3.2 Finance Flashcards
Major Finance Functions
- Entitlement FMR Volumes 7, 8, 9, and 10)
- Payments (FMR Volume 5, Chapter 9: Disbursements)
- Collections (FMR Volume 5, Chapter 8)
- Control of Public Funds (FMR Volume 5, Chapter 5)
General Financial Management Information, Systems and Requirements
FMR Volumes 1
FMR Volumes 1
General Financial Management Information, Systems and Requirements
Contract Payment Policy and Procedures
FMR Volume 10
FMR Volume 10
Contract Payment Policy and Procedures
Reporting Policy and Procedures
FMR Volume 6A
FMR Volume 6A
Reporting Policy and Procedures
Travel Policy and Procedures
FMR Volume 9
FMR Volume 9
Travel Policy and Procedures
Disbursing Policy and Procedures
FMR Volume 5
FMR Volume 5
Disbursing Policy and Procedures
Civilian Pay Policy and Procedures
FMR Volume 8
FMR Volume 8
Civilian Pay Policy and Procedures
FMR Volume 7A
Military Pay Policy and Procedures - Active Duty and Reserve Pay
Military Pay Policy and Procedures - Active Duty and Reserve Pay
FMR Volume 7A
Military Pay Policy and Procedures - Retired Pay
FMR Volume 7B
U.S. Code, Title 10
Armed Forces
Laws and Regulations for Armed Forces
U.S. Code, Title 10
Debt Collection Improvement Act of 1996
P.L. 104-134
Prompt Payment act of 1982
31 USC 3901
Prompt Payment Final Rule
(Formerly OMB A-125)
Certifying Officer Legislation
P.L. 104-106, Section 913
Laws covering Money and Finance
U.S. Code, Title 31, Sections
3325
3528
3529
Process of Entitlement
- Entitling
- Authorization
- Voucher Preparation
- Certification
Legally establishing benefits to any person, business, or Government unit meeting eligibility requirements established by law
Entitling
Examples of entitlement benefits
Travel pay
Military pay
Civilian Pay
Contract/Vendor Pay
Examples of entitlement authorization documents
Travel orders
Contracts
Purchase requests
Training orders
It is the Disbursing Officer authority to make payments for the Government.
Disbursement Voucher
A Vendor payment must be supported by the following four (4) documents:
- A contract
- A proper invoice
- Proof of receipt
- Proof of acceptance
Accountable Individuals
Disbursing Officer
Certifying Officer
Departmental Accountable Officials
Employees who by virtue of their employment are responsible for or have custody of Government funds
Accountable Individuals
Military members and civilian personnel who are designated in writing and are not otherwise accountable under applicable laws, who provide source information, data, or service (such as receiving official, cardholder, or an automated information system administrator) to a certifying or disbursing officer in support of the payment process. They are held pecuniarily liable for erroneous payments resulting from information, data or service they negligently provide to a certifying officer
Departmental Accountable Officials
Which law requires Certifying Officers within the Department?
31 USC 3325
Minimum Qualification of a Certifying Officer
- Knowledge of subject matter
- Experience preparing payment voucher
- Knowledge of appropriations & other funds and accounting classifications
- Knowledge of payment process
DD Form 577
Documents Certifying Officers and Defense Accountable Official (DAO) appointments
He has the authority to refuse to make any payment that might be illegal or improper.
The Disbursing Officer (DO)
When in doubt, a __________ or the ____________ may request advance decision from the General Counsel of DoD on the propriety of any prospective payment. FMR Volume 5, Chapter 12
Disbursing Officer; Certifying Official
Improper Payments Elimination and Recovery Act of 2010
P.L. 111-204
P.L. 111-204
Improper Payments Elimination and Recovery Act of 2010
$174,8 Billion
FY 2019 Government-wide Estimate of Improper Payments
IPERIA
Improper Payments Elimination and Recovery Improvement Act of 2012
Which Act requires:
- The “Do Not Pay” working system to include 6 databases, as well as other databases designed by the Director of OMB in consultation with agencies?
- Agencies to review - at a minimum - those six databases as appropriate before issuing any payment or award to help verify eligibility?
IPERIA, as amended by the Bipartisan Budget Act of 2013 and the Federal Improper Act of 2015 (FIPCA)
DoD’s Improper payment rate in FY 2019?
1.2%; small compared to 3.8% Govt-wide
Where can policy and procedures information about the calculation of military be found?
FMR Volume 7A for active duty and reserve, and 7B for retired
Where can policy and procedures information about Special Pay be found?
FMR Volume 7A
Military members are entitled to 30 days of leave per year. Upon separation or retirement, they may sell back up to 60 days of unused leave during their career. That limitation doesn’t apply to members of the reserve components serving on active duty in support of a contingency operation or retired members serving on active duty in support of a contingency operation. Where can this policy be found?
FMR Volume 7A
Military Allowances
- Subsistence (food)
- Quarters (housing)
- Clothing or uniforms
- Personal allowances
What are Military Allotments?
Deductions from members’ pay, and are divided in two categories: Discretionary and non-discretionary
Discretionary Allotments
Members can elect up to six (6) (allotments for dependents, insurance, financial organizations, or other)
Members are not authorized to start allotments for the purchase, lease, or rental of personal property (including car, boat, motorcycles, appliances, household goods, electronics, and other consumer items that are tangible and movable
Non-discretionary Allotments
- Purchase of savings bonds through TreasuryDirect
- Voluntary liquidation of indebtedness to the United States
- Pledges for certain charitable contributions
- Payment of delinquent income or employment taxes
- Child support/Tricare
Members can have unlimited Non-Discretionary Allotments
A disbursement voucher must contain these five (5) elements:
- Voucher heading and date
- Accounting classification to be charged
- Amount to be disbursed
- Method of disbursement
- Payee
Disbursement voucher numbers are assigned ______ starting at the beginning of each fiscal year
Consecutively
This law requires a Disbursing Officer to disburse only in accordance with a voucher certified by authorized Certifying Officer.
31 USC 3325(a)
This law require that Certifying Officers shall always be personally liable for any wrong payment or over obligation of Govt funds resulting from his/her negligent performance of duties.
P.L. 104-106 (NDAA 1996)
Certification =
Accountability + Liability
Agencies estimate level of Improper Payments and report to which organization?
OMB
Any payment that should not have been made or that was made in an incorrect amount under statutory contractual, administrative, or other legally applicable requirements.
Improper Payments
US Code, Public Law covering Improper Payments
31 USC 3321, Improper Payments Elimination and Recovery Act of 2010
P.L. 111-204
Three attributes of a proper payment:
- Right recipient
- Right amount
- Right reason
Executive Order 13520
Reducing Improper Payments by preventing and increasing transparency, improving accountability.
Civilian employees are paid based on
Time and Attendance (T&A) records. Certified by their supervisors
- Overtime pay
- Night pay
- Holiday pay
- Sunday pay
- Annual premium pay
- Annual premium pay of administratively uncontrollable work
- Availability pay for Law enforcement officers
- Environmental pay, and Hazard pay.
Premium Pay
- Family Friendly Leave Act
- DoD’s Federal Leave Sharing Programs
- Excused absence
- Bone Marrow or Organ donor leave
- Leave Without Pay (LWOP)
- Family and Medical Leave Act
Leave Hours
- Certifying T&A
- Compiling the payroll and certifying payments
- Recording the payroll data in the pay accounts
- Developing, testing, and maintaining the supporting computer systems
Internal controls for Civilian Pay
Civilian employees who are underpaid can request what?
A special pay
Two (2) Policy guidance that financial managers should be familiar with for all travel claims questions:
The Joint Travel Regulations (JTR)
DoD FMR Volume 9, Travel Policy and Procedures
Who establishes policy and assigns responsibilities for developing, administering, and maintaining uniform travel and transportation, station, and housing allowance regulations?
The Per Diem, Travel and Transportation Allowance Committee (PDTATAC)
This applicable to uniformed members of the 7 services, DoD civilian employees, and others traveling at DoD expense.
Automated DoD system for processing travel orders and travel claims regarding Temporary Duty Travel (TDY) and Temporary Additional Duty (TAD) travel.
The Defense Travel System (DTS)
First requirement for any travel
Itinerary
What must be approved prior to starting any travel?
Travel order (DD1610)
It is designed to allow the travelers to pay for the costs of official travel without needing to obtain a cash advance from the GVT.
Travel Card Program
Claim form to submit after the completion of official travel
DD Form 1351-2)
Claim must be certified before disbursing office pays it.
When can an Advance Payment be made to a contractor?
Depending on the terms of the contract, if:
- Contractor gives adequate security
- It is determined that to provide the advance is in the public interest or national defense
- The advance is limited to no more than the unpaid contract price
What is contained in a Payment Package?
- A copy of the purchase order or contract and mods
- A proper invoice from contractor
- Receipt of the product or service
- acceptance of the product or service
Under the prompt pay rules, when acceptance documents have not been received in a timely manner. __________ is considered to take place not later than seven calendar days after delivery of goods or services, unless there is a disagreement over qty, qlty, contractor compliance with contract requirement.
Constructive acceptance
Pay vendor in a timely manner or pay interest
Prompt Payment Act (31 USC 3901)
Requires that most Federal Payments, with the exception of tax refunds, be made by electronic funds transfer (EFT)
The Debt Collection Improvement Act (DCIA) of 1996
Steps to calculate the Net Present Due Date
- Date gods/services received + 7 days = Constructive acceptance
- Constructive Acceptance Vs Actual Acceptance: Take earlier of two
- Compare step 2 with date invoice was received: Take later of two
- Add 30 days to result of step 3 to get due date
Goods/services received 6/1
Goods/services actually received 6/6
Invoice received 6/3
Calculate the due date
- 6/1 + 7days = 6/8 Constructive acceptance
- 6/8 vs. 6/6: earlier is 6/6
- 6/6 vs. 6/3: later is 6/6
- due date is 6/6 + 30 days = 7/6 is due date
2/10 Net 30
GVT can take a 2% discount off the invoice amount paid within 10 days of the invoice date ⇒ Otherwise the full amount is due 30 days
Can a check be drawn to pay an individual payee for the purpose of making payments to non-governmental agencies such as the American Red Cross?
No, it is prohibited.
Responsible for managing the Government’s daily cash position
The Treasury’s Bureau of the Fiscal Service (Fiscal Service)
DOs disbursement of >50M or more in a single or multiple transaction requires 2 business days notice.
If >500M or more, 5 business days notice
Electronic Payment Transfer (EFT) Exceptions
- Vendor Express
- Government Purchase Cards
- Card Acquiring Service (CAS)
Collections types:
- Receipts: creditable to the Treasury Miscellaneous receipt accounts using (DD Form 1131, cash collection voucher)
- Reimbursements: amounts earned and collected for property sold or services furnished to the public or to another U.S. Government agency (positive amount on DD Form 1131, negative for overcollection to be returned)
- Refunds: recoupment (collection) of excess payments (+/- on DD Form 1131)
Reporting system agencies used to provide automated financial reporting to Bureau of Fiscal Services and OMB. It also provides agencies with reports on receipt and disbursement activity and other FBwT transactions.
GOALS II
It is the preferred Governmental method of billing/collection
Intra-Governmental Payment and collection (IPAC)
A system used by agencies to report budget execution information and proprietary financial reporting information to the Treasury, OMB and Congress. Replaces FACTS I and FACTS II
Governmentwide Treasury Account Symbol (TAS) Adjusted Trial Balance (ATB) System (GTAS)
An application that captures closing Package information; links agencies’ comparative, audit consolidated, department-level financial statements to the FR; and resolves material deficiencies identified by the GAO
Governmentwide Financial Report System (GFRS)
Public Law 104-134
The Debt Collection Improvement Act (DCIA) of 1996
(Requires that debt >180 days be referred to the U.S. Treasury for action.)
Responsible for the Do Not Pay (DNP) list initiative
OMB
True of False
The Do Not Pay list is a list of entities and people that should not be pay on Government funds
False
Provides many data sources in one place, which agencies can use to verify eligibility.
Do Not Pay (DNP) initiative
Ways to prevent loss of Public Funds under control
- Access and accountability for resources (Safe, semi-annual inspection, control access to financial systems)
- Recording and Documentation (prompt recording and classification of transactions)
- Resolution of Audit Finding and other deficiencies (prompt evaluation of proper action for resolution)
Requires the Government to receive a claim within six years from the time a claim accrues, other than for entitlements. This law applies to anyone.
The Barring Act (31 USC 3702)
