Notice of Rate To Be Used for Federal Debt Collection, and Discount and Rebate Evaluation
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Abstract
The Secretary of the Treasury is responsible for computing and publishing the percentage rate that is used in assessing interest charges for outstanding debts owed to the Government (The Debt Collection Act of 1982, as amended). This rate is also used by agencies as a comparison point in evaluating the cost-effectiveness of a cash discount. In addition, this rate is used in determining when agencies should pay purchase card invoices when the card issuer offers a rebate. The percentage rate generally is calculated on an annual, calendar year basis; however, quarterly adjustments are made to the rate if the annual average of the method used to calculate it results in a change of 2 percent or more. Notice is hereby given that such an adjustment is being implemented, and the applicable rate for April through December 2023 is 3.00 percent.
Full Text
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<title>Federal Register, Volume 88 Issue 98 (Monday, May 22, 2023)</title>
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[Federal Register Volume 88, Number 98 (Monday, May 22, 2023)]
[Notices]
[Pages 32820-32821]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-10814]
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DEPARTMENT OF THE TREASURY
Fiscal Service
Notice of Rate To Be Used for Federal Debt Collection, and
Discount and Rebate Evaluation
AGENCY: Bureau of the Fiscal Service, Fiscal Service, Treasury.
ACTION: Notice of rate to be used for Federal debt collection, and
discount and rebate evaluation.
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SUMMARY: The Secretary of the Treasury is responsible for computing and
publishing the percentage rate that is used in assessing interest
charges for outstanding debts owed to the Government (The Debt
Collection Act of 1982, as amended). This rate is also used by agencies
as a comparison point in evaluating the cost-effectiveness of a cash
discount. In addition, this rate is used in determining when agencies
should pay purchase card invoices when the card issuer offers a rebate.
The percentage rate generally is calculated on an annual, calendar year
basis; however, quarterly adjustments are made to the rate if the
annual average of the method used to calculate it results in a change
of 2 percent or more. Notice is hereby given that such an adjustment is
being implemented, and the applicable rate for April through December
2023 is 3.00 percent.
DATES: April 1, 2023, through December 31, 2023.
[[Page 32821]]
FOR FURTHER INFORMATION CONTACT: Department of the Treasury, Bureau of
the Fiscal Service, Disbursing and Debt Management, E-Commerce Division
(LC-RM 349B), 3201 Pennsy Drive, Building E, Landover, MD 20785
(Telephone: 202-874-9428).
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 (October 28, 1977). The Treasury Office of Debt
Management provides the annual Interest Rate Factors used in
determining the Current Value of Funds Rate, which are based on weekly
average of the Effective Federal Funds Rate, less 25 basis points for
the 12-month period ending every September 30. The Current Value of
Funds Rate is rounded to the nearest whole percentage and becomes
effective each January 1.
Quarterly revisions are made if the annual average, on a moving
basis, changes by 2 percentage points or more. The previous notice of
rate to be used for Federal debt collection, and discount and rebate
evaluation, dated November 21, 2022, announced the rate of 1.00 percent
for calendar year 2023. However, with the quarter ending March 30,
2023, the 12-month moving average investment rate increased by 2
percent. Therefore, Treasury is revising the Current Value of Funds
Rate for the remainder of calendar year 2023.
The percentage rate to be applied during the period April 1, 2023,
through December 31, 2023, is 3.00 percent.
Authority: 31 U.S.C. 3717.
Linda Claire Chero,
Assistant Commissioner, Disbursing and Debt Management and Chief
Disbursing Officer.
[FR Doc. 2023-10814 Filed 5-19-23; 8:45 am]
BILLING CODE 4810-AS-P
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</html>This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.