Overview of PAM & Federal Payment Disbursement

SAP Federal Forum

Wednesday, April 9, 2014

Nathan Douglas

Agenda • Treasury payments overview • PAM overview, workflow and payment types • TAS/BETC requirements • Agency / Vendor Testing • Upcoming 2014 – DNP flow • Meeting the October 2014 mandate • Website, Training opportunities • Contact info

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Social Security (OASDI and Supplemental) Veteran’s Benefits Black Lung Benefits Supplemental Nutrition* Military Healthcare* Medicare *

Citizen Benefits Vendor Payments Agency Expenditures Grant Payments International Payments

Government Operations

Federal salaries & retirement Forward-deployed military*

Salary Payments Tax Refunds Stimulus Payments Unemployment Trust Fund

National Financial Operations

The total value of Federal payments equaled 15%

of the Gross Domestic Product in FY2012

Types of Payments Processed

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Other Benefits, 195.9

Tax Refunds, 122.5

Salary Payments, 48.7

Vendor Payments, 21.0 Miscellaneous Payments, 31.3

Social Security, 683.3

FEDERAL PAYMENTS, FY2012 (in Millions)

1.1 Billion Payments $2.4 Trillion

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Background of PAM

• PAM project began in 2008 to standardize and automate the issuance and distribution of approximately 1.1 billion annual federal payments.

• PAM replaces 30+ legacy mainframe-based software applications that are used by Fiscal Service resulting in substantial cost savings and processing improvements.

• PAM and all payment disbursements are processed at the Kansas City Payments Center of Excellence.

Delivering quality products and

services in a timely manner.

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Background of PAM

• Standard Payment Request (SPR) Format – by October 1, 2014, over 200 FPA’s will utilize the singular input format

• Standard Agency Notification Reports • Standard Check Face • Allows for TAS/BETC information to be added to

payments at time of issuance (G Record) • Updates to ACH processing – CTX and IAT payments • Enhances Transparency of Government reporting

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January 2014

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PAM SPR – File Structure

• ACH/Check Sample File Structure: Multiple schedules • H = File Header Record

– 01 = ACH Schedule Header Record • 02 = ACH Payment Data Record (Required, 1st Record)

– 03 = ACH Addendum Record (None-One, Optional, Any Order)* – G = TAS/BETC Appropriation Record (None-100, Optional, Any Order) – P = PIR Record (None-100, Optional, Any Order)

– T = ACH Schedule Trailer Record – 11 = Check Schedule Header Record

• 12 = Check Payment Data Record (Required, 1st Record) – 13 = Check Stub Record (One per Check, Optional, Any Order) – G = TAS/BETC Appropriation Record (None-100, Optional, Any Order) – P = PIR Record (None-100, Optional, Any Order)

– T = Check Schedule Trailer Record • E = File Trailer Record *ACH File for CTX would use the 04 ACH Addendum Record (One to 999 addenda)

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PAM SPR – TAS/BETC

• PAM standard format includes “optional” TAS/BETC record so that payment appropriation is done at time of initiation.

• TAS/BETC record automatically sent to GWA/CARS from PAM system. *Applied once ALC is a CARS Reporter

• PAM cannot validate if TAS/BETC used is valid – just a pass-thru.

• SPS certification should be completed using same TAS/BETC appropriation totals at schedule level.

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PAM SPR Format – TAS/BETC

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PAM SPR - CTX Payments

• CTX Payments are ACH payments with additional information with up to 9,999 addenda records per payment (80 characters per addenda)

• Ability to make one vendor payment for multiple invoices • Creates efficiencies for both the agency and the vendor with straight-

through processing and updating of accounting systems • Invoice detail flows with the payment through the ACH system • Structures the remittance information to industry EDI standards • Agency is responsible for ensuring 820 EDI format meets ANSI specs • Must use PAM SPR 5.0.0 that allows for 04 CTX record • If TOP offset occurs, Treasury will include addenda records to indicate

amount deducted from payment and a phone number to contact for more info

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CTX Payments through the SPR

SPR H - File Header 01 - ACH Schedule Header 02 - ACH Payment Data 04 - ACH Addendum(s) G – TAS/BETC 02 - ACH Payment Data 04 - ACH Addendum(s) G – TAS/BETC T - ACH Schedule Trailer E - File Trailer

ACH Addendum Record Record Code Payment ID Addenda Info 80 bytes 80 bytes …. 80 bytes [up to 10]

ACH Addendum Record Record Code Payment ID Addenda Info 80 bytes 80 bytes …. 80 bytes [up to 10]

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CTX Payments Overview-Business Flow

Federal Agency

Payment File (with 820 addendum)

Treasury - PAM

Payment and addendum information

ACH Network

Federal Reserve Bank Vendor's Financial Institution

Remittance Information

Vendor

Quotes Invoices

RFQs Purchase Orders

Payment and addendum information

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PAM Agency Testing

• Phased Approach for PAM SPR Conversion Testing: 1. Connectivity and Security Access Testing 2. Manual review of agency test files for format and

content 3. PAM validation and notification testing 4. End to End testing (as appropriate) 5. TAS / BETC testing in SPR

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Treasury 2014 - Do Not Pay

• Sign up for DNP (if you are currently not onboard) – DNP Relationship Managers will be contacting agencies to discuss the necessary changes

required to view PAM matches in the DNP Portal – Work with DNP Relationship Managers to assess need for optional DNP record – Especially important for agencies as they convert to the PAM format

• May be beneficial to accelerate the PAM conversion effort • Verify accurate Payee Names and SSN/TIN used when converting to PAM SPR - see

chart below:

• Emphasis on clean and accurate data in these fields – key fields for matching against Death Master File and other databases

Field Name

Party Name

Payee Identifier

Party Name Secondary

Payee Identifier Secondary

Treasury 2014 - Do Not Pay

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Meeting the Oct. 2014 mandate

• What is left to do for your agency? Connectivity and Security Access Testing SAP software patch installed Testing the PAM SPR file with Treasury TAS / BETC research – 224 report, SAM file, etc SPS Training – screens changed for TAS/BETC input CARS Training – IPAC, Collections and Payments (to be a full

reporter all payments must be live on the same month) SPS Go Live date scheduled CARS Go Live date scheduled

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PAM Website -File Formats

• PAM SPR Formats and CTX Reference Guides – http://fms.treas.gov/pam/formats.html – Version 4.2.1 dated 3/1/12 – Version 5.0.0 dated 8/9/12 (includes CTX functionality) – PAM SPR CTX Supplemental Document for CTX EDI 820 - Input File

• General Formatting and Validation Rules • CTX File Layout Example for EDI 820 versions 3040 and 3050 • Example File Layout for a Payment with Interest Penalty • Example of an EDI X12 fully formatted 820 addenda

– CTX Reference Document • CTX processing in Legacy versus PAM • Validation Rules

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PAM Website

• http://fms.treas.gov/pam/index.html • Subscribe to the website for email updates related to:

PAM Project Updates - PAM File Formats (Standard Payment Request (SPR) Format, C:D File

Format, CTX Format) Webinars and TAS/BETC Preparedness & Technical Sessions - Dates &

Times 2014 Formats can be downloaded from the website TAS/BETC information

- Related websites - Frequently Asked Questions

Do I have to use the PAM File Format? Who will be my RFC Contact after my agencies payments are processed by

PAM?

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2014 PAM / CTX Training Sessions

• PAM SPR Technical Training: Detailed walk-through of PAM SPR fields, PAM Standards, etc

• April 10th – live session in DC, Liberty Center Building • May 8th – webinar from 1:00 – 2:00 PM CT • June 5th – webinar from 1:00 – 2:00 PK CT

• PAM CTX (SPR) Format Webinars: CTX processing in PAM, 820 EDI format overview, etc

• April 15th: 1:00 pm – 2:30 pm CST

• Register via website:

– http://fms.treas.gov/pam/webinar.html • Additional dates TBD

SPS Functional Webinars: • April 16th 1:00pm – 2:00pm CT • April 30th 9:00am – 10:00am CT • May 14th 1:00pm – 2:00pm CT • May 21st 9am – 10:00am CT • June 4th 1:00pm – 2:00pm CT • June 18th 9:00am – 10:00am CT • July – September: Weekly training

SPS Technical Webinar: • April 2nd 1:00pm – 2:00pm CT • May 7th 9:00am – 10am CT

Register via website: http://fms.treas.gov/sps/webinars

2014 SPS Webinar Sessions

Two types of SPS Webinars available for 2014: • Functional - Overview of SPS screen changes related to becoming CARS Reporter to

report TAS/BETC during certification or at time of Type A payment submission • Technical – Detailed walkthrough of 440 file format for summary certifications and

bulk payments, including TAS/BETC information for each payment.

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PAM Contact Information

• RFC Contacts – Kansas City Financial Center: 816-414-2100

• PM Call Center: (855) 868-0151 • PAM Program Management Office Contacts

– Nathan Douglas, PAM Program Management Analyst • 816-414-2334 • Nathan.Douglas@fiscal.treasury.gov

– Lori Meyer, PAM Program Management Analyst • (816) 414-2337 • Lori.Meyer@fiscal.treasury.gov

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Any Questions?