# Presentation: 041564

## ITS.gov

**Kansas City Financial Center**
**Ethan Cole, Financial Operations Supervisor**
**February 22, 2007**

## What is ITS.gov?

How does ITS.gov work?

Benefits of ITS.gov

Enhancements

Agency Implementation

**What is ITS.gov?**
**How does ITS.gov work?**
**Benefits of ITS.gov**
**Enhancements**
**Agency Implementation**

**Notes:**
Today, we will discuss what ITS.gov is, how it works, and why it is the e-government solution for international payments.  

We have been working diligently with the FRB of New York this year to continue to enhance ITS.gov.  We will go over what enhancements have already been put in place in ITS.gov and also what enhancements are planned in future releases in ITS.gov.

Finally, we will discuss how and when agencies can begin using ITS.gov and how we (KFC) are preparing to implement and rollout ITS.gov to agency users.

## E-government solution for international payments and collections

Web-based, secure payment application

Payments processed electronically or via check

Payments issued to 150+ countries

**E-government solution for international payments and collections**
**Web-based, secure payment application**
**Payments processed electronically or via check**
**Payments issued to 150+ countries**

**Notes:**
ITS.gov is the e-government solution for processing international payments and collections.  
(30 – check)
ITS.gov is a web-based international payment system.  Because it is internet based, users can access ITS.gov from any PC in the world.  

ITS.Gov enables Federal agencies to issue foreign currency payments electronically or via check to over 150 countries.  

Additionally, ITS.Gov enables agencies to issue international US Dollar wire transfer payments without a corresponding US financial institution.  

Through ITS.gov, FMS processes monthly recurring benefit payments, foreign payroll, vendor, and miscellaneous payments.

## FY 2006 Statistics
Processed 3.1 million payments*

Total US Dollar Value Processed - $12.2 billion*
		*includes benefit, salary, vendor, and miscellaneous payments

**FY 2006 Statistics**
- Processed 3.1 million payments*
- Total US Dollar Value Processed - $12.2 billion*
- 		*includes benefit, salary, vendor, and miscellaneous payments

**Notes:**
In Fiscal Year 2005, 2.7 million payments were processed through ITS.gov for over $2.4 billion dollars.  As you can see from these statistics, ITS.gov has shown to be the e-government solution for processing international payments. 

## How does ITS.gov work?

**Current Payment Process**

- Agency mails paper SF1166 to KFC

- KFC enters payment instructions

- KFC releases payments to FRB-NY for processing

- Recipient receives EFT payment within 2 business days.  Check payments received within 5-20 days.

- KFC creates accounting entries and detail reports (USD)

- KFC delivers reports

- Agency charged thru GOALS/RFC Agency Link

**How does ITS.gov work?**

- FRB-NY processes payment files

**Notes:**
The current international payment process through KFC works as follows:

Agency mails in paper SF1166 to KFC
KFC data enters and verifies payment into ITS.gov
KFC then releases payments to FRB for processing.  
FRBNY processes payments for settlement.  EFT payments settle in customer account by close of business two days after the process date.  Checks are received in 5-20 days depending on the in-country mailing system.
Also two days after processing, KFC charges the agency via GOALS/RFC Agency Link and mails the confirmation reports to agencies.  

## How does ITS.gov work?

- FRB processes payment file

- Recipient receives EFT payments within 2 business days.  Check payments received within 5-20 days.

- Agency enters payment information into ITS.gov

- Agency certifies payment in SPS

- KFC compares ITS.gov payment information to SPS certification

- KFC releases payments to FRB for processing

- Agency charged through GOALS/RFC Agency Link

**Payment Process After Agency Implementation**

- Day 1

- Day 1

- Day 1

- Day 1

- Day 1

- Day 3

- Day 3

**Notes:**
When ITS.gov is rolled out and implemented to agencies, the payment process will change slightly.

Agencies will enter and verify their payment information to ITS.gov.  
Once the agency has verified the payment to KFC in ITS.gov, they will enter ECS/SPS and certify that payments using a summary certification.  
KFC will receive the summary certification and compare it to the payments verified in ITS.gov.  
If the summary certification matches the ITS.gov payments, KFC will release the payments to the FRB for processing. 
FRBNY processes payments for settlement.  EFT payments settle in customer account by close of business two days after the process date.  Checks are received in 5-20 days depending on the in-country mailing system.
Also two days after processing, KFC will charge the agency via GOALS/RFC Agency Link.
Agencies will be able to access the confirmation reports directly from ITS.gov.  

-Eliminates the paper process
-Online reporting   

## 
FX Options
Variable to Fixed
Fixed to Variable
Fixed to Fixed (only US Dollars currently)

One or Two Levels of Verification

**FX Options**
- Variable to Fixed
- Fixed to Variable
- Fixed to Fixed (only US Dollars currently)
**One or Two Levels of Verification**

**Notes:**
Once the payments are processed to the FRB, they can use two types of settlement channels to process the payments.  
-The FRB maintains in-country service providers in some countries that process payments in one currency in that specific country.  
-They also maintain a service provider that can process payments to multiple countries in multiple currencies.  

-Currently, the majority of payments settle through their multi-country service provider.  
-In a future release, the FRB will build functionality that will allow them to analyze all of their service providers and choose the best service provider for each payment or payment type.  

Through ITS.gov, agencies also have options as to how they choose to indicate payment their beneficiaries.  
Variable to Fixed (pay 1000.00 Euros)
Fixed to Variable (pay 1000.00 USD to be converted to Euros)
Fixed to Fixed (pay 1000.00 USD)

## Role Based Access
Payment Creator – create payments only (Data Entry Operator)
Payor – create and verify payments (Certifying Officer)
Inquiry Only – view only payment information

Security
Treasury Web Application Infrastructure (TWAI)
In-depth C&A Process (TWAI and Application)

- _Payment Creator_ – create payments only (Data Entry Operator)
- _Payor_ – create and verify payments (Certifying Officer)
- _Inquiry Only_ – view only payment information
**Security**
- Treasury Web Application Infrastructure (TWAI)
- In-depth C&A Process (TWAI and Application)

**How does ITS.gov work?**

**Notes:**
Housed on TWAI (ASAP, Pay.gov)
ITS.gov has completed C&A process, as has the TWAI

-Role based Access
	- User functions separated
	- Data Entry
	- Verification
	- Releaser (KFC)
	- Inquiry only

## Offers worldwide connectivity through one easy-to-use application.  

Eliminates the need for U.S. correspondent financial institutions (i.e. extra handling and coordination between US bank and foreign bank).

Expedites payment settlement.

Increases the ability to process international electronic payments in emerging markets.  

- Offers worldwide connectivity through one easy-to-use application.
- Eliminates the need for U.S. correspondent financial institutions (i.e. extra handling and coordination between US bank and foreign bank).
- Expedites payment settlement.
- Increases the ability to process international electronic payments in emerging markets.

**Notes:**
Access anywhere in the world

Do not need correspondent financial institutions – i.e. intermediary banks

- Expedites payment settlement

- process payments in emerging markets – one source for international payments

- maximizes rates and agency cash management (make one currency purchase instead of 12 purchases)

- If necessary, agency can purchase currency quickly and easily.

- Compatible with agency file formats.  If agency wishes to send a file, KFC can accommodate this process.

- security technology.

## Benefits of ITS.gov

- Purchases the foreign currency amount at the time of payment at the most competitive rate possible, maximizing agency cash management.
- Provides fast and easy-to-use foreign exchange currency purchase capabilities.
- Compatible with current agency file formats and effectively handles exception processing.
- Employs the latest enhanced security technology.

## Two factor authentication

Online claims of non-receipt and stop payment processing

Reports functionality

Online returned payment information

Agency file transmission to KFC via ITS.gov

SWIFT Lookup Report – allows user the ability to query and verify international bank routing information

IBAN Validation – user can validate format of IBAN number provided by recipient

ITS.gov Help Page

- Two factor authentication
- Online claims of non-receipt and stop payment processing
- Reports functionality
- Online returned payment information
- Agency file transmission to KFC via ITS.gov
- SWIFT Lookup Report – allows user the ability to query and verify international bank routing information
- IBAN Validation – user can validate format of IBAN number provided by recipient
- ITS.gov Help Page

**Notes:**
In June, IDD.gov was renamed to ITS.gov.

-Agencies can choose between one and two levels of verification.

-SWIFT Lookup Report – Request for Wire Information, if agency is unsure of banking information, can lookup information via ITS.gov to confirm data provided

-Online Claims of Non-Receipt and Stop Payment Processing – eliminates paper forms

- Template functionality – if agency makes repetitive payments to beneficiaries, templates can be set up to eliminate need to repeat repetitive data for every payment

-DFAS Implementation – leverage DFAS volume to improve even further the exchange rates

## Future Releases
Special Handling Request processing 
Digital signatures
Online training
Migrate Low Value payments to ITS.gov
Agency file submissions to ITS.gov 
	(develop generic ITS.gov file format)
Interfaces with other payments systems (ASAP, IPP)
Payment Dispatcher

**Future Releases**
- Special Handling Request processing
- Digital signatures
- Online training
- Migrate Low Value payments to ITS.gov
- Agency file submissions to ITS.gov
- 	(develop generic ITS.gov file format)
- Interfaces with other payments systems (ASAP, IPP)
- Payment Dispatcher

**Notes:**
Scheduled for release 5.1 is the finalization of the online reporting functionality, including the ability to export the data

Additionally, agencies will be able to query and export returned payment information

Future Releases
FX rate availability prior to settlement – if needed for accounting purposes, agency profile can be set to 2, 3, 4, or 5 day rate
	- will be able to go into ITS.gov and see USD amount at time of 	payment processing
Digital signature functionality – this will eliminate need to send summary certification via ECS/SPS
Collections processing
Online training
Agency file submissions directly into ITS.gov
-Interfaces with other payment systems (ASAP, IPP)

## 
Agency users data enter and verify payments to KFC via ITS.gov, eliminating submission of paper SF1166

Enrollment
Training provided 
Minimum Requirements
Internet Explorer version 6.0 or higher
Two (2) formally designated Data Entry Operators (DEO) – one primary and one backup.  
Two (2) formally designated Certifying Officers (CO) – one primary and one backup.

- Agency users data enter and verify payments to KFC via ITS.gov, eliminating submission of paper SF1166
**Enrollment**
- Training provided
- Minimum Requirements
- Internet Explorer version 6.0 or higher
- Two (2) formally designated Data Entry Operators (DEO) – one primary and one backup.
- Two (2) formally designated Certifying Officers (CO) – one primary and one backup.

**Notes:**
Agency Implementation and Rollout is tentatively scheduled for April 2006, following Release 5.1.

Once implemented agencies will data enter and verify payments directly into ITS.gov, eliminating the submission of SF1166
	- improved payment efficiency

-When KFC begins implementation, the agency will be contacted 6-8 weeks prior to their implementation date
Training will be provided via WebEx (similar to SameTime)
In order to process payments via ITS.gov, the agency will need to have, at minimum,  two formally designated DEOs and two COs, one primary and one backup as well as IE 6.0 or higher

## 
Elimination of paper SF1166 expedites payment processing

International payments data at a single portal
Reports functionality with the ability to export data in common formats
Claims of non-receipt and stop payment request processing
Returned payment information

Worldwide access

**Elimination of paper SF1166 expedites payment processing**
**  **
**International payments data at a single portal**
**Reports functionality with the ability to export data in common formats**
**Claims of non-receipt and stop payment request processing**
**Returned payment information**
**Worldwide access**

**Notes:**
Implementing and rollout out ITS.gov to you, the agency, will allow you the take advantage of processing payments through ITS.gov.

Additionally, this will eliminate the submission of the paper SF1166 for international payments, which will improve the efficiency of processing payments for your agency.
	- will not have to wait on mail system to receive confirmation 	reports
Also, you will be able to access all of your international payments data at a single portal.  
	-All of your reports that your currently receive through the mail will 	be online and with the ability to export them in common formats.  
		- streamline accounting
	-Online claims of non-receipt and stop payments– no longer 	process paper forms, improve turnaround time for responses

	- Access returned payment information online to improve 	identification of returned payments
Can access from anywhere in the world (natural disasters, work from home, etc)

## Implemented Agencies
General Services Administration
Broadcasting Board of Governors
Defense Finance and Accounting Service
Centers for Disease Control
National Science Foundation
U.S. Coast Guard – Topeka Personnel Service Center
Social Security Administration
Environmental Protection Agency – Las Vegas
National Oceanic and Atmospheric Administration
Patent and Trademark Office
National Technical Information Service
American Battle Monument Commission (Paris and Rome offices)

- General Services Administration
- Broadcasting Board of Governors
- Defense Finance and Accounting Service
- Centers for Disease Control
- National Science Foundation
- U.S. Coast Guard – Topeka Personnel Service Center
- Social Security Administration
- Environmental Protection Agency – Las Vegas
- National Oceanic and Atmospheric Administration
- Patent and Trademark Office
- National Technical Information Service
- American Battle Monument Commission (Paris and Rome offices)

- Agency Implementation

## Implemented Agencies
USDA – National Finance Center
Bureau of Engraving and Printing
Customs and Border Protection
Department of Energy – Oak Ridge
USDA – Animal and Plant Health Inspection Service
U.S. Coast Guard – Elizabeth City
U.S. Coast Guard – Chesapeake
National Institute of Standards and Technology
Department of Justice – Financial Management Service
National Institutes of Health
Environmental Protection Agency – Research Triangle Park

- USDA – National Finance Center
- Bureau of Engraving and Printing
- Customs and Border Protection
- Department of Energy – Oak Ridge
- USDA – Animal and Plant Health Inspection Service
- U.S. Coast Guard – Elizabeth City
- U.S. Coast Guard – Chesapeake
- National Institute of Standards and Technology
- Department of Justice – Financial Management Service
- National Institutes of Health
- Environmental Protection Agency – Research Triangle Park

- Agency Implementation

## Contact:

Ethan Cole
	Financial Operations Supervisor
	Kansas City Financial Center
	816-414-2100
	Ethan.Cole@fms.treas.gov

Walker Woods
	Management and Program Analyst
	Kansas City Financial Center
	816-414-2100
	Walker.Woods@fms.treas.gov

**Contact:**
**Ethan Cole**
**	****Financial Operations Supervisor**
**	****Kansas City Financial Center**
**	****816-414-2100**
**	**_[Ethan.Cole@fms.treas.gov](mailto:Ethan.Cole@fms.treas.gov)_
**Walker Woods**
**	****Management and Program Analyst**
**	****Kansas City Financial Center**
**	****816-414-2100**
**	**_[Walker.Woods@fms.treas.gov](mailto:Walker.Woods@fms.treas.gov)_