Collections Forecasting

Forecasting Requirements

Requirements for Deposits and Disbursements

Entity financial officers must report to Fiscal Service, in advance, all estimated 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 estimated 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. Often entities do not have exact amounts; however, a close estimate is acceptable and can be updated when a more accurate amount is determined. 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 by 7:30 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.

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 Standards (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.

Capture debt category (for example, bankruptcy and at private collection agency) to support debt reporting consistent with the TFM

Match delinquent debtor information with payment recipient information within and between federal agencies to affect administrative debt offsets (for example, by administrative wage garnishment and request for paying agency to collect the offset) as required by the CFR as well as OMB Circular No. A-129, and consistent with the TFM.

Determine allocation of amounts collected (for example, first to penalties and administrative costs, second to interest, then to accounts receivable) as specified in the CFR.

Deposit collections [for example, checks, cash, and Automated Clearing House (ACH)] received as specified in the TFM.

Managing Debt (2.2.5)

Capture deposit identifying and status information to reconcile agency deposits with Treasury account balances.

Refer debt for collection (for example, to Treasury if delinquent more than 120 days and to the Department of Justice whenever the agency determines debt is uncollectable) as required by OMB Circular No. A-129 and consistent with the TFM.

Provide debt management data required to post GL transactions consistent with USSGL transaction codes, transaction categories (for example, adjustments/write-offs/reclassification), and transaction subcategories (for example, write-offs) as defined in the TFM.

Use Cases