Agent Cashier Accountability Agent Cashier Accountability Section 0474

Agent Cashier + Accountability Agent Cashier Accountability Section (0474 B) – VA FSC Austin Texas • Bob Robitaille • Al Saldana • Lori Brock

The FLITE Future Financial and Logistics Integrated Technology Enterprise Program n n 3 Primary Components of FLITE: ¡ SAM – Strategic Asset Management System n Replaces: AEMS/MERS, IFCAP, GIP, PIP, CAI, MMS n National Deployment: 4 Q 2011 – 2 Q 2013 ¡ IFAS – Integrated Financial Accounting System n Replaces: FMS, IFCAP n National Deployment: ¡ FMS Replacement: 1 Q 2011 – 4 Q 2011 ¡ IFCAP Replacement: 3 Q 2012 – 1 Q 2014 ¡ Data Warehouse Website: http: //vaww. va. gov/flite/

Agenda q. Circulation of Money q. Terminology q. Manuals, Handbooks and Directives q. Treasury Financial Manual q. Financial – Officials – Duties q. Standard Requirements q. Designations and Delegation of Authority q. Agent Cashier Cash Advance q. Standard Procedures q. Bank Accounts q. Collections q. Deposits q. Disbursements q. Replenishments and Accountability q. Miscellaneous Information q. Cashier Forms q. Personal Liability q. Turn-Over-Rate q. Change of Accountability q. Replenishment q. End of Month Reports/Bank Statement q. Lessons Learned

Circulation of Money

Treasury vs. VA Terminology é é é FMS - Financial Management Service Imprest Fund Principal Imprest Fund Cashier Alternate Imprest Fund Cashier Sub-cashier Alternate Sub- cashier é é é FMS - Financial Management System Cash Advance Class B Agent Cashier Class B Alternate Agent Cashier Imprest Fund Cashier Alternate imprest fund cashier

Manuals, Handbooks and Directives

Manuals, Handbooks and Directives n Treasury Financial Manual (TFM) http: //www. fms. treas. gov/tfm/vol 1/index. html n Manual of Procedures and Instructions for Cashiers http: //www. fms. treas. gov/imprest/cashiers_manual. pdf n VA Directives, Bulletins and Handbooks http: //www. va. gov/publ/direc/finance. htm

Treasury Financial Manual (TFM) What is the TFM? http: //www. fms. treas. gov/tfm/vol 1/index. html The TFM provides the regulations based on federal statutes that all Federal Agencies must follow. Part 4: Disbursing n ¡ ¡ ¡ Chapter 3000 Third-Party Draft Procedures for Imprest Fund Disbursing Activities Chapter 6000 Checking Accounts with the U. S. Treasury Chapter 10000 Delegation of Disbursing Authority Part 5: Deposit Regulations ¡ Chapter 4000 Making Deposits Part 6: Other Fiscal Matters ¡ Chapter 8000 Cash Management

Manual of Procedures and Instructions for Cashiers n What is the Manual of Procedures and Instructions for Cashiers? http: //www. fms. treas. gov/imprest/cashiers_manual. pdf It is a supplement to the TFM issued by Treasury.

VA Directives, Bulletins and Handbooks n What are VA’s Directives, Bulletins and Handbooks? http: //www. va. gov/publ/direc/finance. htm They are VA Policy and Procedures based on Treasury Regulations (TFM). VA Handbooks 4000, 4010, 4020, 4030, 4070. 1, 4070. 2 VA Directives – 4000, 4010, 4020, 4030 VA Bulletins – 09 GC 1. 02, 09 GC 1. 03

Financial-Officials-Duties

Financial-Officials-Duties (continued) *Hand-out Financial Officials Duties Definitions Facility Director – The Facility Director is responsible for the VA medical facility operations. A FMS form 2958, Delegation of Authority will be submitted through the appropriate channel to the Department of the Treasury for the Facility Director the authority to make financial appointments and handle advances.

Financial-Officials-Duties *Hand-out Financial Officials Duties Definitions Agent Cashier – An agent cashier is an officer or employee of the Federal government who was recommended by the head of the government activity and designated as a cashier by the officer responsible for making disbursements and is thereby authorized to perform limited cash disbursing functions or other cash operations.

Financial-Officials-Duties (continued) *Hand-out Financial Officials Duties Definitions Alternate Cashier – The alternate agent cashier is an employee of the Federal government who serves in a role that is secondary to the agent cashier and is an assistant agent cashier position.

Standard Requirements

Standard Requirements *Hand-out Financial Officials Duties Definitions n Space and Equipment n Reporting Requirements ¡ ¡ ¡ n Daily Weekly Monthly Quarterly Annually Supplies and Equipment for the Agent Cashier

VA Handbook 4000 Administrative Fiscal Procedures q Responsibilities. The Fiscal/Finance Officer has the overall responsibility for the daily operation of the facility fiscal activity, and the implementation of the procedures set forth in this handbook.

VA Handbook 4000 Administrative Fiscal Procedures q Reporting of Irregularities. Whenever any irregularity occurs affecting the accounts of accountable officers or employees of VA, the Director of the station concerned will submit a report to the Deputy Assistant Secretary (DAS) for Financial Management (047) in Central Office for review and further action as required by the GAO Manual Title 7, Chapter 8. 4.

VA Handbook 4000 Administrative Fiscal Procedures (Continued) q Copies of the report will be sent to the Regional Director, the Associate Chief Medical Director (ASCMD) for Operations and the VHA Chief Financial Officer (CFO) or VBA Budget and Finance Staff as appropriate. The station will retain a copy of the report of irregularities with the accountable officer’s accounts for use by the General Accounting Office in the audit and settlement of the accounts.

Stations will report the following irregularities: q q q Shortages due to physical loss of public funds Illegal expenditures resulting from fraud, forgery, alteration of vouchers, and other improper practices. Improper accounting for receipts or collections. Improper accounting for cash advances, imprest funds, or Personal Funds of Patients Any other irregularity which involves accountability to the United States. The report should be submitted as soon as possible after discovery of the irregularity.

Shortages of Funds or Property q Procedures for shortages in the Agent Cashier Funds are covered in VA Handbook 4010

Bank Accounts The Department of Treasury authorized the VA to establish depositary accounts for the sole purpose of receiving Agent Cashier replenishments by Electronic Funds Transfer (EFT).

Authorized Accessibility to Bank Accounts Establishment of Depositary Account includes letter signed by Director stating: n Monies are official funds of U. S. government n The account is for EFT deposits only n Cash and checks cannot be deposited into account n No overdraft protection is allowed n Fiscal/Finance Officer, Assistant Fiscal/Finance Officer, and Agent Cashier may access the account

Authorized Accessibility to Bank Accounts (continued) A signature card must be obtained from the banking facility and accompany the Director’s letter with the three accessible persons’ signatures only.

Daily Verification The Agent Cashier’s advance and bank account must be reconciled daily by counting all funds and by speaking directly with bank personnel.

Co-Mingling n n Depositary accounts are established for the sole purpose of receiving Agent Cashier replenishments in the form of electronic fund transfers Cash advances (appropriated funds) and cash collections (trust funds) can NEVER be commingled

Overdrafts n n Checks can never be written against cashier accounts if the account balance is not sufficient to cover the amount to be deducted. If overdrafts occur, the cashier will be responsible for all bank charges incurred.

Replenishments n Before submitting the OF 1129, a verification of the advance must be completed. n The OF 1129 must be in the name of the cashier with legal authority and signed. n “Status of Funds” section must always be complete

Agent Cashier Numbers (AC#’s) n AC #’s will be assigned in straight numerical sequence beginning at #1 for the beginning of each fiscal year n Supporting documents for cash disbursements will be marked “PAID” immediately upon payment

End Of Month Accountability EOM’s are to reflect the appropriation or fund changes in the accounting records and reports covering all cash items paid by the cashier each month.

Personal Liability Safeguarding Funds: n Office space will allow proper protection for funds and other valuables Combinations and Keys: n Only authorized officials have access to the safe and cash boxes inside of the office

Personal Liability (continued) Changing Keys and Combinations: n Combinations and keys are changed immediately after any emergency entry n Combinations and door locks will be changed at least once a year and when there is a change of incumbents

Personal Liability (continued) Who is liable? n Whoever is acting as the disbursing agent is held liable for all funds. When are you liable? n You are liable until the advance is transferred to another cashier or is returned to the Agent Cashier Accountability Section (FSC).

Designations and Delegation of Authority

VA Handbook 4000 Designations Certifying Officers TFS Form 2958 q To establish certifying officers and Agent Cashiers at VA facilities, it is necessary to process TFS Form 2958, Delegation of Authority, to notify the Department of the Treasury of the name of the Director who has the delegated authority to make these appointments.

Designations Legal accountability of disbursing agents 3 3 3 Complies with accountability regulations of the Treasury Maintains record of current Directors and Cashiers Allow control of cash and checks to be closely monitored.

Designations Systems FMS 2958: n Designates Directors n To be submitted every two years *Once a Director is revoked he/she no longer has authority to designate personnel or sign OF 211’s.

Forms

Appendix A – Table of Forms Refer to Appendix A – Table of Forms in back of manual.

OF 211? What is it used for? OF 211: q q Designates Agent Cashiers and Alternate Agent Cashiers Valid until revoked Memo: q q Designates social workers, supply personnel and others Valid until revoked

Agent Cashier’s Typical Standard Procedures

Daily Procedures q q q Agent Cashier will perform several routine functions each day Disarm the alarm system Prepare work area for business Unlock the safe Place all cash drawers including co-payment drawer, in the designated/assigned place. Count all cash prior to the beginning of new business.

Daily Procedures (continued) q Check Book Balance Ø Ø q Obtain a daily balance of banking account Verify present balance of funds with previous day balance Patient Fund Listing Ø Make sure you receive a PFOP listing of transactions daily from PFOP technician

CASH ADVANCES VA Handbook 4010 (also Part 3 in manual)

VA Handbook 4010 Cash Advance to Agent Cashier What is a “Cash Advance? ” q It is the Agent Cashier’s cash account to be used to meet the needs of the veteran population served by the facility.

VA Handbook 4010 Cash Advance to Agent Cashier 3 3 3 Limited to minimum amount of cash required to meet the needs of the veteran population served by the facility. (Limited to the amount of cash used over a three week period. ) Fiscal/Finance Officer determines appropriate amount of advance. Accountability reports will be monitored by the Austin Finance Center, Agent Cashier Accountability Section (0474 B 1)

EFT Ledger n n Agent Cashiers are replenished via electronic funds transfer (EFT) Cashier must keep accurate log for EFT: ¡ ¡ ¡ Date replenishment is requested Date replenishment is input Date money is posted in bank

VA Handbook 4010 Cash Advance to Agent Cashier How do I request an increase in the Advance? 3 OF 211 prepared in the usual manner by the Fiscal activity and forwarded to Austin Finance Center Accountability Section (0474 B 1)

VA Handbook 4010 Cash Advance to Agent Cashier How do I request a decrease in the Advance? 3 3 3 OF 211 prepared in the usual manner by the Fiscal activity to reflect the amount of the decrease. Funds will be immediately deposited as the only item on the SF 215 to the stations suspense account 36 F 3875. The SF 215 will be identified as “Partial Return of Advance of Funds. ” OF 211 and SF 215 forwarded to the stations’s Accounting Section to record the deposit into suspense. The station will forward copies of OF 211 and SF 215 to Austin Finance Center Accountability Section (0474 B 1), Austin, Texas.

Understanding the Cash Advance q. The Cash Advance is limited to the minimum amount of cash required to meet the needs of the veterans served by the facility. q. The amount is base on a three week need, bringing the monthly usage rate to 130%. Rating factors: 130% green 129 -115% yellow 114 -0% red

Understanding the Cash Advance (continued) Determining station usage, increase or decrease of cash advance An increasable condition: Sta. Adv. Nov. Dec. Jan. Feb. Mar. Apr. xxx 20, 000 49, 043 46, 872 41, 264 42, 382 50, 522 37, 427 6 mo. avg. 44, 585 ÷ 1. 3 (130%)= 34, 296 Total Avg. Usage 267, 510 44, 585 223% current adv. 20, 000 < 34, 296= (14, 296) Increasable amount would be: 14, 300; bringing the monthly usage avg. to 131%

Understanding the Cash Advance (continued) Condition which require decrease in the advance: Sta. Adv. Nov. Dec. xxx 55, 000 52, 312 54, 144 Jan. 46, 973 Feb. 52, 704 Mar. 56, 882 Apr. 53, 020 Total 316, 035 Avg. Usage 52, 673 96% 6 mo. avg. 52, 673 ÷ 1. 3 (130%)= 40, 518 current adv. 55, 000 < 40, 518= 14, 482 q Required decrease would be: 14, 500; bringing the monthly usage avg. to 130% With the exception for RO’s, which are required to maintain a 100% turnover rate. v

Knowledge Review 1 n Time to check you knowledge!

Cash Advances to Others VA Handbook 4010 Collection Clerks Alternate Agent Cashiers Social Workers

Cash Advances to Collection Clerks VA Handbook 4010 Limited to making change

Petty Cash and Imprest Fund Advances VA Handbook 4030 n Review Imprest Fund Hand-Out Government Purchase Cards should be used in lieu of cash.

Cash Advances to Social Workers Advance Maximum : $50. 00 ¡ ¡ ¡ Veteran’s Travel Veteran’s Family Travel Telephone calls

Transfers – Foreseen and Unforeseen q q q Cashier to Cashier Committee of Two Committee of Three

Cashier to Cashier Foreseen Transfer Procedures VA Handbook 4010 para 7 If Agent Cashier is gone for: n n n 15 working days or less – informal cash advance to alternate. Enough to carry out normal disbursing functions. OF 1129 is used, refer to para 4 of VA Handbook 4010. More than 15 working days – informal cash advance of all funds. Upon the Agent Cashier’s return to duty, the funds will be transferred back to the Agent Cashier using the same procedures using the OF 1129.

Unforeseen Transfer Procedures Committee of Three VA Handbook 4010 The Agent Cashier is gone and not returning: Committee of three consisting of the Director or Assistance Director, Fiscal/Finance Officer and Alternate Agent Cashier. q Will access the Agent Cashier’s records and funds Ø VA RO and Insurance Centers, the Chief Collections unit may be a member A complete transfer of responsibility and accountability to the Alternate Agent Cashier will be effected. OF 1129 is used.

Unforeseen Transfer Procedures Committee of Two VA Handbook 4010 The Agent Cashier and Alternate Agent Cashier are gone (absent): Committee of three consisting of the Director or Assistance Director, and Fiscal/Finance Officer q Will access the Agent Cashier’s records and funds Ø VA RO and Insurance Centers, the Chief Collections unit may be a member In the interim, the Fiscal/Finance Officer or Assistant Fiscal/Finance Officer will accept and process all collections normally handled by the Agent Cashier. Cash disbursements will not be made until either the return of the Agent Cashier and/or Alternate Agent Cashier or the newly designated Alternate assumes the duties of the position of Agent Cashier.

Transfer Procedures VA Handbook 4010 Once a calendar year, there will be a complete transfer of responsibility and accountability to the Alternate Agent Cashier, normally for a period of at least 2 weeks. This transfer is to improve internal control and provide training an d experience to the Alternate.

Collections

Collections Forms of Remittance: n Cash, checks, drafts, traveler’s checks, express money orders, telegraph money orders, post office money orders, and credit cards. Personal Checks: n Will not be accepted into Personal Funds of Patients account if over $100.

Credit Card Collections (continued) Credit card collections – facility must have the required equipment to accept credit cards. Handout – Alert Credit card terminals and supplies.

Collections (continued) Deferred Credit Period: n Time given to personal checks to ensure payment by the bank from which it is drawn before crediting the Personal Funds of Patients account.

Collections (continued) Examples of Receipts: q Personal Funds of Patients (PFOP) – Use VA Form 4 -1028 to deposit in PFOP. Funds Received from Probate Court – Prepare paperwork to transfer the funds to the Debt Management Center in St. Paul, Minnesota. Use VA Form 4 -5216.

Examples of Receipts q Personal Funds of Patients (PFOP) – Use VA Form 4 -1028 to deposit in PFOP. q Funds Received from Probate Court – Prepare paperwork to transfer the funds to the Debt Management Center in St. Paul, Minnesota. Use VA Form 4 -5216.

Examples of Receipts (continued) q Mail in Medical Care Collections Funds (MCCF) – Provide a VA Form 4 -1027 Field Service Receipt-General to the MCCF clerk to use for all the collections received on a given day. MCCF clerk makes a list and complete the Field Service Receipt for the total amount and attach the MCCF collections list to the Field Service Receipt. Agent Cashier will deposit the MCCF collections the next business day using a SF 215.

Examples of Receipts (continued) q Donations – Provide a VA Form 41027 Field Service Receipt-General Agent Cashier will deposit the donations into the General Post Fund (36 X 8180). Letter from donor indicating how the donor wants the donation to be used.

Examples of Receipts (continued) q Funds found on Premises – Provide a VA Form 4 -1027 Field Service Receipt-General Agent Cashier will deposit the funds found on premises into the Deposit Fund Account (36 F 3875). (if owner is not identified).

Collection Receipts q q q v VA Form 4 -367, Counter Receipt – Government Life Insurance VA Form 4 -1027, Field Service Receipt – General VA Form 4 -1028, Field Service Receipt – Patient Funds Field Service and Counter Receipt are prenumbered and must be used in numerical order.

Completing the Field Service Receipt q This is a walk though exercise with class discussion while looking at page 22 of the training manual

Deposits If it is known that the deposits will be delivered after the cutoff time, the next day’s date must be shown. n EXAMPLE 1(a): Cutoff time: 2: 00 PM Deposit delivered before cutoff, Monday SF 215 Block 2’s Date: Monday’s date EXAMPLE 1(b): Cutoff time: 2: 00 PM Deposit delivered after cutoff, Tuesday SF 215 Block 2’s date: Wednesday’s date n

Deposits (continued) If deposits are made on the last workday of the month and delivered after the cutoff time, block 2 should reflect the next business day. EXAMPLE: Cutoff time: 2: 00 PM Deposit delivered 2: 30 PM Friday, May 29 th SF 215 Block 2’s Date: Monday, June 1 st n

Frequency of Deposit n > $5, 000. 00 - deposit on a daily basis n < $5, 000. 00 - may be held until amount approaches $5, 000. 00 n A deposit will be made at least once a week regardless of amount n Personal checks under deferred credit period must be deposited no later than next business day

Frequency of Deposit (continued) n All Treasury checks must be deposited on separate SF 215, to the nearest FRB n MCCF, Insurance Collections, and Personal Checks Deferred received must be deposited and posted to FMS within 24 hours of receipt

Check Cashing and Other Negotiables Acceptable negotiables: • Disabled American Veterans (DAV) • Checks drawn on the U. S. Treasury • Postal money orders • Checks drawn by state agencies • Certified checks

Check Cashing and Other Negotiables (continued) • • • Traveler’s checks Telegraphic money orders Bank drafts Bank money orders Express money orders

Money Orders Cashiers may only purchase money orders to replace cash deposits. Fees for the purchase of money orders will be paid from the Agent Cashiers advance.

LOSSES, OVERAGES, AND IRREGULARITIES

Reporting Irregularities When any irregularity of disbursing funds or of other official funds occurs, all facts should be immediately reported to the Agent Cashier Accountability Section for review and decision on whether further action is necessary.

Reportable Conditions n n n Physical loss of public funds Illegal expenditures: ¡ Fraud ¡ Forgery ¡ Alteration of vouchers/official documents ¡ Improper expenditure practices Improper accounting for receipts or collections Improper accounting for cash advance or PFOP Lost deposits Any other irregularity involving U. S. Government. funds

Theft When loss due to theft occurs, contact: n n Agent Cashier Accountability Section U. S. Secret Service Federal Bureau of Investigation Inspector General

Counterfeit The amount of counterfeit must be treated as a reduction in administrative collections and must not be reflected in the cashier’s advance.

Determining Fault or Negligence If an employee is found at fault, restitution will be made from the employee’s personal funds.

Director’s Report n n n Statement of Facts Copy of supporting Documents Description of how irregularity occurred Significant procedural mistakes and corrective measures if taken Recovery information Any other pertinent information

Requesting Relief n Agent Cashier’s Advance ¡ ¡ n Losses < $200. 00, Station Director may grant relief Losses > $200. 00, Report to Agent Cashier Accountability Section Personal Funds of Patients (PFOP) ¡ All shortages must be reported to Dept. of Veterans Affairs Central Office and the Agent Cashier Accountability section

Losses and Overages on the OF 1129 n n Until notified that relief is granted or restitution is made, shortage/overage will be reported in the “Status of Fund” total Overages will be deposited in the general fund receipt account 361060, forfeitures of unclaimed money and property

Limited Payability What constitutes limited payability? n Checks that are one year old from the date on the check.

Payable Time Limit Treasury checks are valid up to one year from the date of the check.

Processing Non-Negotiable Checks n n Stamp “VOID” on face of check Prepare a VA Form 1409 in triplicate ¡ Original and one copy with check forwarded to station’s accounting office ¡ One copy will be kept by cashier for their records

Disbursements

Disbursements Each VA facility has an Agent Cashier disbursement threshold. The Agent Cashier can make cash payments tha will not exceed the local threshold for any one transaction. The Agent Cashiers have the authority to use cashier funds to purchase money orders not to exceed $40. 00 per transaction for the purpose of filing court fees in connection with collecting the debt.

Beneficiary Travel Allowance VA Form 3542, Authorization to Report – Voucher for Mileage Allowance or VA Form 3542 d, Voucher for Cash Reimbursement of Beneficiary Travel Expenses must be presented to the Agent Cashier by the veteran in order to receive payment

Withdrawal of Personal Funds of Patients The Personal Funds of Patients (PFOP) clerk will fill out VA Form 101126 Blocks a-j have to be filled out before the Agent Cashier will accept the VA Form 10 -1126 for payment.

CONVENIENCE CHECKS

Convenience Checks Do’s n Do use in place of cash n Do maintain inventory and log n Do use for PFOP final withdrawals n Limited amount (VA 4010 or local policy)

Convenience Checks Don’ts n Don’t cash or deposit (your own) n Don’t make payable to yourself or other cashiers n Don’t exchange for accommodation exchange checks

Convenience Checks §What are convenience checks? Convenience checks are a payment and/or procurement tool intended only for use with merchants that do not accept purchase cards and for other authorized purposes where charge cards are not accepted. They are apart of the charge card program and are not linked to checking accounts. §When should they be used? Convenience checks should be used as a payment method of last resort, only when no reasonable alternative merchant is available who accepts the charge card. Convenience checks may be written only to vendors who do not accept the purchase card and for emergency incident response. §Who is authorized to write convenience checks? Only Smart. Pay purchase card account holders are eligible for convenience check writing authority. In addition to purchase card training, individuals must also complete specialized training on convenience checks prior to being authorized to write checks.

Convenience Checks (cont. ) Restrictions – Convenience Checks may not be written for: § § § § Vendors who accept the purchase card; Vendor transactions already under another method of acquisition, e. g. , purchase orders, contracts, etc. (see FAR 32. 1103 for permissible exceptions); Employee reimbursements; Cash advances; Salary payments, cash awards, or any transaction processed through the payroll system, Travel-related transportation tickets; Meals or lodging related to employee travel except as related to emergency incident response; and Other restrictions as determined by Agency policy: Convenience checks may not be written above the micro-purchase limit as stated in VA Handbook 4080. *Those micro purchase amounts are as follows: § Supplies - $3, 000 § Services - $2, 500 § Construction - $2, 000

Convenience Checks (cont. ) FACTS: § Convenience checks are, in essence, paper versions of the government charge card, not third party drafts. § The 14 -digit number printed at the bottom of convenience checks is not an actual bank account number. These checks are connected to a charge card, not a bank account. § Since there is no valid bank account number on the check, most banks will not cash convenience checks; however, § If the convenience check is deposited, it flows through the normal bank transaction process and will deposit into a bank account.

Understanding the SF 1149

What is the SF 1149? Statement of designated depositary account. It’s purpose is to perform the monthly reconciliation of the Agent Cashier’s bank account.

Flowchart for Reconciliation of SF 1149

SF 1149 Reconciliation Exercise