FAM No. 99-28 (Using Automated Clearing House for Collections)
July 8,1999
FINANCIAL ADMINISTRATION MEMORANDUM NO. 99-028 (II.J.)
To: Bureau Assistant Directors, Administration
Chief Executive Officer, National Business Center
Bureau Finance Officers
Finance Officer, Financial Management Services
From: Focus Leader, Asset and Debt Management
Office of Financial Management
Subject: Using Automated Clearing House (ACH) for Collections
Attached is a letter from the Financial Management Service, dated
May 28, 1999, encouraging agencies to use the Automated Clearing House
(ACH) system for the collection of funds. A major benefit of using ACH
is to capitalize on emerging Electronic Data Interchange (EDI)technology
to streamline processes. FAM No. 99-019 contains information about the
ACH rule, which was effective May 10, 1999. ACH principles, products, and
ideas for usage are explained in two FMS publications. Automated
Collections Made Easy, 1995, and ACH Marketing Strategies/or Federal
Agency Collections, 1999.
FMS and the lockbox banks are available to provide assistance in
identifying paper cash flows that can be converted to ACH, developing
marketing plans, and distributing marketing materials to remitters. Should
you have any questions concerning this subject, please contact me on (202)
208-5684.
/s/
William E. Webber
Attachment
