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TFM Volume I Table of Contents
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TFM Volume I Table of Contents
This chapter prescribes payment issue disbursing procedures relating to scheduling payments.
The procedures prescribed in this chapter relate to scheduling payments (check and electronic) to individuals, commercial entities, non-profit entities, and Government departments and agencies, and deductions made from disbursement vouchers. Procedures for scheduling payments to Government departments and agencies that do not require the issuance of check or electronic payments are covered in I TFM 2, Central Accounting and Reporting. Procedures for cash payments are covered in I TFM 4-3000, Imprest Fund Cash Held at Personal Risk Disbursing Officers and Cashiers, and I TFM 4-4500, Government Purchase Cards.
Check payment volumes are expected to decrease significantly in 1998/1999 due to mandatory Electronic Funds Transfer (EFT) legislation included in the Debt Collection Improvement Act of 1996.
Regulations governing this chapter are issued under 31 U.S.C. 3321, 3322, 3325, 3328, 3329, 3331, 3511, 3512, and 3513.
2020.10 - Objectives
The principal objectives of control over disbursements are to ensure that all disbursements are legal, proper, and correct and that all disbursements are accurately recorded, reported, and reconciled in a timely and efficient manner. Each agency's system of internal control over, and related procedures for, disbursements should be based on the operating needs of that particular agency and should be in conformity with the related principles and standards for internal management control prescribed in Title 2 of the GAO Policy and Procedures Manual for Guidance of Federal Agencies, and with Department of the Treasury regulations.
2020.20 - Reporting Large Disbursements
Refer to I TFM 6-8500, Cash Forecasting Requirements, for instructions on reporting large disbursements.
2020.30 - Preaudit of Vouchers
Effective control over disbursements requires the preaudit and approval of vouchers before they are certified for payment. The principal objectives of the preaudit of a voucher are to determine whether:
2020.40 - Maximum Amount For Which Payments Can be Issued
The maximum amount for which an individual payment can be issued is dependent on the type of payment instrument. Maximum individual payment amounts, for each payment instrument (paper check, Automated Clearing House (ACH) electronic payment, and Fedwire same day electronic payment), are as follows:
2020.50 - Selection of Payment Instrument for Large Payments
The Debt Collection Improvement Act of 1996 mandates the use of electronic funds transfer for almost all Federal Government payments. ACH is the preferred mechanism for all payment amounts up to $99,999,999.99, except for payments which must be made the same day. Fedwire is the preferred mechanism for same day payments. Agencies are strongly encouraged to schedule payments in advance whenever possible, to allow use of the ACH payment mechanism, and avoid having to use Fedwire. Both ACH and Fedwire payments can be certified to Treasury Regional Financial Centers (RFCs) via the ECS. Agencies are also strongly encouraged to weigh the administrative costs of Fedwire payments, as well as receiving financial institution processing charges to recipients of Fedwire payments, against interest charges for late payments, before scheduling relatively low dollar Fedwire payments.
Agencies are strongly encouraged to make all payments via electronic means (ACH and Fedwire). However, in instances for which an agency has compelling reasons for requesting large dollar ($10,000,000.00 or greater) payments to be made by check, the agency has two options - -
(1) Break the obligation into multiple checks with individual amounts up to $9,999,999.99. Certify via ECS. (NOTE: For ECS Version P7.6, and later, the ECS may be used to submit schedules for manual check payments of up to $99,999,999.99.)
(2) Certify one check up to $99,999,999.99 via paper SF 1166, Voucher and Schedule of Payments (or multiple checks if the total obligation is greater than $99,999,999.99). (NOTE: For ECS Version P7.6, and later, the ECS may be used to submit schedules for manual check payments of up to $99,999,999.99.)
2020.60 - Certification and Submission of Vouchers to the Financial Management Service (FMS) for Payment
All vouchers submitted to the Financial Management Service (FMS) for payment must be signed (certified) by a duly designated Certifying Officer (CO), designated in accordance with the provisions of I TFM 4-1100. The CO must be authorized to certify for the Agency Location Code (ALC) the payments will be drawn against. No payments will be processed by FMS, without proper certification.
In the event that it becomes necessary to change the scheduling of a voucher previously submitted to FMS (different processing or payment date), or it becomes necessary to cancel a voucher previously submitted to FMS (prior to processing and release of payments), instructions for such actions will only be accepted from properly authorized individuals. Properly authorized individuals are: (1) A Certifying Officer (CO), designated in accordance with the provisions of I TFM 4-1100, authorized to certify for the ALC that the payments are to be drawn against; or (2) An agency Designating Official (DO), designated in accordance with the provisions of I TFM 4-1100, with authority to designate Certifying Officers for the ALC the payments are to be drawn against. Instructions to modify the scheduling of a voucher, or cancel its processing, may be received via telephone, facsimile, or written memorandum. In the event that notification is via telephone or facsimile, a written memorandum, addressed to the Director of the FMS Regional Financial Center (RFC) to which the voucher was submitted, and signed by an authorized individual must be submitted to the RFC immediately.
2025.10 - General Requirements
All disbursements, whether in cash, or by checks or electronic payments drawn on the U.S. Treasury or designated depositary banks, for authorized and lawful payments and/or refunds of amounts collected, shall be supported with sufficient information on the disbursement vouchers, or on documents attached to them, to enable the audit of the transactions of certifying and disbursing officers, as required by law.
In order to prevent duplicate payments, vouchers or voucher-schedules and supporting documents must be so marked as to prevent their being processed for payment a second time. However, documents should be marked in such a way as to avoid mutilation. Agencies should be particularly alert to the possibility of duplicating payments whenever one or more of the following situations exist:
2025.20 - Use of Invoices in Place of Vouchers
For Non - Treasury Disbursing Offices (NTDOs), disbursements are not required to be processed on vouchers prescribed by FMS, subject to requirements set by the appropriate disbursing office. Vendors' invoices, bills, or statements of account may be used as basic vouchers, in place of the prescribed vouchers, in support of the agency's accounts and accountability statements, provided they show all the information required in Title 7 of the GAO Policy and Procedures Manual for Guidance of Federal Agencies.
2025.30 - Recurrent Payments - Fixed Amounts
Payments for services of a continuing nature such as rents, janitorial services, etc., which are performed under agency-vendor agreements providing for payments of definite amounts at fixed periodic intervals may be made without submission of invoices, or bills by the vendor. The basic voucher prepared by the agency to support payments of this nature should show as a minimum the contract number, the period covered by the payment, the name of the vendor, the amount of the payment, and the account to be charged. The basic voucher or the SF 1166, Voucher and Schedule of Payments, or other comparable form, depending on the payment system used, will be certified for payment the same as are the vouchers for all other types of payments. Administrative controls should be established for ensuring that recurrent payments are: (1) on unexpired contracts or agreements, (2) for correct amounts, (3) for services actually performed, and (4) not duplications.
2025.40 - Lost or Destroyed Original Invoices
If an original invoice has been lost or destroyed, a duplicate should be obtained, from the original submitter of the invoice, to support the voucher or voucher-schedule. The voucher or voucher-schedule may then be processed through regular disbursement channels provided that there is placed on, or attached to, the duplicate invoice (1) a full explanation as to the circumstances of the loss or destruction of the original invoice, and (2) a statement that steps have been taken to prevent duplicate payment.
2025.50 - Decreasing the Number of voucher-schedules
Agencies are requested to increase the number of payment items per voucher-schedule, particularly in those cases where schedules cover only one, two, or three items.
Multiple invoices or bills payable to one vendor at one office or place of business, for supplies or services rendered Government agencies, should be consolidated into one payment, when possible, to reduce the number of vouchers prepared and payments issued when the due dates for the multiple bills or invoices are the same. In each case, payment in this manner must be agreeable to the vendor; and only one Government establishment may be the debtor.
2025.60 - Prompt Payments to Earn Discounts
When a cash discount has been offered for prompt payment, every effort should be made to process the invoice within the discount period, if the discount is cost effective to the Government (I TFM 6 - 8000). The invoice must be processed according to the specific terms on which the discount has been offered by the contractor or supplier. Discounts should be taken only on those invoices which can be paid within the specified discount period and which are cost effective to the Government. For effective cash management, the voucher covering the payment should be submitted for payment as near the last day of the prompt payment period as possible. Prompt Payment Act conditions are met if a check payment is dated and mailed/deposited within the period, not received by the recipient during the period. They are met for ACH and Fedwire payments if the settlement date for the payment is within the prompt pay period.
2025.70 - Requests for Special or Rush Payments
Treasury RFCs make every effort to rigidly adhere to a 24-hour payment processing schedule (i.e., for agency payment requests received prior to the close of the RFC's daily window (usually in the afternoon) of business day 1, checks will be released on business day 2, and ACH funds will be credited and available for use at the Financial Institution on business day 2). This service standard meets virtually all the disbursement needs of the operating agencies. Requests for special or rush payment issuances will not be processed unless they are extreme emergency payment situations approved by the Treasury RFC Director or a higher level official of FMS. Salary payments, travel advances, cashier replenishments, discounts, and hardship payments are not emergency situations and will receive the routine 24-hour payment processing. Agency representatives must not deliver voucher-schedules for payment in person and wait at the disbursing center for the payment or payments to be prepared on a "walk-through" basis.
All payment requests must be submitted through the Treasury Electronic Certification System (ECS), on an original, certified paper SF 1166, Voucher and Schedule of Payments, or on other approved voucher-schedule forms. Treasury RFCs WILL NOT accept payment requests received over the telephone or voucher-schedules for payments transmitted over facsimile equipment except under emergency conditions, with special permission of the processing RFC's director. When submission of a payment schedule is authorized via facsimile, the RFC will complete processing of the payments based on the facsimile schedule. However, the payments resulting from such a schedule WILL NOT be released until receipt of the original copy of the schedule.
Where an agency requires special delivery procedures, such as delivery via express service (FedEx, etc.), FMS WILL NOT pay shipping charges, other than normal U.S. Postal Service charges. The agency requiring the special shipping must make prior arrangement with the processing RFC and provide the RFC with pre-paid, pre-addressed, shipping labels or pre-addressed labels that contain shipping charge data that will result in the shipping charges being paid by the submitting agency.
Agencies submitting payments to be processed via the Fedwire system (same day payments) should use the Treasury ECS to submit the payment schedule. In an emergency, agencies may use facsimile equipment to transmit voucher-schedules to the Philadelphia and San Francisco Financial Centers for payment to be made via the Federal Reserve Bank's Fedwire system. Use of facsimile transmission for this purpose requires advance authorization from the Philadelphia or San Francisco Financial Center.
2025.80 - Disbursing for Major Disaster or Emergency Situations
In the event of major emergencies such as natural disasters, FMS will issue payments to emergency victims, based on certified requests received from Federal Program Agencies. Normally, the emergency payments will be issued from FMS's RFCs, but if a need exists, FMS can establish an emergency disbursing office at or near the location of the disaster. FMS has the capability to issue emergency payments in both check and electronic form, in any volume necessary. For more information, contact the FMS Emergency Disbursing Manager (see Contacts page).
The following forms are prescribed for use in vouchering disbursements for purchases, services, and refunds due remitters (Appendix 1):
| SF 1166 | ECS Electronic Voucher and Schedule of Payments, Treasury Electronic Certification System (ECS) |
| SF 1166 | Voucher and Schedule of Payments (formerly SF 1166 OCR) |
| SF 1167 | Voucher and Schedule of Payments - (Continuation Sheet) (formerly SF 1167 OCR) |
2030.10 - Voucher and Schedule of Payments - SF 1166 ECS
The Treasury Electronic Certification System (ECS) is a computer based hardware/software system that provides the facilities for generating and certifying a voucher-schedule electronically and telecommunicating it to a Treasury RFC. In this system, all voucher data are entered from the computer keyboard or from a magnetic diskette created by another computer system. Voucher-schedules are certified by Certifying Officers who have been issued tokens (smartcards) and Personal Identification Numbers (PINs), by Treasury, for operation of the system. The system also requires that the user agency have designated Security Administrators who have also been issued tokens (smartcards) and PINs by Treasury. The ECS authenticates voucher-schedules based on the encrypted keys assigned to each Certifying Officer and Security Administrator, and contained on their tokens.
The ECS computer is used to electronically transmit a certified voucher-schedule to an RFC, and receive confirmation of receipt by the receiving RFC. The sending agency retains an electronic or printed copy of the schedule. The ECS computer also generates an audit file during each day of operation, that logs all system access attempts and activity. The audit file should be retained by the agency, on paper or on magnetic media, for a period of thirty (30) days.
The ECS provides facilities for creating SF 1166 ECS voucher-schedules for all types of payment requests to Treasury RFCs and may be used with any or all of the Centers. Further information on the Electronic Certification System may be obtained from any of the Treasury RFCs.
The SF 1166 ECS is an electronic voucher and schedule of payments. There are three methods available for creation of an SF 1166 ECS: (1) in the agency's ECS computer, via keyboard entry; (2) in an agency PC using the off-line ECS software, via keyboard entry, downloaded to magnetic diskette, then uploaded to the agency's ECS computer, by an authorized ECS Data Entry Operator; or, (3) creation in another agency computer system (to FMS specified formats), downloaded to a magnetic diskette, then uploaded to the agency's ECS computer, by an authorized ECS Data Entry Operator.
The SF 1166 ECS may be used to schedule payments in place of transmitting individual basic vouchers and supporting documents to Treasury RFCs. The SF 1166 ECS may be used to certify and transmit voucher and schedule of payments to a Treasury RFC, that includes payment data and certification, or may be used to certify and transmit a voucher that provides certification for payment data delivered to the RFC separately (via bulk electronic transmission or magnetic tape). The SF 1166 ECS is the preferred (strongly) method of certification for payment requests delivered to Treasury RFCs. The use of SF 1166 ECS voucher-schedules does not preclude the preparation of basic vouchers. Each basic voucher will be listed on a voucher-schedule with all information required for payment issuance purposes. Basic vouchers covered by the voucher-schedule will be retained by departments and agencies, unless otherwise authorized herein.
2030.20 - Voucher and Schedule of Payments - SF 1166 and SF 1167
Paper SF 1166, Voucher and Schedule of Payments (formerly SF 1166 OCR) and SF 1167, Voucher and Schedule of Payments - (Continuation Sheet) (formerly SF 1167 OCR), may be used to schedule payments in place of transmitting individual basic vouchers and supporting documents to Treasury RFCs, when the Treasury ECS is not available, or its use is not appropriate. FMS has discontinued the process of generating payments from paper SF 1166 OCR and SF 1167 OCR, using the Optical Character Recognition (OCR) process. Consequently, the paper SF 1166 and SF 1167 MAY ONLY be used to: (1) provide certification of payment data submitted via magnetic tape, when the ECS is not available; (2) provide certification of payment data submitted via bulk electronic transmission of payment data, when the ECS is not available (due to failure or other emergency conditions); (3) submit payment request and certification for small quantities of check payments that will be prepared manually (normally check payments over $9,999,999.99 and emergency check payments when the ECS is not available due to failure); (4) submit payment requests and certification for same day payments to be made via the Fedwire system, when the ECS is not available; and, (5) to submit payment requests for payments to be made in foreign currency. The SF 1166 and SF 1167 normally are manufactured as single sheet interleaved carbon form sets. The use of voucher-schedules does not preclude the preparation of basic vouchers. Each basic voucher will be listed on a voucher-schedule with all information required for check issuance purposes. Basic vouchers covered by the voucher-schedule will be retained by departments and agencies, unless otherwise authorized herein.
Departments and agencies that submit basic vouchers to disbursing offices may also use voucher-schedules, on notification of this intent, to the Regional Director of the servicing Treasury RFC. (See Contacts page.)
2030.30 - Accountability and Control of Voucher and Schedule of Payments
Appropriate accountability records must be maintained by the departments, agencies and instrumentalities of the U.S. Government for the purpose of controlling the stock of voucher-schedules on hand and for fixing accountability upon employees responsible for their issuance and use.
Departments, agencies and instrumentalities of the Federal Government will requisition supplies of SF 1166 and SF 1167 only from GSA Stores Depot, Federal Supply Service. The forms will not be available at GSA Self-Service Stores.
2030.40 - Voucher Deductions, Exception for Payrolls
Scheduling of deductions relating to payrolls is covered under I TFM 3-2000, Payroll Vouchers.
2030.50 - Reduction of Voucher and Schedule of Payments, Used to Submit Same Day Payment Request for Payment Via the Federal Reserve Fedwire System, When Payments Fail Edits
In cases where an agency submits a Voucher and Schedule of Payments (SF 1166 or SF 1166 ECS) containing more than one payment to be paid via the Federal Reserve Bank's Fedwire system (Same Day Payment Request), AND one or more of the payments, but not all payments on the schedule, is/are rejected by the RFC and/or FRB processing systems, the Voucher and Schedule of Payments will be reduced by the number and value of the payments rejected. Payments contained on the schedule that DO NOT reject WILL BE PAID. Payments on the schedule that DO reject, will NOT be paid and will be deducted from the schedule (item count and amount), prior to processing of the Voucher and Schedule of Payments through the accounting system. The submitting agency will be notified, by the RFC, as to which individual payments have been rejected and deducted from the Voucher and Schedule of Payments. Rejected payments must be resubmitted on a new Voucher and Schedule of Payments. In cases were ALL payments on a Voucher and Schedule of Payments, for Fedwire payment, are rejected, the entire Voucher and Schedule of Payments will be rejected and returned to the submitting agency. The procedures of this section apply ONLY TO PAYMENTS TO BE MADE VIA THE FEDERAL RESERVE FEDWIRE SYSTEM (Same Day Payment Requests).
2035.10 - General Requirements
In all cases, the account symbol or other appropriate reference which clearly identifies the appropriation or fund affected must be shown in the accounting classification space on all basic vouchers. Where consolidated working fund subsidiary accounts are used, the subsidiary account classification will also be indicated. When the entire amount of a basic voucher is chargeable to a single appropriation or fund account, only the account symbol need be shown. When the total amount of the voucher is split between two or more appropriations or funds, the account symbols or other appropriate references which identify the funds or appropriations and the amounts applicable to each must be shown. Additional accounting classifications recorded in this space on the voucher will be determined by each agency according to its administrative requirements.
Agency limitation account references (allotment control accounts) are not required to be placed on expenditure documents although such data may be included for agencies' internal needs.
2035.20 - Payee Information
The following rules should be uniformly followed by all agencies in connection with the designation of the payee or payees of government checks:
However, where the account is not joint but several, it is proper to use a designation in the alternative. In this connection care should be taken to distinguish between joint accounts and several accounts.
Where a corporate trustee or executor is in receivership or in the hands of the local banking department, the payment should be made payable to the liquidating officer (Receiver, Secretary of Banking, Commissioner of Banking, etc.) as payee. The names of the corporate trustee or executor and the estate should also appear in such designation; for example, "Secretary of Banking, in possession of the business and property of the X Trust Company, trustee u/w of D." (This form will vary according to the designation given the proper liquidating officer under the local law.)
The certifying officer must be furnished a certified copy of the grant-of-letters testamentary, the will, or trust indenture stating that the intended payee is duly appointed, qualified, and acting trustee or executor.
In instances where the administration of the estate is closed and the trustee or personal representative has been discharged, the legatees, distributees, or beneficiaries, entitled to receive the payment in question, should be designated as joint payees. The Certifying Officer must be furnished first, with a certified copy of the decree of distribution or other proper evidence from the court having jurisdiction of the particular estate showing the persons entitled to receive payment.
Ordinarily, parents or persons standing in place of parents (loco parentis) are not entitled to receive payments on behalf of their minor children. This question also is one of local law. Where the appointment of a guardian is not required and payment may properly be made to the parent, the payee should be designated in the following form: "F., father of M., a minor."
In the case of successor corporations, where it is established that: (1) the original claimant has been dissolved, (2) its assets distributed to the new company, and (3) the liquidating trustees discharged, the voucher should be drawn for payment to the order of the successor company.
Where a company has been dissolved and its affairs are being liquidated by liquidating trustees, the designation will depend on the local law. In most jurisdictions, the corporation continues for the purposes of liquidation, and it may be proper to designate the corporation rather than the liquidating trustees as the payee. No hard and fast rule can be established to cover all such cases. Any uncertainties or doubts concerning the payee to be designated should be referred to the proper legal officer of the department or establishment for consideration.
2035.30 - Contract References
Reference to the contracts or agreements should be made on the voucher by placing the contract number and the date in the spaces provided. If the agreement is unnumbered and attached to the voucher, this should be so indicated. However, where payments are made on vouchers in favor of general supply contractors whose contracts are itemized in the Federal Schedule of Supplies and the item numbers covering the articles purchased are given on the face of the voucher, the contract number and date need not be shown.
2035.40 - Unit Prices of Gasoline or Other Petroleum Products
Where the purchases of gasoline or other petroleum products are made under contracts that provide that the unit prices must be based on tank, wagon, barge, or service station prices on the date and at the point of delivery, such unit prices at date and point of delivery should be shown on the invoices or vouchers as audit information.
2040.10 - General Requirements
All original basic vouchers (invoices or bills), including those covered by voucher-schedules (SF 1166 ECS/SF 1166), must be signed by the proper administrative approving officer of the agency concerned, who is cognizant of the facts stated on the voucher. All voucher-schedules (SF 1166) will be certified by an "Authorized Certifying Officer," who will be held responsible for the correctness of the facts stated on the voucher or its supporting documents, and to the effect that payment is proper from the appropriations shown on the basic voucher or voucher-schedule. All SF 1166 ECS voucher-schedules will be certified by an "Authorized ECS Certifying Officer," who will be held responsible for the correctness of the facts stated on the voucher or its supporting documents, and to the effect that payment is proper from the appropriations shown on the basic voucher or voucher-schedule.
2040.20 - Signatures of Approving and Certifying Officers
Approving officers will sign each basic voucher "Approved for $ __ " over their official title. Certifying Officers will sign basic vouchers or voucher-schedules (SF 1166) "Authorized Certifying Officer" with their name typed or printed below the signature on the voucher or voucher-schedule, and the date of the certification will be shown in the certification. For paper voucher-schedules, Certifying Officers are requested to provide a telephone number, noted under their typed or printed name, to be used to contact the Certifying Officer in the event the receiving RFC has questions related to the schedule-voucher. ECS Certifying Officers will certify SF 1166 ECS voucher-schedules by selecting the "Certify Schedule" function while logged onto the ECS computer, reviewing the voucher-schedule and then responding with a "Y" answer to the question "Do You Want to Electronically Affix Your Signature to the Schedule (Y/N)" at the end of the review. The ECS computer will calculate and affix an electronic signature (message authentication code or MAC) to the certified schedule, using the encrypted key and ID of the Certifying Officer logged on to the system and the Security Administrator that was last logged on to the system.
2040.30 - Establishment of Certifying Officer Authority
Applicability. The procedures in this section apply to vouchers to be certified to Treasury RFCs, Assistant Disbursing Officers, and U.S. Disbursing Officers.
Delegations and Designations of Authority for Disbursement Related Functions. By law, all authority to expend agency funds resides with the head of the Executive Agency. All individuals who certify voucher and schedule of payments to Treasury must be properly designated as a Certifying Officer, by the responsible head of agency or other person duly delegated authority to make such designations. Treasury has determined that this designation process also applies to all other specific positions related to the disbursement of funds (i.e., ECS Security Administrators, ECS Data Entry Operators, Check Custodians, Encryption Officers, Designated Agents to receive and deliver checks, ASAP Authorizing Officials, and ASAP Financial Officials).
Treasury policy and procedures for submitting such delegations and/or designations of authority, their renewal, and their revocation are provided in I TFM 4-1100.
2045.10 - Applicability of Procedures
The procedures in this section apply only to those agencies that transmit the basic vouchers to the Disbursing Officer for payment.
2045.20 - Submission of Vouchers to Disbursing Officers Other Than Treasury Disbursing Officers, U.S. Disbursing Officers (Department of State), and Assistant Disbursing Officers
Basic vouchers prepared on government standard forms or on forms otherwise specifically authorized, and invoices, bills, or statements of account serving as basic vouchers, will be submitted to the Disbursing Officer in an original and one copy for payment processing. The Disbursing Officer will record the payment data on both the original and the copy of the voucher. The original voucher will be submitted as accounting support for the payment transaction and the voucher copy will be retained by the Disbursing Officer for the accounting document files.
2045.30 - No-Check Vouchers
No-Check vouchers will be transmitted to the Disbursing Officer the same as other vouchers, except that across the face of the voucher there will be written in red pencil or ink the words "No Payment to be Made." Such vouchers will be assigned a voucher number the same as any other voucher and will be submitted with all other vouchers as support for transactions in agency accounts.
2045.40 - Assignment Of Basic Voucher Numbers
Each basic voucher will be assigned an identification number by the administrative agency processing the document in its accounts. This reference or document number will be used for all accounting and auditing purposes. The number will be placed in the space on standard form vouchers identified as "Voucher No." This rule will apply regardless of which operating or administrative unit or division of the agency, including the disbursing office, may under agency internal operating procedures, actually assign and place the number on the document. Separate disbursing office voucher numbers, as such, are not required to be placed on vouchers except in the case of vouchers covering charges for transportation services. If, for administrative purposes, it is necessary to assign control or accounting numbers to payment documents, these numbers will be considered as supplementary and subordinate to the official number as prescribed above. The administrative control or accounting number, when used, will be placed on the document reasonably removed from the space provided for the official document number (voucher number), so that it will not be confused with the document number.
Disbursing office voucher numbers are required to be placed in the space marked "Voucher No." on standard form vouchers.
2050.10 - Applicability of Procedures
The procedures in this section apply to certification and transmission of voucher-schedules to Treasury RFCs using the Treasury Electronic Certification System (ECS).
2050.20 - ECS Overview
The Treasury ECS is an automated system for voucher preparation, certification, transmission, and verification that replaces the paper SF 1166, and SF 1166 EDP: Voucher and Schedule of Payments, and associated manual signature validation process. The ECS uses a computer to generate voucher-schedules (SF 1166 ECS), electronically certify the vouchers, and transmit them via a dial-up telephone connection to a mainframe host computer at the servicing RFC.
The electronic certification process provides positive identification of the Certifying Officer who authorizes the voucher, the source from which it originates, and ensures the authenticity of the transmitted data. It also detects any deliberate or inadvertent manipulation, modification, or loss of data between the time the voucher is certified in the agency computer and the time it is verified at the servicing RFC host computer.
The General Accounting Office has approved the ECS for satisfying the signature requirements for certification contained in 31 U.S.C. 3325 and 3528.
The following types of payments may be certified through the ECS:
The processing capacity of each ECS computer, installed at an agency end-point, is 200 schedules per day, of all types, to a single RFC. For "Type A" ECS schedules (those containing individual payment data as well as certification), an individual schedule may contain payment data for up to 60 payments. An agency end-point may be equipped with one or more ECS computers, as required.
The ECS uses message authentication technology defined by American National Standards Institute (ANSI) Standards X9.9 - Financial Institution Message Authentication (wholesale) and X9.17 - Financial Institution Key Management (wholesale).
The agency ECS computer system consists of an IBM compatible computer with a special security board, key loader (smart card reader) and interface unit, modem, and software supplied by FMS. Voucher-schedules may be created by three different methods:
Voucher-schedules are certified electronically by computing, transmitting, and verifying a message authentication code (MAC) for each payment and each voucher-schedule. The MACs are automatically generated within the special security board, installed in the ECS computer, by a Data Encryption Standard (DES) algorithm using the unique secret keys assigned to agency Certifying Officers (CO) and ECS Security Administrators (SA).
2050.30 - Agency Personnel Requirements for ECS
Normally a minimum of three agency personnel types are required for total operation of the ECS. Each employee type is assigned specific functions, that the other employee types cannot exercise. This provides proper separation of duties to ensure integrity. Under normal circumstances an agency will assign more than one individual for each function to ensure availability of the proper employee type at all times. The employee functions required are:
Security Administrators (SA) - Responsible for initial system installation, system daily start-up and shut-down, table maintenance, problem resolution, overall security monitoring, and training of other SAs, COs, and Data Entry Operators. Security Administrators must be designated in accordance with the provisions of I TFM 4-1100. Security Administrators are issued ECS User IDs, tokens (smart cards) and PINs for system access. There are three (3) sub-types of Security Administrator:
An MSA must be appointed for each ECS system location, appointment of TSAs and SAs is optional, but recommended. The MSA will be the primary SA for an agency ECS location.
Data Entry Operators (DEO) - Responsible for payment data entry and editing voucher-schedules. Responsible for uploading into the ECS computer voucher-schedules created on other computer systems. At the option of the agency, DEOs may be authorized to initiate and monitor transmission of certified voucher-schedules from the ECS computer to Treasury RFCs. DEOs must be designated in accordance with the provisions of I TFM 4-1100. DEOs are only issued ECS IDs and PINs.
Certifying Officers - Responsible for certification and transmission of voucher-schedules. Certifying Officers must be designated in accordance with the provisions of I TFM 4-1100. Certifying Officers DO NOT have the capability to install ECS software. Certifying Officers are issued ECS User IDs, tokens (smartcards) and PINs for system access. There are three (3) sub-types of Certifying Officer:
An MCO must be appointed for each ECS system location; appointment of TCOs and COs is optional, but recommended. The MCO will be the primary CO for an agency ECS location.
2050.40 - System Security Features
Each agency SA and CO is issued a unique secret hexadecimal number, called a key, and a personal identification number (PIN), which are used to access and operate the ECS. The key and PIN are encrypted and stored on a token (physical access device - smart card) along with the ECS identification number (ECS ID) of the user. The ECS ID and PIN are also provided to the individuals in written form.
The keys and PINs are generated by a Central Key Management System (CKMS). The CKMS functions are performed by Security Officers (SOs) at the RFC administering the CKMS. There are two primary SOs, each with back-ups. Primary SO1 and SO1 back-ups handle all matters pertaining to tokens and PINs for SAs. Primary SO2 and SO2 back-ups handle all matters pertaining to tokens and PINs for COs. Tokens and PINs are furnished to the SAs and COs under conditions that ensure no one other than the intended SA and CO has access to them.
MSA and MCO tokens and PINs are created at the CKMS and distributed directly to the recipient by the SO1 and SO2, respectively. MSAs must document receipt of their tokens and PINs by completing FMS Form 210RS (see I TFM 4-1100) and forwarding it to the issuing Primary SO1. MCOs must document receipt of their tokens and PINs by completing FMS Form 210RC (see I TFM 4-1100) and forwarding it to the issuing Primary SO2. TSA, SA, TCO, and CO tokens are created at the agency site, from token and PIN data transmitted from the CKMS, by the agency MSA/TSA and MCO/TCO in coordination.
TSAs, SAs, TCOs, and COs must document receipt of their tokens and PINs by completing the appropriate form (FMS 210RS for TSA and SA, FMS 210RC for TCO and CO) and forwarding it to the appropriate CKMS SO (SO1 for TSA and SA, SO2 for TCO and CO). DEOs must document receipt of their IDs and PINs by completing FMS Form 210RD and forwarding it to the CKMS SO1. IDs for ALL types of CO, SA and DEO will not be activated in the ECS until receipt and validation of the appropriate receipt(s). The SA and CO tokens are also stored securely in the CKMS where they are available only for secure electronic transmission to all Treasury RFC mainframe host computers for use in validation of voucher-schedules. Throughout the process/system, no person has access to the unencrypted key and no person, other than the user, has access to the PIN. Keys and PINs will be reissued by the CKMS periodically.
The security and integrity of the voucher-schedule certification and verification process depend on the security afforded to the tokens and PINs. The SAs, COs and DEOs must never allow anyone to have access to their tokens and/or PINs, and must follow security procedures issued with them. If SAs, COs or DEOs suspect their tokens and/or PINs have been compromised or if the tokens become unusable, the Treasury CKMS Security Officer responsible (SO1 for SA, SO2 for CO) must be notified immediately and the tokens must either be rewritten (via the Token Message function of the ECS), or be returned for reissue.
Violation of security procedures will result in notification to the Secret Service or appropriate Inspector General and could ultimately be cause to revoke authorization of the agency to use the ECS.
2050.50 - Designation of Certifying Officers, Security Administrators and Data Entry Operators for ECS
Certifying Officers (CO), Security Administrators (SA) and Data Entry Operators (DEO) for the ECS will be designated as prescribed in I TFM 4-1100. Only Head of Agency and other officials lawfully delegated designation authority may designate COs, SAs and DEOs. A single individual cannot be designated as both a CO and SA, or CO and DEO for the same ECS system and agency location. Designations for CO, SA and DEO are valid for a period of 2 years, unless revoked earlier. Agency designating officials will be notified of pending designation expiration, by FMS, 2 months prior to expiration. If redesignations are not received by the expiration date, the keys for the individuals will be deactivated in the Central Key Management System, resulting in rejection of schedules certified with those keys.
2050.60 - Revocation of ECS Certifying Officers, Security Administrators and Data Entry Operators
When an ECS Certifying Officer (CO), Security Administrator (SA) or Data Entry Operator (DEO) becomes unentitled to exercise their authority (through departure, reassignment, or other cause), the agency will immediately notify the Central Key Management System SO1 or SO2, as appropriate, via facsimile message, as prescribed in the ECS Users Manual. Upon receipt of the facsimile message, the SO will remove the appropriate key from the CKMS database to ensure that the token assigned to the person whose authority has been revoked cannot be used. Procedures in the ECS Users Manual must be followed in returning tokens to the servicing RFC. The agency will also notify the Chief Disbursing Officer, via a completed FMS Form 210, 210S or 210DEO, as appropriate, noting the revocation action and effective date (see I TFM 4-1100).
2050.70 - Agency Requirements
Agencies may make application to use the Electronic Certification System to any of the Treasury RFCs. A single ECS computer may be used to access any or all of the Treasury RFCs. However, prior arrangement must be made with each RFC before voucher-schedules can be transmitted for the first time. When an agency desires to use the ECS with more than one RFC, one RFC will be selected as the primary servicing RFC and will coordinate communications between the agency and any other RFC(s) to which schedules will be sent (secondary servicing RFCs). The primary servicing RFC will be the primary contact for problem resolution and token issuance/update matters.
Agencies will designate a Master Certifying Officer (MCO) and Master Security Administrator (MSA) to receive training. The primary servicing RFC will provide training covering all functions performed by the SA, CO, and DEO. The agency must train additional employees to perform SA, CO, and DEO functions. The primary servicing RFC will provide training materials and user manuals.
The Master Security Administrator (MSA) will be the primary contact with the RFC for solving routine system problems. The MSA must understand computers and have a knowledge of the agency payment process to be effective. The MSA should also be in a position of responsibility within the agency. The MSA will train other agency employees (SAs, COs, and DEOs) in proper system operation and procedures.
Agencies must ensure that the same employee is not designated or authorized to serve in more than one of the three ECS positions (CO, SA, or DEO). In exceptional circumstances, where only a very limited number of personnel are available for operation of the ECS, it will be permissible for an SA to also be designated to perform DEO functions.
Agencies must ensure that their employees comply with the security and operating procedures contained in the ECS Users Manual.
Agencies are responsible for obtaining the computer and peripheral equipment needed for the ECS. Information about the required equipment can be obtained from the servicing RFC.
Only ECS software, security boards, key loader interface units, modems, and tokens supplied or designated by Treasury can be used in the ECS. Agencies must procure security boards and key loader interface units via Treasury contracts. Information on how to obtain these items will be furnished by the servicing RFC.
Agencies must not make any changes to the Treasury supplied software, security boards or other unique items furnished as a part of the ECS. The security boards (PCEM board) are controlled items, whose cases are sealed with tamper evident seals. As such, they may only be opened, disassembled, modified, or repaired by authorized parties. For any security board requiring repair the agency should contact the servicing RFC for authorized procedures. Breaking the seal on a security board is a security violation and will be reported and handled as such. Removing the cover from a security board will completely disable the board, requiring it to be returned to the manufacturer to be made usable. As a controlled item, security boards cannot be exported or disposed of in an uncontrolled manner. Agencies should contact their servicing RFC for disposal instructions. Locally generated software modifications are prohibited, will completely destroy configuration control, and could result in major security and operational problems. Any modification or change to the ECS software, without Treasury's written approval, is a security violation.
Agencies will contact their primary servicing RFC for assistance in solving system problems.
Agencies will resolve all problems due to the faulty equipment and software that is not furnished by Treasury. Treasury will correct hardware/software/system problems related to items furnished by Treasury (security boards, key loader interface units, tokens and the ECS program software).
Agencies will provide two separate secure lockable storage containers for storing ECS items requiring secure storage. The MSA (who holds the first master key for ECS system initialization) should have access to one and the other SA holding the second master key for the ECS should have access to the other.
2055.10 - Applicability of Procedures
The procedures prescribed in this section apply only to those agencies required to submit paper SF 1166 forms, or comparable forms, to Treasury RFCs for payment, and may be used by other agencies performing their own disbursing functions upon notifying the Chief Disbursing Officer of such intent. Treasury has discontinued Optical Character Recognition processing of SF 1166 OCR and SF 1167 OCR. Consequently, the replacement forms (SF 1166 and SF 1167) may only be submitted to Treasury RFCs for certification of payment files submitted via magnetic tape, as Voucher and Schedule of Payments for checks to be prepared manually, payments to be processed via the Federal Reserve's Fedwire system, and payments to be paid in foreign currency. Treasury strongly recommends that all payment requests be certified and submitted via the Electronic Certification System, or that payment data be submitted via electronic transmission, with certification via the ECS.
2055.20 - Preparation and Distribution of voucher-schedules
The paper SF 1166 will be prepared in an original and two copies. (Where applicable, all payment information that designates a mailing address must include a ZIP Code.) The original of the voucher-schedule will be sent to the servicing Treasury RFC for payment processing and two copies will be retained by the agency. Agencies should submit voucher-schedules to the RFC so as to allow payments to be issued as close to the payment due date as possible. Mail delivery time is to be considered in the due date scheduling process.
Preparation of check payments from voucher-schedules will be by manual typing (on an exception basis, for check payments of $10 million or more, foreign currency payments, and cashier advances), from electronically transmitted payment files or computer magnetic tapes. To the maximum extent possible, agencies should schedule their payment activities so that each tape contains a minimum of 100 payment records. If an agency is unable to meet this minimum, it is within the jurisdiction of each RFC to accept tapes with fewer than 100 records. Agencies should submit only one magnetic tape per day for a particular class of payment. For miscellaneous payment files, all payments on the tape should be certified under a single paper SF 1166.
Agencies unable to produce computer magnetic tape or telecommunicate payment files electronically must submit and certify payments via the Electronic Certification System.RFC will make the payments, place the payment information on the voucher-schedule and retain the original paid voucher-schedule as support to its Statement of Accountability. RFCs will make every effort to adhere to a 24-hour (in today-out tomorrow) processing schedule for payments submitted on computer magnetic tape that does not include manual enclosures. The use of manual enclosures may require up to 72 hours for payment processing and release.
NOTE: Agencies must submit the original and two copies of the paper SF 1166 to the RFC for processing of foreign currency vouchers (see section 2065.40 - General).
On the date of payment, issuing RFCs report payment issue data from paid voucher-schedules to the GOALS/RFC Agency Link, for agency accountability. The payment data will consist of the SF 1166 (document type A or B) or SSA 110s (document type K) schedule number, payment date, check symbol or ACH symbol, check range, or combined check and trace ranges, and certification amount. The agency will have access to the paid data, usually, within 24 hours of the paid date. Microfiche, containing the same data, is mailed at the end of each month to the agency's accounting office, which should be kept for future inquiries. Any unusual delays in receipt of paid voucher-schedule data (on GOALS) by agency offices should be reported to the issuing RFC. Upon receipt, the agency immediately must compare the paid data with the pending copy of the voucher-schedule. Any erroneous data should be reported immediately to the agency Inspector General's office (or appropriate agency security officials) and the Disbursing Officer. Copies of the accomplished voucher-schedules, with the related basic voucher, will be submitted as accounting support to the agency's Statement of Transactions. One copy will be retained in the agency's accounting document files as accounting support to the agency's Statement of Transactions.
2055.30 - Basic Vouchers
Basic vouchers are the source documents for the issue data on SF 1166 or comparable forms. Each basic voucher will be listed on a voucher-schedule with all information required for check issuance purposes. Basic vouchers covered by voucher-schedules will be retained by departments and agencies unless otherwise authorized. Each voucher-schedule page should contain the greatest number of items that normal spacing requirements will permit.
Assignment of Identification Numbers to Basic Vouchers. Each basic voucher must be cross-referenced to the voucher-schedule by agency identification numbers in a manner that enables positive association of one with the other. Administrative agencies or offices may elect to assign individual numbers to each basic voucher, invoice, or bill, or they may assign only the related Voucher and Schedule of Payments number to each basic accounting document. Depending on the system used by the administrative agency with respect to numbering basic vouchers, invoices, or bills, the first column of the Voucher and Schedule of Payments may or may not be used.
Classification on Basic Vouchers for Purposes of Separate Scheduling. Basic vouchers should be segregated into the following general classifications for processing on separate voucher-schedules:
In those cases where an administrative agency estimates that the daily average number of basic reimbursement travel vouchers, SF 1012 "Travel Voucher" to be processed at a scheduling point will be six or less, such vouchers need not be listed on a separate voucher-schedule, but may be included with those classified as "all others."
2055.40 - Combined Payments Due a Single Payee
If the amounts of two or more basic vouchers or invoices due one payee may be properly combined in one check, the individual basic voucher numbers should be clearly indicated in the voucher number column on the voucher-schedule, but the items will be added and listed as a single payment. In such cases, it is desirable that an adding machine tape or facing sheet listing of the individual amounts be attached to the related group of basic vouchers.
2055.50 - Guidelines for Entering Information on the voucher-schedules
Entering Information in the Payee Column. As a general rule, the RFC will create payments directly from the information shown on the SF 1166 (I TFM 4-5000). Consequently, except as otherwise provided in section 2070, the data should be restricted to the information which is to be shown on the face of the check or would be required to post an electronic payment to an account at a financial institution, and should be typed in uppercase letters. Punctuation marks are to be omitted except for the use of commas to setoff the names of more than two payees. Long addresses should be avoided unless necessary for postal identification.
Check issue data for foreign addressed payments submitted to Treasury RFCs should include a 3-digit foreign sorting code in the domestic ZIP Code location. If the payment file is submitted as a bulk file (electronic file transmission or on magnetic tape), the foreign sorting code should not contain leading zeros in the 5-digit ZIP Code field, otherwise, it may be mistaken for a domestic ZIP Code. Checks bearing these codes are sorted by country and receive priority delivery through Department of State facilities. A list of the foreign country sorting codes may be obtained from the Office of the Chief Disbursing Officer (see Contacts page). Checks addressed outside of the United States must bear the name of the country, except for checks with APO/FPO addresses. Foreign addressed payments included in Railroad Retirement Board (RRB) benefit payment files, and Office of Personnel Management (OPM) benefit payment files, must be located at the beginning of the file.
When necessary, special handling instructions should be placed in the payee column as the first entry on the SF 1166. Payee information should be located inside the brackets provided on the form. The first line should begin at the first space inside the left bracket. No payee information should extend into the amount column. Foreign addressed payments, except to APO/FPO addresses, should be submitted to Treasury RFCs on a separate SF 1166 or at the beginning or end of the bulk file.
Voucher-schedules prepared to show only the name of the payee and amount, such as advances to travelers, etc., may have the payee names triple spaced so that two such inscriptions appear in each payee space. If payment identification legends (travel advance, etc.) are required to be shown on the checks, the legend should be triple spaced below the name of the payee and one inscription allotted to each payee space.
Invoice numbers or other data identifying the payment should be typed on the second succeeding line following the last line of address, as long as it does not overlap into the next payee space. Otherwise, it may be indented slightly and started on the next line following the last line of address to avoid overlapping into the next payee space. (For related information concerning inscription of Payee Name and Other Identification Data, see I TFM 4-5000.)
In order to preclude the possibility of the numerical identification number being mistaken for ZIP Codes by the U.S. Postal Service, all such numeric information should be typed in the payee column beginning with the first space inside the left margin. Payment identification information should not appear adjacent to the ZIP Code area. Numeric foreign postal codes should also be the first entry in the last line or next to last line of address depending on the postal regulations of the country involved. An exception is Canadian alphanumeric postal codes, which should be the last entry in the last line of the address.
Entering Information in the Amount Column. The amount for which the payment is to be drawn will be shown in the "Amount" column on the same line as the payee's name. The amounts should be typed within the index marks in the amount column. Amounts should be typed without decimal points or dollar signs for payments in U.S. currency. Amounts should be located so that the last digit of the amount (units position) is located three typewritten spaces from the right-hand vertical ruling of the amount column. Except where prior arrangements have been made to the contrary, amounts stated in foreign currencies should contain decimals. This is necessary to ensure that the correct amount will be paid, since some countries are not on the decimal system. The total of the amount column on the voucher-schedule must include items listed on the continuation sheets.
Typing. Schedules prepared on electric typewriters create the most consistently dense and therefore the best quality impressions for readability or preparing foreign currency payments. The use of manual typewriters to prepare voucher-schedules should be avoided, if at all possible. Vouchers may be prepared using computer driven impact or non-impact printers. Typewriters equipped with 10-pitch style (10 characters to the inch) produce an image superior to the elite (12-pitch) style. Typewriters having Optical Character Recognition (OCR) fonts (OCR-A 10-pitch, 1403 OCR 10-pitch or OCR-B 12-pitch uppercase alphanumeric) are acceptable and desirable for all voucher-schedules. Typewriters with script or italic style fonts and typewriters that print numeric zeros should not be used for typing voucher-schedules. Schedules should be typed using all capitals for names and addresses. Pressure setting of typewriters should be adjusted to produce heavy impressions, but not heavy enough to produce "brailled" or embossed characters. A one-time use carbon-base ink or film ribbon creates the best images for payment production. Fabric ribbons should not be used for preparing voucher-schedules. Ribbons should be changed and typing elements cleaned frequently to ensure dense impressions.
Errors made in typing the payment inscription should be corrected using the OCR scanner correction method regardless of how the payments will be prepared. In the OCR scanner method of correction, four question marks are typed in the first four positions of the next line. After typing the question marks, double space the typewriter and start the payment record over again. Do not X-out or line out entries. Also, the OCR scanner method for end of page coding should be used on all schedules, regardless of the method of check preparation. Type four slash marks (////) after double line spacing from the last payment record on the page.
Audit Notations. To the fullest extent possible, audit notations on the schedule should be made in the voucher column. If required, check marks, initials, or other notations may be placed on schedules in the payee or check-number columns. All audit notations should be made with ball-point pens or pencils of the nonreproducing type.
Mailing of Schedules to Disbursing Officers. Schedules should be submitted in 9 - by 12 - inch or larger envelopes so that the vouchers will not have to be folded.
2055.60 - Scheduling Invoices From Government Agencies When Payment is Made by Check
Invoices or other billing documents received from government agencies that are to be paid by check will be listed for payment on a voucher-schedule and processed as if payment were being made to a non-government creditor. In such cases, the original invoice or billing document is the basic voucher and becomes a part of the accounting documentation for the related period of account.
2055.70 - Scheduling No-Check Vouchers
Vouchers for which No-Checks are to be issued or from which deductions are made, will be assigned voucher numbers, as other disbursement vouchers, and scheduled in the following manner:
2055.80 - Scheduling Travel Advances
The preparation of SF 1012 "Travel Voucher" in vouchering approved travel advances is optional where a voucher-schedule is used. Where SF 1012 is not used, an abbreviation of the notation "Travel Advance per Authorization No., Dated" will be entered in the voucher number column of the voucher-schedule. When this procedure is followed, the travel advance item on the voucher-schedule will not be supported by a basic voucher, but instead by a copy of the travel authorization. Where the travel advance payment is to be made by an imprest fund cashier, the traveler will submit a properly approved SF 1012, or SF 1038 "Advance of Funds Application and Account" to the cashier for the advance payment (I TFM 4-3000).
2060.10 - General
The Treasury Electronic Certification System (ECS) is the preferred method of certification. However, when it is not available, SF 1166-EDP may be used to certify payment data submitted on magnetic tape. SF 1166-EDP is a computer generated facsimile of the SF 1166, generated via agency computer programs. The provisions in section 2055 generally apply to the SF 1166-EDP. However, the SF 1166-EDP is limited to such data as tape reel number, payment volume, amount, and certification. Individual payment data for payment inscription are not to be included.
SF 1166-EDP must be certified by an authorized certifying officer to the effect that payment is proper from the appropriations shown thereon. A description of the information to be reported on the SF 1166-EDP is in Appendix 1.
2060.20 - Requests to Submit Magnetic Tape and/or SF 1166-EDP
Requests to submit check-issue data on magnetic tape and/or SF 1166-EDP should be directed to the Chief Disbursing Officer (see Contacts page). 2060.30 - Electronic Submission of Payment Data (Telecommunications) The Financial Management Service maintains a wide area network (WAN) to facilitate electronic transmission (telecommunication) of data between all of the Treasury RFCs, the Federal Reserve System, and participating government agencies.
Agencies may elect to make connections to the FMS WAN for the purpose of establishing facilities for electronic transmission of payment and other data between the agency and the RFCs.
Use of the Treasury Electronic Certification System, for certification of payment data submitted via telecommunication, is a prerequisite to establishment of FMS WAN connections.
Requests to establish connections to the FMS WAN and initiate electronic transmissions should be directed to the Chief Disbursing Officer (see Contacts page).
Section 2065 - Foreign Currency Payments
2065.10 - Purpose
This section provides instructions to agencies requesting disbursement of payments billed in foreign currency.
2065.20 - Disbursements in Foreign Currency
Prior to submitting a request for the disbursement of foreign currency, an agency must have on file at the Financial Management Service (FMS) an FMS 210: Designation for Certifying Officer. That form must cover each designated certifying officer. (See I TFM 4-1100 for instructions on completing the FMS 210.)
To request the disbursement of foreign currency from the Kansas City Financial Center (KFC), complete an SF 1166: Voucher and Schedule of Payments. (See the Contacts page.)
Only the KFC will process an SF 1166 for payment in foreign currency. To meet the time frames established by the Prompt Payment Act, KFC must receive the agency�s SF 1166 10 days before the payment date indicated.
The KFC will verify that the certifying officer�s signature on the SF 1166 matches the signature on the filed FMS 210. Then, KFC will process the SF 1166 for payment within the normal 24-hour time frame.
2065.30 - Scheduling SF 1166 for Foreign Currency Payments
General. Each SF 1166 should request payments for only one type of foreign currency. When more than one payment is being made in a given currency, list as many payees as possible on each SF 1166. To initiate a wire or check payment, use the SF 1166 to supply the KFC with the following information:
Wire Payment
S.W.I.F.T. code.
Payee name.
Bank identifier number.
Bank name.
Bank address.
Bank account number.
Currency type.
Amount.
Invoice information.
Check Payment
Payee name.
Payee address.
Currency type.
Amount.
Invoice information.
If a payee agrees to receive a wire payment instead of a check, agencies complete a separate SF 1166. Annotate that form to indicate that a "wire payment" is requested and supply the above data. KFC will return all wire payments that do not include the data above to the agency submitting the payment request.
An individual SF 1166 may contain either wire payments or check payments, but not both. A separate SF 1166 is required for each type of payment. (See the Contacts page.)
Appendix 2 to this chapter has additional instructions on scheduling the SF 1166 for payment in foreign currency when: (1) the foreign currency amount is known, (2) the foreign currency amount is not known, and the U.S. dollar equivalent is provided, (3) the amount payable is limited by law, and the U.S. dollar equivalent limit is provided and (4) the currency billed is considered excess or near excess, but the amount must be paid in U.S. dollars.
Expressing Payment Amount. Ensure that the amount billed on the invoice is the same as on the SF 1166 to avoid disbursement of an erroneous amount.
All foreign currency payment amounts should contain a decimal point, except: Japanese Yen, Korean Won, Indonesian Rupiah and Greek Drachmas. (For example, for those countries listed above, schedule 5000.95 as 500095, except for Greek Drachmas, which should be expressed as a whole number and scheduled as 5000.)
Payments Requiring U.S. Dollars. Schedule payments in the foreign currency billed, unless the currency is: (1) destined for a restricted currency country or (2) Panamanian Balboas (�Panamanian Balboas� are U.S. dollars), requiring payments in U.S. dollars.
Note: In some countries the foreign exchange control regulations prohibit local exporters from receiving or accepting payment in local currency for purchase of items to be exported. Before scheduling payments, agencies should ask vendors if they may be paid in their local currency.
Payments Requiring Foreign Currency. If payments are billed in U.S. dollars to a foreign country that is considered an excess or near-excess currency country, schedule payment in that foreign currency instead. Do this unless there is a valid reason for payment in U.S. dollars, in which case the certifying officer should indicate the �amount must be paid in U.S. dollars� on the SF 1166.
Note: Agencies are notified, through Office of Management and Budget Bulletins sent to heads of executive departments and establishments, of those countries where the supplies of currency are in excess or near excess of the U.S. Government�s normal requirements.
2065.40 - Rejecting an SF 1166
The KFC may reject an SF 1166 if: (1) the signature on the SF 1166 does not match the signature on the FMS 210 form on file or (2) the scheduling instructions provided in subsection 2065.30 are not followed.
The Department of State U.S. Disbursing Officer may reject an SF 1166 if an agency does not provide a valid appropriation on the voucher.
2065.50 - Reporting Foreign Currency Payments
Agencies Using an 8-digit Agency Location Code (ALC). These agencies will report foreign currency disbursements to an appropriation on their SF 224: Statement of Transactions. An agency will receive confirmation of the disbursement of foreign currency payments and the amounts of the U.S. dollar equivalent of those payments from the KFC via Government On-line Link System (GOALS). In GOALS, these foreign currency payments are coded with an �X.� In addition, the KFC will mail weekly detailed information on foreign currency payments disbursed to the address of the ALC provided on the SF 1166. These reports will contain information on each payment disbursed including U.S. dollar equivalent, check number, amount and issue date.
Agencies Using a 4-digit ALC. These agencies will not report foreign currency disbursements on SF 224s. Instead, the Department of State will report a charge to the agency appropriation indicated on the SF 1166 for these disbursements on an SF 1221: Statement of Transactions. An agency will receive confirmation of the disbursement of foreign currency payments and the amounts of the U.S. dollar equivalent of those payments from the Department of State through reports mailed to the address of the ALC. The Department of State will mail these reports by the 10th day of the month following the month that the foreign currency payments were disbursed. These reports will include: (1) the SF 1221, providing summary charges to agency appropriations for the amount of the U.S. dollar equivalent of the payments disbursed and (2) the Voucher Auditor�s Detail Report, providing detailed information (including check number, amount and issue date) on each payment disbursed.
2070.10 - Instructions Pertaining to Enclosures for Check Identification Purposes
The invoice numbers or other identifying numbers shown on the payee�s billing form and the identification of the agency making the payment will be shown on the check at least two lines below the address. The RFC will issue the check directly from the information shown on the voucher-schedule as follows:
XYZ Company 1581 Vine Street Washington, DC 20015 *DOE INV NOS 1856; 1858; 1920
A maximum of 6 inches of writing space (that is, two 3-inch lines) below the three lines required for the payee�s name and address is available for check identification information.
However, this method of check identification should not be adopted until an agreement is reached, in writing, by the agency and vendors or payees concerning the exact references required on the check.
In the absence of such an agreement, check identification information will not be shown on the voucher-schedules.
2070.20 - Instructions Pertaining to Inserts Enclosed with Treasury Checks
Agencies submitting requests for inserts to be enclosed with Treasury checks must adhere to the instructions in the following paragraphs and the instructions in Appendix 3, concerning insert specifications and shipping addresses for insert delivery.
Approval will be granted only for program related inserts printed on tabulating cards. The message to be conveyed should be written in general terms so that the matching of inserts with specific checks is not required.
It is the primary responsibility of the agency to determine whether inserts are appropriate and program related. The Chief Disbursing Officer retains final authority on the language and content of all inserts enclosed with Treasury checks.
To avoid unnecessary expenses, Chief Disbursing Officer approval should be obtained prior to entering printing contracts. Any questions or problems concerning inserts should be referred to the Chief Disbursing Officer, Attention: Administrative Services Branch (see Contacts page).
If enclosure is approved, the Chief Disbursing Officer may require reimbursement for expenses involved in preparing and mailing to payment recipients enrolled in the direct deposit program. Payment of postage to the U.S. Postal Service for these mailings is the responsibility of the requesting agencies.
As a less costly alternative, to inserts, FMS offers the ability to print messages on the back of envelopes used to mail Treasury checks. (For further information, contact the Administrative Services Branch - See Contacts page.)
2070.30 - Instructions for Requesting Enclosure of Program Inserts
Program agencies desiring enclosure of inserts must submit the requests sufficiently in advance of delivery of check issue data to allow for approval action, to stock enclosure supplies, and to make computer program changes when necessary. Normally, submission of requests 6 weeks prior to delivery of check issue data is sufficient, with earlier submission if programming changes are required.
Letters of request must provide a sample of the insert or a facsimile if a sample is not available, and must include the following information: (1) proposed enclosure numbers and titles; (2) type and size of enclosure; (3) date of checks; (4) class of payment; (5) Regional Financial Centers involved; (6) volume at each Regional Financial Center (volumes should correspond to current payment figures, plus an additional 5 percent overage to cover spoilage); (7) total volume of enclosures; (8) delivery date; and (9) special enclosing instructions.
When an actual sample of the check insert is not provided with the request, any approval will be conditional on inserts meeting the specifications as prescribed in this release.
All proposed inserts must now contain the statement, "Any questions or inquiries concerning the content of this insert should be directed to (agency name/office/phone)."
Insert requests must be submitted to the Chief Disbursing Officer for approval of both content and specifications (see Contacts page).
2075.10 - General Procedure
Agencies will not draw checks or warrants intended for delivery in the restricted countries designated in 31 CFR 211 and listed in Appendix 4. In place of drawing a check or warrant, which would be withheld under 31 CFR 211, the drawer agency will withhold payment and will establish the liability on its books.
From time to time the Secretary of the Treasury or his/her designee, the Fiscal Assistant Secretary (Treasury Department Order No. 101-5, dated December 21, 1981), will temporarily withhold checks to certain countries without publication of the name of the country in 31 CFR 211 or including it in Appendix.
In these instances, the imposition of the restriction will be communicated directly to the affected agencies.
Temporary withholdings are normally due to conditions within the country, such as natural disasters, political upheaval, postal disruption, or lack of U.S. diplomatic representation, which make it doubtful that checks will reach the payees.
Exceptions: The provisions of 31 CFR 211 do not apply to payments to foreign governments, nor to checks or warrants issued in payment of salaries or wages or for goods or services purchased by the U.S. Government in foreign countries, unless the payments are subject to the regulations of Treasury�s Office of Foreign Assets Control referenced in Appendix 5.
2075.20 - Reports
Reports, containing the information required in 31 U.S.C. 3329, may be requested by Regional Operations from time to time for payments withheld (1) under both the Foreign Assets Control regulations listed in Appendix 5 and the determination of the Secretary of the Treasury under 31 CFR 211 or (2) solely according to any such authority.
2075.30 - Claims for the Release of Withheld Checks or for the Proceeds Thereof
Claims for proceeds withheld shall be processed by the administrative agency responsible for originally authorizing issuance of those proceeds.
Payment Withheld on Agency�s Books. If the drawer agency has withheld payment on its books, in place of drawing a check or warrant, that agency will arrange for the issuance of a check and will decrease the respective liability on its books.
Payment Deposited With the Financial Management Service (FMS). If the proceeds of withheld checks were on deposit prior to April 1976 and are still on deposit with FMS in deposit fund account 20X6048 "Proceeds of Withheld Foreign Checks," administrative agencies will submit requests for payment with the recommendation on such payment to FMS (see Contacts page).
2080.10 - General
Agencies are encouraged to have their payroll checks mailed to home addresses or elect to receive the Direct Deposit/ Electronic Funds Transfer to their bank. Additionally, the Debt Management Collection Improvement Act of 1996, requires that all payments be issued electronically by calendar year 1999. The Chief Disbursing Officer may, upon request, delegate to employees of other agencies that part of its function involving distribution and delivery of checks to the respective recipients. Policy and procedures for designation and revocation of Designated Agent to Receive and Deliver Checks are provided in I TFM 4-1100.
U.S. Savings Bonds are no longer printed by Treasury. This service has been transferred to the Federal Reserve Bank (FRB) of Cleveland, Pittsburgh Branch. Therefore, any request for designated agent delivery of U.S. Savings Bonds must be directed to that institution. (Reference I TFM 3-6000.)
2080.20 - Requirements Applicable to Designated Agents
In the interest of internal control, no person or position having duties of a Certifying Officer or otherwise directly or indirectly involved in the preparation of payrolls or voucher-schedules may be designated as an agent. Agencies will be responsible for preventing recommendation actions for such persons or positions. The Chief Disbursing Officer is, however, authorized to consider a request for waiver of this requirement in unusual circumstances where separation of duties may not be possible. In this instance, the Chief Disbursing Officer should be notified of the reasons for such a request.
It is not necessary for the designated agent to send a receipt to the Disbursing Officer when checks are received, as long as the designated agent is employed in the administrative office or the delegation is still effective. If the checks bear issue dates, which are predetermined according to a time schedule, they will not be delivered to the payee prior to the scheduled payment date. A designated agent may mail employees� salary checks to an address specified by the employee on a temporary basis due to the employee being in travel, sick, or annual leave status. However, designated agents will not mail checks to payees on a continuing basis.
2080.30 - Pick Up of Checks by Authorized Messengers
Agencies may authorize messengers to pick up checks at Treasury RFC upon approval of the Disbursing Officer. Messengers may be government employees or commercial courier service personnel. Agencies will designate in writing to the RFC the name of the government or commercial courier employee who will act as the messenger and will provide the required specimen signature of the messenger. Designations of commercial couriers must also specify the commercial courier�s corporate name and certify that each employee acting as a courier is bonded for a minimum of $2,000,000.
An agency may require higher bonding to correspond to the dollar value of check payments to be transported. An agency�s contract with a commercial courier service must stipulate that the courier will be liable for any loss to the government due to the mishandling of Treasury checks while such securities are entrusted to their possession. In the case of loss, it will be the responsibility of the agency to aggressively pursue all available remedies against the commercial courier service.
Agency authorizations for messengers to pick up checks will remain in effect until the Treasury RFC is advised in writing that such authorization is revoked.
Instead of having salary checks released to a designated agent for distribution to employees, agencies should encourage their employees to have their net pay remitted regularly to the financial organizations of their choice for credit to their accounts (I TFM 3-8000), in compliance with the mandatory EFT provisions of the Debt Collection Improvement Act of 1996.
Chief Disbursing Officer
Financial Management Service
Department of the Treasury
Liberty Center, Room 335
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-6800
Financial Management Service
Disbursement Management Division
Emergency Disbursing Manager
Liberty Center, Room 335
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-6800
Finance Division
Financial Management Service
Department of the Treasury
Liberty Center, Room 257
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-7110
Disbursement Management Division
Regional Operations
Financial Management Service
Department of the Treasury
Liberty Center, Room 335
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-6800
Administrative Services Branch
Regional Operations
Financial Management Service
Department of the Treasury
Liberty Center, Room 358
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-6932
Kansas City Financial Center (KFC)
Attention: Special Operations/CAS
P.O. Box 7528-0228
Kansas City, MO 64116-0228
Austin Financial Center (AFC)
P.O. Box 149058
Austin, TX 78714-9058
Telephone: 512-342-7200
Birmingham Financial Center (BFC)
P.O. Box 2451
Birmingham, AL 35201-2451
Telephone: 205-912-6100
Chicago Financial Center (CFC)
P.O. Box 8670
Chicago, IL 60680-8670
Telephone: 312-353-2364
Kansas City Financial Center (KFC)
P.O. Box 12599
Kansas City, MO 64116-0599
Telephone: 816-414-2000
Philadelphia Financial Center (PFC)
P.O. Box 8676
Philadelphia, PA 19101-8676
Telephone: 215-516-8000
San Francisco Financial Center (SFC)
P.O. Box 193858
San Francisco, CA 94119-3858
Telephone: 415-817-7100
Chapter Appendices are only available in Portable Document Format (PDF) at http://www.fms.treas.gov/tfm/v1p4c200.pdf
1. Reference I TFM 4-2000 (Transmittal Letter No. 577) dated February 9, 1998
This revises I TFM 4-2000, Payment Issue Disbursing Procedures. It provides instructions to agencies requesting disbursement of payments billed in foreign currency. The letter replaces pages in Section 2065, deletes subsection 2065.60, and updates pages in the Contacts and Appendix No. 3.
2. Page Changes
Remove
I TFM 4-2000 pages 17 through 21
Contacts pages 23 through 26
Appendix No. 3 pages 17 and 18
Insert
I TFM 4-2000 pages 17 through 21
Contacts pages 23 through 26
Appendix No. 3 pages 17 and 18
3. Effective Date
Upon receipt.
4. Inquiries
Direct questions concerning this revision to:
Operational Integrity Branch
Financial Management Service
Department of the Treasury
401 14th Street, SW.
Washington, DC 20227
Telephone: 202-874-6800
Date: February 11, 1999
Richard L. Gregg
Commissioner
1. Purpose
This transmittal letter releases extensive revisions to I TFM 4-2000: Payment Issue Disbursing Procedures.
2. Background
This revision of I TFM 4-2000 embodies a number of significant changes in the payment issue process, a few of which are:
3. Procedural Changes
This revision of I TFM 4-2000 formalizes a significant number of changes in the procedures for payment issue, that have been introduced since the last major revision of this chapter.
4. Page Changes
Remove
Table of Contents for Volume I
Table of Content for Part 4
I TFM 4-2000
Insert
Table of Contents for Volume I
Table of Content for Part 4
I TFM 4-2000
5. Effective Date
6. Inquiries
Any questions concerning this transmittal letter should be directed to:
Disbursement Management Division
Operations Directorate
Financial Management Service
Department of the Treasury
401 14th Street, SW.
Washington, DC 20227
Telephone (202) 874-6800
Date: February 9, 1998
Richard L. Gregg
Commissioner
