Date: July 13, 2000
Sunset Review: July 13, 2004
SUBJECT: Expenses for Unforeseen Confidential Emergencies
1. PURPOSE. This Directive sets forth policy and guidelines for the control, processing and certification of expenditures for unforeseen emergencies of a confidential nature ("confidential emergency funds") that are chargeable to the Departmental Offices (DO) Salaries and Expenses (S&E) Account.
2. SCOPE. This Directive applies to all bureaus that incur expenses for unforeseen emergencies of a confidential nature that cannot be paid with vouchered funds and are chargeable to the DO appropriation for "unforeseen emergencies of a confidential nature, to be allocated and expended under the direction of the Secretary of the Treasury and to be accounted for solely on his certificate." For the purposes of this Directive, the term "bureau" shall be defined to include DO. This Directive does not apply to the Office of Inspector General or the Treasury Inspector General for Tax Administration. There are separate appropriations for"unforeseen emergencies of a confidential nature" of these offices.
3. POLICY. It is the policy of the Department of the Treasury that:
a. the confidential emergency funds are under the control of the Secretary and shall be used only when the use of vouchered funds would jeopardize the safety or the confidentiality of an investigation;
b. the funds shall be used primarily in the most sensitive law enforcement investigations to protect cooperating defendants, witnesses, and informants where strict confidentiality is required to protect their identities and the identifying details of the investigation; and
c. the funds may also be used for other law enforcement purposes of a strict confidential nature when there is an unforeseen emergency.
4. RESPONSIBILITIES.
a. The Under Secretary (Enforcement) shall apply the appropriate use criteria established in this Directive in the review of all records of confidential emergency fund expenditures maintained by bureaus or documented on vouchers or certificates.
b. Heads of Bureaus and Assistant Secretary (Enforcement) for matters relating to the Office of Foreign Assets Control are accountable for confidential emergency funds, and shall:
(1) establish written procedures to assure appropriate use and accountability of funds;
(2) establish security procedures to safeguard information regarding expenditure of these funds and ensure that supporting documentation is not made public or included in any reports going outside the bureau;
(3) serve as responsible official for duties to include, but not limited to:
(a) safeguarding the vouchers from unauthorized use;
(b) storing vouchers securely; and
(c) ensuring vouchers are completed properly and submitted to the Under Secretary (Enforcement) at the times required by this Directive. This responsibility may be assigned, in writing, to an official at the assistant bureau head level or to the bureau chief financial officer;
(4) personally certify that expenditures are appropriate. This responsibility shall not be delegated or reassigned;
(5) ensure that all vouchers and supporting documentation are made available to the Office of Enforcement, DO, for review and provide sufficient information regarding use of the funds to permit verification of certification; and
(6) return outstanding advances greater than $1,000 in cases where there have been no expenditures for at least one year, unless an extension is granted in writing by the Under Secretary (Enforcement).
5. EXPENDITURES NOT CHARGEABLE TO CONFIDENTIAL EMERGENCY FUNDS. The following expenditures are not of a confidential character and shall not be processed as such.
a. Representation Expenses. Expenditures whose character and primary purpose is for representational or entertainment related activities, including receptions or banquets.
b. Gift or Award Expenses. Awards or gifts to any Federal employee.
c. Investigative Expenses. Expenditures for investigative and related expenses that can be effected through normal accounting and vouchering procedures without compromising the interests of the Department.
6. ALLOCATION OF CONFIDENTIAL EMERGENCY FUNDS. The Assistant Secretary for Management and Chief Financial Officer (CFO) is responsible for directing allocations for unforeseen emergencies, and accounting for expenditures. Funds will be advanced to requesting bureaus on a quarterly basis from the Treasury appropriation, DO (S&E) account, based on the following guidelines.
a. Within ten days after the close of each quarter, heads of bureaus and the Assistant Secretary (Enforcement), for matters relating to the Office of Foreign Assets Control, shall submit a confidential payment voucher to the Under Secretary (Enforcement). PC-based versions, i.e., generated on LOTUS, WordPerfect, etc., of the payment vouchers may be submitted provided they include all the data elements specified.
(1) Each voucher shall certify past expenditures for the period covered and request any additional advances of funds for a period not to exceed one quarter. A voucher is required in all cases where bureaus carry an outstanding balance even if they do not have any expenditures or request additional advances for a quarter.
(2) Logs shall be attached to the voucher and list each expenditure by log number, amount, date of disbursement, and nature of the expense.
b. The Under Secretary (Enforcement) shall assure that the funds are needed and that expenditures were made in accordance with this Directive, certify the voucher, and forward the voucher only to the Assistant Director for Accounting, Financial Management Division (FMD), DO.
c. The Assistant Director for Accounting, FMD, shall review each original voucher for reporting consistency, reconciliation to outstanding balances, and funds availability if an advance of funds is requested. Vouchers failing to meet any of these conditions will be returned to the Office of Enforcement.
d. Vouchers meeting conditions described in the previous paragraph will be forwarded to the Assistant Secretary for Management and CFO for review and determination whether the voucher should be paid. Approved vouchers shall be returned to the Assistant Director for Accounting, FMD, who shall advance funds to the requesting bureau and/or record expenditures against the existing advance.
e. The Assistant Director for Accounting, FMD, shall notify the Office of Enforcement when a bureau has retained outstanding advances greater than $1,000 and has reported no expenditures for at least one year.
7. RECORDKEEPING REQUIREMENTS.
a. Receipts. A receipt shall be completed for each expenditure and signed by either the recipient or the case agent. The following information shall be recorded on the receipt or another document: (1) disbursement or expenditure log number; (2) case or investigation number; (3) requesting office; (4) case agent or requesting official; (5) purpose of expenditure and date requested; (6) amount and date of disbursement; (7) check number if applicable; and (8) name and title of responsible bureau official.
b. Incomplete Records. In rare instances when revealing all of this information would jeopardize confidentiality, as much information as possible should be provided before the responsible bureau official signs the document.
c. Retention of Documents. Confidential vouchers and supporting documentation shall be stored in a safe and shall not be removed except for authorized review. After review, such documentation shall be retained under lock for a sufficient time to ensure that the revelation of which would no longer compromise the personal safety and/or investigative interests.
8. AUTHORITY. Treasury Order (TO) 102-06, "Administering the Expenses for Unforeseen Emergencies of a Confidential Nature."
9. CANCELLATION. Treasury Directive 33-02, "Expenses for Unforeseen Confidential Emergencies," dated June 13, 1995, is superseded.
10. OFFICE OF PRIMARY INTEREST. Office of Accounting and Internal Control, Office of the Deputy CFO, Office of the Assistant Secretary for Management and CFO.
/S/
Lisa Ross
Acting Assistant Secretary for Management
and Chief Financial Officer