FMS, FRB, and NACHA

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FMS, FRB, and NACHA

• VA/Treasury Meeting
• November 5-6, 2008
• Wally Ingram

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Financial Management Service

• provides central payment services to federal
  agencies,
• operates the federal government's collections and
  deposit systems,
• provides government-wide accounting and reporting
  services,
• manages the collection of delinquent debt owed to
  the government.

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Federal Reserve Bank

• Central Bank of the United States
• Provides the nation with a safe, flexible, and
  stable monetary and financial system

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FRB

• FMS largest customer of FRB
• 19 of ACH payments are government transactions
• 25 of through ACH are government transactions

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National Automated Clearinghouse Association

• a not-for-profit association that oversees the
  Automated Clearing House (ACH) Network, one of
  the largest electronic payment networks in the
  world.

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Interaction

• NACHA formulates rules and rule changes with
  participation from all members including FMS and
  FRB
• FRB enforces NACHA Rules
• FMS adopted NACHA Rules with a few exceptions for
  government payments
• FMS not subject to fine system

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Rules Changes

• NACHA has workgroups established to determine
  feasibility of a rule change
• Open participation to all members
• ex. Expand CTX addenda beyond 9,999
• Analysis
• Impact
• Result

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3 Types of Government ACH

• PPD Direct Deposit, salary, benefit payments
• CCD - Vendor Express, vendor payments, one
  invoice one payment
• CTX vendor payments, multiple invoices one
  payment
• FEDwire

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