Banking Services

The vendor is required to provide banking services shall be arranged by selecting a bank through competitive solicitation to assure the authorities that it receives the banking services provided at the lowest cost.
- It should be noted, however, that authorities must designate a single bank account for the deposit of all payments that are received from HUD through direct deposit-electronic funds transfer (dd-eft).
- Procurement procedure and period of service
• Banking services should be periodically solicited through competitive negotiation. 
• The authorities to evaluate the quality of the services received as well as the price.
• The bank supplying the services from becoming complacent in its dealings with the authorities.
- Collateralization of deposits
• Authorities shall require their depositories to continuously and fully (100%) secure all deposits regardless of type (i.e., regular, savings, etc.) that are in excess of the $100,000 insured amount.
- Investment of funds
a. Funds available for investment
• Funds on deposit in the general fund are comprised of four components: (1) funds for current transaction purposes, (2) development and/or modernization funds, (3) funds exceeding those necessary for the daily operation of the authorities which are considered available for investment and (4) any operating reserve funds.
• As a general rule, the average amount on deposit in the general fund cash accounts (the targeted maximum cash balance) should be the amount needed on hand for transaction purposes or as a safeguard against cash shortages.
• The interest of good cash management, non-interest-bearing deposits should be reduced to the amount necessary to maintain a good banking relationship.
• Under the modernization and development programs, the term "cash management" also means minimizing the time elapsing between the drawdown and disbursement of funds by the authorities.
• Interest income earned on modernization funds is included as operating income in the calculation of operating subsidy eligibility under the performance funding system (PFS).
• Interest income earned on development funds is credited to the development program and reduces the development cost of the project.
b. Approved investment securities
• The purpose of investing operating reserves, issues shall be limited to maturities three years or less.
• Authorities are required to choose from these financial instruments.
• The HUD approved instruments, authorities are permitted to modify their investment policy without prior housing and urban development (HUD) approvals.
c. Determination of investment type
• Safety - safety is achieved through adherence to the list of permitted investments which are backed by the full faith and credit of, or a guarantee of principal and interest by, the county, a government agency or issued by a government-sponsored agency, coupled with an appropriate maturity date.
• Yield - the authorities should strive to achieve the highest yield consistent with the other factors of the investment policy.
• Tax-exempt securities are not appropriate for investment by a authorities because it would not benefit from the tax advantage.
• Liquidity - all investments must be capable of being liquidated on one day's notice.
• Maturity - investments should be scheduled to mature when the funds are needed.
• Amount - the best or most appropriate type of investment depends, to some degree, on the amount available for investment because certain investments require a large initial amount.
d. Internal controls
• Investment transactions shall be authorized by the authorities governing board and documented in the board minutes.
• Investment documents shall be kept in a safe fire-resistant locked file cabinet, safe deposit box, or other similarly secured location. 
• Individuals responsible for custody of securities shall be someone other than an individual maintaining the accounting records. 
• Investments shall be maintained in a custodian or trust account. 
• Investments shall be in the name of the authorities. 
• Investments shall be recorded in detail in an investment ledger.
• A system shall be in place to ensure that all interest earned is collected and credited to the appropriate authorities’ records.
• Investments shall be reconciled periodically to the detailed record (investment ledger).
- Contract Period/Term: 3 years
- Questions/Inquires Deadline: June 24, 2025