ACH is next day settlement, so the funds needed are required to be available the next day after an ACH is processed.

Transcription

1 GEORGIA LOTTERY CORPORATION Responses to all timely written questions and requests for clarification submitted by vendors under the Request for Proposal (RFP) for Banking Services issued on August 20, Under the specifications required for the Banking Services (item T, #1, a and b) it states, Immediate credit and use of all funds deposited is required, effective the entry date. Most ACH files are next day availability of funds. Are you receiving immediate credit today? (In the volume table, ACH is noted as next day posting). Please clarify. ACH is next day settlement, so the funds needed are required to be available the next day after an ACH is processed. 2. Can we get a copy of your current account analysis statements? Yes. The GLC will provide you with 6 months worth of pricing redacted account analysis statements from Bank of America by Friday, September 25, What is the dollar amount of your weekly ACH files? The Weekly ACH files are between $25-$40 Million Dollars for the traditional lottery. The COAM Master files (credit) are between $3-$6 Million Dollars, and the COAM Location files (debit) are between $4-$6 Million Dollars. 4. Who is your Payroll vendor? Are payroll checks drawn on the GLC or the payroll vendor? Our Payroll vendor is ADP, and ADP handles the payroll checks. Manual checks are occasionally issued by the GLC from the GLC Payroll account. 5. Are wire drawdowns or ACH debits used to fund the payroll vendor? ACH debits are used to fund the payroll vendor bi-monthly from the GLC s Master Account. 6. Can you provide the number of escrow accounts you have today? As of 9/14/15, we currently have 1,649 escrow accounts: 1,102 COAM; 547 traditional (GLC). 7. For the escrow accounts, can you please detail the check creation procedure? Checks are created from the online banking software provided by our financial institution. The escrow sub-account number, address, dollar amount information is input and the check is generated.

2 Page 2 of 7 8. How many checks are cut from the escrow accounts on a monthly basis? Between checks a month. 9. How does the GLC notify their bank when a new escrow account is needed? The GLC notifies the bank via secure when a new account is needed. 10. Who is the GLC s armored courier? Dunbar Armored 11. Are CD-ROM check images required? Yes, CD-ROM check images are required on a monthly basis of checks issued from the Prize, Accounts Payable, and Payroll accounts. 12. Is the state accepting any electronic credit and/or debit card payments from consumers who are purchasing lottery tickets? (including scratch off tickets and Powerball/Mega Millions type drawings) No, consumers cannot use credit cards for purchasing lottery tickets. The GLC allows consumers to use the GLC-created ihope debit cards for purchasing lottery tickets. PIN-based debit cards issued by financial institutions generally are also an acceptable payment method for purchasing lottery tickets. 13. What are all the ways the lottery currently accepts payments from its vendors and what ways are they looking to accept those ways going forward? Payments from our vendors are made either by wire transfer, ACH payment, or check. These are acceptable methods going forward. 14. Will the Georgia Lottery Corporation consider providing the pricing worksheet in excel or word format? Yes, the GLC will provide the pricing worksheet in Excel by Friday, September 25, 2015.

3 Page 3 of Please clarify how we are providing pricing on page 17. Page 15 states provide the total net cost for the first year of service and the total net cost for the initial three year agreement period and page 17 last column is asking for the THREE YEAR CONTRACT PRICE (PER ITEM PER MONTH) On pages 16 and 17, each bidder should provide the total cost for the first year in Column E; and the total cost for the 3-year period in Column F. Column headings will be included in the spreadsheet. 16. Page 25 of the RFP refers Attachment A and B. We could not locate the Attachments. Can you please provide Attachments A and B so that Bank of America can deliver a complete response for the Georgia Lottery Corporation? Attachment A is Exhibit B (Contract Compliance and Financial Disclosure Form) and Attachment B is Exhibit D (Consent Form). 17. Within the RFP, it states that the banks should provide pricing for all services. Can the lottery please provide an estimated annual volume of clients that could possibly use a prepaid card solution for acceptance of their winnings? The GLC is not currently utilizing prepaid cards as a means of making prize payments. Our estimated annual volume of prize winners is approximately 35, Please confirm the total number of demand deposit accounts GLC will utilize. The GLC will need to have 28 demand deposit accounts set up, with the capability to establish additional accounts as the need arises. 19. Please confirm the Average Collected Monthly Balance GLC will maintain for all accounts included in the RFP. The average collected monthly balance is a combined $6,500,000 for the GLC Master, the COAM Master, and the COAM Applications Renewals accounts. All other accounts are zero balance accounts or are maintained to a specified monthly balance. 20. Please confirm the percentage of your employees who are on direct deposit. 99% of employees are on direct deposit.

4 Page 4 of Will you provide the account analysis statement of your current bank provider? Yes. The GLC will provide you with 6 months worth of pricing redacted account analysis statements from Bank of America by Friday, September 25, Page 8 T.1.g & k a. Please confirm the number of District Office and Kiosk accounts. The number listed on page 8 does not match number provided on page 17. There are 10 accounts: 7 District Offices and 3 Kiosk accounts. The 20 on page 17 of the RFP refers to the average monthly volume of transactions for all of the accounts. b. Please clarify what type of financial security documents are deposited into the escrow account? Only cash is deposited into the Escrow account. c. Who would be party to the Escrow agreement? The retailers and the GLC d. How many sub accounts are needed for the Escrow Account? We require the capability to establish accounts for our entire retailer base, which is currently 8,800 for traditional lottery, and 5,100 for COAM. As of 9/14/15, we currently have 1,649 escrow accounts: 1,102 COAM; 547 traditional (GLC). e. Regarding the issuance of checks to refund the retailers, will the GLC issue the checks or will the Bank be required to do so? The GLC issues checks to refund the retailers. 23. Page 13 Optional Services a. Are you currently utilizing/leveraging the State of Georgia Merchant and Purchasing Card contracts? No b. Please provide the information below regarding your Merchant Services: i. Estimated credit card annual volume (Visa/MC/Discover)? $800,000 ii. Estimated credit card annual volume (AMEX)? Zero

5 Page 5 of 7 iii. Average Transaction size? ACH - $1,100; Visa/MC/Discover - $475 iv. Software/Equipment currently being used for the credit card processing? The GLC utilizes an internally developed software application, on the front end, which interfaces with an external merchant processing company. v. Please provide a description of how you will be processing credit cards. Example: Business to Business sales or Business to Consumer? Please briefly describe. Business to Business. COAM applicants have the option of paying license fees and/or renewal fees using credit cards, via our online licensing system thru our external merchant processing company. vi. What products/services will the credit card processing be used for? COAM license fees and/or renewal fees. vii. Please provide a copy of your current merchant statement. Yes. The GLC will provide you with 6 months worth of pricing redacted account statements from Merchant One by Friday, September 25, Page 13 Other Requirements - k a. Please provide the number of Purchasing Cards along with the annual spend. The GLC has 1 Purchasing Card with an annual spend of $51,000 b. Please provide the number of Corporate Cards along with the annual spend. The GLC currently has 16 Corporate Cards with an annual spend of $85,000.

6 Page 6 of Page 16 Cash Vault Services Volume For your cash vault deposits: a. When does your contract expire with your current armored courier vendor? The armored service contract is renewed on an annual basis. The current contract expires on 12/31/15. b. Do you strap currency? If yes, please provide an estimated number of straps per month. If no, please provide an average dollar amount deposited each month. Yes, we do strap currency at the Kiosk locations, and use approximately 250 straps per month. 26. Do you roll coin? If yes, please provide an estimated number of rolls per month. If no, please provide an average dollar amount deposited each month. Yes, we roll coins at the Kiosk locations, and we roll approximately 55 per month. Page 17 Incoming Wire Account Volume Does the deposited items volume represent deposited items or incoming wires? It represents both deposited items and incoming wires. 27. Page 17 Safekeeping Account Volume Please provide your current volumes for the safekeeping line items below, if applicable. Please also list any other volumes not listed below which are applicable to your current safekeeping service. a. Pledges and releases N/A b. Income Collection N/A c. Custody Fees N/A d. External Broker Transactions N/A e. Average Annual Dollar Amount of Investments Held in Safekeeping $288.5M

7 Page 7 of Page 27 - Certification of Information a. What are the activities that are limited and restricted? Activities that are limited and/or restricted are as outlined in the RFP. b. To whom do the above mentioned activities apply? The restrictions and/or limitations apply to all persons assigned to or working on the GLC account. 29. Pertaining to Desired Services in Exhibit A, section III. Under subsection A - Geographic Representation - the RFP states: Each of the eight GLC Offices is required to maintain a checking account located in its respective city. Each responding bank must provide, in their responses, details on which of the cities the bank has a full-service branch location, and its proximity to the GLC office. How critical is this requirement in the overall assessment of banking services providers? The GLC has District Offices in the eight cities outlined in the RFP. District Offices make bank deposits on a daily basis. A local banking presence is a highly desirable component of the banking services that we require.