Legal Definitions - Financial Management Service

The Financial Management Service (FMS) is an agency within the U.S. Department of the Treasury responsible for managing the federal government's money operations. Its primary functions include developing and overseeing the systems used by various federal agencies to collect and pay out funds, gathering and publishing comprehensive financial data about government activities, and pursuing the collection of debts owed to the U.S. government.

Here are some examples illustrating the role of the Financial Management Service:

• Imagine a scenario where millions of Americans are due their annual tax refunds. The FMS plays a crucial role in ensuring that the Internal Revenue Service (IRS) has the robust systems in place to efficiently and accurately process and disburse these payments to taxpayers across the country. This demonstrates its responsibility for assisting other agencies in disbursing funds.

• Consider a large shipping company importing goods into the United States, which must pay customs duties and fees to the government. The FMS is involved in establishing and maintaining the secure electronic systems through which agencies like U.S. Customs and Border Protection can effectively collect these substantial revenues. This highlights its function in assisting agencies in collecting funds.

• If an individual fails to pay a significant fine imposed by a federal court for a regulatory violation, the FMS is involved in the process of recovering that overdue amount. It manages programs and systems designed to track and collect such delinquent debts on behalf of the federal government. This illustrates its role in collecting delinquent debts.