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Overview:
Part of the Department of Treasury, the Financial Management Service (FMS) is in charge of the federal government’s money flow system. FMS develops and manages financial systems that collect and distribute money in and out of federal agencies and institutions. The volume of money that FMS handles is staggering. It disburses more than $1.6 trillion to more than 100 million individuals via social security and veterans’ benefits, income tax refunds and other federal payments. It collects more than $3.11 trillion per year in payments to the government through 10,000 financial institutions, with more than $2.45 trillion collected electronically. Although FMS proudly claims that it handles the government’s cash flows “efficiently, effectively and securely,” audits have revealed another story—of the bureau not collecting billions owed to the federal treasury and failing to correct serious flaws in its computer systems.
 
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History:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Treasury Department was created in 1789 to provide for the collection, safeguarding and disbursement of money and to maintain a system to account for the government’s collections and payments. The federal financial infrastructure to keep track of the government’s finances remained small during the country’s first 100 years. The Register of the Treasury originally carried out the account-keeping functions, while individual departments and independent agencies conducted their money-disbursing functions without Treasury oversight.
 
The first major federal financial management reform took place just after World War I. In late 1919, Treasury Secretary Carter Glass created the forerunners of the current fiscal operations bureaus by approving the positions of the Commissioner of Accounts and Deposits and the Commissioner of the Public Debt. The officials appointed to these positions oversaw the various organizations that comprised the new Bureau of Accounts and Deposits (later renamed the Bureau of Accounts) and the Bureau of the Public Debt. The former of these two bureaus was the first direct ancestor of today’s Financial Management Service.
 
Although the predecessors of today's fiscal service organizations were established in 1919, most federal payment functions remained decentralized until 1933. That year, President Franklin D. Roosevelt issued an executive order mandating the transfer of the executive departments’ disbursing clerks to the newly established Division of Disbursement, which was assigned to the Bureau of Accounts. One result of this order was the creation of Regional Disbursing Offices. Eventually, 27 of these facilities were established to handle the ever-increasing number of checks issued by the government. (Today, FMS only utilizes four payment sites, thanks to advances in technology).
 

In 1940, the Treasury Department established the Fiscal Service, which consisted of the Bureau of Accounts, the Bureau of the Public Debt and the Office of the Treasurer. A 1974 reorganization of the Fiscal Service created the Bureau of Government Financial Operations, which was formed from a merger of the Bureau of Accounts and most functions of the Office of the Treasurer. In 1984, the Bureau of Government Financial Operations was renamed the Financial Management Service (FMS); the new name was meant to reflect Treasury’s renewed emphasis on achieving greater efficiency and economy in government financial management.

 

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What it Does:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Treasury Department’s Financial Management Service (FMS) acts as the federal government’s money manager and bookkeeper, developing financial systems to move the government’s cash flows “efficiently, effectively and securely.” FMS provides centralized payment, collection, and reporting services for the government. The bureau also supports federal agencies’ financial management improvement efforts in the areas of education, consulting and accounting operations through a franchise fund business. The work of FMS supports the government-wide initiatives under the President’s management agenda—Improved Financial Performance and Expanded Electronic Government.
 
FMS disburses more than $1.6 trillion to more than 100 million individuals via social security and veterans’ benefits, income tax refunds and other federal payments. It collects more than $3.11 trillion per year in payments to the government through 10,000 financial institutions, with more than $2.45 trillion collected electronically. The office provides cash management guidance to federal program agencies and serves as the government’s central debt collection agency by managing the government’s delinquent debt portfolio. In doing so, FMS collects more than $3.7 billion per year in delinquent debts.
           
FMS has about 2,100 employees, one-third of whom are located in four Regional Financial Centers (RFCs)—Austin, TX; Kansas City, MO; Philadelphia, PA; and San Francisco, CA; and one Debt Collection Center in Alabama.
 
Payments
In fiscal year 2007, FMS issued more than 982 million non-Defense payments with a dollar value of nearly $1.6 trillion to more than 100 million people. More than 78% of these payments were issued by Electronic Funds Transfer (EFT). Nearly 215 million of FMS’ payments were disbursed by check. In 1996, Congress passed a law requiring most federal payments to be paid by EFT. For those individuals without a bank account, Treasury designed the Electronic Transfer Account (ETA), a low-cost account to be offered by federally insured financial institutions with the same consumer protections available to other account holders. The ETA is available to any federal benefit, wage, salary or retirement payment regardless of the recipients’ previous credit history.
FMS Regional Financial Centers perform other payment-related services, including preliminary handling of check claims, complete handling of EFT claims, processing of all trace and reclamation actions for EFT payments, cancellation of returned checks, and making any related adjustment in agency accounts.
 
Collections
FMS administers the world’s largest collections system, gathering more than $3.11 trillion annually through a network of more than 10,000 financial institutions. FMS collects more than $2.45 trillion of that total—nearly 79%—through electronic transactions. It also manages the collection of federal revenues, such as individual and corporate income tax deposits, customs duties, loan repayments, fines and proceeds from leases. The Electronic Federal Tax Payment System (EFTPS) was originally introduced in 1996, but in September 2001, FMS and IRS launched a new Internet application, EFTPS-Online, which offers all businesses and individuals the convenience of making their federal tax payments electronically anytime, instead of using checks. In FY 2007, EFTPS collected nearly $2.09 trillion, with more than $349 billion collected through EFTPS-Online.
 
Government-wide Accounting
FMS gathers and publishes government-wide financial information that is used in establishing fiscal and debt management policies and also is used by the public and private sectors to monitor the government’s financial status. These publications include: Daily Treasury Statement; Monthly Treasury Statement; Treasury Bulletin; US Government Annual Report; and Financial Report of the US Government. The Financial Report is the federal government’s set of audited financial statements, a requirement of the Government Management and Reform Act of 1994. The Intragovernmental Payment and Collection System (IPAC), which interfaces with the FMS Central Accounting System to provide accounting information used to report the government’s financial status, enables funds to be transferred between federal program agencies and provides the capability for agencies to include descriptive information related to each transaction, assisting FPAs with their monthly reconciliation. IPAC is currently used by approximately 900 government agencies.
 
Debt Collection
FMS serves as the government’s central debt collection agency, managing the government’s delinquent debt portfolio. Since enactment of the Debt Collection Improvement Act of 1996 (DCIA), FMS has collected $31.5 billion in delinquent debt. In FY 2007, FMS collected more than $3.7 billion in delinquent debt owed to the federal government.
 
Electronic Commerce

Through its Electronic Money (E-Money) Program, FMS tests new payment and collection technologies using the Internet and card technology, as well as related technologies such as digital signatures and biometrics. FMS has several programs to help federal agencies modernize their payment and collection activities, including: government-wide collections portal;

stored value cards

used on military bases and in government hospitals; point-of-sale check truncation; and an Internet credit card collection program. Since October 2000, FMS has collected monies through a federal Internet portal called

Pay.gov

. Pay.gov provides collections, form submittal and bill presentment, authentication, and agency financial reporting services. Pay.gov, which has been implemented with 85 federal agencies representing 208 cashflows, collected $37.9 billion in FY 2007.

 

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Where Does the Money Go:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to USAspending.gov, the Financial Management Service spent more than $680 million this decade on goods and services provided by private companies. A total of 1,956 contractors were paid by FMS for such work as Automated Data Processing (ADP) and telecommunications services ($91 million), software ($83 million), ADP support equipment ($57 million), banking services ($45 million) and ADPE system configuration ($40 million).
 
The top recipients of FMS expenditures are:
IBM
$55,795,375
M-Cubed Information Systems
$31,286,514
Computer Sciences Corporation
$30,233,430
STG, Inc.
$27,991,080
Onpoint Consulting Inc.
$27,103,971
Pante' Technology Corporation
$21,203,271
Avineon, Inc.
$18,722,309
SAIC, Inc.
$17,272,538
Integrated Solutions
$16,375,942

 

more
Controversies:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FMS Not Collecting from Deadbeat Businesses
The Government Accountability Office (GAO) reported in 2005 that the Financial Management Service had failed to dock 33,000 businesses that owed back taxes to the federal government. The total amount owed was $3.3 billion.
 
Under federal law, FMS is supposed to withhold 15% from payments the government makes to companies owing taxes. Instead of collecting the three billion owed to the US treasury, FMS only collected $16 million.
 
FMS’ leadership said it was working with the Internal Revenue Service and other agencies to subject delinquent contractors to the withholding program.
 
FMS Slow to Make Changes to Computer Systems
The Financial Management Service has demonstrated a pattern of not addressing serious flaws in its computer controls, according to the GAO. In 1999, 2000 and 2002, the government watchdog agency pointed out that FMS’ financial systems were at “significant risk of fraud, unauthorized disclosure and modification of sensitive data and programs, misuse or damage to computer resources, or disruption of critical
operations”—all of which threatened billions of dollars in revenue. In its 2002 report, GAO stated that FMS still needed to act on approximately 42% of the weaknesses discussed in the 1999 report.

FMS Significant Weaknesses in Computer Controls Continue

(GAO Report) (PDF)

 

more
Suggested Reforms:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAO Urges Changes to Computer Controls
To address concerns about FMS’ computer systems that potentially threatened billions in federal revenue, the Government Accountability Office recommended the following changes:
  • fully implement an effective security program
  • correct each individual weakness that GAO identified and address each of the 85 specific recommendations detailed in the December 14, 2001, report
  • work with the Federal Reserve Banks (FRBs) to monitor corrective actions taken to resolve the computer control vulnerabilities related to FMS systems supported by the FRBs that GAO identified and communicated to the FRBs
  • develop a detailed plan that describes the remedial actions, resources, target dates, and responsible agency officials to facilitate the implementation of its security program.
  • FMS Significant Weaknesses in Computer Controls Continue (GAO Report) (PDF)

 

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See all 33 comments

Comments

Doug Clark 4 years ago
How do I talk to a human regarding the debt you took from my taxes and applied them to my ex wife debt.
DAVID L DEBOARD 5 years ago
I have spent 8 months trying to tell BUREAU OF THE FISCAL SERVICE DMSC-BIRMINGHAM OFFICE THAT I DID NOT OWE THEM THIS MONEY AND THEY TOOK MY MONEY ANYWAY 9/03/2017 OF 122.OO+CHANG OUT OF MY DISABILITY CHECK OUT OF 889.00 THAT I LIVE ON THATS ALL I HAVE EACH MONTH THEN THEY STOPPED AND NOW 10/03 2018 THEY TOOK IT AGAIN AND NOW THERE TAKING 133.35 THIS MOUTH ALL OF THAT MONEY IS WHAT I PAY MY BILLS WITH I JUST HAD ANOTHER BACK SURGERY THIS MOUTH 10/2018 AND I DON'T KNOW WHAT I AM GOING TO DO ABOUT MY BILLS I AM HURT AND HAVE TO HAVE MORE SURGERIES ON MY BACK I CALLED AND TRIED TO GET SOME HELP AND ALL THEY CAN SAY I WRITE A LETTER TO ASK FOR A OFFSET HARDSHIP TO HAVE IT STOPED I HOPE I AM ASKING THE RIGHT PLACE FOR HELP AND IF I AM NOT I AM SORRY FOR BROTHERING YOU AND THANK YOU AND MAY GOD BLESS YOU FOR YOUR TIME I JUST DON'T KNOW WHAT TO DO IF YOUR NOT THE RIGHT ONE MY TOP TRACE NUMBER IS 152761290 ACCOUNT IS #8693964 CAN YOU PLEASE HELP ME I AM GOING TO LOSE EVERYTHING I HAVE THE MONEY THAT THEY HAV ALL READY TOOK HAS PUT ME IN MORE TROUBLE THAN I'LL BE ABLE TO GET OUT OF THIS HAS BEEN A VERY BAD TIME IN MY LIFE I HAVE WORKED HARD IN MY LIFE AND NOW I AM LOSEING EVERY THING MY WIFE HAS TO STAY HOME AN HELP ME AND HAS EVERY DAY WHEN I HAD TO STOP WORKING I CAN'T TAKE THIS HARDSHIP THAT THEY HAVE PUT ON ME OVER NOTHING I DID WRONG PLEASE DIRECT ME IN THE RIGHT WAY PLEASE, PLEASE HELP I NEED MY MONEY BACK IM MIGHT NOT HAVE NO ELECTRIC BY THE TIME YOU GET THIS TO WRIGHT YOU ALL BACK TO SAY THANK YOU ALL OR WHO EVER WILL READ THIS SO THANKS SO VERY MUCH (DAVID L DEBOARD
Jeremy Thompson 6 years ago
Honestly, I don't have any ideas about this fiscal management service until my wife talked about it yesterday. It got me curious, so I'm here. As I understand, FMS is a part of the Department of Treasury that handles the money flow systems. I don't think that I would need this, but I could possibly recommend this to my friend who is in the service. I'll try read more before sharing it with him. Thanks for the interesting read on what FMS is! https://www.strongcitybaltimore.org/give-to-a-client/
Roselyn Estrada 8 years ago
I was given a few $20.00 bills. Among them was one that was torn ( approx. 1" off the top and 1 1/4" off the bottom). I did not realize it until later. My bank told me to contact you regarding how I can get reimbursed for the money. No one will take it! Please help me. I appreciate your time and trouble. My phone # is 818/772-6006. Sincerely, Ros Estrada 12/16/15
melva sue kettering 8 years ago
I am here RE: IRS, no answering phone if it is answered I am told I have the wrong dept will transfer, no answer. I have spent three to four hours each day this week trying to get help. I am sure they took out more than 30% tax on a $62,ooo.00 gift from my trust by my mother. How can I who gets slightly more than $13,000.00 from SS and $4800.00 roughly from my trust which is returned to the investment be taxed at the real 15% not 32 - 33% tax? Rich people do not pay that, I have little to no cash flow and no one will help me by saying this record is correct. Do you have a phone number which a live, smart person can answer my questions? Any advice? There is no estate, it closed in 2014. There is no money left. I am being discriminated against by our own nation. Please direct me, I will pay the fine.
Dave 9 years ago
On IRS form 8938, Part V, it asks for source of exchange rate used if not from USTFMS. Here at USTFMS I can't find an exchange rate. What is going on? What did I miss?
Eligha Presberry 9 years ago
Did not receive my tax check in 2014 a.presberry
andrea ******* 9 years ago
Im just wondering how my husbands being attacked by your debt collectors services for money he doesnt owe you people. He is being informed he owes some 4000 dollars for a vehicle accident that occured in winter being a weather related accident the accident occured without warning and without his control as another accident occured shortly before his in the same area of the highway. Now to my understanding we fall below government poverty line and we barely make ends meet with are two disabled children in whom which only one receives ssi as well as myself and government medical aka assistance and have been for years for this reason we can't afford to live out of pay check to pay check. I myself have a medical chrisis my medical will not cover which is dental work I need or risk me dying of infections that continue to occur because of my lack of appropriate medical I need. So please inform me how it is your debt collectors can collect from people with no means to pay and throw people like me and my family to the streets just to collect a wrongful debt for a weather related accident that did not nearly as much damage to a postal truck then to my car which I couldn't fix or drive a month later because of the damage while there vehicle remained intact? Flaws system im seeing here, and not understanding how it works this way, very frustrated American. At this point I think speaking to an attorney to this supposed 4000 dollar accident damages claim and sueing someone for this pain.
willie roy 9 years ago
My name is willie I am about to be homeless and i am a disable senior because my check got sent to the wrong account after going to social security personally and asking them not to send it to that account and I then ask if they can can send it direct deposit on the card that I have the same account they told me that it would not take affect till the following month and then I called ask where was my check they then told me that I will be getting it direct deposited on the account with the card i received give them till the 19th of sep. come the 19th I have not received any thing any i now have to to go through lots of different people to speak with some in the department i need and every time i call the phone hangs up all month long what do a senior do.
P.O. Taxypaer 10 years ago
To: Bayabi B. Labayog. If your "client" (Mrs.Luciana L. Ulat) is from the Philippines and NOT a Certified LEGAL Citizen of the United States of America, then she is NOT, nor will she ever be eligible for ANY payments from the United States Treasury. But the Internal Revenue Service will be more than happy to investigate your client on any and all claims that your or she would like to try and claim from the United States Treasury. Hope this helps answer your question(s).

Leave a comment

Founded: 1974
Annual Budget: $449.6 million
Employees: 2,100
Bureau of the Fiscal Service
Morrow, Sheryl
Commissioner

On June 30, 2014, Sheryl R. Morrow began serving as the commissioner of the Bureau of the Fiscal Service (Fiscal Service). Located in the Department of the Treasury, the Fiscal Service replaced the Bureau of the Public Debt and the Financial Management Service (FMS), which were consolidated into it, effective October 7, 2012. The Bureau manages the government’s accounting, central payment systems, and public debt programs. 

 

Born circa 1956 to John S. Rickard and Valerie (Martins), Morrow has two sisters and a brother. She earned a B.S. degree in business administration, majoring in accounting and economics, at George Mason University in 1978. 

 

That same year, Morrow began her government career with the Department of the Army. She moved to the U.S. Customs Service in 1980, serving as an accountant in both positions. She joined FMS in 1983 and has held a variety of jobs during her 34 years there.

 

From July 2007 to January 2010, Morrow served as the assistant commissioner of federal finance at FMS, where she was responsible for managing nearly $3.2 trillion in annual federal revenue collections.

 

From 2010 to late 2012, Morrow served as the assistant commissioner of payment management and was the chief disbursing officer at FMS, responsible for disbursing more than 1.2 billion payments each year, including tax refunds and Social Security, veterans’ benefits, railroad retirement, and civil service retirement payments.

 

From December 2012 to June 2014, Morrow served as the deputy assistant secretary for fiscal operations and policy at Treasury, where she provided day-to-day support to the fiscal assistant secretary.

 

Sheryl Morrow lives in Dumfries, Virginia, with her husband, Mark. The couple has two sons, Mark and John.

-Matt Bewig

 

To Learn More:

Official Biography

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Lebryk, David
Previous Comissioner

David A. Lebryk was selected as commissioner of the U.S. Department of the Treasury’s Financial Management Service (FMS) on June 26, 2009.

 
Lebryk graduated from Harvard College with an AB in economics, and holds a master’s degree in public administration from Harvard University’s John F. Kennedy School of Government.
 
He joined the Treasury Department in 1989 as a presidential management intern in the Office of the Assistant Secretary for Policy Management and Counselor to the Secretary. He later served as acting deputy assistant secretary for human resources, as an advisor to the deputy secretary of the treasury and to three under secretaries for domestic finance, and deputy assistant secretary for fiscal operations and policy. In this latter position, he oversaw policies and programs relating to the government’s cash management, debt financing, investment and administration of trust funds, payments and collections.
 
Lebryk served as deputy director at the U.S. Mint from October 2002 to December 2007. During this span, he also served as the Mint’s acting director (August 2005 to September 2006). There, he had responsibility for the day-to-day operations of the world’s largest manufacturer of coins, medals and coin products with operations in San Francisco, Denver, Philadelphia, West Point, Fort Knox, and the District of Columbia.
 
Prior to being named FMS commissioner, Lebryk was deputy commissioner, beginning in January 2008. As deputy commissioner, he carried out chief operating officer responsibilities including leadership, policy direction and guidance over all areas of FMS’ mission.
 
Lebryk is married to Susie Lebryk-Chao, a high school English teacher.
 
Commissioner David A. Lebryk (Financial Management Service)
 
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Bookmark and Share
Overview:
Part of the Department of Treasury, the Financial Management Service (FMS) is in charge of the federal government’s money flow system. FMS develops and manages financial systems that collect and distribute money in and out of federal agencies and institutions. The volume of money that FMS handles is staggering. It disburses more than $1.6 trillion to more than 100 million individuals via social security and veterans’ benefits, income tax refunds and other federal payments. It collects more than $3.11 trillion per year in payments to the government through 10,000 financial institutions, with more than $2.45 trillion collected electronically. Although FMS proudly claims that it handles the government’s cash flows “efficiently, effectively and securely,” audits have revealed another story—of the bureau not collecting billions owed to the federal treasury and failing to correct serious flaws in its computer systems.
 
more
History:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Treasury Department was created in 1789 to provide for the collection, safeguarding and disbursement of money and to maintain a system to account for the government’s collections and payments. The federal financial infrastructure to keep track of the government’s finances remained small during the country’s first 100 years. The Register of the Treasury originally carried out the account-keeping functions, while individual departments and independent agencies conducted their money-disbursing functions without Treasury oversight.
 
The first major federal financial management reform took place just after World War I. In late 1919, Treasury Secretary Carter Glass created the forerunners of the current fiscal operations bureaus by approving the positions of the Commissioner of Accounts and Deposits and the Commissioner of the Public Debt. The officials appointed to these positions oversaw the various organizations that comprised the new Bureau of Accounts and Deposits (later renamed the Bureau of Accounts) and the Bureau of the Public Debt. The former of these two bureaus was the first direct ancestor of today’s Financial Management Service.
 
Although the predecessors of today's fiscal service organizations were established in 1919, most federal payment functions remained decentralized until 1933. That year, President Franklin D. Roosevelt issued an executive order mandating the transfer of the executive departments’ disbursing clerks to the newly established Division of Disbursement, which was assigned to the Bureau of Accounts. One result of this order was the creation of Regional Disbursing Offices. Eventually, 27 of these facilities were established to handle the ever-increasing number of checks issued by the government. (Today, FMS only utilizes four payment sites, thanks to advances in technology).
 

In 1940, the Treasury Department established the Fiscal Service, which consisted of the Bureau of Accounts, the Bureau of the Public Debt and the Office of the Treasurer. A 1974 reorganization of the Fiscal Service created the Bureau of Government Financial Operations, which was formed from a merger of the Bureau of Accounts and most functions of the Office of the Treasurer. In 1984, the Bureau of Government Financial Operations was renamed the Financial Management Service (FMS); the new name was meant to reflect Treasury’s renewed emphasis on achieving greater efficiency and economy in government financial management.

 

more
What it Does:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Treasury Department’s Financial Management Service (FMS) acts as the federal government’s money manager and bookkeeper, developing financial systems to move the government’s cash flows “efficiently, effectively and securely.” FMS provides centralized payment, collection, and reporting services for the government. The bureau also supports federal agencies’ financial management improvement efforts in the areas of education, consulting and accounting operations through a franchise fund business. The work of FMS supports the government-wide initiatives under the President’s management agenda—Improved Financial Performance and Expanded Electronic Government.
 
FMS disburses more than $1.6 trillion to more than 100 million individuals via social security and veterans’ benefits, income tax refunds and other federal payments. It collects more than $3.11 trillion per year in payments to the government through 10,000 financial institutions, with more than $2.45 trillion collected electronically. The office provides cash management guidance to federal program agencies and serves as the government’s central debt collection agency by managing the government’s delinquent debt portfolio. In doing so, FMS collects more than $3.7 billion per year in delinquent debts.
           
FMS has about 2,100 employees, one-third of whom are located in four Regional Financial Centers (RFCs)—Austin, TX; Kansas City, MO; Philadelphia, PA; and San Francisco, CA; and one Debt Collection Center in Alabama.
 
Payments
In fiscal year 2007, FMS issued more than 982 million non-Defense payments with a dollar value of nearly $1.6 trillion to more than 100 million people. More than 78% of these payments were issued by Electronic Funds Transfer (EFT). Nearly 215 million of FMS’ payments were disbursed by check. In 1996, Congress passed a law requiring most federal payments to be paid by EFT. For those individuals without a bank account, Treasury designed the Electronic Transfer Account (ETA), a low-cost account to be offered by federally insured financial institutions with the same consumer protections available to other account holders. The ETA is available to any federal benefit, wage, salary or retirement payment regardless of the recipients’ previous credit history.
FMS Regional Financial Centers perform other payment-related services, including preliminary handling of check claims, complete handling of EFT claims, processing of all trace and reclamation actions for EFT payments, cancellation of returned checks, and making any related adjustment in agency accounts.
 
Collections
FMS administers the world’s largest collections system, gathering more than $3.11 trillion annually through a network of more than 10,000 financial institutions. FMS collects more than $2.45 trillion of that total—nearly 79%—through electronic transactions. It also manages the collection of federal revenues, such as individual and corporate income tax deposits, customs duties, loan repayments, fines and proceeds from leases. The Electronic Federal Tax Payment System (EFTPS) was originally introduced in 1996, but in September 2001, FMS and IRS launched a new Internet application, EFTPS-Online, which offers all businesses and individuals the convenience of making their federal tax payments electronically anytime, instead of using checks. In FY 2007, EFTPS collected nearly $2.09 trillion, with more than $349 billion collected through EFTPS-Online.
 
Government-wide Accounting
FMS gathers and publishes government-wide financial information that is used in establishing fiscal and debt management policies and also is used by the public and private sectors to monitor the government’s financial status. These publications include: Daily Treasury Statement; Monthly Treasury Statement; Treasury Bulletin; US Government Annual Report; and Financial Report of the US Government. The Financial Report is the federal government’s set of audited financial statements, a requirement of the Government Management and Reform Act of 1994. The Intragovernmental Payment and Collection System (IPAC), which interfaces with the FMS Central Accounting System to provide accounting information used to report the government’s financial status, enables funds to be transferred between federal program agencies and provides the capability for agencies to include descriptive information related to each transaction, assisting FPAs with their monthly reconciliation. IPAC is currently used by approximately 900 government agencies.
 
Debt Collection
FMS serves as the government’s central debt collection agency, managing the government’s delinquent debt portfolio. Since enactment of the Debt Collection Improvement Act of 1996 (DCIA), FMS has collected $31.5 billion in delinquent debt. In FY 2007, FMS collected more than $3.7 billion in delinquent debt owed to the federal government.
 
Electronic Commerce

Through its Electronic Money (E-Money) Program, FMS tests new payment and collection technologies using the Internet and card technology, as well as related technologies such as digital signatures and biometrics. FMS has several programs to help federal agencies modernize their payment and collection activities, including: government-wide collections portal;

stored value cards

used on military bases and in government hospitals; point-of-sale check truncation; and an Internet credit card collection program. Since October 2000, FMS has collected monies through a federal Internet portal called

Pay.gov

. Pay.gov provides collections, form submittal and bill presentment, authentication, and agency financial reporting services. Pay.gov, which has been implemented with 85 federal agencies representing 208 cashflows, collected $37.9 billion in FY 2007.

 

more
Where Does the Money Go:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to USAspending.gov, the Financial Management Service spent more than $680 million this decade on goods and services provided by private companies. A total of 1,956 contractors were paid by FMS for such work as Automated Data Processing (ADP) and telecommunications services ($91 million), software ($83 million), ADP support equipment ($57 million), banking services ($45 million) and ADPE system configuration ($40 million).
 
The top recipients of FMS expenditures are:
IBM
$55,795,375
M-Cubed Information Systems
$31,286,514
Computer Sciences Corporation
$30,233,430
STG, Inc.
$27,991,080
Onpoint Consulting Inc.
$27,103,971
Pante' Technology Corporation
$21,203,271
Avineon, Inc.
$18,722,309
SAIC, Inc.
$17,272,538
Integrated Solutions
$16,375,942

 

more
Controversies:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FMS Not Collecting from Deadbeat Businesses
The Government Accountability Office (GAO) reported in 2005 that the Financial Management Service had failed to dock 33,000 businesses that owed back taxes to the federal government. The total amount owed was $3.3 billion.
 
Under federal law, FMS is supposed to withhold 15% from payments the government makes to companies owing taxes. Instead of collecting the three billion owed to the US treasury, FMS only collected $16 million.
 
FMS’ leadership said it was working with the Internal Revenue Service and other agencies to subject delinquent contractors to the withholding program.
 
FMS Slow to Make Changes to Computer Systems
The Financial Management Service has demonstrated a pattern of not addressing serious flaws in its computer controls, according to the GAO. In 1999, 2000 and 2002, the government watchdog agency pointed out that FMS’ financial systems were at “significant risk of fraud, unauthorized disclosure and modification of sensitive data and programs, misuse or damage to computer resources, or disruption of critical
operations”—all of which threatened billions of dollars in revenue. In its 2002 report, GAO stated that FMS still needed to act on approximately 42% of the weaknesses discussed in the 1999 report.

FMS Significant Weaknesses in Computer Controls Continue

(GAO Report) (PDF)

 

more
Suggested Reforms:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAO Urges Changes to Computer Controls
To address concerns about FMS’ computer systems that potentially threatened billions in federal revenue, the Government Accountability Office recommended the following changes:
  • fully implement an effective security program
  • correct each individual weakness that GAO identified and address each of the 85 specific recommendations detailed in the December 14, 2001, report
  • work with the Federal Reserve Banks (FRBs) to monitor corrective actions taken to resolve the computer control vulnerabilities related to FMS systems supported by the FRBs that GAO identified and communicated to the FRBs
  • develop a detailed plan that describes the remedial actions, resources, target dates, and responsible agency officials to facilitate the implementation of its security program.
  • FMS Significant Weaknesses in Computer Controls Continue (GAO Report) (PDF)

 

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Comments

Doug Clark 4 years ago
How do I talk to a human regarding the debt you took from my taxes and applied them to my ex wife debt.
DAVID L DEBOARD 5 years ago
I have spent 8 months trying to tell BUREAU OF THE FISCAL SERVICE DMSC-BIRMINGHAM OFFICE THAT I DID NOT OWE THEM THIS MONEY AND THEY TOOK MY MONEY ANYWAY 9/03/2017 OF 122.OO+CHANG OUT OF MY DISABILITY CHECK OUT OF 889.00 THAT I LIVE ON THATS ALL I HAVE EACH MONTH THEN THEY STOPPED AND NOW 10/03 2018 THEY TOOK IT AGAIN AND NOW THERE TAKING 133.35 THIS MOUTH ALL OF THAT MONEY IS WHAT I PAY MY BILLS WITH I JUST HAD ANOTHER BACK SURGERY THIS MOUTH 10/2018 AND I DON'T KNOW WHAT I AM GOING TO DO ABOUT MY BILLS I AM HURT AND HAVE TO HAVE MORE SURGERIES ON MY BACK I CALLED AND TRIED TO GET SOME HELP AND ALL THEY CAN SAY I WRITE A LETTER TO ASK FOR A OFFSET HARDSHIP TO HAVE IT STOPED I HOPE I AM ASKING THE RIGHT PLACE FOR HELP AND IF I AM NOT I AM SORRY FOR BROTHERING YOU AND THANK YOU AND MAY GOD BLESS YOU FOR YOUR TIME I JUST DON'T KNOW WHAT TO DO IF YOUR NOT THE RIGHT ONE MY TOP TRACE NUMBER IS 152761290 ACCOUNT IS #8693964 CAN YOU PLEASE HELP ME I AM GOING TO LOSE EVERYTHING I HAVE THE MONEY THAT THEY HAV ALL READY TOOK HAS PUT ME IN MORE TROUBLE THAN I'LL BE ABLE TO GET OUT OF THIS HAS BEEN A VERY BAD TIME IN MY LIFE I HAVE WORKED HARD IN MY LIFE AND NOW I AM LOSEING EVERY THING MY WIFE HAS TO STAY HOME AN HELP ME AND HAS EVERY DAY WHEN I HAD TO STOP WORKING I CAN'T TAKE THIS HARDSHIP THAT THEY HAVE PUT ON ME OVER NOTHING I DID WRONG PLEASE DIRECT ME IN THE RIGHT WAY PLEASE, PLEASE HELP I NEED MY MONEY BACK IM MIGHT NOT HAVE NO ELECTRIC BY THE TIME YOU GET THIS TO WRIGHT YOU ALL BACK TO SAY THANK YOU ALL OR WHO EVER WILL READ THIS SO THANKS SO VERY MUCH (DAVID L DEBOARD
Jeremy Thompson 6 years ago
Honestly, I don't have any ideas about this fiscal management service until my wife talked about it yesterday. It got me curious, so I'm here. As I understand, FMS is a part of the Department of Treasury that handles the money flow systems. I don't think that I would need this, but I could possibly recommend this to my friend who is in the service. I'll try read more before sharing it with him. Thanks for the interesting read on what FMS is! https://www.strongcitybaltimore.org/give-to-a-client/
Roselyn Estrada 8 years ago
I was given a few $20.00 bills. Among them was one that was torn ( approx. 1" off the top and 1 1/4" off the bottom). I did not realize it until later. My bank told me to contact you regarding how I can get reimbursed for the money. No one will take it! Please help me. I appreciate your time and trouble. My phone # is 818/772-6006. Sincerely, Ros Estrada 12/16/15
melva sue kettering 8 years ago
I am here RE: IRS, no answering phone if it is answered I am told I have the wrong dept will transfer, no answer. I have spent three to four hours each day this week trying to get help. I am sure they took out more than 30% tax on a $62,ooo.00 gift from my trust by my mother. How can I who gets slightly more than $13,000.00 from SS and $4800.00 roughly from my trust which is returned to the investment be taxed at the real 15% not 32 - 33% tax? Rich people do not pay that, I have little to no cash flow and no one will help me by saying this record is correct. Do you have a phone number which a live, smart person can answer my questions? Any advice? There is no estate, it closed in 2014. There is no money left. I am being discriminated against by our own nation. Please direct me, I will pay the fine.
Dave 9 years ago
On IRS form 8938, Part V, it asks for source of exchange rate used if not from USTFMS. Here at USTFMS I can't find an exchange rate. What is going on? What did I miss?
Eligha Presberry 9 years ago
Did not receive my tax check in 2014 a.presberry
andrea ******* 9 years ago
Im just wondering how my husbands being attacked by your debt collectors services for money he doesnt owe you people. He is being informed he owes some 4000 dollars for a vehicle accident that occured in winter being a weather related accident the accident occured without warning and without his control as another accident occured shortly before his in the same area of the highway. Now to my understanding we fall below government poverty line and we barely make ends meet with are two disabled children in whom which only one receives ssi as well as myself and government medical aka assistance and have been for years for this reason we can't afford to live out of pay check to pay check. I myself have a medical chrisis my medical will not cover which is dental work I need or risk me dying of infections that continue to occur because of my lack of appropriate medical I need. So please inform me how it is your debt collectors can collect from people with no means to pay and throw people like me and my family to the streets just to collect a wrongful debt for a weather related accident that did not nearly as much damage to a postal truck then to my car which I couldn't fix or drive a month later because of the damage while there vehicle remained intact? Flaws system im seeing here, and not understanding how it works this way, very frustrated American. At this point I think speaking to an attorney to this supposed 4000 dollar accident damages claim and sueing someone for this pain.
willie roy 9 years ago
My name is willie I am about to be homeless and i am a disable senior because my check got sent to the wrong account after going to social security personally and asking them not to send it to that account and I then ask if they can can send it direct deposit on the card that I have the same account they told me that it would not take affect till the following month and then I called ask where was my check they then told me that I will be getting it direct deposited on the account with the card i received give them till the 19th of sep. come the 19th I have not received any thing any i now have to to go through lots of different people to speak with some in the department i need and every time i call the phone hangs up all month long what do a senior do.
P.O. Taxypaer 10 years ago
To: Bayabi B. Labayog. If your "client" (Mrs.Luciana L. Ulat) is from the Philippines and NOT a Certified LEGAL Citizen of the United States of America, then she is NOT, nor will she ever be eligible for ANY payments from the United States Treasury. But the Internal Revenue Service will be more than happy to investigate your client on any and all claims that your or she would like to try and claim from the United States Treasury. Hope this helps answer your question(s).

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Founded: 1974
Annual Budget: $449.6 million
Employees: 2,100
Bureau of the Fiscal Service
Morrow, Sheryl
Commissioner

On June 30, 2014, Sheryl R. Morrow began serving as the commissioner of the Bureau of the Fiscal Service (Fiscal Service). Located in the Department of the Treasury, the Fiscal Service replaced the Bureau of the Public Debt and the Financial Management Service (FMS), which were consolidated into it, effective October 7, 2012. The Bureau manages the government’s accounting, central payment systems, and public debt programs. 

 

Born circa 1956 to John S. Rickard and Valerie (Martins), Morrow has two sisters and a brother. She earned a B.S. degree in business administration, majoring in accounting and economics, at George Mason University in 1978. 

 

That same year, Morrow began her government career with the Department of the Army. She moved to the U.S. Customs Service in 1980, serving as an accountant in both positions. She joined FMS in 1983 and has held a variety of jobs during her 34 years there.

 

From July 2007 to January 2010, Morrow served as the assistant commissioner of federal finance at FMS, where she was responsible for managing nearly $3.2 trillion in annual federal revenue collections.

 

From 2010 to late 2012, Morrow served as the assistant commissioner of payment management and was the chief disbursing officer at FMS, responsible for disbursing more than 1.2 billion payments each year, including tax refunds and Social Security, veterans’ benefits, railroad retirement, and civil service retirement payments.

 

From December 2012 to June 2014, Morrow served as the deputy assistant secretary for fiscal operations and policy at Treasury, where she provided day-to-day support to the fiscal assistant secretary.

 

Sheryl Morrow lives in Dumfries, Virginia, with her husband, Mark. The couple has two sons, Mark and John.

-Matt Bewig

 

To Learn More:

Official Biography

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Lebryk, David
Previous Comissioner

David A. Lebryk was selected as commissioner of the U.S. Department of the Treasury’s Financial Management Service (FMS) on June 26, 2009.

 
Lebryk graduated from Harvard College with an AB in economics, and holds a master’s degree in public administration from Harvard University’s John F. Kennedy School of Government.
 
He joined the Treasury Department in 1989 as a presidential management intern in the Office of the Assistant Secretary for Policy Management and Counselor to the Secretary. He later served as acting deputy assistant secretary for human resources, as an advisor to the deputy secretary of the treasury and to three under secretaries for domestic finance, and deputy assistant secretary for fiscal operations and policy. In this latter position, he oversaw policies and programs relating to the government’s cash management, debt financing, investment and administration of trust funds, payments and collections.
 
Lebryk served as deputy director at the U.S. Mint from October 2002 to December 2007. During this span, he also served as the Mint’s acting director (August 2005 to September 2006). There, he had responsibility for the day-to-day operations of the world’s largest manufacturer of coins, medals and coin products with operations in San Francisco, Denver, Philadelphia, West Point, Fort Knox, and the District of Columbia.
 
Prior to being named FMS commissioner, Lebryk was deputy commissioner, beginning in January 2008. As deputy commissioner, he carried out chief operating officer responsibilities including leadership, policy direction and guidance over all areas of FMS’ mission.
 
Lebryk is married to Susie Lebryk-Chao, a high school English teacher.
 
Commissioner David A. Lebryk (Financial Management Service)
 
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