Transcript Electronic Payment Program Agency Participation Process

Electronic Funds Transfer
Enrollment Process
For agencies and eligible entities desiring to
participate in the State Controller’s Master
Services Agreement (MSA)
Between the State of NC and Wachovia Bank
Dated October 1, 2005
Contract Number 14-05001
October 1, 2005 (Rev. 10/06)
Statewide Electronic Commerce Program (SECP)
Enrollment Process Steps
Step 1.
Identify EFT Project
Step 2.
Execute Enrollment Forms
Step 3.
OSC Acts on Request
Step 4.
DST Acts on Request
Step 5.
Wachovia Acts on Request
Step 6.
CPS Involvement & Testing
Step 7.
Establish Fiscal Procedures
Step 1 – Identify EFT Project
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Obtain information about EFT (ACH) from OSC’s Web site
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E-Commerce Statutes and Policies
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EFT Overview and EFT-101
Identify potential payment applications for ACH
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Outbound Transactions (Vendor payments, payroll, etc)
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Inbound Transactions (ACH debits)
Determine what mechanisms will be used to process ACH files
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Database of payee names and bank account information
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Method of transmission of ACH files to bank (CPS or direct)
Develop an internal statement of work, considering the program
requirements, work effort, cost and benefits
Obtain assistance from OSC – Use Project Implementation Plan
Obtain assistance from ITS if CPS will be utilized
Obtain approval from OSC if third party gateway is envisioned
Determine project feasibility and obtain management approval
Step 2 – Execute Enrollment Forms
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Master Services Agreement (MSA)
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Agency Participation Agreement (APA)
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Allows for agency to participate in MSA
Executed in quadruplicate by Agency CFO
Submitted to OSC for approval and obtaining of additional signatures
EFT Participant Setup Form
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Agency Fiscal Office reviews
Legal reviews if deemed necessary
Provides OSC, DST, and Wachovia with information necessary to setup
ACH file transmission, bank settlement accounts, invoicing, statement
rendering, etc.
Executed by Agency CFO and submitted to OSC
Routing of Forms Upon Receipt
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OSC signs and routes APA and Setup form to DST
DST signs and routes APA and Setup form to Wachovia
Wachovia returns 3 executed copies of APA to DST
DST forwards executed copies of APA to OSC for distribution
Step 3 – OSC Acts on Request
Approves or disapproves of participation
Request additional information if necessary
Advises agency of approval
Forwards appropriate forms to DST and
Wachovia
 Involves CPS if necessary
 If OSC is to be administrator for Wachovia
Connection
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• Setups up agency users as specified on EFT
Participant Setup Form
• Advises agency users of User-ID, initial
password, and instructions
Step 4 – DST Acts on Request
 Executes APA on behalf of the State Treasurer
• Only if participant is an Agency depositing funds with the
State Treasurer
 Authorizes Wachovia to establish a settlement bank
account
 Ascertains if fees for account are to be paid by Agency
or DST
 If a State Agency participant and Inbound payments
• Assigns a CIT account on Core Banking System (CB$) for
certifying deposits on CMCS
• Advises agency via Official Depository Designation Letter
 If a State Agency participant and Outbound payments
• Assigns an Electronic Warrant template number on CB$
• Allows for debit to disbursing/STIF account and funding of
ACH credit file on settlement date
Step 5 – Wachovia Acts on Request
 Executes APA on behalf of the bank
 Establishes file transmission profile for participant
• Performed directly with bank, or
• Performed via CPS
 Setups up required bank accounts
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Assigns a settlement bank account number
Assigns a Returns account (If inbound ACH debit file)
Advises DST of the account numbers
Sets up invoicing – to agency or DST
 Setups Wachovia Connection for participant
• OSC established as administrator; or
• Agency established as own administrator
Step 6a – CPS Involvement
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If the Common Payment Service (CPS) gateway is to be
utilized, participant should follow the steps outlined in
the CPS Agency Work Plan Template
Participant conducts a Security Risk Assessment (SRA)
for the proposed Agency application
Participant submits the SRA to the Office of
Information Technologies Services (ITS) as part of the
technical architecture review requirements
ITS will advise of the approval of the SRA and arrange
for testing
Agency develops its application, including interface(s)
to CPS, and request ACH Profile set-up in the CPS test
environment
Agency documents test results and proceeds to next
steps (Performance Acceptance Testing)
Step 6b – CPS Verification Testing
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At least two weeks prior to an application deployment,
the participant must develop an Acceptance Checklist:
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OSC reviews the checklist and supporting documents
and approves deployment if no issues
Participant migrates application into production, and
conducts “production verification” test
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Test Plan / Script
Security Risk Assessment (SRA)
Internal Agency Policies and Procedures
Using a limited number of live transactions for at least two
weeks
Verify settlement of funds into bank account
If production verification is adequate, participant opens
(announces) the service to the public (if Internet
application)
Step 7 – Establish Fiscal Procedures
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Complete Internal Policies & Procedures Template
Develop Fiscal Office procedures
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For outbound – Procedures for funding the settlement
account
For inbound – Procedures for reporting receipt of funds
Procedures for obtaining “ACH Authorizations” from
payees / payors
Procedures for “ACH returns”
Procedures for reconciling settlement bank account
Verify connectivity to Wachovia Connection to access
settlement account
If State agency, update Cash Management Plan
Enrollment Documents
Master Services Agreement
(MSA)
Agency Participation Agreement
(APA)
EFT Participant Setup Form
Internal Policies & Procedures
CPS Security Risk Assessment
(SRA)
Agency
More Information
Office of the State Controller Web Site
www.ncosc.net
David C. Reavis
E-Commerce Manager
(919) 871-6483
Amber Young
Central Compliance Manager
(919) 981-5481
Support Services Center
(919) 875-HELP (4357)
October 1, 2005 (Rev. 10/06)
Statewide Electronic Commerce Program (SECP)