ABC School System Sample RFP. Request For Proposal. Banking Services

ABC School System Sample RFP Request For Proposal Banking Services

PROPOSAL FOR BANKING SERVICES ABC School District I. OBJECTIVE The objective of this Request For Proposal is to identify the banking institution that can offer the highest quality services at the lowest cost to the ABC County Board of Education. Sealed proposals will be received by the ABC County Schools, mailing address until 4:00 p.m., date. All proposals will be stamped reflecting the date proposals are received. Proposals must be sealed and marked Cash Management Proposal for ABC County Schools and mailed or delivered to John Doe, CFO, ABC County Board of Education. Proposals submitted after the time and date described above will be returned to the proposer unopened and marked Non-responsive. Please submit a copy of your most recent audited financial statement with your proposal. A pre-proposal meeting will be held in the ABC County Board of Education Board Room located at (Address) on February 18, 2XXX, at 1:00 p.m. All proposals will remain in effect for a period of 90 days following the scheduled submission date. It is anticipated that the bid will be awarded by April 1, 2XXX, and the banking services will be effective July 1, 2XXX. All proposals become the property of the ABC County Schools. 1

SELECTION CRITERIA Proposals will be evaluated on the following items: 1. Bank must be a qualified depository for public funds in accordance with state and local laws. 2. Ability to meet all requirements in the Request for Proposal. 3. Complete response to all required items on bid form. 4. Lowest aggregate banking service cost, consistent with ability to provide an appropriate level of service. 5. Effective interest rate paid on fund balances. 6. Best availability of schedules. 7. Financial strength and capacity. LENGTH OF CONTRACT The contract will be for a period of five years, with a beginning date of July 1, 2XXX. At the end of the five-year term, the ABC County Board of Education may exercise an additional two-year option or rebid. GENERAL TERMS AND CONDITIONS 1. Termination of this agreement may be made by either party with a 180-day written notice outlining the intent to terminate. 2. The ABC County Board of Education reserves the right to invest funds in Certificates of Deposit and/or United States Government Securities whenever it is in the best interest of the Board. 2

3. Fees quoted in the Proposal will be the same during the life of this contract except as may be noted in the proposal. 4. The ABC County Board of Education reserves the right to reject any and all proposals received. The ABC County Board of Education reserves the right to accept a proposal, which, in its opinion, meets or exceeds the specifications so defined in the Proposal and encourages bidders to identify a plan, which exceeds the plan, so defined in the Proposal. 5. All deposits of the ABC County Board of Education are to be secured by pledged collateral under the SAFE program administered by the Office of Alabama State Treasurer. The financial institution must be a qualified public depository in the SAFE program under Title 41 of the Code of Alabama 1975. Financial institutions must provide a certificate of Qualified Public Depository. In addition, the awarded financial institution must provide a verification statement of all accounts of the Board secured under the SAFE program as of September 30 each year. 3

II. DESCRIPTION OF BANKING SYSTEM The ABC County Board of Education will maintain the following major accounts at the banking institution. I. DEPOSITORY ACCOUNTS A. General Fund This is a major account for the Board where the majority of receipts will be deposited. This account will also receive ACH deposits from Federal and State agencies. B. Child Nutrition This is the receiving fund for all school lunchroom activities of the ABC County Board of Education. Deposits will be mostly in cash, but this account will also receive some ACH deposits. C. Capital Building Fund This is the receiving account on accounts for bond proceeds. These receipts will be by ACH or checks and be few in numbers. II. DISBURSEMENT ACCOUNTS A. Accounts Payable Account Transfers are made to this account from the depository accounts on a weekly basis to cover all checks written in accounts payable. B. Payroll Account Transfers are made to this account monthly or biweekly from the depository accounts to cover all payroll checks and direct deposits for payroll. 4

III. SWEEP ACCOUNTS Sweep Accounts The balances in the two disbursement accounts are transferred at the end of the day into an overnight investment account, thereby bringing the disbursement account to a zero balance. IV. Check Clearing Accounts Check Clearing Accounts On a daily basis transfers are made from the two disbursement accounts into the two check clearing accounts to cover all checks presented that day for payment. A. Accounts Payable Clearing Account B. Payroll Clearing Account 5

DEPOSITORY ACCOUNT General Fund CNP Fund Capital/ Bond Fund A/P Clearing Fund P/R Clearing Fund A/P Sweep Investment Account P/R Sweep Investment Account 6

BANK SERVICES TO BE INCLUDED IN PROPOSAL A. Concentration/Zero Balance Account Structure Proposal must include this account structure. All interest earnings will be credited to the General Fund for all funds except the Child Nutrition Program, and Capital Building Fund. Interest will be calculated through the next to last working day of the month and posted on the last working day. B. Account Services 1. A statement will be issued for each of the Board s bank accounts. Each statement will reflect all credit and debit transactions. All debit charges other than checks issued against the account will be fully explained. Statements will be issued as of the last day of each calendar month. 2. Deposits on all accounts will be listed by date and cost center number (four digit code on bank deposit). C. Account Reconciliation Services The awarded bank will provide full reconciliation services for all accounts specified in the Request for Proposal. Banks are required to attach a copy of their reconcilement services detailing the features of their particular program (Attachment #1). The services should provide as a minimum the following: a. Provide a numerical listing of paid checks on Accounts Payable and Payroll with totals. b. Provide a numerical listing of unpaid checks on Accounts Payable and Payroll with totals. c. Provide a consolidated statement in numerical order of all transactions with totals. d. Provide a consolidated statement in order by check amount with totals. 7

e. Provide a tape listing of paid items on Accounts Payable and Payroll, to be compatible with our system. f. Be able to accept a tape of all checks issued on Accounts Payable and Payroll for the month. g. Accept written authorization to void checks in the system that are not stop payments. h. Accept written authorization to add checks that are issued with different dates. D. Account Analysis Statement The awarded bank will provide an AAS on a monthly basis that delineates the services provided and the compensation required to pay for these services. E. Payroll Direct Deposit The awarded bank will act as paying agent to other bank institutions where employee direct deposits are made. Currently 1,800 direct deposits are made on a monthly basis for employees through ACH. All direct deposits are to be available for immediate withdrawal on payday. Banks should attach a detailed description of the direct deposit services that are available (Attachment #2). F. Wire Transfers G. Daily Balance Report H. Payroll Tax Deposits I. Deposit Tickets -- The awarded bank will provide deposit tickets with four digit auxiliary number. J. Bank Service Fees Service fees will be billed directly to the Madison County Board of Education. No debit memos will be made to any accounts for bank services. 8

L. Line of Credit A line of credit in the amount of $5,000,000 will be established for short-term loans. Interest rates will be in accordance with State Law. M. On Line Banking Service Bank must provide capability for direct on line banking service. This will be used for making daily transfers to clearing fund as well as weekly transfers to disbursement account. A toll free number should be provided. N. Reports Reports with date, collected balance, investment portion, interest rate and amount of interest with totals should be provided for each account. O. Account Executive -- Banking institution will designate an Account Executive for the School System and a Local Representative to handle daily administrative problems. A backup person will also be designated when primary representative is absent. P. Other Bank Services To Be Included Second Deposit on Insufficient Fund Checks Stop Payment Requests Night Depository Bags Four Per School Investment Service Bank is requested to list other bank services that may be available to the school system that are not in the proposal (Attachment #3). 9

LOCATION REQUIREMENTS The ABC County School System has over 20 school sites located throughout the county. It is important that a banking facility be located in the following areas. 1. Madison 2. Northeast Huntsville 3. Northwest Huntsville 4. Central/Downtown Area As part of this proposal, please list the location and address of your main office and all branch offices (Attachment #4). 10

EXHIBIT #1 ABC County Schools Consolidated Proposal Form BANK SUBMITTING: Bank Depository Services Estimated Annual Volume Account Maintenance 10 Checks Paid Payroll 7500 Accounts Payable 9600 Items Deposited General 300 CNP 2000 Returned Checks 125 Stop Payments 25 Wire Transfers Incoming 50 Outgoing 20 Bank Transfers Between Accounts 150 Charge Per Item Annual Charge Other Bank Services Direct Deposits 12 Reconcilement - Full Daily Report Concentration Acct. Tax Deposits 24 N/A N/A 11

Exhibit 1 (Continued) Other Charges* Charge Per Item Annual Charge Total Charge Average Monthly Amount (Total Bid 12) $ *Include all charges that may apply to this account. 12

INVESTMENT ACCOUNT & CALCULATION OF INTEREST 1. Disclose in detail the type of investment account structure your bank is proposing. Automatic open repurchase agreements are acceptable as long as investments are fully collateralized. See Attachment #5. 2. In determining the rate of interest that will be paid on the Investment Account, the rate will be based on either the effective Federal Fund rate or the 90-day Treasury Bill rate. 3. It is estimated that the ABC County Board of Education will maintain an average daily balance of $9,000,000 based on prior year s information. This represents an estimate only and the ABC County Board of Education makes no representation that this estimate of activity will continue. There are too many factors beyond our control in the area of funding for us to guarantee any level of activity. 13

EXHIBIT #2 ABC COUNTY SCHOOLS CONSOLIDATED BID FORM INTEREST RATE AND RESERVE REQUIREMENTS 1. What independent interest rate will be reference point for your daily rate? 2. How many basis point will be added or subtracted to the rate to obtain the rate to be paid on the ABC County Board of Education balance? 3. Will any reserve requirements be deducted from the book balance before applying the interest rate? If yes, disclose in detail: 4. In calculating the daily amount, what denominator will be used? (Please circle) 360 Days 365 Days Other (Describe): 14

4. Describe any other modifications or adjustments to book balance which would be made before applying the interest rate to the balances. 5. Disclose the calculation for determining the FDIC assessment: 6. State the exact interest rate that would have been paid to the ABC County Board of Education for balances at the end of the day on: November 30, 2XXX February 28, 2XXX June 15, 2XXX November 5, 2XXX 15

Note: This example is for illustration purposes only and will not be used to determine the awarded bank. Complete the following: Date Book Balance Reserve Requirement Other Adjustments Balance For Calculation of Interest Interest Rate Daily Interest Credited Feb. 1 $10,000,000 Feb. 2 $10,000,000 Feb. 3 $10,000,000 Feb. 4 $10,000,000 Feb. 5 $10,000,000 Feb. 6 $10,000,000 Feb. 7 $10,000,000 Feb. 8 $10,000,000 Feb. 9 $10,000,000 Feb. 10 $10,000,000 Feb. 11 $10,000,000 Feb. 12 $15,000,000 Feb. 13 $15,000,000 Feb. 14 $15,000,000 Feb. 15 $15,000,000 Feb. 16 $15,000,000 Feb. 17 $15,000,000 Feb. 18 $15,000,000 Feb. 19 $15,000,000 Feb. 20 $15,000,000 Feb. 21 $15,000,000 Feb. 22 $15,000,000 Feb. 23 $15,000,000 Feb. 24 $18,000,000 Feb. 25 $18,000,000 Feb. 26 $18,000,000 Feb. 27 $18,000,000 Feb. 28 $18,000,000 Total Interest Note: Use the exact rate and calculation that would have been used for the month of February 2XXX based on your bid proposal and the above information. All adjustments must be included in your calculation. $ 16

Note: This example is for illustration purposes only and will not be used to determine the awarded bank. Complete the following: Date Book Balance Reserve Requirement Other Adjustments Balance For Calculation of Interest Interest Rate Daily Interest Credited June 1 $8,000,000 June 2 $8,000,000 June 3 $8,000,000 June 4 $8,000,000 June 5 $8,000,000 June 6 $8,000,000 June 7 $8,000,000 June 8 $8,000,000 June 9 $8,000,000 June 10 $12,000,000 June 11 $12,000,000 June 12 $12,000,000 June 13 $12,000,000 June 14 $12,000,000 June 15 $12,000,000 June 16 $12,000,000 June 17 $15,000,000 June 18 $15,000,000 June 19 $15,000,000 June 20 $15,000,000 June 21 $15,000,000 June 22 $15,000,000 June 23 $15,000,000 June 24 $15,000,000 June 25 $9,000,000 June 26 $9,000,000 June 27 $9,000,000 June 28 $9,000,000 June 29 $9,000,000 June 30 $9,000,000 Total Interest Note: Use the exact rate and calculation that would have been used for the month of June 2XXX based on your bid proposal and the above information. All adjustments must be included in your calculation. $ 17

Note: This example is for illustration purposes only and will not be used to determine the awarded bank. Complete the following: Date Book Balance Reserve Requirement Other Adjustments Balance For Calculation of Interest Interest Rate Daily Interest Credited Nov. 1 $12,000,000 Nov. 2 $12,000,000 Nov. 3 $12,000,000 Nov. 4 $12,000,000 Nov. 5 $12,000,000 Nov. 6 $13,000,000 Nov. 7 $13,000,000 Nov. 8 $13,000,000 Nov. 9 $13,000,000 Nov. 10 $10,000,000 Nov. 11 $10,000,000 Nov. 12 $10,000,000 Nov. 13 $10,000,000 Nov. 14 $10,000,000 Nov. 15 $10,000,000 Nov. 16 $10,000,000 Nov. 17 $10,000,000 Nov. 18 $10,000,000 Nov. 19 $10,000,000 Nov. 20 $10,000,000 Nov. 21 $8,000,000 Nov. 22 $8,000,000 Nov. 23 $8,000,000 Nov. 24 $8,000,000 Nov. 25 $8,000,000 Nov. 26 $8,000,000 Nov. 27 $8,000,000 Nov. 28 $8,000,000 Nov. 29 $8,000,000 Nov. 30 $8,000,000 Total Interest Note: Use the exact rate and calculation that would have been used for the month of November 2XXX based on your bid proposal and the above information. All adjustments must be included in your calculation. $ 18

EXHIBIT #3 AVAILABILITY OF FUNDS The ABC County Board of Education receives funds primarily from the following agencies: A. State of Alabama B. County Government C. Local Agencies D. Federal Government Complete the availability schedule for deposit clearing on checks drawn on: Agency Availability A. State of Alabama B. County Government Local Banks C. County Government On Us D. Individuals Local Banks E. Other 6 th District 19

Attachment #1 Account Reconciliation Services 20

Attachment #2 Payroll Direct Deposit Services 21

Attachment #3 Other Bank Services 22

Attachment #4 Location of Main Office And All Branch Offices 23

Attachment #5 Description of Bank s Investment Account Structure 24

25 ANALYSIS OF BANK PROPOSALS Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Est. Annual Volume Chg. Per Item Annual Chg. Chg. Per Item Annual Chg. Account Maintenance 10 8.00 960.00 8.00 384.00 12.00 288.00 8.00 576.00 10.00 100.00 Checks Paid Payroll 7500.13 975.00.12 2,052.00.10 750.00.12 2,052.00.14 1,050.00 Accounts Payable 9600.13 1,248.00.12.10 960.00.12.14 1,344.00 Items Deposited General 300.07 21.00.055 146.50.08 24.00.06 138.00.07 21.00 CNP 2000.07 140.00.065.08 160.00.06.07 140.00 Returned Checks 125 2.00 250.00 2.00 250.00 3.00 375.00 1.00 125.00 0 0 Stop Payments 25 0 575.00 24.00 0 Wire Transfers Chg. Per Item Annual Chg. Chg. Per Item Annual Chg. Chg. Per Item Annual Chg. 375.00 12 300.00 14 350.00 22 550.00 Incoming 50 10 500.00 12.00 600.00 12.00 600.00 12.00 840.00 10.00 500.00 Outgoing 20 NA 10.00 200.00 12.00 240.00 12.00 10.00 200.00 Bank Transfers 150 375.00 0 0.12 18.00 0 Between Accounts Bankers Plus 1,728.00 Other Bank Services 1,748.00 600.00 Direct Deposits 12 1,742.00 1,404.00 1,368.00 1,920.00 1,428.00 Reconcilement - Full 1,111.00 1,773.00 3,660.00 2,160.00 3,426.00 Reconcilement N/A 300.00 372.00 300.00 Deposit Daily Report N/A Concentration Acct. Tax Deposits 24 0 0 25.00 0 0 Sweep Accounts 9,000.00 0 0 5,040.00 1,800.00 Controlled Dis. 1,200.00 1,440.00 0 1,800.00 PC Bank 1,560.00 1,260.00 2,040.00 480.00 TOTAL 18,855.00 10,244.00 11,850.00 15,831.00 13,742.00 MONTHLY 1,571.00 854.00 988.00 1,320.00 1,146.00