# Presentation: 689066

## HOLISTIC APPROACH

**Presented by: **
- Joann Franklin, Customer Relationship Manager
- Agency Relationship Management Division
- Financial Management Service

**Austin Financial Center**
**Agency Forum**
**July 17, 2008**

**Notes:**
Throughout the HA presentation, you will hear that Treasury would like for you to convert to electronic mechanisms.

We know that each agency’s business line is unique.
Interior – National Parks – Cash and checks
Litigation  issues that preclude you from using the Internet

So, to the extent that you are able to increase your EFT collections, we are asking that you partner with us to improve your cash management practices.

When we reconvene after lunch or when we wrap up at the end of the day, the goal is to end the meeting with 2 or 3 bureaus that will work diligently with me to draft and finalize a cash management agreement and have them signed by your CFO or Deputy CFO by the August 2008 timeframe.  So, we have a short window and much work to do.

We will discuss the cash mangemt agreement in detail during this meeting.

## Agency Relationship Management

- Central point of contact for agencies
- CRM Contacts by Agency
- _[http://](http://www.fms.treas.gov/crm/contacts.html)__[www.fms.treas.gov/crm/contacts.html](http://www.fms.treas.gov/crm/contacts.html)_
- Promote new/innovative collection tools
- Publish Financial Connection
- 		_[www.fms.treas.gov/finconn/index.html](http://www.fms.treas.gov/finconn/index.html)_
- Primary responsibility for the
- 		*holistic approach*

**Notes:**
-New, innovative collection tools: Pay.gov, PCC OTC and TGAnet

-Financial Connection  - published monthly or bi-monthly
 	what’s new and innovative
Sign up to receive email notification

Holistic Approach – FMS-wide initiative

## What is the  Holistic Approach?

**The preferred way for Federal Finance to conduct business with Federal agencies**
- Identify and prioritize target CFO agencies
- Review collection activity with bureaus to propose overall cash management improvements

**Notes:**
-In the past –worked with agencies on an ad hoc basis, case by case basis

We use CA$HLINK II data to identify collection activity.

24 CFO act agencies

## Goals

- Electronic collections percentage
- 79% of federal revenue collected electronically
- Move towards an all-electronic Treasury
- 90% EFT by 2010

**Notes:**
We have outlined the following goals as we move towards implementing the holistic approach:

1.  Move towards an all-electronic Treasury – obtain 90% EFT
2.  Promote easy-to-use collection mechanisms that are convenient and secure (Pay.gov, PCC – OTC)
3. Work together to streamline the agency’s – back-end collection processes/ reconciliation process
4. Develop a model bureau within an agency

79% based on $ - not the no. of transactions
Collections have increased slightly.  

79% unchanged for the past few years

We are implementing improved programs so we should be able to increase the 79 %.

## Cash Management Agreement

- Develop Strategic Cash Management Agreements (SCMA)
- Itemized listing of agency cash flows, goals and performance metrics
- Implementation/conversion timeline(s)

**Notes:**
Mutually agreeable dates to convert those paper transactions.

Discuss the obstacles

## Cash Management Agreement

- Description of remitter base and business lines
- Baseline EFT%
- Target EFT% - 90% or higher

**Notes:**
CA$HLINK provides the number of 215s or deposit tickets.

## Cash Management Agreement

- Recommend efficient (EFT) collection mechanisms
- Cash flow splits
- Agencies can utilize multiple collection applications to achieve cash flow conversion goals
- SCMA signed by CFO/DCFO & FMS
- Inefficiency Charge
- Charge assessed to agencies that fail to meet targets per 31 USC 3720

**Notes:**
Agencies can use multiple collection applications to achieve cash flow conversion goals

-$1 – per transaction – looked at the cost of processing all of our collections and the no. of transactions processed.

## CONTACTS

**Joann Franklin**
- Customer Relationship Manager
- 202/874-6881; _[joann.franklin@fms.treas.gov](mailto:joann.franklin@fms.treas.gov)_** **
**Carolyn Dunston, Director**
- Agency Relationship Management Division
- 202/874-7491; _c__[a](mailto:arolyn.dunston@fms.treas.gov)__[rolyn.dunston@fms.treas.gov](mailto:arolyn.dunston@fms.treas.gov)_

## Paper Check ConversionOver the Counter (PCC OTC)

## PCC OTC Overview

- The Paper Check Conversion Over the Counter (PCC OTC) program converts paper checks received into electronic debits to check writer’s account through the Automated Clearing House system, or into a substitute check image that is truncated and cleared under the authority of Check 21.
- PCC OTC fully automates and improves the collection, reconciliation, research, and reporting processes associated with Federal agency over the counter check collections.

## PCC OTC Can Be Used.....

_**At the Point-of-Sale**_
- Face to Face transactions with the customer.
- Customer is given his/her VOIDED (personal) check back at the end of the transaction. Business checks (i.e.. Money Orders, Treasury Checks) are voided and destroyed by the agency
_**At an Agency Collected Location (Mail)**_
- Agency receives checks by mail from check writers
- Customer is not given back check but agency will safeguard and destroy

## PCC OTC Features

**Imaging **- Captures a complete electronic image of the check and allows for the retention of a facsimile, without retaining any paper.
**Verification** - Verifies against a negative check database that there is no historical return information for the account upon which the item is written for that particular agency.
**Conversion** - Converts personal paper checks to electronic debits for processing through the Automated Clearing House network.
**Truncation** -The process of imaging a physical check and creating a substitute check which is the legal equivalent of the original check. Primarily used for business checks.
**Representment** - Resubmits returned items up to 2 additional times.  The representments can be timed to occur on specific days of the month.
**Reporting **-  Deposit Tickets(SF215) and Debit Vouchers (SF 5515) are prepared by the system and available the next business day.

**Notes:**
Reduces the number of dishonored checks accepted (when verification option is chosen)

Provides a complete electronic record of converted checks

Creates audit trail for each check scanned

Automates the preparation of Deposit Tickets (SF 215) and Debit Vouchers (SF 5515).

## Acceptable Checks

- Personal Checks
- Business Checks
- Money Orders
- Cashier Checks
- Federal, State, Local Government Checks
- Travelers Checks
- All Checks must be drawn on a U.S. Financial
- Institution

## PCC OTC Statistics9/14/2001 – 6/15/2008

- PCC OTC has processed over 14 Million transactions
- PCC OTC has processed over $22** **Billion

## Some of the PCC OTC Agencies

- U.S. Agency for International Development
- U.S. State Department
- Department of Defense:
-      Defense Finance & Accounting Service
-      U.S. Army
-      U.S. Air Force
-      U.S. Marines
-      U.S. Navy
-      Defense Commissary Agency
- Tennessee Valley Authority
- Department of Energy:
-      Southeastern Power Administration
- Presidio Trust
- Library of Congress - Copyright Office
- Environmental Protection Agency
- Bureau of Engraving & Printing
- Census Bureau
- U.S. Holocaust Memorial Museum
- Federal Mediation & Conciliation Service
- U.S. Mint
- Veteran’s Affairs
- IBWC
- USDA - Commodity Credit Corporation
- Consumer Product &Safety Comm.

- Department of Labor
- Federal Trade Commission
- National Finance Center
- National Oceanographic and Atmospheric Administration
- U.S. Senate Restaurants
-  Department of Transportation
-  Farm Service Agency
- Office of the Comptroller of the Currency
- Government Printing Office
- Drug Enforcement Agency
- NTIS
- Federal Maritime Commission
- NARA
- IRS (Tax and Non Tax payments)
- FBI
- Financial Management Service
- Customs & Border Protection
- U.S. Tax Courts
- National Labor Relations Board
- Health & Human Services

## Associated Cost/Fees	

- Only agency expense to participate in the PCC OTC program is for the check scanning equipment
- Current price is $464.00 for the EC7000i check scanner
- All other associated costs are paid by the FMS

## Application Process	

- Agency can express interest by contacting FMS
- FMS will supply set up documentation to agency once approved (APA, ASP)
- After receipt of documentation from agency FMS will schedule deployment

## More Information	

- Visit our website – _[http://www.pccotc.gov](http://www.pccotc.gov/)_
- Contact PCC OTC Program Group:
-      Reginald McKinney-202-874-6893
-      Tepricka Morgan-202-874-6786
-      Bonnie Ray-202-874-2138
-      Corvelli McDaniel-202-874-7115
- Contact Agency Relationship Management Division: www.fms.treas.gov/eft/contacts.html

## TGAnet Overview

- The Treasury General Account Deposit Reporting Network (TGAnet) is a secure web-based system, developed for Over The Counter (OTC) federal agency deposit reporting and confirmation.

## TGAnet Benefits

- Automates the antiquated SF 215 paper over-the-counter (OTC) deposit process
- Streamlines 224 reporting for FPAs
- Solution for CA$HLINK II 2010 sunset date
- Facilitates daily classification of Treasury collections, enabling GWA reporting initiatives
- Reduces reporting errors by eliminating FI data entry

## About TGAnet

- No equipment to purchase (Use existing computer)
- No fees to pay (Developed by FMS for your use)
- No expensive training to attend or host (Watch-it, try-it training available anytime to users)
- Provides “customization” for each agency
- Is the “contingency” deposit process for PCC OTC

## About TGAnet

- Processes both US and foreign cash and check deposits
- Use existing accounting codes
- Improves deposit history record keeping
- Enhances internal agency communications
- Provides for better communications with financial institutions

## Sample of TGAnet Agencies

- Internal Revenue Service
- National Park Service
- Customs and Border Protection
- Department of Homeland Security
- United States Patent and Trademark Office
- United States Tax Courts
- Mine Safety and Health Administration
- Debt Management Service

**Notes:**
Currently, 800 agency end points make deposits through TGAnet
160 ALCs 

## Conversion of FPAs and FIs

**As of May 2008**
- # of Agencies Converted: 49
- # of Endpoints Converted: 799
- # of ALCs Converted: 160
- # of Financial Institutions Converted: 70
- # of Users: 3766

## National Park Service

- “Our experience with the TGAnet Conversion Team, TGAnet Technical Staff and TGAnet Help Desk has been nothing less than exceptional.  NPS could not have converted our parks without the TGAnet Conversion Teams’ assistance, patience, and help with unusual or problematic situations.

## TGAnet Contacts

**Donald Clark, Program Manager**
- Email:  _[don.clark@fms.treas.gov](mailto:don.clark@fms.treas.gov)_
- Voice Mail:  202-874-7092
**Tepricka Morgan, Financial Program Specialist**
- Email:  _[tepricka.morgan@fms.treas.gov](mailto:tepricka.morgan@fms.treas.gov)_
- Voice Mail:  202-874-6786