S000000410 Banking Services Questions and Answers.pdf

Q # SUBJECT QUESTION RESPONSE

1 RFP Section 2.1.A Please confirm the anticipated average balances to be held in the APERS accounts.

We would anticipate the average balances for all accounts for each retirement system to be very small as our agency policy is that our Investments department sweeps our bank accounts on a daily basis to make sure all excess cash is invested.

They typically leave fairly small balances in these accounts on a daily basis in the event that a special retiree payroll is needed for some reason or other special unexpected payout. I would anticipate the total of all 12 bank account balances for all three retirement systems to remain under $80,000 going forward on a daily basis. As noted below our average balances have ran a little higher than this over the past year, but we plan to carry even smaller balances going forward.

2 RFP Section 2.1.A Are balances held in these accounts to be interest bearing? If so, do we need to provide an interest rate quote and where would we disclose that?

Interest bearing is not required as we typically maintain very small balances in these bank accounts as our Investments dept sweeps the depository account daily for excess cash to be invested.

RFP Section 2.3.E and Section 2.4.E Notification of enforcement action

In lieu of a certificate from the chairman of the board confirming that the financial institution is not under any regulatory action or providing immediate notice to the OSP of any formal enforcement actions, is it acceptable to the OSP to rely on review of required regulatory disclosures that Bank's makes publicly available, e.g. annual report and quarterly reports of Bank’s parent company? Such public reports provide comprehensive information on Bank, including disclosures and discussion of any material regulatory enforcement actions and investigations, and other matters as required and permitted by federal law.

See Revised Request for Proposal 04/28/2025 item 2.3.E. and 2.4.E.

4 RFP Section 2.4.D 6

What is the average collected balance for each of the following?

Arkansas Public Employee Retirement Services Arkansas State Police Department Arkansas Judicial Retirement System

The average collected balance for total of all bank accounts each system has over the last year has been running as follows: Arkansas Public Employees Retirement System - $120,000 Arkansas State Police Retirement System - $35,000 and Arkansas Judicial Retirement System - $10,000

5 RFP Section 2.8

Please clarify your requirement for how you anticipate conducting the "Account Validation". NACHA does not dictate specific validation methods, but this is typically accomplished through ACH pre-notifications. Are pre-notifications acceptable or do you have different requirements for validation services?

We would prefer a solution that verifies that the name and address on the account matches a value we provide, and provides a risk score to determine if the account is owned by the person we are transmitting funds to. This is currently done daily via batch process based on new and changed EFT instructions completed the previous day.

6 RFP Section 2.9.B 7 How many remote deposit machines do you currently have? How many physical locations have machines?

One remote deposit machine is all that is required and we only have one location.

RFP Section 2.11.E Financial institutions wires posting cut-off

Is it acceptable to the OSP if financial institutions wires made by the appropriate cut-off time will be posted by 5pm CT on business days?

Bank is happy to provide additional specifics about the applicable cut-off times.

See Revised Request for Proposal 04/28/2025 item 2.11.E.

8 RFP Section 2.12.C

This requirement mentions Controlled Disbursement reporting (presentments, etc). A controlled disbursement account has unique (and specific) functionality. It provides "pre-funded presentment totals" of the check items that will be paid against the account at the end of the processing day. Is true "controlled disbursement" functionality a requirement of your check disbursement process? If the bank cannot provide "pre-funding presentment information", will that disqualify us from consideration?

See Revised Request for Proposal 04/28/2025 item 2.12.C.

RFP Section 2.16.B Data Integrity/Security

Is it acceptable to the OSP if Bank will endeavor to meet the set notification time but remains subject to applicable law and Bank’s policies and procedures in the event of a known or suspected security breach or unauthorized data access? Bank will provide the OSP notice of any information security incident documented and verified by the Bank that impacts the OSP promptly following verification in accordance with its Information Security Program, a summary of which can be provided to the OSP, and in compliance with applicable law.

See Revised Request for Proposal 04/28/2025 item 2.16.B

S000000410 Banking Services | APERS Questions and Answers

10 RFP Section 2.16.G The RFP indicates that the contractor SHALL provide SOC reports. If we are unable to provide these audit reports will that disqualify us from consideration?

SOC reports are not required to be submitted with the RFP response; however, they are a mandatory requirement upon contract award.

The Contractor shall either provide the SOC reports or grant access to view them at that time.

Failure to provide or grant access to SOC reports upon award would disqualify the contractor from proceeding with the contract.

RFP Sections 2.16.K and L Data Integrity/Security

Is it acceptable to the OSP to rely on Bank’s Information Security Program, which at least meets or exceeds the financial services industry’s standards? Bank’s Information Security Program is designed based on reputable and well-recognized information security standards that may be based on the referenced standards or equivalents. Our Information Security Program is continuously updated and improved to address changes to security standards and risks applicable to the industry.

See Revised Request for Proposal 04/28/2025 item 2.16.K.

RFP Sections 2.18.E-G.

Staffing

Is it acceptable to the OSP if Bank will make every reasonable effort to quickly replace any Project Manager or other key personnel vacancy with guidance and input from the OSP, but generally reserves the right to make final decision on personnel selection in accordance with Bank’s policies?

See Revised Request for Proposal 04/28/2025 item 2.18.F.

RFP Sections 2.18.I-K.

Background checks

Is it acceptable to the OSP to rely on Bank’s criminal background check policies and procedures that are compliant with applicable federal banking law instead of providing any personal or sensitive information for audit purposes? Bank conducts a background check on all employees prior to hire as required by federal law. We are happy to share our criminal background check policy with the OSP upon request.

See Revised Request for Proposal 04/28/2025 item 2.18.I.

RFP Section 2.19.A Data Ownership

Is it acceptable to the OSP that only reporting prepared by Bank and provided to OSP will become OSP’s property? Bank retains its rights and those of its vendors to software and other technical data that it uses to provide services generally to its clients. Bank uses such software and data in accordance with its standard services terms, such as the Treasury Services Terms and Conditions, User Documentation, and related agreements.

2.19.A. contemplates only the State's data that is collected and stored by the Contractor. No mention is made and no right is claimed to any software or intellectual property of the Contractor, it's software providers, etc.

RFP Section 2.19.B Data sharing.

Is it acceptable to the OSP if State data collected by Bank may be shared with Bank’s employees, agents and service providers, such as accountants, attorneys and consultants, or as required by law, without obtaining express written consent?

Yes, this would fall under the provision of services anticipated by the RFP.

RFP Section 4.2.G Procurement Card Payment Method

Please clarify whether the OSP would like to use its procurement card as a payment method or utilize ACH as the exclusive payment method to make payments to Bank (RFP Section 4.2.B).

OSP requires vendors to utilize ACH as the payment method. Vendors shall register online and provide the necessary banking information to facilitate ACH direct deposits. The State does not anticipate using a procurement card for payments under this contract.

RFP Sections 4.2.I and 4.2.J

Please confirm our understanding that if Bank is selected to further proceed in the RFP process, there will an opportunity to discuss and further negotiate the legal contract as set out in SRV-1. If selected to further proceed in the RFP process, Bank will work with the OSP to negotiate a contract beneficial to both parties.

The State may be open to negotiating the non-mandatory terms of the SRV-1 during the Discussions phase. However, per Section 4.2.I.2.

"A Prospective Contractor’s proposal may be rejected if a Prospective Contractor takes exception to any terms, conditions, or Requirements in this RFP."

18 General Question Are the provisions in the contract NOT marked "non-negotiable" negotiable?

The State may be open to negotiating the non-mandatory terms of the SRV-1 during the Discussions phase. However, per Section 4.2.I.2.

"A Prospective Contractor’s proposal may be rejected if a Prospective Contractor takes exception to any terms, conditions, or Requirements in this RFP."

19 General Question Can you provide us with quarter end bank statements?

Providing these statements is not necessary as adequate information regarding average account balances and average estimated service activity has been provided

20 General Question Can you provide us with quarter end analysis statements?

Providing these statements is not necessary as adequate information regarding average account balances and average estimated service activity has been provided

21 General Question Can the proposer submit exhibits, or does all information need to be kept in the allowed two-page evaluation sections?

All information must be kept in the allowed two pages for each evaluation section. Per the Technical Proposal Packet, the Prospective Contractor must use the page limits as determined for each section. Anything else included (i.e., website links, exhibits, etc.) that will exceed the page limits set forth in the Technical Proposal Packet, will not be considered.

Official Solicitation Price Sheet

If we have additional line-item pricing related to the core services listed on the Official Solicitation Price Sheet, where would we list this pricing?

See Revised Official Solicitation Price Sheet 04/28/2025.

Bid Q&A 2