Electronic Funds Transfer Enrollment Process For agencies and eligible entities desiring to participate in the State Controller’s Master Services Agreement (MSA) Between the State of NC and Bank of America Dated June 24, 2013 Contract Number ITS

Enrollment Process Steps Step 1.Identify EFT Project Step 2.Execute Enrollment Forms Step 3.OSC Acts on Request Step 4.DST Acts on Request Step 5.Bank of America Acts on Request Step 6.CPS Involvement & Testing Step 7.Establish Fiscal Procedures

Step 1 – Identify EFT Project  Obtain information about EFT (ACH) from OSC’s Web site E-Commerce Statutes and Policies E-Commerce Statutes and Policies EFT Overview and EFT-101 EFT Overview and EFT-101  Identify 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 Database of payee names and bank account information Database 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 requirements, work effort, cost and benefits  Obtain assistance from OSC – Use Project Implementation Plan  Obtain assistance from ITS if CPS will be utilized  Obtain approval from OSC if third party gateway is envisioned  Determine project feasibility and obtain management approval

 Master Services Agreement (MSA) Agency Fiscal Office reviews Agency Fiscal Office reviews Legal reviews if deemed necessary Legal reviews if deemed necessary  Agency Participation Agreement (APA) Allows for agency to participate in MSA Allows for agency to participate in MSA Executed electronically by Agency CFO Executed electronically by Agency CFO Submitted to OSC for approval and obtaining of additional signatures Submitted to OSC for approval and obtaining of additional signatures  EFT Participant Setup Form Provides OSC, DST, and Bank of America with information necessary to setup ACH file transmission, bank settlement accounts, invoicing, statement rendering, etc. Provides OSC, DST, and Bank of America with information necessary to setup ACH file transmission, bank settlement accounts, invoicing, statement rendering, etc. Executed by Agency CFO and submitted to OSC Executed by Agency CFO and submitted to OSC  Routing of Forms Upon Receipt OSC signs and routes APA and Setup form to DST OSC signs and routes APA and Setup form to DST DST signs and routes APA and Setup form to Bank of America DST signs and routes APA and Setup form to Bank of America Returned executed copies are received through DocuSign Returned executed copies are received through DocuSign Step 2 – Execute Enrollment Forms

 Approves or disapproves of participation  Request additional information if necessary  Advises agency of approval  Forwards appropriate forms to DST and Bank of America  Involves CPS if necessary  DST is administrator for CashPro On-line Setups up agency users as specified on EFT Participant Setup FormSetups up agency users as specified on EFT Participant Setup Form Advises agency users of User-ID, initial password, and instructionsAdvises agency users of User-ID, initial password, and instructions Step 3 – OSC Acts on Request

 Executes APA on behalf of the State Treasurer Only if participant is an Agency depositing funds with the State TreasurerOnly if participant is an Agency depositing funds with the State Treasurer  Authorizes Bank of America to establish a settlement bank account  Ascertains if fees for account are to be paid by Agency or DST  If a State Agency participant and Inbound payments Assigns a CIT account on Core Banking System (CB$) for certifying deposits on CMCSAssigns a CIT account on Core Banking System (CB$) for certifying deposits on CMCS Advises agency via Official Depository Designation LetterAdvises agency via Official Depository Designation Letter  If a State Agency participant and Outbound 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 ACH credit file on settlement dateAllows for debit to disbursing/STIF account and funding of ACH credit file on settlement date Step 4 – DST Acts on Request

 Executes APA on behalf of the bank  Establishes file transmission profile for participant Performed directly with bank, orPerformed directly with bank, or Performed via CPSPerformed via CPS  Setups 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 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 Request

 If the Common Payment Service (CPS) gateway is to be utilized, participant should follow the steps outlined in the CPS Agency Work Plan Template  Participant conducts a Security Risk Assessment (SRA) for the proposed Agency application  Participant submits the SRA to the Office of Information Technologies Services (ITS) as part of the technical architecture review requirements  ITS will advise of the approval of the SRA and arrange for testing  Agency develops its application, including interface(s) to CPS, and request ACH Profile set-up in the CPS test environment  Agency documents test results and proceeds to next steps (Performance Acceptance Testing) Step 6a – CPS Involvement

 At least two weeks prior to an application deployment, the participant must develop an Acceptance Checklist: Test Plan / Script Test Plan / Script Security Risk Assessment (SRA) Security Risk Assessment (SRA) Internal Agency Policies and Procedures Internal Agency Policies and Procedures  OSC reviews the checklist and supporting documents and approves deployment if no issues  Participant migrates application into production, and conducts “production verification” test Using a limited number of live transactions for at least two weeks Using a limited number of live transactions for at least two weeks Verify settlement of funds into bank account Verify settlement of funds into bank account  If production verification is adequate, participant opens (announces) the service to the public (if Internet application) Step 6b – CPS Verification Testing

 Complete Internal Policies & Procedures Template  Develop Fiscal Office procedures For outbound – Procedures for funding the settlement account For outbound – Procedures for funding the settlement account For inbound – Procedures for reporting receipt of funds For inbound – Procedures for reporting receipt of funds Procedures for obtaining “ACH Authorizations” from payees / payors Procedures for obtaining “ACH Authorizations” from payees / payors Procedures for “ACH returns” Procedures for “ACH returns” Procedures for reconciling settlement bank account Procedures for reconciling settlement bank account  Verify connectivity to CashPro On-line to access settlement account  If State agency, update Cash Management Plan Step 7 – Establish Fiscal Procedures

More Information Office of the State Controller Web Site Support Services Center (919)