Broward County Your Financial Relationship Guidebook Contacts: Ramkalawan m amela mkalawan TD.co amela.R December 17, 2019 Date:
~ ml Treasury Services Discuss any services listed in the Treasury Services Scope of Services that are unable to provide and if the bank is actively looking to provide those services {include timeframe). -TD Bank has the ab ility to provide the services required by the County . Discuss how your bank will address the Recoupment Charge {aka FDIC Charge): What the rate will be, how it will be assed, what it is tied to, if it can change without notice. -Unlike most financial institutions, TD Bank does not assess an FDIC charge to Government clients. Broward County will not incur any recoupment charges related to FDIC insurance coverage of its deposits during the contract term . Given Broward County's signi ficant average balances, TD Bank provides a substantial benefit to the County by absorbing this cost. - - CLIENT ANALYSIS STATEMENT SERVICE DETAIL S vc A FP S• rvic • Unit O•~crlpiion I IAl,118 0 12750 000230 RECOUPMENT t,IONTHL Y 18 180 038 69 23 , 009 68 BALANCE & COMPENSATION INFOR M A TION 23 . 069 . 65
ml Treasury Services Discuss your proposal for structuring bank accounts to maximize the Earnings Credit Rate (ECR) and Interest earnings. If the ECR and/or interest rate is tied to an underlying benchmark, explain the timing of the impact when the benchmark changes. If it is an internally managed rate, explain how a change occurs. Provide an example using an average positive collected balance of $200,000,000 and gross bank fees of $50,000 (rates as of November 1, using 30 day period). Include the bank's requirement {if any) for a reserve balance. Show how much of the balance would be required to cover fees and the interest earnings on the rema i nder. II!] Ba nk 201 9 P ri dng P ro fom1a ~ M unicipa l A dva n tage O, ec kin g PrepaN!d for: Oate (HWOO !Y fYY): 1 !/ 21/::01; Bro w ard Coun ty S oa rd of Co unt y Commissio n ers Pet Eva luation Committee·~ , ea~ of s.200,000,000.00 Average Collected Balanc~ and .SS 0, 000 f-. 0..,.,"S h Ye-- 1 : 365 D.ys "' Poncd: 30 .-.,,.,~g• L.dg t r B~bn« 200 , 000 . 000.00 !AU;Es:,_..,.,odRo.,t 0.00:-. Av •n 9• Collec ud ~br>e« 200 . 000 . 000.00 R... o. oo-. loi:s: R,q "' rt<i R twvt lnYtitabk ~l•n<• 200 , 000 . 000.00 \AU ! l_,,,.:,lo S.~a-s lttc _ .. , :X, ()i'.A( Se-,,c,,s 3! t96,SS1.;:o ln,-tabk ~lanc,o uc.-ss (o.f10 t) 16&.60) 418..80 l"«r.t-~ y-_. , 8,,a~n,ce-s Av1ila.b~ for Eammgs Cred..l t ( '-:,.ig (d e.., ~ 200 . 000 , 000.00 Eam ing-j Cr+drt Al low ance 320 , ~7 .9~ Al\jr--1 S.,,,<e< • LM11 T cu !. 0. OOl .00 Total 4 nalyud Cll.lNJH Tot~I Fe. 8~ .s,ed Ch~tgH • Tot•I Ch..-9es Out 1 68.803 •1 8.$0 Toul Hon'thlv Intfffft Umed 270 .~ 7.9S
ml Treasury Services Account Structure TD Bank proposes our Municipal Advantage product to Broward County to maximize ECR earnings and earning on excess balances not needed to cover the cost of banking services. With TD Bank's Municipal Advantage, Broward County will earn an aggressive ECR on all collected balances. Earnings credits are amassed until service fees are completely covered. Based upon an average collected balance of $200 million, TD projects that $31,196,581.20 in balances would be needed to cover fees assuming an ECR of 195bps. Balances exceeding $168,803,418.80 receive hard-dollar inte rest . Assuming an interest rate of 195bps, Broward County would earn $270,547.95 in interest monthly. Rate Benchmarking 11 approach to setting earnings credit rates and interest At TD Bank, we utilize a "managed rate rates. Rate changes are based on movement within market indices such as Fed Funds and 30 day LIBOR. Reserve Requirement TD Bank is not assessing a "reserve requirement' to Broward County which frees up 10% of average collected balances for additional earning credits and interest earnings. Balance Required to Cover Fees [J>ased upon average balances of $200 million and monthly fees of $50,000.00, Broward County would need to keep $31,196,581.20 in compensating balances to cover all fees.
ml Treasury Services Please speak to the bank's ability to interface with the PeopleSoft Treasury /Cash Management Modules. TD eTreasury also offers a wide array of industry standard and customizable formats for download that are compatible with the PeopleSoft ERP platform, including: • BAI . csv • XM L • PDF • Word • Excel • PowerPoint • QuickBooks • Quicken • Tab separated •
Lockbox Services Please describe your lockbox processing service from end-to-end. Include each step from mail pickup to bank deposit. Transaction Processing Overview • Manually Key I • Retrieve completed • • transactions on Receive unsorted • Remove envelope Capture mall unique Zip mall contents Correct cnec1< 1 batcnes from trom PO scanning equipment Coupon l· Jliq Line & outbound mail Dins • Review contents Amount Data • Receive s· orted • separate cnecKS • va1coate pacJcage as per customer Caller Box mall from • Balance batches specific ano invoices contents via barcode Ute PO instructions tractcmg • Stage work tor • Manually key • Manually place maIr • Generate packaging • Prep contents as invoice oata 11eIcs return to producuon into customer per customer noor 11 required tabel rrom sy stem specific In bouno II ReassocIate cneck staging bins specific • Stage work for • Complete pac1eagIng pnotocopIes to requirements • Sort unique Zip rnaII cnvo,ces retention sIgno1t by LOCl<bOX 1D Via • Manually review requirements • Generate oaIcn & • Manually QC automated mall ano vahoate payee oeposit repons package conlents ror sor1Ing equipment detaII accuracy • Place completed • • Manually move Create 0aIcn !or • Forward package tor batcnes In image capture sone<l Unique Zrp customer specI1Ic dellvery {UPS or 1" marl into customer outoouno ma,I bins cIassma1I) specIf;c In bound • stagi ng bins • Open & 0ISl(Ibute Caller Box mail ror processing • All incoming mall removeo lrom staging bi ns and assigned lo processors
ml Lockbox Services Please describe the differences in your wholetail lockbox operations and retail lockbox operations. -Both types of transactions are integrated into a single workflow and processed in the same environment. -Automated and manual capture of account information is available in the integrated workflow . -High and low speed capture equipment has been integrated to allow for optimal capture and processing of retail and wholetail transactions. - Note the manual nature of wholetail vs the automation in retail with extraction/capture equipment and utilization of the scan line. Also noting we use a single platform where we have the flexibility to apply the relevant workflow steps to ensure maximum workflow efficiency and controls. As an example we apply batch prep to wholetail but not retail. (Batch prep in wholetail referencing the manual keying of each check amount to replace the scannable coupon available in a retail D environment), same with payee validation, etc. Also note that from a physical control perspective it's a single area with consistent controls .
ml Lockbox Services Describe any customizations and/ or value-added services which can be provided as part of your lockbox services. Ability to handle payments based on customer specific business rules through customized edit programs TD lockbox develops customized workflows based on customer requirements and a careful assessment of back office needs. We'll work closely with Broward County to develop the most efficient workflow which would include customization requirements. Please provide an overview of the tools available to your lockbox customers for things such as online decisioning, reporting , file uploads, etc. Online decisioning is a secure web based service that allows the County to view exception items on a daily basis. The County will have the ability to provide missing payment information as well as dispositioning each transaction. Lockbox reporting is available through a variety of options including; on line web solution, daily email notification, delivery of document packages, or daily • transmission of lockbox details.
ml Lockbox Services If a local lockbox processing location is not available to Broward County, please describe the components of the non-local solution provided. Include all touch points, estimated transaction float time and steps taken to mitigate delays in processing. -Unique zip from the Philadelphia Post Office allows for better mail availability due to reduced postal sorting. -TD Bank's Mt. Laurel, New Jersey Lockbox processing facility provides an enhanced workflow design. -Extended processing hours at this location. -Full and part time staff to support peak processing periods. -Utilizing the Mt. Laurel facility adds one day for mail float {3 days versus 2 days for local mail) to the process. However, TD Bank provides for next day availability of deposits. Additionally, we process and post all work on the day of receipt. •
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