High Level Requirements – Treasury Management System Southern Housing Group

HIGH-LEVEL REQUIREMENTS

TREASURY MANAGEMENT SYSTEM (TMS)

Document Status / Approved
Document Path Name / S:\03 Projects\27 Treasury Management System\02 Requirements\1.0
Description / High level requirements document for Treasury Management System
Document Version / 1.0
Template Version / 1.0
Date Issued / 15 April 2013

TABLE OF CONTENTS

1.1VERSION HISTORY

1.2DISTRIBUTION LIST

1.3SIGN OFF LIST

1.4GLOSSARY

2INTRODUCTION

2.1 PURPOSE OF DOCUMENT

2.2 BACKGROUND

3REQUIREMENTS

3.1FUNCTIONAL REQUIREMENTS

3.2NON-FUNCTIONAL REQUIREMENTS

1DOCUMENT CONTROL

1.1VERSION HISTORY

VERSION / DATE / DESCRIPTION
0.1 / 21 March 2013 / Initial draft
0.2 / 9 April 2013 / Updated following business review
1.0 / 15 April 2013 / Definitive version

1.2GLOSSARY

TERM / MEANING
TMS / Treasury Management System
SHG / Southern Housing Group
M2M / Market to Market

2INTRODUCTION

2.1 PURPOSE OF DOCUMENT

This document describes Southern Housing Group’s high level requirements for a Treasury Management System.

2.2 BACKGROUND

Southern Housing Group requires a proven and robust non-bespoke treasury system which is supportable (both from a query and IT perspective) which “lives” in an operating environment that provides for working hours availability and a safe business continuity/disaster recovery platform. Currently, information and data regarding the Group’s treasury are held ona series of stand alone spreadsheets. A treasury management system will allow this information to be consolidated into a readily accessible and auditable system in order to manage the Groups’ debt, interest rate exposure and cash.

Key benefits arising from the implementation of a Treasury Management System include:

  • The system will provide a single reference source to hold all loan key covenant and on-going obligation requirements.
  • Automation of processing of information, payment and accounting entries will free up staff time usually spent completing these tasks manually.
  • The system will allow for a wider (but still restricted) access of treasury and related information across the business while at the same time providing appropriate segregation of duties thus removing the business’s dependency upon a few key individuals.
  • Enable the simplification of daily cash management through automated bank reconciliations and easier access to account and transaction information.
  • Simplify the provision of management information directly from a treasury management system rather than having to manipulate data from several sources to create the necessary output.

3REQUIREMENTS

3.1FUNCTIONAL REQUIREMENTS

Data Management

ID / DESCRIPTION / REQUIREMENT
REQ001 / Standing data / It shall be possible for the system to provide debt and interest management taking into account the following data:
  • Loan types
  • Swaps – embedded and non-embedded
  • Non utilisation fees
  • Interest history
  • Repayment profiles
  • Payment dates (standing and variable)
  • Covenants
  • Notices
  • Key account contacts
  • Other key loan terms

REQ002 / Loan and interest structures / The system shall be able to handle differing loan and interest structures such as:
  • Embedded swaps with option date(s)
  • Amortising embedded swaps
  • RPI linked interest and capital
  • Stand alone swaps with option date(s)
  • Stand alone swaps linked to fixed rates and RPI
  • Separate margin and MCR/MLA analysis

REQ003 / Document upload / It shall be possible to upload PDF’d loan documents into the system.
REQ004 / Calendar reminders / Calendar reminders of payment datesshall be generated within the system.
REQ005 / Forecast of cashflow / The system shall generate a forecast of SHG’s cashflow.
The system shall accurately forecast interest and capital payments and expense in respect of known debt and known interest rates within the system, with the capability for users to provide assumptions of future interest rates for forecasting purposes. Any forecasting capacity within the system shall be split between interest/capital actual known and then with provided assumptions plus forecasts drawn from a combination of access to other accounting systems e.g. purchase ledger, standing input date e.g salaries and then manually input data.

The following requirements are considered as nice to haves:

ID / DESCRIPTION / REQUIREMENT
REQ006 / Market data feeds / The system shall be able to receive market data feeds from an external subscription service on a real time basis.
REQ007 / M2M pricing / The system shall be able to process (and account) market to market pricing information from either direct feeds (from subscription services or the system providers own market feed) or manually input pricing.
REQ008 / Security valuation and charging principles / The system shall be able to hold information of when security valuations were completed, who by and when next due. This information shall be loaded into the system by a combination of manual entry and automated upload from an Excel spreadsheet.

Audit and security

ID / DESCRIPTION / REQUIREMENT
REQ009 / Appropriate Segregation of Duties / A system of authorisation linked to security levels shall be setup to enforce segregation of duties ensuring that:
  • Users authorise payments upon their entry.
  • Users who set up payments to the bank are unable to enter data onto the system and vice versa.

REQ010 / Reconciliations of facilities and positions / The data held in the system shall match SHG’s books of account.
REQ011 / Audit trail and history / There shall be visibilityof a history of changes that have been made to the system on the following basis:
  • What changes where made
  • Who made the changes
  • Date and time of changes made.

Processing

ID / DESCRIPTION / REQUIREMENT
REQ012 / Link to Open Accounts / Data shall be pulled out of Open Accounts for reconciliations and forecasting.
REQ013 / Link to Bankline system / Interest, capital, and non-utilisation fee payment details shall be passed into Bankline (clearing bank payment system)(or other online banking system as operated by a major bank) ready for payment authorisation.
REQ014 / Accruals / The system shall generate and be able to post accruals into Open Accounts.
REQ015 / Journals / The system shall generate and export daily and monthly accounting journals into the Audit module of Open Accounts ready for review and posting.

Reporting

ID / DESCRIPTION / REQUIREMENT
REQ016 / Reporting / The system shall be able to report on the following areas:
  • Cash Management
  • Interest and Loan forecasting
  • Interest costs and trend reporting
  • Break costs
  • Overdrafts
  • Cashflow
  • Payment deadlines
  • Exception reporting
  • Additional treasury committee and periodic reports
  • Gearing and Covenants breaches (nice to have)

REQ017 / Data export / It shall be possible to export data from the reports.
REQ018 / Graphical analysis / It shall be possible to view report data via graphical analysis.
REQ019 / Formats / Reports shall be viewable via Excel, PDF or Web reporting.

3.2NON-FUNCTIONAL REQUIREMENTS

Business Continuity

ID / DESCRIPTION / REQUIREMENT
REQ020 / Availability / The system shall be available during working hours (Monday to Friday 8am – 6pm).
REQ021 / Data feeds / Where relevant, data feeds into and out of the system shall be completed over night. The format and source of these feeds shall be specified at supplier scoping meetings.
Market data feeds, if acquired, shall be on a realtime basis.
REQ022 / Back ups / SHG shall request specific proposals for back up frequencies from suppliers. As a minimum SHG require the system to be backed up every 24 hours.
REQ023 / Recoverability / The system shall be available again within 24 hours in the event of it going down.
REQ024 / Remote access / Users shall be able to access the system remotely by logging into their SHG environment from home.
REQ025 / Compatibility / The system shall be compatible with any accounting software system.
REQ026 / Support / There shall be access to a support helpdesk (whether internal or external) during working hours (Monday to Friday 8am – 6pm). Call resolution times are expected to be as follows:
  • Critical – within 1 hour
  • Urgent – within 1 day
  • Major – within 5 days
  • Minor – within 10 days

REQ027 / Updateable / The system shall be able to accommodate future enhancements, addition of further modules and be upgradeable.
REQ028 / Maintenance / The system shall ideally be maintenance free once set up. No maintenance shall be completed in-house and SHG shall look to understand how a supplier will maintain the system.
REQ029 / Upgrades / SHG shall seek clarification of supplier support with regards to system upgrades / patches, including costs and how long the system will be supported for if SHG does not upgrade.

Users

ID / DESCRIPTION / REQUIREMENT
REQ030 / Core users / There shall be a minimum of3 core users who are able to input and view data.
REQ031 / Additional users / There shall be 4 additional users on a read only / reporting user role basis.
REQ032 / Additional users / There shall be2 additional users if a bank reconciliation functionality is acquired.
REQ033 / Ease of use / The system shall be easy and intuitive to use with a graphical interface. Limited technical knowledge shall be required to use the system
REQ034 / User support / User manuals, online support forums and customer feedback sessions shall be available to the system users.
REQ035 / Training / Initial set up and training support shall be provided, followed by a level of ongoing training through either online or written materials to support different user groups.

Additional

ID / DESCRIPTION / REQUIREMENT
REQ036 / Citrix / The system shall be compatible with Citrix.
REQ037 / IE7 / The system shall be compatible with Internet Explorer 7 and above.
REQ038 / System environments / A test environment of the system shall be provided.
REQ039 / Sandbox / A sandbox environment of the system shall be provided.

-- End of Document --

Created on 21/10/2018Page 1