Agent Cashier Accountability VA FSC Austin Lori Brock

Agent Cashier Accountability VA FSC Austin Lori Brock – (512)-460 -5152 Bob Robitaille – (512)-460 -5036

Agent Cashier Overview • Introduction • Birth of a Policy • Treasury vs VA Terminology • Treasury Financial Manual • VA Handbooks • Designations • Personal Liability • Cash Advances# • Bank Accounts Replenishment • Collections and Deposits • Losses, Overages and Irregularities • Limited Payability • Convenience Checks • Review SF 1149

Agent Cashier Accountability • What is an Agent Cashier? A cashier is an officer or federal employee of the federal government who is: 1. designated as a cashier by an approving official 2. authorized to disburse cash or carryout other cash operations

Agent Cashier Accountability • What an Agent Cashier’s Responsibilities? 1. keep all funds safe and separate from other funds 2. do not comingle your own money, or any other money with the Government’s funds 3. do not use the funds for your own purpose 4. do not deposit public money into financial institutions unless you are authorized to

Birth of a Policy

Circulation of Money

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

Manuals • Treasury Financial Manual (TFM) • Manual of Procedures and Instructions for Cashiers (tab 8) • VA Directives and Handbooks

Treasury Financial Manual (TFM) What is the TFM? The TFM provides the regulations that all Federal Agencies must follow. – Manual of Procedures and Instructions for Cashier (Cashier’s Manual) – Part 4 - 3000, 6000, 8000 – Part 5 - 4000 – Part 6 – 8000

VA Directives and Handbooks • VA Policy and procedures based on Treasury Regulations 4000 series (4000, 4010, 4020, 4030, 4070. 1, 4070. 2)

VA Handbooks Tab 1 – VA Handbook 4000 Administrative Fiscal Procedures 2 – VA Handbook 4010 Agent Cashier Procedures 3 - VA Handbook 4020 Personal Funds of Patients Procedures 4 - VA Handbook 4030 Imprest Fund Cashier Procedures 5 - VA Handbook 4003 Travel Reimbursement Procedures 6 - VA Handbook 4070. 1 Collection Mechanism 7 - VA Handbook 4070. 2 Disbursement Mechanism

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

Designations Forms FMS 2958: • Designates Directors • To be submitted every two years *Once a Director is revoked he/she no longer has authority to designate personnel

Designations Forms (cont. ) OF 211: • Designates Agent Cashiers and Alternate Agent Cashiers • Valid until revoked Memo: • Designates social workers, supply personnel and others • Valid until revoked

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

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

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

CASH ADVANCES

Cash Advances to Agent Cashiers • Cash advance limited to amount of cash used over a period of three weeks • Integrated sites; multiple fund distribution • Personal liability for all receiving funds

Cash Advances to Others Collection Clerks Alternate Agent Cashiers Social Workers

Cash Advances to Collection Clerks Limited to making change

Petty Cash and Imprest Fund Advances 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

Understanding the Cash Advance z. The Cash Advance is limited to the minimum amount of cash required to meet the needs of the veterans. z. 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 (cont. ) Condition which require decrease in the advance: Sta. Adv. Nov. Dec. Jan. Feb. Mar. Apr. Total Avg. Usage xxx 55, 000 52, 312 54, 144 46, 973 52, 704 56, 882 53, 020 316, 035 52, 673 96% 6 mo. avg. 52, 673 ÷ 1. 3 (130%)= 40, 518 current adv. 55, 000 < 40, 518= 14, 482 • 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.

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

EFT Ledger • 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

Transfers • Cashier to Cashier • Committee of Three

Transfer Procedures Once all funds are fully accounted for: 1 all cash will be returned to cashier and placed in cashier’s cash box 2 all sub-vouchers will be placed with the cashier’s sub-vouchers 3 memorandum receipts held by the cashier will be returned to those returning their advance

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

Agent Cashier Numbers (AC#’s) • AC #’s will be assigned in straight numerical sequence beginning at #1 for the beginning of each fiscal year • 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.

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: q Monies are official funds of U. S. government q The account is for EFT deposits only q Cash and checks cannot be deposited into account q No overdraft protection is allowed q Fiscal/Finance Officer, Assistant Fiscal/Finance Officer, and Agent Cashier may access the account

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

Overdrafts • 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.

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 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.

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

Collections (cont. ) Deferred Credit Period - 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 and Deposits If it is known that the deposits will be delivered after the cutoff time, the next day’s date must be shown. 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

Collections and Deposits (cont. ) 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

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

Frequency of Deposit (cont. ) • All Treasury checks must be deposited on separate SF 215, to the nearest FRB • 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 (cont. ) • • • 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 • 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: é Agent Cashier Accountability Section é U. S. Secret Service é Federal Bureau of Investigation é 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 • • 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 • Agent Cashier’s Advance – 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 • 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? 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 • 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

CONVENIENCE CHECKS

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

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

Convenience Checks • What you need to know! • • • Security Internal Controls Check Writing Procedures Accounting Procedures Voiding Checks Stop Payment Requests

Security • Each disbursing officer will be responsible for maintaining a sufficient inventory of convenience checks to meet the facility’s needs. • They will keep a log of all checks received and issued.

Security (cont. ) A report reflecting the checks issued or voided and the inventory on hand will be submitted to the designated employee with the legal responsibility and accountability for the convenience check stock each month.

Security (cont. ) • Convenience checks are accountable documents and must be safeguarded at all times and secured in the same manner as other fiscal accountable items. • They are also subject to unannounced audits, as a part of the imprest fund activity.

Internal Controls • Disbursing officers are administratively accountable for each check entrusted to them. • They must ensure that all vouchers presented for payment under the convenience check system are reviewed for completeness and accuracy, and that proper procurement procedures are followed.

Internal Controls (cont. ) • Disbursing officers will complete and sign only those checks specifically assigned to them.

Check Writing Procedures Documentation required by VA for the issuance of a check is the same as if the payment was in cash. Sufficient documents such as, purchase orders, etc. must be in evidence before checks are issued.

Check Writing Procedures (cont. ) • Each completed check must contain the following: • The station# is required for identification, place your station# in memo area of the check. • Each check is pre-printed with a sequential serial # and must be used in numerical order. All checks must be accounted for, including voided checks. • On the memo line, place a very brief description of the goods or service purchased, and/or applicable data, such as obligation number.

Check Writing Procedures • Cont. • In the “date” block, enter the date on which the check is issued. • In the “pay to order” block, enter the name of the payee, i e, vendors, etc. • In the “amount” block, enter the exact amount of payment. • The “signature” block, can only be signed by the individual authorized to issue that series of checks.

Accounting Procedures • Prior to the acquisition, it is necessary for the funds to be obligated. • Purchase is then made, after the obligation has been processed.

Voiding Checks • Why would I void a check? • If errors occur in any field except the “money field”, they may be corrected and initialed. • If errors occur in the “money field”, the check must be voided. • Checks that have not been cashed or returned by the payee, must be voided.

Voiding Checks (cont. ) • How do I void a Check? • To void a check, stamp or write in ink diagonally across the check: “VOID NOT NEGOTIABLE”. • Do not destroy the check nor its carbon, or obliterate the check number • If the check has been signed, the signature should be obliterated.

Stop Payment Requests • How do I get a payment stopped? • The disbursing officer must immediately contact US Bank, who will make an annotation to the check master file to prevent acceptance during the daily validation runs. • All verbal request must be followed up in writing on the US Bank Action Request form. • The procedure outlined above, will also be followed for lost or stolen checks. • US Bank’s Customer Service Line: 1 -800 -xxx

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