Disbursing Forecasting

Forecasting Requirements

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).

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.

Forecasting Transaction Requirements

General Large Dollar Notification (LDN)Reporting Requirements for Deposits and Disbursements

For more information on large dollar notification reporting requirements, visit TFX Collections Forecasting.

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.

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