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By Corvelli McDaniel, Over the Counter Revenue Collection Division
The Financial Management Service (FMS) has evaluated the current infrastructure for the Government's revenue collection program and, after comparing the current model against more modern and efficient models and industry best practices, concluded that changes in the current infrastructure would benefit our customer agencies. The formal name for our holistic plan to transform the Government's revenue collection infrastructure (i.e., systems, networks and programs) is the Collections and Cash Management Modernization (CCMM) initiative. Under CCMM, FMS has developed strategies for each channel (e.g., over the counter, mail, internet, phone, etc.) used to collect revenue. These strategies are interrelated and interdependent and when fully implemented, will result in an end state that will offer many benefits to Government agencies.
While CCMM brings together plans for each channel and other components of the plans to modernize the revenue collections infrastructure, I want to discuss the Over the Counter (OTC) channel in particular. The OTC channel consists of the following: the PCC OTC system, TGAnet system, the domestic, international, and Federal Reserve Bank (FRB) TGA bank networks, the seized currency collections network. Together, these represent overall responsibility for the collection of all checks, cash and coins at agency point of sale (POS) locations worldwide.
The nature of the Government's OTC transactions and deposit activity is similar to that of some of the nation's large retail chains. While the Government is unique in its mission and scope, and unable to wholly mirror a commercial retail business model, our goal is to adopt some of the characteristics and best practices of such a model in order to achieve an exciting and more efficient/effective end-state for the Government's OTC infrastructure.
One of the critical components to achieving our CCMM goals for the OTC channel was the selection
of a commercial bank with the requisite experience and qualifications to help us attain our goals.
Why a commercial bank? Today, FRBs are responsible for the operations, maintenance and system development for the PCC OTC and TGAnet systems. The FRBs have done an excellent job and leave an undisputed legacy of excellence in the performance of their duties and certainly in terms of their accomplishments. FMS management made a determination that, in terms of positioning the OTC collections program for the future, the nature of OTC transaction processing, when matched against the core competencies and retail expertise of commercial banks, a commercial bank was best suited to serve as the Financial Agent for the OTC channel going forward and to lead the transformation of the OTC business.
After months of research, analysis, and evaluation, FMS is pleased to announce that on August 28, 2008, Citibank was selected as the OTC channel service provider. Citibank is a worldwide leader in the financial services industry and has formidable experience with OTC transaction processing, banking operations, and point of sale technology. They possess a superb track record in the area of customer service, and, as an organization, possess a pioneering spirit and a culture that supports excellence. Moreover, in the area of systems development and system integration, whether it’s in the area of experience (developing systems for the Government or in the private sector), innovation, or the skill and depth of staff resources, Citibank is outstanding.
The selection of Citibank sets in motion a period of transition that should be predominantly transparent to agencies. While there will be no immediate action required by agencies, there are some changes that will impact agencies, and it is important to note what will and will not occur over the next 3 months:
What will change?
A. FMS will oversee a period of transition between Citibank and the FRBs of Cleveland and St. Louis from September 8, 2008 through December 31, 2008 to ensure a well executed transfer of responsibility.
B. Citibank will assume full responsibility for PCC OTC operations, customer support, hardware acquisition, and software development on January 1, 2009.
C. Citibank will assume full responsibility for TGAnet operations, customer support, and software development on January 1, 2009.
D. Effective January 1, 2009, there will be a new toll-free customer service number for the PCC OTC and TGAnet customer agencies. The new number will be 1-866-945-7920. The local number will be 302-324-6442.
What will not change?
A. FMS’s personal involvement and commitment to excellence in the administration of our OTC programs.
B. The outstanding level of customer service and responsiveness you are accustomed to receiving.
C. The operations of the PCC OTC and TGAnet systems will continue as normal under the responsibility of the FRBs through the end of 2008 to include customer support, web sites, file processing, and deposit reporting.
D. The process for ordering equipment and supplies for the PCC OTC system will remain unchanged through the end of 2008.
FMS will communicate regularly during this period of transition. We want to emphasize that for the remainder of the year, there will be no changes in PCC OTC and TGAnet operations and customer support. FMS will be reaching out to agencies to ensure lines of communication remain open and to solicit your questions and support.
For more information, please call 202-874-6786 or email us at OTCD@fms.treas.gov.
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