If an agency has insufficient funds to make an annual interest payment to Treasury at year-end, it should initiate an additional borrowing effective the last business day of the fiscal year to make the interest payment. Also, reconciling intra-governmental transactions is the responsibility of Federal Program Agencies. OMB and Treasury require agencies that invest through Fiscal Service to reconcile elements of their investments, including principal, original Discount and Premium, amortization of Discount and Premium, and interest revenue.
- Additionally, proceeds from Par-Value GAS Securities maturing on a non-Business Day are credited to the Government Investment Account as of the Maturity Date.
- However, if excess funds exist at any time, the agency may make an early repayment of principal.
- Agencies must not net the interest earned on uninvested funds against interest expense at year-end.
- Treasury uses the same rate for both the interest paid on borrowed funds and the interest earned on uninvested funds (refer to section 4635).
After the agency makes a valid contract with a non-federal borrower, it disburses the loan from the direct loan financing account TAS. These offsetting collections include inflows from non-federal sources only; they do not include inflows from federal sources. When the financing account TAS receives fees, principal, and interest from the public, and other miscellaneous receipts, the agency records collections in the CTA.
Federal Program Agencies should refer to TFM Volume I Part 2 Chapter 2000 for directions on how to complete and submit a NET. If the Federal Program Agency for a Government Investment Account requests Treasury to invest any monies in the account, the Federal Program Agency should segregate investment transactions from the normal receipt and expenditure transactions of the account in CARS. It is the responsibility of the Federal Program Agency in such circumstances to request Fiscal Service to assign a Subclass code to the TAS for the Government Investment Account to capture the investment data beyond the fund level. To report special transactions such as investments, Federal Program Agencies should use specialized Business Event Type Codes (BETCs) and/or subclass codes.
If the estimated subsidy is negative, the agency pays an amount equal to the negative subsidy from the financing account TAS to a general fund receipt TAS (AID 27XX.001) for that program when the non-federal lender disburses the guaranteed loan. If a subsidy reestimate for a cohort is downward, the agency records the amount of the reestimate and interest on the reestimate and pays an amount equal to the downward reestimate and interest on the reestimate to a different general fund receipt TAS (AID 27XX.003). If the estimated subsidy is negative, the agency pays an amount equal to the negative subsidy from the financing account TAS to a general fund receipt TAS (AID 27XX.001) for that program when the direct loan is disbursed.
An agency needing to borrow from the Secretary of the Treasury must first contact a member of Fiscal Service’s Federal Investments and Borrowings Branch (FIBB) to establish a loan agreement (see contacts). Quarterly, it is the responsibility of the Federal Program Agency for a Government Investment Account to use GTAS to reconcile and confirm account balances. If agencies have questions regarding reconciling intra-governmental transactions, they may contact the Federal Investments and Borrowings Branch (see contacts). It is the responsibility of the Federal Program Agency to specify the GAS Securities that are to be redeemed and the amount needed, or face amount of GAS Securities that are to be redeemed and the date on which the GAS Securities are to be redeemed. It is also the responsibility of the Federal Program Agency to ensure that the person submitting the redemption instruction is an official of the Federal Program Agency who is authorized to submit to Fiscal Service redemption instructions on behalf of the Federal Program Agency.
A three-digit agency identifier precedes both TAS (for instance, AID 53XX.001 and AID 53XX.003). Federal Program Agencies should refer to TFM Volume I, Part 4 (“Disbursing”) for guidance on requirements that apply to making payments of money by check or electronic funds transfer from all government accounts, including Government Investment Accounts. TFM Volume I, Part 4, also includes the contact information of the branch within Fiscal Service which addresses questions on disbursements.
Treasury Lockbox Network
Treasury Lockbox processing is accomplished by Treasury designated financial agents that provide lockbox and remittance services to the Treasury on behalf of federal entities. The financial agents are strategically located to minimize mail, processing, and collection float. Box (lockbox) established by the financial agent to collect federal entity mail for processing. The lockbox accelerates the deposit of funds into the Treasury’s account and provides secure, accurate, and efficient data capture of financial and remittance data.
Fiscal Service provides Federal Program Agencies with updated data monthly about the fund balance the Federal Program Agency maintains in the Treasury through the “GWA Account Statement” within CARS. After Fiscal Service has assigned a Subclass code to a new TAS, Fiscal Service will prepare and send to the Federal Program Agency a notice communicating the Subclass code for the account.
The IRS Lockbox Network handles business master file (BMF) and individual master file (IMF) tax transactions. The financial agents process the tax receipts and transmit information to IRS service centers. The financial agents also send to IRS the original tax forms that accompanied the transactions. (2) The notice shall either describe the commercial information requested or include a copy of the requested records or portions of records containing the information.
Factors of 5600 in Pairs
A federal entity cannot negotiate or implement, without prior approval of Fiscal Service, changes in the processing specification (as detailed in the SRS) and pricing. If a loan guarantee is in default, the agency pays the defaulted loan claim of the non-federal lender from the financing account. When the agency disburses an amount from the financing account TAS to the non-federal lender for defaulted loans, it records the loan claim payment in the CTA. On the paying agency’s CTA, agencies must report the TAS from which the money is being withdrawn. Because FIBB is a CARS Reporter, the amount received via the IPAC System is reported automatically to the receipt account on FIBB’s CTA based on the TAS and BETCs.
Certain statutes appropriate general revenues from the General Fund of the Treasury for deposit into special accounts established on the books of the Treasury by the statutes. These special accounts generally serve as accounting devices for tracking the receipts and disbursements of the federal programs authorized by the statutes. Treasury will review the annual appropriation acts and any supplemental appropriation act enacted by Congress to determine funding requirements approved by Congress.
Part 4A: Payment-Related Activities Within the Authority Granted to the U.S. Chief Disbursing Officer (CDO)
If the Federal Program Agency’s investment authority allows for certain investments subject to a public interest determination of the Secretary of the Treasury, such determination will be at the sole discretion of the Secretary. The Secretary will also consider, among other variables, the interest of taxpayers generally and the effects on the U.S. economy. Federal Program Agencies may instruct Fiscal Service to invest in GAS Security zero-coupon bonds. Fiscal Service will issue a GAS Security zero-coupon bond that is identical (except for transferability) to the selected marketable Treasury STRIPS interest or principal component in terms of Maturity Date. The initial purchase of any GAS Security zero-coupon bond must be in face amounts of at least $50 million, or in increments of $1 million face amount above $50 million.
Federal agencies without specific statutory authority to hold public money outside of the U.S. Treasury using one of the various mechanisms established by the Department of the Treasury, including, but not limited to, the Treasury General Account Network (TGA Network), General Lockbox Network, and Pay.gov. Please refer to Volume I, Part 5, Chapter 2000, Depositing Domestic Checks and Cash Received in Over the Counter Collections, which provides instructions for federal agencies to deposit domestic checks and cash.
Fiscal Service will enter Warrants into CARS to transfer the appropriated monies from the General Fund of the Treasury to the respective Government Investment Accounts on the books of the Treasury and compare the appropriation amounts to available OMB information. It is the responsibility of the Federal Program Agency to record the information in its internal accounting system. The Bureau of the Fiscal Service (Fiscal Service) will assist federal agencies with the appropriate mechanism for managing the inflow and outflow of public money. This discussion should occur prior to a federal agency issuing a Request for Proposal for collecting or disbursing public money.
Uninvested funds in the financing account consist of Fund Balance with Treasury from borrowings and/or offsetting collections not disbursed. Because agencies earn and pay interest on the fund balance at the same interest rate, there is zero net effect for borrowing early and on an estimated basis. Agencies must not net the interest earned on uninvested funds against interest expense at year-end. When a cohort has finished borrowing to make disbursements, an agency may consolidate all the borrowings from Treasury related to that cohort to obtain a single maturity date.
Treasury Reporting Instructions For Credit Reform Legislation
An agency records disbursements and collections resulting from pre-1992 direct loan obligations and loan guarantee commitments in the liquidating account TAS. Credit Reform did not change the treatment of transactions for pre-1992 direct loans and loan guarantees. When the government modifies a pre-1992 loan guarantee, I TFM PART 5 CHAPTER 4600 the loan guarantee becomes subject to credit reform accounting. The agency transfers the guarantee liability from the liquidating account to the financing account. It makes a one-time adjusting payment from the liquidating account TAS to the financing account TAS to acquire the guarantee liability.
If the government securities market is open on a federal holiday, Fiscal Service will be open to receive investment instructions from those Federal Program Agencies that are open and desire to invest funds. Federal Program Agencies desiring to invest funds on such days will follow the same operating procedures and deadlines unless notified otherwise by Fiscal Service. At times, Congress authorizes or requires by law a movement of monies from one government account to another. Because such a transfer does not have an impact on the federal budget surplus or deficit and does not involve an Outlay of funds from the transferring account, the transfer is referred to as a Non-Expenditure Transfer (NET). It is the responsibility of the Federal Program Agency for the transferring account to use the CARS Agency Transaction Module (ATM) NET application to process NET transactions.
The agency records all subsequent cashflows related to the loan guarantee in the financing account TAS. Agencies may borrow funds to meet default claims in excess of the loan guarantee financing account’s cash balance, negative subsidy in advance of expected collections from the public, or downward subsidy reestimates. The financing account borrows to finance the unsubsidized balance of the loan disbursement to non-federal borrowers. Agencies may borrow funds in advance of expected collections for the negative subsidy amount. The program account receives either a current definite, current indefinite, or permanent indefinite appropriation by warrant that provides budget authority to pay administrative expenses and subsidy costs. When a direct loan or guaranteed loan is disbursed or executes a positive subsidy modification or upward reestimate, the program account pays a subsidy to that financing account.
FAQs on Factors of 5600
Treasury and the Federal Program Agency for a particular Government Investment Account may agree to supplement or supersede the provisions of this chapter by means of a written Memorandum of Understanding (MOU) between Treasury and the Federal Program Agency. Anywhere that federal statute or an MOU directly conflicts with this chapter, the statute or MOU will prevail. (b) Submitter means any person or entity, including a corporation, State, or foreign government, but not including another Federal Government entity, that provides confidential commercial information, either directly or indirectly to the Federal Government. (a) Confidential commercial information means commercial or financial information obtained by GSA from a submitter that may be protected from disclosure under Exemption 4 of the FOIA, 5 U.S.C. 552(b)(4). The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR.