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federal reserve

Bank

DALLAS, TEXAS

of

Dallas

75222

Circular No. 83-120
October 11, 1983

ANNOUNCEMENT
LARGE FEDERAL VENDOR PAYMENTS
TO ALL DEPOSITORY INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The U.S. Treasury Department has announced that its Bureau of
Government Financial Operations (BGFO) will require most federal agencies to
make vendor payments of $25,000 or greater through the Treasury Financial
Communications System (TFCS) beginning October 1, 1983. This system is the
Treasury's link to the Federal Reserve Communications System. The BGFO,
responsible for disbursing most federal payments and managing federal monies,
estim ates civilian agencies alone account for the disbursement of over $20
billion of such large dollar vendor payments annually. The move to electronic
funds transfer is expected to improve both the timing and control of federal
vendor payments.
Companies will realize several benefits from the use of the TFCS to
make vendor payments.
First, since the TFCS has the capability to make
payment on exact due date, vendors will receive payments in a more timely
manner.
Second, payments can be made directly to vendors' accounts at
financial institutions, eliminating the uncertainty and time associated with postal
delivery and check processing.
Third, since vendors will be confident that
payments will be made in a more timely manner, they will be in a better position
to forecast cash flows. Other information such as the invoice and contract
number needed to identify payments will continue to be furnished in the actual
payment message provided to the vendors' financial institutions.
Federal agencies will be required to obtain key financial institution
data from vendors to make payments by TFCS. Financial institutions that have
access to the Federal Reserve Communications System will be asked to supply
the following information to vendors:
-

Financial institution 9-digit ABA routing number

-

Telegraphic abbreviation of financial institution

-

Account number to which funds should be credited

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.

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Financial institutions th at receive funds through a correspondent bank
will be asked to supply the above and the following information to vendors:
-

Name of the correspondent financial institution through which the
institution receives messages

-

Address of correspondent financial institution

-

Correspondent financial institution 9-digit ABA routing number

Additional information about this program may be obtained by
contacting the Timely Bill Payment Project Team, Treasury Department, Bureau
of Government Financial Operations, Treasury Annex #1, PB 704, Washington,
D.C., 20226. The telephone number is (202) 634-5770.
Additional copies of this circular will be furnished upon request to
the Public Affairs Department, Extension 6289.
Sincerely yours,

William H. Wallace
First Vice President