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

1. Collections 2010 and Beyond: Preparing Your Agency forthe Road Ahead Financial Management Service U.S. Department of the Treasury

2. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Welcome and Webinar Introduction Carolyn Dunston, Director Agency Relationship Management Division

3. 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

4. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Collections and Cash Management Modernization (CCMM) “Notional Diagram” Collect Report Centralize Collection Channels Settlement Mechanisms OTC Card Mail Check Phone ACH Debit Internet ACH Credit Wire “Bank” Infrastructure: Bank Management, Collateral Management

5. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Collections and Cash Management Modernization (CCMM) • 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

6. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Collections and Cash Management Modernization (CCMM) • 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

7. CCMM 2010 and Beyond:Preparing Your Agency for the Road Ahead Collections and Cash Management Modernization (CCMM) • Division Contacts • CCMM Website: http://fms.treas.gov/ccmm • CCMM Email: ccmm@fms.treas.gov • Agency Customer Relationship Managers (CRMs): www.fms.treas.gov/crm/contacts.html • Modernization Planning Office: Greg Till 202-874-6895 gregory.till@fms.treas.gov

8. CCMM 2010 and Beyond:Preparing Your Agency for the Road Ahead Paper Check Conversion Over the Counter (PCC OTC) and TGAnet Corvelli 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

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

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

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

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

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

14. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead OTCnet • Division Contacts • OTCnet Project Manager: Bonnie Ray 202-874-2138 bonnie.ray@fms.treas.gov • OTCnet Business Lead: Reginald McKinney 202-874-6893 reginald.mckinney@fms.treas.gov • OTCnet Security Officer: Hennah Shami 202-874-6651 hennah.shami@fms.treas.gov

15. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead CA$HLINK II Tamara Whitaker, DirectorAccounting and Data Management Division • Description of The “As-Is State” – CA$HLINK II

16. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) Tamara Whitaker, DirectorAccounting and Data Management Division • Description of The “To-Be State” – TRS

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

18. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • 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

19. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • 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

20. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • 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

21. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • 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

22. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • 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

23. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • High-level Implementation Strategy/Timeframes (Software Release Plan) Plan dates are current targets as of 12/23/09 and subject to change

24. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • High-level Implementation Strategy/Timeframes (Collections Data Availability Plan) Plan dates are current targets as of 12/23/09 and subject to change

25. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Transaction Reporting System (TRS) • Division Contacts • TRS Website: http://fms.treas.gov/trs • TRS Agency Outreach Team 301-699-6814 TRSAgencyOutreach@pnc.com • Transaction Reporting System Project Monica Shelton 202-874-1346 monica.shelton@fms.treas.gov • CA$HLINK II Program Julie Davis 202-874-6714 julie.davis@fms.treas.gov

26. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Remittance Express Bill 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)

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

28. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – REX • 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 #

29. Collections 2010 and Beyond: Preparing Your Agency for the Road Ahead Credit Gateway – REX • 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

30. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – REX • 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

31. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – REX • 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

32. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – REX Division Contacts Settlement Services Mailbox: settlement.services@fms.treas.gov Credit Gateway Program: Randolph Maxwell 202-874-3720 randolph.maxwell@fms.treas.gov Settlement Services Division: Bill Brushwood 202-874-1251 bill.brushwood@fms.treas.gov

33. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Fedwire Bill 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 • Fedwirenew 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)

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

35. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – Wire Transfer • 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.

36. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – Wire Transfer • 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

37. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – Wire Transfer • 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

38. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – Wire Transfer • High-level Implementation Strategy/Timeframes • Minimize the impact on agencies • Go live September 13, 2010

39. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Credit Gateway – Wire Transfer • Division Contacts • Settlement Services Mailbox: settlement.services@fms.treas.gov • Credit Gateway Program: Randolph Maxwell 202-874-3720 randolph.maxwell@fms.treas.gov • Settlement Services Division: Bill Brushwood 202-874-1251 bill.brushwood@fms.treas.gov

40. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead CONCLUSION Carolyn 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$HLINK II) • Standardized file format for transaction details • Capture of TAS/BETC information at the time of transaction   Legacy Collection System CCMM System Conversion Period Fedwire Deposit System Credit Gateway 2010 Remittance Express Credit Gateway 2010 Electronic Lockboxes – Automated Clearing House Debits Pay.gov 2009 - 2010 Electronic Lockboxes – Automated Clearing House Credits and EDI Credit Gateway 2010-2011 Electronic Lockboxes – Fedwires Credit Gateway 2010-2011 Over-the-counter processes and systems, including TGAnet and PCC-OTC OTCnet 2011 - 2012 TT&L Plus Treasury Collateral Management andMonitoring System 2011 CA$HLINK II Transaction ReportingSystem (TRS) 2009 - 2012

41. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead 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   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 andMonitoring System 2011 CA$HLINK II Transaction ReportingSystem (TRS) 2009 - 2012

42. Collections 2010 and Beyond:Preparing Your Agency for the Road Ahead Collections and Cash Management Modernization (CCMM) Summary   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 andMonitoring System 2011 CA$HLINK II Transaction ReportingSystem (TRS) 2009 - 2012

43. Questions? For additional information visit www.fms.treas.gov/ccmm or email ccmm@fms.treas.gov.