Departmental of the Interior Departmental Manual
Effective Date: 7/6/01
Subject: Financial Management
Part 331: Cash Accountability
Chapter 1: General Responsibilities and Penalties
Originating Office: Office of Financial Management
331 DM 1
1.1 General. It is the policy of the Department to maintain complete cash accountability in accordance with the requirement specified by the U.S. Treasury. The purpose of Part 331 is to provide policy and guidelines for processing and safekeeping of all public funds and negotiable instruments which are handled by Department employees. To further this objective, certain procedures and practices are established for strict compliance by all employees having access to moneys or negotiable instruments. Instructions applicable to imprest funds in the hands of cashiers are provided in Part 330 DM.
1.2 Responsibilities.
A. Department. The Office of Financial Management (PFM) is responsible for (1) providing policy and procedural guidance to implement regulatory directives and issuances, and (2) for providing assistance to bureaus and offices in the administration of cash accountability.
B. Bureaus and Offices. Heads of bureaus and offices are responsible for establishing and administering appropriate cash handling practices, maintaining adequate internal control over cash processing, and taking the necessary disciplinary action when employees mishandle funds in accordance with Departmental policy.
C. Employees Handling Funds. Each employee handling funds within the scope of this Chapter must be diligent in faithfully recording, safeguarding, and depositing of funds. Where possible, employees designated to handle public funds should be permanent employees. Moreover, 31 U.S.C. 521 states the following responsibilities for employees handling funds:
A
...all public officers of whatsoever character, are required to keep safely, without loaning, using, depositing in banks, or exchanging for other funds than as specially allowed by law, all the public money collected by them or otherwise at any time placed in their possession and custody, till the same is ordered, by the proper department or officer of the Government, to be transferred or paid out; and when such orders for transfer or payment are received, faithfully and promptly to make the same as directed, and to do and perform all other duties as fiscal agents of the Government which may be imposed by any law, or by any regulation of the Treasury Department made in conformity to law...@1.3 Penalties.
A. The penalties imposed by law for improperly handling or using public moneys are severe. The head of each bureau or office is responsible for ensuring that employees under his/her jurisdiction who handle public moneys are familiar with the penalties. Employees handling public funds are personally liable for their loss or misuse and will be required to repay any deficiency unless granted relief under the provisions of 31 U.S.C. 82a-1. Certain general provisions applicable to misuse of public moneys are contained in 18 U.S.C. 648 as follows:
A
Whoever, being an officer or other person charged by any Act of Congress with the safe-keeping of the public moneys, loans, uses, or converts to his own use, or deposits in any bank or exchanges for other funds, except as specially allowed by law, any portion of the public moneys intrusted to him for safe-keeping, is guilty of embezzlement of the money so loaned, used, converted, deposited, or exchanged, and shall be fined in the sum equal to the amount of moneys so embezzled or imprisoned not more than ten years, or both...@B. Other provisions of law relating to the improper handling of public moneys are contained in 18 U.S.C. 643, 648, 649, 653, 654, 3487 and 3497.
C. In addition to the statutory penalties applicable to misuse of public moneys, the Department will not condone any improper handling of these funds. Cashing personal checks from public moneys, temporarily using public funds for personal use without intent to embezzle, flagrantly displaying public moneys, or other actions that are of a questionable nature are considered improper handling of public funds.
67/6/01 #3369
Replaces 3/5/82 #2391