Cash Management Workshop presentation by Lyndie Fasold, Citigroup

1. Cash Management Solutions for the
Real Estate Industry
Presented by:
Bernadette Knight, Treasury Product Sales Manager, SVP
Lyndie Fasold, Treasury Product Consultant, VP
INVESTMENT AND INSURANCE PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE

2. Agenda
• Introduction
• Challenges of the Real Estate Industry
• Cash Management Solutions & Flow
• Cash Management Product Offerings for Real Estate Industry
• Questions & Answers
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3. Challenges of the Real Estate Industry
 Managing information on bank accounts
 Collections from tenants
 Streamlining the payment process
 Bank account reconciliation
 Safeguarding bank accounts
 Segregation and reporting of tenant funds
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4. Treasury Cash Management Solutions
Work with clients to help manage the complexity of today’s business environment
through the development of credit and cash management solutions that are designed to:
• Minimize Risk
• Maximize Returns
• Increase Operational Efficiency
Regardless of your company’s technology level, financial institutions offer a suite of
solutions for each step of the way.
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5. Cash Management Flow
Include customized summary
Investments
Check Check
Collection Disbursements
Lockbox
Mail
Deposit
ACH ACH
File
Manual
Wire Wire
Domestic Borrowings
International
Electronic Banking
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6. Electronic Banking
The power of information is delivered via Online Banking
 Accurate, real-time account information reporting daily
 Virtual Access via the Internet
 Convenience, available 24/7 - when and where you
need it
 Constantly reviewed and updated security features
 Information Reporting
- Reporting of Account Balances and Transaction Details
- Notification of Same Day Account Activity
(Wires and ACH)
- Positive Pay Exception Report (Fraud
Prevention Tool)
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7. Electronic Banking
The power of information is delivered via Online Banking
 Transaction Initiation
- ACH Origination
- Foreign and Domestic Wire
Transfer Initiation
 Additional Modules
- Transaction History Retention
- Bill Payment Capability
- Various Transaction and Cash
Management Reports
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8. Electronic Banking
Payment Services
Funds Transfers - Domestic Automated Clearing House (ACH) Services
Manage time critical payments with confidence Cost effective payments with next day
• Same day availability availability
• Initiate with ease via the Internet • Reduce cost and float vs. paper remittances
• Move domestic and international funds through • Convenient and secured delivery channels
a single sign-on via the Internet or direct transmission
• Ability to set multiple layers of security available • Various payment applications
• Schedule recurring and future-dated domestic – Direct deposit of payroll
wire transfers – Vendor payments
Funds Transfer - International – Expense reimbursement
– Pension / dividend / commission
• Issue payments in over 90 currencies payments
• Real time online foreign currency exchange
quotations
• Array of Applications include:
– International employee compensation
– Commercial payments
– Overseas expenses
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9. Electronic Banking
Control / Fraud Prevention
Two-Factor Token Authentication at sign-on
 In addition to entering a user ID and password, users enter a token generated password during sign-on
and when processing certain financial transactions.
128-bit SSL Encryption
Account / User Administration
 System administration capabilities including “Tiered” system administration to allow assigning one of six
levels of authority to designated administrators; Maker-Checker capability is also available for
administrative transactions
 System administration audit report & user entitlement report
Account / User Administration – Business Settings
 Tailor system time out period
 Set and adjust password expiration period for business
Wire Transfer / Transfer Approvals & Models
• Multiple approval levels possible to segregate transaction initiation/release authority
• Wire models available
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10. Collections - Lockbox Overview
Lockbox Services are ideal for companies looking to accelerate and automate
the receivables process.
 Nationwide hub with strategic sites
– Los Angeles, CA
– Dallas, TX
– Chicago, IL
– New Castle, DE
– Uniondale, NY
 24/7 operation at all sites processing over 40 million payments per month
 Use of unique zip codes to maximize cash flows
 Use of advanced, image-based processing platform
– Reduce collection float
– Provide timely and accurate
information of receivables
Uniondale, NY
 Check & invoice data capture Chicago, IL
for upload into A/R system New Castle, DE
Los Angeles, CA
 Near real-time internet access
to checks & remittance information Dallas,TX
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11. Collections - Lockbox Overview
How Does Lockbox Work?
Payment mailed USPS Courier Pick-up LBX Processing Facility
• Dispatch
• Data transmission
• Integration with other A/R
• Images via CD-Rom
Data delivery to Customer Data is consolidated
And into the payment
system for collection
Checks go to the transit process
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12. Collections - Lockbox Overview
Key Features Benefits
 Imaging technology  Maximized funds availability
– Front and back view of checks, coupons – Reduced mail, processing and
and wholesale remittance documents, availability float
including invoices and correspondence, – Accelerated check clearing
and envelopes – Multiple daily deposits
– Online images available next day
 Simultaneous access to multiple users  Optimized mail collection
– Images of critical documents provided to – Up to 11 post office pickups daily
multiple users within your company – Unique five-digit zip code reduces sorting
simultaneously via CitiBusiness Online time at post office
– High-speed sorters read and automatically
 Seven-year archive sort to the box level
– Transactions available online immediately
for 90 days
– Transactions aged over 90 days are
available within four to eight hours of query
– Variable online image retention option is
available for up to 120 days
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13. Collections - Remote Check Deposit
Remote Check Deposit * is a fast, reliable way to take advantage of all Check 21 has to offer – the
convenience and security of making image-enabled deposits directly into your Citibank account without ever
leaving your office
Benefits
• Efficient – Significantly speeds collections and eliminates the photocopying or microfilming
involved in preparing checks for deposit
• Convenient – Virtually removes all geographic limitations and extends same day deposit
window with cut-off times to 8:00 pm local time
• Streamlined – Consolidates deposits, decreases clearing times and provides faster
notification of returned items.
• Cost Effective – Virtually eliminates trips to the branch, courier expenses and mail float, as
well as reduces account and deposit adjustment fees.
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14. Collections - Remote Check Deposit
Remote Check Deposit (RCD) Overview
How Does RCD Work?
1. Connect a piece of hardware called a check Things to Consider:
scanner to your desktop/laptop, similar to • Maximum items per deposit patch –
connecting a printer. 300 Items
• One scanner to one PC
• Need to develop a process
2. Scan checks to manage and maintain
original checks
3. View images online via an internet base application
4. Approve, adjust, rescan as necessary
5. Transmit images for deposit
• One/many locations can deposit to one/many accounts
• Unreadable images will not be accepted for image deposit
• Variable “maker/checker” options
• No direct access to deposit account
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15. Collections - Remote Check Deposit
Substitute Check (IRD)
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16. Collections/Payments - ACH Origination
ACH transactions are electronic, value-dated debits or credits that are exchanged among
participants. The Automated Clearing House Network can reach virtually every financial institution in the
United States.
Citibank is a leader in providing ACH Origination Services, regularly ranking among the top
providers in volume according to rankings published by the National Automated Clearing House
Association (NACHA). In 2008, Citibank initiated an average of 10.2 million ACH credits and 60 million
ACH debits monthly carrying a total value of approximately $70 billion USD.
• Files can be initiated online or via direct transmission
• Reduce cost and float vs. paper remittances
• Support for direct debit, payment, tax and direct deposit applications
• Secure options for transaction initiation
• ACH return information is available via electronic banking
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17. Account Reconciliation Services
Reconciliation plans designed to meet your risk management requirements.
LOW RISK HIGH RISK
Positive
Full Pay
Partial
Basic
Basic Reconcilement
• Monthly statements of check issued
Partial Reconcilement
• Detailed information on all checks paid to your account
Full Reconcilement
• Checks are matched against issue file provided by client
Positive Pay
• Checks matched against issue file provided by client
• Discrepancies / exceptions reported to client for payment decision
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18. Account Reconciliation Services & Safeguarding Accounts
Reconcilement Services and Reporting
Basic Reconcilement Service
Paid Check Listing Summary by Transaction Report
Partial Reconcilement Service
Paid Check Listing Duplicate Checks Report Stop Payments on File Report
Summary by Transaction Report Reversal Report Stop Payments Placed Report
Paid Checks Proof of Report Stop Payments Deleted Report
Full Reconcilement Service (All Basic and Partial Reconcilement Reports Plus):
Back-Value Detail Report Paid and Outstanding Checks Report Issuance Listing Report
Proof of Outstanding Report Outstanding Checks Report Paid Without Issuance Report
Positive Pay Service
• Issuance Information received daily or at time of check issuance
• Paid information matched daily: Amount, Check Serial Number and Payee
• Unresolved exceptions reported to customer for “Pay or No Pay” decision
• Key product for reconciliation and fraud protection
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19. Account Reconcilement Services
Sample file upload screen
Sample decision screen
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20. Safeguarding Accounts - ACH Services
Minimize fraud with ACH Blocks & Filters
ACH Debit Block
An ACH Block is a systemic means to force the return of any debit sent via the Automated Clearing House
to a DDA prior to posting of the entry.
• How does it work: Accounts flagged for this service will have all debit entries automatically returned
to the sending bank as "Not Authorized".
ACH Debit Filter
ACH Filter Service is essentially a Block on an Account plus electronic authorization(s) per client
instructions allowing certain Debits to pass on to posting.
• How does it work: An ACH Filter is a systemic means to selectively allow debits to pass into posting
based on predetermined criteria such as sending company ID and maximum dollar amount allowed.
Items that do not pass the criteria will be returned to the sending bank as "Not Authorized".
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21. Security Deposit Accounts
Control tenant funds with ease and confidence
Via an Online platform you can manage tenant funds in segregated accounts
• Maintain Control account in the name of the property and Sub accounts for each
tenant
• Interest credited monthly
• 1099 tax information mailed to Control or Client account holders
• Consolidated Account Statements containing the Control and all linked Client
accounts are mailed to Control account mailing address
• Online sub account opening
• No fee or service charge
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22. Thank You!
Bernadette Knight – 718.248.3092 Bernadette.Knight@citi.com
Lyndie Fasold – 203.975.6122 Lyndie.Fasold@citi.com
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23. Important Disclosures
Citigroup Inc. (Citigroup) and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it
is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer
should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
All banking, commercial loans and credit lines are provided by Citibank, N.A. (Citibank), an equal opportunity lender, or its banking or lending
affiliates. All credit products are subject to satisfaction of Citibank’s underwriting guidelines and credit approval. Fees and conditions, including
minimum balances, apply to some products and services. Some products and services are provided by third parties not affiliated with Citibank, N.A.
Citibank, N.A. is not responsible for such parties’ performance.
Securities are offered through Citigroup Global Markets Inc. Member SIPC.
©2009 Citigroup Inc. Citibank, N.A. Member FDIC. CitiBusiness, Citi and Arc Design and Citibank and Arc Design are trademarks and service
marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. Citibank, N.A. and Citigroup Global Markets Inc. are
affiliated companies under the common control of Citigroup Inc.