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Revised Guide Helps You
Prepare Accurate Deposits

If bankers were asked to list their most arduous tasks, check preparation would probably rank among the very top. Although not overly difficult, procedures for preparing cash letters can be time-consuming and labor-intensive.

To help make this task less cumbersome, the St. Louis Fed is updating a manual that will outline very specific procedures for preparing your check deposits. This guide can be used by all Eighth District financial institutions, regardless of the Fed office you deposit with. It could serve as a training tool for teaching new employees how to prepare your outgoing Fed cash letters or as a means for reviewing procedures with your existing staff. On our end, it will help the Check Department process your work more quickly and accurately, with the ultimate goal being to reduce errors and adjustments.

Look for this manual later this spring. In the meantime, we've put together some tips to help you when preparing check deposits.

Encoding

• When you discover an encoding error before the check leaves your institution, change all tape and cash letter totals and correct the encoding on the check (strip or carrier). Often, tape totals are changed, but checks remain encoded for the incorrect amount.
• If checks are not encoded, make sure this fact is written in a visible location on the cash letter.
• Check your encoding ribbons frequently--broken encoding is one of the main causes of rejects.
• Inspect checks for readable encoding before sending them to the Fed. Make sure encoding is clear and bold, not light or broken.

Bundle Preparation

• If preparing multiple bundles, recap the bundles with a tape listing.
• Separate the bundles for each cash letter using dividers that are easily recognizable. Match tape listings to the bundles. It is not necessary to list multiple bundles on the cash letter if a tape list of all bundles is attached.
• Include no more than 325 items in a bundle.
• If bundles are not presented in a box, secure them with rubber bands.

Cash Letter Forms

• Complete the entire cash letter form properly, including your institution's name and full nine-digit routing number, as well as your correspondent's name and routing number.
• Ensure all cash letter forms clearly indicate the work type. For example, return cash letter forms have several boxes to check to identify the deposit type. These boxes should be marked to inform us of what availability to give the work.
• Place cash letter forms face up on the outside of the bundle, not between bundles.

Cash Letter Preparation

• Package different deposit types separately (e.g., Mixed, Other Fed, RCPC, City, etc.) and clearly label the work type.
• If your cash letter consists of more than one bag or box, clearly label each 1 of 2, 2 of 2, etc.
• If your cash letter exceeds 10 bundles, use a box for the deposit. If the box isn't completely full, insert filler material or secure all bundles with rubber bands. When putting a cash letter in an envelope, put a rubber band around the checks before placing them in the envelope.
• If work needs to be marked as ECL, SDS, HDGS, etc., with a sticker or stamp, ensure that either the cash letter or the box is marked instead of the bundle listing.
• Make sure item counts are on each cash letter.

Miscellaneous

• If you receive an item in your Fed cash letter that is not drawn on your institution, it should not be included in your deposit back to the Fed that night. Instead, send it to the Adjustments Unit using the new Not Our Item (NOI) form.
• Ensure your endorsement is clear and in the proper location.
• Ensure tape listings are legible.
• Ensure all checks are face up and stacked in the same direction.

  Future issues of Payments Quarterly will contain more deposit tips. These procedures, albeit detailed, reduce mistakes and help us when processing your items. Problems with your cash letters increase the chances of deferred credit and, subsequently, raise your costs; following these procedures will help ensure we provide you with the best check-clearing services possible. If you have any questions, please contact your account executive or customer service representative (listed on back page).

   

District to Use Standard Check Forms

To simplify its check deposit procedures, the Eighth District is standardizing all cash letter forms. Later this spring, each office will start using the new forms, which are only slightly modified from the current versions. The new forms will be phased in as the old ones run out, so you will be sent the revised forms when you request new quantities.

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