School District of Palm Beach District, FL Request for Proposal for Banking Services RFP 12C‐009C Banking Services Response Date: May 7, 2012 Presented by: Area Executive W. Dale Kahle Senior Vice President 125 Worth Avenue, Suite 210 Palm Beach, FL 33480 Office: 561‐653‐5560 Fax: 561‐514‐9597 dkahle@bbandt.com Relationship Manager Treasury Sales Nanci Simonson Cheryl L. Moronta Business Deposit Officer, V.P. Payment Solutions Consultant, V.P. Office: 954‐233‐0459 Office: 954‐233‐0441 nsimonson@bbandt.com cmoronta@bbandt.com School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Table of Contents Letter of Transmittal:................................................................................................Page 03 Request for Proposal ................................................................................................Page 05 Experience and Qualifications of the Firm ...............................................................Page 06 Qualifications of Staff ...............................................................................................Page 19 Approach/Methodology ...........................................................................................Page 26 Time of Completion ..................................................................................................Page 79 Executive Summary ..................................................................................................Page 81 Cost and M/WBE.......................................................................................................Page 83 Insurance ..................................................................................................................Page 84 Appendix ...................................................................................................................Page 85 o
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Bank Availability Schedule Reconciliation Reports Daily Balance and Activity Reports Repurchase Agreement Calculation Schedule Monthly Bank and Analysis Statements Schedule of Collateral Pledged Master Agreement Wire (Funds) Transfer Agreement ACH Agreement Zero Balance Account Agreement Sweep Investment Service Agreement Custodian Agreement Vault Implementation Guide Product Descriptions Awards 2
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
May 7, 2012 Ms. Carol Moore Purchasing Agent School District of Palm Beach District 3300 Forest Hill Blvd, Suite A‐323 West Palm Beach, FL 33406 Dear Ms. Carol Moore: BB&T is excited to provide the School District of Palm Beach County (“the District”) with a proposal for banking services and is grateful for the opportunity to earn the City’s relationship. Rated one of the country’s safest and soundest financial institutions, BB&T will afford unmatched experience, innumerable resources and tremendous human capital. BB&T’s purchase of Colonial Bank and recent announcement to acquire BankAtlantic represents a commitment to grow the market. This proposal details BB&T’s capacity to provide the required banking services to the City as well as our recommendations for best practices. For more than 140 years, BB&T has been a leader among financial institutions and is currently the 10th largest financial holding company in the United States. We are well positioned to provide The District with services that meet your objectives to achieve the most productive use of resources, minimize operating costs and bank fees, safeguard assets, utilize available technology, and provide maximum flexibility in the management of day‐to‐day operations. We are committed to building a strong relationship with The District and providing high quality, efficient banking services at very competitive prices. This is a firm and irrevocable offer valid for 120 days after receipt of our proposal. BB&T Mission and Banking Model: BB&T's operating strategies distinguish it from other financial holding companies. BB&T's banking subsidiaries are organized as a group of Community Banks, each with a Regional President and Area Executives, which allows for decisions to be made locally. Since the decisions are made by people who know their clients and communities, the outcome is undeniably superior customer service. Simultaneously, BB&T is a financial institution that is large enough to have full service capabilities with products, services, resources and a solid infrastructure that supports relationships such as the District. In essence, BB&T provides the best of both worlds in banking with the size and scale to offer competitive, technologically advanced services coupled with a community structure that addresses needs and delivers on commitments in a local setting while steadfastly adhering to our core values and mission. BB&T’s reputation is built upon loyal, responsive customer service with a desire to exceed The District’s expectations. The District will have local contacts dedicated to servicing its relationship. This will ensure that services are established correctly in the beginning, then serviced intensely throughout our relationship. Superior customer service and a relationship approach: BB&T Corporation is one of the largest financial services holding companies in the U.S. with approximately $174.8 billion in assets and market capitalization of $21.9 billion as of March 31, 2012. While BB&T is the 10th largest American bank, we maintain a community bank approach with our client relationships, ensuring that most decisions involving the relationship are made locally. As The District’s local Treasury Management Consultant, Cheryl Moronta will consult with your team to review all aspects of payables, receivables, liquidity and information management. Cheryl Moronta, along with an 3
SCHOOL DISTRICT OF PALM BEACH COUNTY
PURCHASING DEPARTMENT
3300 Forest Hill Blvd, Suite A-323
West Palm Beach, FL 33406-5813
REQUEST FOR PROPOSAL (RFP)
REQUIRED RESPONSE FORM
RFP 12C-009C BANKING SERVICES
This proposal must be submitted to DemandStar for the School District of Palm Beach
County, Purchasing Department, no later than the time stated on the RFP. Proposals are
due and will be opened at this time.
Anti-Collusion Statement / Public Domain
I, the undersigned proposer have not divulged, discussed, or compared this proposal with any
other proposer and have not colluded with any other proposer in the preparation of this proposal
in order to gain an unfair advantage in the award of this proposal.
I acknowledge that all information contained herein is part of the public domain as defined in the
Public Records Act, Chapter 119, F.S.
Proposal Certification
I hereby certify that I am electronically submitting the following information as my company's
proposal and understand that by virtue of executing and returning with this proposal this
REQUIRED RESPONSE FORM, I further certify full, complete and unconditional acceptance of the
contents of this Request for Proposal, and all appendices and the contents of any Addendum
released hereto. Proposal must be signed by an officer or employee having authority to legally bind
the proposer.
STREET ADDRESS:
BB&T (Branch Banking & Trust)
125 Worth Avenue, Suite 210
CITY & STATE:
Palm Beach, FL 33480
PROPOSER (firm name):
Nanci Simonson
Digitally signed by Nanci Simonson
DN: cn=Nanci Simonson, o=BB&T, ou, email=nsimonson@bbandt.com, c=US
Date: 2012.05.04 14:25:20 -04'00'
ELECTRONIC SIGNATURE OF AUTHORIZED
REPRESENTATIVE:
Vice President/Business Deposits Officer
CONTACT PERSON:
Nanci Simonson
TITLE:
DATE:
May 7, 2012
110 E. Broward Blvd Suite 2100 Ft Lauderdale, FL 33301
TOLLFREE:
TELEPHONE:
FAX:
954-522-3345
954-233-0459
E-MAIL ADDRESS:
www.bbt.com
nsimonson@bbandt.com INTERNET URL:
PROPOSER TAXPAYER IDENTIFICATION NUMBER:
56-0939887
CONTACT PERSON'S ADDRESS:
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Experience and Qualifications of Firm 13.2 Describe the organization, ownership, and other business affiliations (please provide number and location of affiliated offices). BB&T Response: 13.3 BB&T Corporation, headquartered in Winston‐Salem, N.C., is among the nation's top financial holding companies with approximately $174.8 billion in assets and market capitalization of $21.9billion. Founded in 1872, its bank subsidiaries operate approximately 1,800 financial centers in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Florida, Alabama, Texas, Indiana and Washington, D.C. BB&T Corporation is 10th largest American bank, offering full‐
service commercial and retail banking services along with other financial services like insurance, investments, retail brokerage, mortgage, corporate finance, consumer finance, payment services, international banking, leasing and institutional trust services. Provide a brief description of the history your organization, including your history in the State of Florida. BB&T Response: BB&T Corporation, headquartered in Winston‐Salem, N.C., is among the nation's top financial‐
holding companies with $174.8 billion in assets and market capitalization of $21.9 billion, as of March 31, 2012. Its bank subsidiaries operate approximately 1,800 financial centers in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Tennessee, Maryland, Florida, Alabama, Indiana, Texas and Washington, D.C. BB&T has been in the State of Florida for 10+ years. BB&T's operating strategy distinguishes it from other financial holding companies. BB&T offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others. BB&T's banking subsidiaries are organized as a group of community banks, each with a regional president, which allows decisions to be made locally, close to the client. This also makes BB&T's client service more responsive, reliable and empathetic. 13.4 Provide the address of the office location that will service the account and the address that will accept deposits via courier. BB&T Response: Atlantis Branch, 3100 Lantana Road, Lantana, FL 33462 List the address of all branch offices in the county boundaries and surrounding area. (Please supply a map showing branch locations). 13. BB&T Response: In the state of Florida, we currently have 1,900 employees in 308 offices, to include 17 financial centers within the County of Palm Beach. 6
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2000 Palm Beach Lakes Boulevard 320 Lakeview Drive 151 South State Rd 7 5614 State Road 7 11317 Okeechobee Boulevard 2899 Pga Blvd 4510 Donald Ross Road 4620 Pga Blvd Ste 101 125 Worth Ave Ste 100 11760 U.S. Highway One, Suite 100 2000 PGA Boulevard, Suite 5500 3100 Lantana Road 1001 N Us Hwy 1 Ste 100 6500 West Atlantic Avenue 1700 W Woolbright Rd 140 North Federal Highway 21302 St. Andrews Boulevard West Palm Beach West Palm Beach Wellington Wellington Royal Palm Beach Palm Beach Gardens Palm Beach Gardens Palm Beach Gardens Palm Beach North Palm Beach North Palm Beach Lantana Jupiter Delray Beach Boynton Beach Boca Raton Boca Raton Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida Florida 33409 33411 33414 33449 33411 33410 33418 33418 33480 33408 33408 33462 33477 33446 33426 33432 33433 BB&T anticipates the BankAtlantic acquisition to take place within the 3rd Quarter of 2012 adding approximately 78 branches to the BB&T Florida network. 13.6 Describe the experience of the financial institution in providing similar services for other municipal clients. BB&T Response: BB&T has been a valuable partner for our governmental clients throughout the Southeast with extensive experience serving their banking and financial needs for years. Being relatively new (10‐
years) in the Florida market, we continue to grow our presence as a strong regional Bank and look 7
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13.7 forward to the opportunity to continue building on our solid foundation. This gives us the ability to deliver a high level of service and attention to our clients. As of January 31, 2012, BB&T has nearly 7,500 public funds type demand deposit accounts (DDA) with nearly 3,000 public funds type savings accounts. Nanci Simonson serves as the primary relationship manager for over $300,000,000 of the deposit portfolio which is concentrated to commercial clientele, including public fund type entities. Provide copies of your most recent annual report, 10‐K and 8‐K filing. BB&T Response: 13.8 Copies of our financials have been included with our RFP response. In addition, for more information about our financial strength, please visit us at http://www.bbt.com/bbt/about/ Direct Links for Each Statement: 2011 Annual Review: http://www.bbt.com/bbt/about/financialprofile/reports/Final%202011%20Form%2010‐
K%20Bannerless.pdf 2010 Annual Review: http://www.bbt.com/bbt/about/financialprofile/reports/BBT%202010%20Form%2010‐K.pdf 2009 Annual Review: http://www.bbt.com/bbt/about/financialprofile/reports/2009%20Annual%20Review.pdf Who is responsible for monitoring audit recommendations made to management? Describe the process. BB&T Response: 13.9 The District’s relationship manager, Nanci Simonson, and Treasury Management Consultant, Cheryl Moronta, will arrange regular quarterly meetings with key the District personnel to optimize efficiency, reduce unnecessary costs, mitigate fraud risk, and add overall value to the relationship. Discuss the financial stability of your firm. BB&T Response: As one of the nation’s leading financial institutions, BB&T has a reputation for integrity and service excellence that dates back to 1872. Rated one of the country’s safest and soundest financial institutions, BB&T serves clients across the Mid‐Atlantic and Southeast with a complete range of financial services including banking, lending, insurance, trust and wealth management solutions. Past performance, in this case, provides solid assurance that BB&T’s enduring core values will continue to shape our approach to client service, bringing professionalism and objectivity to every assessment and every recommendation we present. For 140 years, BB&T has been a valuable partner for its clients and a safe and sound investment for its shareholders. BB&T has maintained a strong capital position with all regulatory ratios well above Federal Reserve and FDIC standards. In fact, BB&T maintains such a strong capital position that 8
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when banks were given TARP funds in November 2008, BB&T was one of the first banks to promptly pay back the TARP money in June 2009. 13.10 Provide long term and short term ratings from two of the three nationally recognized rating agencies (Standard & Poor’s, Moody’s, Fitch) and also provide Moody’s Bank Financial Strength Rating. BB&T Response: Bank Comparison Credit Ratings as of March 16, 2012 Company S&P 1 Northern Trust Company AA‐ 2 Bank of NY Mellon N.A. AA‐ 3 State Street Bank & Trust Co. AA‐ 4 Wells Fargo Bank N.A. AA‐ 5 BMO Harris Bank NA A+ 6 JPMorgan Chase N.A. A+ 7 U.S. Bank N.A. A+ 8 Branch Banking & Trust Co. A 9 Comerica Bank A 10 M&T Manuf & Trdrs Trust Co. A 11 PNC Bank N.A. A 12 Bank of America N.A. A 13 Citibank N.A. A 14 KeyBank N.A. A‐ 15 Bank of Oklahoma N.A. A‐ 16 Fifth Third Bank BBB+ 17 Associated Bank N.A. BBB+ 18 Huntington National Bank BBB+ 19 SunTrust Bank BBB+ 20 Capital One N.A. BBB+ 21 First Horizon BBB 22 Regions Bank BBB 23 Zions First National Bank BBB 24 Banco Popular de Puerto Rico BB 25 Synovus BB‐ Outlook Stable Negative Negative Negative Stable Stable Stable Stable Stable Stable Stable Negative Negative Positive Stable Positive Stable Stable Stable Negative Stable Stable Negative Stable Stable Moody's Aa3 Aa1 Aa2 Aa3 A1 Aa1 Aa2 A1 A2 A2 A2 A2 A1 A3 A1 A3 A3 A3 A3 A3 A3 Ba2 Ba2 Baa3 B1 Fitch AA‐ AA‐ A+ AA‐ AA‐ AA‐ AA‐ A+ A A‐ A+ A A A‐ A‐ A‐ BBB‐ BBB+ BBB+ A‐ BBB+ BBB‐ BBB‐ BB‐ BB‐ 9
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13.11 Provide five year history of your Tier‐One Risk Based Capital and Total Risk Based Capital. BB&T Response: Tier 1 Total 12/31/2011 10.60% 14.70% 12/31/2010 11.82% 15.51% 12/31/2009 11.50% 15.80% 12/31/2008 12/31/2007 12.30% 9.10% 17.40% 14.20% 12/31/2006 9.00% 14.30% 13.12 Provide a history of the funding level required by the State of Florida under the Chapter 280 Collateralized Deposit Program for the last two years. BB&T Response: Branch Banking and Trust Company is a state‐chartered bank that utilizes the Federal Deposit Insurance Corporation (FDIC) as the primary federal regulator. BB&T will maintain the designation of Qualified Public Depository in good standing throughout the Contract Period(s) resulting from this solicitation and will annually show proof of the Qualified Public Depository designation and will immediately notify the District of any anticipated or actual loss of designation. All funds in a "noninterest‐bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules. Funds over the allowable amount insured by FDIC for all of the District’s accounts will be collateralized in accordance with State of Florida’s method of collateralization. The deposits will be collateralized based on the Code of Virginia at 50%. 13.13 Please describe the extent of your firm’s social responsibility, including local, state and community involvement, charitable activities as well as educational opportunities, speaker’s bureaus and other value added services that are make a difference in the local community. BB&T Response: According to the FDIC, BB&T’s Lending, Investment and Service Test performance in Florida is rated High Satisfactory. BB&T has a regional approach when it comes to CRA activities. The Banks activity in CRA is tailored to communities based on an area needs assessment and Bank resources. BB&T Closed over $300 million in Community Development Loans for 2009 and provided more than $220 million in Tax Credit investment, BB&T volunteered with different area organizations to provide assistance as board members; homebuyer counseling; technical assistance around new program development; technical assistance on loan committees; small business seminars; financial expertise as advisory board member; technical assistance with regards to Federal Home Loan Bank AHP grant process; In School Banking technical assistance; financial literacy seminars; and credit counseling. In addition to above, BB&T CRA and Community Development gives community’s access to the BB&T mobile bank bus for Housing, Economic and Community outreach and financial literacy classes at no cost to our partners. The BB&T Bank Bus is a mobile BB&T Branch on wheels with full internet capabilities, and computer learning center. BB&T received and outstanding CRA rating on its last CRA exam. 10
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Community Investments BB&T works diligently with government agencies, tax‐credit syndicates, and non‐profits to seek investment and charitable contribution opportunities. Our annual investments include Low‐Income Housing Tax Credits (LIHTC) and Historic Rehabilitation Tax Credits (HTC). The majority of our investments are for multifamily rental projects. BB&T tax credit investment totals are as follows: 2007 $376,270,776 2008 $155,700,000 2009 Estimated $121,000,000 Community Development Corporations To help Community Development Corporations and other community‐based service organizations become self‐sustaining in their endeavors, BB&T has partnered with the National Development Council to establish our Capacity Building Program. Supplier Diversity For BB&T, supplier diversity is about providing opportunities to a diverse base of qualified and certified vendors ‐ ready, willing, and able to provide products and services. Minority‐Owned Business Enterprise A minority‐owned business is a for‐profit enterprise, regardless of size, physically located in the United States or its trust territories that is owned, operated and controlled by minority group members. "Minority group members" are United States citizens who are Asian‐Pacific, Asian‐Indian, Black/African American, Hispanic or Native American. Ownership by minority individuals means the business is at least 51 percent owned by such individuals or, in the case of a publicly‐owned business, at least 51 percent of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members. They are: Women‐Owned Business Enterprise; Small Business; Disabled Veteran Business Enterprise; Veteran‐Owned Small Business Hispanic Community Outreach In recent years the Hispanic community in the United States has enjoyed explosive growth. According to the U.S. Census Bureau, Hispanics are now the largest minority group in the country, constituting 13.3% of the population. Recognizing this trend, in 2002 BB&T launched a corporate‐wide initiative to welcome the Hispanic community and demonstrate our loyalty to Hispanic clients. Included in this effort was the establishment of Multicultural Banking Centers, designed to serve the unique needs of this community. We also launched a Spanish language version of Phone24, our client 11
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service support line at 1‐800‐BANK‐BBT, and hired Spanish‐speaking customer support representatives to ensure personal service for all of our clients. BB&T also offers the following innovative products and services: EnvíoFácil The EnvíoFácil/EasySend Money Transfer Card is a prepaid card that allows people living in the United States to send money to family and friends in their home country. This safe and affordable service is available at all BB&T branch locations. Nuestro Barrio BB&T, Freddie Mac, and CRA‐NC have partnered to create Nuestro Barrio, a DVD series that addresses financial literacy with a focus on homeownership. The Nuestro Barrio series is the recipient of the 2007 Homes4NC Affordable Housing Achievement Education Award. 12
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BB&T Lighthouse Project Lending helping hands in trying times Enthusiasm Abounds for 2011 Lighthouse Project BB&T employees have spoken and will eagerly spend May and June helping to make our communities better places to live and work. In its third year, the BB&T Lighthouse Project is an all‐hands‐on‐deck community service effort held throughout the BB&T footprint. Teams of employees volunteer time away from work to partner with organizations that help those people most in need of assistance. "BB&T has built our success as a community‐based bank, and we know this is a tough and challenging period for our communities and our country. We can't think of a better reason or time for us to focus our energy on helping others." Kelly King Chief Executive Officer, BB&T Corporation Strength in Numbers In its first two years, the BB&T Lighthouse Project touched the lives of more than 3 million people in 25 states. BB&T employees voluntarily donated nearly 100,000 hours, rolling up their sleeves and getting to work. Shining the Light "The concept is simple. We want every one of our employees physically working in their communities to make a tangible difference in people's lives." —Kelly King, Chairman and CEO, BB&T Corporation Self‐Motivated to Serve All BB&T employees are encouraged to participate in the 2011 project. We find it rewarding to get outside of our offices and cubicles and lend a hand to others. Employees say that positive experiences from previous campaigns inspire them to keep volunteering. In 2011, the BB&T family looks to make a difference to those desperately searching for assistance—and to shine a ray of hope for those in need. 13
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Lighthouse Projects / Palm Beach County 2009 The Lord’s Place – Café Joshua Purchased food and volunteered 2 months Monday‐Friday serving lunch to the homeless. 2010 Habitat for Humanity Purchased roofing materials for 1 house in Kennedy Estates. Volunteered by raising the trusses into place. Back to School Bash Purchased backpacks and school supplies. Volunteered by helping distribute to children. 2011 Habitat for Humanity Purchased kitchen and bathroom cabinets and counter tops, water heater for single house. Volunteered laying plywood on roof of house. Renaissance Learning Center – School for children with Autism Purchased paint and playground equipment. A team of BB&T employees volunteered by painting school building and assembling playground equipment. Mae Volen Purchased food and volunteered by assembling food boxes and delivering to home bound. AVDA – Aid to Victims of Domestic Abuse Purchased household necessities such as (sheets, towels, pillows, dishes, small appliances, etc). and volunteered to help distribute to victims. 14
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BB&T brings rolling loan bus to town
The BB&T bank 40‐foot bus parked at the South Florida Water Management District in West Palm Beach Tuesday, Sept. 8, 2010. BB&T bank is taking customer service on the road where people can get help getting a loan or getting a loan modified. By Kimberly Miller Palm Beach Post Staff Writer BB&T has 72 branch offices stretching from Key West to Port St. Lucie, but this month the bank is going mobile to better reach South Florida customers. A 40‐foot recreational vehicle, retrofitted with computer stations and manned by mortgage and credit experts, is making daylong stops at businesses in Palm Beach and Miami‐Dade counties. Current and prospective BB&T customers are welcome to board the bus to get free credit counseling, credit reports, advice on loan modifications and help with financing to buy a home. On Tuesday, the bus was outside the South Florida Water Management District's office on Gun Club Road. Today, it is scheduled to pull up to the Jupiter Medical Center with doors opening at 9 a.m. "Our goal is education, whether you're a first‐time home buyer, someone looking to refinance, or someone not able to pay a loan," said Natalie Cwick, a BB&T representative on the bus Tuesday. This is the first visit to South Florida for the 2‐year‐old bus, which has toured other parts of the state. BB&T has 304 branch offices in Florida. The Winston‐Salem, N.C.‐based company acquired Colonial Bank of Montgomery, Ala., in an FDIC‐
assisted deal in August 2009. 16
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The move expanded the Fortune 500 company's reach, and the bus is designed to make its presence better known. On board are representatives of the Housing Leadership Council of Palm Beach County, which is helping match people with homes and financing. One plan being touted is the federal Neighborhood Stabilization Program, which has awarded tens of millions of dollars to Palm Beach County and its municipal governments. The Lake Worth Community Redevelopment Agency, for example, has $23.3 million to buy and refurbish abandoned and foreclosed homes, and will then resell them to eligible buyers. Financing for those homes is something BB&T representatives said they can help with. "If you have reasonable credit, a job and buy within your means, nothing has really changed in terms of you being able to get financing," said Linda Merchant, a BB&T mortgage specialist. In addition, BB&T fostered the Lighthouse Project as a bank‐wide mission to help the communities in which we do business. Implemented in 2010, this initiative enables BB&T employees to give back financially and personally, enhancing the quality of life in areas like Broward County. To date, the Lighthouse Project has contributed $6 million to support BB&T’s mission of making our surrounding areas a better place to live and work. BB&T’s dedicated employees have renovated daycare centers, school playgrounds and Habitat for Humanity houses. They have assembled toys, packaged school supplies, stocked food pantries, taught children to swim, prepared care packages for troops and engaged in countless other acts in service of our neighbors. 13.14 All banks selected to provide services to the District must agree to notify the District, in writing, if any of this information changes during the term of the contract. BB&T Response: In addition to providing quality services, BB&T offers the District very attractive relationship pricing with the inception of a new contract no later than August 1, 2012 and is guaranteed for a period of three years. Pricing will be negotiated as new accounts and services are added and BB&T will notify the District in writing any changes during the term of the agreed upon contract. 13.15 Please explain briefly why Palm Beach School District should select your organization to provide the required services. BB&T Response: We are well positioned to provide the District with services that meet your objectives to achieve the most productive use of resources, minimize operating costs and bank fees, safeguard assets, utilize available technology, and provide maximum flexibility in the management of day‐to‐day operations – all coordinated through one relationship manager. We are committed to building a strong relationship with the District and providing high quality, efficient banking services at competitive prices. BB&T’s reputation has been built upon loyal, responsive customer service with a desire to exceed client expectations. At BB&T we know the content of our business will, and should, experience 17
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constant change. Change is necessary for progress. However, the context, our vision, mission and values, are unchanging because these principles are based on basic truths. We provide full service capabilities with the products, services, resources and infrastructure to support relationships such as one with the District, and do so while steadfastly adhering to our core values and mission: TO MAKE THE WORLD A BETTER PLACE TO LIVE BY: Helping our CLIENTS achieve economic success and financial security; Creating a place where our EMPLOYEES can learn, grow and be fulfilled in their work; Making the COMMUNITIES in which we work better places to be; and thereby: Optimizing the long‐term return to our SHAREHOLDERS, while providing a safe and sound investment We also differentiate ourselves with a highly consultative approach to client service. We strive to be a trusted partner for our clients, instead of pushing products. We will get to know your business through regular face‐to‐face account reviews and provide solutions that cater to your very specific needs. This proposal is simply a starting point. If you choose BB&T as your financial partner, we will continue to refine your processing structure and services to create the optimal scenario for the District. We pride ourselves on tenured management, low associate turnover, and qualitative performance measures that consistently exceed BAI competitive benchmarks. What you can expect from BB&T:  BB&T will waive bank account service charge fees (if applicable) for the first 90 days, of opening accounts, to assist with the transition between banks which is a value of more than $000000 based on the enclosed proposal with required services ; and provide a credit of $2,500 for initial order of banking supplies.  BB&T will provide a remote deposit scanner.  A designated Relationship Manager who serves as your primary contact, providing continuity and leadership to your entire BB&T relationship team.  A designated Treasury Management Consultant whose purpose is to provide advisory services and products that strategically impact your organization.  Innovative solutions that can increase your efficiency and meet objectives across all facets of your cash flow cycle.  A level of personalized attention with decisiveness and flexibility that will meet your unique needs.  A partnership with a strong financial institution that ranks among the top 1% of all US banks. 18
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Qualifications of Staff Personnel 13.17 Provide biographical information on all bank officers that will be directly involved in the management of the District’s accounts. Indicate the primary contacts and who will be designated to handle matters when the primary contact is unavailable. Describe the experience these officers have working with municipal clients. BB&T Response: BB&T offers a unique blend: A Relationship Team who knows your business and has product expertise, stringent quality control, superior customer service, and on‐call consultative specialists. These factors combine to provide added value for your banking dollar. This added value, coupled with our financial strength and stability, makes BB&T a solid solution to all your banking needs. BB&T recommends that the District contact the local support team for initiating inquiries that require research and/or adjustments. There will be several individuals available to handle the needs of the District at any given time. Your main Relationship Manager, Nanci Simonson, will ensure resolution to any situation and proactively service your account, and respond promptly to your needs. As your relationship manager, Nanci Simonson serves as your advocate and will act as your liaison to other product specialists within BB&T. She is supported locally by a team for day‐to‐day operational needs. BB&T recommends that the District contact the local support (located at 125 Worth Avenue) for initiating inquiries that require research and/or adjustments. RELATIONSHIP MANAGER Nanci Simonson Vice President 954‐233‐0459
Fort Lauderdale, Florida nsimonson@bbandt.com
Nanci Simonson is a Business Deposit Officer and Relationship Manager supporting government, municipalities and nonprofit organizations in the South Florida Region. As a member of FGFOA and the South Florida Government Finance Officers, and Treasure Coast Association Chapters, Florida Association of Housing and Redevelopment Officials (FAHRO) and member of the Broward County Treasure Coast, and Palm Beach League of Cities, Nanci keeps informed and educated on the financial needs of the industry. Ms. Simonson served on the 2010 – 2011 FGFOA Conference Host committee and a volunteer as a Guardian ad Litem in Broward County. She Chair’s the Architectural Control Committee for La Presereve Homeowners Owners Association. She has been with BB&T for more than 4‐years and has over 16‐years Account & Project Management experience with various lines of business. Nanci is a native Floridian and received a Bachelor of Science from the University of Central Florida. Your Relationship Manager is your primary contact and consults with BB&T’s team of specialists to deliver solutions for all of your financial needs. 19
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TREASURY MANAGER Cheryl L. Moronta Vice President 954‐233‐0441
Fort Lauderdale, Florida cmoronta@bbandt.com
Cheryl L. Moronta has 26‐years of banking experience including the position of Treasury Management Relationship Officer for Municipalities and Corporate clients. Cheryl also has experience in commercial and consumer lending services as well as serving as Branch Manager for multiple banking centers. Cheryl’s training and experience enable her to provide clients with a professional, knowledgeable, responsive and dedicated contact who understands that clients need a partner who can assist them with their financial objectives on an ongoing basis. Cheryl is a graduate of Indiana State University with a Bachelor’s of Science Degree in Speech Pathology and Audiology. She has also completed Treasury Management Training as well as American Institute of Banking Courses; Introduction to Banking, Banking Services for Commercial Clients; Computer I and II, Accounting I and II, Supervision and Management, to name a few. LOCAL CLIENT SUPPORT Natalie Cwick Business Services Assistant 954‐233‐0560
Fort Lauderdale, Florida ncwick@bbandt.com
Natalie Cwick is a Business Services Assistant supporting the South Florida market. Along with your Relationship Manager, Natalie will be attentive to your day‐to‐day needs and will work closely with the District to coordinate and support banking activities to ensure the Perfect Client Experience. Natalie has over 20‐years of banking experience, including more than 3 years with BB&T. Natalie brings both her banking knowledge and a high level of client service to support the District and their employees. ATLANTIS – FINANCIAL CENTER LEADER Javier Padilla Vice President 561‐515‐6934
Lantana, Florida jpadilla@bbandt.com
Javier Padilla is the Financial Center Leader for BB&T, at the Atlantis office where your accounts will be serviced. Javier has enjoyed 15 years in the banking industry in Palm Beach County. Javier is active in the Palm Beach County community and belongs to several networking groups. Javier and his experienced team provide personalized service to all clients and will support your relationship to ensure all the needs of the County are being met to your satisfaction. PALM BEACH EXECUTIVE & COMMERCIAL LENDING W. Dale Kahle W
561‐653‐5560
.Palm Beach Area Executive Palm Beach, Florida dkahle@bbandt.com
Dale Kahle is BB&T's Area Executive for Palm Beach County and the Treasure Coast markets. He is located in our Worth Avenue Office and brings a wealth of banking expertise to the relationship. Mr. Kahle has been in the Palm Beach County banking community for 25 years, and with BB&T 20
School District of Palm Beach District
Request for Proposal for Banking Services
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for over five. He received his Bachelor of Science Degree from Jacksonville University in Jacksonville, Florida, and is an active member of the Worth Avenue Association, the of the Economic Council of Palm Beach County, the Business Development Board of Palm Beach County, and the Palm Beach Sheriff's Office ‐ Homeland Security Bureau of Business Partners Against Terrorism ‐ Financial Sector. BB&T delivers on its Community Banking model by strategically placing leadership in the market that is able to make local decisions. Mr. Kahle is ultimately responsible for the team delivery of the Perfect Client Experience, through our commitment to be Reliable, Responsive, Empathetic and Competent. GOVERNMENTAL FINANCE GROUP Mike Smith Sales Officer Orlando, Florida 407‐241‐3570 mcsmith@bbandt.com
Mike Smith, Florida Sales Officer for BB&T's Governmental Finance Group, is located in our Orlando, FL office. Mr. Smith is a graduate of BB&T's Leadership Development Program and received his Bachelor of Science Degree in Business from the State University of New York at Buffalo. He has been with BB&T for four and half years and has spent the majority his career developing the State of Florida for BB&T Governmental Finance. Since arriving in the State three years ago, Mr. Smith has worked with over 70 local governmental entities (Counties, Cities, School Districts...etc.) and has helped generate $700,000,000 in bank loan financings for BB&T Governmental Finance. Mr. Smith's knowledge, expertise and recent success in the State of Florida has helped BB&T Governmental Finance's municipal loan portfolio become one of the largest in the nation with over $3 billion in total assets. 13.18 Describe the approach to account administration that is used (i.e., account teams, account administrator with support group)? BB&T Response: BB&T places great importance on providing quality financial services and on building a strong and vital working relationship with the District. We are committed to working closely with you to provide payments services solutions that meet your objectives. BB&T offers a unique blend with a Relationship Team who knows your business, has product expertise, stringent quality control, superior customer service, and on‐call consultative specialists. This added value, coupled with our financial strength and stability, makes BB&T a solid solution to all your banking needs. BB&T recommends that SFWMD contact the local support team for initiating inquiries that require research and/or adjustments. 13.19 Provide an organizational chart for the personnel who will be associated with the District’s accounts, including the roles of each person, and illustrating the relationship among the personnel. 21
School District of Palm Beach District
Request for Proposal for Banking Services
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PALM BEACH DISTRICT RELATIONSHIP TEAM: School District of Palm Beach County
Nanci Simonson
Relationship Manager
Cheryl Moronta
Payment Solutions Consultant
Natalie Cwick
Business Services Assistant
Treasury Management
Client Services
Javier Padila
Financial Center Leader
Heather Ellis
BB&T @ Work Officer
Katrina Morelock
Institutional Services
Mike Smith
Governmental Finance
Merchant Call Center
Cristina Boucher
Merchant Consultant
Client Services
Dale Kahle
Senior Vice President
Palm Beach Area Executive
Babbette Bodden
Vice President
Sales & Service Leader Palm Beach
David L. Hamilton lll
Regional Corporate Banker
Palm Beach District
Customer Service and Quality 13.21 Please describe your firm's commitment to service quality and customer service. BB&T Response: BB&T places a premium on service – in working with you, please know that you have our commitment to always be there for you, to be responsive, to listen carefully to what you say because you, as our client, always comes first, and we promise to provide you with the very best solution, regardless of the situation. In these tough economic times it is important to bank with a strong financial institution, not only for the safety and soundness, but it allows us to focus on you and your needs instead of internal turmoil and change. 22
School District of Palm Beach District
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13.22 Indicate the bank’s customer service organizational structure (choose one): • Separate customer service department for depository services • Centralized customer service department for all cash management services • Customer service function contained within depository services operating unit(s) • Other – please describe BB&T Response: In addition to the District’s local relationship support team, BB&T’s centralized Payment Services Client Support Center is committed to achieving unrivaled customer satisfaction through world‐class delivery of service quality. Each day, our state‐of‐the‐art automated telephone system produces sophisticated reports that provide statistics such as the total number of calls received, average length of the call and how long customers waited before speaking to a service specialist. BB&T’s approach toward service will provide The District with many benefits, including: 

Easy Access...On any banking day, for assistance dial 1‐800‐774‐8179 between 8:00 a.m. and 8:00 p.m. (EST). Prompt Turnaround...Our goal is to respond to the District’s questions on the first call, with all inquiries handled within a 24‐hour period. 
Quality tracking...Incoming calls are monitored and tracked to ensure quality service is provided in a timely manner. 13.23 Will a specific customer service representative be assigned to handle the District? a. Describe the responsibilities of the customer service personnel, including the chain of command for problem resolution. b. Is local customer service support available to assist with deposits? BB&T Response: Your client service rep would escalate any problems which are not easily and timely resolved to their manager, where the vast majority of issues are then resolved. However, if there is need to escalate further, your primary Treasury Management Sales Consultant would be notified in addition to further escalation up the Client Support chain of command. Chain of command: Client Support representatives report directly to the Manager of Treasury Client Support (Vice President). Our Managed Implementation Specialists report directly to the Treasury implementation Manager (Assistant Vice President). Both of these managers report to the Manager of Implementation and Client Support (Senior Vice President). 13.24 What are the hours of operation of the customer service unit? (Specify time) BB&T Response: BB&T client support for depository services is available for assistance 8:00 a.m. to 8:00 p.m., Monday through Friday EST. 23
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13.25 How does the bank handle inquiries requiring research and adjustments? BB&T Response: BB&T recommends that the District contact their dedicated local support team representative for initiating inquiries that require research and/or adjustments. To meet acceptable standards, such as the retrieval or copy of a statement or check, we commit to a 24‐hour turnaround. BB&T will conduct an investigation and analysis and make adjustments as needed upon being notified. These adjustments are based on standard compensation techniques 13.26 How does the bank handle audit confirmation requests? BB&T Response: BB&T recommends that the District contact their dedicated local support team representative for initiating audit confirmation requests. 13.27 Are there established turn‐around times for research and adjustment items? If yes, specify. BB&T Response: To meet acceptable standards, such as the retrieval or copy of a statement or check, we commit to a 24‐hour turnaround. BB&T will conduct an investigation and analysis and make adjustments as needed upon being notified. These adjustments are based on standard compensation techniques 13.28 Does the bank provide technical customer support for computer hardware, software, and communications problems? BB&T Response: BB&T’s Technical Support and Implementation team will work with the District and the District’s vendors to ensure proper communication including telecommunication requirements, system compatibility and transmission testing as well as other on‐line or PC based applications. BB&T’s Technical Support professionals are available to support commercial clients from 8 a.m. to 8 p.m. (ET), Monday through Friday. Compensating Balances 13.30 It is anticipated that all deposited funds will be used to offset fees. Describe the method used to calculate the earnings credit rate (ECR). Is the reserve requirement deducted from the available balance before the ECR is calculated? Please include the bank formula for converting service charges to balance requirements and a listing of the bank earnings credits and reserve requirements for the period from July 1, 2010 to March 31, 2012. BB&T Response: BB&T recommends that the District utilize our Public Fund Analyzed Checking Account for its concentration account. This account is designed for public entities such as municipalities and District governments with moderate to high levels of account activity. The account is analyzed monthly and provides the opportunity to reduce or eliminate service charges with a monthly “earnings credit allowance” that is applied toward the cost of services. 24
School District of Palm Beach District
Request for Proposal for Banking Services
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BB&T will provide the District with an attractive Earnings Credit Rate (ECR) to be used to determine the earnings credit allowance each month. The ECR rate is 0.35%. The Earnings Credit calculation is: Average Collected Balance x (1 – Reserve Requirement) x ECR x Days in Month 365 Notes: 1) Average Collected Balance = Average Monthly Balance minus Average Float 2) Reserve Requirement is currently 0% 13.31 How and when would the District be notified of a price change after the initial 3‐year term? BB&T Response: The pricing will be reviewed at the end of the three year term and a (a) two year extension maybe offered with the concurrence of both the Bank and the District. Pricing in this proposal is based on the entire relationship with the District. BB&T reserves the right to re‐negotiate pricing if the District chooses to award more than one bank as a banking partner. BB&T will provide the District with an attractive Earnings Credit Rate (ECR). The rate will be a fixed rate of 0.35% for one year. This is a premium rate that is subject to adjustment annually. BB&T will waive fees for the first 90 days to limit the expenses associated with having duplicate services at two financial institutions and in recognition of the extra effort the District will expend during the implementation phase. Pricing will be negotiated as new accounts and services are added. BB&T reserves the right to review negotiated pricing every twelve (12) months. BB&T reserves the right to review and adjust pricing resulting from regulatory changes regarding collateralized public funds. 25
School District of Palm Beach District
Request for Proposal for Banking Services
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Approach and Methodology Implementation and Conversion 13.33 Provide a detailed description of the implementation process, including testing and a sample implementation schedule. Describe a conversion plan to transfer assets of the District to the bank. BB&T Response: BB&T utilizes a project management approach to implementations. We will provide you with an experienced team of individuals, lead by an implementation project manager, to work with the District’s assigned personnel to develop and execute the detailed, specific implementation plan. Our proven procedures will help to ensure a smooth transition of your accounts and services to BB&T. BB&T will work closely with you each step of the way to set up services that best meet the needs of your business. Our goal is to make sure you are fully satisfied.  Support from a single source: Your implementation specialist will serve as your point of contact through each step of the implementation process.  Gain a partner who knows your business: We take the time to learn about your business and to identify ways BB&T can help the District operate more efficiently.  Get the support you need before, during and after: Your implementation specialist will work closely with you throughout the setup process, including developing a project plan, lining up all needed bank resources, securing required legal documents and arranging training for your staff.  Benefit from clearer communication: Your implementation specialist will communicate regularly with other members of your BB&T team, including your corporate banker, treasury consultant and support advisor, to keep them informed of your needs. MICR testing of checks is optional but highly recommended. The District can provide 10‐15 voided or sample checks for testing. If the payee is included, a visual inspection can also be done of the check for Payee Positive Pay purposes. Sample Implementation Schedule Task Name Lead Owner Week 1 Week 2 Week 3 Week 4 Week 5 Time Kick‐off Meeting 1 Day THE DISTRICT& BB&T Confirm Project 1 Day THE DISTRICT Scope of Services Confirm 1 Day THE Implementation DISTRICT& time frames BB&T Set up & Weekly BB&T facilitate status meetings 26
School District of Palm Beach District
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Provide Project Team contact information Documentation Account Structure Provide required info Provide forms and agreements Complete & return forms & agreements Payments Controlled Disbursement Determine requirements, master funding acct, etc Provide MICR check printing specifications Release setup to BB&T operations Print sample checks & provide to BB&T for testing Test checks & notify THE DISTRICT of results Account Reconcilement and Positive Pay Review service requirements Provide user guides and file specifications Check Issue File Transmission & Testing 1 Day BB&T 1 Day THE DISTRICT 1 Day THE DISTRICT 1 Day BB&T 1‐2 Weeks THE DISTRICT 1 Day THE DISTRICT & BB&T 1 Day BB&T 1 Day BB&T 1 Day THE DISTRICT 5 Days BB&T 1 Day 1 Day THE DISTRICT &BB&T BB&T 27
School District of Palm Beach District
Request for Proposal for Banking Services
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Exchange ID's, 1 Day passwords, encryption keys File Testing 15 Days Sign‐off on testing complete & move to production Send first live issue file & discuss results with BB&T CashManager Online Administrative Review service requirements Submit setup requests Add information reporting Add reconcilement Add Positive Pay Image Access Add Account Recon Reports Schedule Training Perform Training Post Production Follow Up Review and verify all services working satisfactorily Provide BB&T post‐
implementation contact list THE DISTRICT & BB&T 5 Days THE DISTRICT & BB&T THE DISTRICT 1 Day THE DISTRICT 1 Day 3 Days THE DISTRICT& BB&T BB&T 2 Weeks BB&T 2 Weeks BB&T 2 Weeks BB&T 2 Weeks BB&T 3 Days BB&T 1 Day BB&T BB&T BB&T 1 Day BB&T A project time line will be established by our two project teams. 28
School District of Palm Beach District
Request for Proposal for Banking Services
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13.34 Does the bank assign an implementation team? What dedicated resources (personnel, equipment, training of personnel, consultants, etc.), procedures, and controls will you provide or recommend in the conversion period to ensure that the conversion is completed successfully in both a timely and accurate manner. BB&T Response: In general terms, it would be advantageous for both parties if the District were to assign a single person as project manager for the conversion. Implementation of our products and services will potentially touch different areas within your organization. A single point of contact will greatly assist our implementation team leaders in providing you with a timely and efficient conversion to BB&T. Additionally, the District will need to appoint a person to act as System Administrator. This person will be responsible for assigning user rights (add/delete users) and privileges within BB&T online systems, such as CashManager OnLine, OnSite and our Commerce Gateway services. The District personnel will need to take the time to attend online training sessions for our systems, as well. These sessions are conducted daily and a training schedule will be provided. BB&T believes that a project such as this undertaking with the District to implement the services discussed in the RFP requires a great deal of planning and follow‐up by both BB&T and the District. BB&T is prepared to commit appropriate resources to achieve the final objective; a smooth conversion for the District. Your BB&T relationship manager, Nanci Simonson, and primary Treasury Management Consultant, Cheryl Moronta, will be involved in implementation meetings as appropriate and regularly informed of progress and the implementation process as it moves forward. Our consultative methodology allows us to become an integral part of your business process. We will partner with you to focus on process improvements and enhanced business controls. This means fully understanding your needs and processes, and automating as many of these tasks as we can, in as flexible and transparent a manner as possible. 13.35 What is the average lead‐time required for implementation, including but not limited to the following services? What are the critical factors that may impact that lead‐time? a. Supplies (Encoded Deposit Slips, Endorsement Stamps, etc) b. Account Opening c. Information Reporting Setup d. Transmission Tests (Reconciliation and ACH) e. Document Tests (Imaging, MICR) f. Transfer of Assets BB&T Response: Critical factors that may impact lead time include timely submission of required implementation documents, successful testing of issue file transmissions, MICR testing of checks (optional but highly recommended), etc. Listed below is the estimated time frame for services based upon receipt of all signed and properly executed agreements: Deposit Supplies 7 Business Days 30 Business Days ACH Initiation ACH Block with Filter 5 Business Days 29
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Cash Manager Online 3 Business Days CD‐Rom Imaging 5 Business Days Full Reconcilement 10 Business Days On‐Site Deposit 5 Business Days Positive Pay 15 Business Days 13.36 Describe materials available and/or any on‐site training provided by the bank in the areas listed below. a. Cash Deposit Preparation b. Change Order Procedures/Systems c. Information Reporting/Detail Transmission Systems d. Technical Support e. Materials such as deposit slips, checks, etc. BB&T Response: File testing, training, user manuals and technical assistance are provided as part of the implementation process. We will provide training to all employees during the implementation process and we are pleased to offer additional or follow up training as required by our clients. BB&T's Client Support department has dedicated technical support professionals, who are available from 8:00 a.m. through 8:00 p.m. EST, Monday through Friday. By simply dialing a toll‐free number, Clients can contact product specialists at their convenience for training and technical assistance. BB&T’s Technical Support and Implementation team will work with your local BB&T primary contacts, the District, and the District’s vendors to ensure proper communication including telecommunication requirements, system compatibility and transmission testing as well as other on‐line or PC based applications. BB&T’s Technical Support professionals are available to support commercial Clients from 8:00 a.m. through 8:00 p.m. (EST), Monday through Friday. Our new Client training is normally held via a conference call between the trainer and the client. During the training session the trainer will set‐up and perform the training using a web conferencing system. This option allows the District to use the newly purchased product with the aid of a trainer. Once the training is complete our trainer will provide the District with our customer service options for immediate assistance. GENERAL BANKING SERVICES AND SCHOOL ACTIVITY ACCOUNTS Deposit Processing: 13.39 Provide the address of the office location that will accept deposits via courier. BB&T Response: Atlantis Branch, 3100 Lantana Road, Lantana, FL 33462 13.40 What is the cut‐off time to ensure same day ledger credit? Is it the same for cash as for checks, drafts, etc? Are there any options that might affect this cut‐off time (e.g., provisional credit, and delayed verification)? 30
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: Any deposits made through the local BB&T Branch before 5:00 p.m. EST and check deposits made via our remote deposit system, Onsite Deposit, by 9:00 p.m. EST will be given same day ledger credit. Checks drawn on the State of Florida and U.S. Treasury items would be immediately available if deposited before 5:00 p.m. EST through the Branch or 9:00 p.m. through Onsite Deposit. Checks are given immediate or “next day” availability in accordance with Reg CC. Funds received through cash wire transfer and/or ACH are given immediate availability if received before 6:00 p.m. EST. 13.41 Are weekend or holiday deposit services available? Is there an additional fee or discount for utilizing these services? BB&T Response: The District may transmit deposit files through Onsite Deposit to BB&T on weekends and holidays, however, those deposits will not be processed until the next bank business day. 13.42 What type of deposit bags does the bank allow/require? a. Does the bank provide these bags? b. Does the bank charge a fee for these bags? BB&T Response: BB&T allows single and dual pocket disposable bags. Two‐pocket bags are highly recommended. There are no size restrictions. One deposit ticket for cash and checks is acceptable. There should be one deposit ticket per bag. Deposit bags can be purchased through BB&T at BB&T.com. Style Vertical Twin 10X15 Qty BB&T 100 $24.83 + shipping and handling 13.43 Are there any benefits to separating currency, checks and coins in separate deposit bags? BB&T Response: There are not any benefits for separating checks and cash into two deposit bags. 13.44 Does the bank require that cash be deposited in standard straps only? Is there a penalty for depositing non‐standard straps? BB&T Response: BB&T encourages standard straps, however, when there is not enough currency for a standard strap, non‐standard is acceptable. There are no penalties. 31
School District of Palm Beach District
Request for Proposal for Banking Services
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13.45 Provide a copy of your deposit preparation instructions. BB&T Response: A copy of our BB&T Vault Implementation Guide is provided in the Appendix of this RFP 13.46 Does the bank accept loose and/or rolled coin for deposit at the vault, and branch locations? Is there a fee for depositing loose or rolled coin? BB&T Response: There is no fee for depositing loose or rolled coin. BB&T has a fee for coin/currency deposited totals. Please see included proforma for this information. The bank will accept rolled coins in mixed deposit envelopes. BB&T would require reimbursement (at cost) for providing bags/containers. 13.47 What type of check reader/sorter does the bank use? BB&T Response: Canon Image Formula CR – 180, documents are scanned every two hours. 13.48 Do Zero Balance Account (ZBA) reports include float? BB&T Response: Yes Zero Balance Account Reports do include float on the Master Account Only based on previous day reporting. 13.49 How does the bank determine and calculate availability of deposited items? BB&T Response: Funds are collected based on the ABA number of each individual check deposited. On‐Us items (Drawn on BB&T) – immediate availability  Local or In‐State items – one day availability  Out of state (Other) items – 2 – 3 day availability State of Florida and U.S. Treasury items would be immediately available if deposited before 5:00pm EST. Local checks drawn on local banks are given immediate or “next day” availability in accordance with Reg CC a. Does the bank give immediate availability for on‐us items? BB&T Response: On‐Us items (Drawn on BB&T) – immediate availability b. Does the bank calculate availability by item or formula? BB&T Response: Funds are collected based on the ABA number of each individual check deposited. c. Does the bank use a standard schedule? Accelerated schedule? How often is it updated? 32
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: BB&T would assign the District an accelerated availability schedule upon award of the banking relationship. Availability schedules are flexible and special arrangements can be made for high volume accounts or pre‐encoded checks. d. Provide a copy of the availability schedule that will apply to deposits into the District’s accounts. BB&T Response: A Copy of the District’s assigned availability schedule has been included with our RFP response. 13.50 What are the requirements for depositing checks (e.g. pack size, audit tapes)? BB&T Response: BB&T would prefer that the District prepare deposits under the same guidelines as other commercial clients. These guidelines are as follows: Checks for deposit should be stacked in the same direction and in the order that they are listed on the deposit ticket. Large stacks of checks should include an adding machine tape. Limit the number of items in each batch to 300. All checks should be properly endorsed on the back of the check on the end that is behind the memo field and company name information. Checks and adding machine tapes should be free of paper clips and staples. 13.51 Does the bank offer remote deposit services? BB&T Response: BB&T’s OnSite Deposit is the most versatile and easy‐to‐use remote depositing system on the market today. This system requires no software on the part of the user. The District would receive a better availability schedule for deposits made via remote deposit services. This second schedule provides enhanced availability beyond the branch schedule. 

The District will have online access to a two‐year history of deposit information and check images at no additional charge. The District may also choose to save images to an internal system for longer archival periods. All deposits received by BB&T prior to 9:00 p.m. (EST) will be processed the same business day. Files received after 9:00 p.m. (EST) will be processed the next business day. a. Provide any information on the service including specifications. BB&T Response: 33
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
The OnSite Deposit product suite is accessible and operable directly over the Internet from a secure web site. Using a scanner supported by BB&T, OnSite Deposit enables you to scan and deposit checks from any Windows®‐based personal computer with Internet access. The scanned images and deposit information are securely and confidentially transmitted to BB&T’s deposit processing operations, which post the check deposits to your business account. Drivers for scanner hardware are included. Not only does the web based service make operation easy, but new features and enhancements are immediately available to all users. The Onsite Deposit requires that scanner drivers and Silver Bullet Ranger (universal check scanner interface) be loaded to the computer used to scanned the deposit. BB&T may also be compatible with a current scanner the District may be utilizing. The District is not required to scan a deposit ticket with the items deposited for credit. If the District is interested in this service, BB&T will be happy to provide pricing after an in depth discussion due to multiple options that are available. b. Will the bank provide the equipment needed? Is there a charge for the equipment? If so, please provide. If any contracts or agreements are required for the equipment,please provide. 34
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: If awarded the Districts Banking Services, BB&T will supply the required two scanners at no cost to the District. 13.52 What courier services does the bank provide, if any, for pick‐up and delivery of check deposits? BB&T Response: BB&T maintains business relationships with all of the major armored courier companies and provides secure facilities for check and cash processing. If desired, courier service will be a separate contract between the District and the armored courier company of its choice. All invoices for the armored car service would be paid through the District. 13.53 Provide a list of the bank’s holidays. BB&T Response: 13.54 Deposit Verification: 13.55 How will the bank return the validated deposit receipts to us? Within what time frame? BB&T Response: BB&T opens the bag, removes the deposit slip and makes an initial entry to the District’s account for the amount of the deposit slip without verifying the contents of each bag. BB&T will return the validated deposit ticket to the District by the next business day. 13.56 If provisional credit is given, when does verification take place? In 24 hours? In 48 hours? BB&T Response: BB&T opens the bag, removes the deposit slip and makes an initial entry to the District’s account for the amount of the deposit slip without verifying the contents of each bag. The District agrees that such initial entry is subject to correction following a detailed verification by BB&T of the contents of each bag. Verification, and any necessary corrections, are made the next business day following the original deposit. 35
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.57 Does the bank identify and adjust all discrepancies? BB&T Response: BB&T does identify and adjust all discrepancies. a. If no, at what dollar amount does the bank write off discrepancies? BB&T Response: Not applicable b. What is the standard procedure for reporting deposit adjustments? What additional options are available (e.g., copies to multiple locations)? BB&T Response: BB&T will credit the amount of the original deposit slip. Any debit or credit adjustments will be made as separate entries on the depository account. BB&T will be able to provide a debit or credit memo which outlines the reason for adjustment, deposit breakdown, and a copy of the deposit ticket. Also, the images of Misc Debits / Credits processed as paper can be viewed on CashManager Online using Previous Day Information Reporting. c. What is the bank’s policy on receipt of tampered bags? BB&T Response: Bags that appear to be tampered will be returned to the individual District assigned representative. Notification of the return of the envelope will be made by telephone or email to the designated District representative. 13.58 When counterfeit bills are discovered, what is the bank notification and adjustment process? BB&T Response: Counterfeit bills located in deposits will follow the normal adjustment process with the addition of a completed copy of the SF 1604 form. We will not absorb the cost of counterfeit bills detected at time of deposit. Counterfeit currency charge‐backs detected at the Federal Reserve will be absorbed by BB&T and not charged to the District’s account. 13.59 Does the bank provide training for the District’s cashiers to ensure proper preparation of deposits and regarding procedures to recognize counterfeit bills? BB&T Response: We recommend the District request training from the United States Secret Service who can help cashiers detect and guard against counterfeit. 13.60 Vault Services: 13.61 Does the bank have an automated vault service? Describe the deposit and change order procedures, cut‐off times, and other features of this system? BB&T Response: BB&T encourages clients to use BB&T’s Automated Coin and Currency Ordering System. Business clients can use the automated telephone service to place orders twenty‐four (24) hours per day, seven 36
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
(7) days per week. The system will process three (3) runs per day, Monday through Saturday. Clients are required to enter an identification number and a four digit code to place orders. 13.62 Are there minimum purchase requirements (e.g., standard straps of currency and full boxes of coin)? Is a discount offered for purchasing standard amounts? What settlement options are available for change orders (e.g., cash, check, debit to account, wire)? BB&T Response: BB&T has no minimums on change orders. Change orders will be debited to the appropriate District account.
13.63 Return Item processing: 13.64 Can items be automatically redeposited? If so, how many times? BB&T Response: BB&T is able to process returned checks a second time prior to returning to the District. This service is considered Special Handling and will require written authorization from the District. In the event of second nonpayment, BB&T will debit the account to which the check was deposited and provide the check and debit advice to the District. The debit advice will contain the original check along with maker name. a. Is this service optional by location? BB&T Response: This service can be optional by location. b. Can copies of all redeposited return items be provided to the depositing location or a central office? If so, within what time frame? BB&T Response: The District will be able to retrieve images of return checks via CashManager OnLine, our web‐based reporting system within one business day. In addition, BB&T will mail a return item advice to the District with a copy of the returned items. 13.65 Provide the bank’s standard return item processing instructions. List any non‐standard options that are available. BB&T Response: The District can request that their return deposited item be charged to an alternate account, mailed to an alternate address, charged back to the branches cash items (branch of ownership or branch that took the deposit) or sent to the branch. These actions can be combined. 13.66 Can the bank provide a detailed return item transmission to the District? 37
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: BB&T can provide a detailed return item transmission. A return item will be charged back to the depositor's account and mailed to the client without redeposit unless the clients gives special instructions that tells us to act differently. BB&T will redeposit a return item once at the standing instructions of the client. a. Please provide details on this service including the fields available and if there is a separate record for each returned item. BB&T Response: BB&T does offer a return item transmission. In addition, BB&T can furnish information via internet through CashManager OnLine. Both methods will include store or location number (if applicable), amount of check, check serial number, return reason, maker of check, maker ABA routing number, and maker account. Costs can be discussed if the District feels this service will be beneficial. There is a separate record provided for each returned item. b. Can these records identify the depositing location and the type of item being returned (e.g., personal check, traveler’s check, and money order)? BB&T Response: The records can identify the depositing location. Deposit slips with MICR encoded location numbers must be used for location reporting. 13.67 Does the bank have a policy to refuse return items not sent through the system in a timely manner? BB&T Response: The bank will refuse return items for late return upon the clients’ request. 13.68 Does the bank assign float to return items? BB&T Response: Float for return deposited item re‐deposits are passed as 1 day at the full item amount. Float days are calculated by a formula in BB&T’s exception item system for Paid NSF’s, Exceptions Paid, Stops Paid and RDI. 13.69 Should the District choose to utilize the services of a collection agency, please describe how the bank would interact with the provider of those services. BB&T Response: A return item will be charged back to the depositor's account and mailed to the client without redeposit unless the clients gives special instructions that tells us to act differently. The District can request that their return deposited item be charged to an alternate account, mailed to an alternate address, charged back to the branches cash items (branch of ownership or branch that took the deposit) or sent to the branch. These actions can be combined. 38
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.70 Data Transmission: 13.71 Describe the technical support available to aid in electronic data transmissions. BB&T Response: BB&T’s Technical Support and Implementation team will work with your local BB&T primary contacts, the District, and the District’s vendors to ensure proper communication including telecommunication requirements, system compatibility and transmission testing as well as other on‐line or PC based applications. BB&T’s Technical Support professionals are available to support commercial Clients from 8:00 a.m. through 8:00 p.m. (EST), Monday through Friday. 13.72 What type of output media is available for deposit reporting, e.g., mailed paper report, CD‐ROM, download from an online system and/or electronic transmission? BB&T Response: BB&T bank statements are available on‐line next business day following cycle end cutoff (month end) through CashManager OnLine. They are also sent via U.S. Mail within 5 days of statement cutoff. All statements include detailed listings of all debit and credits, including check numbers in serial order, transaction dates, daily balances, and deposits listed with sequence/location numbers. The District will be able to view up to 24 months of bank statements in a PDF format through Cash Manager OnLine. CD‐ROM Imaging is available to take advantage of a faster, more reliable way to research and retrieve paid checks, all while saving important storage space. Utilizing BB&T’s CD‐ROM Imaging capabilities, the District can possess a paper‐free, digitized record of paid checks. BB&T does offer Deposit Reconciliation services to assist with identifying deposits concentrated from multiple locations and in addition to providing a tracking report by location numbers. Through this reconciliation method, BB&T uses special MICR encoding of location numbers on deposit tickets which would need to be included in the numbered coin collection bags. The MICR numbers then allow BB&T to provide a report that details and subtotals each deposit, by location and in chronological order. All reconciliation data and reports are available via transmission or secure email delivery, to interface with your software. BB&T will provide all monthly reconciliation information within 5 days of statement cutoff. 13.73 The District requires a check fraud prevention service such as positive pay for the District’s accounts payable and payroll accounts. Please provide a brief description of your positive pay process. Can check issue information be updated during the day? BB&T Response: BB&T can offer positive pay services for all types of disbursement accounts. BB&T’s Implementation and technical client support team will work with the District to ensure proper communication including telecommunication requirements, system compatibility and transmission testing. Check issue files may be transmitted to BB&T or uploaded via CashManager Online. Check issue files received between 8:00 a.m. and 3:45 p.m. EST will be processed the same business day. BB&T can provide payee verification as part of the Positive Pay service. Additional testing will take place to ensure that the payee name can be obtained from the check images and that the payee name 39
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
is provided in the check issue file exactly as it is printed on the first line of the check (up to 40 characters). BB&T compares the payee name from the paid check image with the name provided by the District. In the event the District is closed for business and there are Positive Pay exceptions to decision, BB&T will utilize the default decision (of pay or return) chosen by the District during the set up process. BB&T provides a teller line interface to your check issue file. If checks presented to a BB&T teller do not match the data on your file, the individual attempting to cash the check will be referred to the District. BB&T provides a teller line interface to your check issue file. If checks presented to a BB&T teller do not match the data on your file, the individual attempting to cash the check will be referred to the District. An alert message will display on CashManager OnLine (CMOL) informing the District of any Positive Pay exceptions which must be reviewed and dispositioned as “pay” or “return.” An Event Notification service is available which will provide email notification that Positive Pay information is available to view.  Suspect checks are manually examined by BB&T for possible encoding errors and misreads, and if applicable, mistakes are corrected  Any exceptions identified will be included in your Positive Pay suspect items which are available as early as 10:00 a.m. EST each business day.  BB&T provides Positive Pay exception reporting via CashManager Online as early as 10:00 a.m. (EST) each banking business day to review exception items. The District will access the Positive Pay module no later than 2:00 p.m. (EST) each banking business day to make pay/return decisions on any exception items. The default selected during implementation will be utilized if a decision is not made by the deadline. Images are available of the front and back of each item. 13.74 The District will transmit ACH files for employee and vendor payments. Please provide an ACH calendar as well as the various windows and cutoffs. BB&T Response: The District may initiate ACH transactions using our CashManager OnLineSM (CMOL) system or Data Transmission. CashManager OnLine: This BB&T Internet‐based solution allows you to maintain and update your ACH transaction data, import data and ACH formatted files, and transmit files electronically. BB&T CashManager OnLine offers the convenience of managing your ACH payment information over the Internet and performing other real‐time cash management transactions anytime. In CashManager OnLine the procedure to create and send an ACH transaction starts by accessing the credit/edit payments button on the ACH module. From there, the District would browse to identify the NACHA formatted file or other file that contains the ACH information and click on “Import”. This would bring the file into CMOL and ready it for transmission. If the file is NACHA formatted, the District would use the pass through module to send BB&T the file. 40
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Data Transmission: Using the industry standard National Automated Clearing House Association ACH file format, you can transmit your ACH transaction data directly to BB&T from your PC or mainframe. BB&T supports Secure FTP (SSH or SSL), Connect: Direct Secure Plus, and several other secure file transfer options to meet the District’s technical requirements. Timing: Cut‐Off Time Customer Input Next Day 2 or more Days Book Transfer (Same Day Method Settlement) Settlement Settlement Direct Transmission 8:00 pm EST 8:00 pm EST 8:00 pm EST CashManager OnLine 8:00 pm EST 8:00 pm EST 8:00 pm EST BB&T processes backups prior to and after each window. Backups are sent to off site storage after each processing window. Our ACH system is programmed to identify duplicate files. BB&T will put the client on a file‐processing schedule. All Windows are balanced and verified to transmission received. File acknowledgements are handled as follows:  CashManager OnLine –Reports available via CashManager OnLine will illustrate the status of each file sent. Summary level reports are available to confirm file control totals.  Transmissions – BB&T can support acknowledgements and validation of file control totals via fax and/or email. 13.75 Wire Transfers: 13.76 What is the opening hour and cut‐off time in Eastern Standard Time for initiating wire transfers to ensure same‐day execution? List by type of transfer and method of communication. BB&T Response: The District can utilize the CMOL wire module to originate repetitive and non‐repetitive wire transfers (domestic & international) from your BB&T account. Domestic or international wires may be sent until 5:00 p.m. EST each business day for same‐day processing. BB&T provides the ability to originate repetitive and non‐repetitive wire transfers (domestic & international) from your BB&T account through Four channels:  CashManager Online Wire Service ‐‐ approximately 4300 active clients  Corporate Call ‐‐ approximately 400 active clients  Standing Transfer Order ‐ 400 active clients.  Commerce Gateway Integrated Payables ‐‐ approx 100 active clients BB&T’s Wire Transfer services provide a company the ability to originate repetitive and non‐repetitive wire transfers from their BB&T accounts. There are four types of wire transfer services available: 41
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012


CashManager OnLine PC Wire Service – Initiate repetitive and non‐repetitive, outgoing wires using their PC. This service is available through CashManager OnLine, BB&T’s comprehensive, Internet‐
based system that offers a variety of cash management services. Corporate Call Wire Transfer – Initiate repetitive and non‐repetitive outgoing wires using your telephone and a four‐digit Personal Identification Number (PIN). 
Standing Transfer Order – Automatically initiates a wire transfer on specific days, times and amounts, or all collected funds over a selected balance.  Commerce Gateway Integrated Payables 13.77 What is the cut‐off time for incoming domestic wire transfers to receive same day credit? BB&T Response: Incoming wires are posted to the District’s BB&T account until 6:00 p.m. EST. 13.78 Does the bank provide end of day extensions for processing if Fed wire hours are extended? If so, how would the District be advised? BB&T Response: Domestic or international wires may be sent until 5:00 p.m. EST each business day for same‐day processing. 13.79 Can a wire transfer be canceled after the District releases it to the system? What is the procedure? What is the latest time in the day to cancel? Is there a charge for cancellation? BB&T Response: The District would need to call the BB&T wire transfer department to attempt to cancel the wire. Since Wire Transfers are by design processed straight‐through, there is very little time to cancel a wire unless it is post‐dated. BB&T will make every reasonable effort to cancel wire instructions for a wire that has not been released to the wire payment network. If a wire has been released by BB&T to the wire payment network, then BB&T will attempt to recall the wire. 13.80 How does the District track the status of transfers once the transfer is in the system (input, approved and released)? How does this differ for telephone initiated wire transfers? BB&T Response: BB&T recommends that the District access a current day report via CMOL to review detailed information for incoming and outgoing wire transfers including amount, type, date, time, status, beneficiary or originator (outgoing or incoming), FED reference number, BB&T reference number, ABA routing number, address (outgoing only) and comments. BB&T can send notification of incoming wire transfers via Event Notification e‐mail to the District’s staff designees. 42
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.81 What is the bank's policy in case of a wire transfer failure for which the District has confirmed receipt of instructions? BB&T Response: Failed wire transfers initiated through CashManager OnLine are reported within the application via Wire Transfer Reports. This report receives batch updates every 30 minutes throughout the business day. The District will receive a call same day for all failed Corporate Call wires (wires called in to our Wire Operations using PIN authorization and call‐back verification). BB&T has an investigation staff dedicated to researching problem transfers and providing information back to the customer the same day or within 24 hours after the request is made. 13.82 How and when is the District notified of a failed wire transfer? BB&T Response: Failed wire transfers initiated through CashManager OnLine are reported within the application via Wire Transfer Reports. This report receives batch updates every 30 minutes throughout the business day. The District will receive a call same day for all failed Corporate Call wires (wires called in to our Wire Operations using PIN authorization and call‐back verification). 13.83 Describe the most recent major hardware and/or software upgrade. BB&T Response: CashManager OnLinesm Upgrade: A major system upgrade to CashManager OnLinesm, BB&T’s Internet‐based balance reporting and transaction initiation system was implemented in early 2012. Among other things, the upgrade included:  Enhanced usability, easier navigation, and improved Administrative detail reports  Loan balance information and the ability to initiate loan paydowns  Dual Administration  Automatic access blocking for inactive users  User ability to establish wire transaction limits by account and by user 13.84 Does the wire transfer system reside on the bank's central computer system? Do customers interact with that system? BB&T Response: CashManager OnLine PC Wire Service – Initiate repetitive and non‐repetitive, outgoing wires using their PC. This service is available through CashManager OnLine, BB&T’s comprehensive, Internet‐
based system that offers a variety of cash management services. 13.85 How the customer's access to the bank's wire transfer systems controlled? BB&T Response: Clients are encouraged and reminded to utilize CashManager OnLine fraud prevention features and to follow guidelines for safeguarding confidential security credentials. Each user of CashManager OnLine services should use only his/her unique log‐in credentials. Transaction capabilities should be strictly limited to an ‘as absolutely necessary’ basis. BB&T has consistently reviewed its security offerings and partnered with our clients to offer compatible solutions. BB&T has and will always endeavor to assist 43
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
clients suffering losses due to fraud. However, safeguarding user IDs/passwords, secure token IDs, as well as client workstations is ultimately a client responsibility. The antivirus software on your PC guards against viruses, but it doesn’t protect your identity on the Internet. BB&T has partnered with Prevx, a leading provider of Internet security software, to make Prevx SafeOnline available free to each CashManager OnLine user. In addition, the upgraded Prevx 3.0 Internet Security is provided to users at a discounted rate. Prevx SafeOnline—provided free—creates an extra layer of security for the passwords, account numbers and other confidential information while online by encrypting your keystrokes. BB&T has not had any internal experience with fraud in the wire transfer area. 13.86 Does the bank offer its customers dual control release options (intermediary approval level) for electronically initiated transfers? If so, describe. Is this required for repetitive wire transfers? BB&T Response: Dual Administration: CashManager OnLine allows the District to control the creation, approval, and release of transactions. The Administrator has the ability to establish authorized users, passwords, restrictions, etc. The Administrator may assign/delete these functions as necessary to others on line. Each user has a unique operator ID that can be restricted to accessing only portions of the information for designated accounts. For passwords, the minimum is 8 characters and maximum is 16 with at least one numeric value. Users can also be assigned various combinations of dollar limits with respect to initiating monetary transactions. 13.87 Is security the same for repetitive and free form wires initiated by all of the methods listed above? If not, how does it differ? BB&T Response: Individual users within a company are given ID’s and passwords to access the system. These users are set‐up by the system administrator within the company to allow for specific access based on account and dollar limits.  As an additional layer of security, a Security Token is assigned and registered for each user. A Security Token is a small, connectionless device that generates a one‐time password to use each time you log in to CashManager OnLine. This password is unique to your account, and it changes every 32 seconds. The token is invoked also for the final approver for any money movement function (Transfer, Wire, ACH).  Dollar limit controls can be established on a user or company level  Detailed audit reports available BB&T sends an acknowledgement following both incoming and outgoing wire transfers. A company will select the notification means (e.g., CashManager OnLine, phone, fax, U.S. Mail, etc.) for the acknowledgements. 13.88 Are security access codes (passwords) encrypted or authenticated? Is an Audit Report available showing all activity over a given period, including User ID, date and time? 44
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: Security codes are authenticated. The District can obtain a log‐on report by contacting Treasury Management Client Support Monday‐Friday from 8:00 a.m. – 8:00 p.m. Additionally; the District can generate a Customer User Activity Report within the Administration module via Cash Manager OnLine. 13.89 Can limits by user and function be established for single transaction amounts and daily aggregate amounts? BB&T Response: CashManager Online allows the District to control the creation, approval, and release of transactions. The Administrator has the ability to establish authorized users, passwords, restrictions, etc. The Administrator may assign/delete these functions as necessary to others on line. Each user has a unique operator ID that can be restricted to accessing only portions of the information for designated accounts. Users can also be assigned various combinations of dollar limits with respect to initiating monetary transactions. 13.90 Can District create repetitive transactions online? What approvals are required? BB&T Response: Dual Administration: CashManager OnLine allows the District to control the creation, approval, and release of transactions. The Administrator has the ability to establish authorized users, passwords, restrictions, etc. The Administrator may assign/delete these functions as necessary to others on line. Each user has a unique operator ID that can be restricted to accessing only portions of the information for designated accounts. For passwords, the minimum is 8 characters and maximum is 16 with at least one numeric value. Users can also be assigned various combinations of dollar limits with respect to initiating monetary transactions. 13.91 What controls has the bank put in place to prevent wire transfer fraud? What has been the bank’s experience with fraud in the wire transfer area? BB&T Response: BB&T is a federally regulated financial institution subject to several national and state privacy laws that prohibit our disclosure of incident specific details. However those same regulations have required BB&T to maintain a high level of controls in place intended to protect information and avoid fraud. It is the policy of BB&T to comply with all applicable, federal, state and local health and safety regulations and to provide a work environment as free as practicable from recognized hazards. Employees are expected to comply with all safety and health requirements whether established by BB&T or by federal, state or local law. In addition, BB&T will make reasonable efforts to provide for the security of its employees, its property, and authorized visitors to its premises. Physically, BB&T houses all communications devices and equipment in secured areas within our several Data Centers. Each Center is protected by 24 hour/seven day a week card key access, remote cameras and on‐site guard station, which limit and monitor all access to internal and external areas of company buildings. 45
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Electronically, the corporate network is secured with internal firewalls that monitor and block all incoming and outgoing data. We do not allow remote access to the corporate network. In addition to these network safeguards, we utilize multi‐factor authentication, which includes company ID, assigned user name, password, and security token ID’s for clients using our internet and transmission based products. Clients are encouraged and reminded to utilize CashManager OnLine fraud prevention features and to follow guidelines for safeguarding confidential security credentials. Each user of CashManager OnLine services should use only his/her unique log‐in credentials. Transaction capabilities should be strictly limited to an ‘as absolutely necessary’ basis. BB&T has consistently reviewed its security offerings and partnered with our clients to offer compatible solutions. BB&T has and will always endeavor to assist clients suffering losses due to fraud. However, safeguarding user IDs/passwords, secure token IDs, as well as client workstations is ultimately a client responsibility. The antivirus software on your PC guards against viruses, but it doesn’t protect your identity on the Internet. BB&T has partnered with Prevx, a leading provider of Internet security software, to make Prevx SafeOnline available free to each CashManager OnLine user. In addition, the upgraded Prevx 3.0 Internet Security is provided to users at a discounted rate. Prevx SafeOnline—provided free—creates an extra layer of security for the passwords, account numbers and other confidential information while online by encrypting your keystrokes. BB&T has not had any internal experience with fraud in the wire transfer area. 13.92 On what basis does the bank calculate daylight overdraft positions? BB&T Response: BB&T will work with the District to monitor accounts and ensure all demands upon the accounts are met. Daylight overdraft requires pre credit approval in order to be available to the District. 13.93 Describe measures to assure that the District will not be charged for overdrafts due to bank delays in posting investment income, incoming wires and other credits. BB&T Response: BB&T will conduct an investigation and analysis and make adjustments as needed. These adjustments are based on standard compensation techniques. 13.94 Transaction Research: 13.95 Does the bank adjust the deposit amount or process an adjusting debit or credit? The District requires supporting documentation on any debit or credit correction memo. BB&T Response: BB&T does identify and adjust all discrepancies. BB&T will post the original deposit amount. Any deposit correction would be processed by separate debit or credit entries for deposit adjustment items. BB&T will be able to provide a debit or credit memo which outlines the reason for adjustment, deposit breakdown, and a copy of the deposit ticket. 46
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.96 Within what time frame can the bank provide requested copies or documentation? What delivery options are available? BB&T Response: A dedicated research team is empowered to complete investigations and fully resolve inquiries, including making necessary adjustment to client accounts. BB&T will conduct an investigation and analysis and make adjustments as needed upon being notified. These adjustments are based on standard compensation techniques. The District can use phone, fax, and secure E‐mail for initiating and tracking inquiries. In order to meet acceptable standards, such as the retrieval or copy of a statement or check, we commit to a 24‐hour turnaround. 13.97 Disaster Recovery and Control: 13.98 Describe the bank’s electronic data procedures and/or manual system used to provide banking services along with backup and recovery capabilities. BB&T Response: BB&T’s primary processing site is the Wilson Operations Center. BB&T uses a combination of vendor supported services and IT infrastructure at other BB&T sites to support the recovery of Wilson’s Operations Center in the event of a disaster or large systems failure. BB&T has contracted with a world recognized disaster recovery service provider. Our primary hotsite is in a different state than our Operations center and provides for replication of our mainframe processing . Our backup equipment remains powered up and in a daily ready state. This dedicated equipment supports sending our critical data across multiple dedicated AT&T data circuits. We backup all mainframe production files multiple times each day. All data needed to recover our mainframe environment is kept in an automated tape system or disk infrastructure at the hotsite and in a ready state. BB&T also has a second processing center and is located in Charlotte, NC, where we have installed our largest amount of redundant network and distributed systems capabilities. All BB&T sites (check processing sites, branches, ATM’s and corporate offices) have redundant network connections to both Wilson and Charlotte. If the Wilson site goes down, we establish our network through the offsite location, and the rest of BB&T’s environment is then connected through the Charlotte site. We have switched our entire production network from Wilson to the hotsite in less than 15 minutes during test exercises. Many of our distributed systems have redundant servers in Charlotte to support the recovery of an outage in Wilson. Depending upon individual system requirements, some distributed systems have their production servers in locations other than Wilson, and some have their disaster recovery servers in locations other than Charlotte The Treasury Management Call Center 800 line is available during normal business hours to support the client’s Treasury Management needs. In the event the Call Center is in a Disaster Recovery the Treasury Management Consultant or the clients Relationship Manager would be utilized as backup support. 47
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.99 Where are the bank’s off‐site facilities located? BB&T Response: All BB&T sites (check processing sites, branches, ATM’s and corporate offices) have redundant network connections to both Wilson and Charlotte. If the Wilson site goes down, we establish our network through the offsite location, and the rest of BB&T’s environment is then connected through the Charlotte site. The sites are greater than 200 miles apart. 13.100 How quickly can the "hot" site be implemented in case of an emergency? BB&T Response: We have switched our entire production network from Wilson to the hotsite in less than 15 minutes during test exercises. Many of our distributed systems have redundant servers in Charlotte to support the recovery of an outage in Wilson. Depending upon individual system requirements, some distributed systems have their production servers in locations other than Wilson, and some have their disaster recovery servers in locations other than Charlotte. BB&T’s disaster recovery plans are tested and documented every 6 months as part of our audit and regulatory compliance requirements. Our most recent test was conducted in November 2011. 13.101 Provide a detailed description of the controls in place to insure the integrity of the funds transfer system. BB&T Response: Cash Manager OnLine is a multipurpose cash management internet application, proving access to your business 24 hours a day, seven days a week. Each department within BB&T that supports Cash Manager OnLine is required to adhere to a Business Recovery Plan. Those plans document, in specific detail, actions to be taken for the continuation of critical business functions following a business interruption. They contain detailed procedures for managers to follow when the plan is activated, that include contact information for key employees, roles and responsibilities for the managers to follow when the plan is activated and procedures for recovering critical functional needs. If in the event of a disaster, Cash Manager OnLine, at the advisement of senior management, would engage support personnel to activate the plan and determine if the event would require relocation to our alternate back up site. This plan, when evoked, is designed to have duplicated operational capability within a 24 – 48 hour timeframe. 13.102 How will the bank assist the District during a disaster, i.e. backup plans for direct deposit of payroll? BB&T Response: Unfortunately BB&T does not archive processed files for later resubmission. Initiating payments from a file already processed is something that banks have for years needed to guard against. A best practice for the District would be to have backup ACH procedures to send a secondary file to BB&T. BB&T will certainly offer several means by which we can collect the payment file in the case of an emergency. 13.103 Describe the types of insurance and bonding carried. 48
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: BB&T currently has bonding of $45,000,000. Several different types of insurance are maintained at levels sufficient to cover all business activities. Specific certificates of insurance can be supplied to the District upon request. 13.104 Online Access: 13.105 Will the account reporting system provide beginning and ending ledger (book) balances, collected balances, available balances, and float assignment as well as transaction details for both current and prior days? BB&T Response: CashManager OnLinesm is BB&T’s Internet‐based balance reporting and transaction initiation system. The District will have access to an unparalleled suite of tools that will help you manage your daily business activities. Ever‐changing and time‐critical information about your BB&T accounts is available at your fingertips with CashManager OnLine, anytime, anywhere. CashManager OnLine helps save time, streamline processes and improve cash flow. Using a Web browser and desktop or portable PC, the District can:  Access current and previous‐day account information  View/print online account analysis and investment sweep statements  view/print commercial deposit account and savings account statements  Create your own customized reports through transaction search  Make real‐time intra‐bank account transfers  Initiate a wide variety of ACH transactions from payments to collections  Initiate real‐time domestic and international wire transfers  Place stop payments  Transmit positive pay check files  View paid check images online  view/print deposit tickets and individual transit items within the deposit  Receive immediate online confirmations  Download account information in BAI 2 or CSV file format CashManager OnLine is a web based service with no special hardware or software required. BB&T supports the following combinations of Operating Systems and Internet Browsers: Computer Type Operating System Internet Browser PC Windows XP SP3 Internet Explorer 7.0 and 8.0 Firefox 3.6 and 4.0 PC Windows 7 Internet Explorer 8.0 and 9.0 Firefox 3.6 and 4.0 Mac Mac OS X v10.5.6 Safari 5.0 49
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Event Notification: CashManager OnLine can provide users with email notifications when important events occur. These may include wire, Automated Clearing House (ACH) and account transfer transactions that have been initiated from your account or are pending approval. The District users can receive and read notifications at any device that is capable of receiving email. Security: BB&T understands that information security is a top priority for the District. CashManager OnLine incorporates multiple levels of security so the District can be confident sensitive account information is safeguarded. These security measures include Secure Socket Layer (SSL) data encryption, Two‐Factor Token Authentication, user authentication, operator limits on access to services, functions, and approval/payment amounts, the ability to restrict “free‐form” transactions, and the ability to deploy multiple payment approval schemes. The user authentication expiration requires users to change their passwords every 30 days. Expired passwords can be reused every six months. For passwords, the minimum is 8 characters and maximum is 16 with at least one numeric value. The antivirus software on your PC guards against viruses, but it doesn’t protect your identity on the Internet. BB&T has partnered with Prevx, a leading provider of Internet security software, to make Prevx SafeOnline available free to each CashManager OnLine user. In addition, the upgraded Prevx 3.0 Internet Security is provided to users at a discounted rate. Prevx SafeOnline—provided free—
creates an extra layer of security for the passwords, account numbers and other confidential information while online by encrypting your keystrokes. Dual Administration: CashManager OnLine allows the District to control the creation, approval, and release of transactions. The Administrator has the ability to establish authorized users, passwords, restrictions, etc. The Administrator may assign/delete these functions as necessary to others on line. Each user has a unique operator ID that can be restricted to accessing only portions of the information for designated accounts. For passwords, the minimum is 8 characters and maximum is 16 with at least one numeric value. Users can also be assigned various combinations of dollar limits with respect to initiating monetary transactions. CashManager OnLine requires users to change their password at the initial login and then requires the password to be changed every 30 days. Expired passwords can be reused every six months. District Administrators on CashManager OnLine will be notified via e‐mail if the Administrators make any changes to user profiles when the proactive notification is turned on. 13.106 How often are current day balances and transaction detail updated? What other current‐day reporting items are available through the reporting system? BB&T Response: Information Reporting: BB&T’s CashManager OnLine service provides both account balance summary reports and transaction detail reports. Current Day Detail Reports include detail transaction information for wire transfers, ACH activity, controlled disbursement, lockbox and return deposited items. Reports are available for viewing Monday – Sunday, 24 hours a day. They are updated at least every thirty minutes from the time of processing, starting at 8:00 a.m. EST and concluding at end of day for specific products. i.e. wire transfers @ 5:00 p.m. EST, and ACH @ 8:00 p.m. EST. Previous Day Detail Reports include detail transaction information on all debits and credits from the previous night’s processing. CashManager OnLine does have a comprehensive report that includes all 50
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
detailed transactions for 187 rolling calendar days. CashManager OnLine reports can be customized by individual users so that whatever level of detail desired is provided. This would include grouping accounts into a single global report. These reports can be displayed at the Bank/User/Client level. Listed below are standard reports. 
Previous Day Summary Report to include wire transfer, ACH, controlled disbursement, lockbox, loan activity. 
Previous Day Statement Report to include wire transfer, ACH, controlled disbursement, lockbox, returned deposited items, and loan activity. 
Previous Day Detail Report to include wire transfer, ACH, controlled disbursement, lockbox, loan activity. 
Previous Day BAI2/CSV File Export to include wire transfer, ACH, controlled disbursement, lockbox, loan activity. 13.107 Can multiple users access the information? If so, can the bank restrict users to accessing only portions of the information? Please describe the administrative functionality that is available to the School District? Can the District add users? BB&T Response: CashManager OnLine allows the District to control the creation, approval, and release of transactions. The Administrator has the ability to establish authorized users, passwords, restrictions, etc. The Administrator may assign/delete these functions as necessary to others on line. Each user has a unique operator ID that can be restricted to accessing only portions of the information for designated accounts. For passwords, the minimum is 8 characters and maximum is 16 with at least one numeric value. Users can also be assigned various combinations of dollar limits with respect to initiating monetary transactions. CashManager OnLine requires users to change their password at the initial login and then requires the password to be changed every 30 days. Expired passwords can be reused every six months. District Administrators on CashManager OnLine will be notified via e‐mail if the Administrators make any changes to user profiles when the proactive notification is turned on. 13.108 Are ACH returns and ACH Notifications of Change available? BB&T Response: Notification of Return/Information Reporting: ACH reporting is available through a CashManager OnLine Current Day ACH report. The following information is included on the Current Day ACH report: Account Number, Trace number, Amount, Customer ID Customer Name, Transit routing number, Company name and ID and Entry Description. Notifications of change will include corrected information. Returns will include a return reason code. 13.109 Can account analysis detail be downloaded into excel from your system? If not, can it be provided as a monthly transmission? 51
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: BB&T will provide account analysis statements to the District’s office by the 10th of the month. Statements can be accessed through CashManager OnLine in addition to being received via US mail. BB&T’s month end analysis statements will detail all bank activities / services in addition to the related per unit pricing. Each month’s statement will remain available for 45 business days. The District may also opt to receive an analysis statement via an 822 file. A sample of the format is included in the attachments section of the proposal. Cost is $25 per month. 13.110 Can balances and transaction detail be downloaded from the system? In what formats (pdf, html, csv, excel)? BB&T Response: The District may be interested in taking advantage of a feature available through CashManager OnLine whereby information can be downloaded in Comma Separated Value (CSV) and/or BAI2 formatted files. The District would have the ability to download based upon transaction type, i.e., paid checks, outgoing wire transfers, electronic debits or credits, etc. Downloaded data can then be used to automatically update the District’s internal systems and to produce management reports. 13.111 What time each day is the data available? BB&T Response: Information Reporting: BB&T’s CashManager OnLine service provides both account balance summary reports and transaction detail reports. Current Day Detail Reports include detail transaction information for wire transfers, ACH activity, controlled disbursement, lockbox and return deposited items. Reports are available for viewing Monday – Sunday, 24 hours a day. They are updated at least every thirty minutes from the time of processing, starting at 8:00 a.m. EST and concluding at end of day for specific products. i.e. wire transfers @ 5:00 p.m. EST, and ACH @ 8:00 p.m. EST. 13.112 How many business days is data stored on the reporting system and available for the District to access? BB&T Response: CashManager OnLine provides access to 187 rolling calendar days of previous day information. 13.113 What technical specifications will be required for District employees to access the system? BB&T Response: CashManager OnLine is a web based service with no special hardware or software required. BB&T supports the following combinations of Operating Systems and Internet Browsers: 52
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Computer Type Operating System Internet Browser PC Windows XP SP3 Internet Explorer 7.0 and 8.0 Firefox 3.6 and 4.0 PC Windows 7 Internet Explorer 8.0 and 9.0 Firefox 3.6 and 4.0 Mac Mac OS X v10.5.6 Safari 5.0 13.114 Is specific software required to communicate with the bank’s system? BB&T Response: CashManager OnLine is a web based service with no special hardware or software required. 13.115 Image Services: 13.116 Describe the bank’s current image processing capabilities. BB&T Response: CashManager Online provides paid check, deposit, deposited item and returned deposited item information for up to 7 years. Check images can be flipped, zoomed, inversed, printed and archived for future reference. We do not retain original canceled checks however, the documents are image captured then truncated within a couple of days. In the rare event that the District detects an issure with an image, the District may advise the bank and the item will be researched. BB&T offers paid check imaging on CD‐ROM. Each statement cycle, The District will receive a CD‐ROM containing indexed paid check information and images of paid checks for that statement cycle within 5 business days of statement cutoff. Additionally, BB&T’s CD‐ROM Imaging includes an image of your corresponding Demand Deposit Account (DDA) Statement. a. Do they include “on‐line” access to return and adjustment images? BB&T Response: The images of Misc Debits / Credits processed as paper can be viewed on CashManager Online using Previous Day Information Reporting b. What are the hardware and software requirements for the District? BB&T Response: Minimum system requirements to support this service: Computer: Minimum Pentium IV 1.8GHz Memory (RAM): Minimum 512 MB (1 GIG recommended) Hard Disk Space: 6 to 10 MB of hard disk space per CD index to be registered on hard drive Monitor: VGA (SVGA 1024 x 768 recommended) Peripherals: CD‐ROM drive Internet: Microsoft® Internet Explorer 6.0® or better installed (for the Hypertext feature) 53
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Additional requirements: .NET Framework 2.0 or .NET 3.0 installed CD‐ROM Imaging is supported to operate on Windows® XP, Windows® 2000 and Windows® VISTA 13.117 Describe images are accessed from CD‐Rom? Is there an index function to allow a user to identify when CD should be used? BB&T Response: BB&T offers paid check imaging on CD‐ROM. Each statement cycle, The District will receive a CD‐ROM containing indexed paid check information and images of paid checks for that statement cycle within 5 business days of statement cutoff. Additionally, BB&T’s CD‐ROM Imaging includes an image of your corresponding Demand Deposit Account (DDA) Statement. 13.118 Additional Services: 13.119 Include information on any other services currently provided or planned by the bank that may benefit the District. Vault 360SM Safe Solution The Vault360 service uses a cash‐management safe with a built‐in bill reader that counts currency as it is fed. This feature enables you to receive real‐time balance information and reduce the time required to handle cash. Deposit balances are credited to your account for transactions daily. The contents of the safe are then collected by your armored courier. In many cases this may only need to be once or twice per week. Vault360 Safe Solution service provides for daily crediting of client deposits that use a courier provided cash management safe. With this Safe Solution, the District will deposit money into a safe much like putting money into a vending machine. The safe bill reader reads the denomination of each bill deposited and keeps track of how much money is deposited on a daily basis. Once money is deposited in the safe it can only be removed by the armored courier. The safe sends an electronic transmission to BB&T on a daily basis. BB&T then extends the client a courtesy credit in the form of a safe deposit credit to the clients non‐interest bearing transaction account. Benefits Reduce monthly reconcilement effort and expense ■ Receive real‐time safe balance information at the cashier level as currency is fed into the bill reader through the armored vendor reporting system ■ Eliminate time spent preparing bank deposits ■ Reduce time spent on investigation of internal losses or thefts Save money by reducing your monthly processing expenses ■ Avoid additional courier fees for minutes the armored truck waits for the deposits or for weekend and holiday courier service ■ Reduce deposit errors and fees associated with employee errors or bank deposit adjustments ■ Eliminate night drop fees 54
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Accelerate availability of funds ■ Consolidate funds more quickly by depositing money from anywhere in the U.S. into your BB&T account ■ Eliminate need to wire or transfer money from other banks ■ Obtain a consistent and predictable cash flow independent of courier pick up frequency ■ Make use of the balances in your BB&T account for earnings credit, operating capital or investing Improved security ■ Keep your employees safe, productive and on site ■ Decrease exposure to internal theft ■ Eliminate trips to the bank and decrease opportunities for robbery BB&T’s Vault360 Safe Solution supports the following safe products:  Brinks – CompuSafe  Loomis – SafePoint  Garda – CashLINK Employee Benefits: BB&T@Work BB&T is pleased to continue to offer our BB&T @ Work Program to all employees of the District (full time, part time and temporary employees). Our employee banking program provides a premium package of financial and non‐traditional banking benefits designed exclusively to support the financial success and well‐being of the employees of the District and to increase participation with your direct deposit program. With our BB&T @ Work Program, your employees will receive: • No fee checking with direct deposit* • No fee BB&T check card • No fee BB&T OnLine banking and bill payment • Bonus interest rates on Savings accounts • $300 discount on new BB&T first mortgages, credited at closing • Interest rate discounts on home equity loans/lines** • Plus Package Benefits which include:*** o $10,000 AD&D Insurance o $100,000 Common Carrier Insurance o $2500 Dependent Child AD&D Insurance o $1000 Dependent Grandchild AD&D Insurance o $2500 Identity Theft Insurance with Fraud Assistance o Payment Card Protection o Vision Care Discounts o Rx discounts o Travel and entertainment benefits o Online local shopping savings o Rebate rewards of $40/year 55
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Local BB&T @ Work Officers can be available onsite at all locations to share this information with your employees answer any questions and enroll employees in the program. The BB&T Representatives can also be available for follow‐up new hire orientations to provide the BB&T @ Work Program benefits for future new hires. The BB&T @ Work Program is offered at no cost to the District and no maintenance of records will be required on your part. *No fee when a monthly direct deposit is maintained by the employee. **Loans subject to credit approval ***The Plus Package program normally has a fee of $3.95/month, but is being offered, at no cost, to those employees of the District who open a new BB&T @ Work checking account with direct deposit. 13.120 Bank Fees: 13.121 All fees must be assessed through Account Analysis. No account can be debited. BB&T Response: BB&T understands and acknowledges the District’s request. 13.122 Provide the proposed prices for the list of banking services as presented on the Prices and Services Chart. Prices must be guaranteed for the initial, 3‐year term of the contract. BB&T Response: BB&T understands and acknowledges the District’s request. Pricing will be guaranteed for the initial three year contract period. 13.123 Would the District order deposit tickets and other supplies through the bank or directly from a vendor? BB&T Response: The District can order supplies from a vendor of their choice or we can assist with our preferred provider, Hartland. We are happy to assist the district. 13.124 The bank must cash District checks payable to an employee at no charge. Is a check cashing agreement required? If yes, include a copy. What controls are in place to minimize check fraud? BB&T Response: BB&T will cash employee checks at no charge with proper identification. BB&T provides a teller line interface to your check issue file with Positive Pay. If checks presented to a BB&T teller do not match the data on your file, the individual attempting to cash the check will be referred to the District. 13.125 Does the Bank pass on any fees or other assessment for FDIC Insurance? If so, how does the bank calculate the charge? BB&T Response: BB&T does have an FDIC assessment and these fees are billed monthly through account analysis. Currently, the fee is $.1333 per $1000 average monthly ledger balance. 56
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.126 Can the District decide how the balances in its accounts will be grouped for purposes of compensation, e.g., assessed individually, by division, or at the relationship level? BB&T Response: BB&T will consult with the District to give recommendations with the ultimate decision, being made, from the District. 13.127 When calculating average balances, are positive and negative balances netted? BB&T Response: BB&T’s earnings credit is paid on the net positive available balance. Negative balances are not subtracted. 13.128 How does the bank charge for overdrafts? Daylight Overdrafts? Does the bank charge for use of uncollected funds? If so, how is the charge calculated? BB&T Response: BB&T will locally monitor the District’s accounts and ensure all demands upon the accounts are met. Presented items will be honored based upon collected funds unless a daylight overdraft is approved. The District items will not be delayed as long as a daylight overdraft is requested ahead of time with adequate time for approval. The District will be immediately notified. BB&T would not pass daylight overdraft changes to the District. BB&T charges $35 per overdraft occurrence plus an uncollected funds charge of Prime + 3.5%. 13.129 What billing period options does the bank offer? How and when will the District be billed for deficiencies? BB&T Response: Payment could be scheduled either monthly or quarterly. Net service fees would be debited from your account in the third week of the month following the end of your analysis cycle. For example, if the quarterly cycle ends June 30th, then your account will be debited for net service fees to date in the third week of July. 13.130 How long are excess balances carried forward and applied to charges in future billing periods? BB&T Response: BB&T allows excess earnings credit to be carried forward for clients on quarterly, annual and 12‐month rolling analysis cycles up to 12 months. 13.131 How soon after the close of the billing period is the account analysis available to the District? BB&T Response: BB&T will provide account analysis statements to the District’s office by the 10th of the month. Statements can be accessed through CashManager OnLine in addition to being received via US mail. 57
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T’s month end analysis statements will detail all bank activities / services in addition to the related per unit pricing. Each month’s statement will remain available for 45 business days. 3.132 How are adjustments reflected on the account analysis? Are online analysis statement updated when adjustments are made? BB&T Response: Adjustments are labeled as adjustments on the account analysis statement. 13.133 Please describe the procedures used to adjust bank statements and to assure a corresponding adjustment to account analysis statement. How is the adjustment handled if the analysis period has already ended? BB&T Response: BB&T recommends that the District contact a BB&T Client Support representative for initiating inquiries that require research and/or adjustments. To meet acceptable standards, such as the retrieval or copy of a statement or check, we commit to a 24‐hour turnaround. BB&T will conduct an investigation and analysis and make adjustments as needed upon being notified. These adjustments are based on standard compensation techniques. Adjustments are labeled as adjustments on the account analysis statement. 13.134 Please provide a sample invoice for the District’s account. The District will not permit the bank to debit the District’s account for the payment of any bank fees. BB&T Response: A sample analysis statement has been provided in the appendix of our RFP response. 13.136 General Investment Portfolio: CUSTODIAL SERVICES 13.137 Provide a listing of cut off times for notification of securities transactions. Please specify if the cut off times vary for different types of securities. BB&T Response: BB&T requests that trades with normal settlement (trade date + 3) are communicated via the DTC Institutional Delivery system by close of business on trade date + 1. Next Day Trades with a settlement time frame of trade date + 1 should be communicated by close of business on trade date. Same Day (cash) BB&T requests that same day settlement instructions are provided in writing by fax by 11:00 AM EST. Transfers of cash or securities between accounts/portfolios: The cut‐off time for inter‐account transfers is 3:00 PM. 58
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Settlement time for funds transfer activity Checks 11:00 A.M. EST Credit Advices 11:00 A.M. EST ACH 11:00 A.M. EST Wires 3:00 P.M. EST 13.138 Describe any sub‐custodial arrangements that would be used for securities belonging to the District’s. Fully describe the roles and responsibilities of each sub‐custodian, if applicable. BB&T Response: BB&T utilizes the following vendors to deliver services to our clients. BB&T is a direct participant with the Depository Trust Company (DTC) and we utilize State Street Bank as our sub‐
custodian for Federal Reserve and global securities. Our relationship with State Street has existed for over 10 years and gives our clients access to an expansive number of local, foreign markets as well as all markets that participate in the Euroclear system. SunGard – BB&T utilizes the SunGard AddVantage system as our core trust accounting system. AddVantage provides BB&T with the necessary accounting and reporting tools to meet and exceed the needs of our clients. SunGard is also the provider of our on‐line client account access tool, TAMLinkTM . Depository Trust and Clearing Corporation (DTCC) – BB&T is a direct clearing member of DTCC’s subsidiary, the Depository Trust Company (DTC). BB&T is able to provide more efficient and effective service to our clients and to their investment advisors. Our participant number is 5385. State Street Bank – BB&T currently utilizes State Street Bank for all Federal Reserve and global asset custody needs. This strategic partnership provides efficiencies for our clients, as well as access to a vast and expanding global marketplace. Fidelity Investments – BB&T utilizes Fidelity Investments as a service provider for mutual fund trade and income processing capabilities. This relationship gives our clients access through an efficient and reliable network to a large universe of funds and fund families. Interactive Data Xcitek – BB&T utilizes Interactive Data Xcitek as a provider of corporate action and class action information provider. This partnership also provides us with a robust corporate action reporting platform for all investment managers used by BB&T clients. Broadridge – BB&T utilizes Broadridge for our proxy monitoring and processing needs. Interactive Data Pricing and Reference Data (formerly FT Interactive Data) – BB&T utilizes Interactive Data Pricing and Reference Data (IDPRD) as a provider of pricing and income payment information for our client accounts. IDPRD is a leading provider of pricing and asset information for financial institutions. Informa Investment Solutions (Scorecard) – Informa Investment Solutions/Scorecard provides investment and portfolio analytics reporting for selected BB&T clients. 13.139 Describe how the financial institution interacts with investment managers. 59
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: Interaction between BB&T and investment advisors/managers varies depending upon the overall relationship and needs of the account. Typically, interaction is limited to the electronic exchange of trade information through the DTC Institutional Delivery (ID) system. Trade details are entered into the DTC ID system by a client’s investment advisor/broker, passed through DTC and on to our trade settlement area within BB&T. This information is then matched and pended to BB&T’s AddVantage system. Exchange of this data is done both throughout the day and overnight. Investment managers may obtain online access to their specified accounts through our TAMLink TM product. 13.140 Does the bank provide custodial information to the District through an on‐line inquiry/reporting service? BB&T Response: Yes. BB&T offers TAMLink, an online resource for custodial clients to access and view their trust account(s). Information is updated and available daily. Clients and investment managers may receive information on their account(s) that can then be reviewed, printed and downloaded. 13.141 Describe the custodial relationship between the institution and the Federal Reserve Bank. BB&T Response: BB&T is a direct participant with the Depository Trust Company (DTC) and we utilize State Street Bank as our sub‐custodian for Federal Reserve and global securities. 13.142 Organization and Background: BB&T Response: Branch Banking and Trust Corporation (BB&T) is one of the nation’s ten largest financial holding companies with over $174 billion in assets and is headquartered in Winston‐Salem, NC. BB&T is publicly‐traded and is a full‐service financial institution comprised of a banking network, which operates over 1,800 branches in 12 states and Washington D.C. BB&T and its subsidiaries offer full‐service commercial and retail banking and additional financial services such as actuarial, administrative, consulting, corporate finance, insurance, international banking, investments, leasing, retail brokerage and trust. BB&T has provided professional full‐service custodial services to public and private entities through its trust department (now Retirement and Institutional Services) since 1907. 13.143 Briefly describe the organization structure of the bank Custody Department. BB&T Response: BB&T Retirement and Institutional Services employs a staff of approximately 304 employees, dedicated to providing comprehensive institutional financial services to public and private organizations alike. Our localized infrastructure has enabled our services to be furnished in a more tailored fashion and maintains its dedication to serving our clients. A breakdown of personnel is included below. 
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Trustee Services and Support Staff: 84 Recordkeeping and Plan Admin Specialists: 64 Client Servicing Staff: 58 Sales Staff: 25 60
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
 Product Support Specialists: 16  Corporate Trust: 12  Communication Specialists: 11  Conversions: 10  Marketing: 9  Systems/IT Specialists: 8  Compliance/Legal Specialists: 7 Total: 304 13.144 What is the total of all assets held in custody/safekeeping? How many Custody clients does your organization service? BB&T Response: BB&T has total custody assets of approximately $21.5 billion over 18,500 accounts. 13.145 List all insurance coverages relevant to the department handling Custody functions. Please indicate the type and amount. BB&T Response: The BB&T Corporation maintains a Bankers' Professional Liability Insurance Policy under which BB&T's Retirement and Institutional Services and other units and subsidiaries are covered for Errors and Omissions, Fiduciary Liability and other insurance coverages. In addition, BB&T maintains fidelity bonding coverage on all employees for fraud and dishonesty. Type of Insurance Carrier Amount Bankers' Professional Liability (includes Errors & Omissions and Fiduciary XL Specialty Insurance Co. $25,000,000 Liability) Directors & Officers Liability XL Specialty Insurance Co. $25,000,000 Financial Institution Bond (aka Fidelity/Computer Crime) Indian Harbor Insurance Company $25,000,000 13.146 Administration: 13.147 How many accounts does your typical account representative manage? How do you determine the number of accounts assigned to each administrator? BB&T Response: The average number of client relationships assigned to each consultant is 40‐45. Accounts are generally assigned based on the overall complexity and size of the incoming account. Managers who oversee our consulting group are constantly evaluating the load consultants are taking on as we acquire new clients. We monitor the client/consultant ratio and ensure it does not exceed the limitations we are comfortable with. In the past, we have restructured our consultants’ portfolios of business if necessary. Though this does not often occur, we are willing to do this to maintain quality service. 61
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
13.148 Describe how your organization interacts with investment managers. Explain your procedures for notifying investment managers of trades and cash balances. BB&T Response: Interaction between BB&T and investment advisors/managers varies depending upon the overall relationship and needs of the account. Typically, interaction is limited to the electronic exchange of trade information through the DTC Institutional Delivery (ID) system. Trade details are entered into the DTC ID system by a client’s investment advisor/broker, passed through DTC and on to our trade settlement area within BB&T. This information is then matched and pended to BB&T’s AddVantage system. Exchange of this data is done both throughout the day and overnight. Investment managers may obtain online access to their specified accounts through our TAMLink TM product. 13.149 On‐Line Communications: 13.150 Describe your on‐line system for clients and their investment managers. Describe the information available, i.e. pending trades; accounting information, asset lists by account including market value, transaction history, summary of account market values for the portfolio, and securities on loan. BB&T Response: Trust Asset Management Link (TAMLink TM) is an online resource that provides BB&T custodial clients access to view their trust accounts. This online feature mirrors the monthly statements a client would receive in hardcopy format. Information is updated daily and reflects prices and transactions as of the close of the prior business day. This service allows clients and investment managers to receive information on their accounts that can then be reviewed, printed and downloaded. Clients may select between five standard reports: summary, ■ Portfolio review ‐ Gives the user a detailed report covering account investments and transaction history. ■
Investment detail ‐ Displays individual holding information such as units, cost and market value with a drill‐down feature showing tax lot detail for each security. ■
Tax lot listing – Displays an alphabetical listing of all holdings with detail about individual tax lots, including acquisition date. ■
Portfolio % chart ‐ Reflects segments by percentage using a pie chart. ■ Market value chart ‐ Reflects segments in dollars using a bar chart. 13.151 How current is on‐line information, and how many hours per day is it available? BB&T Response: TAMLink is updated daily and is available 24 hours a day. 13.152 Can clients retrieve on‐line information in a customized reporting format? If so, describe your custom reporting flexibility and limitations. Can the data be downloaded to a CSV or Excel file? 62
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: Yes. The customization feature of TAMLink TM allows the user to define their viewable settings with some or all of the following categories: Security Name, Units, Unit Price, Cost, Market Value, Last Priced, Estimated Annual Income, % of Portfolio, % of Segment, Unrealized Gain/Loss, Yield at Market, Average Unit Cost, Earnings Per Share, Financial Rating, P/E Ratio, Ticker Symbol, CUSIP Number and History Periods. Data can be downloaded in .xls; .csv; comma delimited; semicolon delimited; tab delimited; and fixed length. 13.153 How long have you offered on‐line services? Provide a description of remote site hardware and software required by clients and investment managers. BB&T Response: BB&T has been offering on‐line services to institutional clients in its current form since 2003. Hardware The trust accounting servers are located in our Secure Enterprise Data Center that has restricted physical access maintained by 24x7 security, and all server hardware is monitored around the clock. The system is protected by layered security to include proven industry‐standard software‐based firewalls as well as physical firewalls and a strong, auditable password policy is maintained for all user accounts. 13.154 What provisions are made for training of client personnel in the use of the system? BB&T Response: TAMLink is a menu driven system which is easy to learn and use. We supply a brochure to new users to familiarize them with the use of the system. Additionally, the account administrator can assist with questions. Instructor led webinars may be used if deemed necessary for new users. Users of TamLink TM of will be supported by their BB&T Institutional Services Consultant. There are no additional costs. 13.155 What information, current and historical, is provided and available on‐line in raw data elements? Indicate when and how this information is available/accessible. BB&T Response: TAMLink TM is an online resource for BB&T custodial clients to access and view their trust account or multiple accounts. This online feature mirrors the monthly statements a client would receive in hardcopy format. Information is updated daily and reflects prices and transactions as of the close of the prior business day. This service allows clients and investment managers to receive information on their account(s) that can then be reviewed, printed and downloaded. Clients may select between five standard reports: Portfolio Review ‐ Gives the user a detailed report covering account summary, investments and transaction history. Investment Detail ‐ Displays individual holding information such as units, cost and market value with a drill‐down feature showing tax lot detail for each security. 63
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
Tax Lot Listing ‐ An alphabetical display of all holdings with detail about individual tax lots, including acquisition date. Portfolio % Chart ‐ Pie chart reflecting segments by percentage. Market Value Chart ‐ Bar chart reflecting segments in dollars. TAMLink offers a customization feature (at no additional cost) that allows the user to define their viewable settings with some or all of the following categories: Security Name, Units, Unit Price, Cost, Market Value, Last Priced, Estimated Annual Income, % of Portfolio, % of Segment, Unrealized Gain/Loss, Yield at Market, Average Unit Cost, Earnings Per Share, Financial Rating, P/E Ratio, Ticker Symbol, Cusip Number and History Periods. 13.156 Accounting Reporting: 13.157 Provide a complete description of your accounting system. BB&T Response: Our accounting system, AddVantage, is a real‐time system which allows for trade date or settlement date processing, accrual or cash processing. The District will receive a customized reporting package, and its specifics will be determined once the due diligence process concludes and more information regarding your reporting preferences is identified. The AddVantage system provides BB&T with a comprehensive electronic workflow environment. BB&T has established a series of electronic forms and other protocols utilized by our front‐office personnel to transmit information to our operations areas for our processing. The use of electronic forms has increased our efficiency while reducing potential liabilities created by paper documents. Our electronic workflow capabilities also provide us with extensive system controls to ensure that information is presented to those that need it and to ensure the integrity of our client information. 13.158 Does your system report or accommodate trade date, contractual settlement date, cash basis accounting or a combination? Are any other methodologies available (i.e., tax lot, etc)? Please explain. BB&T Response: The AddVantage System allows for trade date or settlement date processing, accrual or cash processing. 13.159 What is the lag time between trade execution, availability of on‐line transaction date to the client, and the posting of the transaction to your accounting system? BB&T Response: BB&T prefers that trade instructions are provided through the DTC Institutional Delivery System by close of business on Trade Date + 1 day (T+1) for all regular settlement T + 3 trades. Trades with shorter settlement periods should be reported by close of business on Trade Date. Same day transactions should be communicated via fax/email to the designated Operations area by 11:30 a.m. EST. Securities or trade settlement is largely an automated process where trades are posted to client accounts on contractual settlement date; however, successful automation and settlement is dependent upon reliability, accuracy and ability of outside vendors (third party investment advisors) to provide necessary information prior to settlement date. 64
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T’s online reporting resource, TAMLink, is updated daily and will provide notification of all trade activity. TAMLink information is as of the previous business day’s close. Transactions may be reported on a settlement date or trade date basis. The availability of transactional data within TAMLink is subject to how and when transaction instructions are presented to BB&T. 13.160 Can you carry the book value of securities at original cost, amortized/accreted cost, average cost, or some other basis? How do you compute realized gains and losses? BB&T Response: The Schedule of Realized Gains and Losses lists all sales, redemptions, and maturity transactions by security type and security name. For formats using accrual reporting methods, accrual income is also included. For formats using trade date reporting methods, pending trades are included. Gain and loss amounts are reported for both cost and market value basis fund presentation. The market value of each disposition transaction on the Schedule of Realized Gains and Losses reflects a calculated value based on total units at the trade date of the transaction, total units from the transaction, and total market value at the trade date of the transaction. The calculation is as follows: Market value = total units from the transaction / total units at the trade date of the transaction x total market value at the trade date of the transaction All trades within the statement period are sorted by trade date and processed in trade order for market value calculation purposes. 13.161 Do you have the capacity to report brokerage commissions by account and by transaction? BB&T Response: Yes. 13.162 Explain the methodology and policies in place for accrual accounting. What transactions are not accrued? BB&T Response: The AddVantage Accounting System is an on‐line real time system. AddVantage utilizes InterSystems Corporation CACHÉ database. CACHÉ is a multidimensional database that enables rapid web application development, extraordinary transaction processing speed, and massive scalability. The system offers full‐scale accrual accounting capabilities. 13.163 Describe your ability to implement, establish and maintain a fixed income portfolio based on amortized cost. Describe the amortization/accretion methods available to the fund, frequency of processing, conversion experience, and the current value of fixed income being maintained by you using this application. BB&T Response: BB&T processes amortization/accretion for municipal bonds and can handle this type of accounting for Federal securities. 13.164 What is your source and how do you account for pay down information? Do you maintain a record of the original face amount purchased? 65
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
BB&T Response: Our pricing and rating information is provided by Interactive Data Pricing and Reference Data (IDPRD). Factors are updated daily as they become available. P&I maps are created for review prior to payable date. On payable date, the funds are posted to the clients account; one entry for the principal payment and one entry for the interest payment. Some MBS/CMO’s pay on payable date + 1. 13.165 Is reporting provided on a trade date, accrued basis? BB&T Response: The AddVantage System allows for trade date or settlement date processing, accrual or cash processing. Your reporting package will be tailored to your needs. 13.166 Describe your standard reporting package. Provide copies of reports available to clients. BB&T Response: Your reporting package will be tailored to your needs. The specific reporting package offered will be determined upon conclusion of the due diligence process and more information regarding your reporting preferences are identified. Clients are provided with paper and/or electronic statements on a schedule dictated by our clients, and we also have the capability to electronically transmit account information to investment advisors who participate with or utilize certain investment accounting systems. Investment Managers may also elect to have electronic and or hardcopy statements sent to them. 13.167 Which standard reports are available on‐line? Are they available the next business day? Describe when and how we would access these reports. BB&T Response: Clients may select between five standard reports online. Reports are available the next business day, as information is updated daily. Here are the reports: ■
Portfolio review ‐ Gives the user a detailed report covering account summary, investments and transaction history. ■
Investment detail ‐ Displays individual holding information such as units, cost and market value with a drill‐down feature showing tax lot detail for each security. ■
Tax lot listing ‐ Displays an alphabetical listing of all holdings with detail about individual tax lots, including acquisition date. ■
Portfolio % chart ‐ Reflects segments by percentage using a pie chart. ■
Market value chart ‐ Reflects segments in dollars using a bar chart. 13.168 How soon after accounting periods are fully audited reports available? BB&T Response: BB&T may also code statements to generate with a 'hold for audit' status to identify statements that must be reviewed, regardless of whether an error exists or not, prior to release for printing or electronic distribution. 13.169 What steps are taken to ensure the accuracy of your reports? Are reports audited before they are mailed to clients? If so, by whom? 66
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BB&T Response: BB&T has a system of controls that ensure the accuracy of processing and reporting of the master custody division. Our systems utilize specific coding and diligent reconciliation and matching processes to separately account for client positions on its core accounting system, AddVantage. Positions are coded for each depository, nominee and account utilized by BB&T, and position reconciliations are performed routinely to ensure that our clients’ assets are properly accounted for. BB&T also applies additional control measures through systematic approaches using defined parameters to proactively identify potentially incorrect information, so that it may be reviewed and corrected (if necessary) prior to distribution of information to a client. 13.170 Are you willing and able to prepare special reports from available data? Is there an extra charge for this service? BB&T Response: We are willing to provide special reports upon request. Any extra charge for the service will be based on the size and complexity of the request. 13.171 Custody Safekeeping: 13.172 Describe your depository memberships (i.e., DTC, FRB, PTC) and the services you use at these depositories. BB&T Response: BB&T is a direct participant with the Depository Trust Company (DTC), and we utilize State Street Bank as our sub‐custodian for Federal Reserve and global securities. 13.173 Describe your system for the registration and custody of assets. BB&T Response: BB&T utilizes the following vendors to deliver services to our clients. BB&T is a direct participant with the Depository Trust Company (DTC), and we utilize State Street Bank as our sub‐
custodian for Federal Reserve and global securities. Our relationship with State Street has existed for over 10 years and gives our clients access to an expansive number of local, foreign markets as well as all markets that participate in the Euroclear system. All assets will be held in nominee name and in electronic form unless specifically requested otherwise by the client or the nature of the asset prevents us from doing so. Depository Trust and Clearing Corporation (DTCC) – BB&T is a direct clearing member of DTCC’s subsidiary, the Depository Trust Company (DTC). BB&T is able to provide more efficient and effective service to our clients and to their investment advisors. Our participant number is 5385. State Street Bank – BB&T currently utilizes State Street Bank for all Federal Reserve and global asset custody needs. This strategic partnership provides efficiencies for our clients, as well as access to a vast and expanding global marketplace. Fidelity Investments – BB&T utilizes Fidelity Investments as a service provider for mutual fund trade and income processing capabilities. This relationship gives our clients access through an efficient and reliable network to a large universe of funds and fund families. 67
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13.174 Describe where and how the receipt and delivery of "physical" securities occur and how are they secured. Describe any involvement of second party banks in the clearing of such transactions. BB&T Response: BB&T can readily effect settlement for exchange‐traded or publicly listed assets and/or open‐end mutual funds. BB&T has the capability to also effect settlement for most types of non‐publicly traded assets (i.e. private offerings; hedge funds; etc.). BB&T may refuse to hold physical assets deemed to be dangerous or potentially harmful to its employees or that may violate local, state and/or federal law. Such items may include but are not limited to firearms, explosives and controlled substances. In terms of investable assets, BB&T does not currently have any restrictions for safekeeping. However, the nature of abnormal securities (i.e. hybrid securities) should be examined to ensure that BB&T can fulfill the specific requirements for the security and the client. 13.175 Briefly describe your securities settlement process. Describe your procedures and capabilities for settling and accounting for same day cash trades. BB&T Response: Principal transactions are settled on the contractual settlement date. Cut‐off times BB&T requests that trades with normal settlement (trade date + 3) are communicated via the DTC Institutional Delivery system by close of business on trade date + 1. Next Day Trades with a settlement time frame of trade date + 1 should be communicated by the close of business on the trade date. Same Day (cash) BB&T requests that same day settlement instructions are provided in writing, by fax, by 11:00 AM. Transfers of cash or securities between accounts/portfolios The cut‐off time for inter‐account transfers is 3:00 PM. Settlement time for funds transfer activity Checks 11:00 A.M. Credit Advices 11:00 A.M. ACH 11:00 A.M. Wires 3:00 P.M. 13.176 Are purchases and sale settlements made on an actual or contractual basis? If you utilize a contractual settlement approach, are there any stipulations or exceptions to this method? BB&T Response: All trades that have been reported to BB&T prior to settlement date will be posted to a client’s account on contractual settlement date. If receipt or delivery does not occur on the 68
School District of Palm Beach District
Request for Proposal for Banking Services
05/07/2012
settlement date (a "failed trade"), then the shares or proceeds will not be removed from a client’s account unless the fail status extends beyond 30 calendar days. Trades in a fail status are transparent to a client. BB&T will work diligently with the broker for the trade to resolve the issue as soon as possible. Corrective actions begin on the settlement date +1. A 12‐month average shows that we have an approximate trade fail rate of 1%. The majority of fails are due to broker delivery problems. 13.177 How and when do you record and report (within your system, to clients, to investment managers, etc.) corporate actions? BB&T Response: BB&T utilizes Interactive Data Xcitek as a provider of corporate action and class action information provider. This partnership also provides us with a robust corporate action reporting platform for all investment managers used by BB&T clients. 13.178 What is the source of your pricing data for stocks, bonds, options, and convertibles and including how frequently prices are updated? BB&T Response: BB&T does not independently derive asset prices. Our pricing and rating information is provided by Interactive Data Pricing and Reference Data (IDPRD). For any securities which are not priced by IDPRD, we use pricing information obtained from Bloomberg. For privately negotiated positions (i.e. hedge funds, partnerships, etc) BB&T may contact the investment source directly or may need input from the client or their appointed investment advisor to obtain pricing information. If assets are thinly traded, then BB&T will reflect the most recent market price and pricing date. If no price is ever made available for an asset, then our system currently equates market value to the asset’s book value. For quality control of our pricing information, we periodically check a sample of the prices received from Interactive Data to pricing from an independent source. We also investigate all securities that have experienced a price change of greater than 15% from the previous price on file. BB&T’s pricing practices are reviewed as needed to ensure that we comply with FAS‐157 and other appropriate regulations. Security Type U.S. Fixed Income Corporates Governments Mortgage‐Backed Asset‐Backed CMOs Municipals U.S. Equity Options Open‐ended Funds International Securities Standard Vendor IDPRD IDPRD IDPRD IDPRD IDPRD IDPRD IDPRD IDPRD IDPRD IDPRD Frequency Weekly & EOM Daily Weekly & EOM Weekly & EOM Weekly & EOM Weekly & EOM Daily Weekly & EOM Daily Daily 69
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13.179 How do you handle corrections/reversals (i.e., as adjustments or as offsetting purchases and sales)? BB&T Response: If errors are discovered, then the incorrect entry will be removed from the account and the correct entry posted using the correct date for the transaction. A client’s selected reporting method will ultimately dictate how corrections are reflected on statements/reports. Inconsistency at the onset of certain relationships may lead to trade corrections; however, our Operations team will actively work with designated personnel to resolve and prevent a continuation of the problem. 13.180 Cash Management: 13.181 What is your policy toward crediting of interest and dividends on payable dates? Are income payments credited in same day funds? BB&T Response: Interest and dividends are most often posted to corresponding client accounts on payable date. Income is posted on payable date. 13.182 When are funds withdrawn for purchases? Credited for sales? Fed funds or clearing house funds? BB&T Response: BB&T processes all reported trades on contractual settlement date. BB&T requests all trades to be reported by end of business on Trade Date + 1 (T+1). This allows for trades to be properly affirmed and pended to the client account for settlement on contractual settlement date. Our accounting system and processing structure with our depositories allows us to receive and process transaction activity throughout the day. Once transactions files are received, they are loaded to our system and processed through a number of data matching routines. Unmatched items are identified and reported to us by our system. 13.183 Describe your system for monitoring cash balances. Do you sweep cash automatically? If so, how often and to what balance? Or do you purchase and sell manually each day to accomplish this task? BB&T Response: BB&T utilizes an automated cash sweep process that ensures each account's cash needs present in the system as of end‐of‐day are properly accounted for. The process reviews trades, income postings, cash receipts and cash distributions that are in a pending status when money market investments/divestments are created. In the instance that an overdraft is encountered, the proper actions will be taken by our staff to remediate the situation as soon as possible. 13.184 How are instructions for investment transactions relayed to you? Are there any time restrictions? What procedures are in place to identify, follow‐up and resolve failing trades? What percentage of transactions failed for the most recent calendar year? BB&T Response: Instructions for investment transaction are communicated electronically. Certain restrictions may be placed by the client. 70
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13.185 What short‐term investment vehicles (describe in detail) are available to your clients? Please review attached Investment Policy. Any money market fund recommendation must be either the institutional class share or the share class with the overall lowest allin fee. BB&T Response: Investment Options and IDP Product BB&T offers a number of money market mutual funds that consist of both taxable and non‐taxable options. Your BB&T Retirement and Institutional Services Consultant will work with you to select the fund most appropriate for your account(s). As an example and for purposes of this RFP we have provided you with the following money market mutual funds for overnight sweep. Your Consultant and Account Administrator will work with you to select the fund most appropriate for your account(s). Fund Name Prime Money Market Fund U.S. Treasury Money Market Fund Money Market Funds Prospectus Shareholder SAI Other Summary Reports Prospectus
Prospectus Annual Report Fund Facts (Ret.)
Retail Retail SAI (2/1/11) (2/1/11) (2/1/11) (12/31/10) Institutional Institutional (2/1/11) Semi‐Annual Report Fund Facts (Inst.)
(2/1/11) (2/1/11) (2/1/11) (12/31/10) Retail Retail Annual Report Fund Facts (Ret.)
(12/31/10) (2/1/11) (2/1/11) SAI (2/1/11) Institutional Institutional (2/1/11) Semi‐Annual Report Fund Facts (Inst.)
(2/1/11) (12/31/10) (2/1/11) (2/1/11) Retail Retail Annual Report Fund Facts (Ret.)
National Tax‐
SAI (12/31/10) (2/1/11) (2/1/11) (2/1/11) Free Money Institutional Institutional (2/1/11) Semi‐Annual Report Fund Facts (Inst.)
Market Fund (2/1/11) (12/31/10) (2/1/11) (2/1/11) Please refer to the Fund Fact sheets (click on the web links in the table) and latest Prospectus for further details regarding the Prime Money Market Fund, US Treasury Money Market Fund, and the National Tax Free Money Market Fund. The link provides access to performance history and all other pertinent information regarding these funds. No reserve requirement applies to these sweep options. Cash sweep is an end‐of‐day process which anticipates cash resulting from trade settlements and income payments. Intraday investments in the sweep fund can also be transacted, for which the deadline is 11:00 AM. For more detailed information regarding these and other funds please visit; http://www.sterlingcapitalfunds.com/index.php?bbt=1 71
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Additionally, BB&T Retirement and Institutional Services offers an Insured Money Market Deposit Program. The Insured Deposit Program offered by BB&T provides you the safety and liquidity of an FDIC insured account, while offering competitive interest rates to help you reach your overall objectives. Benefits of the Insured Deposit Program offered by BB&T include:  Extended FDIC insurance coverage  Daily sweep of funds  Competitive rates compared to other deposit products and money market funds  Daily liquidity  No transaction limits  No explicit fee for participating in the Program 13.186 What percentage of fails did you experience in the last three years for sales and for purchases? BB&T Response: On a monthly average, BB&T experiences less than 1% of total trades fails due to BB&T input. 13.187 System Capabilities: 13.188 What are your systems capabilities (hardware and software)? How long has the current hardware been in place? BB&T Response: Our accounting system, AddVantage, is a real‐time system which allows for trade date or settlement date processing, accrual or cash processing. The District will receive a customized reporting package, and its specifics will be determined once the due diligence process concludes and more information regarding your reporting preferences is identified. The AddVantage system provides BB&T with a comprehensive electronic workflow environment. BB&T has established a series of electronic forms and other protocols utilized by our front‐office personnel to transmit information to our operations areas for our processing. The use of electronic forms has increased our efficiency while reducing potential liabilities created by paper documents. Our electronic workflow capabilities also provide us with extensive system controls to ensure that information is presented to those that need it and to ensure the integrity of our client information. Hardware The trust accounting servers are located in our Secure Enterprise Data Center that has restricted physical access maintained by 24x7 security, and all server hardware is monitored around the clock. The system is protected by layered security to include proven industry‐standard software‐based firewalls as well as physical firewalls and a strong, auditable password policy is maintained for all user accounts. These systems have been in place since 2003. 13.189 Is the Custody department supported by a dedicated data processing programming and application staff How many and what level of vendor support personnel are on‐site? 72
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BB&T Response: Yes, BB&T Retirement and Institutional Services employs a staff of approximately 304 employees, dedicated to providing comprehensive institutional financial services to public and private organizations alike. Our localized infrastructure has enabled our services to be furnished in a more tailored fashion and maintains its dedication to serving our clients. A breakdown of personnel is included below.  Trustee Services and Support Staff: 84  Recordkeeping and Plan Admin Specialists: 64  Client Servicing Staff: 58  Sales Staff: 25  Product Support Specialists: 16  Corporate Trust: 12  Communication Specialists: 11  Conversions: 10  Marketing: 9  Systems/IT Specialists: 8  Compliance/Legal Specialists: 7 Total: 304 13.190 What back‐up and recovery capabilities are in place in case of malfunctions or emergencies? Where is the back‐up system located? BB&T Response: BB&T has contingency plans in place for both core systems and business processes which are designed to provide resumption of service for within 24 ‐ 48 hours. These comprehensive plans are designed to provide recovery of processing for interruptions stemming from systems breakdown, operational glitches and natural or man‐made disasters. BB&T’s dedicated Business Recovery Planning Department works closely with Institutional Services to annually review and test our disaster recovery plan. Scheduled tests of our backup site are conducted annually while unscheduled tests are conducted as the need arises. 13.191 Describe your disaster plan procedure and results of such tests performed in the last year. BB&T Response: internal control policies and procedures which govern our recordkeeping system are reviewed annually by an independent, certified public accountant during the preparation of our level II SSAE 16 Report. Our last audit was performed by PriceWaterhouseCoopers. BB&T is subject to internal and external audit and Vital Signs monitoring updates are delivered to our Audit Department on a quarterly basis. Our internal accounting controls meet the requirements and obligations under general accepted accounting principles as given in our most recently issued SSAE 16. For the 2009‐2010 audit year, BB&T was issued the highest Level II SAS 70. 73
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13.192 When was the software developed and was it developed internally or externally? BB&T Response: BB&T utilizes the SunGard AddVantage system as our core trust accounting system. AddVantage provides BB&T with the necessary accounting and reporting tools to meet and exceed the needs of our clients. SunGard is also the provider of our on‐line client account access tool, TAMLinkTM . This system has been in place at BB&T for nearly 10 years. 13.193 What are your security procedures that protect customer information, especially with respect to unauthorized access to data? Please describe in detail all security measures. BB&T Response: Physically, our recordkeeping floor is a restricted area – the elevator to the floor has a security code and all doors require an electronic access card for entry. The recordkeeping servers are kept in a locked, key‐coded server room to which only the Network Administrator has access to, along with the other BB&T Production Servers. On the Analyst level, our recordkeeping system is set up to limit the access of confidential information within retirement plans. Each Analyst has “user rights” to the plans for which they are responsible. We have extensive network security in place to restrict access to the information stored on our servers. Electronically, we have firewalls (software based), routers (physical firewall), as well as server‐level passwords. To ensure confidentiality, all data is sent to us through our secure internet site, which restricts outside forces from seeing any data sent, protecting the information from the time it leaves the client’s computer all the way through to BB&T receiving and processing the information. For transmitting outgoing emails that contain confidential data, a secure email solution, Cisco Registered Envelope Service (CRES), is used. This application allows email containing confidential information to be transmitted securely to clients or business partners, preventing potential interception by unauthorized parties. It also allows clients or business partners to reply back to us securely. Once an email is processed, our client/business partner will be directed to a secure website to access your message. This will require the client/business partner to provide their name and password to use the application. 13.194 Custodial Fees: 13.195 Submit a copy of your proposed fee schedule and/or describe on what basis fees are calculated. Indicate frequency with which you intend to submit billings. BB&T Response: BB&T proposes an annual fee of 2 basis point (0.02%) on total assets under custody, and a $15 per transaction charge. 14.0 REFERENCES 14.1 Complete the Reference Document and include five (5) governmental references including at least one public school district (if possible, where similar services were provided). This should include at least one reference from a customer who has been with you for a year or less, three references from veteran customers with long term or repeat contracts and at least one reference from a past customer who is currently not under contract. The District will contact these references during the evaluation process. NOTE: The information requested must include a current email address for each reference. 74
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Time of Completion In general terms, it would be advantageous for both parties if the District were to assign a single person as project manager for the conversion. Implementation of our products and services will potentially touch different areas within your organization. A single point of contact will greatly assist our implementation team leaders in providing you with a timely and efficient conversion to BB&T. Additionally, the District will need to appoint a person to act as System Administrator. This person will be responsible for assigning user rights (add/delete users) and privileges within BB&T online systems, such as CashManager OnLine, OnSite and our Commerce Gateway services. The District personnel will need to take the time to attend online training sessions for our systems, as well. These sessions are conducted daily and a training schedule will be provided. BB&T believes that a project such as this undertaking with the District to implement the services discussed in the RFP requires a great deal of planning and follow‐up by both BB&T and the District. BB&T is prepared to commit appropriate resources to achieve the final objective; a smooth conversion for the District. Your BB&T relationship manager, Nanci Simonson, and primary Treasury Management Consultant, Cheryl Moronta, will be involved in implementation meetings as appropriate and regularly informed of progress and the implementation process as it moves forward. Our consultative methodology allows us to become an integral part of your business process. We will partner with you to focus on process improvements and enhanced business controls. This means fully understanding your needs and processes, and automating as many of these tasks as we can, in as flexible and transparent a manner as possible. Critical factors that may impact lead time include timely submission of required implementation documents, successful testing of issue file transmissions, MICR testing of checks (optional but highly recommended), etc. Listed below is the estimated time frame for services based upon receipt of all signed and properly executed agreements: Deposit Supplies 7 Business Days ACH Initiation 30 Business Days ACH Block with Filter 5 Business Days Cash Manager Online 3 Business Days CD‐Rom Imaging 5 Business Days 10 Business Days Full Reconcilement On‐Site Deposit 5 Business Days Positive Pay 15 Business Days File testing, training, user manuals and technical assistance are provided as part of the implementation process. We will provide training to all employees during the implementation process and we are pleased to offer additional or follow up training as required by our clients. BB&T's Client Support department has dedicated technical support professionals, who are available from 8:00 a.m. through 8:00 p.m. EST, Monday through Friday. By simply dialing a toll‐free number, Clients can contact product specialists at their convenience for training and technical assistance. 79
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BB&T’s Technical Support and Implementation team will work with your local BB&T primary contacts, the District, and the District’s vendors to ensure proper communication including telecommunication requirements, system compatibility and transmission testing as well as other on‐line or PC based applications. BB&T’s Technical Support professionals are available to support commercial Clients from 8:00 a.m. through 8:00 p.m. (EST), Monday through Friday. Our new Client training is normally held via a conference call between the trainer and the client. During the training session the trainer will set‐up and perform the training using a web conferencing system. This option allows the District to use the newly purchased product with the aid of a trainer. Once the training is complete our trainer will provide the District with our customer service options for immediate assistance. 80
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Executive Summary BB&T is well positioned to provide the District with services that meet its objectives to achieve the most productive use of resources, minimize operating costs and bank fees, safeguard assets, utilize available technology, and provide maximum flexibility in the management of day‐to‐day operations. We are committed to building a strong relationship with the District and providing high quality, efficient banking services at very competitive prices. Guaranteed Pricing: In addition to providing quality services, BB&T offers the District very attractive relationship pricing with the inception of a new contract no later than July 1, 2012 and is guaranteed for a period of three years. The pricing will be reviewed at the end of the three year term and an additional one (2) year extension maybe offered with the concurrence of both the Bank and the District. BB&T will waive fees for the first 90 days to limit the expenses associated with having duplicate services at two financial institutions and in recognition of the extra effort the District will expend during the implementation phase. Pricing will be negotiated as new accounts and services are added. Account Structure/Deposit Services: BB&T offers a wide range of accounts that can minimize manual entry and optimal funding of payments. BB&T recommends that the District utilize a combination of our Public Fund Analyzed Checking Accounts for its operating accounts. This full service checking account product offers the option to group accounts for monthly account analysis purposes allowing aggregate balances to work for the District by reducing fees. It is analyzed monthly and provides the opportunity to reduce or eliminate service charges with a monthly “earnings credit allowance” that is applied toward the cost of the services. Additionally, BB&T recommends that our Public Fund Basic Checking be used for the District’s miscellaneous accounts. This account is designed for public fund entities with lower levels of account activity. It offers the opportunity to reduce operating expenses by eliminating checking account maintenance fees through maintaining qualifying balances. For earnings on excess balances, BB&T recommends that the District utilize our Public Funds Money Rate Savings account for earning interest on excess balances. Each of these account types will meet the collateral requirements and the liquidity needs of the District. Comprehensive Payment Solutions: BB&T strives to be a trusted advisor to its clients by taking a highly consultative approach to customer service. The District’s relationship manager, Nanci Simonson, and Treasury Management Consultant, Cheryl Mortonata, will arrange regular quarterly meetings with key District personnel to optimize efficiency, reduce unnecessary costs, mitigate fraud risk, and add overall value to the relationship. They will tackle each of these areas through a thorough review and discussion of the District’s payment cycle. Online Services: CashManager OnLine gives the District strong authenticated access to crucial financial information and allows the District to perform real‐time cash management transactions from anywhere there's an Internet connection. The District will have one‐stop access for balance and transaction reporting, miscellaneous payment initiation, image access, positive pay decision, and on‐line statements. Where desired, CashManager OnLine will be used for: 81
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Daily balance and activity reporting Wire Transfers Stop Payments Account Transfers Automated Clearing House (ACH) ‐ file origination Download of Paid Checks for monthly reconciliation Access to Bank Statements & Account Analysis Statements The District will have multiple ways to access information for your balance reporting needs. Reports are available on‐line through your CashManager OnLine connection; however, for a SAP interface we can deliver a BAI file via Internet or computer to computer. Implementation support: We recognize that changing banks is a major decision and can present a seemingly daunting task to those involved. In recognition of this, we offer a managed approach to on‐boarding significant new clients such as the District. In addition to the local relationship team, BB&T will assign a dedicated Implementation Specialist throughout the process to ensure a smooth, accurate and timely transition of banking services. With the help of the District’s staff, this Implementation Specialist will design the implementation plan and timeline, and coordinate weekly meetings with the District’s staff to address questions and ensure all parties are appropriately prepared. BB&T utilizes a project management approach to implementations. We would provide you with an experienced team of individuals, lead by an implementation project manager, to work with the District’s assigned personnel to develop and execute the detailed, specific implementation plan. Our proven procedures will help to ensure a smooth transition of your accounts and services to BB&T. BB&T is prepared to commit appropriate resources to achieve the final objective; a smooth conversion for the District. Your primary Treasury Management Consultant, Cheryl Moronta, will be involved in implementation meetings as appropriate and regularly informed of progress as the implementation process moves forward. 82
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Cost of Services The pricing portion of the Proposal has been provided in the Cost of Services document of this proposal. 83
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Insurance If awarded the Banking Services Contract of the District, it is our intention to have the required insurance, within ten days of notification by the District. BB&T understands the insurance requirements. 84
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Appendix 
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Reconciliation Reports Daily Balance and Activity Reports Repurchase Agreement Calculation Schedule Monthly Bank and Analysis Statements Schedule of Collateral Pledged Master Agreement Wire (Funds) Transfer Agreement ACH Agreement Zero Balance Account Agreement Sweep Investment Service Agreement Custodian Agreement Vault Implementation Guide Product Descriptions Awards 85
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END OF PROPOSAL 86