agenda page s y s t e m & p r o c e s s i m p r o v e m e n t s t r i c t l y p r i v a t e a n...
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Agenda
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S Y S T E M & P R O C E S S I M P R O V E M E N T
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Copyright 2014 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC
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Texas Tech University System – Current
State university system
Four components: Texas Tech University TTU Health Sciences Center Angelo State University TTUHSC at El Paso
Relatively recent growth – Angelo State added in 2008, with TTUHSC at El Paso split off as a separate entity in 2013
Thirteen total campuses; nine requiring depositories
Nine different depository relationships
TTUS CampusesTTUS Campuses
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Request for Proposals
Impetus?
Survey marketplace for availability of new technology (8 years since previous RFP)
Best Practices – go out every 5-7 years
Opportunity to reevaluate processes, looking to eliminate redundancies & paper
Desired Outcomes
Approved list of available depositories
Components able to choose from approved list
System-wide evaluation & approval, with System Treasury, System CFO, component CFOs/Controllers on evaluation committee
If all components choose the same depository, that’s the best outcome from a Treasury perspective.
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Request for Proposals - Objectives
1) Leveraging System scale on fee & rate pricing
2) Consistency of processes across System
3) Better cohesion among System components
4) Single standard contract for services
5) Simplification for Treasury management
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Market Advantage & Economies of Scale
Before
9 separately negotiated contracts, many standard commercial templates
RFPs only previously applied to Lubbock & San Angelo campuses, and were done separately
Goal
Smaller and/or more remote campuses benefit from System fee schedule
Easier to monitor Account Analysis compliance with contracted fee schedule
Component ability to add services in future with costs known up front
Reduction of overall System costs
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Consistency of Processes
Before
Multiple departments reconciling accounts, some manually
Multiple online portals – non-standardized user administration, multiple secure tokens for users, varying levels of approval required for transactions
Confusion among departments on who to contact for service, and among bank personnel on approved contacts
Accounts opened by related groups under System EIN
Goal
Automated reconciliation for all accounts
Centralized online administration with dual control for all non-repetitive transactions
Centralized points of contact within each organization
Improved fraud prevention and detection
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System Cohesion
Before
Component fiscal operations very decentralized
2 of 4 components added fairly recently, and have operated autonomously since addition
Goal
Increased view by components as being part of the System, utilizing its expanded resources & scale – banking is one of few services able to be shared across the System
First step towards having consolidated operating investment pool and accounting systems
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Legal Impact
Before
9 separately negotiated contracts, many standard commercial templates
No standard review over contracts
Goal
Standardized services available and approved, allowing components to choose a la carte
Contracts are in compliance with state statutes & guidelines
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Treasury Simplification
Before
Collateral spread across several accounts
Multiple online portals – cash monitoring & movement harder to analyze
Aggregation of cash balances for reporting performed separately by staff
Goal
Centralized collateral management
Single portal (or reduced number) for managing & reporting cash
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Barriers to adoption
Banks have traditionally had branches in the city where the client has operations
Hard to overcome perception & comfort level
Possible Solutions: Remote check scanning Smart safes Did maintain local bank relationships at
Lubbock & San Angelo campuses
Previous depository relationship lasted 14 years
Relationship was first where System utilized data feeds Customization present in most processes Staff only seen one way of operation
Solutions: Process examination after long period
reveals efficiencies – both from partner & within System; actually an opportunity
Technology – both to push processes down & share information
No branch depositsNo branch deposits Change!Change!
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