Conversion to CU*BASE

Your credit union is about to encounter one of the biggest, most positive changes in its history. A software conversion is a major stepping-stone in your financial processing. Without proper communication, dedication, and cooperation, the transition will not succeed. That’s where CU*Answers comes in. Not only do we convert your data to new software, but we also provide supportive communication and training to your staff to ease their minds during the transition.

Over the years, CU*Answers has been involved in numerous credit union software conversions of all sizes. Because of this experience, we have been able to standardize the process so that your transition to our software goes as smoothly as possible. Our conversion promises rely heavily on your dedication to the process, and the teamwork between your credit union and CU*Answers will ensure a successful conversion. Your utmost satisfaction is the goal of our conversion team here at CU*Answers and we strive to make your conversion the best ever.

The Conversion Process

Converting your credit union to CU*BASE software begins approximately 6 months in advance of your conversion date and includes a series of important steps. It also requires intense interaction between your credit union, your current data processor, third-party vendors, and CU*Answers. There are several ways to achieve interaction, and the means best suited for your credit union should be determined ahead of time.

There are three major phases of the conversion cycle, starting with Phase One: Conversion Preparation, followed by Phase Two: Conversion Implementation, and finally Phase Three: Post Conversion Assessment. Your attention and assistance is necessary during all phases of the Conversion Process and we encourage your credit union’s participation throughout the entire conversion process.

Phase One: Conversion Preparation

Selecting a Date for Your Conversion

There are many factors to consider when selecting a date for your conversion. For example, your current data processor may only deconvert on the last day of the month, they may or may not be able to provide member transaction history, and the dates your ATM/Debit Card provider has available will need consideration. Our Conversion Team will discuss with you the options available based on these factors to select the best date available for a successful conversion.

CU*Answers’ Conversion Schedule runs January through May and September through November. We have the capability to do conversions any time during a month dependent upon your current data processor’s requirements as noted below. There is a moratorium on conversions in December due to year-end preparation and processing. We also want to complete at least one End-of-Month processing on your files before the end of the year to ensure all processes run smoothly and accurately. June, July and August, as you know, are generally vacation months for credit union staff as well as CU*Answers staff. We take this time to complete any follow-up visits and perform pre-site visits for upcoming conversions.

Benefits of a Weekend Conversion

The first factor is restrictions your current data processor may have, if any. Several processors will only complete deconversions on the last day of the month. CU*Answers recommends completing the conversion over a weekend for the least interruption to your normal business hours. Generally, data arrives at our office on Saturday morning, allowing for Saturday and Sunday to complete and verify the converted data and generate reports for a data sign-off. Your credit union would be closed to your membership on Monday, giving your management team time to approve and sign-off the conversion. We are present with your staff to insure all hardware is functioning properly. Monday is a dress rehearsal for your staff. We will assist them with role-playing to ensure they are comfortable navigating in CU*BASE and will be able to provide the prompt, courteous service your members come to expect. If your data processor is one who only does de-conversions at end-ofmonth, we would need to consider the business days that would cause the least interruption. There are very few months in which the last day of the month falls on a Friday.

Critical Member Transaction History

The next consideration is the ability of your old processor to send member transaction history. Many do not provide this history. Others will provide transaction history for a fee. The member transaction history is critical to your conversion cost. If it is not sent to CU*Answers, your credit union may have to provide two separate member statement mailings. Although in many cases the cost of the member history seems high, many times it is still lower than a secondary mailing. If you are willing to purchase transaction history for the current dividend period, we can calculate dividend and interest accruals for the entire dividend period. This would also eliminate the need for a full statement run before conversion. With member transaction history converted, you can stay on schedule with monthly and quarterly statements.

Your staff can also benefit from access to transaction history. When members have questions regarding a pre-conversion transaction, staff will not need to access another device connected to your previous processor. History would be available at their fingertips, thus reducing the stress usually associated with conversions.

ATM/Debit Card Provider

ATM/Debit Card providers can significantly affect the conversion date. They may have policies regarding available dates within a month for conversion processing. This would affect the final date decision.

A Typical Conversion Weekend

Hours 1 - 12	Friday 8:00 PM - Saturday 8:00 AM	Current data processor creates de-conversion tapes and reports and delivers to CU*Answers
Hours 12 - 48	Saturday 8:00 AM - Sunday 8:00 PM	Conversion team converts tapes, generates reports, verifies data, runs Beginning and End of Day processes. Systems staff will be at the credit union installing and testing hardware and network.
Hours 48 - 60	Sunday 8:00 PM - Monday 8:00 AM	Pack, sleep, and travel to credit union.
Hours 60 - 72	Monday 8:00 AM - Monday 8:00 PM	Verify conversion with credit union management; dress rehearsal with staff to prepare them for opening day.

Typically, a conversion covers a 72-hour period as noted by the scenario above.

As you can see by this scenario, the three-day weekend is packed full for your conversion team. While we are at CU*Answers, working on your conversion, Systems staff will be on site, working on network and hardware installations. We do try to squeeze in some sleep periodically throughout the weekend.

Another example is converting on a Friday. For instance, if the last day of the month is on a Thursday, the entire process would start Thursday night and end Sunday. The credit union would then be closed on Friday and open for business on Monday. Also in this scenario, staff would need to be at the credit union on Sunday for verification and training. If the last day of the month falls during the week and you are willing to consider closing for three days, we will certainly discuss this option with you.

Working With You Every Step of the Way

CU*Answers can perform conversions any time during the month, preferably over the course of a weekend. Again, member transaction history is strongly recommended, not only for the member statement reason, but access by the staff to this inquiry significantly reduces the stress associated with changing from one data processor to another.

Our Conversion Team will discuss with you the options available based on all of these factors. Our goal is to settle on a conversion date that is most compatible with your credit union, your current data processor, third-party vendors, and CU*Answers.

Managing Conversion Milestones

While it may always seem you have plenty of time to get a conversion done, procrastination can kill all good intentions so know the key dates and act quickly. Below is a sample of some key dates.

A Typical Key Dates Example

Requested Conversion Date	Letter of Intent or contract must be signed no later than	Phone lines between CU*Answers and Credit Union must be ordered by
120-day cycle	7/1/2013	8/1/2013
150-day cycle	6/1/2013	7/1/2013
180-day cycle	5/1/2013	6/1/2013

Preparing the Client Overview

The sales staff initially completes a Client Questionnaire and Overview. This questionnaire includes demographic information such as the number of members, asset size, number of locations, and types of products offered. This Questionnaire is an important first step in gathering information and understanding the current level of products and services offered by your credit union. It is especially valuable in reviewing key third party vendor relationships, existing hardware, and select transaction volumes. It is also a valuable tool for tailoring a detailed demonstration on how your credit union performs business.

Demonstrating the CU*BASE Software

In addition to gathering important data, software demonstrations will be conducted for your management staff. Through these presentations, we are able to collect many soft cues that lead us to your style. What features are you particularly interested in? How does your staff interact with us and with each other? How well does your staff know the system they currently use? How well do they know their own product details? How open is your credit union to making procedural changes to implement CU*BASE features? How will the staff accept these changes?

Completing the New Client Form

Once your conversion date has been set, you will be contacted. Our Conversion Team will obtain preliminary information and complete a New Client form. This includes general information about your credit union such as credit union locations, hours, current data processor, and contact personnel. Once this form is complete, it is distributed to all members of the CU*Answers conversion team.

Assigning the Conversion Teams

CU*Answers Conversion Team is comprised of the following members:

We strongly encourage you to develop your own credit union conversion team. This gives your credit union staff an opportunity to contribute to the conversion process as part of the team. We suggest that you appoint the following team members (these could be all separate people, or one individual):

Performing the CU*BASE Preliminary On-Site Visit (the Pre-Site)

Shortly after your conversion is scheduled, the Conversion Coordinator assigned to your conversion will contact you to gather information for the New Client form and schedule a visit to your location. This Pre-Site is conducted approximately five months before your conversion date because it is the starting point for the Conversion Coordinator to address certain items and begin configuring information.

Two weeks prior to the Pre-Site visit, you will receive a letter requesting certain information to be provided and discussed during the visit. We request this information in advance so that we can better prepare for the visit. During the visit we will discuss all aspects of your current credit union processing and relate them to future CU*BASE processing. At this point, you will want to notify your data processor and third party vendors, in writing, of the upcoming conversion. The sooner you can notify CU*Answers of their awareness, the sooner we can begin working with them on your conversion.

Your credit union’s responsibilities for conversion tasks are explained during this full-day meeting and some are put in written form. Notification to your current data processor will be discussed along with the importance of converting prior member history records. Beginning thoughts concerning employee training and the implementation of new products such as PC Home Banking are covered. You will also want to begin pondering how to market these new changes to your members.

Reviewing Laser Documents

The CU*BASE Pre-Site visit will also include a discussion on laser forms and laser checks. If your credit union does not use a laser format, your conversion coordinator will assist you in making the transition. If your credit union currently prints laser forms and checks, the process of converting your forms will be reviewed. You will need to contact the forms vendor of your choice to discuss your laser form options. We require that the laser forms be sent to us in an electronic format (email).

Once the CU*Answers Laser Coordinator receives the laser form files, a price quote along with a set of blank laser forms will be faxed to you. You will have one month to review and authorize the forms and price quote. During this time, you will need to inform us of additional required text and check for any errors. If errors are found, or forms are missing, you should contact both CU*Answers and your forms vendor to discuss corrections. Once we receive your authorized signature, a project sheet will be created to begin the programming process. We require 10 to 12 weeks to complete programming starting from the time we receive your authorized signature.

For laser checks with a logo, we require an electronic file of your logo (preferably Illustrator, .eps or .gif file with a minimum 200 x 100 pixel size) to be emailed to CU*Answers. Once we receive the required items for the laser checks, a sample check and price quote will be produced and faxed to you for review and authorization. Detailed information regarding laser forms and laser checks can be found in the Laser Printing with CU*BASE handbook.

Performing the Hardware Pre-Site

To get a better idea of your credit union’s internal network system and physical operation, one or more hardware pre-site evaluations will be conducted. The first visit will occur early in the process to assist in projecting accurate cost estimates for your conversion. Subsequent visits may be required to update information collected over time and to focus on particular facets of the systems conversion.

It will be helpful to both your staff and our Conversion Team if you can provide site maps of your locations in advance or at the time of the Pre-Site evaluation. This will help those who have not been at the site visualize the requirements of the environment. In addition to preparing a site map, we will collect information about the hardware assets of your credit union and review your existing network setup. During the visit, one of our experienced Systems Team representatives will assess your hardware and software conversion needs, analyze your workflow, and meet with your Network Administrator and management staff to make recommendations. Cable testing may also be performed during the visit to ensure that your cable plant is compliant.

A pre-site review report will be prepared based on the pre-site examination of your credit union. We will discuss the findings with you and a hardware proposal including requirements and recommendations will be prepared based on the findings of the pre-site evaluation. The responsibility for ordering PCs, printers, data lines, and other hardware will be disclosed in your individual contract. Strict timelines will be created for the purchase and preparation of your system. At this time you may also request services from Network Services the experienced networking team of CU*Answers. They will be able to assist you with purchasing your hardware as well as handling all networking and security needs.

For a list of the most up-to-date network and hardware specifications, please view the best practices page.

Contacting Other Vendors

Once we receive notification that you have contacted your current data processor to request a test tape, as well as contacting your other third-party vendors (share draft, credit card, ATM/Debit, etc.), we will then request the necessary information and schedule testing. The tape will allow the Programming Team to de-convert (decipher and analyze) the data. We require that the test tape and the actual conversion weekend tape be in the same format.

Once the Programming Team analyzes the test tape data, we will submit to you a full list of the files CU*Answers has received. Any files not received on this tape will need to be negotiated between you and your current data processor as soon as possible. The Conversion Coordinator and Programming Team will conduct a test conversion at CU*Answers a few weeks prior to your live conversion. At that time, the Conversion Coordinator verifies information for accuracy. Once the conversion translation process is complete and verified, we will be ready to convert your credit union.

What You Can Expect for Your Conversion Buck

What We Do Convert

• Convert your core database; member demographic information and share, certificate, and loan data (see chart on page 12
for a detailed listing of files).
• YTD GL account balances for the month prior to your conversion and month-to-date balances for the month of your
conversion.

What We Do Not Convert

• General ledger history. Any transaction information should be accessible in an archival system, such as CD-ROM.
CU*Answers will convert YTD balances as of the month prior to your conversion and MTD balances for the month of your conversion.

A la Carte Items

• The following items may be included with your conversion, but pricing is quoted separately:
• Other databases, such as lending or collections software that are not part of your core processing system, can be quoted
separately. These may or may not be scheduled at the same time as your core conversion to CU*BASE.
• Xtend SRS Bookkeeping Services after conversion for either a specific timeframe or a long-term program can be
negotiated with Scott Collins, President of Xtend at extension 183.
• ALM databases.
• Loan Forms. As part of your conversion, we will convert existing loan forms for laser printing with price quoted
separately.

Converting Your Back Office

Because we recognize the unique challenges faced by your Back Office support teams, CU*Answers has developed our Accounting Implementation Methodology (called AIM for short) in order to ensure that your conversion to CU*BASE goes as smoothly as possible.

Your Current Processor

Once you have notified your current data processor of your intentions to deconvert, they will generally send you a deconversion contract outlining related costs. In addition to standard per-member deconversion fees you may be required to pay, member transaction history may be an additional charge.

CU*Answers converts transaction history for 85% of our conversions. We are one of the few data processors providing this essential benefit for our new clients. As explained in “Phase One: Conversion Preparation,” there are many benefits to having member transaction history, but keep in mind, there can be additional charges associated.

How to Handle Conversion-Related Expenses

As with any fixed assets, the additional equipment purchased for your conversion to CU*BASE – printers, PCs, routers, etc. - can be amortized over a period to be determined by you and your auditor or examiner.

Other expenses charged by CU*Answers, such as travel and entertainment for CU*Answers support staff, should be reviewed with your auditor or examiner to determine the best possible accounting method for these items.

Programming

Your Conversion Programming Team has procedures and standards they follow to convert your data. Procedures are defined processes or steps taken in order to accomplish a task. Standards are levels of expectations describing the desired end results. The standards for new client conversions fall under the following key areas:

Communication

Communication is the key to success. Communication between your credit union and CU*Answers will be provided by the means best suited for you and your credit union staff. This may include communication via telephone, conference call, conversion bulletins, Internet link, email and meeting minutes. You will be kept informed of all developments, both positive and negative, throughout the entire process. As with any type of conversion, issues are inevitable but we will do our very best to find solutions in the quickest possible fashion.

The Conversion Coordinator will submit a Conversion Bulletin to your credit union periodically as needed. These bulletins deliver a conversion status and list any outstanding items needed from your credit union, data processor or third party vendors. Internal conversion communication within CU*Answers is conducted in the form of status meetings. All members of the CU*Answers Conversion Team are kept informed of any new developments.

A training outline will also be distributed to you 45 - 60 days prior to your conversion. This outline details what classes will be available, the date and time of the classes, and who the CU*Answers trainer(s) will be. Your Training Coordinator should review the outline and communicate to your staff which classes they will be required to attend.

Phase Two: Conversion Implementation

Training Your Staff

Depending on your staff, training may begin as early as 8 weeks prior to conversion. Your coordinator will review training options available, including our CU*Expert program, based on the size of your staff. You will begin your CU*BASE education with training on how to use the CU*Answers University online courses. These courses, along with an introduction to CU*BASE GOLD, will lay the foundation for the more in-depth training that will occur two weeks prior to your CU*BASE conversion. A CU*Answers Training Representative will work with your Training Coordinator, instructing them on how to use the online courses and assist them in developing a schedule for the staff.

About five weeks prior to your conversion, the data line between your credit union and CU*Answers will be activated. This will allow a period of time to handle any issues that may arise with the new connection and make on-site training possible. At the time the data line is activated or shortly after, a Systems Team member will assist in setting up your workstations for your training site in a classroom-like environment. This will allow you to conduct online training and supervised on-site training prior to conversion. Instruction on installing CU*Answers software and performing software updates will also be provided at that time. Additional training can be provided at our office.

Two weeks prior to your conversion, we will begin the CU*Answers instructor-led, classroom-type courses, either on-site at your credit union, or at the CU*Answers University facility. These two weeks of training will be coordinated with your Training Coordinator and will include CU*Answers training instructors. By the time training begins, we will have converted the test data. The files used for training will be your credit union’s files. Key credit union staff will be asked to verify this data for accuracy. The CU*Answers trainer will work with you on this. We recommend that all staff attend the appropriate training sessions at this time as the conversion week will be quite eventful, and specialized, individual training may not be manageable at that time. We cannot stress enough that the time your staff spends during training is a key ingredient to a smooth conversion.

Follow-up training sessions may be scheduled once a conversion has been completed. At this time, a skilled CU*Answers employee will conduct a review with each department based on their individual needs. These sessions can be provided either in a classroom setting or by simply fielding questions and assisting staff members during their daily business. They will also assist each department with any needed end-of-month reports.

Travel and expense fees are outlined in your Conversion Agreement. Additional training above and beyond the traditional two-week conversion package can be offered for additional cost.

Distributing a Summary Letter

Three weeks prior to your conversion, the Conversion Coordinator will distribute a summary letter outlining what to expect on conversion weekend and the two weeks following. This summary will include a plan for tape delivery, which CU*Answers staff will be assigned to each of your offices and an itinerary of events to take place during conversion weeks. This summary letter should be shared with your staff so they will know what to expect and what is expected of them.

Configuring and Reviewing

A special session for Management Configuration will be conducted between your management staff, the Conversion Coordinator and the Conversion Programmer. Your Coordinator will send you an agenda for the session so you will know what to expect as well as any documents you should bring with you. During this session, a detailed level of verification is completed. This review by your Management Team and CU*Experts is to ensure that all configurations and settings are complete and accurate. Minor changes can be made during this session. Once the session has been completed, no changes to your product structure will be permitted until after the conversion has been completed. This session is conducted during the week prior to your conversion and usually lasts for the entire day.

Surviving Your First "Live Week" On CU*BASE

To help ease the stress that accompanies conversions, we encourage your management team to create diversion for your staff during live week. We call these Morale Builders. These can be gifts, appreciation awards, task-completion awards, games, etc. Basically, we want your staff to have fun during live week! Your Conversion Coordinator will provide some ideas during the Pre-site visit.

On the first day that you convert to CU*BASE we recommend that your credit union be closed. This enables us to make necessary adjustments without the stress of interfering with daily customer interactions. CU*Answers personnel will be available to assist with questions that your staff may have about CU*BASE.

Now it’s time for your CU*Experts to go to work! CU*Answers will bring a mini-Client Service team consisting of your Conversion Coordinator, a Lending expert, a Back-Office expert and a Teller/Member service expert. This team will act as liaisons between CU*Answers and your CU*Expert located in your main office. This CU*Expert should plan to field questions from your branch locations. Any additional CU*Answers support may be provided for an additional charge and should be discussed with your Sales Representative during the sales and contract negotiation process. Back-office support for your credit union will be provided for 8 days. If you contract with SRS Bookkeeping Services, conversion support will be reduced to one week. Other support staff will usually be on-site for 3 days. Follow up visits and training may be scheduled at certain intervals following your conversion.

Your management team and credit union conversion team will be kept aware of any issues that may arise during conversion live week. We will utilize the communication method best suited for your credit union. This may include meetings, bulletins, or quick discussions.

Support provided by CU*Answers personnel during conversion week will be determined based on your individual credit union needs. Follow up visits and training may be scheduled at certain intervals following your conversion.

Phase Three: Post Conversion Assessment

After 8 days on CU*BASE, our staff will return to CU*Answers. The Conversion Coordinator will prepare an internal Conversion Summary Report noting any specific areas needing improvement or items that went especially well. You will receive a Post-Conversion Bulletin outlining any unresolved issues.

The Conversion Coordinator will be your main point of contact for configuration and conversion-specific questions. All other software and hardware-related inquiries can be directed toward CU*Answers competent Client Service and Systems staff.

Making It to Your First Month-End on CU*BASE

During the conversion, various reports will be provided for your verification and approval. For the first statement run following the conversion, you will be acted to approve sample member statements before they are processed and mailed. We also request that you closely monitor the reasonability of your financial statements for the first month following the conversion.

Visiting for a Follow Up

The Conversion Coordinator will return for a follow up visit within 30 days after your conversion. Any outstanding items are addressed at this time along with questions you may have about the software. Any outstanding items not resolved during your first two weeks on CU*BASE will be addressed shortly following your conversion. You will be kept up to date by the Conversion Coordinator on the status of such items.

Reviewing and Implementing Post-Conversion Products

A one or two-day session can be held 3-6 months following your conversion to CU*BASE. At the time your credit union converts to CU*BASE, you will have been trained in the basics; now it is time to take a look at all of the other features CU*BASE has to offer. In addition to reviewing your current configuration, we will demonstrate additional features, and assist you in developing an implementation and staff training process.

Reviewing Ancillary Products

As a part of our ongoing post-conversion commitment, CU*Answers will work closely with you to review and educate you on the many ancillary products and offerings available. In many cases, these services will become a natural extension of performing business using CU*BASE. This is not a one-time event and will be ongoing during normal client meetings, CU*Answers University sessions, Focus Group sessions and other opportunities.