collections 2010 and beyond: preparing your agency for the road ahead

Collections 2010 and Beyond: Preparing Your Agency forthe Road Ahead

Financial Management Service U.S. Department of the Treasury

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Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead

Welcome and Webinar Introduction

Carolyn Dunston, Director

Agency Relationship Management Division

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Collections 2010 and Beyond: Preparing Your Agency for the Road Ahead

Collections and Cash Management Modernization (CCMM)Gregory Till, Director

Modernization Planning Office

• What is CCMM? Collections and Cash Management Modernization (CCMM) is an initiative to simplify and modernize FMS’s and Treasury’s collections and cash management programs

Re-architecting of functions and programs that have accumulated over decades

Impacts other FMS offices (Govermentwide Accounting, payments) and agencies

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Collections and Cash Management Modernization (CCMM)

OTC

Check

Phone

Mail

“Bank”

Card

ACH Debit

Internet

CollectionChannels

Settlement Mechanisms

Report Centralize

Wire

Infrastructure: Bank Management, Collateral Management

ACH Credit

Collect

“Notional Diagram”


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• Scope– $2.86 trillion in annual gross revenue collections– 391.2 million revenue transactions– Hundreds of agency office customers– Over two dozen programs, each comprised of one or more

services or systems• Examples

– Taxes (over $2 trillion)– Student loan repayments– Customs duties– National Park entrance fees– Defense commissary retail sales– U.S. Mint coin sales– Donations to U.S. Battle Monuments Commission– SEC filing fees– FCC airwave auction fees

– Note: In most instances, the programs handle not only the financial information, but also the program information

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• What are CCMM’s objectives? – Simplify the architecture without sacrificing functionality– Centralize and standardize the accounting and forecasting

information provided to agencies and other Treasury systems – Promote and expand the use of electronic collection of receipts

• What are the benefits?– Save money– Mitigate risk – Improve services

• What are the biggest changes?– FMS is re-organizing its collections systems and processes to

streamline processes and eliminate redundant functionality– FMS is changing how it performs reporting to provide agencies

and other Treasury systems with detailed collections information through centralized means and in a standard format

– FMS is changing how it performs reporting to improve the accuracy of information provided to agencies and meet Governmentwide Accounting requirements

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CCMM 2010 and Beyond:Preparing Your Agency for the Road Ahead


• Division Contacts

– CCMM Website: http://fms.treas.gov/ccmm

– CCMM Email: [email protected]

– Agency Customer Relationship Managers (CRMs):

www.fms.treas.gov/crm/contacts.html

– Modernization Planning Office:

Greg Till 202-874-6895

[email protected]

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Paper Check Conversion Over the Counter

(PCC OTC) and TGAnetCorvelli McDaniel, Director

Over the Counter Revenue Collection Division

• Description of The “As-Is State” An outdated and cumbersome business model for the

Government’s OTC business line (characterized by multiple systems, networks and programs)

PCC OTC and TGAnet

• The “To-Be State”A new and exciting retail business model for the OTC channel

One OTC channel service provider One system solution for agency customers (OTCnet) One customer service operation One TGA bank network

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OTCnet

• Applicable CCMM Changes for FPAs– Technology consolidation = new system– Improved look and feel– Treasury/FMS compliant user provisioning standard– Single Sign-On– Web-based PCC processing– With the phasing out of CA$HLINK II, all agencies making OTC

deposits to commercial TGA banks, international TGA banks, and FRB TGA banks, will report through OTCnet

– OTCnet Agency Agreement and Agency Site Profile– Training and conversion to OTCnet

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OTCnet

• Impact the Changes will have on FPAs Conversion to or adoption of a new system Issuance of new user ID and password for OTCnet users

TGAnet users and supporting FI’s will maintain their current user IDs and passwords

PCC OTC users will need new identities Legacy TGAnet agencies and supporting TGA banks will be

converted to OTCnet using an automated conversion tool Legacy PCC OTC agencies will be converted to OTCnet using

an alternate process Agencies that use both PCC OTC and TGAnet may see changes

in the organizational hierarchy in OTCnet as a result of the integration of the two systems

Basic training/orientation on the new system will complement the conversion or adoption of OTCnet

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OTCnet

• How can FPAs Prepare?– Stay alert to ongoing communications from FMS regarding

OTCnet– Contact internal security group regarding certification effort for

OTCnet (POS software)– Be attentive to OTCnet system requirements– If you are not using TGAnet, may want to start

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OTCnet

• Benefits and Improvements– Functionality and process flow will be the same– Ease of use– OTCnet user provisioning standard is compliant with FISMA

security, HSPD12/PIV, and the latest security requirements– Single Sign On eliminates the need to manage different user

name and password combinations for different FMS applications

– Reporting of OTC transactions the “GWA way”– PCC OTC

OTCnet compatible with current scanners Flexibility: OTCnet is a web-based application featuring on-

line or off-line processing modes OTCnet will be developed in Java db: platform

independent Thin client on the desktop

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OTCnet

• High-level Implementation Strategy/Timeframes– Issuance of new user ID and passwords for PCC OTC and, if

needed,TGAnet legacy users– OTCnet Release 1.0 go live date: November 2010– OTCnet agency pilot: December 2010 to Jan 2011– Conversion of all TGAnet users and supporting TGA banks to

OTCnet: February/March 2011– Conversion of all PCC OTC users to OTCnet: April 2011 to

November 2012

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OTCnet


– OTCnet Project Manager:

Bonnie Ray 202-874-2138

[email protected]

– OTCnet Business Lead:

Reginald McKinney 202-874-6893 [email protected]

– OTCnet Security Officer:

Hennah Shami 202-874-6651

[email protected]

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CA$HLINK IITamara Whitaker, Director

Accounting and Data Management Division

• Description of The “As-Is State” – CA$HLINK II

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Transaction Reporting System (TRS)Tamara Whitaker, Director

Accounting and Data Management Division

• Description of The “To-Be State” – TRS

Z

Collections Agent

Collections Agent

Collections Agent

Collections Agent

Federal Agency

Federal Agency

Federal Agency

Federal Agency

$

FMS

Collections Agent

Detail & Summary Records of

Collections Transactions

Detail & Summary Records of

Collections Transactions

TRS

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Transaction Reporting System (TRS)

• Applicable CCMM Changes for FPAs– TRS is an FMS-wide transaction broker, data warehouse, and

reporting solution– Before TRS

Different collection sources report using different formats Separate sources for voucher and detail

– After TRS Core set of data elements formatted the same across all

collection sources Integrated reporting of voucher and detail

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• Impact the Changes will have on FPAs– Provide a single touch-point for all detailed collections

transaction and deposit information– Streamline reporting and reduce reconciliation efforts

Integrated Transaction and Deposit Report of all revenue activity across all collections systems

Flexible reporting formats accommodating various business needs, transaction volumes, and technical capabilities

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• How can FPAs Prepare?– Visit the TRS website (http://fms.treas.gov/trs/index.html) and

utilize a comprehensive set of resources Overview information about TRS Information about preparing for TRS and enrollment Time frames for data availability in TRS “An Introduction to the Transaction Reporting System” Webinar And much more

– Arrange for someone from your agency to attend an “Introduction to TRS” session to assist in planning for migration to the new system

Learn about TRS See a TRS demonstration and sample reports Discover what you need to do to assure that your agency’s data

will be in TRS

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• How can FPAs Prepare?– Migration to FMS programs which will provide data for TRS– Review policies that may be impacted– Assess potential process changes– Identify potential system-to-system interfaces that may need to

change– Review internal reports and data downloads that may require

modification or development– Analyze job descriptions, classifications, and training needs– Review and update existing training programs – Determine if budget modifications will be required

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• Benefits and Improvements– Provide a single touch-point for the exchange of all financial

transactions across all collections systems– Offer a centralized repository containing detailed and

summarized records of all revenue collection transactions processed by FMS systems

– Facilitate Collections & Cash Management Modernization (CCMM)

– Support reporting of classification information for the Governmentwide Accounting (GWA) Modernization initiative

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• High-level Implementation Strategy/Timeframes– TRS is being developed as a series of projects

Software release projects to build out TRS capabilities Implementation projects to build interfaces and migrate

transaction reporting to TRS– Interfaces and data migration with Sending Trading Partners

(STPs)

– Agency Enrollment / Transition

– Agency system-to-system implementations

Parallel development and implementation projects

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• High-level Implementation Strategy/Timeframes (Software Release Plan)

Plan dates are current targets as of 12/23/09 and subject to change

Calendar Year Target:

Agency Reporting

Iteration 1

Framework

Iteration 2

Iteration 3

Agency XML Agency XML

Q3 2011 Q4 2011

Agency Reporting

Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010

Iteration 2

Iteration 3

Q4 2010 Q1 2011 Q2 2011

We Are Here

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• High-level Implementation Strategy/Timeframes (Collections Data Availability Plan)

Plan dates are current targets as of 12/23/09 and subject to change

Calendar Year Target: Existing Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010


TGAnet Fedwire Deposit System PATAX-TIP Card Acquiring Service ECP Pay.gov Credit Gateway ITS.gov EFTPS OTCnet

We Are Here

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– TRS Website: http://fms.treas.gov/trs

– TRS Agency Outreach Team

301-699-6814 [email protected]

– Transaction Reporting System Project

Monica Shelton 202-874-1346

[email protected]

– CA$HLINK II Program

Julie Davis 202-874-6714

[email protected]

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Remittance ExpressBill Brushwood, Director

Settlement Services Division

• Description of The “As-Is State” – REX– Agencies sign participation Memorandum of Understanding (MOU)

– For ACH credits, REX accounts setup in CA$HLINK II and GWA’s Shared Accounting Module (SAM)

– Agencies inform remitters of payment instructions

– Payments automatically returned for invalid accounts and unauthorized debits

– Transaction details and deposit information reported in CA$HLINK II

• The “To-Be State” – Credit Gateway– New Credit Gateway account setup form completed by agency

– ACH new accounts setup in Credit Gateway and SAM

– Agencies inform remitters of payment instructions

– Credit Gateway will automatically return payments for invalid accounts and unauthorized debits

– Transaction details and deposit information reported in TRS (deposit data available in CA$HLINK II for a limited period)

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Credit Gateway – REX

• Applicable CCMM Changes for FPAs– By design, most payment processing changes are transparent

to agencies, not requiring account number (REX ID) changes or communication with remitters

– Transaction information reporting in TRS– REX ID becomes the Credit Gateway account number

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• Impact the Changes will have on FPAs– New account setups will be managed by the FMS Settlement

Services Division (SET)– No legacy account number (REX ID) changes needed– No legacy ACH payment instruction changes required– New Credit Gateway account setups will utilize a twelve digit

Credit Gateway account number• Credit Gateway account numbers will include embedded

ALC #• Credit Gateway account numbers will be the Classification

Key (Ckey) value in GWA’s Shared Accounting Module (SAM)

• Settlement Services will communicate new Credit Gateway account numbers to agencies, who will enter the Credit Gateway account number as the Ckey value in SAM

– Agencies will have the option to convert legacy REX account numbers to new Credit Gateway account numbers, which include the agency’s ALC number

– Migration Impact - After the implementation of the Credit Gateway, transactions previously processed in CA$HLINK II can no be reclassified to another ALC #

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Collections 2010 and Beyond: Preparing Your Agency for the Road Ahead


• How can FPAs Prepare?– Since a moratorium on new REX account setups may be

instituted approximately one month prior to the Credit Gateway implementation, agencies should pre-determine their need for new accounts prior to the migration period

– Train staff for obtaining ACH credit transaction information from TRS

– Agencies desiring to convert their legacy REX account numbers to the Credit Gateway’s twelve digit account number should contact Settlement Services

– Reconcile all REX transactions prior to the Gateway migration, since ALC reclassification of transactions in CA$HLINK II will not be permitted

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• Benefits and Improvements– The Credit Gateway will serve as a single settlement

mechanism for all ACH and Fedwire credit transactions information received by the Federal government providing improved control and focused expertise on these collection methods

– Improves processing efficiencies, streamlines application support, and reduces costs

– Provides a robust account numbering structure that supports more detailed cash flow reporting

– Provides a straight through processing solution to perform Treasury Account Symbol (TAS)/Business Event Type Code (BETC) reporting

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• High-level Implementation Strategy/Timeframes– Minimize impact to agencies as much as practicable– Cleanup/correct CA$HLINK II transactions prior to migration– Settlement Services communication with agencies as

appropriate– Migrate processing to Credit Gateway on September 13, 2010

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– Settlement Services Mailbox:

[email protected]

– Credit Gateway Program:

Randolph Maxwell 202-874-3720

[email protected]

– Settlement Services Division:

Bill Brushwood 202-874-1251

[email protected]

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FedwireBill Brushwood, Director

Settlement Services Division

• Description of The “As-Is State” – Fedwire– ALC accounts setup in CA$HLINK II and GWA’s Shared

Accounting Module (SAM)– Agencies inform remitters of payment instructions– Payments with invalid accounts manually reviewed and

corrected by FMS staff– Payment details and deposit information available to agencies

in CA$HLINK II

• The “To-Be State” – Credit Gateway– New Credit Gateway account setup form on Pay.gov completed

by agency– Fedwire new accounts setup in Credit Gateway and SAM– Agencies continue to inform remitters of payment instructions– Credit Gateway will automatically return payments for invalid

accounts– Payment details and deposit information will be available in

TRS (deposit data available in CA$HLINK II for a limited period)

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Credit Gateway – Wire Transfer

• Applicable CCMM Changes for FPAs– Most payment processing changes should be transparent to

agencies – No changes in wire transfer routing numbers

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• Impact the Changes will have on FPAs – New account setups will be managed by the FMS Settlement

Services Division (SET)– No legacy account number (ALC #) changes required– No legacy Fedwire instruction changes required (existing RTN

used)– Credit Gateway new account setups will utilize a twelve 12-digit

Credit Gateway account number, which will replace the legacy eight-digit ALC account number

Credit Gateway account numbers will include embedded ALC # For GWA reporters, Credit Gateway account number will be the

Classification Key (Ckey) value in GWA’s Shared Accounting Module (SAM), which will translate to the agency’s assigned Treasury Account Symbol (TAS) and Business Event Type Code (BETC)

SET will communicate new Credit Gateway accounts to agencies, which will, in turn, enter the Credit Gateway account number as the Ckey value in SAM

– Agencies will have the option to add multiple Credit Gateway account numbers under their ALC to support various cash flows

– No CA$HLINK II transactions will be reclassified to another ALC# after the implementation of the Credit Gateway. Reclassification of transactions received in the Gateway will be permitted.

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• How can FPAs Prepare?– Ensure agency access has been setup in TRS to view Credit

Gateway transactions– Agencies desiring to utilize Credit Gateway subaccounts to

support multiple cash flows should contact SET for new account setups

– Reconcile all predecessor CA$HLINK II payments prior to the Gateway implementation, since ALC reclassification of transactions within CA$HLINK II will not be permitted after the Credit Gateway implementation

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• Benefits and Improvements– The Credit Gateway will serve as the single settlement

mechanism for all ACH and Fedwire credit payments received by the Federal government

– Improves processing efficiencies, streamlines application support, and reduces operating costs

– New Credit Gateway subaccounts will support more granular cash flow-level classification of Fedwires

– Provides for straight through processing of each transaction with TAS/BETC GWA information

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• High-level Implementation Strategy/Timeframes– Minimize the impact on agencies– Go live September 13, 2010

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– Settlement Services Mailbox:

[email protected]

– Credit Gateway Program:

Randolph Maxwell 202-874-3720

[email protected]

– Settlement Services Division:

Bill Brushwood 202-874-1251

[email protected]

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CONCLUSIONCarolyn Dunston, Director

Agency Relationship Management Division

Benefits to Agencies An easier-to-understand mix of revenue collection

programs Consolidated transaction and deposit reporting Elimination of daily reconciliations to deposit reports

(CA$HLINK II) Standardized file format for transaction details Capture of TAS/BETC information at the time of transaction

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Collections and Cash Management Modernization (CCMM)Summary

Agency Preparation In some cases, agencies will need to change the

collection programs that they use as FMS more logically organizes these programs Some program functionality is being moved into

existing programs such as Pay.gov Other program functionality is being moved into new

systems, such OTCnet and the Credit Gateway Establish the ability to accept transaction and deposit

reports from FMS from a new, single location (TRS) Establish the ability to accept transaction files from FMS

in a standardized XML format Work with FMS to determine the TAS/BETCs (or C-Keys)

that FMS should capture when processing revenue collections

Increase the use of electronic funds transfers for collections

Recognize that the re-architecting of existing functionality likely will slow down development of new functionality

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Legacy Collection System

CCMM System Conversion Period

Fedwire Deposit System

Credit Gateway 2010

Remittance Express Credit Gateway 2010

Electronic Lockboxes – Automated Clearing

House Debits

Pay.gov 2009 - 2010

Electronic Lockboxes – Automated Clearing

House Credits and EDI

Credit Gateway 2010-2011

Electronic Lockboxes – Fedwires

Credit Gateway 2010-2011

Over-the-counter processes and

systems, including TGAnet and PCC-

OTC

OTCnet 2011 - 2012

TT&L Plus Treasury Collateral Management and

Monitoring System

2011

CA$HLINK II Transaction ReportingSystem (TRS)

2009 - 2012

Collections and Cash Management Modernization (CCMM)Summary

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Questions?

For additional information visit www.fms.treas.gov/ccmm or

email [email protected].

collections 2010 and beyond: preparing your agency for the road ahead

Documents

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road aheadwelcome

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forecasting information