U.S. Geological Survey Manual

No. OFM 97-03

Date: October 9, 1996

Subject: Pre-Payment Audit Requirements and Guidelines

This Instructional Memorandum is addressed to all Federal Financial System (FFS) users processing payments in FFS. It is to remind you of your responsibility for reviewing the invoices you process, for verifying that they are valid requests for payment, and for ensuring that the FFS entries you make are timely and reflect all relevant information.

FFS users authorized to make payments are responsible for performing the same kind of document review and prepayment audit of invoices as is performed by the Office of Financial Management (OFM). You are responsible for meeting the terms of the Prompt Payment Act, as well as GAO guidelines for voucher examination and payment approvals. We are attaching for your information and reference the following documentation that provides guidance on your responsibilities. Please read this material and follow the instructions accordingly. It includes:

• Attachment 1 - Pre-Payment Audit Requirements & Guidelines. This is a quick-reference checklist prepared by OFM for your use in processing invoices, receiving reports, and purchase orders.

• Attachment 2 - GAO Title 7: Chapter 6 - Disbursements; Sections 6.4 Approval and Certification of Payment Documents; 6.5 Prepayment Examination of Vouchers; and, 6.6 Internal Controls over Disbursements. These sections summarize legal and accounting requirements for fiscal procedures. ONLY AVAILABLE IN HARD COPY.

• Attachment 3 - Prompt Payment Act Guidelines (OMB Circular A-125) -- explains agencies' responsibilities for ensuring payments are made within specified time frames, for taking discounts, and for paying interest penalties when payments are late. ONLY AVAILABLE IN HARD COPY. For further information on these responsibilities you may contact Melanie Farmer at (703) 648-7648 (or E-mail to mfarmer@usgs.gov) or Brenda Fulk at (703) 648-7654 (bfulk@usgs.gov).