Electronic Funds TransferElectronic Funds TransferEnrollment ProcessEnrollment Process

For agencies and eligible entities desiring to For agencies and eligible entities desiring to participate in the State Controller’s Master participate in the State Controller’s Master

Services Agreement (MSA)Services Agreement (MSA)Between the State of NC and Bank of AmericaBetween the State of NC and Bank of America

Dated June 24, 2013Dated June 24, 2013Contract Number ITS-007062Contract Number ITS-007062

Enrollment Process StepsEnrollment Process Steps

Step 1.Step 1. Identify EFT ProjectIdentify EFT Project

Step 2.Step 2. Execute Enrollment FormsExecute Enrollment Forms

Step 3.Step 3. OSC Acts on RequestOSC Acts on Request

Step 4.Step 4. DST Acts on RequestDST Acts on Request

Step 5.Step 5. Bank of America Acts on RequestBank of America Acts on Request

Step 6.Step 6. CPS Involvement & TestingCPS Involvement & Testing

Step 7.Step 7. Establish Fiscal ProceduresEstablish Fiscal Procedures

Step 1 – Identify EFT ProjectStep 1 – Identify EFT Project Obtain information about EFT (ACH) from OSC’s Web siteObtain information about EFT (ACH) from OSC’s Web site

E-Commerce Statutes and PoliciesE-Commerce Statutes and Policies EFT Overview and EFT-101EFT Overview and EFT-101

Identify potential payment applications for ACHIdentify potential payment applications for ACH Outbound Transactions (Vendor payments, payroll, etc)Outbound Transactions (Vendor payments, payroll, etc) Inbound Transactions (ACH debits)Inbound Transactions (ACH debits)

Determine what mechanisms will be used to process ACH files Determine what mechanisms will be used to process ACH files Database of payee names and bank account informationDatabase of payee names and bank account information Method of transmission of ACH files to bank (CPS or direct)Method of transmission of ACH files to bank (CPS or direct)

Develop an internal statement of work, considering the program Develop an internal statement of work, considering the program requirements, work effort, cost and benefitsrequirements, work effort, cost and benefits

Obtain assistance from OSC – Use Project Implementation PlanObtain assistance from OSC – Use Project Implementation Plan Obtain assistance from ITS if CPS will be utilizedObtain assistance from ITS if CPS will be utilized Obtain approval from OSC if third party gateway is envisionedObtain approval from OSC if third party gateway is envisioned Determine project feasibility and obtain management approvalDetermine project feasibility and obtain management approval

Master Services Agreement (MSA)Master Services Agreement (MSA) Agency Fiscal Office reviewsAgency Fiscal Office reviews Legal reviews if deemed necessaryLegal reviews if deemed necessary

Agency Participation Agreement (APA)Agency Participation Agreement (APA) Allows for agency to participate in MSAAllows for agency to participate in MSA Executed electronically by Agency CFOExecuted electronically by Agency CFO Submitted to OSC for approval and obtaining of additional signaturesSubmitted to OSC for approval and obtaining of additional signatures

EFT Participant Setup FormEFT Participant Setup Form Provides OSC, DST, and Bank of America with information necessary to Provides OSC, DST, and Bank of America with information necessary to

setup ACH file transmission, bank settlement accounts, invoicing, setup ACH file transmission, bank settlement accounts, invoicing, statement rendering, etc.statement rendering, etc.

Executed by Agency CFO and submitted to OSCExecuted by Agency CFO and submitted to OSC Routing of Forms Upon ReceiptRouting of Forms Upon Receipt

OSC signs and routes APA and Setup form to DSTOSC signs and routes APA and Setup form to DST DST signs and routes APA and Setup form to Bank of AmericaDST signs and routes APA and Setup form to Bank of America Returned executed copies are received through DocuSignReturned executed copies are received through DocuSign

Step 2 – Execute Enrollment FormsStep 2 – Execute Enrollment Forms

Approves or disapproves of participationApproves or disapproves of participation Request additional information if necessaryRequest additional information if necessary Advises agency of approvalAdvises agency of approval Forwards appropriate forms to DST and Bank Forwards appropriate forms to DST and Bank

of Americaof America Involves CPS if necessaryInvolves CPS if necessary DST is administrator for CashPro On-lineDST is administrator for CashPro On-line

• Setups up agency users as specified on EFT Setups up agency users as specified on EFT Participant Setup FormParticipant Setup Form

• Advises agency users of User-ID, initial Advises agency users of User-ID, initial password, and instructionspassword, and instructions

Step 3 – OSC Acts on RequestStep 3 – OSC Acts on Request

Executes APA on behalf of the State TreasurerExecutes APA on behalf of the State Treasurer• Only if participant is an Agency depositing funds with the Only if participant is an Agency depositing funds with the

State TreasurerState Treasurer Authorizes Bank of America to establish a settlement Authorizes Bank of America to establish a settlement

bank accountbank account Ascertains if fees for account are to be paid by Agency Ascertains if fees for account are to be paid by Agency

or DSTor DST If a State Agency participant and If a State Agency participant and InboundInbound payments payments

• Assigns a CIT account on Core Banking System (CB$) for Assigns a CIT account on Core Banking System (CB$) for certifying deposits on CMCScertifying deposits on CMCS

• Advises agency via Official Depository Designation LetterAdvises agency via Official Depository Designation Letter If a State Agency participant and If a State Agency participant and OutboundOutbound payments payments

• Assigns an Electronic Warrant template number on CB$Assigns an Electronic Warrant template number on CB$• Allows for debit to disbursing/STIF account and funding of Allows for debit to disbursing/STIF account and funding of

ACH credit file on settlement dateACH credit file on settlement date

Step 4 – DST Acts on RequestStep 4 – DST Acts on Request

Executes APA on behalf of the bankExecutes APA on behalf of the bank Establishes file transmission profile for participantEstablishes file transmission profile for participant

• Performed directly with bank, orPerformed directly with bank, or• Performed via CPSPerformed via CPS

Setups up required bank accountsSetups up required bank accounts• Assigns a settlement bank account numberAssigns a settlement bank account number• Assigns a Returns account (If inbound ACH debit file)Assigns a Returns account (If inbound ACH debit file)• Advises DST of the account numbersAdvises DST of the account numbers• Sets up invoicing – to agency or DSTSets up invoicing – to agency or DST

Setups CashPro On-line for participantSetups CashPro On-line for participant• DST established as administrator; orDST established as administrator; or• Agency established as own administratorAgency established as own administrator

Step 5 – Bank of America Acts on Step 5 – Bank of America Acts on RequestRequest

If the Common Payment Service (CPS) gateway is to be If the Common Payment Service (CPS) gateway is to be utilized, participant should follow the steps outlined in utilized, participant should follow the steps outlined in the CPS Agency Work Plan Templatethe CPS Agency Work Plan Template

Participant conducts a Security Risk Assessment (SRA) Participant conducts a Security Risk Assessment (SRA) for the proposed Agency applicationfor the proposed Agency application

Participant submits the SRA to the Office of Participant submits the SRA to the Office of Information Technologies Services (ITS) as part of the Information Technologies Services (ITS) as part of the technical architecture review requirementstechnical architecture review requirements

ITS will advise of the approval of the SRA and arrange ITS will advise of the approval of the SRA and arrange for testing for testing

Agency develops its application, including interface(s) Agency develops its application, including interface(s) to CPS, and request ACH Profile set-up in the CPS test to CPS, and request ACH Profile set-up in the CPS test environmentenvironment

Agency documents test results and proceeds to next Agency documents test results and proceeds to next steps (Performance Acceptance Testing)steps (Performance Acceptance Testing)

Step 6a – CPS InvolvementStep 6a – CPS Involvement

At least two weeks prior to an application deployment, At least two weeks prior to an application deployment, the participant must develop an Acceptance Checklist:the participant must develop an Acceptance Checklist:

Test Plan / ScriptTest Plan / Script Security Risk Assessment (SRA)Security Risk Assessment (SRA) Internal Agency Policies and ProceduresInternal Agency Policies and Procedures

OSC reviews the checklist and supporting documents OSC reviews the checklist and supporting documents and approves deployment if no issuesand approves deployment if no issues

Participant migrates application into production, and Participant migrates application into production, and conducts “production verification” testconducts “production verification” test

Using a limited number of live transactions for at least Using a limited number of live transactions for at least two weekstwo weeks

Verify settlement of funds into bank accountVerify settlement of funds into bank account If production verification is adequate, participant If production verification is adequate, participant

opens (announces) the service to the public (if Internet opens (announces) the service to the public (if Internet application)application)

Step 6b – CPS Verification TestingStep 6b – CPS Verification Testing

Complete Internal Policies & Procedures TemplateComplete Internal Policies & Procedures Template Develop Fiscal Office proceduresDevelop Fiscal Office procedures

For outbound – Procedures for funding the settlement For outbound – Procedures for funding the settlement accountaccount

For inbound – Procedures for reporting receipt of fundsFor inbound – Procedures for reporting receipt of funds Procedures for obtaining “ACH Authorizations” from Procedures for obtaining “ACH Authorizations” from

payees / payorspayees / payors Procedures for “ACH returns”Procedures for “ACH returns” Procedures for reconciling settlement bank accountProcedures for reconciling settlement bank account

Verify connectivity to CashPro On-line to access Verify connectivity to CashPro On-line to access settlement accountsettlement account

If State agency, update Cash Management PlanIf State agency, update Cash Management Plan

Step 7 – Establish Fiscal ProceduresStep 7 – Establish Fiscal Procedures

More InformationMore InformationOffice of the State Controller Web SiteOffice of the State Controller Web Site

http://www.osc.nc.gov/SECP/index.html

Support Services Center

(919) 707-0795