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FGMSD-78-32 1 (1978-04-18)

handle is hein.gao/gaobaaxbu0001 and id is 1 raw text is: 

DoccuRRi aruas


05679 - (811060721

rstudy of Selected Aspects of FUHA's Systes for Depositing
County Of ice Loin Collictions). FUlSD-78-34; B-114873. april
18, 1978. 3 pp.

Report to Gordon Cavanaught Administrator, Parseas loan
Administration; by D. L. Scantlebury. lirector Fineancial and
Gencral Manaqement Studies Div.

Contact: Financial and General flanageant Studies r t .
Organization Concerned: Department of Agriculture.

         A study of the Fairmersle   kMosntl'~iaL1JMt#
system for depositinq county ofice loan collections iatbe
Federal ReservQ Bank concentrated as the tie requied to make
deposits aria the additioLal interest cast ubich the Tr4tsitj may
incur because of delayed deprdit. i-uting fiscal year 1977#
county office loan collections tztaled o',jr Z2.4 bi.lioa-anl
averaged almost $9.8 tillioL a day. An average of 8 days, was
required to deposit loa. collections tc the TreavErys account
at the St. Louis Rasexle Bank. Nail time between county offices
and the National Finance Office aver&144 ', days, and Naticial
Financq Office processing time evirage4 5 days. If the daily
county office loan colletions ha0 bean decsaited more guickly.
Governsnt interest costs could have teen reduced by about
$642,000 for eacb Jay that the deposits were accvler&ted. after
the study was comp.eted, ;    hired additional personnal to
process collections at the National Otfice. Because mail delays
are inherent in the current system and varkloada are e*pected to
increase, FmHA jhould examine alternative uas of depositing
county office loan collections. Several systems could decrease
the time required to deposit county office collections. use of
local bank accounts, the Treasury tax and loan system, lock
boxes, and electronic funds transfer tschniquem. A study,
includinq a cost-beefit evaluation, should be made of each
system. (RRS)

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