Five Star Bank’s Reagan Ballo, VP, Managing Director of Government Banking, shares insights and guidance that benefit healthcare districts.
Review Your Bank’s Ratings, Rankings and Financial Performance
It is critical to work with a strong, reputable, and TOP-RATED community bank. Review your bank's ratings, rankings, and financial performance reports regularly as they are indicators of the institution's financial strength.
It is critical to work with a strong, reputable, and TOP-RATED community bank. Review your bank's ratings, rankings, and financial performance reports regularly as they are indicators of the institution's financial strength.
Be Sure Your Public Deposits are Protected
As a public entity, all district bank deposits must be secured by qualified collateral or other approved instruments of a bank to safeguard the deposits. Be sure your bank understands and adheres to the California Government Code with respect to your district’s public deposits and that you have entered into a contract with the bank relating to the deposit of monies.
As a public entity, all district bank deposits must be secured by qualified collateral or other approved instruments of a bank to safeguard the deposits. Be sure your bank understands and adheres to the California Government Code with respect to your district’s public deposits and that you have entered into a contract with the bank relating to the deposit of monies.
Develop a Meaningful Partnership with Your Banker
A meaningful partnership with a trusted banker who knows your unique organization is key. Your banker should be accessible, knowledgeable about healthcare districts and be a trusted advisor to help your district meet its financial goals and objectives. Your banker should be nimble and able to offer guidance when market conditions change. Ask your banker for help when you need to troubleshoot matters, foster new ideas or for refresher training or new employee training on the bank’s systems. Your banker should always be available to provide guidance and training.
A meaningful partnership with a trusted banker who knows your unique organization is key. Your banker should be accessible, knowledgeable about healthcare districts and be a trusted advisor to help your district meet its financial goals and objectives. Your banker should be nimble and able to offer guidance when market conditions change. Ask your banker for help when you need to troubleshoot matters, foster new ideas or for refresher training or new employee training on the bank’s systems. Your banker should always be available to provide guidance and training.
Reconcile Your Accounts and Services Regularly
Reconcile your bank statements each month and verify your account activity daily. Report all suspicious and unauthorized transactions to your banker immediately. Utilize fraud prevention services such as Positive Pay to help identify check and ACH fraud against your account and Account Reconciliation and Reporting tools to effortlessly reconcile your accounts. Confirm service charges are accurately billed and are reflective of the services used by your district.
Reconcile your bank statements each month and verify your account activity daily. Report all suspicious and unauthorized transactions to your banker immediately. Utilize fraud prevention services such as Positive Pay to help identify check and ACH fraud against your account and Account Reconciliation and Reporting tools to effortlessly reconcile your accounts. Confirm service charges are accurately billed and are reflective of the services used by your district.
Utilize Cash Management Services to Automate Processes and Improve Efficiency
Work smarter, not harder! Utilize our bank’s Cash Management services to automate your payment, reconciliation, and transaction posting activities, and to manage your cash position. Your banker should understand your district’s cash posting processes and offer new ideas and cost-effective solutions to help you operate more efficiently.
Work smarter, not harder! Utilize our bank’s Cash Management services to automate your payment, reconciliation, and transaction posting activities, and to manage your cash position. Your banker should understand your district’s cash posting processes and offer new ideas and cost-effective solutions to help you operate more efficiently.
Keep Account Signers and Online Banking User Access Current
Regularly audit your district’s list of authorized account signers and online banking users and make timely changes as required when staff changes occur. Make sure employees’ access to bank accounts and systems is acceptable based on their current role with the district. Keeping this information current will allow your operations to continue uninterrupted and prevent unauthorized account access. When you do need to make changes to account signers, understand your bank’s process for making the changes. You should be able to easily send the required information electronically to make the changes.
Regularly audit your district’s list of authorized account signers and online banking users and make timely changes as required when staff changes occur. Make sure employees’ access to bank accounts and systems is acceptable based on their current role with the district. Keeping this information current will allow your operations to continue uninterrupted and prevent unauthorized account access. When you do need to make changes to account signers, understand your bank’s process for making the changes. You should be able to easily send the required information electronically to make the changes.
Validate Your Bank’s Pricing and Services
As a fiduciary of your district’s public funds, it is a best practice to occasionally validate your current bank’s pricing and services to ensure you are receiving the best value and services to meet your current and future needs. Create a list of your requirements to obtain quotes from banks who meet your criteria or simply request a complimentary side-by-side comparison to ensure your district is getting the best value. This will help confirm you are with the right banking partner or provide you with an opportunity to align with a new banking partner who better understands public funds and the healthcare industry. It can also provide you with optimal services that can save you time and money.
As a fiduciary of your district’s public funds, it is a best practice to occasionally validate your current bank’s pricing and services to ensure you are receiving the best value and services to meet your current and future needs. Create a list of your requirements to obtain quotes from banks who meet your criteria or simply request a complimentary side-by-side comparison to ensure your district is getting the best value. This will help confirm you are with the right banking partner or provide you with an opportunity to align with a new banking partner who better understands public funds and the healthcare industry. It can also provide you with optimal services that can save you time and money.
Use Cash Alternative Payment Methods
Accepting cash payments can be costly to manage and creates added liability for your district. The handling of cash from accepting, counting, storing and transporting it to the bank for deposit is not only time-consuming and costly, but also poses safety concerns for employees handling cash. Accepting cash alternative payments such as checks, ACH, wire and credit card payments in person, by mail, through a bank lockbox, online or electronically can help reduce handling costs and exposure. If accepting cash is unavoidable, work with your banker to determine the best cash solution to help manage the cost and mitigate the risk of handling cash.
Accepting cash payments can be costly to manage and creates added liability for your district. The handling of cash from accepting, counting, storing and transporting it to the bank for deposit is not only time-consuming and costly, but also poses safety concerns for employees handling cash. Accepting cash alternative payments such as checks, ACH, wire and credit card payments in person, by mail, through a bank lockbox, online or electronically can help reduce handling costs and exposure. If accepting cash is unavoidable, work with your banker to determine the best cash solution to help manage the cost and mitigate the risk of handling cash.
Avoid Falling Victim to Financial Scams and Fraud
Always work with a financial institution that puts the safety of your information first. Employee fraud prevention education, adequate system and account access controls and out-of-bank transaction verification through separate communication channels are key to avoiding falling victim to financial scams and fraud. Your banker should provide you with best practices to minimize the risk of compromise to your systems and information and offer fraud prevention services, such as Positive Pay and wire transfer verifications, to identify fraudulent activity promptly to help you protect the assets of your district.
Always work with a financial institution that puts the safety of your information first. Employee fraud prevention education, adequate system and account access controls and out-of-bank transaction verification through separate communication channels are key to avoiding falling victim to financial scams and fraud. Your banker should provide you with best practices to minimize the risk of compromise to your systems and information and offer fraud prevention services, such as Positive Pay and wire transfer verifications, to identify fraudulent activity promptly to help you protect the assets of your district.
Work With a Bank Partner Who is Your Advocate
You should expect your bank to partner with your district as a community advocate and champion. Banks can sponsor your events and promote your district through marketing outreach efforts. Banks that support the Association of California Healthcare Districts and other special districts associations are in-tune with the needs, challenges and goals of special districts. Work with a bank that supports the important work you do.
You should expect your bank to partner with your district as a community advocate and champion. Banks can sponsor your events and promote your district through marketing outreach efforts. Banks that support the Association of California Healthcare Districts and other special districts associations are in-tune with the needs, challenges and goals of special districts. Work with a bank that supports the important work you do.
Contact Reagan Ballo at rballo@fivestarbank.com or
(916) 660-5752 with any questions or for further guidance.
Five Star Bank is proud to be an ACHD Bronze Sponsor. Five Star Bank is an award-winning, publicly traded (Nasdaq: FSBC) community business bank. High-tech and high-touch, Five Star provides clients with boutique business banking services inspired by partnership and defined by shared vision and goals. At Five Star, customers have direct access to their banker at all times. The bank is a customer advocate, community champion and driver of economic development. In 2023, Five Star Bank was ranked among S&P Global Market Intelligence's Top 20 Best-Performing Community Banks in the nation (with assets between $3 billion and $10 billion). The bank was also awarded the 2023 Raymond James Community Bankers Cup and was among Piper Sandler's 2023 and 2024 Sm-All Stars. In 2024, Five Star Bank was ranked #5 on the list of best U.S. banks with assets less than $5 billion by Bank Director Magazine’s RankingBanking and ranked #18 on the top 25 U.S. banks of all asset sizes by Bank Director Magazine’s RankingBanking. The bank is rated as Superior (5 out of 5 stars) with Bauer Financial and Superior by the IDC. Five Star is also a Super Premier Performer with The Findley Report. Five Star was included among the Sacramento Business Journal's Best Places to Work in 2023 and Fastest Growing Companies in 2023 and 2024.