Cash Forecasting and Reporting

Cash Forecasting Requirements

Overview

Scope and Applicability

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.

Authority

31 U.S.C. 3511, 3513

Background and Concepts

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.

General Large Dollar Notification Reporting Requirements for Deposits and Disbursements

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:

Transaction settlement date,

Amount,

Type of transaction (RCPT or PYMT),

Mechanism (ACH or wire), and

ALC.

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:

Date of report,

Name and address of the department, entity, bureau, or administration,

ALC or Defense Station Symbol Number (DSSN),

Contact name and telephone number,

Description of the transaction (deposit or disbursement),

Transaction settlement date,

Amount of the transaction,

Deposit or disbursement mechanism (Fedwire, ACH, or check),

FRB location, required for transactions processed by FRBs, and

Name and location of the depositary or payee.

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.

Reporting Requirements

Reporting Requirements for Daily Disbursements

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.

Reporting Requirements for Defense Department (EFT) Vendor Payments

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.

Reporting Requirements for U.S. Military EFT Payroll

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.

Other Reporting Requirements for Cash Forecasting

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.

Federal Financial Management Standards

Functions and Activities

Cash Forecasting and Reporting (FFM 110.030)

Prepare cash flow projections;

Report large dollar requirements for deposits and disbursements

Federal Financial Management System Requirements (FFMSR)

Making payments (2.2.2)

Capture federal government unique invoice prompt payment information (for example, invoice receipt date, discount, applicable interest rate determined per government formula, and accelerated payment) to support payment of invoices as specified in the CFR

Determine disbursement terms and amounts in accordance with the terms of the contract or agreement, and based on determination of invoice term, payment date, interest or penalty applicable, and amount as specified in the CFR.

Provide certified payment transaction information for the disbursing office to make disbursements as specified in the TFM.

Agencies for which Treasury does not disburse (for example, the Department of Defense): Provide payment disbursement forms that include payment transactions consistent with Government Accountability Office (GAO) policy and procedures and as specified in the TFM.

Agencies for which Treasury disburses: Capture disbursement identifying and status information to reconcile agency payments with Treasury disbursements.

Provide payment data required to post GL transactions consistent with USSGL accounts (for example, accrued interest payable-debt, disbursements in transit, delivered orders -obligations, paid), account attributes, account transaction categories (for example, disbursements and payables, collections and receivables, and accruals/non-budgetary transfers other than disbursements and collections), and account transaction subcategories (for example, payments/purchases, payables/accrued liabilities, and receipts) as defined in the TFM.

Reporting on Payments (2.2.3)

Agencies for which Treasury does not disburse: Provide disbursement summary and detail data as specified in the TFM.

Agencies for which Treasury disburses: Provide payment transaction information at the required account classification level (for example, appropriation, fund, and receipt) and subclass code as specified in the TFM.

Provide improper payment information as specified in OMB Circular No. A-123 and the TFM.

Use Cases