03-27351. Financial Current Value of Funds Rate

AGENCY:

Financial Management Service, Fiscal Service, Treasury.

ACTION:

Notice.

SUMMARY:

This notice announces the interest rate for use in Federal debt collection and for discount and rebate evaluation. Pursuant to Section 11 of the Debt Collection Act of 1982, as amended, 31 U.S.C. 3717, the Secretary of the Treasury is responsible for computing and publishing the percentage rate to be used in assessing interest charges for outstanding debts on claims owed the U.S. Government.

Treasury's Cash Management requirements (I TFM 6-8000) prescribe use of this rate by agencies as a comparison point in evaluating the cost-effectiveness of cash discounts. In addition, 5 CFR 1315.8 of the Prompt Payment rule on “Rebates” requires that this rate be used in determining whether agencies should pay purchase card invoices when the card issuer offers rebates.

Notice is hereby given that the applicable rate is 1 percent for calendar year 2004.

DATES:

The rate will be in effect for the period beginning on January 1, 2004 and ending on December 31, 2004.

FOR FURTHER INFORMATION CONTACT:

Inquires should be directed to the Risk Management Division, Financial Management Service, Department of the Treasury, 401 14th Street, SW., Washington, DC 20227 (Telephone: [phone]).

SUPPLEMENTARY INFORMATION:

The rate reflects the current value of funds to the Treasury for use in connection with Federal Cash Management systems and is based on investment rates set for purposes of Public Law 95-147, 91 Stat. 1227. The rate is computed each year by averaging Treasury Tax and Loan (TT&L) account investment rates for the 12-month period ending every September 30, rounded to the nearest whole percentage, for applicability effective January 1. The 1 percent rate that becomes effective January 1, 2004 reflects the average investment rates for the 12-month period that began October 1, 2002 and ended September 30, 2003. The rate is subject to quarterly revisions if the annual average, on a 12-month moving average basis, changes by 2 percent.

Bettsy H. Lane,

Assistant Commissioner, Federal Finance.