Collections and Cash Management Modernization (CCMM)

Background

Today, FMS processes 400 million transactions and collects over $3.1 trillion in annual gross revenue each year on behalf of hundreds of federal agency offices and programs. To do so, FMS manages over two dozen programs that typically are operated by Federal Reserve Banks or commercial banks that FMS has designated as fiscal or financial agents of the government.

The number and complexity of these systems and programs have grown significantly over the course of several decades as FMS and agency business needs have changed and multiplied. While these systems and programs are generally effective, they are not as efficient as they could be. The need to re-evaluate, simplify, and standardize has gradually become apparent and has led to the development of the CCMM initiative. CCMM will realign these collections and cash management systems to match a defined end-state business line architecture. The initiative will address all collections and settlement mechanisms, transaction reporting, cash concentration, cash forecasting, and investment practices.

CCMM changes are designed to help save money, but also to better position FMS for the future. In addition to not being as efficient as it could be, the complexity of the current architecture is a growing operational risk to the government. Through the elimination of duplicative data, products, interfaces, and technologies, FMS can become more efficient, minimize costs, and reduce the operational risk to the federal government. The changes also will help ensure that FMS does not become dependent on particular agent banks.

Objectives

To achieve these improvements, CCMM is guided by a number of key components that will impact agencies. One component of CCMM is a restructuring of FMS' collections programs. This includes consolidating collections programs such that each agency collection channel (e.g., mail, over-the-counter, Internet) is served by a single system. In addition, CCMM will separate settlement operations from existing collection programs so that there is one system per settlement mechanism (i.e., credit card, check, wire). Rather than perform settlement itself, each channel application will invoke the new settlement applications, which will provide shared services. The result will be a simpler architecture that still provides the same functionality as today.

Consolidating the transaction and deposit reporting that agencies currently receive from a myriad of collection programs and from a cash concentration system called CA$HLINK II is one of the most important components of CCMM. A new system called the Transaction Reporting System (TRS) will be the single touch point for agency reporting needs. Under CCMM, TRS will provide agencies with a daily consolidated report of all collections, rather than requiring agencies to receive separate reports from multiple systems and banks.

Lastly, as a part of the CCMM initiative, FMS has developed an XML schema for all revenue collection transactions. The use of XML will facilitate the standardization of financial reporting across the government, reduce data redundancy, and improve reporting consistency and data quality. FMS eventually will use XML to provide collections information to agencies, as opposed to using file formats that often are proprietary and bank specific. More information on this schema can be found at: www.fms.treas.gov/eda.


   Last Updated:  March 14, 2014