wisconsin Below describes how U.S. Bank was able to support the State’s conversion to PeopleSoft in 2014–2015:

When the State was updating their system to PeopleSoft in 2015, U.S. Bank provided full support. There were a total of 14 transmissions, both inbound and outbound. Some of these transmissions were new and required setup, and those that were existing required testing with various changes. The new services included two BAI files, ACH (inbound and outbound), ARP (inbound and outbound) and a new lockbox with transmission. The Department of Health, Department of Administration and Department of Agriculture were part of this project, as it affected their treasury management processing. U.S. Bank created a comprehensive project plan, outlining the service needs, identifying responsible parties for each task as well as a timeline. The plan clearly outlined key steps and milestones towards each product’s successful implementation. U.S. Bank held weekly calls with stakeholders from U.S. Bank and the State to discuss the progress of the implementation and resolve any outstanding issues. Rita Patel from our operations group worked very closely with the State – even outside of the weekly calls – to ensure the services were implemented successfully. The State’s Treasury department, and especially the IT staff, were very complimentary of U.S. Bank’s diligence in completing and testing the State’s PeopleSoft files. The State expressed their appreciation of the “hand-holding” and U.S. Bank’s attention to detail.

Based on this experience, our ability to provide new and existing services since the State’s conversion to PeopleSoft in 2015 and our work implementing services for numerous other clients using PeopleSoft software, we are confident in our ability to work with the State to establish future services with proficiency, timeliness and a thoughtful, effective cost assessment for the most efficient implementation and operations.

Project #2: Fidelity Investments - Boston, Massachusetts We transitioned Fidelity’s banking services from another institution in 2012. For automation and efficiency of data reporting and ACH file transmissions we integrated to their PeopleSoft ERP system over 22 file transmissions supporting investments, information reporting, ACH, payroll and fund services. The project took approximately 12 weeks. By ensuring we held weekly project implementation meetings, assigned roles and responsibilities through a transition project plan and had our IT teams working directly with each other, we were able to successfully keep the project on task and on time. Integration to PeopleSoft occurred with no adjustments or problems.

Project #3: Commonwealth of Pennsylvania Department of Labor and Industry (the Commonwealth) We implemented the Commonwealth’s unemployment ReliaCard program interfacing to PeopleSoft software in 14 weeks. By creating concrete groundwork, we were able to gather information upfront and throughout the entire implementation process that aided both teams in breaking down potential barriers and avoiding delays. We supported the entire process with coordinated weekly status calls, ongoing testing, troubleshooting and communication strategy discussions. The project has been running smoothly since implementation with only minor adjustments thereafter. The implementation of the unemployment insurance card program has saved the Commonwealth more than $1 million.

6.1.7 TRANSITION PLAN

THIS QUESTION IS NOT SCORED but shall be utilized in the event of a transition.

The State expects the Proposer to take a lead role in transitioning existing State Agency banking services to their systems.

Proposer shall provide the following information within a Transition Plan:

• An outline of the strategic approach to the transition activities, including the sequence that the services should be transitioned in order to maximize efficiency.

• A detailed description of the recommended implementation process, including testing and a draft implementation schedule.

• The organizational structure of the Proposer’s transition team as well as the desired management and staff from the State Agencies.

• The operational tasks, including key deadlines and timelines of critical transition activities.

The plan shall describe any other key aspects of a successful transition that the Proposer is either requiring or recommending as part of the Proposal.

6.1.7 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.1.7”

If the State chooses to retain U.S. Bank as your current banking services provider, transition will be minimal.

The new contract will essentially mean business as usual for the State for most of your existing banking services – you will not need to invest additional time and resources to a conversion process. Instead, given our familiarity with the State’s current systems and processes, this contract renewal time would be ideal for the State to choose to spend your valuable time and resources in reviewing processes and services that create additional value, increase efficiencies or save money for the State and your agencies. Included in our recommendations are value-added enhancements such as the use of Focal Point Plus depository account structure setup to:

Reduce the number of reconciled accounts.

Provide centralized or decentralized returns processing.

Enable location identifiers to automatically be associated to every transaction without the use of expensive MICR encoded deposit tickets.

Enable agency-specific segregated online transaction information reporting.

Other services outlined throughout this proposal for the State to also consider during the new contract that do not require any specific time period to implement include potential use of ACH account validation, payee positive pay, outsourced payables, Supplier Prefer Pay, Payee Choice and VantagePoint™, our integrated receivables solution.

Further enhancements include using Controlled Disbursement accounts to take advantage of same-day positive pay, which provides review and correction of presented items before posting to your account. This same-day review of items before posting to your account significantly reduces time spent in post processing adjustment clearing, which can take up to two or three days. With more accurate funding, your Controlled Disbursement/Funding accounts will not be overdrawn due to previous day adjustments posting to the account and not included in presentment totals. Furthermore, check image details can also be corrected before they are posted, which provides for easier image retrieval when searching for an item because the check image details match the posting information. Although our accelerated same-day fraud detection has a shorter review period (from 1 to 3 p.m. local time), the State is provided an extra day to review exceptions should it be needed. Items reviewed the next day are treated like standard positive pay being reviewed, corrected and reconciled after the items clear your account. Adding our enhanced, more accurate, payee verification to your same-day positive pay would potentially limit some of your positive pay exceptions that currently occur. A combination of same-day positive pay, payee positive pay and teller positive pay is the best protection against paper fraud.

Additionally, implementing outsourced check payables with U.S. Bank would streamline the implementation of payee positive pay, because our checks are preformatted for acceptable input. To round out your fraud prevention suite of services, we recommend the State add e-check block to eliminate any potential fraud occurring through unauthorized web payments or IVR/phone transaction payments.

As we upgrade our E-Payment Service system to our new provider, we will work with the State to make it a smooth transition. You can continue using the existing E-Payment Service as we prepare to move you to our new eBill Service. With U.S. Bank, you will be afforded the time to make an orderly transition from our current E-Payment Service to the new eBill Service over a 12-18-month period. This gives you an extra year to transition, compared to the truncated timeline for moving to a new provider.

VantagePoint implementation For your VantagePoint implementation, we will assign a technical project manager (TPM) who specializes in lockbox and VantagePoint implementations. VantagePoint is designed to be very user-friendly and self-configurable. Your assigned TPM works closely with you to configure VantagePoint to meet your specific needs. This activity includes defining data fields you would like displayed, devising data extraction rules to pull needed data from the various payment types, creating business rules and work queues to support your processing flow (e.g., exception queues to resolve “problem payments” before a posting file is generated), and developing an output file and any other reports you desire. Much of the configuration work can be completed by your TPM if you give us appropriate permission.

The following timeline diagram illustrates the basic sequence of events and timing of each.

1-2 3 4 5 6 7 8 9 10 11 12

Requirements gathering 2 Weeks

U.S. Bank setup and configuration 4-6 weeks

Testing files and connectivity 1-2 Weeks

U.S. Bank migrate to production 2 Weeks Implementation timelines are finalized after all requirements are gathered.

ACH and wire transaction are made available in VantagePoint within two weeks of implementation initiation. Our practice is to activate the electronic payment reporting immediately so live transactions are available for use when creating the customized data extraction rules needed to obtain as much remittance detail as possible. Lockbox activity starts reporting into VantagePoint within four to six weeks of project initiation. For the forthcoming eBill Service VantagePoint reporting, the timing will be coordinated with the broader eBill Service implementation project. Should your eBill Service be live prior to VantagePoint reporting being available, we anticipate adding eBill Service to VantagePoint within two weeks of the option becoming available.

To help make the implementation of any new services the State chooses to implement with U.S. Bank smooth and efficient, we designed a custom, professional, project-based implementation process that includes a dedicated team of professionals who ensures a successful onboarding experience. During the implementation process, we spend the time and resources to build a solid foundation of understanding, training and coordinated delivery between the State, your agencies and U.S. Bank. As your dedicated business partner, we work from our strong foundational understanding of your organization and provide solutions to support your business needs. As always, you can continue to rely on our commitment, accessibility and responsiveness.

Your primary U.S. Bank contact will continue to be your relationship manager, Teresa McBride, who works with your U.S. Bank implementation team. This team includes the following individuals:

Implementation resource, Kamola Kasina—She plays a critical role in orchestrating the entire implementation process for both groups of multiple, newly implemented services and one-off solutions.

She is your primary contact during this phase. She distributes and obtains appropriate documentation from your organization to implement new services; works closely with various operations departments within U.S. Bank; and coordinates the technical team for system testing and training. Her level of experience and commitment ensures your implementation is accurate and is completed within the established timeframes.

Treasury management consultant, Adrienne Edwards—She works with your organization to identify the appropriate solutions to help you manage cash and improve efficiencies. She also keeps you informed of new or emerging technologies, which may impact the way you do business.

Treasury management associate, Roxanne Shain—She works closely with Adrienne to establish the identified products and services.

Although there are many people involved in implementing most treasury management services, you will always have one contact you can call with questions during your implementation process – your implementation resource – and your escalation point is always your relationship manager. After successful implementation, your designated Commercial Customer Service (CCS) team takes over ongoing product and account support.

The time it takes to implement services varies by service but is estimated to be between three days for account opening to six to eight weeks for set up of transmission services. Please see Attachment B - 6.1.7 for a sample implementation schedule and lead times for recommended service enhancements. The process for establishing products and services with us may consist of the following phases:

Scheduling a discovery meeting to ensure we have an in-depth understanding of your workflows and related cash flows to appropriately finalize the solution set.

Gathering pertinent information necessary to complete documentation to establish accounts and implement services. Documentation is prefilled by us where possible.

Obtaining all applicable documentation and required account setup forms, processing information and data questionnaires. Thereafter, we will send you all applicable service agreements, user guides and other product use and training materials as necessary.

Completing the agreements and/or applicable questionnaires and returning them to the implementation resource marks the start of the service setup.

Assembling the implementation team, who works with your employees throughout the process.

Developing an implementation strategy designed to achieve your specified production date.

Coordinating a kickoff meeting during which key project stakeholders from U.S. Bank and the State are identified, documentation is presented for execution and the preliminary timeline is discussed and agreed upon.

Facilitating weekly touch point meetings with key stakeholders throughout the process to ensure benchmarks are on track and any issues are quickly resolved.

During setup, we test all required data transmissions for you:

• U.S. Bank first tests for connectivity through a telecommunications handshake.

• Next, the State’s test files are transmitted for each applicable service to ensure the data is properly received.

• Upon successful testing, we select a production date.

Establishing user training plans, which ensure all users have the required training and help guides.

Merchant Services – Elavon As we are the State’s incumbent provider, you will save on time and costs associated with moving to another provider. No new implementation plan is needed, and the State will not have to deal with disruptions to your merchant card acceptance environment.

6.2 DEPOSIT AND FUNDS AVAILABILITY

6.2.1 BRANCH LOCATIONS

State Agencies currently make deposits to approximately 584 bank accounts in approximately 108 cities throughout the State.

Proposer shall provide a list showing each staffed branch location within the State of Wisconsin.

The list shall be in an MS Excel worksheet, and shall include the following separate fields:

• City where branch is located.

• County where branch is located.

• Address of branch location.

• Whether deposits made to an account at that branch location can be zero-balanced to a concentration account.

Proposer shall provide the location of the processing facility that shall be used for the large cash letter deposits delivered from State Agencies located in Madison, Wisconsin and the organizational structure of the Proposer’s transition team as well as the desired management and staff from the State Agencies.

6.2.1 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.2.1”

U.S. Bank has installed common processing platforms across all markets for key depository services.

Authorized employees in all locations can access client account information from the DDA, deposit reconciliation, returned items, teller lobby and billing systems. Our national processing capabilities allow the State to make deposits to any account at any branch in all the states served.

Please refer to Attachment B – 6.2.1 for a Proximity Study outlining the location of U.S. Bank branches in the state.

Currently, the State delivers deposits in a sealed bag to the U.S. Bank Capitol Square branch in Madison prior to 5 p.m. CT. The branch then forwards the sealed bag to our deposit processing location in Milwaukee the same day. The branch deposits from the Madison area arrive in our Deposit Processing department by 9:15 p.m. CT, and the deposits receive same-day credit. We will continue to offer the same service to the State.

Deposits made to any standard demand deposit checking account at any branch location can be zero-balanced to a concentration account.

Checks collected by State and various agencies are received at U.S. Bank Item Processing throughout the day from our lockbox departments and in the evening via the State’s courier delivered to our Madison office location. U.S. Bank couriers then pick up these items and deliver them to our item processing operations located in Milwaukee. Deposits from the State are checked against the log, and any discrepancies are reported to the State the following morning. We hold open the last check run for the day until the State’s deposit arrives from Madison.

Processing of the deposits includes:

Encoding and balancing.

Image capture.

Item repair.

Sorting by clearing channel:

• On-us.

• Direct send.

• Federal Reserve.

• Image exchange.

Packaging for physical delivery of items.

Transmission of images for image exchange.

A process flow overview is shown below highlighting the current large cash letter check deposit processing deposit flow.

Returns processing and research is conducted in our St. Paul, Minnesota offices for items cleared through our Milwaukee item processing site.

When the State is able and willing to deposit your items via image, using full image cash letter services – whereby the State scans your own checks, capturing images and sending the data file to U.S. Bank for check processing using X9-100 data format – we are ready to accept and forward for collection those items eligible to be cleared via image and create IRDs for the residual.

6.2.2 DEPOSITS THAT CANNOT BE MADE DIRECTLY WITH THE ENTERPRISE BANK

A. Current Process State Agencies have the need to deposit cash and checks received at a variety of point of sale locations around the State. If there is not an Enterprise Bank branch located nearby, the Agency shall establish an account with another financial institution. Currently, Agencies maintain a DDA account at these institutions, and periodically write a check on the account for deposit to the State’s cash concentration account through their central fiscal office.

Although paper-based, this process allows the local Agency office to control the timing of the transfer, so that it matches the reporting that they shall do with the central Agency office. The central Agency office receives the check and initiates the accounting transactions to record the receipt and deposits the check with the Enterprise Bank.

B. Alternative: Innovative Approaches The State is interested in alternative processes that shall allow for the electronic transfer or sweep of deposits made at local financial institutions to the Enterprise Bank on a day chosen by the local Agency staff. The process shall allow the central office to receive a daily report showing the amounts to be transferred by Agency location. Also, the Proposer shall describe any innovative approaches for handling daily cash deposits where there is not a nearby bank location.

Proposer shall describe the process that they recommend for addressing cash and check deposits made at these remote locations.

6.2.2 RESPOND HERE OR ATTACH AND CLEARLY LABEL AS “ATTACHMENT B - 6.2.2”

Current process For deposits that need to be made at other financial institutions where U.S. Bank does not have a branch nearby, we recommend the State use On-site Electronic Deposit service for depositing checks collected at any remote agency or office location. These deposits can be made into a single depository account using a deposit identifier (or location code) or deposited into separately identified accounts as preferred by the State. This would leave only the need to deposit cash into other financial institutions. This cash can easily be consolidated via our cash concentration services, as you are currently doing today.

Cash concentration U.S. Bank offers a robust cash concentration and disbursement system hosted by one of our vendors, who has specialized in providing these services for more than 20 years. We offer both automated and manual cash concentration services to meet your needs. With automated cash concentration and disbursement, transactions are automatically calculated based on account balance information obtained from the bank(s).

You can set an amount the system will leave in the account. The ACH file is automatically sent to U.S. Bank for processing. Some clients prefer to use manual cash concentration, where the remote location enters in the daily deposit amount via voice, IVR or web. The system then generates an ACH file to debit the remote location accounts and credit the concentration account. Manual cash disbursement allows you to initiate ACH credit transactions back to the remote location accounts.