This chapter prescribes special instructions that federal departments and entities must follow to report deposit and disbursement information for cash forecasting purposes.
This chapter describes the procedures that the federal departments and entities must follow in providing information to the Department of the Treasury (Treasury), Bureau of the Fiscal Service (Fiscal Service) for maintaining and updating projections of the Treasury’s operating cash balance, that is, the federal government’s cashflow.
31 U.S.C. 3511, 3513
These cash forecasting requirements instruct entities to report to Treasury, in advance, transactions that will significantly affect the Treasury General Account (TGA) and the Treasury Tax and Loan (TT&L) Account.
Two of Treasury’s primary responsibilities are forecasting and monitoring the federal government’s overall cash requirements. Treasury maintains a forecast of entities’ daily cash requirements for up to 12 months in advance. Treasury uses these forecasts to determine the amount and timing of federal government borrowing and investments of excess cash balances.
Treasury prepares and continually updates cashflow projections based on information provided quarterly by entity budget offices in accordance with the Office of Management and Budget (OMB) Circular No. A-11, Part IV, Section 135, “Procedures for Monitoring Federal Outlays.” These submissions provide estimates of total monthly spending for various programs, including individual accounts. They also include information regarding large ($50 million or more) transactions. However, the amount and timing of large transactions may change significantly after the OMB Circular No. A-11 forecast has been provided. In addition, during OMB Circular No. A-11 submissions, emergency spending may be authorized and appropriated, or new types of collections might occur.
Government entity reporting of cash forecasting information is critical for the maintenance of accurate, up-to-date cashflow projections, and for the daily management of Treasury’s operating cash balances. Failure to notify Treasury of significant disbursement activity can cause the TGA to lack sufficient funds to cover entity payments.
These cash forecasting requirements apply to all Treasury and non-Treasury disbursing offices, since all deposits and disbursements flow through the TGA. They also 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.
Reporting of U.S. Military pay transactions and Defense Department (Defense) payments to vendors is essential to the effective and efficient management of Treasury’s operating cash balances. Procedures in this chapter standardize the information provided by the Defense Finance and Accounting Service (DFAS) centers and other Defense installations.
Note: Advance information regarding payment or deposit transactions provided to Treasury by entity sources is administratively restricted and is not for public release before the transaction settlement date. Its use is restricted to a limited number of individuals involved in budget, cash, and debt management.
Account—The basis for reporting the federal government’s financial transactions. Accounts are classified as either receipt or expenditure and are assigned to a fund group based on characteristics and the nature of the transactions they support. The types of account fund groups are:
Account Symbol (also known as the Treasury Account Symbol)—A numeric symbol assigned by Treasury in coordination with OMB to classify transactions within fund groups. For more information please reference "Description of Accounts Related to Financial Operations".
Agency Location Code (ALC)—A numeric symbol used to identify accounting reports and documents prepared by or for entity accounting stations and Treasury Financial Centers (FCs). It is used by Treasury to ensure correct financial reporting. Entity accounting stations use an eight-digit symbol (XXXXXXXX), Non-Treasury Disbursing Offices use a four-digit symbol (0000XXXX), and Treasury FCs use a three-digit symbol (00000XXX).
Appropriation—An Act of Congress that provides an entity with budget authority. An appropriation allows the entity to incur obligations and to make payments out of Treasury for specific purposes. There are two types of appropriations. Definite appropriations are for a specific sum of money, and indefinite appropriations are for “such sums as may be necessary.”
Automated Clearing House (ACH)—An electronic funds delivery mechanism.
Business Day—Any day the Federal Reserve System and banks are open. On some occasions, the federal government may be closed.
Electronic Funds Transfer (EFT)—The electronic transfer of funds; either debits or credits using the Automated Clearing House (ACH) or FedWire.
Large Dollar Notification (LDN)—Required notification for deposits and disbursements totaling $50 million or more for a single transaction or multiple transactions of a common nature by ALC.
Settlement Date—The date a transaction clears Treasury’s operating cash account, that is, the date the operating cash balance is either increased by a deposit or decreased by a payment.
Treasury’s General Account (TGA)—The U.S. Government’s “checking” account at the Federal Reserve Bank (FRB) of New York from which entity payments are disbursed and taxes and proceeds from the sale of securities are collected.
Treasury’s Operating Cash Balance—The combined total of U.S. Government funds held in the TGA and the TT&L Account.
Treasury’s Tax and Loan (TT&L) Account—The U.S. Government’s interest-bearing “savings” account. Treasury invests its excess cash in financial institutions around the country. Although this program was suspended in 2008, it has not been terminated and is still reported on the DTS.
Entity financial officers must report to Fiscal Service, in advance, all deposits totaling $50 million or more in a single transaction or in multiple transactions of a common nature by (ALC).
Entity financial officers, Treasury FCs, non-Treasury disbursing offices, and entities with delegation of disbursing authority must report to Fiscal Service, in advance, all disbursements totaling $50 million or more. These disbursements may include a single transaction, multiple transactions of a common nature, and repetitive transactions.
(LDN) reporting requirements for deposits and disbursements include U.S. Military active duty and Military retiree payments, Defense payments to vendors, and other recurring monthly, quarterly, or one-time transactions. Appendix 1 lists examples of entity deposits and disbursements for which an advance notification is required.
For deposits and disbursements between $50 million and $500 million, Fiscal Service requires that entities report LDNs a minimum of two business days in advance of the settlement date. For deposits and disbursements of $500 million or more, Fiscal Service requires that entities report LDNs a minimum of five business days in advance of the settlement date. Intra-agency transfers to be processed via the Intra-governmental Payments and Collections (IPAC) system are not subject to LDN requirements.
If specific deposit or disbursement information is not final, entities must inform Fiscal Service daily as soon as possible, but no later than 8:30 a.m. Eastern Time on the transaction settlement date, of the approximate amount and approximate deposit or disbursement date. An entity must establish an internal process for purposes of informing its financial officers of upcoming LDN disbursements or deposits. This process must build in enough advance notice to the entity's financial officers that they can comply with the two- and five-business day minimum timeframes required (as described in the preceding paragraph) for providing the necessary LDN information to Treasury, which Treasury needs for forecasting purposes.
Fiscal Service encourages entity financial officers to submit LDNs to Fiscal Service via the CASH TRACK website (see Contacts). To report LDNs via the CASH TRACK website, Fiscal Service requires the following information:
Entities also can supply LDNs to Fiscal Service via email or fax using FS Form 187: Agency Report for Treasury Cash Reporting Advance Notice of Large Deposits or Disbursements of $50 Million or More (see Appendix 2); or by telephone (see Contacts). When supplying an LDN by means other than the CASH TRACK website, entities must provide the following information that is listed on the FS Form 187:
In addition to these general reporting requirements, the following sections describe the specific reporting requirements for daily disbursements, Defense vendor payments, U.S. Military pay, and other reporting for cash forecasting.
A number of entities consolidate individual transactions and process multiple payments on a daily basis. While an individual item in a payment file may not be significant, the daily total for the entity’s spending may have a substantial impact on Treasury’s operating cash balance.
All entities processing daily ACH and Fedwire payments via Treasury disbursing offices or FRB services must report daily disbursement totals of $50 million or more to Fiscal Service via the CASH TRACK website or using FS Form 187.
Refer to Contacts for the email address, fax number, and telephone number.
All DFAS centers and other Defense installations making EFT payments to vendors must report daily payment totals to Fiscal Service via the CASH TRACK website or using FS Form 187.
Refer to Contacts for the email address, fax number, and telephone number. When there are circumstances unique to a DFAS center, Treasury works with the center to design a reporting form that addresses those circumstances.
All DFAS centers and other Defense installations making EFT payments for Military active duty and Military retirees must report payment totals of $50 million or more to Fiscal Service via the CASH TRACK website or using FS Form 187. Fiscal Service requires a minimum of two business days advance notice for these payments.
U.S. Military active 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. When the 1st or the 15th day falls on a weekend or on a holiday, the payment is processed as of the prior workday. The sample form in Appendix 2 includes all required information fields. Refer to Contacts for the email address, fax number, and telephone number.
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. When the 1st day falls on a weekend or a holiday, the payment is processed as of the next workday. The form in Appendix 2 includes all required information fields. Refer to Contacts for the email address, fax number, and telephone number.
Treasury may request that certain entities report routine daily, weekly, or monthly estimated deposit and disbursement activity. Treasury may require that an entity provide a rolling forecast covering, for example, daily estimates for three business days or estimated weekly totals of deposits and disbursements for a six-week period.
The need for such reporting generally is determined by the magnitude of dollar amounts and the volatility of timing for such activity. In such cases, Treasury works with both entity budget and financial office personnel to set up reporting schedules and forms that achieve Treasury’s information requirements within the framework of the entity’s information systems and staffing.
To report cash forecasting information to the Fiscal Service Cash Reporting Branch, use the following:
To become a CASH TRACK web user, use the following:
Federal Reserve Bank of St. Louis
CASH TRACK Central Business Administration Function (CBAF)
For any questions or to request forms described in this chapter, contact:
Cash Reporting Branch
Central Accounting and Reporting Division
Bureau of the Fiscal Service
PO Box 1328
Parkersburg, WV 26106-1326
|1||-||Examples of Large Deposits and Disbursements for Which Agencies Must Report LDNs to the Fiscal Service Cash Reporting Branch|
|2||FS Form 187||Agency Report for Treasury Cash Reporting Advance Notice of Large Deposits or Payments of $50 Million or More|
Summary of Updates in this Release
|Section Number||Section Title||Summary of Changes|
|8525||Definitions||Updated the definitions for Agency Location Code (ALC), and Electronic Funds Transfer (EFT).|
|8530||General Large Dollar Notification Reporting Requirements for Deposits and Disbursements||Changed term Regional Financial Centers (RFCs) to Financial Centers (FCs) based on update to Agency Location Code definition. Removed Fedline from the bulleted list as an example of a Deposit or Disbursement mechanism.|
|8535||Reporting Requirements for Daily Disbursements||Updated language from "All agencies processing daily ACH and Fedline payments..." to "All entities processing daily ACH and Fedwire payments..." based on update to Electronic Funds Transfer (EFT) definition.|
|N/A||Appendices Listing||Updated Appendices to contain hyperlinks to each appendix.|