Custodial Banking Services

The Vendor is required to provide custodial banking services for include:
• Hold all securities in the name of authority.
• No cash or securities may be held in the name of the bank.
• Authority requires an independent agent to safe keep and clear securities on a delivery versus payment basis and report investments to ensure the protection of its security interest in portfolio investments.
• Segregate all authority cash and securities from bank assets and assists of bank clients.
• Authority requires the bank to be thoroughly familiar with the public sector and the investment of public funds.
• The bank shall respond to audit confirmations and other requests for data annually or as needed from authority internal and external auditors.
• Authority request, the bank shall permit the auditors to conduct on-site inspection of transactions or review the bank's system of internal controls.
• Settle purchases, sales and other transactions upon receipt of instructions from an authorized person.
• Authority traditionally executes two (2) trades in the account per month.
• Collect all coupons and other periodic income on securities held and process per instructions received by authorized persons.
• Monitor and record the collection of funds in accounts maintained for authority.
• Provide an overnight investment vehicle (sweep) that complies with the state government code sections that regulate the investment of public funds.
• Balances invested in the sweep are minimal, typically less than $300,000.
• Initiate wire transfers of funds from authority account upon receipt of instructions from authorized persons.
• Create, maintain and retain all records relating to securities held in custody in authority accounts to meet the requirements and obligations under generally accepted accounting principles.
• Provide online reporting of portfolio activity and holdings on a real-time or next day basis.
• Provide online monthly activity statements and reports including the market value and cost of all portfolio holdings.
• Provide monthly activity statements and reports for all accounts, including market value and cost of all securities.
• The statement cut-off should be the last day of the month.
• Statements must be made available online no later than the 2nd business day of the following month.
• The bank will not be expected to nor authorized to execute securities transactions on behalf of authority.
• The bank shall provide both proactive and responsive recommendations to authority.
• The bank shall immediately notify authority whenever they are aware of potential problems that may occur to authority accounts.
• Authority staff should be informed of any new form of check fraud, which may affect authority immediately after the bank becomes aware of it.
• The bank shall provide authority with information on action the bank is taking to address the issues and provide recommendations on course of action and options to authority that would result in minimal administrative and cost burden to authority.
• The bank shall provide authority with information concerning new and updated technology in the banking industry, which can improve authority banking or business activities.
• Designated bank shall be available by telephone at all times during the bank’s regular business hours to respond promptly to authority questions or requests.