Vol 1 - Part 2 - Chapter 2500 EXPENDITURE TRANSACTIONS BETWEEN APPROPRIATION, FUND, AND RECEIPT ACCOUNTS This chapter provides instructions for completing transactions between two or more different ap- propriation, fund, and receipt accounts classified as expenditure transactions. Section 2510 - Introduction These transactions include-- o Withdrawals and credits between accounts. o All transfers between budgetary and nonbudgetary accounts. o Annual travel advance adjustments. o Adjustments to correct errors in expenditure transactions. o Withdrawals and credits between accounts not specifically defined as "nonexpenditure transactions." The following two procedures for processing ex- penditure transactions are prescribed: (1) a procedure for completing withdrawal and credit transactions without sending a check to the agency receiving credit (Section 2525), and (2) a procedure for transactions where payment by check is required (Section 2530). Treasury checks will not be used as a payment method between agencies that can accept a transfer by using SF 1081: Voucher and Schedule of Withdrawals and Credits (Section 2525). This chapter does not address withdrawals and credits of the following types: (1) nonexpenditure transactions or any adjustment of such transactions (I TFM 2-2000), or (2) simultaneous charges and collections of intragovernmental transactions under the Simplified Intragovernmental Billing and Collection (SIBAC) System (I TFM 6-5000). Section 2515 - Types of Expenditure Transactions Addressed in This Chapter The term "expenditure transactions," as used in this chapter, means withdrawal from one account and credit to another account when both sides of the transaction will be recorded in the central accounts of the Financial Management Service (FMS) as an expendi- ture and repayment or receipt as stated below. 2515.10 - Payments to Other Appropriations and Funds as Reimbursements or Advances These transactions result in the merger of funds in a receiving account. Payments made in this type of transaction usually liquidate obligations for goods and services, which further the purpose of the paying account. Reimbursements or advances of this type are made under authority of Section 601 of the Economy Act, 31 U.S.C.686, or other provisions of law where the merger of funds in an appropriation or revolving fund is authorized even though there are no specific orders involved. These include-- o Payments for Reimbursable Goods and Services - These are payments made by one account as a reimbursement to another account for goods and services that have been provided on a reimbursable basis. Reimbursements for goods and services provided by one agency to another should be made promptly after delivery on the basis of invoices rather than by advance payments. o Advance Payments Required by Law - These transactions are required by a specific law, by which a determined amount is to be transferred from one agency and merged with a specific account of another agency. The amount is payment in advance for goods and services that will be provided by the second agency. o Advance Payments to Certain Revolving and Working Capital Funds - These are transactions authorized by law, by which certain revolving and working capital funds are permitted to request payment for goods and services in advance of delivery. These advances represent a liability of the revolving or working capital fund pending delivery of the goods and services. o Advance Payments to Management Funds - Management fund accounts are authorized by specific laws to receive advances from appropriations to ease accounting for and administration of intragovernmental activities. These accounts are classified either as annual or no-year accounts, depending on the circumstances. o Advance Payments to Consolidated Working Funds - Advances for goods and services to be provided within the same fiscal year by the performing agency through use of its own facilities may be made to "consolidated working fund" accounts of the performing agency under Section 601 of the Economy Act, 31 U.S.C. 686. This method of financing reimbursement for goods and services provided by one agency to another should be used only in instances where arrangements for current billings and reimbursements would be impractical. 2515.20 - Transactions Between Budgetary and Nonbudgetary Accounts Transactions representing withdrawals and credits between a deposit fund account and an account in any other fund group will be classified as expenditure transactions. 2515.30 - Annual Travel Advance Adjustment Adjustments between the prior and current year appropriation for the amount of outstanding travel advances are expenditure transactions to be charged to the current year's appropriation. These adjustments are treated in the central accounts of Treasury as repayments and expenditures, respectively. Section 2520 - Payments to General Services Administration (GSA) The majority of GSA billing is accomplished under SIBAC (I TFM 6-5000). However, when SIBAC is not used, GSA Form 789: Statement, Voucher, and Schedule of Withdrawals and Credits, is the form most frequently used by GSA to bill agencies for materials and services (Appendix 1). Caution should be exercised by the paying office to show the Agency Location Code (ALC) on this document (I TFM 2-3300). Agencies currently required to make payment by check will process the payment of the billing document through their related disbursing officers according to established disbursement procedures. Agencies within the Treasury disbursing area will follow the revised procedures stated in Section 2525 and process GSA Form 789 in the same manner as an SF 1081. Section 2525 - Expenditure Transactions Not Requiring Payment by Check This section applies to transactions that affect only ALCs of the departments and agencies for which Treasury financial centers disburse, and that can be accomplished without the use of a check or the payment of funds from Treasury. 2525.10 - Expenditure Transactions and Adjustments Processed Entirely Within an ALC Optional Form 1017-G: Journal Voucher, or other agency approved journal voucher form (Appendix 1) will be used to effect expenditure withdrawals and credits or adjustments between appropriation, fund, and receipt accounts when the transactions affect only the accounts of the same ALC. The expenditure withdrawals and credits or adjustments covered by Optional Form 1017-G or other journal voucher form will be included in the SF 224: Statement of Transactions, provided to FMS. This adjustment journal voucher form will not be sent to FMS. 2525.15 - Expenditure Transactions and Adjustments Between Agencies Within the Treasury Disbursing Area The SF 1081 is prescribed for use as a combined billing and payment document for interagency payment transactions by agencies within the Treasury disbursing area (agencies that report on SF 224: Statement of Transactions) to process expenditure withdrawals and credits between appropriation, fund, and receipt accounts (Appendix 1). A suggested print layout of a computerized version of SF 1081 (SF 1081-EDP) which is for Governmentwide use, is also in Appendix 1. When an SF 1081 is appropriate for use, neither an SF 1166: Voucher and Schedule of Payments, nor a Treasury check will be used to effect the transaction. 2525.20 - SF 1081: Voucher and Schedule of Withdrawals and Credit The SF 1081 will be used by agencies within the Treasury disbursing area to conduct interagency expenditure transactions. The form is a four-part, prenumbered accounting document that is distributed as follows: "Original"- Send to customer for payment. "Duplicate Copy"- Send to customer for retention. "Triplicate Copy"- Send to customer,who will return to billing office after certification as the paid copy. "Quadruplicate Copy" - Retained by billing office as pending. 2525.25 - Interagency Business Transactions Agencies that conduct frequent and repetitive monthly business transactions via agreements or memoranda of understanding are urged to retain those agreements or understandings under SF 1081 processing. Where such agreements do not exist, but would ease processing, it is suggested that the agencies conclude such agreements among themselves. 2525.30 - Responsibilities of the Billing Agency The billing agency must bill via the SF 1081. The billing agency must insure accuracy of billing documents to avoid disputes and errors. The billing agency must also insure that the appropriation to receive credit is clearly and correctly indicated. After reconciliation, if the billing agency discovers that credit has not been received from the customer agency, the billing agency must contact the customer agency. Instructions for disputed or erroneous transac- tions are discussed in Paragraph 2525.90. 2525.35 - Preparation of SF 1081 This form will be initiated by the billing agency (agency to receive funds). The billing agency will com- plete sections identifying the name, ALC, and mailing address of the accounting station that will receive credit; the appropriation, fund, or receipt account to be credited; and the name, ALC, and mailing address of the agency to be charged. The billing agency will indicate the transaction date and the billing office voucher number. Details or reasons for the bill will be indicated or supported by required documents. The document will be completed by indicating a billing office contact. The quadruplicate copy (billing office copy) of the SF 1081 will be retained as pending by the billing office. Agencies are advised that the Federal Account Symbols and Titles (FAST) book is a supplement to the TFM. Also, agencies should avoid billing under certain receipt account symbols as they cannot be reported by another agency. If agencies select to bill all activity under the F3875: Budget Clearing Account, those transactions must be cleared by the close of the year and classified to the appropriate account. 2525.40 - Transmittal of SF 1081 On completion and verification of prepared SF 1081 documents, the billing agency will send an SF 1081 to accounting stations or locations chosen by the customers. Billing documents must be received by the customer no later than the 22nd calendar day to insure payment in that accounting month. Billing documents received after the 22nd calendar day will be processed by the customer in the next accounting month. Billing offices should combine transactions to reduce the volume of documents and to avoid the volume of minimal amount transactions. 2525.45 - Treasury Reports FMS will continue to send FMS Form 6652: Statement of Differences - Disbursing Office Transactions, to agencies; however, SF 1081 transactions will not appear in the Treasury Disbursing Audit. Agencies must use FMS Form 6653 or 6655 to reconcile interagency transactions (see Contacts page). 2525.50 - Responsibilities of the Customer Agency The customer agency will complete each SF 1081 received as follows: Enter voucher number (customer office), appropriation to be charged, the accounting month in which the transaction will be reported, and the amount, which must agree with the billed amount. The customer agency will verify the transaction as being proper for transfer to the billing agency and the designated officer will certify the SF 1081 and indicate the representative to be contacted. The triplicate copy (accomplished copy) must be returned to the billing office to be used in reconciliation. The customer office will keep the original and duplicate copies of the SF 1081. No copies of the SF 1081 will be sent to FMS. 2525.55 - Payment Customer agencies will complete payment of the SF 1081 by reporting both the charge to their appropriation and the credit to the billing office's appropriation on their SF 224. This entry will be reported in Section I, and both the charge and credit amounts must agree. The customer must report the trans- action in the accounting month that the customer's office has indicated on the SF 1081, which was returned to the billing office. Customer agencies must insure that the appropriation symbol indicated by the billing office to receive credit is correctly cited on the SF 224. By certification of the SF 1081, the customer agency will insure that the transaction has been com- pleted by reporting to FMS the SF 224. 2525.60 - Batch Transmittal of Paid Documents When multiple SF 1081 documents are to be transmitted by either a billing office, or a customer to another office, the completed documents should be batched by using the FMS Form 5908 "Journal Voucher Batch Transmittal" (Appendix 1). The agency will com- plete the batch card (number, date, item count, total dollars, and accounting period). Agencies should insure that documents, either individual or batched, are sent to the accounting office or to the individual or office designated on the SF 1081. 2525.65 - Disputes and Erroneous Transactions The following are the recognized techniques to account for disputes and erroneous transactions: Incorrect Billing - Customer agencies that receive SF 1081 billing documents that are immediately deter- mined to have been sent in error to the wrong customer, should contact the billing office and expedite the return of these documents to the billing office indicating that they have been sent in error. Dispute of Partial Billed Amount - Customer agencies that receive SF 1081 billing documents containing items or amounts not immediately verifiable, or that appear to be in dispute, must complete the transaction as billed and file a claim with the billing office. For error correction, disputes will be treated as new business. The customer will prepare a new SF 1081 citing the original document and send it to the billing office. The billing office will generate credit to this customer's appropriation on the billing office's SF 224 and will confirm with the customer. At no time will the document received by a customer office be altered. Customer agencies will have 60 days from the transaction date to resolve any disputed item. All agencies are advised that payment of a document where a claim for refund is made does not constitute a violation of antideficiency responsibilities. Dispute of Total Bill - Customer agencies receiving bills in which the total amount is disputed should contact the billing agency to determine the nature of the bill. If it is an error, the customer should return the bill to the billing agency. The customer should treat the bill as a valid transaction if it is determined that the bill represents an advance payment. Agencies that are involved in repetitive monthly business are advised to secure agreements to reduce the volume and frequency of disputes and also to combine billing where possible to minimize the frequency of billing. 2525.70 - Reconciliation to FMS Reports After the submission of monthly SF 224 reporting, FMS will furnish to agencies either the FMS Form 6653: Undisbursed Appropriation Account, or the FMS Form 6655: Unavailable Receipt Account Ledger. The billing agency will use these reports to verify that customer reporting to the particular appropriation, fund, or re- ceipt symbol has been completed. If the reports show a discrepancy between amounts reported by a customer ALC and the amount confirmed the billing office should immediately contact the customer office to determine the reason for the discrepancy. If it is determined by the agencies that FMS has made the error, the billing office should contact FMS (see Contacts page). Section 2530 - Expenditure Transactions Requiring Payment by Check 2530.10 - Applicability This section applies to transactions where the paying or receiving agency is not in the Treasury disbursing area (agencies not submitting SF 224), requiring that payment be made by check. This section does not apply to the journal voucher system for payment of civil service retirement benefits, group life insurance, or health benefits (I TFM 3-3000). 2530.20 - Rendition of Bills When payment by check is required, agencies will charge other Government agencies on an SF 1080: Voucher for Transfers Between Appropriations and/or Funds, or on a charge form of their own design, which has been approved by Treasury and GSA (I TFM 1-2000). SF 1081 will not be used. SF 1080 is designed for use as a charge document and basic voucher when settlements between fund accounts are to be made by delivery of checks to the office receiving funds (Appendix 1), and at least one of the fund accounts is outside the Treasury disbursing area. A print layout of a computerized version of SF 1080 (SF 1080-EDP) for Governmentwide use is also shown in Appendix 1. 2530.30 - Preparation of SF 1080 When an SF 1080 is to be used as the charge document and disbursement voucher, it will be initiated by the agency receiving the funds, which will complete the form down to the "Certificate of the Office Charged" section. The full address to which the checks and copies of vouchers are to be mailed must be shown, to include the name of building, street number, and room number. The original and two copies will be sent to the office charged. The office receiving the funds will keep a copy of the SF 1080 pending receipt of the check. The agency charged will add the appropriation or fund account symbol to be charged and will certify the form. 2530.40 - Agencies Using Other Approved Charge Forms When a Treasury and GSA approved charge form is used in lieu of an SF 1080 (Paragraph 2530.20), each invoice will show, in addition to the charge information, the symbol of the appropriation or fund to be credited and the address where the check is to be sent by the paying office. In addition to the above information, if agencies use an identification number when charging other agencies, this should also be shown on the SF 1080. If no identification number is available, an original and two copies of the charge form will be sent to the paying office; if an identification number is used, only an original and one copy will be sent. 2530.50 - Payment and Collection of Charges The office charged will process payment through its disbursing center according to established disbursement procedures. For payment identification, the disbursing center will transmit one copy of the charge document (SF 1080) with the check when it is sent to the office receiving funds. If the office receiving funds uses an identification number, this number will be placed on the check by the disbursing center in lieu of sending a copy of the SF 1080. Deposit of checks delivered to offices receiving funds will be made according to established collection procedures. Section 2535 - SF 1081 Certification 2535.10 - Establishment of Certification Authority Agencies may administratively designate employees as certifying officers to certify SF 1081 transactions. Notification to FMS of the designee is not required. Agencies should ensure that designated employees are familiar with the procedures and responsibilities for completing interagency business transactions. CONTACTS FMS Form 5908 can be obtained from-- Property and Supply Section Logistics Management Division Financial Management Service Department of the Treasury Ardmore East Business Center 3361-L 75th Avenue Landover, MD 20785 (Telephone 301-344-8577) Inquiries concerning the general contents of this chap- ter should be directed to: Systems Development Directorate Financial Management Service Department of the Treasury 3700 East-West Highway Room 1005A Hyattsville, MD 20782 (Telephone 202-874-7910) Inquiries concerning the processing of SF 224 data by FMS should be directed to: Budget Reports Branch Reports Management Division Financial Management Service Department of the Treasury 3700 East West Highway Room 518D Hyattsville, MD 20782 (Telephone 202-874-9880) APPENDICES LISTING App. No. Form Title 1 GSA Form 789 Statement, Voucher and Schedule of Withdrawals and Credits Optional Form 1017-G Journal Voucher SF 1080 Voucher for Transfers Between Appropriations and/or Funds SF 1080-EDP Print Layout (SF 1080-EDP) Print Format Requirements (SF 1080 and SF 1081) SF 1081 Voucher and Schedule of Withdrawals and Credits SF 1081-EDP Print Layout (SF 1081-EDP) 2 FMS Form 5908 Journal Voucher Batch Transmittal APPENDIX NO. 1 GSA Form 789 Statement, Voucher and Schedule of Withdrawals and Credits Optional Form 1017-G Journal Voucher SF 1080 Voucher for Transfers Between Appropriations and/or Funds SF 1080-EDP Print Layout (SF 1080-EDP) APPENDIX NO. 1 PRINT FORMAT REQUIREMENTS (SF 1080 and SF 1081) Agency SF 1080 and SF 1081 vouchers generated by computer equipment must adhere to the requirements set forth below: (1) The print layout is to be followed as closely as possible. These forms are designed for 10 characters to the inch, printers utilizing a maximum of 75 positions or 7 1/2 inches and 8-1/2-inch-wide stock paper. (2) The first line of print should be spaced 3/4 inch from the top of the page. (3) The dimensions of the forms will not be more than 8 1/2 by 11 inches in size. SF 1081 Voucher and Schedule of Withdrawals and Credits SF 1081-EDP Print Layout (SF 1081-EDP) APPENDIX NO. 2 FMS Form 5908 Journal Voucher Batch Transmittal