Paper Check Conversion (PCC) Project
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Paper Check Conversion (PCC) Project. NACS/NASE National Convention June 25, 2007. Glen Richter Financial Management Division Financial Services Center Chief Farm Loan Operations Office. CCC’s Current Deposit Mechanism. Concentration Banking System Wire Transfers via FedWires

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Paper Check Conversion (PCC) Project

NACS/NASE National Convention

June 25, 2007

Glen Richter

Financial Management Division

Financial Services Center

Chief Farm Loan Operations Office

Ccc s current deposit mechanism
CCC’s Current Deposit Mechanism

  • Concentration Banking System

  • Wire Transfers via FedWires

  • CCC’s Lockbox at US Bank (St. Louis)

  • PCC Over the Counter (Pilot Program)

Pcc background
PCC - Background

The Paper Check Conversion (PCC) Project is part of :

  • FSA’s effort to transition to an all electronic and standardized environment for processing collections

  • The CFO authorized the pilot in December 2002

  • PCC’s purpose is to provide an electronic payment collection process, that withdraws money from the customer’s bank account and deposits it to FSA’s account

    • PCC is capable of retrieving check images if needed at a later date

  • PCC is used in conjunction with the US Treasury and the Cleveland Federal Reserve Bank

How will pcc be used
How will PCC be used?

  • Small electronic machines, similar to credit card machines, will be setup in the County Offices, equipped with software to perform the electronic payment process.

  • The County Office personnel will be trained to use the machines.

Pcc project benefits
PCC Project -- Benefits

PCC will:

  • Reduce the number of days for FSA to have access to funds

  • Reduce interest that is paid to US Treasury on FSA’s daily borrowing allowance (Anticipated savings is $60,000)

  • Reduces costs and staff hours associated with handling checks

  • Significantly reduces the number of delays or corrected deposits

  • Allows the ability to resubmit the EFT up to two times and can be designated for specific days

  • Increase ease in reporting activity; automatically emails activity statements to responsible areas of the agency

  • Reduces paper handling which minimizes processing , handling costs and the potential for human errors

  • Reduces lost/misplaced checks which improves relationships with customers and speeds check clearing processes

  • Provide an electronic record of the checks which can be used as an audit trail and also satisfy OMB, Circular A-123, Appendix A objectives.

What are ccc s goals with pcc
What are CCC’s goals with PCC?

  • Reduce the use of the Lockbox, which is slow and labor intensive

  • Modernize payment processes in accordance with President’s Management Agenda (PMA)

  • Save money on Treasury borrowings and other cost

Pcc project status
PCC Project— Status

  • The project was delayed because the software did not correctly scan the checks (problem with CCC checks)

  • Final approval for nationwide deployment was given by the Director of Financial Management Division on June 14, 2007

Present phase of pcc project
Present Phase of PCC Project:

Where does FSA go from here?

  • Approximately 1,000 machines were purchased, with 150 shipped

  • Deployment to counties will occur in groups of 100

  • Training Plans will be developed using the “Train the Trainer” process with input from Cleveland FRB and Financial Management Service (FMS)


  • Aligns FSA more closely with the

    President’s Management Agenda (PMA)

  • Machines already purchased

  • A successful pilot program was tested in 10 counties

  • Final approval granted June 14, 2007 for nationwide implementation

  • Expected savings for FSA are estimated at

    $775,000 per year (based on the current

    borrowing interest rate)