Depositary Authorization Quiz
32 Questions
0 Views

Depositary Authorization Quiz

Created by
@RicherFluxus

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which method must agencies use for deposit transactions if unable to access OTCnet due to contingency operations?

  • Electronic Wire Transfer
  • Automated Clearing House (ACH)
  • Mail-In Treasury General Account (MITGA) (correct)
  • Direct Bank Transfer

    • What minimum information is required in Block 6 of the OTCnet deposit ticket?

  • Account type, financial institution name, security code
  • Depositing entity's name, location, deposit preparer's details (correct)
  • Deposit amount, account number, signature
  • Transaction date, contact person, deposit method

    • What must an agency do after scanning negotiable instruments using OTCnet?

  • Deposit them directly into an approved bank
  • Destroy the scanned images immediately
  • Submit them for approval to the Treasury Department
  • Verify they reside within OTCnet within 14 days (correct)

    • Who is responsible for designating general depositaries for receiving public funds?

    <p>Local commanders at the base or station</p> Signup and view all the answers

    What is the primary advantage of making deposits to a Treasury General Account (TGA)?

    <p>It eliminates processing floats</p> Signup and view all the answers

    What is a requirement for deposits made through mail to a TGA?

    <p>They require authorization from the Treasury</p> Signup and view all the answers

    What must be done with scanned negotiable instruments after verification in OTCnet?

    <p>Destroy them</p> Signup and view all the answers

    Which of the following descriptions matches general depositaries?

    <p>Financial institutions specifically approved by the Treasury to maintain demand accounts</p> Signup and view all the answers

    What is the primary purpose of requests to deposit with a general depositary?

    <p>To obtain approval for collection deposits.</p> Signup and view all the answers

    What should a DO do if the need for a general depositary ceases to exist?

    <p>Advise DFAS-JJF/CO of the termination reason.</p> Signup and view all the answers

    What is the frequency requirement for deposits of $5,000 or more?

    <p>Deposits must occur on the same business day received.</p> Signup and view all the answers

    What is the role of limited depositaries according to the guidelines?

    <p>To receive deposits made by or on behalf of DOs for non-symbol checking accounts.</p> Signup and view all the answers

    When should deposits totaling less than $5,000 be made, according to the requirements?

    <p>Weekly, or when reaching $5,000.</p> Signup and view all the answers

    What email address should be used to send completed requests to deposit collections?

    <p><a href="mailto:[email protected]">[email protected]</a></p> Signup and view all the answers

    What must a DO do before mailing deposits to the MITGA?

    <p>Establish depositary arrangements through the FRB of St. Louis.</p> Signup and view all the answers

    What is the established process for making deposits through OTCnet?

    <p>Establish the MITGA within OTCnet after approval.</p> Signup and view all the answers

    What happens to deposit tickets once they are released to a depositary?

    <p>They cannot be recalled, corrected, or resubmitted.</p> Signup and view all the answers

    What is the responsibility of the DO or designee regarding deposit differences?

    <p>They should reconcile differences promptly after notification.</p> Signup and view all the answers

    What does an overstated deposit ticket indicate?

    <p>The entered amount exceeds the amount of cash or instruments submitted.</p> Signup and view all the answers

    How should discrepancies in deposits be documented?

    <p>Evidentiary documentation must be retained following specific guidelines.</p> Signup and view all the answers

    What should the incoming DO do upon change of DOs regarding unresolved deposit differences?

    <p>Validate unresolved differences with documentation.</p> Signup and view all the answers

    What action should be taken if a departing DO cannot provide documentation for unresolved items?

    <p>Process the unsupported items as a loss or overage of funds.</p> Signup and view all the answers

    What is required if a deposit ticket is understated?

    <p>An additional deposit ticket must be issued for the shortage.</p> Signup and view all the answers

    How often should the DO or designee review the record of differences?

    <p>At least weekly to ensure all differences clear.</p> Signup and view all the answers

    Which component directly handles the secure transmission of payment information from the customer to the merchant's bank?

    <p>Payment Gateway</p> Signup and view all the answers

    In the transaction flow of payment processing, which step occurs immediately after the payment information is sent to the payment gateway?

    <p>Payment gateway encrypts data</p> Signup and view all the answers

    What type of bank account is specifically designed to facilitate business transactions and management?

    <p>Business Account</p> Signup and view all the answers

    What is one of the key features of savings accounts compared to checking accounts?

    <p>Interest accumulation</p> Signup and view all the answers

    Which entity processes credit and debit card transactions on behalf of the merchant?

    <p>Acquirer Bank</p> Signup and view all the answers

    Which aspect is NOT a part of account management as described in the content?

    <p>Participation in investment banking</p> Signup and view all the answers

    What is a primary function of card networks in the payment processing system?

    <p>To facilitate transaction authorization</p> Signup and view all the answers

    Which of the following is a feature that may vary based on the type of bank account and bank policies?

    <p>Interest Rates</p> Signup and view all the answers

    Study Notes

    Depositary Authorization

    • DOs formally request authorization to deposit collections with a general depositary.
    • The request must be submitted 35 calendar days prior to the desired deposit start date.

    General Depositaries

    • General depositaries are commercial banks or other financial institutions authorized by the Treasury to maintain a demand account in its name.
    • They are designated to receive deposits of public funds for credit to the Treasury General Account (TGA).
    • They can also provide cash to DOs for official disbursements.
    • DOs must only deposit public funds in an institution that is approved as a general depositary, except for limited depositaries.

    Limited Depositaries

    • Limited depositaries only receive deposits made by or on behalf of DOs for credit to their official non-symbol checking accounts.

    Deposit Frequency

    • Agencies must deposit receipts totaling $5,000 or more on the same business day received, prior to depositary cutoff time.
    • Deposits totaling less than 5,000maybeaccumulatedanddepositedwhenthetotalreaches5,000 may be accumulated and deposited when the total reaches 5,000maybeaccumulatedanddepositedwhenthetotalreaches5,000.
    • Deposits must be made by Thursday of each week, regardless of the amount accumulated.

    Deposit of Cash and Negotiable Instruments

    • Agencies may combine cash and negotiable instruments into one deposit using the OTCnet Deposit Reporting function.

    Required Information in OTCnet Deposit Ticket

    • Block 6 of the OTCnet deposit ticket must identify the depositing entity’s name and location, deposit preparer's name, email address, and phone number.

    Handling of Scanned Negotiable Instruments

    • After scanning negotiable instruments in OTCnet, retain the scanned items until verifying they reside within OTCnet and a good image is on file.
    • This must take place within 14 calendar days of scanning.

    Deposit Reconciliation - Discrepancies

    • A deposit ticket difference occurs when the amount entered on the ticket is overstated or understated.

    Overstated Deposit Ticket

    • Occurs when the amount entered exceeds the amount of cash or negotiable instruments submitted.

    Understated Deposit Ticket

    • Occurs when the amount entered is less than the amount of cash or negotiable instruments submitted.

    • Treasury regulations do not permit changing the amount on a deposit ticket or debit voucher.

    • The depositary must confirm a deposit as presented and immediately issue either a debit voucher for the amount of the overage or an additional deposit ticket for the amount of the shortage.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    DoD 7000.14-R Financial Management Regulation Volume 5, Chapter 11 PDF

    Description

    Test your knowledge on the procedures and requirements for depositary authorization. This quiz covers general and limited depositaries, deposit frequency, and important guidelines for disbursing public funds. Ensure you understand the rules for both types of depositaries and their functions.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser