ACH.stm

SUPPORTING STATEMENT
Justification for:
"Regulation Governing Payments by the Automated Clearing
House Method on Account of United States Securities."
1. Explain the circumstances that make the collection of
information necessary. Identify any legal or
administrative requirements that necessitate the
collection. Chapter 31 of Title 31 of the United
States Code directs the United States Government to pay
principal and interest on obligations of the United
States including bonds, notes and bills. In
recognition of the need to improve the efficacy and
efficiency of its payment system, the Department of the
Treasury has undertaken to expand the use of the
Automated Clearing House (ACH) method of payment in
connection with United States securities. ACH is a
service for individuals who authorize the deposit of
payments directly into an account at a designated
financial institution. The collection of information
is necessary to enable an owner of a security to
designate a financial institution to receive ACH
payments and to identify the deposit account to which
payments are to be credited; to enable a financial
institution receiving ACH payments with respect to a
security, to change a deposit account number and/or
type or classification of deposit account; to enable
the Department and a financial institution to exchange
a pre-notification message and response, respectively;
to enable a financial institution to notify the
Department when a designated account has been closed or
if it is unable to credit the account for any reason,
including the death or incapacity of any individual
named on the account or the dissolution of an
institution; and to enable a financial institution to
respond to notice from the Department or a Federal
Reserve Bank regarding an erroneous payment and any
subsequent action taken to recover such payment.
2. Indicate how, by whom, and for what purpose the
information is to be used. The information will be
used by employees of the Department of the Treasury,
Bureau of the Public Debt, and the various Federal
Reserve Banks and branches, acting as fiscal agents of
the United States, who as part of their duties perform
functions in connection with the sale and issuance of
Treasury securities. If the collections of information
were not conducted, the Department of the Treasury
would be unable to make payments to an investor via the
ACH method payment in lieu thereof.

3. Describe whether, and to what extent, the collection
of information involves the use of automated,
electronic, mechanical, or other technological
collection techniques or other forms of information
technology. What consideration is given to use
information technology to reduce burden?
The ACH system is a direct deposit method of payment
through which participating institutions exchange funds
electronically, thereby eliminating unnecessary
duplicate paperwork.

4. Describe efforts to identify duplication. Why can’t
any similar information already available be used or
modified for use for the purposes described in item 2
above? Duplicate information is not requested.
5. If the collection of information impacts small
business or other small entities describe any methods
used to minimize burden? This collection of
information does not impact small business or other
small entities.
6. What consequences to Federal program or policy
activities and what, if any, technical or legal
obstacles to reducing burden will occur if this
collection is not conducted or is conducted less
frequently? N/A
7. Is this collection of information conducted in a
manner consistent with the guidelines of 5 CFR 1320.6?
The collection of information cannot be conducted less
frequently because the collection is initiated for a
single purpose.
8. What effort was made to notify the general public
about this collection of information? The Bureau’s
notice was published in the Federal Register on
January 9, 2007, Page 1059. No comments were
received.
9. What decision was made to provide any payment or gift
to respondents, other than reenumeration of
contractors or grantees? N/A
10. What assurance of confidentiality was provided to
respondents and what was the basis for the assurance in
statute, regulations, or agency policy? In accordance
with the Privacy Act of 1974, information furnished by
the public is assured confidentiality.

11. What justification is there for questions of a
sensitive nature? There are no questions of a sensitive
nature.
12. What is the estimated hour burden of this collection
of information? The burden for this collection is
reflected in the burden for the various forms involved.
13.

What is the estimated total annual cost burden to
respondents or recordkeepers resulting from this
collection of information? Estimated cost burden
to respondents is not available.

14.

What is the annualized cost to the Federal
Government? N/A

15.

What is the reason for any program changes or
adjustments reported in Items 13 or 14 of the OMB
Form 83-I? N/A

16.

For collections of information whose results will
be published, outline plans for tabulation and
publication. The results of the collection of this
information will not be published for statistical
use.

17.

If seeking approval to not display the expiration
date for OMB approval of this information
collection, what are the reasons that the display
would be inappropriate? N/A

18.

What are the exceptions to the certification
statement? N/A