Exhibit h (viii) under Form N-1A
Exhibit 10 under Item 601/Reg.S-K
RECORDKEEPING AND INVESTMENT
ACCOUNTING AGREEMENT
The parties to this Agreement are Federated Investment Management
Company ("FIMCO"), a Delaware business trust, and Federated Services
Company ("FServ"), a Pennsylvania corporation, each having its
principal place of business at 0000 Xxxxxxx Xxxxxx, Xxxxxxxxxx, XX
00000-0000 (collectively, "Federated"), and Investment Company Capital
Corporation ("ICCC"), a Maryland corporation having its principal place
of business at 0 Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000. This
Agreement is made effective as of February 22, 2002.
WITNESS
WHEREAS, FIMCO provides general administrative, fund accounting,
and dividend disbursing services to Large Cap Index Fund (the "Fund"),
a duly authorized series of Federated Index Trust (the "Company"),
pursuant to a Supervisory and Administrative Services Agreement dated
February 22, 2002; and
WHEREAS, FServ provides portfolio accounting services to the Fund
pursuant to an Agreement for Fund Accounting Services, Administrative
Services, Transfer Agency Services and Custody Procurement dated March
1, 1996;
WHEREAS, the Company desires to invest all of the Fund's investable
assets in Equity 500 Index Portfolio (the "Portfolio"), an investment
company registered under the Investment Company Act of 1940 (the "1940
Act") and advised by Deutsche Asset Management, Inc. ("XxXX, Inc.");
WHEREAS, the Fund will pay indirectly, as an investor in the
Portfolio, fees paid by the Portfolio to XxXX, Inc. and other services
providers;
WHEREAS, to the Company's determination to make such investment was
based on, in part, or ICCC's agreement, ICCC has agreed to perform
certain investment accounting and recordkeeping services on a
computerized accounting system (the "Portfolio Accounting System") in
connection with maintaining certain accounting records of the Fund;
NOW, THEREFORE, in consideration of the mutual promises herein
contained, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties, intending to be legally
bound, mutually covenant and agree as follows:
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1. Appointment of Sub-Agent. Federated hereby constitutes and appoints
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ICCC as sub-agent for the Fund to (a) perform certain
administrative services and fund accounting services as set forth
at Exhibit A; and (b) calculate the net asset value of the Fund
(collectively, the "Services"). ICCC will perform such services at
no cost in consideration of the Fund's investment in the Portfolio
and the receipt by its affiliates of fees in consideration
therewith.
2. Representations and Warranties of FIMCO. FIMCO hereby represents,
-----------------------------------------
warrants and acknowledges to ICCC:
(a) That it is a business trust duly organized and existing and in
good standing under the laws of the State of Delaware and has
the requisite power and authority to conduct its business as
now being conducted; and
(b) That the execution and delivery of this Agreement by FIMCO
have been duly authorized by all necessary acts on the part of
FIMCO and no other action or proceeding is necessary for the
execution and delivery of this Agreement. This Agreement has
been duly executed and delivered by FIMCO and constitutes a
legal, valid and binding obligation of FIMCO.
2. Representations and Warranties of FServ. FServ hereby represents,
-----------------------------------------
warrants and acknowledges to ICCC:
(a) That it is a corporation duly organized and existing and in
good standing under the laws of the Commonwealth of
Pennsylvania and has the requisite power and authority to
conduct its business as now being conducted; and
(b) That the execution and delivery of this Agreement by FServ
have been duly authorized by all necessary acts on the part of
FServ and no other action or proceeding is necessary for the
execution and delivery of this Agreement. This Agreement has
been duly executed and delivered by FServ and constitutes a
legal, valid and binding obligation of FServ.
3. Representations and Warranties of XxXX, Inc. ICCC hereby
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represents, warrants and acknowledges to Federated:
(a) That it is a corporation duly organized, validly existing and
in good standing under the laws of the State of Maryland and
has the requisite power and authority to conduct its business
as now being conducted; and
(b) That the execution and delivery of this Agreement by ICCC have
been duly authorized by all necessary acts on the part of ICCC
and no other action or proceeding is necessary for the
execution and delivery of this Agreement. This Agreement has
been duly executed and delivered by ICCC and constitutes a
legal, valid and binding obligation of ICCC
4. Duties and Responsibilities of Federated.
-----------------------------------------
(a) Based on information provided by ICCC, Federated has determined
that the Portfolio Accounting System is appropriate and
suitable for its needs.
(b) Federated shall provide to ICCC transaction and other related
information that ICCC reasonably requests in writing to
perform its duties and responsibilities hereunder. Federated
shall provide such information in an electronic format
mutually agreed upon by it and ICCC prior to the close of the
New York Stock Exchange on each day ICCC prices the Fund's
securities. (c) Federated shall provide to ICCC a
certificate signed by a corporate officer as conclusive proof
of any fact or matter that ICCC reasonably believes that it is
required to ascertain from Federated. Federated shall also
provide to ICCC written instructions signed by a corporate
officer with respect to any matter concerning this Agreement
that ICCC reasonably requests. ICCC may rely upon any written
instruction furnished by any person that it reasonably
believes to be a corporate officer of Federated, and shall not
be held to have notice of any change of authority of any such
person until Federated provides written notice thereof.
(d) Federated shall preserve the confidentiality of the Portfolio
Accounting System and the tapes, books, reference manuals,
instructions, records, programs, documentation and information
of, and other materials relevant to, the Portfolio Accounting
System and the business of ICCC (collectively, "Confidential
Information"). Federated shall not voluntarily disclose such
Confidential Information to any other person other than its
own employees or agents who reasonably have a need to know
such information pursuant to this Agreement, or as may be
required by applicable laws, rules or regulations. Federated
shall return all such Confidential Information to ICCC upon
termination or expiration of this Agreement, unless Federated
is required to maintain such Confidential Information under
applicable laws, rules or regulations.
(e) If ICCC shall provide Federated direct access to the Portfolio
Accounting System, Federated shall be fully responsible for
any and all consequences of the use or misuse of the terminal
device, passwords, access instructions and other means of
access to the Portfolio Accounting System which are utilized
by, assigned to or otherwise made available to Federated,
except to the extent attributable to any negligence or willful
misconduct by ICCC Federated agrees to implement and enforce
appropriate security policies and procedures to prevent
unauthorized or improper access to or use of such system(s).
ICCC shall be fully protected in acting hereunder upon any
instructions, communications, data or other information
received by ICCC by such means as fully and to the same effect
as if delivered to ICCC by written instrument signed by the
requisite corporate officer of Federated.
5. Duties and Responsibilities of XxXX, Inc.
-----------------------------------------
(a) ICCC shall perform the Services in accordance with the Fund's
registration statement and all applicable laws, rules and
regulations.
(b) ICCC shall prepare and maintain, in complete, accurate, and
current form, all accounts and records (i) required to be
maintained under the federal securities laws; (ii) necessary
as a basis for calculation of the Fund's net asset value; or
(iii) reasonably requested to be maintained by Federated.
ICCC shall maintain such accounts and records in the manner
and for the periods required by law or for such longer period
as the parties may agree upon in writing. ICCC acknowledges
that accounts and records maintained by ICCC shall be the
property of the Fund.
(c) ICCC shall preserve the confidentiality of the accounts and
records required to be maintained under this Section 6. ICCC
shall not voluntarily disclose information contained in, or
relating to, such accounts and records to any other person
other than its own employees or agents who reasonably have a
need to know such information pursuant to this Agreement, or
as may be required by applicable laws, rules or regulations.
ICCC shall return all such accounts and records to Federated
upon termination or expiration of this Agreement, unless ICCC
is required to maintain such books and records under
applicable laws, rules or regulations.
(d) ICCC shall make available to Federated and the Fund for
inspection or reproduction within a reasonable time, upon
demand, all accounts and records of Fund maintained by XxXX,
Inc.
(f) ICCC shall assist the Fund's independent accountants, or upon
approval of Federated or Fund or upon demand, any regulatory
body, in any requested review of Fund's accounts and records
maintained by ICCC. ICCC shall be reimbursed by Federated for
all expenses and employee time invested in any such review
outside of routine and normal periodic reviews. Inspections
conducted by the Securities and Exchange Commission shall be
considered routine. (g) ICCC shall not have any
responsibility hereunder to Fund, Fund's shareowners or any
other person or entity for moneys or securities of Fund,
whether held by Fund or Fund's custodians.
6. Indemnification.
----------------
(a) FServ shall indemnify and hold ICCC harmless from and against
any and all costs, expenses, losses, damages (including
consequential, special and punitive damages), charges,
reasonable counsel fees, payments and liabilities (including
amounts paid in settlement, provided that FServ shall have
approved such settlement) which may be asserted against or
incurred by ICCC, or for which it may be liable, based upon:
1. FServ's refusal or failure to substantially comply with the terms
of this Agreement.
2. FServ's negligent or willful misconduct in connection with the
performance of its duties under this Agreement, or the
failure of any representation or warranty of FServ
hereunder to be and remain materially true and correct
at all times.
3. The failure of FServ to comply with applicable laws in connection
with the performance of its duties under this Agreement.
4. Any error, omission, inaccuracy or other deficiency in Fund's
accounts and records or other information provided by or
on behalf of FServ to ICCC, or the failure of FServ to
provide, or provide in a timely manner, the transaction
or related information needed by ICCC to perform its
functions.
5. Payment of money by ICCC at the request of FServ, or the taking
of any action by ICCC at the request of FServ which
might make ICCC liable for payment of money; provided,
however, that notwithstanding this indemnification, ICCC
shall not be obligated to expend its own moneys or to
take any action to pay money except in ICCC's sole
discretion.
6. The legality of the issue, sale or purchase of any shares of the
Fund, the sufficiency of the purchase or sale price, or
the declaration of any dividend by the Fund, whether
paid in cash or stock.
7. The misuse, whether authorized or unauthorized, of the Portfolio
Accounting System to which ICCC provides FServ direct
access hereunder or by any person who acquires access to
such system(s) through the terminal device, passwords,
access instruction or other means of access to such
system(s) which are utilized by, assigned to or
otherwise made available to FServ, except to the extent
attributable to any negligence or willful misconduct by
XxXX, Inc.
8. ICCC's action or omission to act under this Agreement upon any
instructions, advice, notice, request, consent,
certificate or other instrument or paper which it
reasonably believes to have originated from FServ, the
Fund, the Fund's custodian, or the Fund's independent
public accountant and which it reasonably believes to be
genuine and to have been properly executed.
9. ICCC's action or omission to act under this Agreement in good
faith reliance on the advice or opinion of counsel
acceptable to both FServ and ICCC concerning the subject
matter of this Agreement.
10. ICCC's action or omission to act under this Agreement in good
faith reliance on statements of counsel to the Fund, the
Fund's independent accountants, and the corporate
officers of FServ or the Fund.
(b) ICCC shall indemnify and hold Federated and the Fund harmless
from and against any and all costs, expenses, losses, damages
(including consequential, special and punitive damages),
charges, reasonable counsel fees, payments and liabilities
(including amounts paid in settlement, provided that ICCC
shall have approved such settlement) which may be asserted
against or incurred by FIMCO or Fund, or for which it may be
liable, based upon:
1. ICCC's refusal or failure to substantially comply with the terms
of this Agreement.
2. ICCC's negligent or willful misconduct in connection with the
performance of its duties under this Agreement or the
failure of any representation or warranty of ICCC
hereunder to be and remain materially true and correct
at all times.
3. The failure of ICCC to comply with applicable law in connection
with the performance of its duties under this Agreement.
4. Any error, omission, inaccuracy or other deficiency in Fund's
accounts and records or other information provided by or
on behalf of ICCC to Federated, or the failure of ICCC
to provide, or provide in a timely manner, the
information needed by Federated to perform its functions.
5. Federated's action or omission to act under this Agreement upon
any instructions, advice, notice, request, consent,
certificate or other instrument or paper which it
reasonably believes to have originated from ICCC or
ICCC's independent public accountant and which it
reasonably believes to be genuine and to have been
properly executed.
6. Federated's action or omission to act under this Agreement in
good faith reliance on the advice or opinion of counsel
acceptable to both Federated and ICCC concerning the
subject matter of this Agreement.
7. Federated's action or omission to act under this Agreement in
good faith reliance on statements of counsel to ICCC,
ICCC's independent accountants, and ICCC's corporate
officers.
(c) A party shall not be liable under this Section 7 with respect
to any claim made against an otherwise indemnified party
unless the party seeking indemnification shall have notified
the indemnifying party in writing within a reasonable time
after the summons or other first legal process giving
information of the nature of the claim shall have been served
upon the party seeking indemnification. Failure to provide
notice as provided above shall relieve a party from liability
only to the extent that the party is actually harmed or
disadvantaged by the failure to provide timely notice, and
shall not relieve a party from any liability that it may
otherwise have without regard to Section 7. An indemnifying
party shall be entitled to:
1. participate, at its own expense, in the defense of an action for
which indemnity may be had against that party hereunder,
and
2. to assume control of the defense of an action for which the
indemnifying party may be liable hereunder if the
indemnifying party engages counsel agreeable to the
indemnified party to prosecute the defense; agreement to
the selection of counsel not to be unreasonably withheld.
(d) In the event of losses occasioned by the negligent error of
ICCC in calculating the Fund's net asset value, FServ shall
accept ICCC's offer to minimize or eliminate any resulting
monetary damages by employing such alternatives as
reprocessing fund shareowner transactions. ICCC shall bear
the reasonable costs of reprocessing such transactions.
7. Force Majeure. ICCC shall not be responsible or liable for its
---------------
failure or delay in performance of its obligations under this
Agreement arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control or ability to minimize
or redress, including, without limitation: any interruption, loss
or malfunction of any utility, transportation, computer (hardware
or software) or communication service; inability to obtain labor,
material, equipment or transportation, or a delay in mails;
governmental or exchange action, statute, ordinance, rulings,
regulations or direction; war, strike, riot, emergency, civil
disturbance, terrorism, vandalism, explosions, labor disputes,
freezes, floods, fires, tornadoes, acts of God or public enemy,
revolutions, or insurrection.
8. Procedures. ICCC and Federated may from time to time adopt
procedures as they agree upon, and ICCC may conclusively assume
that any procedure approved or directed by Federated does not
conflict with or violate any requirements of Fund's prospectus,
charter or declaration of trust, bylaws, any applicable law, rule
or regulation, or any order, decree or agreement by which the Fund
may be bound.
9. Term and Termination. This Agreement may be terminated:
---------------------
(a) by mutual agreement of all parties;
(b) at any time by the Company by withdrawing all of the Fund's
interest in the Portfolio;
(c) on not less than 90 days' prior written notice by ICCC to
Federated and the Fund; or Federated to ICCC.
(d) automatically in the event of the termination of the:
(1) Supervisory and Administrative Agreement between FIMCO
and Company dated February 22, 2002,
(2) Agreement for Fund Accounting Services, Administrative
Services, Transfer Agency Services and Custody
Procurement dated March 1, 1996; or
(3) Third Party Feeder Fund Agreement dated February 22,
2002, between FIMCO and XxXX, Inc.;
(e) Upon termination of this Agreement:
(1) Federated shall designate a successor (which may be
Federated) by notice in writing to ICCC on or before the
termination date.
(2) ICCC shall deliver to the successor, or if none has been
designated, to Federated, at ICCC's office, all records,
funds and other properties of Fund deposited with or
held by ICCC hereunder. In the event that neither a
successor nor Federated takes delivery of all records,
funds and other properties of Fund by the termination
date, ICCC's sole obligation with respect thereto from
the termination date until delivery to a successor or
Federated shall be to exercise reasonable care to hold
the same in custody in its form and condition as of the
termination date, and ICCC shall be entitled to
reasonable compensation therefor, including but not
limited to all of its out-of-pocket costs and expenses
incurred in connection therewith.
(f) The indemnification obligations of the parties set forth in
Section 7 shall survive the termination of this Agreement with
respect to any liability relating to actions or omissions
prior to the termination.
10. Notices. All notices, requests, instructions and other writings
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shall be deemed to have been properly given hereunder if addressed
as follows:
If to Federated:
Federated Investment Management Company/
Federated Services Company
0000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Attention: General Counsel
If to ICCC
Mutual Fund Services
BT Alex. Xxxxx Incorporated
Xxx Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxx
or to such other address as a party may designate, in writing,
to each other party.
11. Miscellaneous.
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(a) This Agreement shall be construed according to, and the rights
and liabilities of the parties hereto shall be governed by,
the laws of the State of New York, without reference to the
choice of laws principles thereof.
(b) All terms and provisions of this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the
parties hereto and their respective successors and permitted
assigns.
(c) The representations and warranties and the indemnification
extended hereunder, are intended to and shall continue after
and survive the expiration, termination or cancellation of
this Agreement.
(d) The confidentiality provisions of Sections 5.D. and 6.C. shall
continue after and survive the expiration, termination or
cancellation of this Agreement.
(e) No provisions of the Agreement may be amended or modified in
any manner except by a written agreement properly authorized
and executed by each party hereto.
(f) The failure of either party to insist upon the performance of
any terms or conditions of this Agreement or to enforce any
rights resulting from any breach of any of the terms or
conditions of this Agreement, including the payment of
damages, shall not be construed as a continuing or permanent
waiver of any such terms, conditions, rights or privileges,
but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.
(g) The captions in this Agreement are included for convenience of
reference only, and in no way define or limit any of the
provisions hereof or otherwise affect their construction or
effect.
(h) This Agreement may be executed in two or more separate
counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same
instrument.
(i) If any provision of this Agreement shall be determined to be
invalid or unenforceable, the remaining provisions of this
Agreement shall not be affected thereby, and every provision
of this Agreement shall remain in full force and effect and
shall remain enforceable to the fullest extent permitted by
applicable law.
(j) This Agreement may not be assigned by either party hereto
without the prior written consent of the other.
(k) Neither the execution nor performance of this Agreement shall
be deemed to create a partnership or joint venture by and
between Federated and XxXX, Inc.
(l) Except as specifically provided herein, this Agreement does
not in any way affect any other agreements entered into among
the parties hereto and any actions taken or omitted by any
party hereunder shall not affect any rights or obligations of
any other party hereunder.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective and duly authorized officers, to be
effective as of the day and year first above written.
Investment Company Capital Corporation
By: ________________________________
Name: ________________________________
Title: ________________________________
Federated Investment Management Company
By: ________________________________
Name: ________________________________
Title: ________________________________
Federated Services Company
By: ________________________________
Name: ________________________________
Title: ________________________________
Exhibit A
Financial Administration Service Analysis
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EXPENSES
1.0 Analyze Fund Expenses, Review Expense Accruals and Develop an Annual
Expense Budget 4 Times Per Year for All Funds (Fiscal Quarters and at Fiscal
Year End) XxXX, Inc.
a) Receive authorized fund invoices from Federated Fund Treasury ("FFT") and
forward to fund accounting for payment. Record paid expenses into a
tracking and budgeting module.
b) Reconcile paid expenses on fund accounting system to authorized expenses,
and expense accruals to the expense accrual authorization letter.
c) Calculate average net assets for budgeting purposes using actual net assets
year to date and projected year end assets provided by FFT. Calculate asset
based expenses and project other expenses based on information received
from FFT.
d) Update expense budget worksheet to calculate a new annual expense budget on
a fund and class level. Review fund budget, class expense differentials and
reimbursements for accuracy. Provide detailed explanation for any
variations from previous budget and identify budgeted amounts to be
challenged. Forward the challenge to FFT with rationale.
e) Submit proposed budget to FFT and request authorization to implement.
Implement new budget once authorization is received.
f) Prepare hypothetical expense analyses and budgets for new/start up funds
upon request.
Federated Fund Treasury
a) Authorize proposed budget and new expense accruals
b) Works with designated parties within Federated to obtain estimates for
annual expenses by category as well as responds to budget challenges
submitted by Administrator.
2.0 Verify Implementation of Authorized Expense Accruals on Fund Accounting
System XxXX, Inc.
a) Receive authorization to implement new budget/accruals, provide
authorization to Fund Accounting, and review accounting system for correct
implementation.
3.0 Expense Related Management and Control Reporting by Complex
XxXX, Inc.
a) Compile monthly summary of basis point accruals by type for all funds. Used
as a management reporting and control tool by Federated. b) Summarize daily
payments of asset based fees for the month, verify calculation for
accuracy, reconcile daily fees paid to total cash moved and report monthly
fees to the Federated's corporate finance area. Report used by Federated's
corporate finance area to reconcile cash received during the month.
INCOME AND CAPITAL GAIN DISTRIBUTIONS
4.0 Forecast Income and Expenses for a Twelve Month Period (Fiscal Year and
Excise Tax Year) and Recommend Amounts to be Distributed. Forecasts are updated
each Month or Quarter, as Required XxXX, Inc.
a) Forecast fund income and expenses based on actual or hypothetical
assets/portfolio.
b) Combine actual dividend and interest income with projected amounts for
the12 month period to forecast annual gross income. Combine income forecast
with annual budgeted and actual expenses to forecast net income.
c) Analyze income fluctuations and explain any variations (to one tenth of a
cent per share) to the monthly or quarterly dividend amounts. Review class
differential for appropriateness.
d) Provide summary of realized capital gains to FFT.
e) Review recommended distribution for accuracy and submit workup to FFT for
approval.
f) Upon receipt of distribution authorization, follow up with accounting and
verify that correct dividend per share is recorded on the ex and payable
dates.
g) Verify total dividend amounts recorded by Fund Accounting
Federated Fund Treasury
a) Review Dividend Recommendation for reasonableness.
b) Update Dividend Recommendation for applicable tax adjustments. c) Approve
distribution amounts and authorize payment.
OVERSIGHT
5.0 Review Fund's Net Asset Value Per Share and Accounting Records for
Reasonability XxXX, Inc. Daily
a) Review fund accounting data for questionable fluctuations in accounts
impacting NAV per share. Follow up and document resolution of any
exceptions.
b) Review NAVs for appropriate class differential. Monthly Review monthly
proof package prepared by Fund Accounting and follow up on and document
resolutions to questionable items Other
a) Review non-standard journal entries and supporting documentation as
required.
b) Review NAV error forms, error analysis and explanation prepared by Fund
Accounting. Submit to FFT for approval of recommenhded action.
PERFORMANCE STATISTICS: CALCULATION, REVIEW AND DELIVERY
6.0 Compile and Review Performance Statistics
XxXX, Inc.
a) Calculate and Review SEC standard total returns for one month, one quarter,
year to date, 1 year, 3 years, 5 years, 10 years and inception of fund.
Other returns may be calculated as requested. Compare returns across
classes for appropriate differential. Deliver final returns electronically
to Federated.
b) Calculate hypothetical, tax adjusted, off period, gross or predecessor
total returns regularly or as requested.
c) Detail review of income and other components of SEC yield as well as the
SEC yield itself for accuracy.
1) Detail review of income for fluctuation on a daily basis and question any
variations.
2) Compare yields to similar funds and question those outside of acceptable
tolerances.
3) Provide FFT with preliminary SEC yields for approval prior to release.
d) Calculate and review, on a daily basis, various distribution yields.
Deliver yields electronically to Federated.
e) Calculate hypothetical yields and grossed up yields regularly or as
requested.
f) Calculate after tax total returns per new SEC regulations
7.0 Monitor Electronic Delivery of Total Returns and Yields
XxXX, Inc.
a) Monitor/verify electronic delivery of daily yields and related data.
b) Monitor/verify electronic delivery of daily total returns and monthly SEC
yields.
c) Notify FFT of any delivery issues as specified in Federated specific
escalation procedure.
8.0 Provide Fund Performance Data to External Survey Companies
XxXX, Inc.
a) Coordinate with FFT to determine which external survey companies will be
provided with performance data and the frequency, I.e. monthly, quarterly
or semi-annually.
b) Prepare the required information and submit to external survey companies by
established deadline.
c) Establish and maintain a working relationship with survey companies to
assist with issue resolution when a fund has a discrepancy in a published
report.
TAX RELATED SERVICES
9.0 Apply Tax Adjustments, Prepare Form 1099 and Generate Tax Reports
XxXX, Inc.
a) Prepare 1099 reports for fund expenses paid.
b) Prepare tax analysis to make tax adjustments and develop disclosures for
fund financial statements.
c) Develop financial statement 93-2 ROC-SOP adjustment.
d) Perform Massachusetts gain/loss calculations and report to FFT by
established deadline.
e) Perform dividend received deduction calculation and report to FFT by
established deadline.
f) Perform qualified 5 year gain calculation and report to FFT by established
deadline.
FINANCIAL REPORTING
10.0 Plan and Coordinate Financial Reporting Projects and Audits
XxXX, Inc.
a) Shareholder Report, Prospectus and SAI production scheduling for both
audited and unaudited reports in conjunction withFederated's Legal and
Typeset departments.
b) Pre-audit planning and scheduling.
c) Address issues identified during Administrator's review of 5 and 11 month
audit packages.
d) Preparation of audit confirms.
e) Coordination of timely audit package handoffs to auditors.
f) Respond to audit requests and questions.
g) Review and recap audit performance after each cycle Federated Fund Treasury
a) Serves as main contact for any significant issues or problems during the
audit
b) Signs management representation letter
11.0 Prepare and Review Annual and Semi annual Shareholder Reports,
Prospectus and SAIs DeAM, Inc.
a) Prepare and Review draft financial statements.
b) Foot, tic and tie, and cross reference disclosures throughout each report
draft.
c) Review to ensure complete and accurate disclosures are included, which
appropriately reflect fund activity and portfolio transactions that
occurred during the reporting periods.
d) Perform comprehensive review to ensure disclosures capture the most
recently mandated GAAP, SEC and N1-A rules and regulations.
e) Perform analytical review of asset based fees to tie to Note disclosure.
f) Perform analytical review of per share and ratio disclosures at a class
level, which ensures results appropriately reflect reporting period
operations and class differences.
g) Prepare adjustments under SOP 93-2 from the Fund's Tax Provision (as
prepared by Federated Fund Tax) and incorporate within Financial
Statements.
h) Incorporate other tax disclosures, based on Federated preferences,
utilizing the Fund's Tax Provision.
i) Provide information to Federated to facilitate preparation of President's
Message in the Shareholder Report.
j) Review President's Message for consistency with other areas of the
Shareholder Report.
k) Collect, evaluate and consolidate first draft comments from all parties
(Federated Legal, Portfolio Manager and Fund Treasury comments plus
comments from fund's independent auditors) and submit to printer for second
draft.
l) Review second proof and either release to print, or review and approve
final page proofs for a timely release.
m) Maintain database of indices utilized for MD&A charts.
n) Maintain database of standard Notes to Financial Statements.
12. 0 Preparation and filing of N-SAR, Calculation of 24-f 2 Share
Registration Fee XxXX, Inc.
a) Prepare and electronically file Form N-SAR Semi-annually
b) Draft a calculation of SEC Share Registration Fee pursuant to Rule 24(f)-2.
Submit draft to FFT for approval and signature.
OTHER
13.0 Monthly/Quarterly Marketing Literature (portfolios)
XxXX, Inc.
a) Prepare monthly/quarterly listing of portfolio securities as instructed by
Federated.
b) Provide to Federated in electronic format for posting on website.
MONTHLY SERVICE QUALITY REPORTING TO CLIENT
14.0 Compile and Review Monthly Performance Quality Report
XxXX, Inc.
a) Prepare and deliver monthly status report for reporting progress and
timeliness for financial reporting projects.
b) Prepare and deliver monthly status report summarizing timeliness and
quality of expense budgets delivered.
c) Prepare and deliver the monthly report card summarizing quality and
timeliness for all services delivered.
Fund Accounting Service Analysis
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EXPENSES
Calculate daily expense accruals
Post expense accruals to general ledger
Verify postings
Funding of xxxx payments
Posting of xxxx payments
Reconciliation of expense balances
Determine adjustments/reclasses to expense accruals
Research/resolve differences
CAPITAL STOCK
Posting of capital stock activity
Verify accuracy of transmission/data from transfer agent
Move capital stock funding
Posting of capital stock funding entries
Verify capital stock account balances
*Receivables
*Payables
*Paid in surplus
*Par value
*Broker commissions
Posting of share balance
Reconciliations of share balance
Research capital variances
Posting adjustments
INCOME DISTRIBUTIONS
Posting of distribution
Verify account balances
*Income distribution payable
*Capital gains distribution payable
*Distributions paid from income
*Distributions paid from capital gains
Authorization of cash movements
Funding of distributions
Calculation of reinvestment amounts
Authorization of reinvestments
Posting of reinvestment shares and dollars
Verification of all affected account balances
Research/resolve differences
Posting of distribution adjustments
Resolve all over/under distributions
PRICING
Input published funds to NASDAQ Inform transfer agent of funds' NAV Prepare
necessary documentation in the event of an NAV error. (capital stock activity,
recalculate NAV, etc.)
MONTHLY SERVICE QUALITY REPORTING TO CLIENT
Prepare and deliver monthly status report summarizing:
*pricing accuracy
*open trades over 30 days
*securities out for transfer
*cash exceptions
*provide reports for marketing literature
*provide month end trust balance
