Collections and Cash Management Modernization (CCMM)
Common Questions for Federal Agencies
What is CCMM?
The Collections and Cash Management Modernization initiative is a multi-year effort to simplify and modernize FMS's and Treasury's collections and cash management programs.
CCMM involves a re-architecting of processes that have built up over decades. It impacts over two dozen programs that process collections for hundreds of Federal Program Agency (FPA) cash flows (taxes, customs duties, coin sales, etc.), conduct over 400 million transactions a year, and collect over $3.1 trillion a year.
What are its objectives?
CCMM has three main objectives:
What are the problems that FMS faces in the current state?
FMS faces several problems with the current architecture. While FMS uses highly effective collection processes, these processes could be more efficient. In addition, the current architecture could cause FMS to become dependent upon particular agent banks. (FMS uses financial institutions that it designates as agents to provide services to FPAs.) Finally, the complexity of the collections architecture might render it unable to adapt to changing FPA needs.
What are the problems that FPAs face in the current state?
Agencies face three main problems with the current architecture. First, FPAs have to obtain their detailed transaction reports from FMS through a variety of systems, formats, and media, rather than through a central, standardized source. It is costly for FPAs to consolidate this information and maintain these connections.
Second, the transaction information that FPAs receive is not necessarily reconciled with summary deposit reports that FPAs receive from FMS's cash concentration system (CA$HLINK II).
Third, when FMS desires to change agents, FPAs need to make changes to their systems to receive reports from the new agents, which can be time-consuming and costly.
How will FMS address these problems?
The root cause of the problems described above is too many programs with redundant functionality. To avoid this, FMS is looking to make greater use of standardized, shared services. For instance, instead of having multiple programs perform Automated Clearing House (ACH) debits (each with its own staff, business rules, and systems), FMS will implement one program for this function, which can be invoked by other programs as needed.
FMS will re-align and consolidate the number of systems it uses, so that there are fewer programs for the channels it uses to receive transactions (over-the-counter, mail, Internet, etc.) from FPAs and the public and for the mechanisms it uses to settle transactions.
FMS also will consolidate and standardize transaction and deposit reporting with a single system, the Transaction Reporting System (TRS). TRS will provide a single touch point for all reporting details. It will use standard connectivity options and make reporting information available through a standard, published XML schema.
FMS ultimately will have fewer programs performing fewer functions. Please note that FMS is not eliminating functionality (for the most part); rather, FMS is eliminating its redundant implementation.
How will the changes solve current problems for FMS?
The changes address the FMS problems described above. The changes will save money while addressing the risk that FMS will be unable to meet FPA needs going forward. By eliminating unnecessary redundancy, FMS will become more efficient. In addition, by breaking the direct and proprietary reporting connections between agent banks and FPAs, the changes will reduce the potential for FMS to be "locked-in" to a particular agent. Finally, because FMS resources won't be tied up maintaining an overly complex set of programs, FMS will be better positioned to offer new services in the future.
How will the changes solve current problems for FPAs?
CCMM will benefit FPAs in several ways, with the primary benefits arising out of the consolidation and reconciliation of transaction reporting and deposit reporting that agencies will receive through TRS.
By providing reporting information through a single touch point rather than through many, TRS will reduce the costs that FPAs incur in consolidating this information and supporting multiple connections to Treasury systems. By reconciling this data in advance for FPAs, TRS also will simplify FPAs' accounting responsibilities. FPAs also will benefit by not having to update their systems every time FMS changes agents; TRS will serve as a buffer between FPAs and agents, so that TRS and not FPAs absorb most of the system changes caused by new agents.
What does a FPA need to do to prepare for the changes?
The biggest changes for FPAs will be related to TRS. FPAs will need to change the way they receive transaction reporting (from the agents that run our many collection programs) and deposit reporting (from CA$HLINK II) to instead receive that information from TRS. For example, if an FPA receives nightly files from a lockbox bank and another file from Pay.gov, that information will no longer be coming directly from those collection programs, but rather from TRS. FPAs will need to make changes to their system(s) to accept this information and update their receivables from TRS. FPAs also may need to change some of their collection processes, depending on their current collection mix, as legacy systems are decommissioned or consolidated. For example, if the FPA is using the Pre-Authorized Debit (PAD) program, it will need to change to Pay.gov.
What is the scope of CCMM?
CCMM is focused FMS's and Treasury’s collections and cash management programs. CCMM does not address money coming in from the recovery of delinquent debts, intragovernmental funds transfers, or money disbursed by the government. It also does not include FMS’s larger accounting efforts, though it supports those efforts.
How does this tie into other FMS initiatives that impact FPAs?
FMS has several initiatives that will impact FPAs, especially changes in its Governmentwide Accounting (GWA) area. CCMM fits with these GWA changes. The same system that will provide information to agencies-TRS-also will provide information to GWA. FMS has established several groups to ensure that the initiatives are rolled out in a coordinated fashion. CCMM will ensure that information is classified at the time of transaction and is reported the "GWA way."
When is this going to be completed?
FMS currently estimates that CCMM will be completed by 2012. However, this does not mean that FPAs need to be fully switched to TRS by then. By 2012, TRS will have fully assumed the deposit reporting that currently is made available to FPAs through CA$HLINK II and will have the capability of supporting transaction reporting needs as well. It is understood that FPAs will need time to switch to TRS for transaction reporting. For a time, then, concurrent transaction reporting-using the legacy transaction reporting done today through multiple agents and the new transaction reporting provided through TRS-will be possible. At this point, FMS does not have a deadline by which a FPA needs to fully convert to TRS; however, FPAs should begin to prepare for these upcoming changes in their future budgets.
What can FPAs do to stay up-to-date on CCMM or even influence some of its changes?
FPAs can attend CCMM sessions presented at their Regional Financial Center Customer Advisory Board (CAB) meetings. They can also sign up to receive e-mail updates from CCMM, which will alert them to upcoming forums, webinars and workgroup sessions.
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