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CRIS Court Registry Investment System PDF
CRIS Court Registry Investment System PDF
The offeror is requested to use the following information and instructions to generate several sample
reports which must be included as part of the response to this RFP. These reports will be judged for
quality and completeness in evaluating responses.
I. Lia.uiditvFund
Assume the individual case balances with the Liquidity Fund as follows below. There are two
participating courts, X and Y. The balances are as of September 25, 2005. Registry fee is 10%
unless otherwise noted.
Court X
Court Y
Task 1: Apply the anticipated earnings to be realized on October 2, 2005, calculate the
appropriate registry fee, update the period tracking fields for the registry fee and earnings, and
generate a "Case Allocation Report" and an "Asset Report, " following the requirements included
in section C.5. Provide both a hard copy of the reports and an electronic report file as specified in
Section C. Offeror may include a second electronicreport file for any alternativerecommendation.
Next, assume that on October 1 you receive the following information fi-om courts X and Y.
Court X activity:
Deposit of $5,400,000.00 in principal for case number 4:88-CV-12345.
Deposit of $1,000,000.00 in principal for case number 4:92-CV-4485.
Court Y activity:
Withdraw $2,000,000.00 in principal and $237,259.10 in interest from case number
5:81-BK-33054.
Deposit of $500,000.00 in principal to case number 4:93-BK-43012. (new case)
Task 2: Generate the October 9 "Asset Report" and "Case Allocation Report". To do this you
must calculate the amount of funds availableto invest on October 2nd to purchase a T-Bill maturing
on October 23,2005. Any remaining funds will be held at the U.S. Treasury as uninvestable. The
following formula is used to calculate the amount available to invest:
(-) Disbursements
(-) Registry Fee
(+) Uninvestable at Treasury
(=) Amount to invest on October 2
Provide both a hard copy of the reports and an electronic report file as specified in Section C.
Offeror may include a second electronic report file for any alternative recommendation.
Task 3: Prepare a quarterly report as of September 30,2005 detailing the CRIS balance by
court, by case type, and with the grand total for each participating court as required in C.5.6.
Provide both a hard copy of the report and an electronic report file as specified in Section C.
Offeror may include a third electronic report file for any alternative recommendation.
Assume the following deposit is received on July 28th,2004 for the following case:
Task 1: Establish an alternative fund portfolio using the deposit. The fund invests in U.S. Treasury
STRIP securities and U.S. Treasury Bill securities. The investment parameters of the alternative
fund portfolio are an average holding period of 1 year, with semi-annual maturities. Assume
securities are purchased at the following prices/quotes on July 29th,2004:
Prepare an "Asset Report", "Case Allocation Report" and "Amortization Schedule" for 713 1/04,
following the requirements included in section C.5 & C.6. A Registry Fee of 9% of earnings must
be deducted from earnings and accounted for. All earnings are to be applied on a straight line
5.2 DATA AND INSTRUCTIONS FOR PREPARING MOCK FINANCIAL REPORTS
accrual accounting basis. Provide both a hard copy of the report and an electronic report file as
specified in Section C. Offeror may include a second electronic report file for any alternative
recommendation.
Any uninvestable cash remaining after the initial investment shall remain on deposit in our Treasury
Account and will be carried over as a portion of investable cash for the semi-annual maturity.
3 102-CV-00082 $10,000,000.00
To raise cash:
Sell Securities
Task 2: Prepare the necessary reports for the principal withdrawal on 8/16/04:
1. Prepare a report that brings earnings current to 8115/04, the day before the principal withdrawal.
A registry fee of 9% of earnings must be reflected in the report.
Provide both a hard copy of the reports and an electronic report file as specified in Section C.
Offeror may include a second electronic report file for any alternative recommendation.
2. All earnings are to be applied on a straight line accrual accounting basis. Prepare the month end
report that reflects the withdrawal activity, registry fee, as well as any capital gain or loss.
5.3 QUESTIONNAIRE FOR OFFERORS
Offerors are required to complete and attach this questionnaire as a cover page to their proposals.
Proposals will be accepted from offerors who are designated depositaries under the requirements
set forth in 3 1 CFR Part 202 or are brokersldealers registered with the Securities and Exchange
Commission (SEC) and subject to the supervision and regulation of the NASD and the SEC: (I)
that have effective management programs designed to monitor compliance with all standards and
guidelines set forth by the applicable supervisory or regulatory body; (2) that meet the capital
standards required by the Federal Reserve Bank of New York for accepting new primary dealers,
as set forth on January 22,1992; and (3) with an average weekly volume of U.S. Government
securities transactions of at least $50 million.
Name of organization:
Address:
Type of organization:
Title:
Phone Number:
Throughout t h s RFP several terms are used frequently. In the following paragraphs we provide
a brief listing of these terms and their meaning within the context of the RFP.
Allocation Report -- The contractor delivers to all participating courts, two days prior to the
next settlement date, a report reflecting the allocation of earnings to the case assets invested on
the previous settlement date. The contractor shall deliver to the CRIS Fund Manager a List of
Assets, showing both the source of earnings on the next settlement date and an allocation report
for the next settlement date two days prior to the next allocation report.
CRIS -- The Court Registry Investment System (CRIS) is a cash management system used by the
Judiciary to manage funds that are temporarily deposited with a federal court whle a dispute is
resolved. CRIS, which is currently administered by the Clerk of the Texas Southern, is
characterized by the pooling of funds from individual cases to purchase Treasury notes and bills
which are held to maturity. The smooth operation of CRIS requires a contractor to perform
several tasks.
CRIS Eligible investments -- The contractor must annually prepare a list of investments that are
eligible for inclusion in the CRIS portfolio. The list must be consistent with the CRIS
investment strategy and must reflect the contractor's best professional advice about the
investment instruments that will most effectively accomplish the established objectives for the
CRIS system. The list must be approved by the CRIS Fund Manager. Currently, the only
eligible investments are Treasury securities.
CRIS Investment Strategy -- This is a strategy to be developed by the contractor and approved
by the CRIS Fund Manager yearly. The objective is to provide a guide for the individual
investment decisions for the CRIS system. The strategy must reflect the best professional advice
of the contractor on managing the CRIS portfolio to achieve the established objectives for the
CRIS process.
Contractor -- For the purposes of this RFP the contractor is the organization with the financial
and management capacity to -- in accordance with the requirements and specifications set forth in
section C - develop a CRIS Investment Strategy, buy and sell securities, provide for the
maintenance of case records, and manage and perform controlled disbursement functions.
Registry Funds -- U.S. courts often require one or both of the parties to a dispute to deposit
funds with the court while the litigation is resolved. These funds are known collectively as
registry funds. The clerk of the court with whom the funds are deposited is required to
administer
a cash management system to assure the safe keeping of the funds. The clerk has fiduciary
responsibility for all funds in the registry. Nationally, the total amount of funds in the registry on
any given day will normally total more than a billion dollars.
ATTACHMENT 5.4- GLOSSARY OF TERMS
CRIS Fund Managers -- All investment and management decisions associated with the
operation of CRIS shall be the responsibility of the CRIS Fund Manager, currently the Clerk of
Texas Southern. T h ~ Clerk
s has been designated the CRIS Fund Manager by the Chief Judge of
that court. The CRIS Fund Manager may designate a CRIS Program Administrator as necessary.
The CRIS Fund Manager is not authorized to modify the terms and conditions of this contract.
The government reserves the right to replace the CRIS Fund Manager at any time without
affecting the contractor's responsibility to perform under the terms of the contract, nor resulting
in any extra compensation owed to the contractor.
Transaction Date -- The transaction date is normally Thursday of each week. It is the day upon
which the CRIS Fund Manager, with the advice of the contractor, makes investment decisions
and notifies the contractor of those decisions.
Settlement Date -- This settlement date, normally Thursday of each week, is the date the
selected securities are delivered to the CRIS account by the contractor.
Court Reglstry investment.System(CRIS)
July 2003
Court Registry Investment System.(CRIS)
Court order
,I Notlce of deposit
e"'
~liglbleto transfer tiansfeR
e) ngle depo
lion or m
I
~dmlnishtionof
$50 million or mom
deposlt
4
k
I
PrepareA 0 290
(Elm-A
worksheet) '
1 PrepareA 0 283 Prepare fax cover
.A End of process
I A worksheet)
A0290(wm I
Court Registry Funds are tmnsferred'into CRiS not by bending checks or wlms of
cash, but rather by transferring the accountablllty for the funds between Treasury
Forward for
account symbols.
approml .
court
No
-
f \
., , .. Weekly.CRIS
End of momh Approved?
report
, [ Court and A0
control point
\ J
Yes
+
Update accounting
Fax and Mail A 0
Subrnlt A 0 274 to
Prepare monthly system to retlect
283 and A 0 290
A 0 274 to reflect 4 File copies transfer of 4 Sign forms 4-
A0 to CRiS
.transfen accountability
I.I I I
from cwrt to CRlS
I
(Wednesday)
u
'The A 0 290 is a forri~containing
case details and associated f e e . Accountablllty of
A 0 274 funds transferred
. .
to CRIS
3
2I?.
a
Court Registry Investment System (CRIS)
llstlng an CRlS
account
J
Post registry fee .
Preparejournal from CRlS mastet
voucher (A0 283 .
in CFS-1) '
b clearing account
Into mglsfry fee
.
' Update CRlS
spreadsheet
account In.CFS.1
spreadsheet with
reglstry fee and
prior week m8
reglstry fee
account
July 2003
Court Registry Investment system (CRIS)
-
-
JP Morgan W"rt
llsnngan CRlS
securlttes
CRIS
CRIS'
report
m U wbill n*s
sheet
Treasury bill offer
sheet
FaxfromCRlS
containing tqtal
-FRB control palnt
(versus-payment -
JP Morgan is paid by .
FRB AFTER buying
funds to invest. securities)
requlrernents
Total funds to
invest
. Debit voucher
Resolve problem The FRB prepares
'
a debit voucher
Deblt voucher for transaction
securities and
- 7
updateCRlS Set up account in Post debit voucher CRlS econdles
sfbadsheet
(securftles +- CFS-1 for each . in CFSl to CRlS .-
debit voucher with CneFRB-thetThe~RBmthe
purchased carry CRlS transadion CRlS to
deblt voucher deblt voucher
f o m r d balance) documentation doarmentatJon
t
UpdetsCRlS RecandeCRlS .
spreadsheet wlth spreadsheet with
each court's
infamatton' .
July 2003
court ÿ egis try Investme
JP Morgan report
Treasuryblll bid
sheet r l Sell prlce
f +
. . CRJS faxes sell CRIS provides the The FRB forwards
CRlS determines
cash needed. ,
.
'
CRlS cantacts JP
Mwan to sell
secufitles
, , JP Morgan
&latlates number
of securitles.to .
sen
CRlS mcelveS sell
prim h m JP
Morgan
hfomatlon to the
FRB (collateral
unit)
FRBqsoff-line
transfer unit with
sell Infomation
sell information to
CRlS for
confirrnatlon
1
CRlS mwndles
the voucher with
CR~St m n s a h n
documentation
A A
7
The FRB faxes the
voucher to CRlS
+
The FRB posts the
voucher
,a
The FRB prepares
voucher
, The FRB sells
securities to cover
amount needed
- The FR8 signs
secudtles
description
Correct?
II
Yes
.
I securities and I
Resolve problem'
r+ - 0 Resolve problem
rrl Cancel sale
I+ +.
the
CRls ~Mtla~s CRIS posts the'
CRlS Recandle CRlS
Receives
voucher and sell
lransactlon
voucher in CFS-1
toCRISrnaster * Proceeds
From Matured
spreadsheet with
weekly CRlS
Recanclle?
documentation clearlng account . repod
Securltles
July 2003.
Court Registry Investment,System (CRIS) ..
'
1
Recondle case'.
balances with
es+
Post Interest
received from
Update accountlng
system to reflect
transfer of File coples
u End of month
Prepare monthly
t A 0 274 to retlect
accounting CplS ac,un,,ng accountablllty
. transfer
system . ,
srstem from CRIS to coilrt
4 I 1
Fl
, '
1. Resolve problem
Accountability of
Funds transferred
f m CRIS
CJ ' End of process
July 2003
Court ÿ egis try lnvestment System (CRIS)
, .
Court order
A 0 290s (Element
Unclaimed funds
Court order to for tne controlled
close account disbursment
account
t
Confirmthat Transfers
Set up controlled
dlsbursernent y Of Funds
funds?
a w u n t in CFS-I amount disbursed
undalmed funds Badr To
disbursement
back at orfginatlng
court unit
disbursement
aceaunt in CFS-1
' Controlled disbuts.ernentsare used in cases with large numbers of payees; e.g., a class action suit
~ith thousands of parties to the suit. A 3rd party bank enters Into an agreement 'to provide disbursing functions.
br the court. As drafts (checks) clear, funds'are ,bnsfened to cover the amounts.
July 2003
Court Registry Investment System (CRIS)
Investment deblt
vouchers 1 Deblt vouchers
from&eFRB I ReoWy F- I
'
Weekly CRlS
deposits
i
Calculate the Compare weekly Add the total CRlS
weekly Treasury
balanm In the
Treasury balance
to CRIS master Yes-+
Add the CRlS
securltles to the
Treasury balance
'. 'balance to the
weekly CRlS
CRlS spreadsheet . account In CFS-1 report
t
.Weekly Treasury
balance report with new
FRB fee'
* The new FRB fee becomes the prior week's FRB for next week's deblt "oucher.
July 2003
Court ~eglstryInvestment System (CRIS) ,
. .
.
Add prlor month
.. Add ail lnmmlng Subbact all Add interest from Subtract out prior
CFS-1 CRlS
balance and
depaslt tlcke@for
Subtract all CRlS
deblt vouchers
' 283s A0 (for
' investmenb In
'~ W n g
(for
A 0 283s
withdrawals
nonCRlS
irwesbnenEsH
month A 0 283 for
tlor+CFUS ,
. Add in TXS
investments in
Subtract checks
for partlclpatino
bankruptcy courts
the month CRIS) from CRIS) (memo entry) Investments
CRlS spreadsheet
Current month
Treasury balance
Yes
I - .
v 4
Lag FRB fee Subbar3 ECS Current month
Treasury balance
Payments
* The CRlS monthly reconciliationreconciles CFS-1 with CRlS investments, and the CRlS spreadsheet.
1. Tax-Reporting Database: The contractor keeps a database of payee names, addresses, tax
identification numbers, and earnings disbursed for 1099 and other tax reporting purposes.
The participating courts provide this information to the contractor.
2. Periodic Reports: The contractor provides the following hard copy reports for each
portfolio:
o Case Allocation Report. Total case balances at the end of each trading cycle (to be
provided weekly).
o Asset Report. Total security holdings at the end of each trading cycle (to be provided
weekly).
o Quarterly Report Of Cases Applying < 10% Registry Fee. A quarterly report listing
each case applying a registry fee less than 10%; the actual fee should be listed
along with a reason code.
o Quarterly Case Allocation Summary Report. Summary balances for each court
participant at the end of each calendar quarter.
o Fiscal Year End Detailed Transaction Report. A list of each purchase and
redemption transaction providing the security CUSP and description, par amount,
price, trade date, discount/premium, gaidloss, and net cost/proceeds.
o 1099s. For qualifying cases, 1099-INT will be prepared and mailed to recipients and
applicable information will be fumished to the IRS.
The Alternative Fund is identical to the Liquidity Fund, except that it does not follow a
weekly cycle and. its earnings are allocated using the straight line accrual method of
accounting. The Fund requires the reports listed below. The Yield Comparison Report
is to be provided quarterly or upon request. The other reports are to be provided annually
or upon request.
o Case Allocation Report. Total case balances at the end of each month and the day
5.5.2 Description of Other Processes and Alternative Fund Process
o Asset Report. Total security holdings at the end of each month or one day prior to any
activity.
o Quarterly Report Of Cases Applying < 10% Registry Fee: A quarterly report listing
each case applying a registry fee less than 10%; the actual fee should be listed.
o Fiscal Year End Detailed Transaction Report: A list of each purchase and
redemption transaction providing the security CUSIP and description, par amount,
price, trade date, discount/premium, gainlloss, and net cost/proceeds.
o Cash Receipts Summary and Realized Net Interest Income Report: Provides total
cash available for reinvestment.
o Summary Allocation Report: Provides earnings applied from last trade date to the
present.
I=EIN
2=SSN
15 characters Icharacter 9 characters 35 characters 35 characters 35 characters 35 characters 25 characters 2 characters 9 characters 11 characters
Account Number TIN Type TIN SSNlElN Payee Name I Payee Name 2 Address 1 Address 2 City State Zip Code Interest on Treasury Securities
The courts must supply the 1099 information to the contractor because taxable amounts may vary from the disbursements, based on the court order(s).
This, or a similar, spreadsheet shall be sent by the contractor to each CRlS court during the first week of January. The court should complete the
spreadsheet and return it to the contractor.
F- 4.8- Registry Funds Fee Schedule . . . . . . . .
. . .
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. . .Notices . . . . ;
. . . . . . . . . . .
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I .This,d o i r of the.
FEDERAL ~EGISTER . .accounts to a,&ibltj iajikked'qn Ihe -. the:&-at
' W m d o c u d other' than. rules a amount8 deposited with the court and,. .- 'ingtmment mbtures. .....
he.
time thelinvestment--.: -. . -.: :.. .
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pfwsedd e s . that a10 applicable the'. .. hcerteincasesi & . ' ~ ~ : o f t i r i \ e ~ ~ &. . . ~ e f . e r t ~ j f ihe&nFwill,..;-:..:: ed ._: . .
public. Notices ci! hearings and . are held in the courts' registry.- : . -. continueto apply.to any cqse wheie.tbe
1 .
,
.
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inv*tig'tionss meetingss The revised fee will'be a-fee of.10 .' . court has authorized..the investment of ;:.
: . decisions and rulings, delegations ..of '
organization and functions are examples .. investments of less than $100,000,000 of . nature of the underlying.action. .....
ot documents appearing .in this section: registry funds in income-bearing . . . . . . ' .As wi.th other mjsceuaneo* feet+ - -. . "
accounts. On investments exceeding authorized uhder.28 U.S.C. lW3,;1914. .
$100,000,000. the 10 percent fee shall be and ,1930. this fee may be taxed as cost
' ADMINISTRATIVE OFFICE FUN^^^ reduced by one percent for each . . . . by the court pursuint to i a U;S.C. 19W.
I_ STATESCOURTS . increment of $50,00Op00 over,& initial. In cases whew the United States ':-..
Govement.m:'aparty 20 .the.actla-... ...' , .
:%....
. . . .
. . . : . : . . . . . . ; . .. .
, . .I: $ 1 0 0 , ~ 0 0 0.For
. those deposits .where
-Feesendc0'6:ts. . . . . . .. .. .. .
: funds are.placed @ the registry-by.wwt . underlying the registry investment-the ..-
. . . . . . . ._. . ._:: .. . . _
:I . *c'~cG~dmi&s"tive order for a time ck,rt~h'.forexample.. by -funds'initidly.withheliihpaymenl of .':,.
:
'
1. .:
'
' m o w ~otimofcha4P'i!.me@d of- reduction will amouqt,fri2.5 percent for- court by the United States Attorney @ ,
i '
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The total minimum fee to be charged The fee does not apply.in theDistrict
pqvisio* published @.theFederal '
fee,ass&meht will be nb less .tJuqtwo pe+nt 0 f . h . .;. Court of Guam, the Northern Mariana: . '
,
;
,
\ . R e g i d o@ober'%4,l990 (55 FR il2867): -incomeon.investmen&I.. . - . . . . . . . . ' Islands, the Virgin Island& the Unittjd.'.:.'. ; .
~,","$;y..;~nxy&&~~~;
eainea.while funds ark held in 'the .
,
s i -~. . ~.. - .r ~
P. .~. ~. ~
$ : z : -~ ' ,, ~~~~a~~!$~ $ ~ h ~
a und&~ &e statutes2ci&d.&ve;.
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. . to be charged and.wllect& by&?.. .-.:. This new methobofas~ssment - -. AGENC: Fd- s~~~~A,.usDA.
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clerks of court, the Judi~ialConference recognize'sthe decreasing cost of . . environmental impact.statement. . . . . . .
of the United States in.Septernber.19~a. administering investment holdings over
. . authorized the Director of the time and also takes into account S ~ M A R V :The Forest service wjll
Administrative Office to impose a fee reduced administrative costs associated. prepare an environmental impact . ,
not exceeding three percent of the ,with.large investment holdings. statement PSI on a.proposal to harvest ' '
principal for the handling of registry - The new fee applies to all earnings and regenerate timber, to construct and
funds heldin the courts and invested in applied to.investments on and after the reconstruct mads. to enhapce wildlife
interest-bearing accounts. The fee is to effective date of this change, except for habitat, to enhance recrea.tiona1 . . . . .
be assessed from and may not exceed earnings on investments.in cases being crpportt@ties, a n d b balyze emerging .
interest earnings. The Director was.also. . administered under the provisions of the forest health problems in ,the.area.The ..
instructed to *view implementation of May 11,1989notice (54 FR U)rM;I), i.e., to proposed projects will be in'compliance
the fee and make adjustments
. . .
fmm time which the fee equal to the first 45 days' with the Colville NationalForest Land :-.
b .time. . income is applicablei.Thefee will be - and Resokce Management Plan, whiih.
As a.result of accmtinuing review of i.. deducted periodically,.either at the time provides the overall guid+.loe, for . . . . . . .. . .
.I .; ........
. . . . . . .
. ..
1'!
.and'consu!tation'on the impqsiticui of
.
.
income is credited to the account or .
thd.feithe Director has'decided that ee.. prior to any. other dist@butian
fee will be'revised fnjm a.10-percent . .: . Investme.nts.h.~uinga mabrjty date.
We on~allinkbme'eafn~ion th'e.::':":'. ':"- - 'peiter than'&jeyt+
.. d1.'be
. . .
assessed
. . .
management .ofthis area for'the next 40
yeagi The projects ere pmposedwithin:.
. . portions of..ththe2~~th,,Eo~k
. . . Q e e k . W ' e i :hcluilj*
. . . . .-
Bo:ulder ::. : . : .
theuC+:-:a. .
. .
-
'
J.9 Other Sample Reports
PRINCIPAL
Beginning Balance
rans sf erred In
Transferred Out
Period Change
.Ending Principal Balance
EARNINGS
Beginning Balance
i j Transferred In
.....
Allocations
Transferred Out
Period Change
Ending Earnings Balance
PRINCIPAL
Beginning Balance
Transferred In
Transferred Out
Period Change
Ending Principal Balance
EARNINGS
... Beginning Balance
Transferred In
( .)
.
Allocations
Transferred Out
Period Change
Ending Earnings Balance
ENDING BALANCE