Vol 1 Part 6 - Chapter 8000 CASH MANAGEMENT This chapter establishes procedures for Government agencies to follow to ensure prudent cash management practices when developing and implementing regulations, systems, and instructions. These procedures include billings, collections, deposits, disbursements, cash held outside the cash account of the Department of the Treasury (Treasury), and financial data reporting. These procedures require the use of timely methods, principally Electronic Funds Transfer (EFT) for the collection, deposit, and disbursement of funds. Section 8010 - Scope and Applicability These procedures apply to all Government agencies, unless specifically exempted by statute, whose financial transactions directly or indirectly affect the cash account of Treasury. Detailed procedures for cash advances under Federal grants and other programs are in I TFM 6-2000. The TFM supplement, "Cash Management Made Easy," provides detailed information on collection and disbursement mechanisms, including criteria for use. See I TFM (Introduction chapter), Appendix 1, for a list of supplements. Section 8015 - Authority The following regulations establish the policy for cash management practices within the Federal Government relating to developing, promulgating, and implementing regulations, systems, and procedures: - 5 U.S.C. 301. - 31 U.S.C. 321, 1535, 3301, 3302, 3720, 6503. - Federal Claims Collection Act of 1966 as amended by the Debt Collection Act of 1982. - Federal Claims Collection Standards (4 CFR 101-105). - Deficit Reduction Act of 1984 (Public Law 98-369) (31 CFR 206). - Cash Management Improvement Act of 1990 (Public Law 101-453). - Cash Management Improvement Act Amendments of 1992 (Public Law 102-589). - Prompt Payment Act Amendments of 1988 (Public Law 100-496). Section 8020 - Definition of Terms Agency - Any department, instrumentality, office, commission, board, service, Government corporation, or other establishment in the Executive Branch. Annual Business Days - By convention, a 250-day period used to determine average daily cash-flow when calculating interest savings to the Government. Annual Calendar Days - By convention, a 360-day period used to calculate cash discounts and interest penalties for late payments. Assessment - An amount charged against an agency for noncompliance with collection or deposit improvement initiatives. The amount is based on the cost to the general fund caused by noncompliance. Benefit Days - The average number of days a mechanism or an improved process accelerates the availability of Federal receipts or defers the disbursement of Federal funds; used to determine interest savings to the Government. Cash Flow - Each category of (1) incoming funds, including specific program sources, travel reimbursements, and collection of overpayments and (2) disbursements, including payroll, vendors, and travel. Cash Management - Practices and techniques designed to accelerate and control collections, ensure prompt deposit of receipts, improve control over disbursement methods, and eliminate idle cash balances. Cash Management Improvements Fund - A revolving fund financed by assessments against an agency for noncompliance with collection or deposit improvements. Moneys from this fund will be made available, without fiscal year limitation, for payment of expenses incurred in developing and implementing selected projects that provide for improved methods of collection and deposit. Cash Management Review - A comprehensive and ongoing study of an agency's cash-flows and corresponding cash management processes or mechanisms, conducted to identify opportunities for improvement in an agency's cash management practices. This review is a major part of the Current Assets Management Review and Analysis (CAMRA). Collection Mechanism - A tool or system by which moneys are transferred or credited to a Federal Government agency from an outside source or from another Federal Government agency. Current Assets Management Review and Analysis (CAMRA) - A process to assess and improve the management of Federal agency finances through electronic data collection. The Cash Management Review is a major part of CAMRA. Current Value of Funds Rate - The average investment rate for the Treasury Tax and Loan accounts expressed as an annual rate and published by FMS in the Federal Register each year by October 31, to be effective January 1. Cutoff Time - A time predesignated by a financial institution beyond which transactions presented or actions requested will be deferred to the next banking day's business. Day - A calendar day, unless otherwise noted. Deposit - Money that is being or has been presented for credit to the U.S. Treasury. Such transfers can be made by agencies or directly by the remitter. All such transfers are effected through a Federal Reserve bank (FRB) or other financial institution. Deposit (Same Day) - A deposit made before the cutoff time on the day on which the funds were received by the agency. For example, if an agency receives funds for deposit at 10 a.m. on Monday and transmits the deposit to the bank by 2 p.m. on Monday (the depositary's cutoff time), then same-day-deposit requirements are met. Depositary - A bank or other financial institution designated by FMS to receive moneys for credit to the U.S. Treasury. Disbursement Mechanism - Any tool or system by which Federal moneys are transferred to an outside recipient or to another Federal agency. Electronic Funds Transfer (EFT) - Any method used to transfer funds electronically, such as wire, Automated Clearing House (ACH), Credit or Debit Card, or FMS' Online Payment and Collection (OPAC) system. Float - The period of time that elapses between two collection or disbursement activities. Invoice - A bill or other written request for payment. Moneys - All currency and negotiable instruments that are (1) held (imprest funds), (2) paid out, (3) owed to, or (4) collected by an agency. Payment Date - The date on which a check for payment is dated or the date of an EFT payment (settlement date). Payments by EFT mechanism will be made so as to be received by the contractor's financial institution by the established due date. Payment Terms - The terms or standards the agency negotiates with, or requires of, the payor, for settlement of a debt or obligation. Processing Float (Collections) - The average amount of time between the initial receipt of the payment in the agency's mailroom and receipt of the related deposit by the depositary. Public Moneys - Includes, without being limited to, revenue and funds of the United States and deposit funds subject to the control or regulation of the United States or any of its officers, agents, or employees. Settlement Date - For payments, the date the receiving financial institution's Federal Reserve account is credited and Treasury's account is debited. For collections, the date the Federal Reserve account of the remitter's financial institution is debited and the Treasury's account is credited. Section 8025 - Billings and Collections 8025.10 - Timeliness of Billings and Collections. Agencies responsible for the preparation of invoices to individuals and organizations outside the U.S. Government will adhere to the following: - Ensure that an invoice, for either an actual or estimated amount, is prepared and mailed within 5 business days after the day that goods have been shipped or released, services have been rendered, or payment is otherwise due. Agencies may prepare and mail an invoice later than the 5-day timeframe if they can demonstrate that it is cost effective to do so. - Include a payment due date on the invoice that will not be more than 30 days from the date of the invoice, unless otherwise provided by law. - If the value of the goods or services cannot be specifically determined, a bill equal to at least 75 percent of the estimated value will be prepared and mailed within 5 business days. Identify the estimated invoice as being a partial invoice and note that a final invoice will be completed when the value is determined. - Prepare and mail a final invoice within 30 days of the submission of an estimated partial invoice. - Collections normally are required to be made by EFT and must be arranged with FMS. When indicated by FMS, agencies will include a statement on the invoice requiring payment by EFT and provide the necessary information for EFT payment by the remitter. 8025.20 - Charges for Late Payments. Payment terms as stated in a contract, debt instrument, or notice of indebtedness (that is, demand letter) are expected to be adhered to by the debtor. If payment is not received by the due date, then an agency is expected to pursue collection of the debt using the appropriate available methods, and to assess interest, administrative charges, and penalties on past due amounts. Interest, administrative charges, and penalties will be assessed on all overdue payments, except as otherwise provided in 4 CFR 102.13(g), 102.13(h), and 102.13(i) or prohibited by statute. Interest is assessed on principal only (not on interest, administrative charges, and penalties), except in those cases where a debtor has defaulted on a previous repayment agreement or a judgment has been obtained. The minimum annual rate of interest to be charged will be calculated by Treasury as an average of the current value of funds to Treasury and will be published in the Federal Register each year by October 31, to become effective January 1. This Current Value of Funds Rate is subject to quarterly revision only if the published rate changes by 2 percentage points at the close of the prior calendar quarter. If revised, the new rate will be published in the Federal Register on or around the end of the first month of a calendar quarter, and is to be applied to overdue payments arising during the succeeding calendar quarter. Changes in the rate will also be published in a TFM bulletin. A higher rate of interest may be assessed if it is determined that a higher rate is necessary to protect the interest of the U.S. Government. The assessed rate will remain fixed for the duration of the indebtedness, unless a different rate is prescribed in an agreed-to repayment schedule. An agency will waive the collection of interest on a debt or any portion of the debt that is paid within 30 days after the date on which interest began to accrue. Detailed procedures for credit management and debt collection are available in the "Asset Management Manual," published by FMS. (See Contacts page.) 8025.30 - Collection Mechanisms All funds are to be collected by EFT when cost-effective, practicable, and consistent with current statutory authority. FMS acknowledges that agencies may find it desirable to utilize a menu of mechanisms, if the base of remitters is diverse. The mechanisms used for collecting funds for credit to the account of the U.S. Government will be jointly determined by the responsible agency and FMS and must have as their objective the minimization of total cost to the Government as a whole, including agency direct costs, the cost of purchased services, and the float cost of the money involved in the collection system. Agencies will evaluate new or modified collections flows using the following guidelines and provide recommendations to FMS. When consistent with the above criteria, agencies should generally consider mechanisms in the following order of preference: (1) Automated Clearing House (ACH)(the computerized facility for member depositary institutions to process payment orders in machine readable form), (2) Fedwire (for deposits requiring same-day settlement),(3) Debit/Credit Card (when cost effective), (4) lockbox, and (5) Treasury's General Account (TGA). As a general guideline for specific collections cash flows, agencies will utilize EFT as follows: - Fees\Fines. EFT will be adopted as the presumed method of collecting fees and fines, especially when these collection cash flows are recurring or of large dollar amounts. - Tax Collections. EFT will be adopted as the primary method for collecting taxes. EFT mechanisms may include ACH, credit card or debit card, or Fedwire. Any agency that proposes to use a collection mechanism other than EFT may be required to provide a supporting cost benefit analysis. The analysis should include all costs, including those beyond direct agency costs for implementing EFT. Major changes in collection systems or procedures will only be made after consultation with, and approval by, FMS. This includes entering into new contractual agreements and renewal of current contracts that affect the cash management process of agency collections. The FMS publication, Cash Management Made Easy, provides detailed information on all available collection mechanisms. Section 8030 - Deposits 8030.10 - Agency Deposits In addition to collecting receipts in a timely manner, each agency will deposit its receipts expeditiously. The detailed procedures governing deposits are included in I TFM, Part 5. 8030.20 - Timeliness of Deposits To reduce processing float and improve availability of funds, agencies must adhere to the following deposit practices: - Agencies will deposit receipts totaling $5,000 or more on the same day received prior to depositary cutoff time. Deposits will be made as late as possible prior to the specified cutoff time to maximize daily deposit amounts. - Moneys received too late in the day to meet the deposit cutoff time must be deposited the following business day. Agencies must have adequate internal controls in place to ensure the security of all undeposited funds. - Collections totaling less than $5,000 may be accumulated and deposited when the total reaches $5,000. However, deposits will be made by Thursday of each week, regardless of the amount accumulated. - Agencies will generally limit their deposits to one per day per deposit site. However, when beneficial to the Government, agencies will make multiple deposits. - The mailing of deposits (versus hand-carrying) to Federal Reserve banks (FRBs) or commercial banks may be done only when specifically authorized in writing by FMS (see Contacts page). In these cases, the deposit timeframe requirements apply to the timely mailing of deposits. When a deposit consists only of Treasury checks, agencies are authorized to mail those checks to the nearest FRB. Refer to the next item under this section for further details on the deposit of Treasury checks. - On-Line Payment and Collection System (OPAC) or other mechanism for which the agency has FMS approval, such as the SF 1081: Voucher and Schedule of Withdrawals and Credits, will be used for the transfer of funds between agencies. If Treasury checks are received totaling $5,000 or more, they will be deposited on the same day received at the nearest FRB rather than Treasury's General Account with a commercial depositary (I TFM 5-2000). Exception: Treasury checks received by agencies outside the United States may be deposited to a designated commercial depositary. Section 8040 - Disbursements 8040.10 - Disbursement Mechanisms All funds are to be disbursed by EFT when cost-effective, practicable, and consistent with current statutory authority. Agencies will evaluate new or modified cash flows using the following guidelines and provide recommendations to FMS. Fedwire may be used only for high-dollar, low-volume payments in excess of $100,000, when same day settlement is required: - Salary Payments. ACH will be adopted as the presumed method for paying employees. Direct Deposit enrollment forms for establishing regular payments will be designed to use this approach. If required by law, the forms must afford recipients the opportunity to reject EFT without justification. - Vendor and Miscellaneous Payments. Each department and agency will exercise its authority under the Federal Acquisition Regulations (FAR) to require that all contractors are paid by EFT in accordance with 31 CFR 206, unless a determination is made that it is not in the best interest of the Federal Government to do so. EFT will be adopted as the standard method of payment for all Federal program payments originated by agencies or their agents. To the maximum extent possible, agencies are required to use Vendor Express, which is the mechanism supporting the movement of Federal agencies' vendor and miscellaneous payments from checks and Fedwire to ACH processing. Agencies proposing to use any non-EFT mechanism for vendor and miscellaneous payments must successfully demonstrate to FMS why EFT is not feasible or cost-effective. FMS will work with each agency to develop and execute individual conversion plans and coordinate agency conversion plans with the Regional Financial Centers and the Federal Reserve System. - Payments. EFT will be presented to new beneficiaries as the presumed method for receiving benefits. EFT payment methods, such as Electronic Benefit Transfer, will be adopted and implemented to make EFT accessible to all benefit recipients. To minimize cash outlays and reduce imprest fund balances (see paragraph 8060.10), agencies must also consider the range of options available, such as the Government Travel Card, third-party drafts, Government Small Purchase Card, or ACH for travel advances and reimbursements. If an agency proposes to use a disbursement mechanism other than EFT, such as third-party drafts, it may be required to provide a supporting cost benefit analysis. The analysis should include all costs, including those beyond direct agency costs for implementation. The On-Line Payment and Collection System (OPAC) or other mechanism for which the agency has FMS approval, such as, the SF 1081, will be used for the transfer of funds between agencies. 8040.20 - Agency Payments Agencies will ensure that payment terms, which specify when payment will be due and how payment will be made, are contained in all contracts with any organization outside the U.S. Government (USG), per FAR and OMB Circular A-125, "Prompt Payment." Agencies shall include language from FAR 52.232 in all contracts which support the use of EFT. Invoices that are authorized for payment by an agency, including progress and final payments, will be paid in accordance with OMB Circular A-125 or when otherwise due. Accounting systems will be designed to ensure that invoices are paid timely and discounts are taken when appropriate (paragraph 8040.40). When agencies take discounts after the expiration of the discount period or fail to make timely payments, interest penalties will be paid according to the Prompt Payment Act Amendments of 1988 (Public Law 100-496) and OMB Circular A-125. 8040.30 - Timeliness of Disbursements An agency's systems must be designed to schedule the issuing of payments as close as administratively possible to, but no later than, the due date as specified in (1) the contract, (2) OMB Circular A-125, or (3) the invoice. Payment is deemed to be made on the date a check for payment is dated or the date an EFT payment is specified for settlement at an FRB. Payments must not be made on invoices prior to receipt and acceptance of the related goods and services by an agency or its agent, except as specifically provided by contract. Agencies must follow all provisions of OMB Circular A-125. 8040.40 - Cash Discounts Agency payment systems will incorporate procedures that take advantage of cash discounts as a matter of routine and eliminate any need for special handling. Such discounts will be taken when the discount terms applied in the conversion formula result in an effective annual interest rate equal to, or greater than, the Current Value of Funds Rate (Section 8025). The discount period is calculated from the date placed on the proper invoice by the contractor to the discount date. If the invoice is undated, the discount period will begin on the date a proper invoice is received by the designated billing office and the date annotated. All discount payments must be scheduled for issuance as close as possible to, but no later than, the last day of the discount period. The formula, with example, to convert discount terms to an effective annual discount rate to be compared against the Current Value of Funds Rate are in the figure on this page. Conversion Formula Discount Annual Calendar percent Days _____ x _______________________ 100 Percent Number of (-) Number of = Effective Minus Days in Days Left Annual Discount Payment in Discount Discount Percent Period Period* Rate *Discount period begins with date of an invoice, whereas payment period begins with receipt of an invoice in the designated billing office unless otherwise noted; in effect, the discount period will be reduced by the number of days' difference between the invoice date and date of receipt. Example for Application of Conversion Formula Current Value of Funds Rate: 5 percent Discount Terms: 2 percent / 10: net 30 Invoice Date: April 15 Receipt Date: April 21 (6 days elapsed time) .02 360 _____ x _____ = .28 or 28 percent 1.00 - .02 30 - (10-6) Based on this example, the effective annual discount rate exceeds the Current Value of Funds Rate, and the discount should be taken. Section 8050 - Cash Advances See I TFM 6-2000 for procedures relating to cash advances. Section 8060 - Cash Held Outside Treasury 8060.10 - Cash Held at Personal Risk, Including Imprest Funds, by Disbursing Officers and Cashiers Agencies will make unannounced verifications of the cash balances in imprest funds at least once each quarter. At least every 6 months, accountable officers shall ensure that such funds are commensurate with actual needs and meet the requirements specified in I TFM 4-3000 and the TFM supplement, Manual of Procedures and Instructions for Cashiers. Cash on hand shall be maintained at the minimum needed to meet normal requirements. In lieu of cash, agencies must use ACH for small purchases, travel advances, and reimbursements to the maximum extent possible. If using ACH is not cost-effective, practicable, or consistent with current statutory authority, agencies will use the Government Small Purchase Card or third-party draft. 8060.20 - All Other Cash Held Outside Treasury All public moneys must be deposited to the Treasury's General Account as prescribed in section 8030 unless there is specific statutory authority to do otherwise. Such funds include those held in escrow, seized in connection with law enforcement activities, deposited in court, obtained as a result of an agency's regulatory enforcement authority, and the like. Detailed information on the collateralization of accounts is found in I TFM 6-9000. Section 8065 - Restrictions on Financial Transactions With Foreign Countries and International Organizations These policies are intended to ensure that U.S. dollars are retained in the U.S. Treasury until actually required for immediate disbursement and that interest on U.S. funds will not be improperly used to subsidize international programs. These programs include bilateral program transactions with foreign countries and international organizations. Examples include procurement, research, and co-development and co-production projects. This section applies to all USG departments and agencies administering such international programs. 8065.10 - Policy On behalf of the USG, the Secretary of the Treasury has established the following USG-wide policies: - Funds shall not be withdrawn from the U.S. Treasury for transfer to any recipient prior to the need for the funds. This need is determined by the actual immediate funding requirements of the recipient country or organization. Dollar outlays for international programs requiring USG funding shall be made as closely as possible to current program expenditure needs. Monthly payments are the norm. - The USG funding requirements shall be obtained by appropriation. No part of program funding shall be derived from interest earned on USG contributions. The appropriate USG department or agency is responsible for assuring that any interest earned is promptly deposited to the Treasury Department receipt account "--1435, General Fund Proprietary Interest, Not Otherwise Classified." - The Treasury Fiscal Assistant Secretary in consultation with the Treasury Assistant Secretary for International Affairs will consider requests from a foreign country or international organization for temporary U.S. dollar deposit and safekeeping in a Treasury account. In extraordinary circumstances, requests for investment of such funds will also be considered. These requests should be accompanied by a recommendation from the concerned USG department or agency and should specify the reasons, the specific financial arrangements proposed, and relevant political and financial considerations. These policies are intended to ensure that U.S. dollars are retained in the U.S. Treasury until actually required for immediate disbursement and that interest on U.S. funds will not be improperly used to subsidize any international program. 8065.20 - Coordination with Treasury The Fiscal Assistant Secretary and the Assistant Secretary for International Affairs will be immediately advised of negotiations concerning international programs and will review the financial provisions of any pertinent Memorandum of Agreement (Understanding) before it is signed. Section 8070 - Foreign Currency The cash management of U.S. Government-owned foreign currencies generally requires the same principles and guidelines outlined in this chapter for the cash management of U.S. dollar transactions by U.S. agencies. For the cash management procedures and practices within the Federal Government relating to the purchase, custody, deposit, transfer, sale, and use of foreign exchange, see I TFM 4-9000 - Foreign Exchange Transactions. Section 8075 - Review, Monitoring, and Reporting of Agency Cash Management This section covers the procedures and documentation necessary for FMS to monitor agencies' cash management improvements. All funds are to be collected and disbursed by EFT when cost-effective, practicable, and consistent with current statutory authority. Cash Management initiatives will be developed by an agency when it is determined that improvements are needed. FMS will work with the agency to establish implementation dates and monitor agency cash management performance. In cases where an agency fails to meet a scheduled date within its control, or where an agency converts to a less cost-effective transfer mechanism without prior, written FMS approval, FMS will send a formal Notice of Deficiency to the agency's cash management official. Failure by an agency to meet a scheduled collections initiative implementation date within its control may result in the assessment of charges against the agency. 8075.10 - Agency Procedures Each agency will maintain a separate and distinct set of written internal procedures covering the subject of cash management. The procedures will cover agency activities and operations impacting the flow of funds to and from Government accounts and the balances in such accounts. A copy of agency procedures will be furnished to FMS upon request. 8075.20 - Cash Management Performance To ensure effective cash management, the job elements of agency personnel responsible for receipts and disbursements should include cash management as critical performance measurements. 8075.30 - Cash Management Reviews An agency is responsible for monitoring efficiency, effectiveness, and profitability in its cash management practices. The monitoring includes a methodology to ensure that an agency review is completed for receipts and disbursements. The review will-- - Determine if an agency is collecting and disbursing funds by EFT. - Determine if an agency is billing, collecting, and depositing in a timely manner. - Determine if an agency is making disbursements according to the Prompt Payment Act Amendments of 1988. - Document agency cash-flows to include all collections and disbursements. - Determine whether an opportunity exists to implement a better mechanism or process, or upgrade an e0xisting mechanism or process. Agencies may be required to perform a comprehensive cash management review every 5 years, the first of such reviews having been performed in 1986. FMS will notify agencies when reviews are scheduled and provide detailed information to the agencies on the process. FMS reserves the right to periodically review an agency's cash management program to ensure that adequate progress is being made to improve cash management at the agency. Agencies will be notified in advance of FMS's review and must make available all documentation related to each cash-flow. Agencies will be held responsible for the accuracy of such documentation. 8075.40 - Agency Certification Each year in which a cash management review is not performed, an agency's cash management official may be required to certify whether the agency's cash-flows meet the cash management standards set forth in the TFM. Agencies may also be required to update cash flow data and provide the status of implementation of cash management improvements. Agencies must return certification to FMS within a specified timeframe. 8075.50 - Establishing and Tracking Cash Management Improvements FMS will establish cash management initiatives identified through cash management reviews, on-site reviews, and other means. Progress on these initiatives will be tracked through FMS and agency sources and may be verified through the annual certification. FMS will work with agencies to determine the annual savings derived from each completed initiative. The standard formula for measuring interest savings based on benefit days is as follows: Cash Flow Amount x Benefit x Current Value = Interest 250 (Business Days) Days of Funds Rate Savings Formulas for calculating savings based on cost avoidance are provided to the reporting agencies by FMS. Section 8080 - Noncompliance with Collection, Deposit, or Disburse-ment Improvements This section covers policies and procedures for notifying an agency of noncompliance with scheduled implementation dates, for assessing charges against an agency for noncompliance, and for agency appeal. 8080.10 - Assessment of Charges Agencies will be held accountable for meeting implementation dates for initiatives developed either by mutual agreement with FMS or as prescribed by FMS after considering all applicable factors. Implementation of these initiatives will be monitored on an annual basis by FMS. Failure by an agency to meet a collection initiative implementation date within its control may result in assessment of charges for noncompliance in the amount of savings (determined by the interest savings formula) that would have been realized by timely implementation. 8080.20 - Warning Letter When FMS has determined that an agency is at fault and may not implement an initiative by the scheduled implementation date, a warning letter will be sent to the designated cash management official. The warning letter will indicate an FMS contact with whom to discuss possible solutions or alternative courses of action. For collections initiatives, the warning letter will also contain-- - Identification of the initiative and scheduled implementation date. - A statement that the implementation schedule of the initiative is in jeopardy and the basis for this determination. - The amount that will be charged, based on proposed savings associated with the initiative, if final implementation date is missed, and method of calculating charges. - FMS's authority to impose charges. - Agency's appropriation to be charged. 8080.30 - Issuance of the Notice of Deficiency for Collections Initiatives When an agency misses a scheduled collections implementation date within its control, FMS will send a Notice of Deficiency to the designated cash management official. The notice will be sent on the first working day after the scheduled implementation date and will include the same information listed under paragraph 8080.20, above. For collections initiatives, the notice will also advise the agency of the right to file an appeal, and the date the charge will be imposed, in the absence of an appeal. Charges will accrue from the date of the Notice of Deficiency and will be terminated when FMS has determined that an agency has implemented the initiative. 8080.40 - Appeals Agencies filing an appeal must submit the appeal in writing to the Commissioner, Financial Management Service, within 45 days of the Notice of Deficiency. FMS will acknowledge receipt of the appeal by letter within 5 days. a. Contents of an Appeal. An appeal from an agency must contain the following elements: - Statement of disagreement with provisions of the Notice of Deficiency and the basis for the appeal. - Action requested by the agency. b. Appeals Board. The Appeals Board will consist of the following three members, or their designees: - Deputy Chief Financial Officer, U.S. Treasury. - Assistant Commissioner, Federal Finance, Financial Management Service. - Cash management official from a Federal agency other than the appealing agency. This member to be chosen in alphabetical order from the list of agencies having confirmed Chief Financial Officers. c. Appeal Review Process. The Appeals Board will review the Notice of Deficiency, the written appeal from the agency, and any additional information submitted by FMS within 30 days of receipt of the appeal. Oral hearings will be held solely at the discretion of the Board. If additional time is required to review the appeal, the Board may extend this review period for an additional 30 days by notifying the agency prior to the expiration of the initial 30-day period. d. Appeal Decision. The Board will issue a written majority decision within 30 days, or as extended, after receiving an agency's appeal. The decision must contain-- - Disposition of the appeal. - Statement summarizing the basis of the decision. - Action to be taken by the agency and FMS. - Amount and effective date of any assessed charge. e. Deferral of Charges. The Board must specify the terms of any deferral of charges. Evidence of subsequent compliance with these terms must be submitted to the Board by the agency and FMS. The Board will review the evidence and decide whether to impose a charge. 8080.50 - Payment of Charges An agency must submit appropriate accounting information to the Assistant Commissioner, Federal Finance, Financial Management Service, within 30 days of the effective date of the charge or the appeals decision. The charge will be made against the agency's funds available for the administration or operation of the program(s) to which the collections relate. If an agency does not voluntarily pay the assessed charge, FMS will automatically debit the appropriate account. Charges will be assessed for each month that noncompliance continues. 8080.60 - Termination of Charges Charges will be terminated when the initiative has been implemented or, in the event of an appeal, when the agency has submitted evidence of compliance with the decision of the Appeals Board. 8080.70 - Issuance of the Notice of Deficiency for Payments Initiatives When an agency misses a scheduled payments implementation date, FMS will send a Notice of Deficiency to the designated cash management official. The notice will be sent on the first working day after the scheduled implementation date. FMS reserves the right at some future date to define the process for assessing charges against agencies for missing a scheduled payments initiative implementation date. Section 8085 - Cash Management Improvements Fund (CMIF) This section states the policies, procedures, and criteria for disbursing moneys from the CMIF. 8085.10 - Policy Moneys paid into the CMIF will be based on charges assessed under 31 CFR 206.9. Disbursements will be made for projects selected by the Project Selection and Approval Committee. The Committee shall consist of the following officials or their designated representatives: - Deputy Commissioner, Financial Management Service. - Assistant Commissioner, Federal Finance, Financial Management Service. - Agency Cash Management Official designated from one Federal agency other than the agency applying to the CMIF. (The order of agency assignment to the board will be published in a TFM bulletin.) The CMIF will not be used for routine operating expenses. Priority will be given to funding prototype systems and new applications of existing systems. Project selection will be based on payback and/or Governmentwide cash management applicability. 8085.20 - Requests for Payments from the Cash Management Improvements Fund A TFM bulletin will be issued when moneys from the CMIF are available. The bulletin will include the amount of money available in the CMIF and will specify any information required from the agency for consideration for payment from the CMIF. 8085.30 - Approval of Requests for Funds The Project Selection and Approval Committee will evaluate all requests and select appropriate projects for funding. The disbursement of moneys from the CMIF to an agency will be made under the authority of the Economy Act (31 U.S.C. 1535). Upon approval, the committee will authorize the transfer of the total amount of approved funds to the project agency or will arrange funding on a reimbursable basis. Money will be transferred to, and reported by, the agency as appropriate, based on current accounting procedures. 8085.40 - Reporting A quarterly financial report will be provided to FMS (see Contacts page for address) by each project agency. The financial report will include-- - Receipts (advances from the CMIF). - Disbursements (by object class). - Unexpended balance (undisbursed funds or moneys due from the CMIF). Information obtained from these reports and any additional reports required by law or regulation will be compiled by FMS for quarterly publication in the Treasury Bulletin. Section 8090 - Waivers, Exemptions, and Other Applicable Regulations 8090.10 - Waivers Requests for waivers from any of the requirements set forth in this chapter must be submitted to FMS for consideration. Each request must identify the specific requirement, state the reason for the request, the period of time to be covered by the waiver, and any documentation in support of the request. 8090.20 - Exemptions Agencies subject to Treasury regulations with programs that are exempt by law from one or more provisions of these regulations should advise FMS of the applicable program, the governing law, and the conflicting provision. The Tennessee Valley Authority is exempt from provisions of Section 2652 of the Deficit Reduction Act of 1984. 8090.30 - Other Applicable Regulations The provisions of this chapter are designed to supplement existing regulations relating to the subjects covered herein and do not relieve agencies from compliance with all other applicable regulations. CONTACTS Inquiries concerning paragraph 8025.20 regarding calculation of the value of funds rate, paragraph 8025.30, and concerning section 8075 of this chapter should be directed to: Department of the Treasury Financial Management Service Program Compliance & Evaluation Division Liberty Center (Rm 422) Washington, DC 20227 (Telephone 202-874-6610) Inquiries concerning other provisions of paragraph 8025.20 and credit management and debt collection, should be directed to: Department of the Treasury Financial Management Service Credit and Debt Management Division Liberty Center (Rm 508) Washington, DC 20227 (Telephone 202-874-6670) Inquiries concerning Section 8070 of this chapter and requests to mail deposits to an FRB should be directed to: Department of the Treasury Financial Management Service Banking Management Division Prince George Center II (Rm 500A) 3700 East-West Highway Hyattsville, MD 20782 (Telephone 202-874-6900) Inquiries concerning all other provisions of this chapter should be directed to: Department of the Treasury Financial Management Service Cash Management Policy & Planning Division Liberty Center (Rm 521C) Washington, DC 20227 (Telephone 202-874-6590)