Retention: December 31, 2020
To: Heads of Government Departments, Agencies and Others Concerned
Subject: Current Value of Funds Rate (CVFR)
The Secretary of the Treasury is responsible for computing and publishing the rate that is used for federal debt collection, cash discounts, and rebate evaluation. The Current Value of Funds Rate (CVFR) is a percentage based on the current value of funds to the Department of the Treasury (Treasury).
The CVFR percentage is based on the investment rates for the Treasury Tax and Loan accounts set for purposes of Public Law 95-147, 91 Stat. 1227 (October 28, 1977).
Treasury annually computes the CVFR percentage by averaging investment rates for the 12-month period ending on September 30, rounding it to the nearest whole percentage. If the annual average (on a 12-month moving average basis) changes by 2 percent per quarter, Treasury's Bureau of the Fiscal Service publishes the presiding rate in the Federal Register and in a Treasury Financial Manual (TFM) bulletin.
Current and previous rates can be obtained from the CVFR website.
3. Percentage Rate Used When Assessing Interest Charges on Outstanding Debts Owed to the Government, Evaluating the Cost-Effectiveness of Cash Discounts, and Considering Payment Dates for Purchase Card Invoices
The CVFR percentage for the period January 1, 2020, through December 31, 2020, is 2 percent. This rate reflects the average investment rates for the 12-month period ending September 30, 2019.
Federal agencies are to apply the CVFR percentage when:
This bulletin will rescind the previous bulletin, 2019-04.
6. Effective Date
This bulletin is effective on January 1, 2020.
Department of the Treasury
Bureau of the Fiscal Service
E-Commerce Division (LC-RM 349B)
3201 Pennsy Drive, Building E
Landover, MD 20785
November 22, 2019