Core Banking System Preview

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Core Banking System Preview

• For Agencies, Universities, LEAs
• and Community Colleges

May 2005
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Why Replace Old System?

• Old system comprised of several outdated separate
  legacy systems developed in early 1970s and 1980s
• Desire to offer agencies on-line banking
  functions - same as commercial banks
• Desire to expand Positive Pay Program to all
  agencies

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Vendor Selection

• 4.6 million appropriation secured
• Desire to obtain off-the-shelf software used by
  banks
• RFP assistance provided by Gartner Consulting
  Group
• Software selected Flexcube
• Vendor selected i-flex solutions, ltd.
• Ranked among top two wholesale back-office
  banking systems in the world for past three years

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Implementation Schedule

• September 2002 Project start date
• May 2003 System testing began
• June 27, 2003 Conversion date
• June 30 July 3 Parallel production
• July 7, 2003 Cut-over (as of July 1)
• July 8, 2003 CB made available to pilot
  agencies
• August 1, 2003 CB made available to all
  agencies
• Fall 2003 Positive pay available to agencies

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Customers and Accounts
Customer Accounts
Customers
Federal Reserve Bank
State Agencies Universities Community
Colleges Boards, Comm., Etc. Local School
Units Clerks of Court (AOC) DMV-DL Offices
DMV-LP Agencies
Budget Codes STIF Accounts Disbursing Accounts
Warrants
Invested
Depositories
Main Raleigh Banks Community Banks CIT Branch
Banks DSTTeller Window
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Interfaces with Core Banking
OSC - CMCS EOM Budget Code Balancing
OSC - RBS Electronic Warrants
OSC - CMCS Interest Postings
OSC - CMCS Deposit Certifications Requisitions Age
ncy Transfers
ITS Positive Pay Files
CB
ITS Paid Warrant Files
Agencies Stop Payment Files
Agencies Positive Pay Files
Depository Banks BAI Deposit Files
FRB Warrants MICR Images
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CB Online Features

• VIEW________
• News bulletins
• Account contacts
• Account balances
• Account activity
• Paid warrant status
• Images of paid warrants
• Active stop pays
• Active positive pay records
• Outstanding bank deposits (CIT/CMCS)

• INITIATE_______
• Stop payments
• Single adds deletes
• Batch uploads
• Positive pay
• Single adds deletes
• Batch uploads
• Download statements
• Adjustment requests
• Verify statement reconciliation performed
• Deposit ticket orders

Site available Mon - Fri from 700 a.m to 500
p.m. (Except State Holidays)
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Special Features for Budget Code Customers

• CB not intended to replace CMCS (Only a tool
  available via the Internet)
• Can view balances
• Can view activity (deposits, requisitions, agency
  transfers, interest posting)
• Access to General Fund budget codes (1xxxx) not
  available
• Access to all other codes are available (types 2,
  3, 4, 5, 6, 7, 8)
• No statements rendered like disbursing accounts

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Special Features for CIT/CMCS Customers

• Only for agencies depositing into one of the six
  cash concentration banks (BBT, BOA, CCB,
  Centura, FCB, Wachovia)
• Not available for deposits to a community bank or
  main Raleigh bank (EFT deposits)
• CIT account agencies are assigned a six-digit
  bank account number to report on CMCS
• Can view CMCS reported deposits and bank-reported
  deposits by viewing account transactions
• Can view unmatched report generated by NCDSTs
  Recon Unit

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Agency Admin

• Each agency has an Admin
• User ID assigned by NCDST
• Cannot access site until activated by NCDST
• Deals with NCDST regarding all password issues
• Performs three basic functions
• Create users within the agency
• Assign roles to each user
• Map accounts to each user
• Other duties
• Modify users profile (email address, etc.)
• Reset passwords for agency users if necessary
• Unlock users if suspended from system
• Lock users if necessary

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Notable Changes

• Interest-bearing accounts.
• Earnings rate predetermined at beginning of
  month.
• Rate to be applied for given month is viewable as
  a bulletin.
• Enhanced interest advice provided (more detail).
• STIF Accounts Interest posted on the last day of
  the month for which interest applies.
• Budget Codes Interest posted on CB last day of
  month, but on first day of month on CMCS. (CMCS
  is official posting).
• Monthly account statement rendering to be
  discontinued.
• Agency to download a pdf file (Adobe Reader).
• Downloadable statements for prior twelve months
  available.
• Adjustments for previously paid warrant (encoding
  errors, etc.).
• Incorrect amount reversed as under the old
  system.
• Correct amount reflected as a newly paid warrant
  transaction on the paid warrant file. (Old method
  reflected a negative deposit).
• This method allow incorrect warrant to remain
  outstanding until matched off during the
  automated reconcilement process.

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Positive Pay

• Similar to service provided by commercial banks
• Agency provides NCDST daily file of issued
  warrants (checks)
• NCDST matches warrants presented thru FRB to
  active file
• NCDST dishonors invalid warrants and corrects
  encoding errors
• NCDST deletes paid valid warrants from active
  file
• Benefits
• Up-front check-paid reconciliation by State
  Treasurer
• Timely detection of counterfeits
• Agency updates active positive pay file two ways
• Submit batch upload (adds and deletes)
• Key single items (adds and deletes)
• Agency can view active positive pay records
• Can download file if desired (Excel)
• Should be same as agencys outstanding file
• Available to new participants in the Fall of 2003

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Additional Information
Prepared byNC Department of State
TreasurerFinancial Operations Division

• State Treasurers Website
• www.nctreasurer.com

CBS Help Desk Telephone [phone] Email
CBS.Help_at_nctreasurer.com