Non-Credit Reform Borrowing

This chapter prescribes the responsibilities, policies, and procedures that the Department of the Treasury (Treasury) has established for federal agencies that have been granted authority by law to borrow funds from Treasury, other than federal agencies that borrow from Treasury under the Federal Credit Reform Act of 1990, as amended (FCRA). This chapter does not apply to accounts that are under the FCRA. See TFM Volume I Part 2 Chapter 4600 for guidance on borrowing from Treasury under FCRA.

The accounts of federal agencies which have been granted authority by law to borrow funds from Treasury, other than federal agencies that borrow from Treasury under FCRA, are referred to in this chapter as “Non-Credit Reform Accounts.” This chapter generally describes the responsibilities, policies, and procedures that Treasury, and the federal agencies that have programmatic responsibility for the use of borrowed funds, have relating to Non-Credit Reform Accounts. The federal agencies that have programmatic responsibility for the Non-Credit Reform Accounts are referred to in this chapter as “Federal Program Agencies.” This chapter does not relate to repayable appropriations made to Federal Program Agencies for their Non-Credit Reform Accounts.

Treasury will develop a separate Memorandum of Understanding (MOU) between Treasury and the Federal Program Agency for each Non-Credit Reform Account to set forth the specific policies and procedures of Treasury regarding the Non-Credit Reform Account and to describe the respective responsibilities of Treasury and the Federal Program Agency relating to the Non-Credit Reform Account. The provisions of this chapter shall apply to such new Non-Credit Reform MOUs.

Treasury and the Federal Program Agency for a particular Non-Credit Reform Account may agree to supplement the provisions of this chapter or supersede the provisions of this chapter by means of a written MOU between Treasury and the Federal Program Agency.

Anywhere the federal statute or MOU directly conflicts with this chapter, the statute or MOU will prevail.

No provisions of any agreements between Treasury and the Federal Program Agency or any Advances made under an MOU between Treasury and the Federal Program Agency may be amended, modified, supplemented, waived, discharged, or terminated orally. Any amendment, modification, supplement, or termination must be mutually agreed upon by Treasury and the Federal Program Agency and must be in writing to be effective. Either party to the agreement may make a request for an amendment, modification, supplement, waiver, or termination.

The non-enforcement by Treasury of any term or condition of this chapter is not a waiver of such term or condition and does not prevent subsequent enforcement by Treasury of any failure on the part of the Federal Program Agency to comply with or satisfy such term or condition.

Many federal statutes have established special accounts in the Treasury of the United States, generally to serve as accounting devices for tracking the receipts and disbursements of federal programs authorized by statutes. Certain statutes authorize Federal Program Agencies to borrow from or issue obligations to Treasury and authorize Treasury to purchase such obligations as a means of effectuating an Advance to Non-Credit Reform Accounts. Besides establishing the borrowing authority, the statutes often specify borrowing limitations, expiration of the borrowing authority, the purpose of the Non-Credit Reform Account, how the Interest Rate will be determined, and various other items that apply to a specific Non-Credit Reform Account. The governing language used in the statutes often varies among Non-Credit Reform Accounts. Federal Program Agencies must request Advances for their Non-Credit Reform Accounts only to the extent and in accordance with the terms and conditions prescribed by statute.

4825.10—Borrowing Authority

Legal authority is required to allow the Federal Program Agency to borrow from Treasury and for Treasury to loan to the Federal Program Agency. Before exercising its borrowing authority, the Federal Program Agency must contact its Office of Management and Budget (OMB) representative (see OMB Circular No. A-11, Section 79.4) to reserve the account. OMB will help the Federal Program Agency in, among other activities, setting up any necessary Treasury Account Symbols (TAS) with Treasury's Bureau of the Fiscal Service (Fiscal Service). Fiscal Service, as well as other involved offices at Treasury, including the Fiscal Assistant Secretary and the Assistant Secretary of Financial Markets, will review the statute authorizing or requiring Treasury to loan funds to a Non-Credit Reform Account to ensure that the statute provides sufficient legal authority for Treasury, acting through Fiscal Service, to make Advances. Treasury and Fiscal Service will also review the statute to determine the Advances permitted for the Non-Credit Reform Account as well as any restrictions or requirements that may apply. The review occurs either before or at the time the Federal Program Agency requests account establishment within the Central Accounting Reporting System (CARS), as described in subsection 4825.40 of this chapter. Upon completion of the review, Fiscal Service, other involved Treasury offices, and the Federal Program Agency, will begin creating the MOU. Terms and conditions contained in the MOU will be based upon the specific requirements set forth in the statute authorizing borrowing from Treasury, and the responsibilities, policies, and procedures set forth within this chapter.

The statute granting the Federal Program Agency borrowing authority may contain limitations on the authority that the Federal Program Agency is granted. The Federal Program Agency is responsible for ensuring that no requested Advances exceed any borrowing limitations set forth in the statute. While Fiscal Service may also monitor any statutory borrowing limitations, it is the responsibility of the Federal Program Agency to ensure full compliance before requesting Advances. The combined total amount of outstanding Advances from Treasury for any account may not exceed the maximum amount authorized by law to be outstanding at any one time for that account. Capitalized interest must be included when determining the total amount of Advances outstanding.

If the statute granting the Federal Program Agency borrowing authority contains language specifying a date as to when the Federal Program Agency's borrowing authority expires, the Federal Program Agency may not request Advances after such date.

Treasury offers a variety of funding options for Non-Credit Reform Accounts so long as they are within the authorities permitted by the statute granting the Federal Program Agency’s borrowing authority.

4825.20—Policies Relating to MOUs Between Treasury and Federal Program Agencies

The MOU between Treasury and the Federal Program Agency for each Non-Credit Reform Account will memorialize the specific policies and procedures of Treasury regarding the Non-Credit Reform Account and describe the respective responsibilities of Treasury and the Federal Program Agency relating to the Non-Credit Reform Account. The MOU will incorporate this chapter, as well as any requirements specified by the statute granting borrowing authority and any OMB circulars regarding federal credit, such as OMB Circular No. A-129. Treasury and the Federal Program Agency for a particular Non-Credit Reform Account may agree to supplement or supersede the provisions of this chapter within the written MOU between Treasury and the Federal Program Agency.

Treasury's policy is to require annual renewals of all MOUs on or before September 30, to be effective October 1 of the same calendar year. This allows Treasury and each Federal Program Agency to review their MOU at least once per year to discuss any changes or updates, and to ensure that the terms and conditions remain current. The annual renewals will also allow the parties to discuss any re-structuring of the MOU that may be needed to meet applicable updates and revisions, if any, to Treasury's policies and procedures.

4825.30—Obtaining an Account Identification Code from OMB for Each Non-Credit Reform Account

If a Federal Program Agency does not have an OMB account identification code, it is the responsibility of the Federal Program Agency to contact its OMB representative to obtain an account identification code for the purpose of establishing the Non-Credit Reform Account within OMB's budget system. Federal Program Agencies should refer to OMB Circular A-11 Section 79.4 (The Budget Data System), for directions to obtain an OMB account identification code for a new Non-Credit Reform Account. Fiscal Service will base the TAS, as described in subsection 4825.40 of this chapter, on the OMB account identification code obtained.

4825.40—Establishing Each Non-Credit Reform Account within CARS

It is the responsibility of the Federal Program Agency to submit a letter to Fiscal Service requesting that the necessary TASs be assigned for purposes of establishing the Non-Credit Reform Account within CARS. This occurs after OMB has assigned an account identification code to the Non-Credit Reform Account. Federal Program Agencies should refer to TFM Volume I, Part 2, Chapter 1500 for directions to obtain TASs for new Non-Credit Reform Accounts, as well as for contact information of the area within Fiscal Service to which letters requesting the assignment of a new TAS should be sent. The TASs, including General Fund Receipt Account numbers, are published in the Federal Account Symbols and Titles (FAST) Book.

After Fiscal Service has assigned the necessary TASs, including a General Fund Receipt Account number, to a new Non-Credit Reform Account, Fiscal Service will notify the Federal Program Agency of the account symbols, the official account title, and reference the statutory authority for the account. This notice is referred to as the “Treasury Announcement”.

When the Federal Program Agency requests a loan from Treasury to a Non-Credit Reform Account, the Advance transactions need to be segregated from the normal receipt and expenditure transactions of the Non-Credit Reform Account for purposes of CARS. It is the responsibility of the Federal Program Agency in such circumstances to request Fiscal Service to assign subclass codes to the TAS for the Non-Credit Reform Account to capture the Advance data beyond the fund level.

To report special transactions such as Advances, Federal Program Agencies should use specialized Business Event Type Codes (BETCs) and/or subclass codes. For assistance with the assignment of these specialized BETCs or subclass codes to Treasury Account Symbols, contact the Budget Reporting Branch (see contacts). For additional information on BETCs, refer to the TFM BETC Guidance. After Fiscal Service has assigned subclass codes to the TAS for a Non-Credit Reform Account, Fiscal Service will prepare and send to the Federal Program Agency a notice communicating the subclass codes for that account. This notice is a “Subclassification Authorization.”

4825.50—Establishing Each Non-Credit Reform Account within the Federal Borrowings Program Accounting System

After Fiscal Service has assigned a TAS to a new Non-Credit Reform Account, it is the responsibility of the Federal Program Agency to notify and request Fiscal Service establish the Non-Credit Reform Account within Fiscal Service’s Federal Borrowings Program accounting system. This request should be delivered via email to Borrowings@fiscal.treasury.gov, and must include the TAS, General Fund Receipt Account number, and Agency Location Code (ALC) assigned by Fiscal Service. The request should also include the names, email addresses, and telephone numbers of the Chief Financial Officer and any other necessary points of contact for the Federal Program Agency.

When Fiscal Service and the other involved Treasury offices conclude that the Non-Credit Reform Account is authorized to receive Advances from Treasury, as described in subsection 4825.10 of this chapter, Fiscal Service will establish the Non-Credit Reform Account within Fiscal Service’s Federal Borrowings Program accounting system that is distinctly identified by the TAS and account title.

If the statute authorizing or requiring Treasury to loan funds to a Non-Credit Reform Account also establishes special reporting or accounting requirements for the account, such that Fiscal Service’s Federal Borrowings Program accounting system has to be modified or enhanced to accommodate the special reporting or accounting requirements, it is the responsibility of the Federal Program Agency for the account to work with Fiscal Service to establish mutually acceptable arrangements for the modifications or enhancements.

4825.60—Procedures Related to Enrollment in CARS

To enroll in the CARS Authority Transactions Module (ATM), which allows Federal Program Agencies access to the Agency user roles for Advance and repayment transactions, Federal Program Agency representatives can visit the IBM Security Identity Manager (ISIM) Self-Enrollment page where users can create ISIM IDs. Federal Program Agencies can also visit the CARS page for more information. Users will also be required to establish answers for authentication questions in the event of forgotten passwords. Once the answers to these authentication questions are established, users may reset their own passwords by clicking on the “Forgot your Password” link on the CARS logon page. Users with existing ISIM IDs can request a CARS account by selecting “Request Account” on the ISIM Self-Service page. CARS access requests are routed for supervisor approval. It is important to note that users will not be able to enroll or make modifications to their access unless their supervisor is already enrolled. Federal Program Agencies can also call the Treasury Support Center (see contacts) for additional assistance.

4825.70—Procedures Related to Enrollment in the IPAC System

To enroll in the Intra-governmental Payments and Collections (IPAC) system, which allows Federal Program Agencies access to process non-Principal payment and collection transactions, Federal Program Agency representatives can visit the IPAC page for more information. Users will also be required to establish answers for authentication questions in the event of forgotten passwords. Once the answers to these authentication questions are established, users may reset their own passwords by clicking on the “Forgot your Password” link on the IPAC logon page. Users with existing ISIM IDs can request an IPAC system account by selecting “Request Account” on the ISIM Self-Service page. IPAC system access requests are routed for supervisor approval. It is important to note that users will not be able to enroll or make modifications to their access unless their supervisor is already enrolled. Federal Program Agencies can also call the Treasury Support Center (see contacts) for additional assistance.

4830.10—Loaning Funds to Non-Credit Reform Accounts from Treasury

Subject to all the applicable conditions specified herein, Fiscal Service must approve each properly executed Advance transaction. Treasury is under no obligation to make any Advance unless and until all applicable conditions have been satisfied.

Treasury must make each Advance by an internal transfer of funds from Treasury to the Non-Credit Reform Account of the Federal Program Agency. For value received, Federal Program Agencies will promise to pay Treasury such amounts as may be advanced from time to time by Treasury to the Federal Program Agency. Subject to the restrictions in this chapter describing certain circumstances when an Advance is made on a later date, Treasury must make each Advance on the date requested by the Federal Program Agency.

If Local Conditions prevent Fiscal Service from making an Advance on the date that the Advance is requested to be made by the Federal Program Agency, then Fiscal Service must make such Advance as soon as the Local Conditions cease to prevent Fiscal Service from making such Advance.

Federal Program Agencies should establish contingency procedures for conducting Advance transactions with Fiscal Service if the Federal Program Agency offices are temporarily closed due to Local Conditions. Federal Program Agencies are strongly encouraged to share such contingency plans with Fiscal Service.

4830.20—Policies and Procedures Relating to Borrowing as Needed

Advances will be made from time to time by Treasury on an as-needed basis to fund the Federal Program Agency, as evidenced by an approved form of request from the administrator of the Federal Program Agency (or other such authorized representative) as a Non-Expenditure Transfer transaction through the Agency Transaction Module of CARS. Advances are requested only at times and in amounts necessary to meet the immediate cash needs of the Federal Program Agency. Immediate cash needs means cash needs arising within 60 calendar days of the Advance.  Requests for Advances are made in accordance with the forms and procedures for warrant and Non-Expenditure Transfer Transactions set forth in TFM Volume I, Part 2, Chapter 2000.

4830.30—Policies Relating to Business Days

Whenever the date set forth in the “Effective Date” field within CARS for an Advance request falls on a day on which either Treasury or the Federal Reserve Bank (FRB) of New York is not open for business, the requested Advance that would otherwise be made on such date shall be made on the first day thereafter on which Treasury and the FRB of New York are both open for business (any such day being a “Business Day”).

4830.40—Policies Relating to the Investment of Borrowed Funds

Advances for investment purposes are prohibited. If the Federal Program Agency has both an Advance and an investment of funds on the same day with both maturing the following Business Day, Treasury will decrease the Interest Rate on the invested funds, to the extent that invested funds do not exceed the amount of the Advance, so that the Interest Rate on the invested funds equals the Interest Rate on the Advance. If the Interest Rate on the invested funds is less than the Interest Rate on the Advance, the Interest Rate on the invested funds will not increase. This will be necessary to preclude any arbitrage profits. Generally, Federal Program Agencies must disinvest before requesting an Advance for their accounts.

4830.50—Policies Relating to Advanced Notification

Except for same day Advances, Treasury requires advanced notification prior to the requested date for the Advance. The advanced notification must be received by Treasury in the form of an Advance transaction submitted through CARS on or before 3:00 p.m. Eastern Time (ET) on the third Business Day prior to the requested date for the Advance. If the advanced notification is not received on or before 3:00 p.m. ET on the third Business Day prior to the requested date for the Advance, then Fiscal Service will make the Advance as soon as practicable thereafter, but in any event, no later than the third Business Day after the request for the Advance is received by Treasury.

In the event the Federal Program Agency wishes to rescind a request for an Advance, email notification from the Federal Program Agency containing the request for rescission must be received by Treasury prior to 3:00 p.m. ET on the Business Day immediately preceding the requested date for the Advance. Failure to notify Treasury of a rescission in a timely manner may result in a late fee if specified in the MOU.

In the event a same day Advance is needed, the Advance transaction must be certified by the Federal Program Agency by 3:00 p.m. ET to be approved on the same day and to be reported in the accounting period of the same day. Fiscal Service will complete the internal transfer of funds to the Non-Credit Reform Account only after the Non-Expenditure Transfer has been approved by Fiscal Service in CARS and the transaction has a status of “posted” to CARS. Same day Advance requests received after 3:00 p.m. ET will be subject to rejection.

4830.60—Policies Relating to Disbursement Notification

The Federal Program Agency must comply with Treasury's current reporting requirements that apply to cash disbursements, which are set forth in TFM Volume I, Part 6, Chapter 8500. Treasury revises these reporting requirements from time to time. Federal Program Agencies should confirm reporting requirements prior to any disbursement of funds.

4830.70—Policies Relating to the Determination of Interest Rates for Advances from Treasury

Unless otherwise specified in the statute, the Interest Rate for each Advance must be established by Treasury based on the determination of the Treasury yield curve as of the close of business (at or near the 3:30 p.m. ET trading day close) on the Business Day before disbursement.

4830.80—Policies and Procedures Relating to Capitalized Interest

If the Federal Program Agency is unable to pay interest on any Advance when it comes due, the Federal Program Agency may borrow an amount equal to the interest due to make the interest payment on time. This amount will be reported as capitalized interest; but must be treated as an Advance and count toward the applicable statutory borrowing limitation. Capitalized interest must accrue interest and will be subject to the same terms and conditions as other Advances requested by the Federal Program Agency. Advances requested to pay interest must be evidenced by a Non-Expenditure Transfer transaction effected through CARS, and the corresponding interest payment must be made via the IPAC system.

4830.90—Responsibilities, Policies, and Procedures Relating to Advances

Use CARS to accomplish Advances. The Federal Program Agency will prepare a Non-Expenditure Transfer transaction within CARS, which must include the following information:

• Transaction Date and Effective Date (both dates must be the same as the Requested Advance Date),
• The amount borrowed, which when added to outstanding amounts borrowed under the authorizing statute, must not cause the resulting sum to exceed any borrowing limitations set forth in statute,
• Interest Rate (if available),
• Maturity Date, and
• Sub-Cohort (if applicable).

The effective date of Advances submitted through CARS must not be a date that is earlier than the date the transaction is submitted through CARS; the effective date may be a date that is later than the date the transaction is submitted.

Depending on specific circumstances set forth in the statute or the MOU, additional information may be required on the Non-Expenditure Transfer transaction in CARS. The Federal Program Agency is responsible for ensuring that all the required information on the Non-Expenditure Transfer transaction is correct. If all required information is entered completely and appears correct, Fiscal Service will approve the transaction in CARS. If the information is incorrect, Fiscal Service will reject the transaction in CARS and contact the Federal Program Agency to provide the reason for rejecting the transaction. All necessary corrections and/or changes specified by Fiscal Service must be made prior to resubmission of the transaction.

4835.10—Paying Interest and Repaying Principal to Treasury from Non-Credit Reform Accounts

Subject to all applicable conditions specified herein, Fiscal Service will approve each properly executed interest payment and Principal repayment transaction.

Each payment of Principal on an Advance made by the Federal Program Agency must be made when due, in immediately available funds, by an internal transfer of funds from the Non-Credit Reform Account to Treasury. This transfer must be made using CARS.

The outstanding Principal amount of each Advance is due and payable on the Maturity Date for the respective Advance. When there are multiple outstanding Advances with the same Maturity Date, repayments of Principal made at maturity will be applied against the Federal Program Agency’s outstanding Advances, on a first in, first out (FIFO) basis (i.e., payments must be applied in sequence, first, to the earliest-made Advance outstanding at the time of repayment).

Each payment made must be applied, first, to the payment of Late Charges (if any), then to the payment of unpaid accrued interest, and then to outstanding Principal. Interest payments that have corresponding Principal repayments must be submitted by the Federal Program Agency using the IPAC system and received by Fiscal Service on or before the date of Principal repayment. Fiscal Service will not approve in CARS Principal repayments with corresponding interest payments due on the same date until such time that the corresponding interest payment is received in the IPAC system. Refer to subsection 4835.80 of this chapter for more information on responsibilities, policies, and procedures relating to interest payments.

If Local Conditions prevent the Federal Program Agency from making an interest payment or a Principal repayment of any amount owing under this chapter when due, then the Federal Program Agency must make such interest payment or Principal repayment as soon as the Local Conditions cease to prevent the Federal Program Agency from making such interest payment or Principal repayment. Late Charges, as defined in subsection 4835.70 of this chapter, will not be assessed for this period; however, interest will continue to accrue at the established Interest Rate.

Federal Program Agencies should establish contingency procedures for conducting interest payment and Principal repayment transactions with Fiscal Service if the Federal Program Agency offices are temporarily closed due to Local Conditions. Federal Program Agencies are strongly encouraged to share such contingency plans with Fiscal Service.

4835.20—Policies Relating to Business Days

Whenever an interest payment, maturity, or other scheduled payment date falls on a day on which either Treasury or the FRB of New York is not open for business, the payment that would otherwise be made on such date must be made on the next Business Day thereafter. This Section must not change the Interest Payment Date, the computation of interest defined in subsection 4835.30 of this chapter and must not result in a Late Charge defined in subsection 4835.70 of this chapter.

4835.30—Procedures Relating to the Computation of Interest on Advances from Treasury

Unless otherwise specified in the statute, interest on Advances must be computed on the basis of:

(1) actual days elapsed from (but not including) the date on which the respective Advance is made (for the first payment of interest due for the respective Advance) or the previous Interest Payment Date (for all other payments of interest due for the respective Advance), to (and including) the date of repayment (for payments of interest associated with Principal repayments) or the next Interest Payment Date (for all other payments of interest due for the respective Advance),

and

(2) the actual days elapsed from (but not including) the previous Interest Payment Date to (and including) the next Interest Payment Date, such number being annualized by multiplying the result of 12 months in a year divided by the number of months in the interest payment period. The time component of the interest calculation is as follows:

T = AD / (PD x (12 / M))

Where T = time,

AD = actual days elapsed from (but not including) the date on which the respective Advance is made (for the first payment of interest due for the respective Advance), or the previous Interest Payment Date (for all other payments of interest due for the respective Advance), to (and including) the date of repayment (for payments of interest associated with Principal repayments), or the next Interest Payment Date (for all other payments of interest due for the respective Advance),

PD = actual days elapsed from (but not including) the previous Interest Payment Date to (and including) the next Interest Payment Date, and

M = months in interest payment period.

The amount of interest due is equal to the product of the Principal amount, the Interest Rate, and the time, as follows:

I = P x R x T

Where I = the amount of interest due, P = the Principal amount, R = the Interest Rate, and T = time.

4835.40—Policies Relating to Interest Payment Dates

Unless otherwise specified in the statute, interest will be due and payable semi-annually on March 31 and September 30. Other Interest Payment Dates may be negotiated if the Federal Program Agency can provide sufficient justification, although Treasury requires the interest payment frequency to be at a minimum annually.

4835.50—Policies Relating to Early Repayments of Principal

Early repayments are calculated at market value (not par) unless otherwise specified in the statute. Upon Treasury receiving at least five Business Days prior notice, the Federal Program Agency may repay any Advance in whole or in part on any Business Day before the Maturity Date of the Advance. Early repayment of an Advance must be at a price which would result in a yield on the amount prepaid, from (but not including) the date of the early repayment to (and including) the date of maturity, equal to the Treasury's new issue rate for issues of marketable Treasury securities with comparable maturities, computed by Treasury as of the close of business two days prior to the date of the early repayment using standard calculation methods of Treasury, plus accrued interest on the amount prepaid to (and including) the date of the early repayment.

If the Federal Program Agency submits an interest payment corresponding with an early repayment of Principal after the effective date of the early repayment transaction, Fiscal Service will reject the early repayment transaction in CARS.

In the event the Federal Program Agency wishes to rescind a request for early repayment of Principal, Treasury must receive via email notification from the Federal Program Agency containing the request for rescission prior to 3:00 p.m. ET, two Business Days prior to the requested early repayment date. Failure to notify Treasury of a rescission in a timely manner may result in a fee as specified in the MOU.

4835.60—Policies and Procedures Relating to Maturities

Each Advance must mature on the Maturity Date specified by the Federal Program Agency (in the respective Non-Expenditure Transfer transaction submitted through CARS requesting the Advance), if the Maturity Date selected by the Federal Program Agency meets all criteria set forth in the statute and the MOU. Maturity Dates must coincide with an Interest Payment Date and interest must be due at maturity. If the Federal Program Agency is unable to repay an Advance on the Maturity Date, the Federal Program Agency may request an Advance from Treasury to repay the original Advance (payment borrowing Advance), if the Maturity Date specified by the Federal Program Agency for the payment borrowing Advance meets all criteria set forth in the statute and the MOU. The Federal Program Agency must immediately notify Treasury if, at any point, it reasonably appears that the Federal Program Agency will be unable to repay its outstanding obligations when they are due. In such event, the Federal Program Agency will work closely with Treasury and OMB to obtain an appropriation or other funding to satisfy its obligations in full.

4835.70—Policies and Procedures Relating to Late Payments

In the event any payment of any amount owing to Treasury becomes an Overdue Amount, then the amount payable must be such Overdue Amount plus interest thereon computed as set forth below.

(1) The Late Charge must accrue from the scheduled payment date for the Overdue Amount until the date on which payment is made.

(2) The Late Charge must be computed on the basis of: (A) actual days (AD) elapsed from (but not including) the scheduled payment date for such Overdue Amount to (and including) the date on which the payment is made and (B) a 365 day year. Such that,

AD / 365

Where AD = actual days elapsed from (but not including) the scheduled payment date for such Overdue Amount to (and including) the date on which the payment is made.

(3) The Late Charge shall accrue at a rate (the "Late Charge Rate") equal to (i) the interest rate applied to the principal related to any Overdue Amount that was previously determined by the Treasury plus (ii) one and one-half times the rate to be determined by Treasury taking into consideration the prevailing market yield on the remaining maturity of the most recently auctioned 13-week United States Treasury bills.

(4) The initial Late Charge Rate must be in effect until the earlier to occur of: (A) the date on which payment of the Overdue Amount and the amount of the accrued Late Charge is made, or (B) that date which is 91 days after the scheduled payment date for such Overdue Amount. In the event that the Overdue Amount and the amount of the accrued Late Charge are not paid on or before that date which is 91 days after the scheduled payment date for such Overdue Amount, then the amount payable must be the sum of the Overdue Amount and the amount of the accrued Late Charge, plus a Late Charge on such sum accruing at a new Late Charge Rate to be then determined in accordance with (3) above at 91-day intervals from the scheduled payment date for such Overdue Amount, and must be applied to the Overdue Amount and all amounts of the accrued Late Charge to the date on which payment of the Overdue Amount and all amounts of the accrued Late Charge is made.

4835.80—Responsibilities, Policies, and Procedures Relating to Interest Payment Transactions

Payment of interest or other non-Principal amounts must be made using the IPAC system. Interest payments must be made to Treasury as cash payments and may not be made using any form of credits. Federal Program Agencies will process an interest payment through the IPAC system and record the payment on the Classification Transactions and Accountability (CTA). The amount from the IPAC transaction is reported automatically to the General Fund Receipt Account on the CTA based on TAS and BETC. Generally, Treasury establishes through Fiscal Service a separate and specific General Fund Receipt Account associated with each Non-Credit Reform Account. These seven-digit General Fund Receipt Accounts generally start with 020 and are Treasury’s TAS for the purpose of Expenditure Transfer transactions in the IPAC system. It is the responsibility of the Federal Program Agency to enter the payment transactions into the IPAC system as well as to enter the correct ALCs, TASs, and BETCs. For guidance to submit IPAC transactions, Federal Program Agencies should reference the IPAC page. Federal Program Agencies can also forward questions to the IPAC helpdesk at igt@fiscal.treasury.gov and IPAC@stls.frb.org.

4835.90—Responsibilities, Policies, and Procedures Relating to Principal Repayment Transactions

Principal repayment transactions must be accomplished using CARS. The Federal Program Agency will prepare a Non-Expenditure Transfer transaction within CARS, which must include the following information:

• Transaction Date and Effective Date (these must be the same date),
• Repayment Amount,
• Interest Rate,
• Maturity Date, and
• Sub-Cohort (if applicable).

The effective date of Principal repayment transactions submitted through CARS must not be a date that is earlier than the date the transaction is submitted through CARS; the effective date may be a date that is later than the date the transaction is submitted.

Depending on specific circumstances set forth in the statute or the MOU, additional information may be required to be included on the Non-Expenditure Transfer transaction in CARS. The Federal Program Agency is responsible for ensuring that all the required information on the Non-Expenditure Transfer transaction is correct. If all the required information is entered completely and appears correct, Fiscal Service will approve the transaction in CARS. Fiscal Service will reject the transaction in CARS if the information is incorrect and will contact the Federal Program Agency to provide the reason for rejecting the transaction. All necessary corrections and/or changes specified by Fiscal Service must be made prior to resubmission of the transaction.

The transfer of funds for repayments of Principal must be certified by the Federal Program Agency in CARS and any associated non-Principal payments must be entered by the Federal Program Agency into the IPAC system by 3:00 p.m. ET on the date set forth in the Effective Date field within CARS to be approved on the same day and to be reported for the same day and in the accounting period of the same day. Transactions received after 3:00 p.m. ET will be approved on the following Business Day, will be reported for the following Business Day, will be reported in the accounting period of the following Business Day, and will be considered late.

Section 9105 of title 31 of the United States Code requires government agencies, which include Federal Program Agencies for Non-Credit Reform Accounts, to, among other things, prepare financial statements covering all accounts and associated activities and have the financial statements audited.

Section 3513 of the United States Code requires Treasury to prepare reports that will inform the President, Congress, and the public on the financial operations of the United States Government. In fulfillment of this mandate, Fiscal Service publishes the Daily and Monthly Treasury Statements of Receipts and Outlays of the United States Government, the quarterly Treasury Bulletin, and the annual Financial Report of the United States Government.

4840.10—Federal Program Agency Reconciliation Responsibilities

To ensure the integrity and accuracy of the financial reports and information that Fiscal Service obtains, Treasury requires Federal Program Agencies to reconcile data on the account balances they maintain with the Treasury through the CARS Account Statement on a regular and recurring basis. Fiscal Service will post on TreasuryDirect a monthly Detailed Principal and Accrued Interest Report for each TAS that has borrowed from Treasury. The Detailed Principal and Accrued Interest Report shows the Principal and accrued interest broken down by specific Advances and/or transactions.

Fiscal Service will also post monthly on TreasuryDirect a General Ledger Balances Report that shows Fiscal Service's balances for Loans Receivable, Capitalized Interest Receivable, Interest Receivable, Interest Revenue, Gain, and Loss for each Federal Program Agency that had a balance with Fiscal Service in any of those United States Standard General Ledger (USSGL) accounts.

Federal Program Agencies should use the balances from both reports for reconciling their CARS Account Statement. If Federal Program Agencies have questions regarding reconciliation of these reports, they may contact the Federal Investments and Borrowings Branch (see contacts).

It is the responsibility of the Federal Program Agency to post all account activity transactions that are reported to Fiscal Service to a corresponding account in the Federal Program Agency's internal accounting system. It is also the responsibility of the Federal Program Agency to reconcile its internal account balances with corresponding account balances in CARS.

4840.20—Intra-governmental Eliminations

Federal Program Agencies should refer to TFM Volume I, Part 2, Chapter 5100 for guidance to reconcile their internal account balances with account balances in CARS, as well as for the area within Fiscal Service to which questions on account reconciliation may be addressed.

Treasury prepares and distributes reports and statements on the financial management and operations of the United States Government. To support this effort, Federal Program Agencies are required to submit the financial information through the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS).

Reporting requirements and instructions for these systems and guidance to reconcile intra-governmental transactions can be found in TFM Volume I, Part 2, Chapter 4700.

In addition, various statutes require Treasury to report annually to Congress on the financial condition and operations during the preceding fiscal year of particular Non-Credit Reform Accounts and on the expected conditions and operations of these accounts during a specified number of years in the future. In fulfillment of the mandate for publishing information on the financial condition and operations of the particular Non-Credit Reform Accounts during the preceding fiscal year, Fiscal Service will compile the information from CARS, the Federal Program Agency, and Fiscal Service will publish the information in a TFM bulletin.

Additional guidance can be found in OMB Bulletin A-136-Revised (Financial Reporting Requirements).

Treasury Support Center Telephone: 877-440-9476

For Advances from Treasury, Repayments to Treasury, and Interest Payments to Treasury:

Federal Investments and Borrowings Branch
Bureau of the Fiscal Service
Department of the Treasury
Parkersburg Warehouse & Operations Center Dock 1
257 Bosley Industrial Park Drive
Parkersburg, WV 26101
Telephone: 304-480-7488
Email: Borrowings@fiscal.treasury.gov
Website: Federal Borrowings Program on the TreasuryDirect website

For Non-Credit Reform Account Transactions and Accounts with Subclass Codes and Account Symbols and Appropriations:

Budget Reporting Branch
Budget Appropriations and Analysis Section
Bureau of the Fiscal Service
Department of the Treasury
PO Box 1328
Parkersburg, WV 26106-1328
Email: baasgroup@fiscal.treasury.gov