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This chapter provides guidance that Government departments and agencies, for which the Department of the Treasury (Treasury) disburses, follow when preparing and submitting the monthly FMS 224: Statement of Transactions, and related supporting documents (see Appendix 1).

Section 3310-Scope and Applicability

This chapter applies only to those departments and agencies for which Treasury's Financial Management Service (FMS) disburses at any of its Regional Financial Centers (RFCs).

Section 3315-Authority

The procedures in this chapter are issued per 31 U.S.C. 3513, which requires that:

• The Secretary of the Treasury (the Secretary) prepares reports on the financial operations of the U.S. Government;
  
  AND
  
  
• Each executive agency provides the Secretary such reports and information relating to its financial condition and operations as the Secretary may require.

Section 3320-Using and Assigning 8-Digit Agency Location Codes (ALCs)

3320.10-Using ALCs

An 8-digit ALC is used to identify each Federal agency that prepares an FMS 224. The first two digits of the symbol identify the department or agency, the third and fourth digits identify the particular bureau within the department, and the remaining four digits identify the particular agency accounting station within that bureau. Agencies must include the ALC on all correspondence, forms, and other documentation forwarded to financial institutions, FMS, other Federal agencies, and RFCs, and particularly on all Standard Form (SF) 215s: Deposit Tickets, and/or related SF 5515s: Debit Vouchers.

3320.20-Establishing, Changing, and Deleting an ALC

Each agency must provide FMS with the name, telephone number, and address of one contact person per designated ALC and must ensure this information is current at all times. To establish, change, or delete an ALC, the agency or the RFC representative must contact FMS in writing (see the Contacts page). All requests relating to the 8-digit ALCs must include the standard information shown in Appendix 2. FMS uses the letter request received from the agency and completes the FMS 6601: Advice Regarding Agency Location Codes (3, 4, or 8 digits), see Appendix 2, for confirmation action. FMS must receive written requests to establish, change, or delete an ALC at least 30 days before the requested effective date.

Section 3325-Monthly Reporting Requirements

The validity of the classified receipt and disbursement data reported in the central accounts and published in the financial reports of the U.S. Government depends on the accuracy of the monthly statements of transactions submitted by all departments and agencies. The timeliness of the U.S. Government's financial reports depends on strict compliance by agencies with the FMS-assigned reporting deadlines. All departments and agencies must prepare their monthly FMS 224 submissions on a priority basis to meet the reporting deadlines.

Section 3330-Preparing FMS 224s

Each agency prepares the FMS 224 directly from its accounts promptly at the close of each accounting month. For a column-by-column description of the information reported on the FMS 224, see Appendix 1. Agencies also submit FMS 224s for accounting periods in which no transactions occur by entering "No transaction" on the FMS 224.

3330.10-Using Source Data To Prepare Monthly FMS 224s

Agencies prepare the monthly FMS 224 based on:

• Vouchers paid or accomplished by RFCs;
  
  
• Intra-governmental Payments and Collections (IPAC) transactions accomplished;
  
  
• Cash collections received for deposit on SF 215s;
  
  AND
  
  
• Electronic payments/deposits such as those processed through the Automated Standard Application for Payments (ASAP) System or the Fedwire Deposit System.

Note: Confirmed deposits are based on special operations involving the determination of amounts available for investment, or amounts of interest earned with respect to certain trust funds.

Agencies can obtain disbursement data from the Government On-Line Accounting System II (GOALS II). GOALS II provides users with all disbursements accomplished by RFCs and IPAC transactions.

Agencies authorized to use the CA$HLINK II System can obtain monthly SF 215 and SF 5515 transactions.

Note: Receipts are reported on a collections received basis. Receipts not presented or mailed to the bank by the last day of the accounting month are reported as cash held outside of Treasury transactions (see TFM Volume I, Part 2, Chapter 3400).

Transactions recorded in agencies' general ledgers that are not associated with an SF 215, SF 5515, IPAC, or vouchers paid or accomplished by RFCs should be reported in Section I of the FMS 224 only. These transactions are based on agencies internal documents accomplished outside of the Treasury.

3330.20-Classifying Transactions Reported on FMS 224s, Section I

Section I of the FMS 224 is used to classify, by individual appropriation, fund, or receipt account, all documents that have been paid or accomplished by Treasury RFCs, IPAC System transfers, ASAP payments, and actual collections received during the month for deposit on SF 215, net of any SF 5515, documents.

Generally, classifying transactions at the level of appropriation, fund, and receipt accounts is sufficient for FMS's central accounts and reports. However, FMS requires that agencies classify some transactions below the account level used for normal receipt and expenditure transactions for central reporting purposes. When transactions are required to be classified below the account level, FMS notifies the agency involved on a BA 7103: The Department of the Treasury Sub-Classification Authorization (transactions below appropriation, fund, or receipt account levels). Agencies must contact FMS for the assignment of the subclass codes (see TFM Volume I, Part 2, Chapter 1500). They use the appropriate subclass code assigned as a parenthetical prefix to the account symbol, opposite the amount for each type of transaction reported.

See the following TFM chapters for detailed accounting and reporting policies and procedures for specific transactions that require the use of subclasses:

• TFM Volume I, Part 2, Chapter 3400: Accounting for and Reporting on Cash and Investments Held Outside of the U.S. Treasury;
  
  
• TFM Volume I, Part 2, Chapter 4300: Reporting Instructions for Accounts Invested in Department of the Treasury Securities;
  
  
• TFM Volume I, Part 2, Chapter 4600: Treasury Reporting Instructions for Credit Reform Legislation.

Section 3335-Reconciling FMS 224, Section II

Section II of the FMS 224 is used to distinguish disbursement transactions from collections. FMS compares the data reported by each agency's ALC with the control totals reported by the RFCs and IPAC for each ALC level (see TFM Volume I, Part 2, Chapter 3100) and displays the results in the FMS 6652: Statement of Differences (SOD), Disbursing Office Transactions (see Appendix 3). Agencies can access all FMS 6652s through the GOALS II/Information Access System (IAS).

Section II, line 1, of the monthly FMS 224 may include RFC and IPAC transactions. All transactions are identified by the disbursing office symbol and are separated according to the month accomplished. Agencies should reconcile RFC transactions separately from IPAC transactions by comparing transactions reported in their accounting systems with the transactions reported to Treasury by the RFCs and through IPAC.

In the month following the reporting month, agencies should correct any disclosed differences.

3335.10-Differences in RFC Transactions

Agencies should be able to localize RFC transaction differences based on the following:

• Their own records;
  
  AND
  
  
• Support listings provided by the RFC Agency Link Application in GOALS II/IAS (see Appendix 3).

Using their own records and the support listing, agencies can isolate the total difference amount by reviewing amounts to each "Reporting D.O. Symbol," if there were RFC transactions processed for the agency by more than one RFC.

The RFC adjusts any discrepancies in its records, and the agency adjusts discrepancies in its records on the FMS 224.

3335.20-Differences in IPAC Transactions

IPAC payments and collections are reported on FMS 224, Section II, line 1. Agencies obtain a list of transactions from the IPAC System and compare the transactions with their own records. They include differences disclosed in the comparison in the SOD total for disbursements.

Agencies isolate the IPAC difference amount by reviewing amounts to each "Reporting D.O. Symbol," if IPAC transactions were processed by more than one disbursing office symbol.

The receiving agency must report erroneous charges made by other agencies in the month billed, unless the charge is reversed before the month closes. Agencies report all corrections on the FMS 224 in the month the adjustment was made in the IPAC System.

Section 3340-Reconciling FMS 224, Section III

Section III of the FMS 224 discloses the status of actual collections reported in the CA$HLINK II System, including ASAP payments.

FMS compares the data reported by each agency's ALC with control totals reported by CA$HLINK II for each ALC level (see TFM Volume I, Part 2, Chapter 3100) and displays the results on the FMS 6652: Statement of Differences, Deposit Transactions (see Appendix 4). Agencies can access all FMS 6652s through GOALS II/IAS.

Agencies must report all deposit transactions on FMS 224, Section III, line 3, according to the date entered in block 2 on the SF 215s and SF 5515s. This date represents the day the SF 215s/SF 5515s were presented or mailed to the bank. Agencies should report undeposited collections at the end of the month as cash held outside of Treasury transactions (see TFM Volume I, Part 2, Chapter 3400).

3340.10-Payment Transactions

There are instances when disbursements are reported on the FMS 224 in Section III instead of Section II. These disbursements are made by banks and are reported through CA$HLINK II as SF 5515s, for example, ASAP disbursements. ASAP transactions are reported on FMS 224, Section III, line 3. Agencies report appropriation symbols with ASAP activity on the FMS 224, Section I, Column 3. (See the ASAP Guides on the FMS Web site at http://fms.treas.gov/asap/pr_handbooks.html#guides.)

3340.20-Access to Agency Data

Agencies can review and download the FMS 6652 and the support listing (see Appendix 4) through GOALS II/IAS. They also can review their confirmed deposit data on-line through CA$HLINK II.

CA$HLINK II is a worldwide deposit reporting and cash concentration system with a single database of deposit details to expedite agency reconciliation. CA$HLINK II provides agencies access to their deposits and deposit adjustments in the CA$HLINK II database. By accessing CA$HLINK II, agencies can research and begin reconciling their deposits made at commercial banks on the same business day the Federal Reserve Bank (FRB) reports the deposits to CA$HLINK II. If funds are moved overnight by Automated Clearing House through the Federal Reserve System, agencies can review deposits the day after the deposit is reported. Using the inquiry function of CA$HLINK II, an agency may obtain a printout of deposit data in CA$HLINK II to compare with items in the agency's records. For additional information about CA$HLINK II, contact FMS's Accounting and Data Management Division (see the Contacts page).

Agencies clear differences by either:

• Reporting adjusting entries on the FMS 224 for the current month (with the prior month indicated);
  
  OR
  
  
• Contacting the bank to trace the transmittal to FMS and correcting the SF 215/SF 5515 in CA$HLINK II. If agencies are unable to resolve differences after correspondence with the banks, they must contact the FMS representative for assistance (see the Contacts page).

3340.30-Unreconciled Differences

FMS notifies the Chief Financial Officers for those agencies that do not clear their differences. The Office of the Inspector General (OIG) routinely examines the internal control systems for faults and vulnerabilities. Agencies immediately must report any suspicions of fraud to their OIG for investigation.

FMS can prepare journal voucher entries to adjust small difference amounts of $50 or less that have been outstanding for 3 months or sooner at the agency's request. Agencies that reconcile their own small difference amounts should request that FMS's Cash Accounting Division (CAD) exempt them from Treasury's small difference writeoff process.

Section 3345-Submitting the FMS 224

Agencies submit the FMS 224 to FMS through GOALS II. The GOALS II portal for submission of the FMS 224 opens the first business day of the following accounting month and is available 24 hours a day.

Each agency electronically submits the FMS 224 to FMS as promptly as possible, but no later than the third business day following the close of the accounting month (see the Contacts page).

Agencies should retain a copy of their FMS 224s for auditing and reconciliation purposes.

Section 3350-Reporting Supplemental FMS 224s

After preparing and submitting the FMS 224 according to the procedures prescribed in this chapter, agencies can submit nine supplemental FMS 224s. The supplemental FMS 224s do not replace the original FMS 224 but are used to make adjustments to it. FMS must receive supplemental FMS 224s no later than the third business day following the close of the accounting month.

Section 3355-Reporting Fiscal Yearend FMS 224s

FMS uses a separate TFM Yearend Closing Bulletin to provide agencies with a schedule for preparing and submitting fiscal yearend FMS 224s.

Section 3360-Integrating the Accounting Results

The central accounting and reporting of the Government as a whole is based on statements of accountability and transactions submitted to FMS, and on certain documentation processed centrally, such as appropriation warrants. This accounting data is consolidated into the Governmentwide Accounting (GWA) Account Statement and reported back to the agencies. Agencies must verify these accounting results and reconcile them with their accounts (see TFM Volume I, Part 2, Chapter 3900).

Note: On the FMS 2108: Year-End Closing Statement, that Treasury reports back to each agency, the subclass prefix (41) reported on the FMS 224 will not appear under the heading of Appropriation or Fund Symbol. Treasury converts subclass prefix (41) to a .921 subnumber that will appear under the subnumber column corresponding to the Appropriation or Fund Symbol.

Section 3365-Partial FMS 224

To facilitate incremental implementation of the GWA Modernization Project, the FMS 224 application was modified to allow for reporting each section independently. Agencies only have to report those sections of the FMS 224 that are not being reported by a GWA System mechanism. The modified FMS 224 application is known as the "Partial FMS 224."

3365.10-GWA Non-Reporter and GWA Reporter

An agency is either a GWA Non-Reporter or a GWA Reporter, but not both. Reporting mechanisms ensure that an agency reports in only one of the two ways. This precaution eliminates the risk of double-reporting.

A GWA Non-Reporter:

• Is identified by ALC and source system, for example, IPAC, Secure Payment System, and CA$HLINK II;
  
  
• Is not yet capable of providing Treasury Account Symbol (TAS) information on incoming daily transmissions to GWA;
  
  
• Continues to report through GOALS II CITRIX.

A GWA Reporter:

• Is identified by ALC and source system;
  
  
• Is authorized to provide TAS information on incoming daily transmissions to GWA;
  
  
• Reports through the Partial FMS 224 application.

The GWA System collects and maintains information to create the appropriate FMS 224 entries. The collected information is processed through Treasury's central accounting system (STAR).

The GWA Reporter reports based on the following seven categories:

• Intragovernmental Only;
  
  
• Collections Only;
  
  
• Payments Only;
  
  
• Intragovernmental and Collections;
  
  
• Intragovernmental and Payments;
  
  
• Payments and Collections;
  
  AND
  
  
• Intragovernmental, Collections, and Payments.

3365.20-GWA Implementation Strategy

To control the implementation of GWA Reporters, FMS will implement GWA source systems in three phases:

• IPAC Only;
  
  
• IPAC and Collections;
  
  AND
  
  
• IPAC, Collections, and Payments.

3365.30-Phase One

In the first phase of GWA source system implementation, an agency designated as a GWA Reporter for IPAC sends its classified intragovernmental transactions through IPAC. The IPAC System sends these transactions to the Partial FMS 224 application. The agency's FMS 224 preparer enters payment and collection transactions into the Partial FMS 224 application. The preparer also may use the Partial FMS 224 to reclassify intragovernmental transactions for the agency but cannot create new ones. The Partial FMS 224 takes all the transactions (intragovernmental, payments, and collections), creates an FMS 224, and sends it to STAR.

Agencies that are GWA Non-Reporters continue to report all their transactions (intragovernmental, payments, and collections) through the GOALS II CITRIX application. The GOALS II CITRIX application takes all those transactions, creates an FMS 224, and sends it to STAR.

3365.40-Phase Two

In the second phase of GWA source system implementation, IPAC and CA$HLINK II are implemented. An agency designated as a GWA Reporter for IPAC and CA$HLINK II sends its classified intragovernmental transactions through IPAC and its classified collection transactions through CA$HLINK II. IPAC and CA$HLINK II send these transactions to the Partial FMS 224 application. The agency FMS 224 preparer enters payment transactions into the Partial FMS 224 application. The preparer also may use the Partial FMS 224 to reclassify intragovernmental and collection transactions for the agency but cannot create new ones. The Partial FMS 224 takes all the transactions (intragovernmental, payments, and collections), creates an FMS 224, and sends it to STAR.

3365.50-Phase Three

In the third phase of GWA source system implementation, IPAC, CA$HLINK II, and Payments are implemented. An agency designated as a GWA Reporter for IPAC, CA$HLINK II, and Payments sends its classified intragovernmental transactions through IPAC, its classified collection transactions through CA$HLINK II, and its classified payment transactions through the RFC system. IPAC, CA$HLINK II, or the RFC system sends these transactions to the Partial FMS 224 application. The FMS 224 preparer also may use the Partial FMS 224 to reclassify intragovernmental, collection, and payment transactions for the agency but cannot create new ones. The Partial FMS 224 takes all the transactions (intragovernmental, payments, and collections), creates an FMS 224, and sends it to STAR.

When all three source systems are implemented, FMS 224 preparers will no longer have to enter FMS 224 information into the Partial FMS 224, with the exception of reclassification, for agencies that are GWA Reporters for all three GWA source systems.

CONTACTS

Direct general inquiries concerning this chapter, transmission of original FMS 224s, deposit transaction reports, requests for ALC changes, and information on how to reconcile common discrepancies to:

Manager, Cash Analysis Branch
Cash Accounting Division
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 526E
Hyattsville, MD 20782
Telephone: 202-874-7980

If agencies are unable to resolve differences after correspondence with the banks, their first point of contact is the FRB St. Louis at phone number: 1-866-771-1842. If differences are still unresolved, contact the following office for assistance:

Over The Counter Revenue Collection Division
Financial Management Service
Department of the Treasury
401 14th Street SW., Room 307D
Washington, DC 20227
Telephone: 202-874-9986

For information about CA$HLINK II, contact the following office for assistance:

Accounting and Data Management Division
Financial Management Service
Department of the Treasury
401 14th Street SW.
Washington, DC 20227
Telephone: 202-874-7132

Appendices Listing

Appendices are available in the PDF version only.

Transmittal Letter No. 632

Volume I

To: Heads of Government Departments, Agencies, and Others Concerned

1. Purpose

This transmittal letter releases revisions to I TFM 2-3300. The chapter title has been changed from "Reports of Agencies for Which the Treasury Disburses (FMS Form 224)" to "Statement of Transactions (FMS 224) Reporting by Agencies for Which the Treasury Disburses." This chapter provides guidance that Government departments and agencies follow when preparing and submitting the monthly FMS 224 and related supporting documents.

2. Procedural Changes

Changes to the chapter reflect the planned discontinuation of the FMS 6653: Undisbursed Appropriation Account Ledger, FMS 6654: Undisbursed Appropriation Account Trial Balance, and FMS 6655: Receipt Account Ledger/Trial Balance applications in the Government On-Line Accounting Link System II (GOALS II). In addition, agencies are informed of the availability of the Partial FMS 224 process in GOALS II.

3. Page Changes

4. Effective Date

This transmittal letter is effective immediately.

5. Inquiries

Direct questions concerning this transmittal letter to:

Cash Analysis Branch
Cash Accounting Division
Governmentwide Accounting
Financial Management Service
Department of the Treasury
3700 East-West Highway, Room 526E
Hyattsville, MD 20782
Telephone: 202-874-7980

Date: December 11, 2006

Kenneth R. Papaj
Commissioner