CHAPTER 3 Recreational funds - all excess funds used for bonuses and other

other team building activities.

BANKING AND FUND CONCENTRATION PROCEDURES

 Every financial institution with field depository account

FIELD DEPOSITORY BANKING - concentration and collection of
must wire-transfer the available balance to the CBP.
funds from bank.

 DAILY DEPOSITS - daily transaction of cash and checks.

 OVERAGES - surplus/excess funds.

CHAPTER 4
 SHORTAGES - lack of daily deposits.
BANKING AND ARMORED COURIER SOLICITATION AND
SELECTION
MISSING DEPOSITS - errors/discrepancy committed.

- review the standard operating procedure (SOP)

RELATIONSHIP BANKING - also elicits from banks and armored
couriers a long-term commitment to develop innovative
solutions to meet the banking needs.
ORDERING FIELD DEPOSITORY BANKING SUPPLIES:
- mutual agreement between banks, business,
1. Offices w/ eBuy2 Access - one-stop shop/ online transaction enterprise, individuals and non-profit schools.
w/ bank (bank-bank).

2. Offices w/o eBuy2 Access - do not have access to eBuy2 may

place orders by contracting the district office for
assistance.
- all bank deposit tickets and self-inking bank
endorsement/addresses stamps must be ordered
through eBuy2.
Selection Procedures:
1. Selecting a bank for the remittance of receipts from one or
more business establishments.
2. Establishing a field depository demand deposit account at that
bank.

3. Selecting an armored courier to transport bank remittances.

Branch District office Main Branch

FINANCIAL INSTITUTION REQUIREMENTS

It includes commercial banks and thrift institutions(lending,

saving & loan associations)

Supply officer
1. Be federally insured.

NEW BANK OR CONTRACT STATION
The district finance manager must place the initial
deposit-service supply order for a newly opened bank/branches
of bank.
2. Have bank depository services available in the city or
geographic area served by that district. A bank may not
necessarily have a physical presence in the district but may rely
on third-party or correspondent bank vault processors.

STEPS MUST BE COMPLETED:

SELECTING BANKS AND COURIERS
1. The district finance manager must call the deposit ticket
supplier. Activity Party Responsible

2. Next day, the finance manager will use the ff. Information to 1. Gather data Purchase team, including
order deposit ticket or endorsement stamps via eBuy2: Corporate treasury, Area
treasury coordinator &
a. The FEDSTRIP number Accounting services
b. 10 digit unit ID number(6 - office finance number; 4 2. Prepare reference documents Contracting organization &
- SFAP identification number) Corporate treasury
c. Post office name 3. Advertise solicitation Contracting organization
3.Use the ff. Additional info. To order the bank address stamp: 4. Issue solicitation Contracting organization &
a. Bank name Corporate treasury

b. Vault address, including the city, state, ZIP+4. 5. Issue attachment after Contracting organization &
nondisclosure agreement is purchase team
executed.

 No rejection because they always balance it. 6. Submit Proposals (response Financial institutions &
deadline) armored couriers
 Each district approving officer must review this report
and notify the ordering office of any rejected order. 7. Analyze responses Purchase team, Corporate
ttreasury, Area treasury
 coordinator 7. Response guidelines

8. Award recommendations Purchase team 8. Statement of work

9. Award contract Contracting organization 9. Standard depository bank agreement

10. Notify successful offeror(s) Contracting organization
and executed contract Treasurer
11. Develop implementation Contracting organization
plan w/ financial institution and purchase team
armored courier and set
implementation date
12. Hold debriefings w/ Contracting organization
unsuccessful offerors Treasurer
& 10. Standard armored-courier agreement
11. Terms and conditions
&
The individual who sends out the solicitation will compile a list of
all financial institutions to whom it is sent and who have
responded with a completed nondisclosure agreement.
&

13. Organize internal files. Contracting organization & Amending Solicitations

Purchase team
- for clear understanding and clarification

- all changes/ mistake or misleading

PREPARING AND ISSUING SOLICITATIONS

- Only the representative of the contracting officer can amend a
solicitation.

Initiating solicitation process:

 Before the current contract expires, district and Situations:

Headquarters accounting groups and the contracting officer,
1. There are changes in the district’s finance requirements during
together with Corporate Treasury, begin the solicitation
the solicitation period, and these changes are likely to affect the
process.
prices a bank offers.

2. There is a significant error in the solicitation that is likely to

Forming a Solicitation Team confuse or mislead offerors.

 The first step in issuing and evaluating a solicitation is to

form a team to perform the solicitation-process task.
 The team’s size and makeup may vary, depending on the
complexity of the solicitation being issued.
 The team must include representative from Corporate
treasury, Accounting services & Area treasury coordinator.
Example of common errors:
1. Significant typographical and editorial errors - misspelled
word that introduces ambiguity, a missing word that changes the
meaning of a phrase, an extra zero after a dollar amount that
adds an order of magnitude to an estimate.

2. Mechanical errors - missing page or enclosure.

To prepare for the solicitation, the solicitation team should:

1. Review the statement of work, which Corporate Treasury How to amend?(call for special meeting)
Banking and Customer Payments personnel will supply for the
A representative of the contracting officer will send a letter
solicitation.
to all prospective offerors who received the original solicitation
2. Obtain reports on volumes for each account affected by the package describing the change and the reason for it.
solicitation from bank system.

CANCELING A SOLICITATION
Contents of the Solicitation Package:

1. Bank service overview - structural format of a bank service

When to cancel?
2. District map and finance office address - signage
- When it is obsolete.
3. Functional requirements - evaluation of performance
- The requirements have change so much that the current
4. Mandatory requirements - compulsary requirements solicitation is no longer usable and so a new one must be
developed.
5. Nondisclosure agreement - secrecy of the business

6. Projected monthly service pricing template - service fees &

other fees. - Only a representative of the contracting officer may cancel a
solicitation.
a. Collateral policy

b. After the nondisclosure agreement is executed, include

the attachments: PUBLISHING ADVERTISEMENT

 Monthly account volumes

 Armored-courier pick-up points Schedule

 A representative of the contracting officer will notify
potential offerors of solicitations for bank service field
depository bank accounts by advertising them in trade
publication.
 Notice must be published twice.
Fees
- representative of the contracting officer pays the advertising
fees.
Content of Public Notice:
1. Announcement that the bank service is accepting offers from
Philippine government-insured financial institutions to maintain
a bank accounts.
2. Closing time and date for the solicitation.
3. Name, address and telephone number of the bank service
employee from whom further information or a copy of the
solicitation may be obtained and to whom proposals should be
submitted.
Notifying Relationship Banks and Armored Couriers
 A representative of the contracting officer notifies, by letter
or electronically, all current relationship bank and armored
couriers of the solicitation.
Conducting a Pre-proposal Conference
Pre-proposal Conference - optional for all bank-account
solicitations.
- provides a forum for clarifying any ambiguity in
the solicitation and helps reduce potential problems in
the process.
RISK ANALYSIS - method of determining the financial health of a
bank or an armored courier whose services the bank service
engage.
- identifying and analyzing possible problem that may
occur to have an alternative/solution in order to meet
obligations.
1. Credit Risk - potential loss that a bank borrower will fail
to meet obligation in accordance to agreed terms.
2. Market Risk - risk of losses in the bank trading book due
to changes in interest rates, foreign exchange rates, and
commodity prices. (interest risk, equity risk, currency risk,
commodity risk)
3. Operational Risk - change in value cause by the fact that
failure internal process, people and system.
4. Liquidity Risk - lack of marketability of an investment
that cannot be bought or sold quickly enough to prevent or
minimize the loss.
5. Reputational Risk - loss of organization reputational
capital.
6. Business Risk - possibility a company will have lower than
anticipation profit/ experience a loss rather than taking a profit.
7. Systemic Risk - failure of a big entity that can cause the
failure of all other in the industry.
 Corporate Treasury will provide ratings on all financial
institutions that submit proposal.
Steps/Criteria:
1. Banks that have a rating of C or above are considered
acceptable risks and are eligible for further analysis.
2. If a bank is rated D or E in the most current bank-rating service
report, or if it is not rated, the proposal may be rejected.
3. Armored couriers must have a satisfactory Equifax or similar
reports.
BANK SERVICE CHARGES - fees a bank charges to cover the costs
of maintaining an account, processing deposits and checks,
handling overdrafts, issuing stop-payment orders, preparing
monthly account-analysis statement, etc.
ARMORED COURIER CHARGE - fees to cover the cost of
transporting bank service deposit.
BANKING EXPENSE - computed each month and then projected
for an annual period.
 Banks must meet all the mandatory requirements or their
proposal will be rejected.
 The purchase team may visit each cash vault where the
bank service’s money will be processed to determine the
bank’s operational capability.
 Financial institution or armored couriers that are asked to
clarify their offers must make those clarifications in writing
w/in the time frame contracting officer specifies.
 An officer of the bank must sign the clarification letter,
which must be addressed to the contracting officer.
Solicitation Team - will select the financial institution and
armored courier that best meet the performance evaluation
criteria and offer the best value to the bank service.
Purchase Team - prepare an award recommendation memo that
includes the ff. Info:
1. Number & identity of the proposal received.
2. Number & identity of the proposal rejected because of
an unacceptable risk rating.
3. Operational evaluation for each bank and armored
courier service considered.
4. Projected banking expense and armored courier cost for
each proposal.
5. Evaluation of each bank and armored courier service, a
recommendation on which service providers should be selected
and the rationale.
6. Documentation of unusual circumstances affecting the
evaluation of proposals or the selection decision.
RECOMMENDATION MEMORANDUM - submitted to the office
of the treasurer for review and approval.
- notification is provided to Corporate Treasury, district
finance manager and area finance manager.
6. Other contract-related correspondence with the bank,
the contracting officer, the armored courier, the area office,
Corporate Treasury.

 The contracting officer must keep the contract file for the
former bank for 6 years after the account is closed.
SIGNING AND ISSUING THE BANK AGREEMENT
 Corporate Treasury and the area treasury coordinator carry
out the new contract at the field level and coordinate a
BANK SERVICE’S LAW DEPARTMENT - must approved words or transfer of funds from one bank to another.
terms that deviate from the standard financial institution
agreements before an agreement is issued.

CONTRACTING OFFICER - must send a memorandum to the law

department outlining the change wording, with a draft copy of
the agreement attached.

CORPORATE TREASURY - will keep a copy of the financial

institution’s submission and signed agreement.

SIGNING AND ISSUING THE ARMORED COURIER

AGREEMENT

BANK SERVICE’S LAW DEPARTMENT - must approved word or

terms that deviate from standard armored-courier agreement
before an agreement is issued.

CONTRACTING OFFICER - must provide the document containing

the deviations to the law department, which will approve,
disapprove, or revise the request and send it to the bank
treasury.

CORPORATE TREASURY - will keep a copy of the armored

courier’s submission and signed agreement.

 The contracting officer must send letters to all

unsuccessful offerors.

 Unsuccessful bidders should submit requests to the

contracting officer within 3 days of receiving the notice of
proposal rejection.

 Contracting officer keeps the contract file for the

winning bank.

 Contracting file contains the ff items:

1. Original signed and executed copy of the agreement

with the bank.

2. Original signed and executed copy of the agreement

within the armored courier.

3. Copy of the awarded bank’s proposal.

4. Bank’s current risk rating.

5. Copies of all worksheet used in the evaluation of the

bank or armored courier.