Banking Arrangements Directorate - Financial Management Institute

Banking Arrangements Directorate
Banking and Cash Management
Christine Lacroix
November 26, 2013
Agenda
1.
2.
3.
4.
5.
Banking Arrangements Directorate
Stakeholders and Partners
Procurement of Banking Services
Management of Consolidated Revenue Fund
Questions
2
1- Banking Arrangements Directorate
3
Who are we and what do we do?
Payment Innovation: Research and development of banking services
Banking Initiatives: Contract management/relationships
Banking Operations: Internal/external relationship management; contract implementation
Cash Management Operations: Funds flow management control & settlement
Innovation payment
Research
Banking Initiatives
Relationships
Banking operations
Operational/Relationships
Cash Management
Operations
Transactional
4
2- Stakeholders and Partners
5
Stakeholders and Partners
Internal to Government





Dept. of Finance
Treasury Board
Auditor General of Canada
Bank of Canada
Revenue generated by departments
External to Government
 Financial institutions & service providers
 Canadian Payment Association
 Other governments, in Canada and abroad
6
3- Procurement of Banking Services
7
1. Mechanism:
Memorandum of
Understanding
Standard
Services Specialized
Services
2. Mechanism:
Request for
Proposals
▪ Inflows
 Inflows
▪ Cheques and cash
▪ Bill payments (participating FI)
▪ Tax deposits (participating FI)
▪ Outflows
▪Direct deposits
▪EDI (participating FI)
▪Cheques
 Wire transfers/direct deposits
 Credit/debit card acceptance
 Pre-authorized debits
 Foreign receipts
 Bill payment service
 Outflows
 Foreign
 EDI
8
A – Memorandum of Understanding
(for negotiating Canada’s standard services)
1. Receiver General compensates banks (fees and float)
2. Preparations made for negotiations
3. PWGSC, Dept of Finance and Banks begin negotiations
4Parties report progress to internal stakeholders
5. Formal opening offer tendered (usually from the banks)
6. Senior officials at PWGSC and Finance assess offer
7. PWGSC and Finance tender a counter-proposal
8. Negotiations continue until resolution reached
9. Senior officials from both sides sign agreement
9
B – Formal Request for Proposals (RFP)
(for tendering specialized services)
Requirements definition stage launches process (consultations with
departments, strategy developed and approved)
RFP is posted on Public Works and Government Services
Canada’s electronic tendering system for 40 days
Proposals are evaluated first on technical merit and, if
compliant, are then assessed on price
Typically, best value to Canada is judged on lowest cost
per point (technical score/pricing = lowest cost per
point)
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4- Management of Consolidated Revenue Fund
11
Consolidated Revenue Fund
“Consolidated Revenue Fund” means the aggregate of all
public moneys that are on deposit at the credit of the
Receiver General. (FAA)
Includes:
– Operating account at the Bank of Canada
– Cash in transit deposited in RG accounts at financial
institutions
12
Cash Management Objectives
“The primary objective is to minimize the level of cash balances,
consistent with ensuring funds are available to meet daily
requirements, with an appropriate margin for uncertainty, while
investing the cash balances in the market to help mitigate the
cost of carrying cash balances.” (Bank of Canada)
13
Cash Forecasting
Bank of Canada produces cash forecasts using:
Federal Budget
 Projected economic growth
 Spending and taxation estimates
 Special programs/initiatives
Supplemental Information
 Departments and Agencies
 Banking and Cash Management Sector
Historical data
 Guided by previous year and expected growth
 Seasonal fluctuations
 Bond entitlements and issuance
14
Term Deposit Auction
Twice daily auction of surplus cash balances
Morning auction of projected surplus
 Majority of auctioned balances
 Multiple tranches of differing maturities
 Collateralized/uncollateralized access to wide range of participants
Afternoon auction of residual funds
 Access limited to LVTS participants
 Uncollateralized, overnight funds
 Used to achieve target settlement balances
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C
u
s
t
o
m
E
r
C
l
i
e
n
t
Dépôts RG Deposits
Remise
Remittance
Dépôts avant 15h00
Deposits before 3pm
1
2
Ministère
Department
3
Dépôt - Deposit
Dépôt
Deposit
3
Fichier
de Contrôle
Control
Data File
6000 NAB-BAN
Télécopies
Fax
43 Comptes centraux
Concentrator
15 IF-FI
Fichier
821 File
Transfert
CIBC
Transfert
5
GLGRG
RL GL
Ordinateur
MSFT
Mainframe
Dépôts
Deposits
RG
4
Délai 2 jours / 2 days delay
Contrôle de dépôts
Deposit Control
4
SBG-GBS
16
Paiements RG Payments
Requêtes de
Paiements
Payment request
1
Ministère
Department
RG
2.2
Rapprochement
des chèques
Fichier de Paiements
Payment File
Mise à jour du statut
Status Update
Impression
De chèques
Cheques Print site
2.1
SPS—SNP
2.3
2.1
Fichier de
Paiements
Payment File
2.3
6.1
Rapports
Reports
RG
3
Encaissement
du chèque
Cheque
encashed
6
Bank RéconciliationCRDC
Requêtes de
Paiements
Payment
Request
ÉJ
Émissions
Issues
JV
7
GLGRG
RL GL
SBG-GBS
4
5
Ballots de chèques
Bags of cheques
17
Règlement - Settlement
1
SARC/Télécopie remboursement
ACSS/Fax of redeemed payments
3
Dépôts
Deposits
6h30
Transfert
STPGV
LVTS transfer
4.1
2
Remboursement
Redemption
ACP-CPA
SACR
ACSS
4
Instrument
de débit
Debit
Instrument
STGV
LVTS
5
Dépôts à
Terme
Term
Deposits
RG
Balance quotiendde de
l’encaisse
Daily Cash Balance
Correction des Invalides
Invalid transactions
Corrected
6
GLGRG
RL GL
Fichier
D’ÉJ
JVs
File
6.1
SBG-GBS
FRC - CRF
Transfert de paiements à
Grande valeur – même
Journée
Same day payment –
Large Value Transfer
18
Who we are and what we do.
Innovation payment
Research
Banking Initiatives
Relationships
Banking operations
Operational/Relationships
Cash Management
Operations
Transactional
19
CONTACT NAMES
Khalil Haddad, Manager of Payment Innovation
Nicholas Grillas, Manager of Banking Initiatives
Benoit Bernier, Manager of Banking Operations
Christine Lacroix, Manager of Cash Management
Operations
Andrée Desjardins, Senior Director
20
Questions
Thank you
21