1. 1 CA$HLINK II Shutdown 12-31-2012: Preparing Financial Institutions for OTCnet, TCMS, and BMS Financial Management Service U.S. Department of the Treasury November 2012

2. 22 This Webinar will be recorded for quality purposes Maximize your meeting window to optimize the presentation, if needed Presentation Slides  Will be posted at fms.treas.gov/ccmm Questions-and-Answers  We will not be responding to individual questions during the presentations  Please use the “Q&A” section on your Webinar screen, or e-mail us directly at CCMM@fms.treas.gov during the Webinar  Questions will be answered at the end of the presentation, as time permits  Answers to questions not answered during today’s Webinar will be posted within two weeks at: fms.treas.gov/ccmm Technical Assistance  WebEx assistance is available by calling 1-866-229-3239 Housekeeping

3. 33 Mary Bailey Director, Bank Policy and Oversight Division Introduction

4. 44 Collections and Cash Management Modernization Initiative Decommissioning of CA$HLINK II Over the Counter Channel Application Conversion and Implementation Adjustments, Corrections, and Rescissions Treasury Cash Management System (Cash Concentration) Bank Management Service (Bank Compensation) Agenda

5. 55 Corvelli McDaniel Deputy Assistant Commissioner, Collections and Deposits Group Introduction

6. 66 CCMM Initiative ends on December 31, 2012 CCMM optimization and fine tuning Converted 69 agencies from the Paper Check Conversion Over the Counter System (PCC OTC) to OTCnet Converted 179 agencies from CA$HLINK II to the Transaction Reporting System (TRS) Converted 81 agencies from CA$HLINK II to OTCnet (deposit reporting) Converted 90 TGA and International TGA banks from CA$HLINK II to OTCnet (deposit reporting) Established a new Credit Gateway Established a new Debit Gateway Major training, agency outreach and communications effort (WBTs, Webinars, agency user groups, newsletters, CFO agency meetings, system demos, etc.) Robust, end-state architecture – built to last Collections and Cash Management Modernization (CCMM) – No Turning Back

7. 77 FMS will be characterized by three real and recognized qualities in everything we do: Exceptional Integrity Exceptional Quality Exceptional Responsiveness Vision

8. 88 Security Controls (including the protection of Personally Identifiable Information) Fraud Detection One Voice agency outreach and communications model Customer Satisfaction On Our Mind

9. 99 Reginald McKinney Business Lead, Over the Counter Division Over the Counter Channel Application (OTCnet)

10. 10 Important Dates October 27, 2012: Adjustments, Corrections, and Rescissions (ACRs) functionality in CA$HLINK II associated with deposit amounts, voucher dates, voucher number, and ALC was turned off. All of the prior CA$HLINK II ACR activity for TGA / ITGA activity is now performed by OTCnet Customer service through TRS December 31, 2012: CA$HLINK II will be deactivated and no longer available to financial institutions December 31, 2012: Deposit Reporting for TGA and International TGA bank deposits can no longer be done in CA$HLINK II. Agencies must use OTCnet for Deposit Reporting Over the Counter Channel Application (OTCnet)

11. 11 All agencies should have completed their conversion to OTCnet by October 31, 2012 for manual deposits made through CA$HLINK II Every location within the agency for all ALCs will no longer be able to use paper SF 215s after December 31, 2012 Once converted to OTCnet, agencies must stop preparing paper SF 215s Key Messages Communicated to Agencies for OTCnet

12. 12 All FIs must be on OTCnet to confirm deposits received from agencies with an OTCnet deposit voucher to include all branches and offices that process SF 215 and 5515s FIs will not enter voucher information into CA$HLINK II if agency has an OTCnet deposit voucher FIs will proactively monitor agencies deposits looking for paper SF 215s and contact Maurice Alston (maurice.alston@fms.treas.gov / 202-874-1275) with agency information if they receive a paper SF 215 deposit voucher between now and December 31, 2012 FIs executive contacts will disseminate all information related to OTCnet conversion and CA$HINK II shutdown to all relevant bank personnel FMS will provide instructions on how FIs should process after December 31, 2012 if they receive a deposit with a paper SF 215 and not an electronic OTCnet deposit voucher Important Messages to Financial Institutions (“FIs”) with Over the Counter Collections Activity

13. 13 Effective October 27, 2012: Agencies, TGA and ITGA banks and specialized lockbox banks will contact OTCnet customer support to request an Adjustment, Correction, or Rescission (ACR) that was previously performed in CA$HLINK II for over the counter deposits made in OTCnet or CA$HLINK II The new process will require the authorized individual from the bank or agency to complete an ACR form and submit by e-mail to the OTCnet Customer Support Team Upon receipt of the request, the OTCnet Customer Support Team will perform the ACR, on behalf of the bank or agency, within the TRS application Bank or agency will receive e-mail notification that the ACR was processed successfully TGA and ITGA banks will continue to perform most voucher amount adjustment within OTCnet All ACR voucher information will be available for agency access in TRS FMS provided written communication with detailed procedures for agencies and banks on October 22, 2012 (high level) and October 26, 2012 (detailed level) Adjustments, Corrections, and Rescissions (ACRs)

14. 14 June 2008: Webinar for TGA / ITGA banks June 22, 2010: Letter to all TGA/ ITGA FIs from Corvelli McDaniel July 5, 2012: Letter to all TGA / ITGA FIs from David Metler, Director – OTC Revenue Collection Division October 3, 2012: E-mail to all TGA / ITGA FIs from Deborah Pearson, Program Manager - Treasury General Account October 22, 2012: Letter to all TGA / ITGA, Lockbox FIs from Corvelli McDaniel October 31, 2012: E-mail from OTCnet Channel with Ca$HLINK II decommissioning information November 8, 2012: E-mail from OTCnet Channel- detailed ACR procedures November 2012: CCMM Webinar for FIs (re-scheduled from October 30, 2012) November 15, 2012: Planned e-mail from OTCnet team December 19, 2012: Planned e-mail from OTCnet team FI Communications

15. 15 OTCnet Agency Conversion Progress 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Updated 10/26/2012 CA$HLINK Conversions Complete 91% 74 of 81 agencies complete

16. 16 OTCnet Financial Institution Conversion Progress TGA/ITGA Financial Institution Conversions Complete 100% 86 of 86 FIs complete 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Updated 10/26/2012

17. 17 Financial Institution Next Steps  Continue partnership with FMS to support CA$HLINK II decommissioning and agency conversion to OTCnet  Immediately ensure your bank can and is confirming agencies’ deposits using OTCnet  Ensure your bank is not entering an OTCnet deposit into CA$HLINK II if agency provides an OTCnet deposit voucher  Proactively monitor and notify FMS if bank receives a paper SF 215 deposit voucher from agency between now and December 31, 2012  FI must become familiar with the new process for performing ACRs  Expect to receive direction on how to handle deposits with a paper SF 215 from agencies after December 31, 2012 Over the Counter Channel Application (OTCnet)

18. 18 Charlie Dixon Program Manager, Treasury Cash Management System Treasury Cash Management System (TCMS)

19. 19 Treasury Cash Management System (TCMS) CA$HLINK II Cash Concentration FI Monthly BMI Reports OTCnetCARS/BMS TCMS Deposit Reporting

20. 20 Treasury Cash Management System (TCMS) What is Cash Concentration? The daily movement of government deposits from the Treasury’s accounts at commercial financial institutions (FIs) to the Treasury General Account (TGA) at FRB New York. What is the Treasury Cash Management System? A new application that will assume cash concentration functionality when CA$HLINK II is decommissioned Utilizes the FRB’s National Settlement Service (NSS) for all transfers in place of CA$HLINK II’s ACH and Fedwires Transmits daily settlement reports to FIs Operated by our fiscal agent, FRB Boston

21. 21 Treasury Cash Management System (TCMS) Changes in Transfers ACH vs. NSS Current CA$HLINK II ACH Transfers  Include a Demand Deposit Account (DDA) number  Post to the TGA DDA at the FI TCMS NSS Transfers  Do not include a Demand Deposit Account (DDA) number  Post to the FI’s reserve account at the FRB  FIs will need to tie the NSS entry to the TGA DDA  Manual entries  Automated entries using the FRB’s Financial Institution Reconcilement Data (FIRD) file imported into FI’s back end system  FIs that receive the FIRD file and are already in another NSS arrangement can contact TCMS if they would like to test  FIs that receive the FIRD file but are not already in another NSS arrangement need to contact TCMS. You have to map the NSS tran code into your system

22. 22 Treasury Cash Management System (TCMS) When Will TCMS Transfers Begin? Last manual vouchers entered into CA$HLINK II 12/31/2012 CA$HLINK II continues to process ACH & Fedwire transfers through 1/04/2013 TCMS receives first voucher transaction files 1/05/2013 (Saturday) First expedited (same day) TCMS NSS transfer 1/07/2013 (Monday) First non-expedited (next business day) TCMS NSS transfer 1/08/2013 (Tuesday) What Will FIs See When TCMS Goes Live? TCMS NSS transfers will appear on FI's FRB Account Statement FIs will begin receiving TCMS Settlement Statements via FedMail ®

23. 23 Treasury Cash Management System (TCMS) FI Reconcilement of TCMS NSS Entries Source System Reports  Example: OTCnet Deposit Activity (FI) Report TCMS NSS Entries on the FI's Reserve Account Statement  Accessed via FedLine ® Account Management Information (AMI)  Appear under transaction code 11100 Nat Net Settlement  Entries include the TCMS Arrangement ABA 0210-5285-9  Entries reflect the Reference Information Field value that FIs defined for each CA$HLINK Account Number (CAN) on their TCMS Profile Setup Form TCMS Settlement Statement  PDF report sent at end of day to FIs via FedMail ®  Provides voucher level detail for the net NSS entries from TCMS

24. 24 Treasury Cash Management System (TCMS) FI Reconcilement: Reserve Statement – Subaccount Activity

25. 25 Treasury Cash Management System (TCMS) FI Reconcilement: TCMS Statement – Subaccount Activity

26. 26 Treasury Cash Management System (TCMS) FI Reconcilement: Reserve Statement – Own Activity

27. 27 Treasury Cash Management System (TCMS) FI Reconcilement: TCMS Statement – Own Activity

28. 28 Treasury Cash Management System (TCMS) TCMS Customer Service When to Contact TCMS Assistance with changes to TCMS or NSS setup documents Questions regarding past NSS transfers Questions regarding past CA$HLINK II ACH & Fedwire transfers TCMS to maintain database of all CA$HLINK II transfers FIs submit request and TCMS staff will deliver query results TCMS Contacts E-mail: BOS.TCMS.Operations.Group@bos.frb.org Phone: 855-677-TCMS (8267)

29. 29 The Next 60 Days: Are You Ready?  FIs establish internal procedures to process TCMS NSS entries  If necessary, add recipients for TCMS Settlement Statements via FedMail ® O October D December November Checklist To Complete Before December 31, 2012 LAST DEPOSIT

30. 30 Leo Warring Project Manager, Bank Management Service CARS/Bank Management Service (CARS/BMS)

31. 31 Bank Management Service (BMS) is a module of the Federal Reserve’s Customer Accounts Receivables System (CARS) CARS/BMS is a centralized, secure Web-based application CARS/BMS is the vehicle used by financial institutions for reporting volumes/expenses, and by FMS in analyzing and reimbursing CARS/Bank Management Service About

32. 32 Browser-based access via a user interface Internet Explorer® (IE) 7.0, or higher Set to enable pop-ups Adobe® Flash Movie Player, a plug-in, version 10.1.102.64 or higher Best viewed with a 1024x768 resolution Use a security token and passphrase to access CARS/BMS CARS/Bank Management Service System Requirements

33. 33 Financial Institutions (FIs) Provides services to the federal government Reports monthly service volumes/expenses Federal Reserve Bank Distributes Tokens/Soft-Certificates Provides assistance to FIs through Billing, Central Business Administration Function (CBAF), Atlanta FMS Establishes and manages banking relationships on behalf of the Agency Establishes and maintains services and prices Analyzes, reviews and approves monthly expenses Compensates banks CARS/Bank Management Service Players

34. 34 CONVERSION FROM CA$HLINK II TO CARS/BMS WILL INTRODUCE THE FOLLOWING BENEFITS IN BANK MANAGEMENT FUNCTIONALITY Monthly reporting deadline will change from the tenth calendar day to the seventh business day of the month FIs will be able to report expenses through the use of an Excel spreadsheet or manually report Once the reimbursement/payment to the FI is fully approved by FMS, the FI will receive an email notification of the impending payment. TGA banks will be paid sooner than the current process, i.e. payment will be received on or by the last business day of the month immediately following the service/billing month CARS/Bank Management Service Changes and Benefits

35. 35 CARS/Bank Management Service Bank Management Timeline 1 st Business Day 7 th Business Day (9 PM EST Cut-off) FI Reporting Account Analysis Payments 3 Business Days BEM (11 AM EST) Last Business Day FI Receives ACH Credit

36. 36 Reporting Bank Management Information (BMI) (i.e., expenses) within the first 7 business days of a month Two reporting options: Manual Entry Upload Excel Template System generated template populated with agreed upon codes E-mailed to requestor Timely, accurate and consistent reporting is a fundamental requirement For CARS/BMS technical problems in reporting - Contact FRB, Atlanta help desk on 404-273-3685 or at Billing.CBAF@atl.frb.org CARS/Bank Management Service FI Reporting

37. 37 Official Authorization Listing (OAL) End User Authorization Contact (EUAC) – Must submit a form to the FRB for each user in order to gain access to CARS/BMS Bank Relationship Officer/FMS Primary Contact – Must identify the bank’s User Profile Requesters (UPRs) and EFT data to the FRB User Profile Requester (UPR) – Sets up all users in CARS/BMS with appropriate roles, functions and data permissions in CARS/BMS CARS/Bank Management Service Key Players in Credential Process

38. 38 By November 1, 2012 – End User Authorization Contacts (EUACs) must submit a form to the FRB for each CARS/BMS user in order to gain access to CARS/BMS. Email letters were distributed in October to initiate this process. EUACs were instructed to reach out to Relationship officers/FMS primary contacts. The Bank Relationship Officer (or primary FMS contact) must identify the bank’s User Profile Requesters (UPRs) (at least one) and provide EFT data to the FRB. EFT data is necessary to setup the payment function within CARS/BMS. What is the status of your bank? CARS/Bank Management Service Critical Steps

39. 39 November 1, 2012 All FIs should have identified current or new End User Authorizing Contact (EUAC) All FIs should have identified CARS/BMS users All FIs should have identified User Profile Requestor(s) (UPR) All FIs should have submitted their completed EFT form December 2012 CARS/BMS Credential Notification from FRB CARS/BMS Training/Walkthrough (Dec. 11-12, 2012) January 2013 Final day of reporting expenses in CA$HLINK II – January 10 Users receive CARS/BMS URL CARS/BMS Training/Walkthrough (Jan. 15-16, 2013) February 6-10, 2013 UPRs set-up new users CARS/Bank Management Service Important Dates

40. 40 Questions & Answers CA$HLINK II Shutdown 12-31-2012: Preparing Financial Institutions for OTCnet, TCMS and BMS

41. 41 For additional information, please visit: fms.treas.gov/ccmm or e-mail: ccmm@fms.treas.gov Contacts

42. 42 Appendix: CCMM Acronyms CA$HLINK II Shutdown 12-31-2012: Preparing Financial Institutions for OTCnet, TCMS and BMS

43. 43 CCMM ACRONYMS ACH ALC Automated Clearing House Agency Location Code CCMMCollections and Cash Management Modernization CGACCommon Government-Wide Accounting Classification C-KeyClassification Keys ECPElectronic Check Processing EFTPSElectronic Federal Tax Payment System FBWTFund Balance with Treasury FDSFedwire Deposit System FMSFinancial Management Service FPAFederal Program Agency FRBFederal Reserve Bank GOALS IIGovernment On-line Accounting Link System GWAGovernment-Wide Accounting GWAMPGovernment-Wide Accounting Modernization Program IPACIntra-Governmental Payment and Collection ITGAInternational Treasury General Account (Depositary)

44. 44 CCMM ACRONYMS, continued OTCOver The Counter OTCnetOver The Counter Network PATAXPaper Tax System PCC OTCPaper Check Conversion Over The Counter POSPoint of Sale REXRemittance Express SAMShared Accounting Module TAS/BETCTreasury Account Symbol/Business Event Type Code TCMSTreasury Cash Management System TGATreasury General Account Depositary TGAnetTreasury General Account Deposit Reporting Network TIPTreasury Investment Program TRSTransaction Reporting System TT&LTreasury Tax & Loan (accounts) URLUniform Resource Locator VPNVirtual Private Network WBTWeb-Based Training XMLExtensible Markup Language