1999 FSC Agent Cashier Overview

1
Agent Cashier Accountability
VA FSC Austin
Lori Brock (512)-460-5152 Bob Robitaille
(512)-460-5036
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Agent Cashier Overview

• Introduction
• Birth of a Policy
• Treasury vs VA Terminology
• Treasury Financial Manual
• VA Handbooks
• Designations
• Personal Liability

• Cash Advances
• Bank Accounts Replenishment
• Collections and Deposits
• Losses, Overages and Irregularities
• Limited Payability
• Convenience Checks
• Review SF 1149

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Agent Cashier Accountability

• What is an Agent Cashier?

• A cashier is an officer or federal employee of
  the federal government who is
• 1. designated as a cashier by an approving
  official
• 2. authorized to disburse cash or carryout other
  cash operations

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Agent Cashier Accountability

• What an Agent Cashiers Responsibilities?

• 1. keep all funds safe and separate from other
  funds
• 2. do not comingle your own money, or any other
  money with the Governments funds
• do not use the funds for your own purpose
• do not deposit public money into financial
  institutions unless you are authorized to

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Birth of a Policy
6
Circulation of Money
7
Treasury vs VA Terminology

• FMS - Financial Management Service
• Imprest Fund
• Principal Imprest Fund Cashier
• Alternate Imprest Fund Cashier
• Sub-cashier
• Alternate Sub-cashier

• FMS - Financial Management System
• Cash Advance
• Class B Agent Cashier
• Class B Alternate Agent Cashier
• Imprest Fund Cashier
• Alternate imprest fund cashier

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Manuals

• Treasury Financial Manual (TFM)
• Manual of Procedures and Instructions for
  Cashiers (tab 8)
• VA Directives and Handbooks

9
Treasury Financial Manual (TFM)

• What is the TFM?
• The TFM provides the regulations that all Federal
  Agencies must follow.
• Manual of Procedures and Instructions for Cashier
  (Cashiers Manual)
• Part 4 - 3000, 6000, 8000
• Part 5 - 4000
• Part 6 8000

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VA Directives and Handbooks

• VA Policy and procedures based on Treasury
  Regulations 4000 series (4000, 4010, 4020, 4030,
  4070, 4070.1, 4070.2)

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VA Handbooks

• Tab
• 1 VA Handbook 4000 Administrative Fiscal
  Procedures
• 2 VA Handbook 4010 Agent Cashier Procedures
• 3 - VA Handbook 4020 Personal Funds of Patients
  Procedures
• 4 - VA Handbook 4030 Imprest Fund Cashier
  Procedures
• 5 - VA Handbook 4003 Travel Reimbursement
  Procedures
• 6 - VA Handbook 4070.1 Collection Mechanism
• 7 - VA Handbook 4070.2 Disbursement Mechanism

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Designations

• Legal accountability of disbursing agents
• Complies with accountability regulations of the
  Treasury
• Maintains record of current Directors and
  Cashiers
• Allow control of cash and checks to be closely
  monitored.

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Designations Forms

• FMS 2958
• Designates Directors
• To be submitted every two years
• Once a Director is revoked he/she no longer has
  authority to designate personnel

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Designations Forms (cont.)

• OF 211
• Designates Agent Cashiers and Alternate Agent
  Cashiers
• Valid until revoked
• Memo
• Designates social workers, supply personnel and
  others
• Valid until revoked

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Personal Liability

• Safeguarding Funds
• Office space will allow proper protection for
  funds and other valuables
• Combinations and Keys
• Only authorized officials have access to the safe
  and cash boxes inside of the office

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Personal Liability (cont.)

• Changing Keys and Combinations
• Combinations and keys are changed immediately
  after any emergency entry
• Combinations and door locks will be changed at
  least once a year and when there is a change of
  incumbents

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Personal Liability (cont.)

• Who is liable?
• Whoever is acting as the disbursing agent is held
  liable for all funds.
• When are you liable?
• You are liable until the advance is transferred
  to another cashier or is returned to the Agent
  Cashier Accountability Section (FSC)

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CASH ADVANCES
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Cash Advances to Agent Cashiers

• Cash advance limited to amount of cash used over
  a period of three weeks
• Integrated sites multiple fund distribution
• Personal liability for all receiving funds

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Cash Advances to Others
Collection Clerks
Social Workers
Alternate Agent Cashiers
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Cash Advances to Collection Clerks

• Limited to making change

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Petty Cash and Imprest Fund Advances

• Government Purchase Cards should be used in lieu
  of cash.

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Cash Advances to Social Workers

• Advance Maximum 50.00
• Veterans Travel
• Veterans Family Travel
• Telephone calls

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Understanding the Cash Advance

• The Cash Advance is limited to the minimum amount
  of cash required to meet the needs of the
  veterans.
• The amount is base on a three week need, bringing
  the monthly usage rate to 130.
• Rating factors
• 130 green 129-115 yellow 114-0 red

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Understanding the Cash Advance (cont.)

• Condition which require decrease in the advance
• Sta. Adv. Nov. Dec. Jan.
  Feb. Mar. Apr. Total
  Avg. Usage
• xxx 55,000 52,312 54,144 46,973 52,704
  56,882 53,020 316,035 52,673 96
• 6mo. avg. 52,673 1.3 (130) 40,518 current
  adv. 55,000 lt 40,518 14,482
• Required decrease would be 14,500 bringing
  the monthly usage avg. to 130
• With the exception for ROs, which are
• required to maintain a 100 turnover rate.

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Understanding Cash Advance (cont.)
Determining station usage, increase or decrease
of cash advance An increasable condition Sta.
Adv. Nov. Dec. Jan.
Feb. Mar. Apr. Total
Avg. Usage xxx 20,000 49,043 46,872
41,264 42,382 50,522 37,427 267,510
44,585 223 6mo. avg. 44,585 1.3 (130)
34,296 current adv. 20,000 lt 34,296
(14,296) Increasable amount would be 14,300
bringing the monthly usage avg. to 131
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EFT Ledger

• Agent Cashiers are replenished via electronic
  funds transfer (EFT)
• Cashier must keep accurate log for EFT
• Date replenishment is requested
• Date replenishment is input
• Date money is posted in bank

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Transfers

• Cashier to Cashier
• Committee of Three

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Transfer Procedures

• Once all funds are fully accounted for
• all cash will be returned to cashier and placed
  in cashiers cash box
• all sub-vouchers will be placed with the
  cashiers sub-vouchers
• memorandum receipts held by the cashier will be
  returned to those returning their advance

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Replenishments

• Before submitting the OF 1129, a verification of
  the advance must be completed.
• The OF 1129 must be in the name of the cashier
  with legal authority and signed.
• Status of Fundssection must always be complete

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Agent Cashier Numbers (ACs)

• AC s will be assigned in straight numerical
  sequence beginning at 1 for the beginning of
  each fiscal year
• Supporting documents for cash disbursements will
  be marked PAID immediately upon payment

32
End Of Month Accountability

• EOMs are to reflect the appropriation or fund
  changes in the accounting records and reports
  covering all cash items paid by the cashier each
  month.

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Bank Accounts

• The Department of Treasury authorized the VA to
  establish depositary accounts for the sole
  purpose of receiving Agent Cashier replenishments
  by Electronic Funds Transfer (EFT).

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Authorized Accessibility to Bank Accounts

• Establishment of Depositary Account includes
  letter signed by Director stating
• Monies are official funds of U.S. government
• The account is for EFT deposits only
• Cash and checks cannot be deposited into account
• No overdraft protection is allowed
• Fiscal/Finance Officer, Assistant Fiscal/Finance
  Officer, and Agent
  Cashier may access the account

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Authorized Accessibility to Bank Accounts (cont.)

• A signature card must be obtained from the
  banking facility and accompany the Directors
  letter with the three accessible persons
  signatures only.

36
Overdrafts

• Checks can never be written against cashier
  accounts if the account balance is not sufficient
  to cover the amount to be deducted.
• If overdrafts occur, the cashier will be
  responsible for all bank charges incurred.

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Daily Verification

• The Agent Cashiers advance and bank account must
  be reconciled daily by counting all funds and by
  speaking directly with bank personnel.

38
Co-Mingling

• Depositary accounts are established for the sole
  purpose of receiving Agent Cashier replenishments
  in the form of electronic fund transfers. Cash
  advances (appropriated funds) and cash
  collections (trust funds) can NEVER be commingled.

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Collections

• Forms of Remittance
• Cash, checks, drafts, travelers checks, express
  money orders, telegraph money orders, post office
  money orders, and credit cards.
• Personal Checks
• Will not be accepted into Personal Funds of
  Patients account if over 100.00.

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Collections (cont.)

• Deferred Credit Period - time given to personal
  checks to ensure payment by the bank from which
  it is drawn before crediting the Personal Funds
  of Patients account.

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Collections and Deposits

• If it is known that the deposits will be
  delivered after the cutoff time, the next days
  date must be shown.
• EXAMPLE 1(a) Cutoff time 200 PM
• Deposit delivered before cutoff, Monday
• SF 215 Block 2s Date Mondays date
• EXAMPLE 1(b) Cutoff time 200 PM
• Deposit delivered after cutoff, Tuesday
• SF 215 Block 2s date Wednesdays
• date

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Collections and Deposits (cont.)

• If deposits are made on the last
• workday of the month and delivered after
• the cutoff time, block 2 should reflect
• the next business day.
• EXAMPLE
• Cutoff time 200 PM
• Deposit delivered 230 PM Friday, May 29th
• SF 215 Block 2s Date Monday,
• June 1st

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Frequency of Deposit

• gt 5,000.00 - deposit on a daily basis
• lt 5,000.00 - may be held until amount
  approaches 5,000.00
• A deposit will be made at least once a week
  regardless of amount
• Personal checks under deferred credit period must
  be deposited no later than next business day

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Frequency of Deposit (cont.)

• All Treasury checks must be deposited on separate
  SF 215, to the nearest FRB
• MCCF, Insurance Collections, and Personal Checks
  Deferred received must be deposited and posted to
  FMS within 24 hours of receipt

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Check Cashing and Other Negotiables

• Acceptable negotiables
• Disabled American Veterans (DAV)
• Checks drawn on the U.S. Treasury
• Postal money orders
• Checks drawn by state agencies
• Certified checks

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Check Cashing and Other Negotiables (cont.)

• Travelers checks
• Telegraphic money orders
• Bank drafts
• Bank money orders
• Express money orders

47
Money Orders

• Cashiers may only purchase money orders to
  replace cash deposits. Fees for the purchase of
  money orders will be paid from the Agent Cashiers
  advance.

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LOSSES, OVERAGES, AND IRREGULARITIES
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Reporting Irregularities

• When any irregularity of disbursing funds or of
  other official funds occurs, all facts should be
  immediately reported to the Agent Cashier
  Accountability Section for review and decision on
  whether further action is necessary.

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Reportable Conditions

• Physical loss of public funds
• Illegal expenditures
• Fraud
• Forgery
• Alteration of vouchers/official documents
• Improper expenditure practices
• Improper accounting for receipts or collections
• Improper accounting for cash advance or PFOP
• Lost deposits
• Any other irregularity involving U.S.
  Government. funds

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Theft

• When loss due to theft occurs, contact
• Agent Cashier Accountability Section
• U.S. Secret Service
• Federal Bureau of Investigation
• Inspector General

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Counterfeit

• The amount of counterfeit must be treated as a
  reduction in administrative collections and must
  not be reflected in the cashiers advance.

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Determining Fault or Negligence

• If an employee is found at fault, restitution
  will be made from the employees personal funds.

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Directors Report

• Statement of Facts
• Copy of supporting Documents
• Description of how irregularity occurred
• Significant procedural mistakes and corrective
  measures if taken
• Recovery information
• Any other pertinent information

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Requesting Relief

• Agent Cashiers Advance
• Losses lt 200.00, Station Director may grant
  relief
• Losses gt 200.00, Report to Agent Cashier
  Accountability Section
• Personal Funds of Patients (PFOP)
• All shortages must be reported to Dept. of
  Veterans Affairs Central Office
  and the Agent Cashier Accountability
  section

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Losses and Overages on the OF 1129

• Until notified that relief is granted or
  restitution is made, shortage/overage will be
  reported in the Status of Fund total
• Overages will be deposited in the general fund
  receipt account 361060, forfeitures of unclaimed
  money and property

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Limited Payability

• What constitutes limited payability?
• Checks that are one year old from the date on the
  check.

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Payable Time Limit

• Treasury checks are valid up to one year from the
  date of the check.

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Processing Non-Negotiable Checks

• Stamp VOID on face of check
• Prepare a VA Form 1409 in triplicate
• Original and one copy with check forwarded to
  stations accounting office
• One copy will be kept by cashier for their
  records

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CONVENIENCE CHECKS
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Convenience Checks Dos

• Do use in place of cash
• Do maintain inventory and log
• Do use for PFOP final withdrawals
• Limited amount (VA 4010 or local policy)

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Convenience Checks Donts

• Dont cash or deposit (your own)
• Dont make payable to yourself or other cashiers
• Dont exchange for accommodation exchange checks

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Convenience Checks

• What you need to know!
• Security
• Internal Controls
• Check Writing Procedures
• Accounting Procedures
• Voiding Checks
• Stop Payment Requests

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Security

• Each disbursing officer will be responsible for
  maintaining a sufficient inventory of convenience
  checks to meet the facilitys needs.
• They will keep a log of all checks received and
  issued.

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Security (cont.)
A report reflecting the checks issued or
voided and the inventory on hand will be
submitted to the designated employee with the
legal responsibility and accountability for the
convenience check stock each month.
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Security (cont.)

• Convenience checks are accountable documents and
  must be safeguarded at all times and secured in
  the same manner as other fiscal accountable
  items.
• They are also subject to unannounced audits, as a
  part of the imprest fund activity.

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Internal Controls

• Disbursing officers are administratively
  accountable for each check entrusted to them.
• They must ensure that all vouchers presented for
  payment under the convenience check system are
  reviewed for completeness and accuracy, and that
  proper procurement procedures are followed.

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Internal Controls (cont.)

• Disbursing officers will complete and sign only
  those checks specifically assigned to them.

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Check Writing Procedures

• Documentation required by VA for the issuance
  of a check is the same as if the payment was in
  cash. Sufficient documents such as, purchase
  orders, etc. must be in evidence before checks
  are issued.

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Check Writing Procedures (cont.)

• Each completed check must contain the following
  
• The station is required for identification,
  place your station in memo area of the check.
• Each check is pre-printed with a sequential
  serial and must be used in numerical order. All
  checks must be accounted for, including voided
  checks.
• On the memo line, place a very brief description
  of the goods or service purchased, and/or
  applicable data, such as obligation number.

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Check Writing Procedures

• Cont.
• In the date block, enter the date on which the
  check is issued.
• In the pay to order block, enter the name of
  the payee, i e,vendors, etc.
• In the amount block, enter the exact amount of
  payment.
• The signature block, can only be signed by the
  individual authorized to issue that series of
  checks.

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Accounting Procedures

• Prior to the acquisition, it is necessary for the
  funds to be obligated.
• Purchase is then made, after the obligation has
  been processed.

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Voiding Checks

• Why would I void a check?
• If errors occur in any field except the money
  field, they may be corrected and initialed.
• If errors occur in the money field, the check
  must be voided.
• Checks that have not been cashed or returned by
  the payee, must be voided.

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Voiding Checks (cont.)

• How do I void a Check?
• To void a check, stamp or write in ink diagonally
  across the check
  VOID NOT
  NEGOTIABLE.
• Do not destroy the check nor its carbon, or
  obliterate the check number
• If the check has been signed, the signature
  should be obliterated.

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Stop Payment Requests

• How do I get a payment stopped?
• The disbursing officer must immediately contact
  US Bank, who will make an annotation to the check
  master file to prevent acceptance during the
  daily validation runs.
• All verbal request must be followed up in writing
  on the US Bank Action Request form.
• The procedure outlined above, will also be
  followed for lost or stolen checks.
• US Banks Customer Service Line 1-800-xxx-xxx

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Understanding the SF 1149
SF 1149
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What is the SF 1149?

• Statement of designated depositary account. Its
  purpose is to perform the monthly reconciliation
  of the Agent Cashiers bank account.

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Flowchart for Reconciliation of SF 1149