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Cash Items in Process of Collection (CIPC) Exercise

Cash Items in Process of Collection (CIPC) Exercise. Explain how to report Cash Items in Process of Collection (CIPC) in line item B.2 on the FR2900 report using a comprehensive exercise. *Please note that this presentation is focused on the float portion of CIPC.

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Cash Items in Process of Collection (CIPC) Exercise

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  1. Cash Items in Process of Collection (CIPC) Exercise

  2. Explain how to report Cash Items in Process of Collection (CIPC) in line item B.2 on the FR2900 report using a comprehensive exercise. *Please note that this presentation is focused on the float portion of CIPC. What can this presentation do for you?

  3. first, let’s talk about float…

  4. “Float” and CIPC What is float and how is it reflected on the FR 2900? • A check written on another depository institution, where the depositor has been given credit, but the payment has not been credited to your institution. • Float is considered Cash Items in Process of Collection and is reported in line item B.2.

  5. Now we begin the cipc exercise…

  6. Let’s start with a simple cash letter…

  7. Total cash letter for $100,000.00 sent on Tuesday (close of business) 3/8.

  8. This much of Tuesday’s cash letter will be available on Wednesday 3/9, leaving $10,000.00 deferred. *Immediate creditis usually granted the next business day. The rest of the cash letter still in process is deferred.

  9. This much of Tuesday’s cash letter will be available Thursday 3/10, leaving $2,000.00 deferred.

  10. This much of Tuesday’s cash letter will be available on Friday 3/11, leaving ZERO deferred.

  11. Breaking down the 3/8 cash letter… $2,000.00 is credited by the correspondent on 3/11 and subtracted from deferred balances, leaving zero deferred $90,000.00 is credited by the correspondent on 3/9 and subtracted from deferred balances, leaving $10,000.00 deferred $8,000.00 is credited by the correspondent on 3/10 and subtracted from deferred balances, leaving $2,000.00 deferred Total cash letter on 3/8 for $100,000.00 deferred

  12. Now, we’ll look at cash letter details for multiple days

  13. So let’s put this all together… B.2: 326 B.2: 242 B.2: 33 B.2: 185 B.2: 100 Note: This exercise assumes no float or other deferred items prior to 3/8

  14. Additional Comments… • While float makes up the majority of what is reported in line item B.2, other items are reported as well, including, but not limited to, the following: • Returned items drawn on other depository institutions • Unposted debits • Matured bonds/coupons • Please reference the FR 2900 Instructions and the Common Errors document for more detail.

  15. Questions??? Please contact your regular FR 2900 analyst with any additional questions or concerns. Link to FR 2900 Contacts

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