4 FAH-3 H-350
UNITED STATES GOVERNMENT DEPOSITARIES
(CT:FMP-80; 08-28-2013)
(Office of Origin: CGFS/FPRA/FP)
4 FAH-3 H-351 GENERAL
(TL:FMP-2; 04-30-1995)
Establishment and operations of U.S. Government
depositaries abroad, including selection of depositaries and maintenance,
reconciling, and reporting of accounts are carried out in accordance with
requirements established herein.
4 FAH-3 H-351.1 Definitions
(TL:FMP-2; 04-30-1995)
Designated DepositaryA United
States or foreign commercial bank or banking institution which has been
designated by the Secretary of the Treasury as an official depositary to hold
U.S. Government (USG) funds for the account of the United States.
Designated Depositary AccountThe
checking account maintained with the designated depositary by a USG disbursing
officer or Class B cashier.
Designated Depositary CheckA
check drawn on the designated depositary payable from the designated depositary
checking account.
Confirmed DepositA deposit
transaction evidenced by a bank deposit ticket, slip or other deposit receipt,
which has been officially approved by the designated depositary showing the
date on which the deposit will be credited to the designated depositary
checking account.
Uncurrent Designated Depositary CheckA
check drawn on the designated depositary which is unpaid and outstanding
against the designated depositary checking account for at least one full fiscal
year after the fiscal year in which the check was issued, except where the
local laws provide that the negotiable period of a check is shorter.
Current Designated depositary Check.
A check unpaid and outstanding against the designated depositary checking
account for any time less than one full fiscal year after the fiscal year in
which the check was issued.
4 FAH-3 H-351.2 Establishing an
Account
4 FAH-3 H-351.2-1 Criteria for
the Selection of Banks
(TL:FMP-2; 04-30-1995)
a. Factors to be used in the selection of a new bank.
Services will be evaluated in descending order in the following three
categories:
(1) Category AServices relative to maintenance of the
operating account. Examples:
processing of checks and deposits
submission of bank statements (monthly or daily as required by USDO)
where possible and/or customary, return of all canceled checks
providing daily bank balance
processing funds transfer
stop payments fees if any
overdraft fees if any
(2) Category BOther services desired by Embassy.
Examples:
Providing accommodation exchange at Embassy
Services which are customary locally
(3) Category CPercentage of American ownership.
Example:
Preference will be given to American owned banks unless a local
banks arrangement is more advantageous to the US.
Treasury Financial Manual (TFM) Section 4-9030 requires
that operating account balances, or forfeiture of potential interest earnings
on the account, will not be used to subsidize banking services that would
otherwise be funded through the appropriation process, e.g. cashier services.
Minimum balances requested by the bank are to be avoided. The level of the
account balances will be determined solely by the disbursing requirements. To
meet this criteria, if the bank proposes, or the embassy requests, special
services under this category, and/or minimum account balances are proposed by
the bank, the evaluation process must include a finding that the balances are
consistent only with disbursing requirements, and are not set to produce extra
bank income to support the services rather than interest payments to the USG.
b. When should a bank account be considered to be
changed:
(1) A review of the arrangement with the designated
depositary should be performed annually.
(2) When the embassy is not satisfied with the service
being provided.
(3) When the embassy receives an unsolicited request
for the embassy bank account from a bank and that bank:
Offers a more beneficial banking arrangement than currently
received
Reflects a higher level of American ownership than the present
depositary
4 FAH-3 H-351.2-2 Solicitation,
Review and Designation Procedures
(TL:FMP-2; 04-30-1995)
a. When it has been determined that a bank solicitation
will be initiated, the embassy should advise the servicing USDO of the
embassys desire to re-bid the embassy bank account and request the USDOs
assistance.
b. The USDO will then send the embassy a questionnaire
to be further developed and refined to reflect the embassys particular needs.
c. The embassy will send a letter, with the
questionnaire attached, to all American-owned, as well as leading local banks,
advising the banks that the embassy is soliciting banking services. The letter
and questionnaire should contain particulars about the account, such as the
average balance estimated to be maintained, how it will be funded, the number
of checks written each month, any special banking services required (with
reference to the restriction on minimum balances from 4 FAH-3
H-351.2-1(a)), etc. If this information is not available at the embassy,
the embassy should obtain it from the servicing USDO. The letter should
explain that the questionnaire will be evaluated on the basis of the banks
response (using criteria outlined in 4 FAH-3 H-351)
in comparison with responses from other local banks. The letter will request
the bank to be prepared to enter into a written agreement regarding the
services the bank will provide. If the bank will not enter into a the embassy
understands will be provided by the banks. If special services are requested,
such as providing accommodation exchange on Embassy premises, the letter should
contain a disclaimer statement similar to the following:
(1) The embassy will not make good any dishonored
checks which have been accepted and negotiated by the bank. The embassy will
provide the best information available, or attempt to obtain the information,
on the current whereabouts of the makers of such checks, consistent with
applicable laws and regulations.
(2) Although the embassy exercises diligence in
maintaining security of property on embassy premises, the USG does not accept
liability for loss or damage to bank personal property kept on the Embassy
premises for the purpose of providing these services.
d. The embassy must establish a deadline for responses
which should take into consideration the urgency of the need. If there is no
immediate need to change banks, a 30-day deadline is recommended.
e. The embassy may wish to advise the banks that the
maintenance of the disbursing officers operating account may lead also to the
eventual transfer of nonofficial account(s) to the bank, if any exist at the
post. The embassy may wish to provide necessary background information on the
unofficial account(s), such as the number of account(s), average balances in
the account(s) etc. Should the embassy elect to provide this information, it
should be made clear to the banks that the post has no control over the
account(s), and that the unofficial account(s) may or may not move with the
embassy account. The bank should also be made aware that these accounts are
not in any way linked to the USDOs official account, and that the bank may not
charge the USDOs account for uncollectible items originally credited to or
drawn on other unofficial accounts.
f. In the process of selecting a depositary to maintain
the disbursing officers operating account, there are at least two times when
the embassy must communicate with the disbursing officer who services the
Embassy. The embassy must:
(1) Coordinate letters and questionnaires to be sent
to the financial institutions with the disbursing officer servicing the post
before canvassing financial institutions is initiated; and
(2) Send the servicing USDO the original responses
with the embassys recommendation of a banking institution for the USDO to
review the responses and comment on the embassys selection.
Along with the responses, the embassy should also prepare
and forward to the disbursing officer for review a memorandum that provides any
additional information helpful in making a selection. Preferences should be
stated with explanations. Special services required should be discussed,
including reasons and a statement that proposed balances are consistent with
disbursing requirements and should not result in forfeiture of interest or
extra income to the bank to support the services. A copy of the letter sent to
the financial institution should also be forwarded. The USDO may request
additional information from the embassy before submitting the
responses/recommendations to the Department.
g. The USDO, following review and approval of the
embassys selection, will then forward:
All bank bids
The embassys memorandum containing its choice and the
justification for the selection
A memorandum from the USDO to the Chief, Banking and Cash
Management Division (FMP/F/IFS/OFMO/BCM), stating concurrence/nonconcurrence
with the embassy selection, with additional USDO comments as appropriate
h. Upon receipt of the bid package from the USDO,
FMP/F/IFS/OFMO/BCM will review the bank bids to determine if the selected banking
institutions bid is the most beneficial bid, and if so, will request Treasury
to designate the selected banking institution (designated depositary),
including in the request a statement that the proposed depositary and the
account meet the criteria of TFM 4 9030.
i. Treasury Department will then prepare a letter
designating the selected banking institution as a DEPOSITARy of USG funds.
Treasury Department will send the letter to FMP/F/IFS/OFMO/BCM which in turn
will send the original letter and one copy to the embassy, and a copy to the
USDO. The embassy will present the original designation letter to the bank.
4 FAH-3 H-351.2-3 Actions
Necessary After a New Bank is Designated
(TL:FMP-2; 04-30-1995)
After a new bank is designated, the USDO must do the
following:
Sign signature cards, normally the USDO will make an imprint of
their signature die on the banks signature card.
Obtain new bank checks and determine if the bank will accept a
USDO universal check or if a special size and formatted check is required.
Coordinate all changes with FMP/F/FMS/FSRI/FR to insure that
software is adjusted accordingly.
4 FAH-3 H-351.3 Monthly Bank
Reconciliation
(TL:FMP-2; 04-30-1995)
The USDO obtains a monthly bank statement in duplicate
covering the full calendar month supported by paid checks from the local
depositary if available. If the bank does not provide the returned checks the
following statement must be added by a bank officer:
I certify that the above listed checks are correct and
represent checks paid by the bank and charged to the account shown on this
statement during the period covered by this statement. The original paid
checks are on file at the bank and will be maintained for a period of one year.
4 FAH-3 H-352 RECONCILIATION
(TL:FMP-2; 04-30-1995)
The USDO will perform a monthly reconciliation of each
general depositary account under the USDOs accountability. The reconciliation
will be performed in accordance with the instructions and internal controls in
the Disbursing Officers User Manual Section 8.0, which includes details for
EFT transactions. In addition to the instructions in the Disbursing Officers
User Manual, and the regulations which follow below for the processing of
checks, the USDO will review the account balances which appear on the bank
statements to insure that balances are being maintained only at levels
consistent with disbursing requirements in accordance with TFM 4-9030.
4 FAH-3 H-353 NEGOTIABILITY OF
DEPOSITARY CHECKS
4 FAH-3 H-353.1 Description of
Voided and Spoiled Depositary Checks
(CT:FMP-80; 08-28-2013)
a. Voided Checks. Original serially numbered checks
which are not to be released to the payee due to withdrawal of the voucher or
voucher items by the administrative office and consequently not reported as checks
issued in the check reports of the disbursing office, will be rendered
nonnegotiable by placing the words VoidNot Negotiable, No Check Issued Under
This Number on the face of the checks in prominent size to avoid unauthorized
negotiation.
b. Spoiled Checks. This classification of checks will
apply to those instances where the original serially numbered checks must be
rewritten due to the checks being (1) mutilated or spoiled in preparation, or
(2) incorrectly prepared. Under either of the above circumstances, disbursing
offices will issue replacement checks as described below.
4 FAH-3 H-353.2 Replacement Checks
for Voided or Spoiled Depositary Checks
(TL:FMP-2; 04-30-1995)
Replacement by Alternate Serially Numbered Check.
Disbursing offices not using control checks will use the next available
serially numbered check as a replacement; such replacement checks will bear
the current date of issue. All original checks so replaced, will be rendered
nonnegotiable by placing the words SpoiledNot Negotiable, Replacement Issued
Under Check No. __ dated __ on the face of the checks. The serial number of
the new check will in no way be altered or changed, and such number will be
recorded on the original check being replaced as provided above. In the lower
left hand corner of the face of all replacement checks, will be noted the
information Issued to Replace Check No. __. The disbursing office must make
an appropriate notation on the related carbon copies or detailed list of checks
drawn.
4 FAH-3 H-353.3 Reporting and
Disposition of Voided and Spoiled Checks
(TL:FMP-2; 04-30-1995)
At the close of each monthly accounting period, a separate
listing in numerical sequence for the void checks and a separate listing for
the spoiled checks will be submitted with the original checks and the original
of Form SF-1149, Statement of Designated depositary Account. The check
listings should be plainly identified as to class of checks (voided or
spoiled), accounting month, name of depositary, and account number, if any. If
a receipt for the shipment is desired, an extra copy of the listing or of the
transmittal letter, should be furnished with the shipment.
4 FAH-3 H-354 UNDELIVERABLE DEPOSITARY
CHECKS
(TL:FMP-2; 04-30-1995)
The procedures prescribed in this section relate to
undeliverable checks, the proceeds of which are still due the payee or estate.
Checks, which are returned as undeliverable and are not due the payee, will be
scheduled for cancellation at the earliest possible time. Check cancellation procedures
are prescribed in 4 FAH-3 H-356
.
4 FAH-3 H-354.1 Safeguarding
Undeliverable Checks
(TL:FMP-2; 04-30-1995)
a. Undeliverable checks must be safeguarded in the same
manner as blank check stock. The requirements of 4 FAH-3 H-311
apply.
b. Upon return of a check to the USDO or cashier
because it is undeliverable, the USDO or cashier must notify the applicable
certifying officer, and request a corrected address so that the check may be
delivered properly and promptly.
4 FAH-3 H-354.2 Disposition of
Undeliverable Checks
4 FAH-3 H-354.2-1 Scheduling of
Undeliverable Checks
(TL:FMP-2; 04-30-1995)
The USDO or cashier must provide for the scheduling of
undeliverable checks for credit to the appropriation or fund charged with the
disbursement, at the earliest practical date within the maximum period of 6
months from the month the check was issued.
4 FAH-3 H-354.2-2 Crediting
(TL:FMP-2; 04-30-1995)
a. Undeliverable checks which are to be credited to the
appropriation or fund account charged with their issue, will be scheduled on
Form SF-1098, Schedule of Canceled or Undelivered Checks. The amounts of all
checks so credited, must be established as an obligation or payable against the
account credited, to allow for the future settlement of a claim from the payee
or their estate for the amount due. The schedule will authorize the processing
of the checks for credit, upon being signed by a duly authorized approving
officer of the administrative agency whose disbursements are covered by the
checks. The schedule must be prepared in a sufficient number of copies to
provide support to the accounting statements which reflect the transactions,
the same as for other types of collection items, and for the accounting
document files of the disbursing office and the administrative agency. The
schedule has been designed to reflect, in addition to the heading information
and signature of the appropriate approving officer, the following data with
respect to each check:
Month and year of issue
Check serial number
Name of payee
Amount of check (U.S. dollar equivalent at time of issue)
Symbol of appropriation or fund account to be credited
b. When Form SF-1098 is used by the administrative
office as an obligation or accounts payable accounting document, all columns
must be completed. When the form is used as a face sheet to a listing of the
checks, and other means are used to establish the obligation or accounts
payable record for the amounts of the checks, only the check serial number,
amount, and appropriation or fund account to be credited need be shown in the
columnar spaces.
4 FAH-3 H-354.3 Establishment of
Liability for Payment of the Proceeds of Undeliverable Checks Credited to
Government Accounts.
(TL:FMP-2; 04-30-1995)
Liability must be established in the accounts for the
amounts of all undeliverable checks credited to the accounts to provide for the
possible subsequent claim for the proceeds and payment to the payee. This is
accomplished by the obligation or accounts payable established in 4 FAH-3
H-354.2 above. A copy of Form SF-1098 may be used as the obligation or
accounts payable accounting document. Otherwise, the regular formal
documentation used to establish an obligation or payable must be used.
4 FAH-3 H-354.4 Special Endorsement
(CT:FMP-80; 08-28-2013)
Undeliverable checks drawn on designated depositaries which are scheduled for credit to
the accounts will, upon scheduling, be defaced by writing, typing, or stamping
on the face of each check the following wording in order to preclude
negotiation by unauthorized persons:
Not-Negotiable
Proceeds Credited in Government Accounts
Symbol
4 FAH-3 H-354.5 Accounting
Considerations
4 FAH-3 H-354.5-1 Checks Current
as to Issue Date
(TL:FMP-2; 04-30-1995)
Checks drawn on designated depositaries by Government
disbursing offices which are current as to date of issue, will be scheduled for
credit to the appropriation or fund account charged with the disbursement or to
the appropriate succeeding account. On the basis of a certified Form SF-1098,
the disbursing office will process the credit to the appropriation or fund
account and will adjust the checkbook balance and the record of outstanding
checks to reflect the action taken on the checks. The checks will be forwarded
with the offices monthly Form SF-1149, in the same manner as for voided and
spoiled checks (I TFM 4-8030.40).
4 FAH-3 H-354.5-2 Checks
Uncurrent as to Date of Issue
(TL:FMP-2; 04-30-1995)
Any uncurrent checks (defined in 4 FAH-3
H-355.1) which come into the possession of the disbursing office, the
proceeds of which have been transferred to the deposit fund account 20X6045,
Proceeds and Payment of Certain Unpaid Checks, and for which no current claim
has been presented, must be forwarded directly to the General Accounting
Office, General Government Division Claims Group, Room 5047, Washington, D.C.
20548.
4 FAH-3 H-354.5-3 Vouchering
Claims for the Proceeds of Undeliverable Checks Credited to Agency Accounts
(TL:FMP-2; 04-30-1995)
In processing claims for the proceeds of undeliverable
checks which have been credited to agency accounts, the payments must be
supported by a regular disbursement voucher signed by a duly authorized
certifying officer. Each basic voucher should cite a reference to the original
undeliverable check, showing the check serial number, amount, and disbursing
symbol number. In those cases where the combination voucher and schedule of
payments forms are used, if appropriate, the basic voucher supporting the schedule
may be of the same type or form used for support of the first check issue.
Where voucher-schedules are not used, Form SF-1034, Public Voucher for
Purchases and Services Other than Personal, must be used as the payment
document (Form SF-1034 is illustrated in Appendix No. 1, Treasury Financial
Manual, 1 TFM 4-2000).
4 FAH-3 H-354.5-4 Issue of
Replacement Checks for Defaced Undeliverable Checks
(TL:FMP-2; 04-30-1995)
If the safekeeping procedures with respect to
undeliverable checks being held pending delivery to the payee provided for the
checks to be defaced prior to the time when action will be taken to credit the
proceeds of the checks to the agencys accounts, it will be necessary to issue
a replacement check to the payee if the check is claimed before credit action
is taken. Under such circumstances the defaced undeliverable check will be
treated as a spoiled check and processed under the procedures set forth in 1
TFM 4-8030.
4 FAH-3 H-354.6 Unnegotiated Checks
Drawn on Designated Depositaries Involving Deceased or Incompetent Payees
4 FAH-3 H-354.6-1 Checks Which
are Current as to Date of Issue
(TL:FMP-2; 04-30-1995)
Unnegotiated checks which are still current as to date of
issue, submitted to an administrative agency or a disbursing office in
connection must a claim for the proceeds which are still due a deceased or
incompetent payee, must be scheduled for credit to the appropriation or fund
account originally charged, simultaneously establishing a liability for the
subsequent payment of the proceeds of such checks pursuant to a claim and
settlement. Form SF-1098 must be used to schedule the checks for credit to the
appropriation or fund account involved.
4 FAH-3 H-354.6-2 Checks Which
are Uncurrent as to Date of Issue
(TL:FMP-2; 04-30-1995)
Unnegotiated checks which are uncurrent as to date of
issue, the proceeds of which are still due a deceased or incompetent payee,
must be forwarded with the claim for the proceeds to the General Accounting
Office, General Government Division Claims Group, Room 5047, Washington, D.C.
20548, for settlement.
4 FAH-3 H-354.7 Accommodation
Exchange Checks
(TL:FMP-2; 04-30-1995)
a. Undeliverable depositary checks which have been
issued in accommodation exchange transactions are voided (see 4 FAH-3 H-353)
and the cash proceeds entered into the suspense deposit abroad account, 19X6809
for the payee.
b. When all efforts to contact the payee have failed,
the proceeds are considered as a balance which cannot be refunded by the post
and handled according to 4 FAH-3
H-322.2-6 .
4 FAH-3 H-355 UNCURRENT DEPOSITARY
CHECKS
4 FAH-3 H-355.1 General
(TL:FMP-2; 04-30-1995)
a. Designated depositary checks which have remained
outstanding and unpaid in the checking account under which they were drawn, for
one full fiscal year after the fiscal year in which they were issued, are
classified as uncurrent under the laws of the United States. The amount of
such checks must be transferred from the depositary checking account against
which they were drawn to an account on books of Treasury (31 U.S.C. 1322)
except as provided in 1 TFM 4-8080.90.
b. Each disbursing office will be responsible for
making the necessary transfer from its depositary checking account to the
account 20X6045, Proceeds and Payment of Certain Unpaid Checks, when the
checks become Uncurrent.
c. When depositary checks become uncurrent in a
shorter period of time due to the banking laws of the country concerned, the
checks are revalidated and returned to the payees. If it is not possible to
revalidate the checks, the procedures in section (replacement checks) are
followed.
d. The transfer of proceeds of uncurrent checks, as
appropriate, may be made by:
The disbursing office which issued the checks;
The successor disbursing office; or
The disbursing office designated by the central office of the
disbursing agency concerned.
4 FAH-3 H-355.2 Disposition of
Uncurrent Checks
4 FAH-3 H-355.2-1 Timing
(TL:FMP-2; 04-30-1995)
The disbursing office will make transfers on a regular
basis, as soon as possible after the close of each fiscal year. The transfer
will be reflected in the disbursing offices account for the month following
the end of the fiscal year: the transfer to be made in that month will comprise
the proceeds of all unpaid checks issued and dated within the fiscal year
preceding the fiscal year just closed.
4 FAH-3 H-355.2-2 Scheduling
(TL:FMP-2; 04-30-1995)
a. The disbursing office must prepare, in
quadruplicate, a list with an appropriate heading showing the name and location
of the disbursing office, and the name and location of the depositary. The
checks will be listed in numerical order. The following information will be
shown for each check:
Date of check
Number of check
Name of payee;
Amount of checkforeign currency
Amount of checkout dollar equivalent at time of issue
The list must show the total amount of foreign currency
units and the total U.S. dollar equivalent. The total U.S. dollar equivalent
at the time the checks were issued, must be the amount of the U.S. dollar transfer
to account 20X6045.
b. The disbursing office must distribute copies of the
list of uncurrent designated depositary checks as follows:
OriginalThe original must be forwarded with a copy of the
transfer voucher and the Treasury check to the Department of the Treasury,
Financial Management Service, Comptroller, Liberty Center, Washington, D.C.
20227;
Copy No. 1This copy must be forwarded to the designated
depositary;
Copy No. 2This copy must be forwarded with the original to
Treasury for transmission to the General Accounting Office, General Government
Division Claims Group, Room 5047, Washington, D.C. 20548 with a copy of the
confirmed certificate of deposit indicating credit to the account 20X6045; and
Copy No. 3This copy must be retained for the files of the
disbursing office.
c. The disbursing officers copies of the uncurrent
checks are marked UncurrentScheduled OCT. 19 Accounts.
4 FAH-3 H-355.2-3 Accounting and
Reporting
(TL:FMP-2; 04-30-1995)
a. The proceeds of the uncurrent checks are restored to
the checking account balance in the bankbook, and are recorded as a collection
in the FSA account on Form OF-209, Accountability Record, (formerly FS-465).
The collection is reported on Form SF-1221, Statement of Transactions According
to Appropriations, Funds, and Receipt Accounts (Foreign Service Account), to
the Bureau of Government Financial Operations, Treasury Department, as a credit
to 20X6045, Proceeds and Payments of Certain Unpaid Checks.
b. If it becomes necessary to correct duplicate credits
or transfers to 20X6045, Form OF-1017-G, Journal Voucher is prepared. The
explanation includes the disbursing officer name and month in which the
duplication was made. The Debit column is completed charging 20X6045 and the
Credit column is left blank. The document is processed as a payment item and
the checkbook balance is correspondingly decreased. The original of Form OF-1017-G
is retained by the disbursing officer and the copy is forwarded with the
original Form SF-1221 to the Department of Treasury, Financial Management
Services, 401 14th Street, S.W., Washington, D.C. 20227.
4 FAH-3 H-355.2-4 Stop Payment
Notice to Depositary
(TL:FMP-2; 04-30-1995)
The disbursing office will immediately furnish one copy of
the list of uncurrent outstanding checks to the depositary to place a stoppage
of payment on all checks listed thereon. The depositary will be instructed to
advise all claimants presenting such checks for payment, to submit the checks
to the disbursing office for transmittal to the General Accounting Office,
General Government Division Claims Group, Room 5047, Washington, D.C. 20548
for settlement.
4 FAH-3 H-355.3 Claims Against
Uncurrent Checks
4 FAH-3 H-355.3-1 Settlement of
Claims
(TL:FMP-2; 04-30-1995)
a. Claims of payees for the proceeds of checks which
have been credited to 20X6045, Proceeds and Payment of Certain Unpaid Checks,
are not to be settled by the USDO or RDO. They are for consideration and
settlement by the General Accounting Office, General Government Division Claims
Group, Room 5047, Washington, D.C. 20548.
b. When a payee presents an uncurrent check for
payment, the payee is directed to submit a letter over the payees signature
which requests payment of the check and bears the payees post office address.
c. The check, accompanied by the claimants letter, is
forwarded by letter to the General Accounting Office, General Government
Division Claims Group, for settlement. The letter includes the following
information:
The date of transaction crediting 20X6045 with the proceeds of
the check; and
The total dollar amount of the transaction which included the
check.
4 FAH-3 H-355.3-2 Uncurrent
Checks Paid by Bank
(TL:FMP-2; 04-30-1995)
a. Although stop payment action in relation to
uncurrent checks is requested of banks, in accordance with, occasionally
payment is inadvertently made. In such case, the disbursing officers bank
balance is less than the checkbook balance by an amount equal to the check
amount.
b. A letter explaining the circumstances and requesting
adjustment action is directed to the General Accounting Office, General
Government Division Claims Group, Room 5047, Washington, D.C. 20548. The
letter should contain a factual statement, if there is nothing of record to
indicate that the payee was not or is not entitled to the proceeds as well as
the name and address of the disbursing officer to whom the settlement check is
to be forwarded.
4 FAH-3 H-355.4 Effecting Transfer
of Uncurrent Checks Pertaining to Closed Accounts
(TL:FMP-2; 04-30-1995)
When outstanding, unpaid checks become uncurrent in a
closed designated depositary checking account and it is necessary to accomplish
the transfer of the U.S. dollar equivalent of the uncurrent checks to the
account 20X6045, the disbursing office having jurisdiction over the account,
will arrange for the necessary transfer to its current designated depositary
checking account. After the transfer has been accomplished, the procedures
outlined in I TFM 4-8080.60 will be followed. In this type of case, if the
closed designated depositary checking account pertains to a closed disbursing
office, one additional copy of the uncurrent check list should be prepared for
filing with the retained copies of the offices accounts. On this copy of the
list, reference should be made to the disbursing office accomplishing the
transfer and the date the transfer was made.
4 FAH-3 H-356 CANCELLATION OF
DEPOSITARY CHECKS
4 FAH-3 H-356.1 Request for
Cancellation
(TL:FMP-2; 04-30-1995)
The cancellation is requested by official memorandum to
the USDO, with a copy of the original certified voucher attached, or by Form
SF-1098, in accordance with 4 FAH-3
H-356.2 .
4 FAH-3 H-356.2 Cancellation of
Current Checks
4 FAH-3 H-356.2-1 Inscription of
Check
(TL:FMP-2; 04-30-1995)
All available checks to be canceled must be marked with
the words CANCELEDNOT NEGOTIABLE in bold letters.
4 FAH-3 H-356.2-2 Scheduling
(TL:FMP-2; 04-30-1995)
a. Canceled depositary checks are listed on Form SF-1098,
Schedule of Canceled or Undelivered Checks. If the check being canceled was
issued in connection with an accommodation exchange transaction, a separate
Form SF-1098 is prepared and, in lieu of showing an appropriation or fund
symbol, the term Issued for Accommodation Exchange is inserted. At the same
time, a refund of the dollar amount collected for the exchange transaction must
be made to the remitter.
b. In all cases where practicable, Form SF-1098 will be
prepared by the administrative agency or office which submitted the original
certified voucher for the check if the schedule is prepared by the disbursing
office as a service convenience, such schedule must be signed by the proper
official or representative of the administrative agency.
4 FAH-3 H-356.2-3 Accounting and
Reporting
(TL:FMP-2; 04-30-1995)
The amount on Form SF-1098 is entered in the receipts
column of the disbursing officers OF-209, Accountability Record, (formerly
FS-465) and reported as a collection on the agencys Form SF-1221. Form SF-1098
is processed as a collection document in the allotment accounting records,
unless the canceled check was issued in connection with accommodation
exchange. In the latter case, Form SF-1098 is not entered in the allotment
accounting records. Instead, the reversing transaction is reflected on Form DS-1694,
Exchange Transaction Record, on Form OF-209, and on Form SF-1218, but not on
Form SF-1221. The amount on Form SF-1098 is also restored to the checkbook
balance.
4 FAH-3 H-356.2-4 Submission
(TL:FMP-2; 04-30-1995)
Form SF-1098 with the canceled checks attached is
submitted to the USDO or RDO, as applicable, and the USDO or RDO submits them
to Treasury with Form FS-440, Statement of depositary Account and Report of
Checks Drawn
4 FAH-3 H-356.3 Cancellation of
Unavailable Check
(TL:FMP-2; 04-30-1995)
If a check to be canceled is not available for inscription
and submission, the accounting and reporting are the same as in 4 FAH-3
H-356.2 but the following action as indicated below is also required.
4 FAH-3 H-356.3-1 Form SF-1098
(TL:FMP-2; 04-30-1995)
When preparing Form SF-1098, an explanation is given, on
the form, of the circumstances under which the check is unavailable. The
schedule is approved by the appropriate official of the administrative agency
responsible for the issuance of the check. The USDO also signs the schedule
under the explanation of the checks unavailability.
4 FAH-3 H-356.3-2 Stop Payment
Order to Depositary
(TL:FMP-2; 04-30-1995)
The USDO or regional disbursing officer (RDO) requests the
depositary, on which the check was drawn, to place a stop payment order on the
check and obtain a written acknowledgment of the action from the bank. A copy
of the depositarys acknowledgment is attached to each copy of Form SF-1098 and
will then be processed in the accounts of the disbursing office with credit to
the checking account balance and the related appropriation or fund account, the
same as any other check cancellation action.
4 FAH-3 H-356.4 Cancellation of
Uncurrent Checks
(TL:FMP-2; 04-30-1995)
When necessary, a USDO or RDO cancels an uncurrent check,
the amount of which has been credited to account 20X6045, Proceeds and Payment
of Certain Unpaid Checks, as indicated below.
4 FAH-3 H-356.4-1 Form SF-1098
(TL:FMP-2; 04-30-1995)
Form SF-1098 is prepared in accordance with 4 FAH-3
H-356.2-2, except:
An additional copy of the form is required;
The form title is annotated to include: REQUEST FOR
CANCELLATION OF UNCURRENT CHECK;
The agency appropriation, or M account, with which check was
originally charged is shown as the fund to be credited, in the same manner as
for other canceled checks; and
The month and year in which the check was reported as uncurrent
is included in the body of the form.
4 FAH-3 H-356.4-2 Form OF-1017-G
(TL:FMP-2; 04-30-1995)
Form OF-1017G, Journal Voucher, is prepared in duplicate
to document the transfer action from account 20X6045 and a full explanation of
the transaction is included on the form. In the Debit column of Form
OF-1017G, 20X6045 is shown as the fund from which the amount is paid. In the
Credit column, the cross-reference See Form SF-1098 attached is shown. Form
SF-1098 indicates the appropriation to which the amount is recorded as a
collection.
4 FAH-3 H-356.4-3 Disposition of
Documents
(TL:FMP-2; 04-30-1995)
a. A copy of Form OF-1017-G, an additional copy of Form
SF-1098, and, if available, the uncurrent check marked NOT NEGOTIABLE are
forwarded with Form SF-1221, which includes account 20X6045, to: Finance
Division, Office of the Comptroller, Financial Management Service, Treasury
Department, Liberty Center, Room 257, Washington, D.C. 20227. Another copy of
Form SF-1098 is forwarded with Form SF-1221 which reflects the appropriation
credit.
b. Serviced posts request cancellation of an uncurrent
check by letter to the center where the necessary documentation is prepared.
If the uncurrent check is available, it is marked NOT NEGOTIABLE and is
enclosed with the letter.
4 FAH-3 H-356.5 Cancellation of
Current Checks
(TL:FMP-2; 04-30-1995)
Depositary checks which have a current status may be
processed for cancellation by the disbursing office. If the check is a foreign
currency check, the U.S. dollar equivalent of the check and the rate of
exchange effective on the date of issue as shown on the payment voucher, should
be entered on Form SF-1098. Depending on whether the check is payable against
an open or closed depositary checking account, the following procedures will
apply.
(1) If the check is drawn on an open depositary
checking account, Form SF-1098 will be processed in the disbursing office
accounts to effect the credit to the appropriation or fund account and to
adjust the checkbook balance and record of outstanding checks. The month and
year that the amount of the check is restored to the checkbook balance must be
entered on the face of the depositary check. The checks and a copy of Form SF-1098
must be forwarded with the original copy of the monthly Form SF-1149.
(2) If the check is drawn on a closed depositary
checking account, it will be necessary to arrange for a transfer of funds
between checking accounts before processing the cancellation action. If the
transfer can be accomplished by drawing a check against the closed account for
deposit to the open account, this procedure should be followed. Otherwise, the
procedures outlined below will be followed in processing the necessary
transfer.
(a) If the check to be canceled is drawn on the depositary
currently being used by the disbursing office, the depositary must be advised
by letter or memorandum that the check is in possession of the disbursing
office and is being canceled, and that it is appropriate to transfer the amount
of funds involved, from the closed account to the open account. Upon advice
from the depositary of the transfer, the disbursing office must then process
the cancellation action in the current checking account as set forth in the
first subparagraph under.
(b) When the check to be canceled is drawn on a
designated depositary different from the one currently being used by the
disbursing office processing the cancellation, a written request must be made
on the depositary against which the check was drawn to charge the checking account
for the check being officially canceled and to transmit the funds to the
disbursing office. Upon receipt of the funds, they must be deposited in the
current checking account and treated as a collection transaction for credit to
the related appropriation or fund account. The transaction must be identified
as being the proceeds of a canceled check.
4 FAH-3 H-357 THROUGH H-359 UNASSIGNED