FINANCIAL ADMINISTRATION MEMORANDUM NO 2008-16
September 12, 2008
FINANCIAL ADMINISTRATION MEMORANDUM NO. 2008-016 (II.J.)
To: Bureau Assistant Directors, Administration
Director, National Business Center
Bureau Finance Officers
Director, Office of Acquisition and Property Management
From: Michael Powers, /s/
Associate Director
Office of Financial Management
Subject: Current Value of Funds Rate
Attached is a copy of the Federal Regisier dated July 17, 2008, Volume 73. No. 138, page 41167,
which contains the revised Current Value of Funds Rate (CVFR) for calendar year 2008. The CVFR
has been revised to 3 percent for the period beginning on July 1, 2008, and ending on December 31,
2008.
The CVFR is required for use in the following financial calculations:
• Assessing interest charges for outstanding debts on claims owed to the Federal Government.
• Determining whether to accept cash discounts by paying early. Prompt Payment rules require
agencies to analyze the total costs and total benefits to the government of accepting a discount
and paying early. The discount conversion formula is available at
http://www.fms.treas.gov/prompt/formulas.html.
• Determining when to pay purchase card invoices when a rebate is offered by the credit card
issuer. Prompt Payment rules require agencies to analyze the total costs and benefits to the
government of taking advantage of a credit card issuer's rebate offered for early payment. A
spreadsheet at http://www.fms.treas.gov/prompt/rebate.html automatically calculates the net
savings for credit card invoices if payment is made early versus the Prompi Payment due dale.
The spreadsheet requires input of both the basis points offered by the credil card provider and
the CVFR in effect.
Should you have any questions on this subject, please contact Michael Anthony on (202) 208-6824.
Attachment
Prior Financial Administration
Memorandums on this Subject:
No. 2005-018 (II.J.), December 22, 2005 - Inactive
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