Part 6 - Chapter 8500 (T/L 563)
     
CASH FORECASTING REQUIREMENTS
     
          This chapter provides special instructions to
     agencies regarding required reporting of deposit and
     disbursement information for cash forecasting purposes
     for large deposits, large disbursements, U.S. Military
     pay, and daily disbursement reporting by certain
     agencies.
     
     Section 8510 - Scope and Applicability
     
          This chapter prescribes procedures to be used by
     Federal Government departments and agencies in
     providing information to the Department of the Treasury
     (Treasury) for use in maintaining and updating
     projections of the Treasury's operating cash balance,
     i.e., the Federal Government's cash flow.
      
     Section 8515 - Authority
     
          Policies governing the cash management aspects of
     agency deposits are contained in I TFM 6-8000.
     Regulations governing large check disbursements are
     issued under 31 U.S.C. 3511 and 3513.
     
     Section 8520 - Definitions
     
     Account - Appropriation, receipt, and other fund
     summary accounts established by the Treasury which show
     transactions to such accounts. These Federal accounts
     include the following: appropriation, receipt, deposit
     fund, trust fund, general fund, special fund, revolving
     fund, foreign currency, credit financing, clearing, and
     suspense accounts.
     
     Account Symbol - Numeric symbols assigned by Treasury
     to appropriation and fund accounts. The main account
     symbol is usually a minimum of six digits, with the
     first two digits identifying the department or agency.
     Account symbols and titles are issued in a Treasury
     supplement entitled the Federal Account Symbols and
     Titles (FAST) book.
     
     Agency Location Code (ALC) - Refers to a numeric symbol
     used to identify accounting reports and documents
     prepared by or for agency accounting stations and
     regional financial offices. Agency accounting stations
     use an eight-digit symbol (XXXXXXXX), disbursing
     offices use a four-digit symbol (0000XXXX), and
     Treasury Regional Financial Centers use a three-digit
     symbol (00000XXX). 
     
     Appropriation - A statute, under the jurisdiction of
     the House and Senate Committees on Appropriations, that
     generally provides authorization for Federal agencies
     to incur obligations and to make payments out of the
     Treasury for specified purposes. An appropriation act,
     the most common means of providing budget authority,
     generally follows enactment of authorizing legislation
     unless the authorizing legislation itself provides the
     budget authority. When appropriation acts are passed,
     the legislation is reviewed and account symbols are
     then assigned. Account symbols are used to track an
     agency's payments or expenditures against its
     appropriation.
      
     Automated Clearing House (ACH) - An electronic funds
     delivery mechanism.
     
     Business day-Official Federal Government workday.
     
     Electronic Funds Transfer (EFT) - Any deposit or
     payment accomplished electronically, including wire
     transfers via CA$H-LINK and Taxlink, Fedwire, Vendor
     Express, etc. (Fedline is an EFT delivery mechanism
     into Fedwire.)
     
     Large Deposits and Disbursements - Deposits and
     disbursements over $50 million dollars.
     
     Settlement date - The date a transaction clears the
     Treasury's operating cash account, i.e., the date that
     the operating cash balance is increased by a deposit or
     decreased by a disbursement. 
     
     Treasury's General Account - The Federal Government's
     "checking" account at the Federal Reserve Bank of New
     York, from which agency payments are disbursed.
     
     Treasury's Operating Cash Balance - Operating funds in
     the Treasury General Account and the Treasury Tax and
     Loan Accounts.
     
     Treasury's Tax and Loan Accounts - Accounts maintained
     for the U.S. Treasury at depositary institutions
     throughout the nation. Treasury Tax and Loan Accounts
     are Treasury's call accounts, subject to daily call
     action to maintain Treasury's General Account target
     balance. The remaining available funds are placed in
     interest-earning accounts with qualified depositaries. 
      
     Two business days minimum notice - Notification to
     Treasury, no later than 9:30 a.m. eastern time two
     business days before the deposit or disbursement
     transaction settlement date. Example: If transaction
     date is Thursday, Treasury must be notified by 9:30
     a.m. the preceding Tuesday.
      
     Section 8525 - Background and Concepts
     
          These cash forecasting procedures instruct
     agencies to report, in advance, to Treasury,
     transactions that will significantly affect Treasury's
     General Account and Treasury's Tax and Loan Accounts.
     
          One of the primary responsibilities of the
     Treasury is to forecast and monitor the Federal
     Government's overall cash requirements. Treasury
     maintains a forecast of agencies' daily cash
     requirements for up to nine months ahead, which is used
     to determine the amount and timing of the following:
     Federal Government borrowing, investments of excess
     cash balances, and requests to Congress for increases
     in the debt subject to limit.
     
          Treasury prepares and continually updates cash
     flow projections based upon information provided
     quarterly by agency budget offices in accordance with
     Office of Management and Budget Circular No. A-34, Part
     V, Section 51 "Monitoring Federal Outlays" (December
     1995). A-34 reports provide estimates of total monthly
     spending for various programs, including individual
     accounts. A-34 reports also include information
     regarding large (i.e., $50 million or more)
     transactions. However, the amount and timing of large
     transactions may change significantly after the A-34
     forecast has been provided. In addition, between A-34
     submissions, emergency spending may be authorized and
     appropriated, or new types of collections might arise.
     
          Government agency reporting of cash forecasting
     information is critical for the maintenance of
     accurate, up-to-date cash flow projections, and for the
     daily management of Treasury's operating cash balances.
     Failure to notify Treasury of significant disbursement
     activity can cause Treasury's General Account to lack
     sufficient funds to cover agency payments. Failure to
     notify Treasury of significant deposit activity can
     cause inefficient investment of Treasury's Tax and Loan
     Account balances.
     
          Likewise, cash forecasting procedures for
     reporting U.S. Military pay transactions and Defense
     Department payments to vendors are essential to the
     effective and efficient management of Treasury's
     operating cash balances. Procedures outlined here will
     standardize the information being provided by the
     Defense Finance and Accounting Service (DFAS) centers
     and other Defense installations.
     
     Section 8530 - General Reporting Requirements
     
          Required information regarding large deposits,
     large disbursements, U.S. Military pay, Defense
     Department payments to vendors, and other transactions
     must be reported to FMS in advance of the transaction
     settlement date via facsimile or telephone. See
     Contacts Page for current facsimile and phone numbers.
     
          If specific deposit or disbursement information is
     not final, advise FMS of the approximate amount(s) and
     the approximate deposit or disbursement date(s). Daily
     updates must be provided by 9:30 a.m. eastern time
     until the deposit or disbursement has occurred.
      
          The cash forecasting requirements in this chapter
     apply to all Federal appropriation, receipt, and fund
     accounts; both budgetary and off-budget, including
     deposit fund, trust fund, general fund, special fund,
     revolving fund, foreign currency, credit financing,
     clearing, and suspense accounts.
     
          Advance information regarding payment or
          deposit transactions provided to Treasury by
          agency sources is administratively restricted
          and NOT FOR PUBLIC RELEASE prior to the
          transaction settlement date. Its use is
          restricted to a limited number of individuals
          involved in deficit, cash, and debt
          management.
     
     Section 8535 - Specific Reporting Requirements
     
          In addition to the general reporting requirements
     in Section 8530, the following paragraphs describe the
     specific reporting requirements for large deposits,
     large disbursements, U.S. Military pay (EFT), daily
     disbursement reporting, Defense Department Vendor
     Payments (EFT), and other reporting for cash
     forecasting. 
     
     8535.10 - Large Deposits
     
          Agency financial officers must report in advance
     all deposits totaling $50 million or more in a single
     transaction or in multiple transactions of a common
     nature. Appendix 1 lists examples of agency deposits
     for which advance notification must be provided.
     
          Large deposits must be reported in advance of the
     transaction settlement date. A minimum of two business
     days notice is required for deposits totaling $50
     million or more. If a deposit of $500 million or more
     is anticipated, a minimum of five business days notice
     is required. When specific deposit information has not
     been finalized, inform FMS daily (by 9:30 a.m. eastern
     time) of approximate amount(s) and approximate deposit
     date(s). 
     
     Report the following to FMS:
     
         o Name and address of the agency, department,
           bureau, or administration.
         o Name and telephone number of contact.
         o Agency location code (ALC) or Defense station
           symbol number (DSSN).
         o Account title and account symbol number.
         o Description of the transaction.
         o Transaction settlement date.
         o Amount of the deposit.
         o Deposit mechanism (wire transfer or check).
         o Name and location of the depositary.
     
     The form in Appendix 2 includes all required
     information fields. See Contacts Page for current
     facsimile and phone numbers.
     
     8535.20 - Large Disbursements
     
          Agency financial officers, Treasury Regional
     Financial Centers, non-Treasury disbursing offices, and
     agencies with delegation of disbursing authority must
     report in advance all disbursements totaling $50
     million or more. These include single transactions,
     multiple transactions of a common nature, and 
     repetitive transactions. Appendix 1 includes a list of
     examples of agency disbursements for which advance
     notification is required. This advance reporting
     requirement applies to Treasury Regional Financial
     Centers unless notified otherwise.
     
          Large disbursements must be reported in advance of
     the transaction settlement date. A minimum of two
     business days notice is required for disbursements
     totaling $50 million or more. If a disbursement of over
     $500 million is anticipated, a minimum of five business
     days is required. When specific disbursement
     information has not been finalized, inform FMS daily
     (by 9:30 a.m. eastern time) of approximate amount(s)
     and approximate deposit date(s). 
     
          Some financial officers may not presently be
          informed in advance of upcoming
          disbursements. If this is the case in your
          agency, it is required that a formal system
          of notification be established within your
          agency to ensure that the necessary
          forecasting information is provided to
          Treasury.
     
     Report the following to FMS:
     
         o Name and address of the agency, department,
           bureau, or administration.
         o Name and telephone number of contact.
         o Agency location code (ALC) or Defense station
           symbol number (DSSN).
         o Account title and account symbol number.
         o Description of transaction.
         o Transaction settlement date.
         o Amount of the disbursement.
         o Payment mechanism (wire transfer or check).
         o Check number for check payments.
         o Payee name and address.
     
     The form in Appendix 2 includes all required
     information fields. See Contacts Page for current
     facsimile and phone numbers.
     
     8535.30 - U.S. Military Electronic Funds Transfer (EFT)
     Payroll 
     
          Defense Finance and Accounting Service (DFAS)
     center financial officers must report in advance all
     U.S. Military pay and all U.S. Military Retiree pay
     made by EFT for the required payroll reporting periods.
     Pay totals should be reported as far in advance of the
     pay date as possible; a minimum of two business days
     advance notice is required.
     
          U.S. Military pay includes the following pay
     classifications: active duty pay, reserve pay, cadet
     pay, active salary allotments, active blanket pay, and
     voluntary separation incentives. These payments usually
     occur on the 1st and the 15th calendar days of each
     month. If the 1st or 15th fall on a weekend or a
     holiday, the payment will be made on the prior workday.
     The sample form in Appendix 3 includes all required
     information fields. See Contacts Page for current
     facsimile and phone numbers.
     
          U.S. Military Retiree pay includes the following
     pay classifications: retired pay, retired allotments,
     retired annuities, and retired blanket pay. These
     payments usually occur on the 1st calendar day of the
     month. If the 1st falls on a weekend or a holiday, the
     payment will be made on the next workday. The form in
     Appendix 4 includes all required information fields.
     See Contacts Page for current facsimile and phone
     numbers.
     
     Report the following to FMS:
     
         o Defense Finance and Accounting Service center
           location.
         o Defense station symbol number (DSSN).
         o Name and telephone number of contact.
         o Name of Federal Reserve bank location where pay
           files are transmitted.
         o Name of U.S. Military branch.
         o Military pay classification.
         o Pay date.
         o Pay amount for each classification.
         o Total pay amount.
     
     8535.40 - Daily Disbursement Reporting
     
          A number of agencies are now consolidating
     individual transactions and making multiple payments on
     a daily basis. While an individual item in a payment
     file may not be significant, the daily total for the
     agency's spending may have a substantial impact on
     Treasury's operating cash balance.
     
          In general, agencies for which Treasury disburses
     are not required to provide notification regarding
     multiple disbursements. Treasury Regional Financial
     Centers making the payments provide daily summary
     reports which detail the agency location codes and
     dollar amounts paid. This information is used by FMS
     for both forecasting and reporting of individual agency
     activity.
     
          Agencies which have been granted their own
     disbursing authority may be required to provide advance
     notification of payments. Treasury determines which
     agencies are required to report, based upon the dollar
     amount and/or volatility of daily transactions for the
     agency. If reporting is required, Treasury will contact
     the agency, and reporting procedures will be
     established.
     
     8535.41 - Defense Department Electronic Funds Transfer
     (EFT) Vendor Payments
     
          All Defense Finance and Accounting Service (DFAS)
     centers and other Defense installations which make EFT
     payments to vendors are required to report daily the
     following information to FMS: 
     
         o DFAS center or other Defense location.
         o Defense station symbol number (DSSN).
         o Name and telephone number of primary and alternate
           contact.
         o Federal Reserve bank location of transmitted
           payment files.
         o Date payment files are transmitted.
         o Effective date of payment (transaction settlement
           date).
         o Total dollar amount of the EFT file transmitted.
     
          See Contacts Page for current facsimile and phone
     numbers. Unless otherwise specified, Defense
     installations use the form (Advance Reporting of
     Defense Payments to Vendors)in Appendix 5. When there
     are circumstances unique to a DFAS Center, Treasury
     will work with the center to design a reporting form
     that addresses those circumstances.
     
     8535.50 - Other Reporting for Cash Forecasting 
     
          Treasury may request from certain agencies routine
     monthly, weekly, or daily reporting of estimated
     deposit and disbursement activity. An agency may be
     required to provide a rolling forecast covering, for
     example, (1) daily estimates for three business days or
     (2) estimated weekly totals of deposits and
     disbursements for a six-week period.
     
          The need for such reporting is generally
     determined by the magnitude of dollar amounts and the
     volatility of timing for such activity. In such cases,
     Treasury works with both agency budget and financial
     office personnel to set up reporting schedules and
     forms that will achieve Treasury's information
     requirements within the framework of the agency's
     information systems and staffing.
     
     
                          Contacts
     
     To report cash forecasting information to FMS' Funds
     Control Branch use the facsimile and telephone numbers
     below:
     
          Fax Number: 202-874-9945 or 202-874-9984
     
          Telephone Number: 202-874-9790
     
     Inquiries concerning this chapter should be directed
     to:
     
          Funds Control Branch
          Funds Management Division
          Financial Management Service
          Department of the Treasury
          3700 East West Highway, Room 6D10
          Hyattsville, Maryland 20782
          Telephone 202-874-9790
     
     To request forms described in this chapter contact:
     
          Property and Supply Section
          Facilities Management Division
          Financial Management Service
          Department of Treasury
          Ardmore East Business Center
          3351-L 75th Avenue
          Landover, MD 20875
          Fax: 301-344-8583
          Telephone: 301-344-8577
     
     
     
     
                 Appendix Listing
     
     
     App. No.       Form           Title
     
     1                             Examples of Large
                                   Deposits and Payments to
                                   be Reported to FMS' Funds
                                   Control Branch 
     
     
     2              FMS-187        Advance Notice of Large
                                   Deposits or Payments of
                                   $50 Million or More
     
     3              FMS-188        Advance Reporting of U.S.
                                   Military Pay
     
     4              FMS-190        Advance Reporting of U.S.
                                   Military Retiree Pay
     
     5              FMS-189        Advance Reporting of
                                   Defense Department
                                   Payments to Vendors
     
                                                  
                                Appendix 1

                  EXAMPLES OF LARGE DEPOSITS AND PAYMENTS TO BE
                     REPORTED TO FMS' FUNDS CONTROL BRANCH

Examples of Large Deposits

Department/
Govt Branch         Agency                                       Sample

Legislative         Library of Congress                          Copyright royalty fees

Judiciary           U.S. Courts                                  Fines


Executive           Defense Security Assistance Agency           Foreign Military Sales receipts
 
Agriculture         Farm Service Agency:                    
                      Federal Crop Insurance Corporation Fund    Premium collections

                      Commodity Credit Corporation               Price support loan repayments 
                                                                 Export Guarantee loan collections

                    Rural Utilities Service                      Loan Collections


Justice             Asset Forfeiture Fund                        Collections

                    Court Registry Investment System             Collections

                    Crime Victims Fund                           Collections         

Energy                                                           Alleged Violators of Regulations - 
                                                                 Escrow deposits

Labor               Pension Benefit Guaranty Corp.               Premium collections


Transportation      Maritime Administration                      Deposits to Federal Ship Financing
                                                                 Escrow Fund

Treasury            Comptroller of the Currency                  Assessment collections

                    Office of Thrift Supervision                 Assessment collections

                    Financial Management Service                 Lend Lease Agreement repayments
 
Independent         Federal Communications Commission            Spectrum rights auction
Agencies 
                                                                 proceeds

                    National Credit Union Administration         Deposits and premium assessments

                    Nuclear Regulatory Commission                License fees

                    Securities and Exchange Commission           Stock exchange fees

                    U.S. Enrichment Corp.                        Sale collections


Examples of Large Disbursements

Department/
Govt Branch         Agency                                       Sample

Legislative         Library of Congress                          Distribution of copyright royalty fees 

Executive           Defense Security Assistance Agency           Foreign Military Financing
disbursements 

                    Agency for International Development         Economic Support Fund payments

Agriculture         Farm Service Agency:
                      Conservation Programs                      Conservation reserve payments

                      Commodity Credit Corporation               Deficiency and other price support
                                                                 payments
                                                                 Export Guarantee loan disbursements

                    Rural Utilities Service                      Loan disbursements

                    Forest Service                               Payments to States
                         

Energy                                                           Alleged Violators of Regulations - 
                                                                 Escrow disbursements

Health and Human                                                 Disbursements of funds collected                       
Services                                                         under the Federal Tax Refund
                                                                 Offset Program 

Interior            Bureau of Land Management                    Oregon and California grant lands
                                                                 payments
                                                                 Payments in lieu of taxes

                    Minerals Management Service                  Royalty distributions to States

                    Territorial and International Affairs        Compact of Free Association payments
                                                                 Payments to Territories

State                                                            Contributions to the United Nations and
                                                                 other international organizations and
                                                                 conferences

Transportation      Federal Railroad Administration              Payments to National Railroad
                                                                 Passenger Corp. (AMTRAK)

                    Federal Transit Administration               Grant payments

                    Maritime Administration                      Payments


Treasury            Presidential Election Campaign Fund          Disbursements

                    Financial Management Service                 Payments to the Resolution Funding 
                                                                 Corp. Claims, judgements, and relief 
                                                                 act payments

Independent         Federal Emergency Management Agency          Disaster relief payments
Agencies  

                    Corporation for Public Broadcasting          Payment to the Corporation for Public
                                                                 Broadcasting 
     
                                  
Forms Not Included in ASCII Version


     TRANSMITTAL LETTER NO. 563                       
     VOLUME I
          
     TO: HEADS OF GOVERNMENT DEPARTMENTS, AGENCIES, AND
     OTHERS CONCERNED
          
     1.   PURPOSE
          
          This transmittal letter releases I TFM 6-8500,
     Cash Forecasting Requirements. It describes mandatory
     reporting requirements for large deposits, large
     disbursements, U.S. Military pay, and daily
     disbursement reporting by certain agencies.
               
     This chapter replaces procedures for:
          
          o   Large deposits previously defined in:
              TFM Chapter: I TFM 5-4000-Making Deposits,
              Section: 4020-Reporting Large Deposits.
     
          o   Large electronic funds transfer deposits formerly
              received via the Treasury
              Financial Communications System, defined in I TFM
              5-4500-Treasury Financial
              Communications System Deposits.
          
          o   Large check disbursements previously defined in:
              TFM Chapter: I TFM 4-2000-Check Issues Disbursing 
              Procedures Section: 2020-Control Over
              Disbursements,
              Paragraph: 2020.20-Reporting of Large
              Disbursements.
          
          o   Large electronic funds transfer disbursements
              formerly paid via the Treasury Financial
              Communications System, defined in
              TFM Chapter: I TFM 4-2500-Treasury Financial
              Communications System
              Payments, Section: 2550-Requirements for
              Utilization of the TFCS,
              Paragraph: 2550.20-Special Requirements,
              Subparagraph: 2550.20f Large TFCS Disbursements.
              
     
      Reporting requirements for U.S. Military pay 
      and for daily disbursement reporting were not
      previously defined in the TFM.
          
          2.   PAGE CHANGES
          
          Remove                        Insert
          
          Table of Contents for         Table of  Contents
          Volume I                      Volume I
        
          Table of Contents for         Table of  Contents
          Part 6                        Part 6
          
                                        I TFM 6-8500
         
     3.   EFFECTIVE DATE
          
          Upon receipt.
          
     4.   INQUIRIES
          
          Questions concerning this transmittal letter
     should be directed to:
          
                         Funds Control Branch
                         Funds Management Division
                         Financial Management Service
                         Department of the Treasury
                         3700 East-West Highway, Room 6D10
                         Hyattsville, MD 20782 
                         (Telephone 202-874-9790)
          
          
          
          
      Date:  April 16, 1996              Russell D. Morris
                                         Commissioner