1. Office Managers, Finance & Accounting Conference May 20 – 21, 2010 Heidi Chafe, CoBank AVP & Senior Cash Management Consultant

2. Cash Management Objectives Key Areas of Cash Management – Services to Meet Objectives Developments in Banking Services Agenda 2

3. Cash Management Objectives Optimizing how your dollars are utilized each day is key to making your money work for your cooperative and your members…  Optimize the use of your cooperative’s cash  Minimize borrowing expenses  Maximize investment income  Enhance efficiencies  Reduce administrative and operating costs  Maximize control – system users, cash application & float 3

4. Key Areas of Cash Management: Collections Objectives:  Accelerate inflow of funds  Reduce clearing and mail float  Update accounts receivable  Manage & enhance control - system users and cash flows Services to accomplish your objectives:  Remote Deposit – Image Cash Letter and/or Remote Deposit Capture  Lockbox Services  ACH Customer Billing  Merchant Services 4

5. Key Areas of Cash Management: Concentration Objectives:  Reduce idle account balances  Simplify management of your cash  Gain greater control of funds flow  Maximize return opportunity  Reduce borrowings Services to accomplish your objectives:  Investment and/or Loan Sweep  Automated Cash Concentration - bank-to-bank sweep  Increase investments 5

6. Key Areas of Cash Management: Disbursement Objectives:  Manage the use of your funds  Extend or control float – “just-in-time” funding  Timely information  Ensure payment matches  Prevent fraud & errors Services to accomplish your objectives:  Controlled Disbursement  Positive Pay Fraud Protection – Checks & ACH  Paid Check Imaging 6

7. Developments in Banking Services Services now afforded by technology & legislation:  Check 21/Truncation – Remote Deposit Services  Scan checks upon receipt in your office  Submit your deposit electronically to your bank account – by image or file  Eliminates the need to make a trip to the bank and offers extended deadline  Advantaged availability on deposited funds  Check Conversion & Electronic Checks – Merchant Services  Process checks through a terminal at the counter and settle the transaction as an ACH transaction  Employ account verification and/or funds guarantee 7

8. Remote Deposit – Scanning Equipment 8

9. Remote Deposit – IRD Sample Check 21: Sample IRD or “Substitute Check” 9

10. Contact Information Heidi Chafe Senior Consultant Cash Management / eCommerce (303) 740-4029 hchafe@cobank.com 10