NCJ Number
73837
Date Published
1980
Length
36 pages
Annotation
This General Accounting Office report discusses how the use of electronic funds transfer (EFT) technology in Government can help reduce interest costs and improve the forecasting of cash flows.
Abstract
The Office of Management and Budget, the Department of the Treasury, and the President's Reorganization Task Force on Cash Management expect the increased use of EFT in the Federal Government to save $350 million in interest costs between 1980 and 1984. Because it eliminates the time normally required for mailing, cashing, and clearing checks, EFT accelerates the flow of funds and gives the Treasury opportunities to reduce its borrowing expenses and make more reliable forecasts of future cash flow. However, the Treasury cannot always take advantage of these opportunities because of operational factors and economic constraints. The Treasury can better realize forecasting benefits by requesting agencies to provide earlier notice when large receipts and payments will be made electronically, and it is exploring ways to do this. Tables, footnotes, graphs, and a list of abbreviations are provided. The Treasury's debt management strategy and agency comments are appended. (Author abstract modified)