Chapter 1000 Deposits For Credit To Treasury's General Account

Deposits For Credit To Treasury's General Account

Introduction: This chapter establishes procedures to be followed by the Depositaries located within the 50 United States and the District of Columbia (domestic Depositaries) when making deposits for credit to Treasury's General Account (TGA).

Section 1010—Scope and Applicability: This chapter applies to Treasury's General Account Depositaries located within the 50 United States and the District of Columbia (domestic Depositaries) and others to whom specifically extended.

Section 1015—Authority: These procedures are authorized by the Code of Federal Regulations at 31 CFR 202.

Section 1020—Terms and Definitions

For terms and definitions related to this chapter, please view the TFM Glossary.

Section 1025—Background

1025.10—Use of Domestic Depositaries

A TGA is maintained with an authorized Depositary to accelerate the collection and availability of funds to Treasury. Government officers who wish to deposit receipts with a domestic Depositary must make the necessary arrangements with the Banking Operations Branch (BOB). The Depositary may only accept deposits from Government agencies for credit to a TGA when specifically authorized to do so by BOB (see contacts page). In the event a Depositary is requested to accept a deposit from an unauthorized Government agency, the Depositary will notify BOB, and will advise the agency to refer to I TFM 5-4000 for the proper disposition of the deposit.

1025.20—General Description of CA$H-LINK

CA$H-LINK is a cash concentration system designed to concentrate funds and accounting details for deposits made by Federal agencies to TGAs maintained at designated Depositaries. The system consolidates agency accounting records at the Depositary level, performs data entry via a Financial Agent, and transfers the funds to the FRB through electronic funds transfer technology. Funds are transferred from the Depositaries directly to the Treasury's account at the FRB via the ACH system or wire transfers.

The Financial Agent collects accounting information from the Depositaries on a scheduled basis, prepares information to initiate funds transfers, and provides accounting details to the Fiscal Service. The accounting details of deposits reported by banks are reconciled by Fiscal Service with those reported by Federal agencies.

Compensation for services provided by a domestic Depositary in operating a TGA will be in the form of an ACH credit to the Depositary's specified account, in the form of the imputed value of a noninterest bearing Treasury Time Balance (TTB) placed at the Depositary, and/or the imputed value of collected overnight balances maintained in the TGA (immediately available funds). The method of compensation will be at the discretion of Fiscal Service.

1025.30—How to Become a Depositary

A financial institution interested in obtaining TGA deposits may market its services to Federal agencies in its area. Treasury establishes a Depositary based upon the request of a Federal agency and evaluation of the efficiencies offered by such a relationship.

To be designated as a Depositary, the financial institution must meet the eligibility requirements of 31 CFR Part 202, be able to accept ACH debits (subsection 1030.50), agree to a written MOU with Fiscal Service, and be specifically authorized by Treasury to accept deposits.

Section 1030—Operational Requirements

1030.10—Deposit Proof Requirements

The Depositary will proof each deposit received by balancing the dollar amount printed on the face of the SF 215 with the sum of accompanying remittance items. The Depositary will correct any out-of-balance occurrence caused by the Federal agency in preparing the deposit by either preparing an additional SF 215 or SF 5515 to balance with the sum of the accompanying remittance items. Depositaries will not adjust the amount by changing the amount on the face of the SF 215 submitted by the Federal agency. See Supplement #2 to V TFM, the CA$H-LINK User Guide, for specific details on processing adjustments.

1030.20—Crediting the Deposit

Each deposit received by a Depositary from Government agencies for credit to Treasury will be credited in the TGA on the day of receipt if received prior to the cutoff time.

1030.30—Depositary Reporting Requirements

Depositaries will report deposit information according to instructions provided in Supplement #2 to V TFM, the CA$H-LINK User Guide. Deposits will be reported by either personal computer with modem interface, or by touch-tone telephone response to the Financial Agent. Treasury may determine the method of reporting for a Depositary.

1030.40—Backup Processing Requirement

In some instances, the Financial Agent may be incapable of accepting deposits due to power failures or other unforeseen difficulties. Under these circumstances, Depositaries will transfer funds and accounting information according to Supplement #1 to V TFM: CA$H-LINK Operating Instructions for Domestic Treasury's General Account Depositary Banks, Section 11, Exception Processing. Depositaries affected by this requirement will be specifically designated and formally advised by Treasury. Liabilities in Section 1055 will apply for all Depositaries.

1030.50—Funds Transfers

TGA Depositaries are required to transfer the full amount of the deposit less debits in the TGA to the Treasury on the business day following the Federal agency deposit. Depositaries failing to so transfer will be liable for the imputed value of these funds in accordance with Section 1055. Depositaries will monitor the TGA on a daily basis for the correctness of the funds transfers. A Depositary is compensated for the imputed value of Uncollected Funds transferred to Treasury as described in subsection 1055.10. Funds will be transferred from the Depositary to Treasury via ACH debits or wire transfers.

ACH Debits - For Depositaries that complete their deposit reports prior to 8:00 p.m., eastern time, on the day of deposit, the Financial Agent will prepare, in ACH format, requests to debit the Depositaries' accounts or their correspondents' accounts, and credit the Treasury's account at the Richmond FRB. The Depositaries' accounts will be debited and Treasury's account credited on the next business day by the Richmond FRB.
All Depositaries, except those specifically exempted, will report through the CA$H-LINK system prior to the ACH cutoff on the day of Federal agency deposit. Any Depositary that can show a legitimate need to be authorized to report after the ACH cutoff will request and receive a written Late Call-in Authorization from BOB (see Contacts page). The request will include appropriate justification and documentation so that an evaluation can be completed in an efficient manner. BOB will notify Depositaries in writing of the disposition of their requests for Late Call-in Authorization.
In all cases, the deposit report to the Financial Agent must occur no later than 1:00 p.m., eastern time, on the business day following the day of deposit. All Depositaries that have been granted written Late Call-in Authorizations will wire transfer TGA funds to the New York FRB immediately upon receipt of the 1031 Wire Request. The funds transfer message will reference the acceptance number given by the CA$H-LINK system.
Wire Transfers - For Depositaries that complete their deposit reports after the 8:00 p.m., eastern time ACH cutoff, but before the wire cutoff time, the Financial Agent will collect the information necessary to prepare a 1031 Wire Request. The cutoff for completing a deposit report for which funds will be transferred by wire is 1:00 p.m., eastern time, on the business day following the day of deposit.
To improve Treasury's cash management position, if operationally feasible, Depositaries will make their deposit report to the Financial Agent by 9:30 a.m., eastern time, on the business day following the day of deposit. The Financial Agent will send the 1031 Wire Request directing the Depositary to transfer the funds by wire to the New York FRB. Depositaries will act on the 1031 Wire Request by preparing and sending a responding wire transfer no later than 1 hour after receipt of the request for funds. All wire transfers will be formatted as specified by the FRB and received at Treasury's account with the New York FRB, by 2:00 p.m., eastern time, on the business day following the day of deposit.
Multiple Accounts Per CA$HLINK Account Key - Although a Depositary may utilize more than one account to facilitate the processing and reconciliation of TGA deposits into a single CA$H-LINK Account Key, the CA$H-LINK Deposit Report consolidating those deposits will result in Treasury debiting only one account. Depositaries requiring Treasury debit more than one account will request written authorization from BOB. BOB will notify Depositaries in writing of the disposition of their requests.
Returned ACH Debits - If Treasury receives a dishonored ACH debit request, BOB will contact the Depositary to determine the reason the request was dishonored and instruct the Depositary to wire transfer the funds to Treasury's account at the New York FRB. Treasury reserves the right to charge the Depositary for the cost of the wire transfer when an ACH debit has been refused.

1030.60—Deferred Account Requirements

Deferred Accounts - In specific cases, at Treasury's sole discretion, Treasury will give written authorization to Depositaries to defer the transfer of Uncollected Funds. Supplement #1 to V TFM, CA$H-LINK Operating Instructions for Domestic Treasury's General Account Depositary Banks and Supplement #2, the CA$H-LINK User Guide, specify the procedures to be followed when processing a deferred account.
Description of the Automated Deferred Accounting Process - Each deferred Depositary will record the deposit report deferred information and report it to CA$HLINK via the deposit reporting system screen. Each deferred report will be processed through an edit routine to ensure that the report is accurate. The CA$H-LINK system will track any funds not transferred.

1030.70—Returned Item Requirements

The Depositary may debit the current day's deposit for the amount of checks dishonored and returned unpaid. The procedures specified in Supplement #1 to V TFM, CA$H-LINK Operating Instructions for Domestic Treasury's General Account Depositary Banks, provide the details for processing such an adjustment.

Section 1035—Compensation

1035.10—Eligibility for Compensation

During negotiations between Treasury and a financial institution regarding the establishment of a TGA, the subject of compensation will be addressed. If a financial institution requires compensation, it will formally advise Treasury during the negotiations. Alterations in the amount of compensation subsequent to the establishment of a TGA will be based on the results of an analysis of the information provided in accordance with subsection 1035.50.

1035.20—Product Categories and Standard Item Rates

BOB will provide a schedule of income and recognized expense categories (to be recognized for purposes of compensation). For each category, a per-category item rate will be provided and made a part of the MOU between Treasury and the Depositary, in accordance with Supplement #1 to V TFM.

Such categories and per-category item rates will remain in effect until superseded. Treasury will revise these rates periodically.

1035.30—Sources of Income

Depositaries may be compensated for services provided to the Treasury by means of ACH credits, the imputed value of TTBs, and/or the imputed value of collected overnight balances maintained in the TGA (Immediately Available Funds). The method of compensation is at the sole discretion of Treasury.

ACH Credits - Treasury may compensate the Depositary by means of an ACH credit for the recognized services provided. The amount of the credit is determined by the volume of recognized expenses, based on the applicable per category item rates, less the imputed value of any Immediately Available Funds of the delayed transfer of funds. Treasury will compensate the Depositary on a monthly basis.
Imputed Value of a Treasury Time Balance - Treasury may compensate the Depositary by maintaining a balance in a time deposit entitled ''U.S. Treasury Time Deposit - Open Account'' at the Depositary. The amount to be maintained in the time account will be determined by Treasury by the projected volumes of recognized expenses, which are based on the applicable per-category item rates, less the projected imputed value of any Immediately Available Funds or the delayed transfer of funds. The balance will be adjusted or removed at the sole discretion of Treasury. At all times, TTBs are subject to withdrawal by the Treasury. When feasible and when in the Government's best interest, Treasury will provide the Depositary with written notice of its intent to withdraw the TTB and will not ordinarily withdraw the TTB until the expiration of 14 calendar days after the date of the written notice. However, nothing will preclude Treasury from withdrawing TTBs without notice to the Depositary. Treasury will not be liable for any costs realized by the Depositary in the event of a TTB withdrawal.
As provided in subsection 1035.60, Depositaries will pledge collateral security for the entire TTB in advance of any TTB being placed at those Depositaries.
Imputed Value of Collected Overnight Balances (Immediately Available Funds) maintained in the TGA - As partial or complete compensation for the services provided by the Depositary in operating the TGA, Treasury will calculate the imputed value of the Immediately Available Funds in the TGA.

1035.40—Analysis Earnings Rate (AER)

The imputed value of TTBs and Treasury's General Accounts are calculated using the AER, which is the 3-month Treasury Bill Auction average (investment) rate. Such computations occur on a monthly basis by using the following calculations:

Treasury Time Balances (TTBs)

Treasury Time Balance
(multiplied by)

(equals)

AER Factor
AER Factor = [AER ÷ 365 (days) x #
calendar days in month]
Imputed Value of TTB

TGA Average Daily Collected Balance (Immediately Available Funds)

Average Daily Immediately Available Funds
(multiplied by)
(multiplied by)
(equals)

AER Factor
1 - reserve ratio
Imputed Value of TGA Average
Daily Collected Balance

TGA Average Daily Uncollected Balance (Uncollected Funds)

Average Daily Uncollected Balance
(multiplied by)
(equals)

AER Factor
Imputed Value of
TGA Average
Daily Uncollected
Balance

Average Daily Immediately Available Funds is calculated as follows:

Total dollar amount ÷
of all items available
(including cash &
checks drawn on
the Depositary)
on the Date
of Deposit
for the month

Total number x
of business
days in the
month

(1 - Reserve
Ratio)

Average Daily Uncollected Funds is calculated as follows:

Step 1

Total dollar amount of ÷
all items collected on
the second business day
after the Date of
Deposit for the month

Total number =
of business
days in the
month

subtotal
for Step 1

Step 2

Total dollar amount of ÷
all items collected
after the second business
day after the Date of
Deposit

Total number x 2 =
of business
days in the month

subtotal
for Step 2

Step 3:

Subtotal +
for Step 1

Subtotal =
for Step 2

Total

1035.50—Income and Expense Reporting

Depositaries will report recognized income and expenses on a monthly basis to Treasury in order to receive compensation using the procedures in V TFM, supplements and bulletins thereto, and any amendments to any of the foregoing.

1035.60—Collateral Requirement

Depositaries will pledge collateral security in accordance with Title 31 of the Code of Federal Regulations, Part 202, to secure all public funds maintained with the Depositary, including Immediately Available Funds in excess of recognized insurance coverage, as determined by the Treasury. In addition, Depositaries will pledge collateral security in the amount of any Treasury Time Balance placed with the Depositary, in advance of such placement.

1035.70—Excess Earnings/Deficient Earnings

Excess earnings occur when a Depositary's income earnings as defined in V TFM, any supplements or bulletins thereto, and any amendments to any of the foregoing, are greater than its recognized expenses. Deficient earnings occur when a Depositary's income earnings are less than its recognized expenses.

The Depositary will be liable to Treasury for all excess earnings, and will return such to Treasury when requested. Treasury will determine in its sole discretion the method by which the Depositary will make Treasury whole. Treasury's methods include, but are not limited to:

A direct payment to the Treasury's General Account at the New York FRB, and
Offsetting past or future cumulative losses in the form of deficient earnings and/or the imputed value of funds.

Similarly, Treasury will be liable to the Depositary for deficient earnings, and will in its sole discretion determine the method by which it will make the Depositary whole. Treasury's methods include, but are not limited to:

Adjustments to the TTB,
ACH credits, and
Offsetting past or future cumulative gains in the form of excess earnings and/or the imputed value of funds delayed.

Section 1040—Forms

1040.10—Standard Form 215: Deposit Ticket (SF 215)

Deposits made with Depositaries for credit to a TGA will be submitted with the prescribed SF 215.

Preparation - The SF 215 will be prepared by the depositor who will enter the date the deposit is presented to the Depositary. Instructions for completing the SF 215 are printed on the reverse side of the form. The date of credit (confirmed date) that the Depositary has inserted on the SF 215 and the Date of Deposit provided to the Financial Agent by the receiving TGA Depositary should always be the same. Depositaries may also be required to prepare the SF 215 in complying with the Deposit Proof Requirements (subsection 1030.10).
Acknowledgement of Receipt - The Depositary will date and sign the original and all copies of the SF 215, certifying that the deposit has been received for credit to the TGA. This signature will be in one of the following forms: (1) a handwritten signature of an authorized officer or employee, followed by the title of the officer or employee, followed by the title of the officer or employee; or (2) a rubber-stamp impression showing the name of the Depositary, supported by the handwritten initials of the receiving authorized officer or employee, followed by the title; or (3) a facsimile or rubber stamp impression of the signature of an authorized officer or employee placed over the officer or employee's official title, supported by the handwritten initials of the officer or employee. All initials or signatures will be in ink.
Disposition of Original and Copies - The Depositary will retain the original of each SF 215. Copies of the SF 215 will be distributed according to the instructions printed on each copy. The Depositary will not forward any copies of the SF 215 to the FRB or Treasury.
Copies of SF 215 - The Depositary will furnish copies of a processed SF 215, upon request, to a Government agency or Treasury even after the TGA is closed. When a copy is provided, the Depositary will plainly stamp "COPY" across the face of the SF 215.

1040.20—Standard Form 5515: Debit Voucher (SF 5515) and Counterfeit Currency Procedures

The Depositary will prepare an SF 5515 to reduce the balance in the TGA as a result of a correction to a deposit (subsection 1030.10) or to process a returned check. The Depositary will handle any check that is not paid for any reason by the bank on which it is drawn according to the procedures described in V TFM, any supplements or bulletins thereto, and any amendments to any of the foregoing.

Preparation and Use of an SF 5515 - When an unpaid check is returned to the Depositary or when a check is lost by the Depositary prior to microfilming and/or forwarding for collection, the Depositary shall immediately (1) prepare and execute an SF 5515 and (2) charge the amount of the unpaid item to the TGA (subsection 1030.70).
Depositaries will not add or charge depositing agencies or the Treasury for any service charges, returned check charges, non-sufficient funds charges, or any other non-recognized charges or expenses, on the SF 5515 or otherwise. Endorsements on the reverse of checks deposited will include the depositor's Agency Location Code (ALC) in the top 1 1/2 inches on the check. Depositaries will then prepare an SF 5515 from the information furnished on uncollectible checks without referring to the related SF 215. If the depositor's ALC or address is unreadable, or if the check has been lost, the Depositary will refer to the related SF 215 to obtain this information. As finding an SF 215 may be time consuming, Depositaries are permitted to compile a list of regular depositing agencies showing their respective ALCs and addresses.
Depositaries will retain a record of the drawer, drawee bank, and the amount of each unpaid check. The original of the SF 5515 shall support the charge to the TGA and shall be retained by the Depositary. All unpaid checks will be delivered or forwarded to by Depositaries to the depositing agency, together with the memorandum and confirmed copies of the SF 5515. If an unpaid check is not recovered by a Depositary, a notification to the depositing agency citing the reason the check was not returned will accompany the copies of the SF 5515.
Charging Returned Items to the Treasury's General Account - The TGA will be charged with the total amount of the unpaid items recorded on the SF 5515. No service charges, returned check charges, non-sufficient funds charges, or any other non-recognized charges or expenses will be added or charged to the depositing agency on the SF 5515. At the close of business of the same day, the Depositary will distribute all copies of the SF 5515 according to the instructions printed on each copy.
Handling of Excess Returned Items - If a Depositary has an SF 5515 that cannot be fully offset by the deposits in the TGA without causing an overdraft in that account, the Depositary will not charge the total amount on the SF 5515 to the TGA on the Depositary's books, unless the procedure stated in subsection 1040.30 is followed. The Depositary will contact BOB for authorization to send the SF 5515 directly to the local FRB with instructions to charge the TGA at that FRB and credit the Depositary's reserve account or the reserve account of the Depositary's correspondent for the total amount on the SF 5515. If BOB authorizes the above procedure, Treasury will notify the FRB to accept and process the transaction submitted by the Depositary as an exception item.
Charging Returned Items After the TGA Has Been Closed - If a Depositary receives a returned item after its TGA has been officially closed by Treasury, the Depositary will contact BOB for written authorization to send the SF 5515 directly to the local FRB. The SF 5515 will be accompanied by instructions to charge the TGA at that FRB and credit the Depositary's reserve account or the reserve account of the Depositary's correspondent for the total amount on the SF 5515. After the Depositary has received BOB's written authorization, the Depositary will prepare the SF 5515 as instructed above. The original of the SF 5515 will be forwarded to the FRB with notification that Treasury has approved the transaction, and the returned item (unpaid check) will be forwarded to the depositing agency, together with the memorandum and confirmed copies of the SF 5515. If BOB authorizes the above transaction in writing, Treasury will notify the FRB to accept and process the transaction submitted by the Depositary as an exception item. If Treasury does not authorize the above procedure in writing, no charge to the TGA at the FRB will be permitted.
Counterfeit Currency - A debit voucher (SF 5515) will be processed for the amount of suspected counterfeit currency deposited to TGA. Depositaries will surrender the suspected counterfeit currency to the Secret Service. On the debit voucher, Depositaries will reference the SF 215 used to deposit the surrendered currency to the TGA. Depositaries will also provide the depositor with a photocopy of the Secret Service Form 1604: Counterfeit Note Report, that accompanied the surrendered currency to the Secret Service. An SF 215 accomplishing the reversal action will be processed for the amount of surrendered currency that the Secret Service subsequently determines is not counterfeit.

1040.30—Special Arrangement Between Depositary and Depositing Agency

Upon written approval from depositing agencies, Depositaries may defer charging the TGA for returned items by having uncollectible checks automatically reprocessed for collection, returned to the depositing agency to be presented again, or replaced by new checks. Under this arrangement, SF 5515s will not be prepared to charge the account unless the checks are not collected or replaced within an agreed period of time. A Depositary will not use such an arrangement prior to obtaining written approval from a depositing agency. If such written approval is granted, it is limited to deposits from the approving agency only.

1040.40—Forms Requisition

See "Contacts" page for forms ordering instructions.

Section 1045—Document Retention

TGA Depositaries will retain original copies of each of the following documents for 6 years and 6 months from the date of origin of the completed document, regardless of whether the TGA is subsequently closed. At the end of the 6-year and 6-month retention period, the Depositary may destroy the documents. The documents will be maintained in either paper or microfilm or microfiche form. Depositaries will not add or charge either the Treasury or any depositing agency for any service charges, copying charges, researching charges, or any other charges for requesting photocopies, or any information regarding retained documents either before or after the TGA is closed. Depositaries will retain the following documents for the above period of time:

SF 215, SF 215A, and SF 215B,
SF 5515,
Trace Numbers from CA$HLINK Deposit Reports, and
Statements of Account Activity (SAAs).

TGA Depositaries which cannot produce copies of any of the above documents upon a request by Treasury or a depositing agency within 30 days will be liable for any amount(s) owed to the Government, as calculated by Treasury.

Section 1050—Resolving Differences: The receiving Depositary will provide for accounting detail movement to Treasury via a telecommunications network and truncate the flow of all paper documents in the system. The Depositary will retain the original copies of source documents. When there is a difference between agency and Depositary reporting of deposits, the agency will contact the Depositary. Depositaries will cooperate with agencies in resolving differences in reporting deposits for credit to the TGA at the earliest practical date. Failure to cooperate in resolving differences may result in termination of the TGA.

Section 1055—Value of Funds

The party holding TGA funds longer than permitted will be responsible for the value of those funds. If a Depositary holds funds that were required to be transferred to the Treasury, the Depositary will be liable to Treasury for the imputed value of the funds erroneously held. Conversely, if the Depositary transfers funds in excess of the proper amount, Treasury will be liable to the Depositary for the imputed value of funds erroneously transferred. These liabilities automatically apply without regard to fault.

Treasury will in its sole discretion determine the appropriate manner in which to adjust the party-who-lost value under these circumstances. Value will generally be computed as stated in this section.

Treasury may collect the imputed value of any delayed funds by methods including, but not limited to, increasing the Depositary's income on the periodic income and expense analysis by the imputed value of the amount delayed, or by direct billing to the Depositary for such value, or by liquidating any collateral pledged by the Depositary. Direct billing may take the form of an ACH debit against the Depositary. By accepting deposits from Government agencies, the Depositary is deemed to authorize Treasury to collect the imputed value of delayed funds by charging through the FRB either the reserve account of the Depositary or its correspondent. Imputed value of funds delayed is computed on the average of the daily Federal Funds Rates for the period for which the funds were delayed.

1055.10—Uncollected Funds Transferred to Treasury

Treasury will reimburse eligible Depositaries for the imputed value of Uncollected Funds transferred to Treasury, based upon periodic review of the deposit activity and analysis of the TGA's income (as defined in V TFM, any supplements or bulletins thereto, and any amendments to any of the foregoing) and recognized expenses. The imputed value of Uncollected Funds is computed as provided in V TFM, any supplements or bulletins, and any amendments to any of the foregoing.

1055.20—Depositary Transfer Delays

If a Depositary does not comply with reporting requirements or delays the transfer of funds from the Depositary to Treasury for any reason, the Depositary will be liable for the imputed value of funds delayed. The imputed value of such funds is calculated utilizing the Federal Funds Rate.

Section 1060—Processing Treasury Checks: Depositaries will clear all checks received in deposit from Federal agencies via its normal banking arrangements. The Depositary will not reduce the amount of the net transfer to the FRB by the amount of Treasury checks received in the TGA deposit.

Contact Information

Detailed Contacts

Forms prescribed in this chapter can be obtained from:

Supply and Property Management Branch
Division of Facilities Management
Bureau of the Fiscal Service

3361-L 75th Avenue
Ardmore East Business Center
Landover, MD 20785

301-344-8577
301-344-8583

Direct inquiries regarding this chapter to:

Department of the Treasury
Bureau of the Fiscal Service
Over the Counter Division

3201 Pennsy Drive, Building E
Landover, MD 20785

202-874-6893