Regulations: 31 CFR 208-1

Fiscal Service, Treasury

§ 208.1

(b) Collection noncompliance. In the
case of cash management collection
noncompliance, an agency will absorb
the charge from amounts appropriated
or otherwise made available to carry
out the program to which the collections relate. Charges collected from an
executive agency in the case of cash
management collection noncompliance
will be deposited in the Cash Management Improvements Fund as outlined
in § 206.10.
(c) Payment noncompliance. [Reserved]
(d) If an agency does not voluntarily
pay the charge assessed under § 206.9(a),
the Service will debit the appropriate
account automatically. By failing to
pay voluntarily the charges as required
by the Deficit Reduction Act of 1984, an
agency will be deemed to authorize the
automatic debit to its account.
(e) The Commissioner will formally
terminate the charge when the Commissioner has determined that an agency has complied. In addition, on an annual basis, the Commissioner will review an agency’s performance and calculation of the charge, and will notify
an agency in writing of any changes to
the amount being charged.

project selection and approval committee cannot be appealed. Agencies
will be notified of any available
amounts in the Fund and requirements
to apply for such monies through a
TFM bulletin.
(c) As provided by 31 U.S.C. 3720,
sums in the Fund will be available
without fiscal year limitation for the
payment of expenses incurred in developing improved methods of collection
and deposit and the expenses incurred
in carrying out collections and deposits
using such methods, including the
costs of personal services and the costs
of the lease or purchase of equipment
and operating facilities.
(d) In addition to all reports required
by law and regulation, for each fiscal
year during which there is a balance in
Fund, the Service will prepare and publish, by the 60th day following the close
of the fiscal year, a full report on payments, receipts, disbursements, balances of the Fund, and full disclosure
on projects financed by the Fund.

PART 208—MANAGEMENT OF
FEDERAL AGENCY DISBURSEMENTS
Sec.
208.1 Scope and application.
208.2 Definitions.
208.3 Payment by electronic funds transfer.
208.4 Waivers.
208.5 Availability of the ETASM.
208.6 General account requirements.
208.7 Agency responsibilities.
208.8 Recipient responsibilities.
208.9 Compliance.
208.10 Reservation of rights.
APPENDIX A TO PART 208—MODEL DISCLOSURE
FOR USE UNTIL ETASM BECOMES AVAIL-

§ 206.10 Operation of and payments
from the Cash Management Improvements Fund.
(a) The Cash Management Improvements Fund (Fund) will be operated as
a revolving fund by the Service.
Charges assessed under § 206.9(a) for
cash management collection noncompliance will be deposited into the
Fund according to the Deficit Reduction Act of 1984. The Service will also
disburse any payments from the Fund
based on projects selected by a project
selection and approval committee.
(b) Committee composition. The committee will consist of three members—
two permanent members and one temporary member. The permanent members will be the Commissioner and the
Assistant Commissioner, Federal Finance, of the Service. The temporary
committee member will be a cash management official from an agency other
than an agency being considered for
funds. The order of agency assignment
to the Committee will be published in a
TFM Bulletin, when funds are first deposited to the Fund. Decisions of the

ABLE

APPENDIX B TO PART 208—MODEL DISCLOSURE
FOR USE AFTER ETASM BECOMES AVAILABLE

AUTHORITY: 5 U.S.C. 301; 12 U.S.C. 90, 265,
266, 1767, 1789a; 31 U.S.C. 321, 3122, 3301, 3302,
3303, 3321, 3325, 3327, 3328, 3332, 3335, 3336, 6503;
Pub. L. 104–208, 110 Stat. 3009.
SOURCE: 63 FR 51502, Sept. 25, 1998, unless
otherwise noted.

§ 208.1 Scope and application.
This part applies to all Federal payments made by an agency and, except
as specified in § 208.4, requires such
payments to be made by electronic
funds transfer. This part does not apply

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§ 208.2

31 CFR Ch. II (7–1–06 Edition)
Fedwire transfers, and transfers made
at automated teller machines and
point-of-sale terminals. For purposes of
this part only, the term electronic
funds transfer includes a credit card
transaction.
(f) ETASM means the Treasury-designated electronic transfer account
made available by a Federally-insured
financial institution acting as a Financial Agent in accordance with § 208.5 of
this part.
(g) Federal payment means any payment made by an agency.
(1) The term includes, but is not limited to:
(i) Federal wage, salary, and retirement payments;
(ii) Vendor and expense reimbursement payments;
(iii) Benefit payments; and
(iv) Miscellaneous payments including, but not limited to: interagency
payments; grants; loans; fees; principal, interest, and other payments related to U.S. marketable and nonmarketable securities; overpayment reimbursements; and payments under
Federal insurance or guarantee programs for loans.
(2) For purposes of this part only, the
term ‘‘Federal payment’’ does not
apply to payments under the Internal
Revenue Code of 1986 (26 U.S.C.).
(h) Federal/State EBT program means
any program that provides access to
Federal benefit, wage, salary, and retirement payments and to State-administered benefits through a single
delivery system and in which Treasury
designates a Financial Agent to disburse the Federal payments.
(i) Federally-insured financial institution means any financial institution,
the deposits of which are insured by
the Federal Deposit Insurance Corporation under 12 U.S.C. Chapter 16 or, in
the case of a credit union, the member
accounts of which are insured by the
National Credit Union Share Insurance
Fund under 12 U.S.C. Chapter 14, Subchapter II.
(j) Financial Agent means a financial
institution that has been designated by
Treasury as a Financial Agent for the
provision of EBT services under any
provision of Federal law, including 12
U.S.C. 90, 265, 266, 1767, and 1789a, and 31
U.S.C. 3122 and 3303, as amended by the

to payments under the Internal Revenue Code of 1986 (26 U.S.C.).
§ 208.2 Definitions.
(a) Agency means any department,
agency, or instrumentality of the
United States Government, or a corporation owned or controlled by the
Government of the United States.
(b) Authorized payment agent means
any individual or entity that is appointed or otherwise selected as a representative payee or fiduciary, under
regulations of the Social Security Administration, the Department of Veterans Affairs, the Railroad Retirement
Board, or other agency making Federal
payments, to act on behalf of an individual entitled to a Federal payment.
(c) Disbursement means, in the context of electronic benefits transfer, the
performance of the following duties by
a Financial Agent acting as agent of
the United States:
(1) The establishment of an account
for the recipient that meets the requirements of the Federal Deposit Insurance Corporation or the National
Credit Union Administration Board for
deposit or share insurance;
(2) The maintenance of such an account;
(3) The receipt of Federal payments
through the Automated Clearing House
system or other electronic means and
crediting of Federal payments to the
account; and (4) The provision of access
to funds in the account on the terms
specified by Treasury.
(d) Electronic benefits transfer (EBT)
means the provision of Federal benefit,
wage, salary, and retirement payments
electronically, through disbursement
by a financial institution acting as a
Financial Agent. For purposes of this
part,
EBT
includes
disbursement
through an ETASM and through a Federal/State EBT program.
(e) Electronic funds transfer means any
transfer of funds, other than a transaction originated by cash, check, or
similar paper instrument, that is initiated through an electronic terminal,
telephone, computer, or magnetic tape,
for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. The
term includes, but is not limited to,
Automated Clearing House transfers,

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