CASH ACCOUNTING AND REPORTING DIRECTORATE OVERVIEW

Critical Functions Providing program support to the Office of the Fiscal Assistant Secretary (OFAS) in monitoring, forecasting and managing Treasury’s cash and debt position Providing program support to the Office of the Fiscal Assistant Secretary (OFAS) in monitoring, forecasting and managing Treasury’s cash and debt position Coordinating the Daily Cash Position Management Conference Call Coordinating the Daily Cash Position Management Conference Call Publishing the Treasury Tax & Loan Press Releases Publishing the Treasury Tax & Loan Press Releases Publishing the Daily Treasury Statement (DTS) Publishing the Daily Treasury Statement (DTS) Maintaining and enhancing the CASH TRACK system Maintaining and enhancing the CASH TRACK system

Managing Treasury’s Money Treasury General Account (TGA) Treasury General Account (TGA) Serves as the U.S. Government’s “checking” account Serves as the U.S. Government’s “checking” account Deposits and payments of the U.S. Government are held at the Federal Reserve Bank of New York Deposits and payments of the U.S. Government are held at the Federal Reserve Bank of New York All Federal Government deposits and payments flow through the TGA All Federal Government deposits and payments flow through the TGA Treasury targets a daily balance of $5 billion Treasury targets a daily balance of $5 billion Treasury Tax & Loan Accounts (TT&L) Treasury Tax & Loan Accounts (TT&L) Serve as the U.S. Government’s interest bearing “savings” accounts Serve as the U.S. Government’s interest bearing “savings” accounts Deposits held at Treasury designated Financial Institutions across the U.S Deposits held at Treasury designated Financial Institutions across the U.S Hold tax receipts and excess cash until needed Hold tax receipts and excess cash until needed Allow Treasury to conduct scheduled borrowing operations Allow Treasury to conduct scheduled borrowing operations

4 U.S. Treasury’s central account held at the Federal Reserve Bank of New York. U.S. Treasury’s central account held at the Federal Reserve Bank of New York. Deposits and withdrawals to the TGA are processed through Federal Reserve payment systems such as FedACH and FedWire Funds and accumulated in the FRB CA$H-LINK system. Deposits and withdrawals to the TGA are processed through Federal Reserve payment systems such as FedACH and FedWire Funds and accumulated in the FRB CA$H-LINK system. At the end of each business day a net amount of all transactions processed for the TGA are settled by business areas and posted in a single debit or credit to the TGA. At the end of each business day a net amount of all transactions processed for the TGA are settled by business areas and posted in a single debit or credit to the TGA. Treasury General Account (TGA)

5 Transactions are accumulated throughout the day using the FRB CA$H-LINK System. Transactions are accumulated throughout the day using the FRB CA$H-LINK System. Settled funds are held in FRB internal control accounts until business areas complete an FRB CA$H-LINK “extract”. Settled funds are held in FRB internal control accounts until business areas complete an FRB CA$H-LINK “extract”. The extraction process moves funds from internal control accounts to FRB unique accounts linked to a TGA Master Account at FRB New York. The extraction process moves funds from internal control accounts to FRB unique accounts linked to a TGA Master Account at FRB New York. The FRB CA$H-LINK end-of-day process reconciles the amount of daily activity in FRB CA$H-LINK to the TGA Master Account at FRB New York, where the TGA balance is maintained. The FRB CA$H-LINK end-of-day process reconciles the amount of daily activity in FRB CA$H-LINK to the TGA Master Account at FRB New York, where the TGA balance is maintained. TGA Inflows and Outflows

Channels/ Programs IAS/AMI FRB CA$H-Link Fed Payments Systems Net Amount posted to the TGA at close of business Government Transactions Settlement Gateways Deposit Tickets Debit Vouchers, etc. IAS Posting File Internal Control Account Information TGA Transactions Settlement entries to DI accounts, offset to FRB Internal Control Accounts Entries to NY TGA Master account, offset to FRB Internal Control Accounts 6

7 Upon completion of the FRB CA$H-LINK end-of-day process, FRB NY compares the TGA ending balance to Treasury’s forecast for the day. Upon completion of the FRB CA$H-LINK end-of-day process, FRB NY compares the TGA ending balance to Treasury’s forecast for the day. FRB NY reviews any variances between the actual end of day balance and the forecast with Treasury. FRB NY reviews any variances between the actual end of day balance and the forecast with Treasury. TGA Monitoring

Critical Events for the Conference Call FRB NY reports the TGA closing balance to CASH TRACK by 9:00 p.m. on prior day FRB NY reports the TGA closing balance to CASH TRACK by 9:00 p.m. on prior day FRB’s report prior day transactions to CASH TRACK by 6:30 a.m. FRB’s report prior day transactions to CASH TRACK by 6:30 a.m. CFD receives current day ACH payments files from the FMS Regional Finance Centers by 6:30 a.m. CFD receives current day ACH payments files from the FMS Regional Finance Centers by 6:30 a.m. Lockbox Banks report current day tax collections by 8:15 a.m. Lockbox Banks report current day tax collections by 8:15 a.m. Federal Program agencies submit Large Dollar Notifications to CFD by 8:30 a.m. Federal Program agencies submit Large Dollar Notifications to CFD by 8:30 a.m. The DTS Desk analyzes prior day transactions and updates the short term forecast by 8:45 a.m. The DTS Desk analyzes prior day transactions and updates the short term forecast by 8:45 a.m. The DTS Desk and OFP share forecast information with FRB NY, Monetary Projections by 8:45 a.m. The DTS Desk and OFP share forecast information with FRB NY, Monetary Projections by 8:45 a.m. The DTS Desk makes preliminary investment or withdrawal proposals (call actions) by 8:50 a.m. The DTS Desk makes preliminary investment or withdrawal proposals (call actions) by 8:50 a.m. Conference Call takes place at 9:00 a.m. Conference Call takes place at 9:00 a.m.

Daily Cash Position Management Conference Call Process Held every banking day at 9:00 a.m. between; Held every banking day at 9:00 a.m. between; Treasury, Office of Fiscal Projections (OFP) Treasury, Office of Fiscal Projections (OFP) FMS, Cash Forecasting Division FMS, Cash Forecasting Division FMS, Investment Management Division FMS, Investment Management Division FRB NY, Monetary Projections/Open Market Operations Group FRB NY, Monetary Projections/Open Market Operations Group Board of Governors Board of Governors During the call the FRB NY, Board of Governors and OFP discuss the three day forecast and investment options During the call the FRB NY, Board of Governors and OFP discuss the three day forecast and investment options OFP makes decision to invest or withdraw funds from savings to achieve the $5 billion target balance on the TGA for the day OFP makes decision to invest or withdraw funds from savings to achieve the $5 billion target balance on the TGA for the day OFP takes preliminary action to invest or withdraw funds from savings to achieve a $5 billion target balance for the next business day OFP takes preliminary action to invest or withdraw funds from savings to achieve a $5 billion target balance for the next business day

Daily Treasury Statement Summarizes the cash and debt operations of the U.S. Treasury for the Federal Government Summarizes the cash and debt operations of the U.S. Treasury for the Federal Government Information is reported on a modified cash basis with deposits reported as received and withdrawals reported as processed Information is reported on a modified cash basis with deposits reported as received and withdrawals reported as processed Includes final daily totals, cumulative month to date and fiscal year to date totals Includes final daily totals, cumulative month to date and fiscal year to date totals Released to the public and available on the FMS website every business day at 4:00 p.m.; Released to the public and available on the FMS website every business day at 4:00 p.m.; File formats on.PDF and.txt File formats on.PDF and.txt Archive files dating back to 1998 available on the FMS website Archive files dating back to 1998 available on the FMS website

Daily Treasury Statement Information Operating Cash Balance; opening and closing balance for the day (Table I) Operating Cash Balance; opening and closing balance for the day (Table I) Details of deposit and withdrawal activity of agency programs and major functions; certain transactions reported only when $50 million or more (Table II) Details of deposit and withdrawal activity of agency programs and major functions; certain transactions reported only when $50 million or more (Table II) Bureau of the Public Debt transactions (Table III) Bureau of the Public Debt transactions (Table III) Federal Tax Deposits (Table IV) Federal Tax Deposits (Table IV) TT&L Transfers, deposits and withdrawals (Table V) TT&L Transfers, deposits and withdrawals (Table V) Federal Income Tax Refunds issued (Table VI) Federal Income Tax Refunds issued (Table VI)

Cash Accounting Division (CAD) Roles and Responsibilities Manage the Central Summary General Ledger Manage the Central Summary General Ledger Report on the Governmentwide Cash Balance and Other Monetary Assets Report on the Governmentwide Cash Balance and Other Monetary Assets

Central Summary General Ledger All transactions reported to FMS via the Statement of Transactions/Accountability and Transcripts from the FRB, CA$HLINK II, and TCIS post to the CSGL. CAD manages this data through the following processes: Account analysis Account analysis Establishing Central Summary General Ledger (CSGL) accounts and Public Money Symbols (PMS). Establishing Central Summary General Ledger (CSGL) accounts and Public Money Symbols (PMS). Performing Integrity Controls Performing Integrity Controls Transcript Tracking Transcript Tracking

Cash and other Monetary Assets Reports the Government-wide operating cash balance, in- transit and deferred cash and the USDO’s foreign currency holdings that contribute to the Governmentwide cash balance. Reports the Government-wide operating cash balance, in- transit and deferred cash and the USDO’s foreign currency holdings that contribute to the Governmentwide cash balance. Reports the U.S. Gold holdings by the Federal Reserve Bank. Reports the U.S. Gold holdings by the Federal Reserve Bank. Reports U.S. Currency and Coins Outstanding and in circulation. Reports U.S. Currency and Coins Outstanding and in circulation. Reports Cash and Investments Held Outside of Treasury. Reports Cash and Investments Held Outside of Treasury. Submits monthly TIER submissions to the Department by the third work day of the following month. Submits monthly TIER submissions to the Department by the third work day of the following month. -Included in Treasury’s F/S and Notes -Notes 2 of the Financial Report -Schedule of Non-Entity Government wide Cash

Additional Roles and Responsibilities Responsible for monitoring Federal Program Agencies (FPAs) Fund Balance with Treasury by receiving information about their financial condition and operations. Responsible for monitoring Federal Program Agencies (FPAs) Fund Balance with Treasury by receiving information about their financial condition and operations. Responsible for monitoring FPAs three central reconciliations: the Deposits-in-Transit, Undistributed Disbursements, and Checks Issued Comparison. Responsible for monitoring FPAs three central reconciliations: the Deposits-in-Transit, Undistributed Disbursements, and Checks Issued Comparison. Provide FPAs with the results of their financial reporting performance. Provide FPAs with the results of their financial reporting performance. Maintain Customer Assistance Group Help Desk. Maintain Customer Assistance Group Help Desk.

Performance Measures FMS Quarterly Scorecard reflects agencies’ performance in compliance with financial reporting standards: Accuracy, Timeliness and Checks Issued Comparison. FMS Quarterly Scorecard reflects agencies’ performance in compliance with financial reporting standards: Accuracy, Timeliness and Checks Issued Comparison. The standards use a traffic light grading system. The standards use a traffic light grading system. Provided to the CFO and DCFO of each agency. Provided to the CFO and DCFO of each agency.