B.2. Cash Items in Process on Collection CIPC

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B.2.Cash Items in Process on Collection (CIPC)

• Julie Powell, Business Specialist
• 216/579-2085

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CIPC

• Why are assets collected on a deposits report?
• Give credit when credit is given
• Reduce reservable liabilities

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CIPC

• What is a cash item? True or False
• __ A U.S. ten dollar bill?
• __ The most abused item on the FR 2900?
• __ Checks written against your depository
  institution?

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CIPC

• What is a cash item? True or False
• _F_ A U.S. ten dollar bill?
• _T_ The most abused item on the FR 2900?
• _F_ Checks written against your depository
  institution?

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CIPC

• What are includable items
• Checks written on other DIs that have not been
  paid
• Unpaid checks drawn on the Treasury
• Checks that will be forwarded for collection on
  the next business day
• Others (money orders, travelers checks, food
  coupons)
• Returned Items define
• Unposted debits define

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CIPC

• Returned Items
• Items drawn on another depository
• Some irregularity or defect
• May cause a loss to the returning depository
• Exclude
• Checks or drafts returned for insufficient funds

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CIPC

• What are unposted debits
• Cash items that have been paid or credited but
  have NOT been charged against deposits
• Are includable until charged against deposits

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CIPC

• What is float and how do you deal with it?
• A check written on another depository
• Where the depositor has been given credit
• But the check has not been paid
• You have given credit but not received credit

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CIPC

• There are a variety of schedules used by those
  who clear checks
• Immediate credit careful how immediate is it?
• Deferred credit for how long?
• Lets calculate

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The funds are sent to your bank
A customer makes a deposit
The check is written on another bank
You send the check to the FRB for clearing
The bank sends funds to the FRB to cover the check
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When would float begin?
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The day you credit the deposit
When would float begin?
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When would float end?
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The day you receive credit
When would float end?
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What would happen to your float calculation if
the FRB gave you immediate credit?
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Immediate credit is usually the next business day
research your vendors process still 1 day of
float.
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CIPC Exercise
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Only this balance will be available on the next
business day
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11/4
11/3
11/2
11/1
Only this balance will be available on the next
business day
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Your Turn
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CIPC

• Common report errors
• Teller outages
• NSF returns
• Suspense accounts
• Other Assets
• Reporting zero or negative balances
• Legitimate differences will be covered with Vault
  Cash

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CIPC Questions?