Investment Association NC Local Government Investment Association CONFIDENTIAL DRAFT

Agenda Introductions State of North Carolina Contracts ACH Overview CashPro Information Reporting Fraud Prevention / UPIC Contract Pricing The Players / Responsibilities Other Contract Technologies Electronic Data Interchange Debit / Prepaid Cards Purchasing Card / Epayables Questions

Introductions 3

State of North Carolina and Bank of America Presenters Amber Young Central Compliance Manager Statewide Accounting Division NC Office of the State Controller   Shannon Okine Specialized Banking Unit Supervisor Financial Operations Division NC Department of State Treasurer Gary L Clark Senior Vice President Senior Treasury Officer  Bank of America 

State of North Carolina Financial Contracts 5

Provider = Bank of America State of North Carolina Financial Contracts ACH Disbursements Provider = Bank of America Purchasing Card & Epayables Provider = Bank of America Merchant Services Provider = Suntrust

ACH 101 7

The ACH Process Local Government Entity 3RD Party ACH Gateway Local Government Entity Originating Financial Institution Creates ACH Files to send To Bank of America Processes On-Us Transactions Produces automated file for all other items to send to ACH CashPro OnLine ACH Initiation Wire Transfer Info Reporting ACH Reports ACH Network Payables Settlement Accounts Returns Recipients of Funds (Employees, Vendors) Receiving Financial Institution

ACH Transactions PPD - Prearranged Payment or Deposit (consumer) PPD+ - PPD Plus one addenda record (consumer) CCD - Cash Concentration or Disbursement (corporate) CCD+ - CCD Plus one addenda record (corporate) CTX - Corporate Trade Exchange (corporate) up to 9,999 addenda records POP - Point of Purchase (consumer) RCK - Re-Presented Check (consumer) WEB – Internet Initiated (consumer) TEL – Telephone Initiated (consumer) ARC – Accounts Receivable Entries (consumer)

CashPro Information Reporting 10

CashPro Online Overview CashPro Online Client Value Proposition Single sign-on portal to Payments, Information Reporting, Notifications, Trade and Foreign Exchange Latest technology – Web 2.0 Dashboards: Visibility of data customized at the user level Intuitive workflows that support customization Flexible reporting options with custom reports and formats Notifications available via e-mail, sms & fax Regionalization capabilities including local language support for 11 languages Dual administration & Multi-layer security Online University available 24/7 for access to virtual assistance, interactive training courses, user guides and other resources CashPro Online Client Value Proposition CashPro Online delivers simple, secure access and greater control over all the financial solutions your business uses, wherever and whenever you choose. “One Portal. One Password. Global Convenience.”

CashPro® Online – Information Reporting Configurable dashboard Online Balances – current day and previous day One click reporting – My Reports Advanced filtering and searching Customizable reports and downloads MultiBank reporting Transaction search capability Local Language user interface and data reporting capabilities eStatements eMail scheduling for Reports and Statements 365 days online history 18 months of online statements Export capabilities in csv, pdf, excel, XML, MT940 and others.

CashPro® Online - Payments Features Ease of creating payments User defined fields Straight through processing Depending upon the debit account selected and currency of the payment, CashPro® Online will automatically present the fields to be completed to ensure STP Single currency transactions Cross currency transactions Foreign currency transaction Smart Calendar Beneficiary emails Flexible payment approval options Import and export capabilities Standard and customized reports in various formats Supports 10 languages CashPro® Online – Global Payments Solution

Internet Phone In Person Training

Fraud Prevention 15

ACH Positive Pay With ACH Positive Pay, you receive online reporting of incoming ACH transactions that do not meet your authorization criteria, before the transactions post to your account. This early warning reporting allows an entitled user to pay or return incoming ACH transactions as they are received. Real time decisioning Ability to accept or reject ACH transactions from your unauthorized trading partners Helps with investigating potentially fraudulent items as they happen Real time notification of exceptions; cumulative reports Ability to view ACH exceptions as they are received Daily reporting provides an audit trail of daily authorization activity Self service online authorizations Authorization lists for your trading partners easily kept current allowing for up-to-date transactions

ACH Blocks Automatically reject ACH transactions received, such as those from unauthorized trading partners or intended for consumer bank accounts or all debits and/or credits. Operates automatically Establish block instructions on our system Based on your instructions, our system automatically rejects incoming transactions By using an automatic service, you save time No reconcilement impact Rejected transactions do not post to your account, so there are no additional transactions to reconcile Online convenience Rejected and paid transaction detail Block instruction detail

UPIC UPIC is a code assigned to a replace the bank account number during the processing of ACH credits. A UPIC is obtained by an ACH receiver, and provided to the ACH credit originator, so the originator may initiate ACH credits using a code, instead of a bank account number. Secure UPIC enables ACH credits, without revealing the receiving bank account number Convenient and efficient Reduce the risk of unauthorized debits to your account Mitigate the risk of fraud Increase ACH payment credits without distributing your account number Avoid divulging sensitive bank information Bank of America assigns one UPIC and universal routing number per Bank of America account number

Contract Pricing 19

Line Item Costs Per Unit Cost Annual Cost ACH Origination Services ACH Monthly Maintenance per Account $ 4.00 $ 5,272.00 A CH Credits/Debits/Prenotes Originated Annually $ .0048 $ 66,746.60 ACH Addenda Originated Annually $ .004 $ 1,514.75 ACH Origination Files Transmitted Annually via CPS $ 2.75 $ 825.00 ACH Origination Files Transmitted Annually non-CPS $ 29,700.00 Transmission Maintenance Fees for DCC Monthly N/A Transmission Maintenance Fees for Participant Monthly Other ACH Related Services ACH Returns Annually $ .50 $ 26,969.00 ACH Notifications of Change Annually $ 14,583.50 ACH Reversals Annually $ 7.00 $ 5,418.00 ACH Received Entries File Transmission Annually $ 3,225.75 ACH Received Entries Per Credit Item Reported Annually $ .01 $ 33,379.70 Settlement Account Services Bank Account Monthly Maintenance $ 8.00 $ 21,760.00 ZBA Account Monthly Maintenance $ 5.00 $ 5,645.00 Returns Handling Monthly Maintenance $ 1.00 $ 89.00 ACH Debit Block/Filter Monthly Maintenance $ 4.00 $ 3,672.00 Wire Transfers Incoming Annually $ 51,680.00 Book Transfers Annually $ 1.50 $ 19,582.50 Deposits other than ACH Credits Received & wires Annually $ .25 $ 8,707.25 Debit Postings Annually $ .03 $ 1,033.56 Online Bank Account Reporting Monthly Online Reporting Maintenance $ 20.00 $ 94,020.00

The Players / Responsibilities 21

Other Contract Technologies 23

Paymode-X Plus Check Printing Facility Paymode-X system Split payments Card file ACH file Check file Wire file Posts Paymode-X payments to online reports AP System Process pay run for payments and send a single payment file to Paymode-X®. Reconcile paper check, ACH, wire and other payment types using BofAML Treasury Services Payment File Card Payments Paymode-X (ACH) Payments Check Payments Global payments, wires, split remittance options ePayables Works® generates email notification to supplier Updates transaction status and posts to AP system Card controls and maintenance Supplier Receives email Initiates payment through ERP or merchant terminal Keys in remittance data from email Processed through TSYS Paymode-X Forwards ACH payments to the BofAML ACH network Can view Paymode-X transactions online Receives flexible data file outputs for updating AR Paymode-X Plus Check Printing Facility Sends payment data to bank ARP system for inclusion in issue file Processes and mails checks CashPro® Connect Payments Global payment network for wires and split remittance options for vendors.

Prepaid Cards

Questions ??? 26