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Our History in Milestones
Time Line of Key Events and Initiatives


The Federal Reserve Cash Subcommittee charters a Special Project Office in
Culpeper, Virginia, charged to research and implement currency processing
systems. In the mid-70’s the Project Office name changes to Currency Automation
Program Office (CAPO).
Did you know?
The Culpeper facility, dedicated in 1969, was a department of the Federal
Reserve Bank (Fed) of Richmond. Built underground due to the threat of
nuclear attack, it served as a relocation site for key officials of the Board of
Governors and the Richmond Fed. Culpeper housed the Communications and
Records Center, the core of the Fed’s nation-wide communications network
and a formidable vault. The facility was closed in 1994.


The first generation high-speed currency processor, Currency Verification Counter
and Sorter (CVCS) machine, is installed in the Atlanta Fed. The Project Office is
responsible for maintaining the operating environment for CVCS System-wide.


In the 80’s, the Project Office begins development efforts for the second generation
automated currency-handling systems.


To combat advanced counterfeits, CAPO introduces the first sophisticated
counterfeit sensor, the triple detector.


First production ISS 3000 system, second generation high-speed machine, which
later becomes BPS 3000, is delivered to the New York Fed’s East Rutherford
Operations Center (EROC). The machine is manufactured by Giesecke and
Devrient Systems (G & D) of Reston, Virginia, and averages more than 73,000 notes
per hour. Through 1997, the Fed installs 133 ISS 3000 processors in its 37 cash
operations nation-wide. CAPO's name changes to Currency Technology Office


CTO introduces the Universal Magnetic Authentication Detector (UMAD), to replace
the triple detector.
Did you know?
By 1993, the Treasury has added a number of banknote design changes to all
denominations except $1 and $2 dollar note. The changes, such as an
embedded security thread and micro-printing, were aimed to protect against
emerging counterfeiting threats. The CTO’s sophisticated currency
authentication sensors introduced in the 90’s paralleled the Treasury’s efforts
to introduce new counterfeit deterrence features and allowed the Fed to
support very strong counterfeit detection and deterrence capabilities.


Due to the closure of the Culpeper facility, 24 CTO employees relocate from
Culpeper to the Richmond Fed, and the CTO becomes a part of the Cash Fiscal
Product Office, hosted by the Philadelphia Fed. In the same year, CTO implements
the Reconciliation Station (RS) to improve reject handling, and the Universal
Currency Authentication Sensor (UCAS), the first high level authentication system

Our History in Milestones
Time Line of Key Events and Initiatives
designed for the ISS 3000 Currency Processor and the RS.


CTO begins the first set of upgrades that enhance ISS 3000s to BPS 3000s.
Did you know?
In 1996, the Fed began issuing the New Currency Design (NCD) $100 notes,
which was the first major redesign in nearly 70 years. CTO’s sensor upgrades
provided the capability to recognize both new and old design currency.


CTO introduces the BPS 3000 Configurator Software, which allows modification of
certain BPS 3000 software parameters and control of currency sorting independent
of the vendor (G&D). Through 2003, CTO makes a series of improvements to the
BPS 3000, including the release of Open Access in 1998 for data transfers, and $1
note alternate processing software in 1999 for improved efficiencies.
Did you know?
By bringing ownership of parameter changes in-house, the Configurator
yielded cost savings for the Fed and allowed more consistent fitness settings
across Cash offices.


The Federal Reserve Financial Services Policy Committee (FSPC) opens up bids for
several of the Fed’s product offices. The 12th District, Federal Reserve Bank of San
Francisco, welcomes the opportunity to present its case and submits a written
proposal to host the Federal Reserve’s national Cash Product Office (CPO).


In February, the FSPC selects the 12th District to host the CPO. The CPO is to be
administered by a staff of twelve, nine of whom are based in Los Angeles, with
others in San Francisco and Seattle. In its bid, the 12th District proposes to make it a
priority to integrate CTO activities into CPO initiatives.
The new product office begins a number of key strategic Cash initiatives:
 Develops the Long-Term Cash initiative, which would later become the
Recirculation Policy;
 Establishes the Strategic Inventory Location (SIL) program;
 Manages the nation-wide coin shortage and establishes a relationship with the
US Mint to standardize distribution of coin.
CPO establishes the Customer Advisory Council (CAC), representing the Fed’s
largest commercial bank customers for Cash services nation-wide. The council
helps establish a joint working relationship between the Fed and depository
institutions and serves as a forum for the ongoing exchange of ideas, discussion of
strategic direction, issues, actions and initiatives, and sharing of information. The
CAC becomes instrumental in developing the Recirculation Policy and, later, the
Mis-faced Notes Policy.
After years of district-specific Cash processing software, the Salt Lake City Fed is
the first to convert to the Standard Cash Automation (SCA) system. CPO begins
working with a Cleveland Fed-based automation group to introduce SCA to the rest

Our History in Milestones
Time Line of Key Events and Initiatives
of the system. The automation group, housed in the Cleveland Fed’s Cash function,
was responsible for SCA user testing, as well as testing and requirements for what
became FedLine Web. SCA migration takes place over a number of years and is
completed in 2004. The automation group is rebranded to the Cash Central
Business Administration Function (CBAF) and becomes part of CPO, also supporting
centrally hosted applications, including FedLine Web.
CTO introduces the Optical Currency Inspection Sensor (OCIS), capable of
determining the fitness level of currency notes. Thanks to this sensor, the Fed was
able to reduce the cost of printing new notes used to replace prematurely
destroyed fit notes.
Did you know?
The introduction of OCIS facilitated the publication of the Federal Reserve
Fitness Guidelines, fitness sampling, vendor quality calibration, and more
accurate currency inventory planning in support of new currency orders from
the BEP. The sensor, in part, enabled the implementation of the Recirculation
Policy in 2006.


CTO introduces the E-Material Authentication Sensor (EMAS), capable of
authenticating US currency notes.
Cash CBAF rolls-out the National Cash Data Warehouse (NCDW), the Cash
operations’ core management information system, which allows Cash offices direct
access to transactions data and machine data outside of the confines of the SCA and
BPS 3000 reports, respectively.
Did you know?
The first application on the data warehouse was the Difference Analysis
System (DAS), but it was limited to only a few districts that had transferred
data to NCDW. The first System-wide application to roll out in the warehouse
was the cross-shipping reporting and billing program, which went into
production in 2006 / 2007.


The West Coast office of the Cash CBAF opens for business in the San Francisco
Fed, after System leadership recognizes that the Cash automation environment has
grown increasingly complex. The San Francisco team assumes project management
responsibility for web-based customer applications, such as FedLine Web. The
Cash CBAF continues to manage applications hosted locally by Cash offices.
The depot program begins in late 2004, providing third-party collection points for
currency deposits and distribution points for currency orders between depository
institutions and Reserve Banks.


CPO coordinates national response to Hurricane Katrina to restore cash services to
impacted areas and establishes the Stem Run program. CPO also establishes a
cleaning facility for coin contaminated by Katrina’s flood waters.
CTO begins a multi-year initiative to implement BPS 3000 upgrades. By 2010, all

Our History in Milestones
Time Line of Key Events and Initiatives
BPS 3000 systems are upgraded with significant hardware and software
improvements intended to extend the BPS 3000’s lifetime beyond 2017.


CPO implements the Custodial Inventory Program, a component of the
Recirculation Policy, aimed to reduce the overuse of cash services, thereby
reducing societal costs and further confirming the Fed’s wholesale role in the cash
supply chain.
CPO implements the National Unprocessed Currency Management (NUCM)
framework to manage unprocessed currency production across districts to improve
overall processing efficiency for the Cash business.


Cash CBAF in Cleveland is operating with nine employees and supports seven
applications. Following a decision to move to a new information technology
platform, Cash CBAF develops the Future Cash Automation Project (FCAP), which
later evolves into the CashForward program, one of the largest technical efforts in
the System to modernize the Fed’s cash infrastructure and standardize its operating
practices. Cash CBAF is renamed to National Cash Automation (NCA). The National
Business Experts (NBEs) group is formed and becomes part of NCA in support of
CPO completes the implementation of the Recirculation Policy with the introduction
of a fee to depository institutions on cross-shipped currency of $10s and $20s above
a certain exemption.


CPO initiates the development of an ongoing coordinated market intelligence
program to support Cash Services.
NCA completes requirements for the FCAP initiative and begins development of
the replacement solution for the current Cash automation system by launching the
Currency and Coin Handling Environment (CACHE) Program.


CPO implements the National Coin Inventory Management (NCIM), a coin
inventory management program that provides a consistent methodology and
approach for managing coin at both the local and national levels, using a coin
demand forecasting tool.


NCA initiates the CashForward Program, a new multi-year multi-phase application
development strategy for developing and implementing a centrally-hosted suite of
applications. The program continues until present time.
CTO begins a multi-year initiative to replace the UCAS sensor with the second
generation sensor, UCAS2, which provides enhanced authentication capabilities.


CPO begins the Long-term Strategic Framework Program, a multi-year program to
assess the forces influencing the evolution of the cash supply chain and their
implications for the Fed's ability to continue to fulfill its mission in cash services in
the future.

Our History in Milestones
Time Line of Key Events and Initiatives
By year-end 2011, there are 10 contracted Cash depots in the Federal Reserve
CTO renegotiates the maintenance terms for the BPS 3000 to extend the term to
2022. The new terms ensure a planned transition to the next generation of
processing equipment.


CTO initiates a multi-year program to seek and implement improvements and
optimization of the high-speed currency processing environment post-BPS 3000
upgrade and prepare for the transition to the third generation of currency
processing equipment.
CPO charters the Armored Carrier Forum (ACF), representing the largest national
and regional armored carrier operators in the US, to promote strategic and
operational dialogue among the Fed and key members of the armored carrier
industry, broaden perspectives and enhance the efficiency and effectiveness of the
cash supply chain.
CPO also creates the Cash Industry Partners Program to build collaboration among
the Cash Advisory Group (CAG), the Customer Advisory Council (CAC), and the
Armored Carrier Forum (ACF), and for all three groups to partner to improve the
cash supply chain. The collaboration between these groups initiates a number of
key projects to improve the efficiency and resilience of the cash supply chain.


CPO concludes the LTSF program and initiates “Adapting Operations to an
Evolving Environment,” a multi-year program to test and implement strategies to
improve the Reserve Banks’ capabilities to respond to a changing business
environment in a flexible and cost-effective manner, as well as approaches to
improving the efficiency of the cash supply chain overall.
NCA deploys the Systems Integration Manager (SIM), a centralized interface utility
solution aimed to facilitate the implementation and support for subsequent
CashForward application development projects, including the Standard Cash
Application (SCA) replacement system.
Today, the CPO employs about 160 professionals (not including contractors or
interns) in three Federal Reserve Districts.