4 FAH-3 H-420
VOUCHER EXAMINATION
(CT:FMP-80; 08-28-2013)
(Office of Origin: CGFS/FPRA/FP)
4 FAH-3 H-421 PURPOSE
(TL:FMP-3; 05-30-1995)
The procedures for the examination of vouchers refer to
receiving, sorting, approving and examining vouchers for payment. The
procedures in these sections must be followed and any deviation must be
justified.
4 FAH-3 H-422 INVOICES
4 FAH-3 H-422.1 Prompt Payment Act
4 FAH-3 H-422.1-1 Definitions
(TL:FMP-3; 05-30-1995)
The definitions that follow are prescribed by OMB Circular
A-125 for the implementation of the Prompt Payment Act:
a. Date of receipt of invoice is the later of:
(1) The date a proper invoice is received by the
designated billing office; or
(2) The seventh day after delivery, unless the
Department has accepted the property before the seventh day or a longer
acceptance period is specified in the contract;
Discount date is the date by
which, if payment is made, a specified discount can be taken;
Due date is the date by which
payment is to be made. The due date should be no later than 30 days from the
date the invoice is received. If a specific payment date is provided for in
the contract, then such date is to be used as the due date. Payment should be
made no earlier than 7 days (date a schedule is extracted for payment) prior to
the due date;
Payment date is the date on the
check for payment or the date of an electronic fund transfer (EFT) payment
(settlement date); and
Proper invoice is an invoice,
voucher, or other billing document that includes the:
(1) Name of the business concern and the invoice date;
(2) Purchase order or contract number, or other
authorization for delivery of property or services;
(3) Description, price, and quantity of property and
services actually delivered or ordered;
(4) Shipping and payment terms and shipment address;
(5) Name where practicable, title, phone number, and
complete mailing address of responsible official to whom payment is to be
sent; and
(6) Translation of key words if the invoice is in a
foreign language.
4 FAH-3 H-422.1-2 Requirements
(TL:FMP-3; 05-30-1995)
The following requirements apply to all offices and posts:
a. Pay all bills as close as possible to, but not later
than, the due date or if appropriate, the discount date;
b. Pay interest penalty payments automatically when a
payment is late, without the need for vendors or contractors to request them.
Use the current Treasury rate, as published in the Federal Register, to
calculate the interest penalty (FMP provides to posts by telegram). Each
payment for which a late payment interest penalty is paid must be accompanied
by a notice to the vendor and the funding program office, which states the
amount of the interest included in the payment and the rate and number of days
used to compute the interest;
c. Pay interest penalties out of amounts available to
the agency to carry out the program for which the penalty is incurred. The
Prompt Payment Act does not authorize the appropriation of additional amounts
to pay penalties;
d. Take discounts only when payments are made by the
discount date;
e. Maintain records of all discounts taken and lost;
and
f. If the designated billing office fails to annotate
the invoice with the date of receipt, the date of the invoice will be
considered to be the date of receipt of the invoice.
4 FAH-3 H-422.2 Receipt of Invoices
(TL:FMP-3; 05-30-1995)
Invoices are dated (stamped or otherwise annotated) upon
receipt by the designated billing office (the office or employee designated in
the contract to receive the invoices).
4 FAH-3 H-422.2-1 Invoice Billing
Office
(TL:FMP-17; 05-05-2003)
a. All contracts and purchase orders should specify the
designated billing office where invoices are to be submitted by the vendor or
contractor. Ordering officer compliance should be monitored and noncompliance
should be reported to the post management officer or bureau officials.
b. Domestically, FMP/F/DFS/FO (unless specifically
exempted by FMP/F/DFS/FO) is the designated billing office for the direct
submission of invoices.
4 FAH-3 H-422.2-2 Return of
Improper Invoices
(TL:FMP-3; 05-30-1995)
Notice of an apparent error, defect, or impropriety in an
invoice (a proper invoice is defined in 4 FAH-3
H-422.1-1 ) is given to the vendor within 7 days of receipt of the
invoice. The notice must specify the reason the invoice is not proper. As
required by the Prompt Payment Act, the number of days available for timely
payment without incurring interest penalties must be reduced by the number of
days the paying office exceeds the requirement to return the improper invoice
in 7 days.
4 FAH-3 H-422.2-3 Vendor Invoice
Submission
(TL:FMP-3; 05-30-1995)
Vendors are encouraged to submit invoices promptly. Such
action will permit prompt liquidation of obligations. The invoice is to be
marked clearly as the original. To reduce copying costs, vendors are
requested to furnish the number of copies of invoices (each marked as a
copy) required to support the voucher and to provide adequate identification
of the goods or services that warrant the payment.
4 FAH-3 H-422.2-4 Time-Barred
Invoices
(TL:FMP-3; 05-30-1995)
In accordance with 31 U.S.C. 3702 and 3726, a claim shall
be allowed only if it is received by the designated billing office not later
than 3 years, for the payment of transportation related invoices and not later
than 6 years for the payment of all other invoices, excluding time of war,
after the later of the following dates:
Accrual of the claim;
Payment for the receipt of goods or services is made;
Refund for an overpayment for the goods or services is made; or
Deduction is made from amounts due to the claimant to adjust
excess charges paid previously.
4 FAH-3 H-422.3 Solicitation of
Invoices
(TL:FMP-3; 05-30-1995)
a. Posts, bureaus and offices shall identify
periodically those invoices that need to be solicited (i.e., those for which
goods or services have been received or performed but not liquidated).
Exercise discretion in making invoice solicitations so there is no question of
the U.S. Governments liability or dispute about the facts.
b. The administrative or financial management officer
may obtain invoices and supporting documents from vendors and contractors in
order to make prompt payment for current legitimate claims for goods and
services obtained through proper procurement methods.
4 FAH-3 H-422.4 When an Invoice is
Not Needed
(TL:FMP-3; 05-30-1995)
An invoice is not needed for:
(1) Transfers and purchases between U.S. agencies
where an agreement between the Department and the relevant agency covers the
range and cost of transactions (see 4 FAH-3 H-450
); or
(2) Recurring payments for services if an agreement
exists covering the payment of fixed amounts at regular intervals, all in the
same way as payments for one-time purchases, as though the vendor provided an
invoice. Examples of such payments are utilities, rent, security, janitorial
and custodial services.
4 FAH-3 H-422.5 Use of Invoice in
Lieu of Voucher
(TL:FMP-3; 05-30-1995)
The original vendor invoice that contains all the
information normally required on Form OF-206, Purchase Order, Receiving
Report and Voucher (formerly, Form FS-455), may be used to support the
Voucher Schedule, except for transportation payments, provided the funds have
been obligated. Normally, funds are obligated when a purchase order (Form
OF-206; or Form DS-1089, Blanket Purchase Agreement; or Form DS-1089-A,
Order-Supplies or Services) is completed upon request for purchase.
4 FAH-3 H-422.6 Original Invoices
(TL:FMP-3; 05-30-1995)
a. Payment is made on original invoices only. If the
original is lost, a copy marked Duplicate Original may be used when supported
by an administrative approval on the document. Finance offices must take
certain precautions to prevent duplicate payments. Vouchers, voucher
schedules, and supporting documentation must be marked clearly to prevent
duplicate processing. A stamp or other form of mark should be used indicating
PAID on all payment documents.
b. Duplicate invoices are more likely to appear under
one of the following conditions:
(1) Payments have been delayed and duplicate invoices
are submitted by vendors as follow-up claims;
(2) Vendors submit invoices to more than one office
for payment; or
(3) Invoices have been adjusted and are resubmitted after
being paid.
4 FAH-3 H-422.7 Invoice
Consolidation
(TL:FMP-3; 05-30-1995)
To reduce the number of checks written by the USDO and the
U.S. Treasury, finance offices should consolidate invoices to the same vendor
(and address) for payment by a single check or funds transfer (I TFM
4-2025.50) only if these conditions exist:
(1) Payment is to be made to a single office or
location;
(2) Payment is on behalf of a single U.S. Government
bureau within a U.S. Agency except when payment is made overseas, in which
case the payment may be made on behalf of more than one U.S. Agency;
(3) Consolidation is agreeable to the vendor or U.S.
Agency;
(4) Consolidation does not result in loss of discounts
(this might occur if invoices carrying discount terms are held for payment
beyond the discount date in order to combine with other invoices received or
expected); and
(5) Provisions of the Prompt Payment Act are not
violated. Invoices should not be held beyond the payment due date (as defined
under the Prompt Payment Act) solely for the purpose of consolidation with
other invoices received or expected. The Department is liable for interest
and penalties for any delays in payment to all vendors notwithstanding
anything stated under this section.
4 FAH-3 H-422.8 Lost Invoices
(TL:FMP-3; 05-30-1995)
The effect of the Prompt Payment Act is that if an invoice
is lost, it is the Departments responsibility to obtain a copy, or at the
very least, the details of the underlying transaction. The Prompt Payment Act
applies to lost invoices as well as to other invoices. The date of receipt of
the invoice is the date on which the Department becomes liable for timely
payments even if the invoice is subsequently lost. If examination and
certification are delayed causing payment beyond the due date (based on the
date of receipt of the original invoice), the Department remains liable for
interest and penalties.
4 FAH-3 H-422.8-1 Before Payment
(TL:FMP-3; 05-30-1995)
a. When an original voucher or invoice is lost before
payment, the approving official obtains another voucher or invoice (unsigned)
from the payee, if a copy is not on file. On all such duplicates, the payee
must state that the original has been lost and that payment has not been
received.
b. If a memorandum copy of the lost invoice or voucher
is available, the approving official prepares a new voucher or invoice from
it. The new voucher or invoice must be distinctly and prominently marked
DUPLICATE. Attach the memorandum copy of the lost voucher to the duplicate.
c. The approving official inserts or attach, securely,
a full explanation of the circumstances surrounding the loss or destruction
of the original voucher or invoice to the duplicate voucher.
d. A certification that administrative control (as
described in 4
FAH-3 H-422 ), has been established to preclude the making of a duplicate
payment in the event that the original voucher or invoice is subsequently
located, is also required. Attach and file together all documents pertaining
to both the original and the duplicate voucher.
e. Administrative control to prevent duplicate payments
includes:
(1) Ensuring that sufficient and reasonable checks are
built into the system (manual or automated) as required in 4 FAM 310 to
prevent duplicate payments;
(2) Ensuring that written procedures exist to prevent
or reduce the possibility of duplicate payments;
(3) Ensuring that examiners and certifying officers
are aware of such procedures and of the circumstances that typically result
in duplicate payments;
(4) Conducting periodic reviews of vendor paid files
to ensure that duplicate payments have not been made;
(5) Conducting unannounced checks to test the adequacy
of procedures and their effective implementation; and
(6) Conducting periodic reviews of reports produced by
the system to ensure that duplicate payments have not been made.
4 FAH-3 H-422.8-2 After Payment
(TL:FMP-3; 05-30-1995)
a. If an original voucher is lost after payment, the
finance staff should prepare another voucher based on the memorandum copy and
mark such a voucher distinctly and prominently SECOND ORIGINALPAID. The
payee need not sign the voucher. The voucher must have supporting approval
similar to the original voucher.
b. The finance staff should provide a full explanation
of the circumstances surrounding the loss of the original voucher and attach
the memorandum copy. The second original is to be attested as a true copy of
the first, over the signature of the certifying officer. The memorandum copy
of the second original must be attached to the memorandum copy of the lost
voucher and filed together with all documents pertaining to both the first and
second original vouchers.
4 FAH-3 H-423 VOUCHER PROCESSING
REQUIREMENTS
(TL:FMP-3; 05-30-1995)
The following procedures are required for voucher
processing when preparing and examining vouchers for certification and
payment.
4 FAH-3 H-423.1 Blanket Purchase
Agreements
(TL:FMP-3; 05-30-1995)
The Department may enter into a Blanket Purchase Agreement
(BPA) (Form DS-1089) with a vendor for day-to-day requirements. The BPA is a
separate purchase order, contract, or obligating document issued to a single
vendor for a range of supplies or services on which a number of invoices and
payments are processed. The original agreement for contractual and billing
information must be verified.
4 FAH-3 H-423.2 State and Local
Taxes
(TL:FMP-3; 05-30-1995)
Domestically, the Department is exempt from paying state
and local taxes. Invoices or vouchers with such taxes must be returned to the
claimant or the amount of the taxes should be deducted and the net amount for
payment should be vouchered. If the amount of the tax is $10 or less, the tax
can be paid (7 GAO 21.3). The vendor should be informed of the net amount in
the case of a tax deduction and of the Departments tax-exempt status.
4 FAH-3 H-423.3 Recurring Payments
(TL:FMP-3; 05-30-1995)
Recurring payments should be vouchered in accordance with
the provisions of 4 FAH-3 H-422
.
4 FAH-3 H-423.4 Complete and
Partial Payments
4 FAH-3 H-423.4-1 Complete or
Initial Partial Payments
(TL:FMP-3; 05-30-1995)
a. Form OF-206, Purchase Order, Receiving Report and
Voucher, for overseas purchases or Forms DS-1089, Blanket Purchase Agreement,
or DS-1089-A, Order-Supplies or Services, for domestic purchases should be
prepared when goods and services are requested. The form will serve as the
original obligation document. When goods and services have been fully
received, the form serves as the voucher with the vendor invoice supporting
Forms OF-206, DS-1089, or DS-1089-A. The certifying officer certifies the
document.
b. When an initial partial invoice is received, a copy
of the original Forms OF-206, DS-1089, or DS-1089-A, supports the invoice and
the receiving documentation, which is certified for payment. New Forms OF-206,
DS-1089, or DS-1089-A should not be prepared and used as support for partial
payments.
4 FAH-3 H-423.4-2 Subsequent
Partial Payments
(TL:FMP-3; 05-30-1995)
Each subsequent partial payment for articles or services
furnished (pursuant to a purchase order issued on Forms OF-206, DS-1089, or
DS-1089-A) is to be vouchered using a copy of the original Forms OF-206,
DS-1089, or DS-1089-A as the supporting documentation. The final invoice is
attached to the original Forms OF-206, DS-1089, or DS-1089-A for certification
to pay.
4 FAH-3 H-423.5 Supporting
Documentation
4 FAH-3 H-423.5-1 Purpose and
Scope
(TL:FMP-3; 05-30-1995)
a. Supporting documentation is required to ensure that
all payments are authorized, accurate, legal, correct, and that the goods
were actually received or services actually performed. Supporting
documentation for voucher processing includes purchase orders and contracts,
invoices and vouchers, receiving reports and approvals.
b. Copies of contracts or purchase orders and evidence
of receipt and acceptance must be forwarded promptly to the appropriate
payment office to ensure compliance with the Prompt Payment Act.
c. Supporting documents, in addition to obligating
(procurement) documents and such documents as inspection certificates, weight
certificates, etc., must be attached to the invoice and reviewed before
payment can be certified. The purchase order and contract number on the
invoice must be verified as proper and must agree with those on the obligating
document (see 4 FAH-3
H-423.5-2 ) and the receiving document (see 4 FAH-3
H-423.5-2 ).
4 FAH-3 H-423.5-2 Documentation
Requirements
(TL:FMP-3; 05-30-1995)
a. A proper obligating document (purchase order, letter
of agreement, and contract) contains the following:
(1) Vendors complete name, registered address, and
payment address (if different from registered address);
(2) Vendor code;
(3) Taxpayer Identification Number (TIN) or Social
Security Number (SSN) where required;
(4) Purchase order or contract number;
(5) Description of the goods to be provided or
services to be rendered. For purchase orders include quantity, individual
price, estimated shipping cost, and total estimated costs. For contracts,
include payment schedule and total cost of the contract;
(6) Complete address of the office to be billed;
(7) Complete shipping instructions with the shipping
address;
(8) Terms of the transactions, when other than normal
to make a proper, legal, or correct payment;
(9) Full fiscal accounting classification; and
(10) Name and signature of the ordering or contracting
officer.
b. A proper receiving document (receiving report,
shipping document, memo from an individual authorized to receive and accept
the goods or services, annotation of receipt on the invoice, or where
automated receipt capability has been provided) contains the following:
(1) Related obligating document number;
(2) Vendor name;
(3) List of goods received or statement by an
authorizing officer that services have been rendered; and
(4) Name and signature of a U.S. agency representative
authorized to receive and accept the goods or services.
4 FAH-3 H-423.6 Number of Copies
(TL:FMP-3; 05-30-1995)
a. Vouchers should be prepared with at least an
original and one copy. Additional copies may be required:
(1) To meet internal operational needs;
(2) When payment is made by a disbursing office or
cashier at another location;
(3) When payment is to be reimbursed;
(4) To comply with inter-office transfer procedures;
or
(5) In other cases, as needed.
b. Vouchers for other U.S. agencies should be prepared
in accordance with 4 FAM 452 .
4 FAH-3 H-423.7 Voucher Numbering
(TL:FMP-3; 05-30-1995)
The preparing office assigns voucher numbers, using
numbering as a control mechanism.
4 FAH-3 H-423.8 Voucher Security
Classification
4 FAH-3 H-423.8-1 Unclassified
Vouchers Authorized by Classified or Confidential Non-Security Communications
(TL:FMP-3; 05-30-1995)
Classified material should not be referenced in
unclassified vouchers submitted with the regular accounts. Instead of citing
classified documents in such vouchers, the approving official places the
following statement in the body of the voucher: Authorized by classified or
confidential nonsecurity communication.
4 FAH-3 H-423.8-2 Classified or
Confidential Non-Security Vouchers
(TL:FMP-3; 05-30-1995)
Copies of each classified or confidential nonsecurity
voucher should be labeled with the appropriate security classification. In
unclassified reports which cover classified or confidential nonsecurity
vouchers, such vouchers should be identified by voucher numbers, funds
chargeable, and amounts.
4 FAH-3 H-423.9 Currency Data
(TL:FMP-3; 05-30-1995)
a. All vouchers must be prepared in the currency shown
on the billing invoice. A separate Voucher Schedule should be prepared for
each currency.
b. The currency in which an invoice is to be paid must
be indicated clearly in the Approved for or equivalent field. Billings made
in local currency are paid in local currency. The U.S. dollar equivalent of
local currency using the current exchange rate must be included in the fiscal
data. U.S. dollar payments in lieu of local currency may not be made unless
specially approved by the post FMO for a particular vendor and only if
permitted by local currency laws of the country.
4 FAH-3 H-423.10 Payees Statement
(TL:FMP-3; 05-30-1995)
The payees attestation, I certify that the above bill is
correct and just and that payment has not been received, must be signed on
the original voucher or bill by:
(1) Carriers (including persons, corporations, or
agencies) furnishing transportation and accessorial services (see 4 FAM 470 ) to
the U.S. Government. Exemptions to this include:
(a) Nontransit storage billings for storage of
effects (including permanent, indefinite, or temporary storage of goods) when
such storage is prior to acceptance by a carrier at the point of origin of
shipment or after release by a carrier at destination; and
(b) Subsidiary bills from carrier subcontractors
furnishing accessorial services.
(2) Employees claiming reimbursement for travel,
official residence expenses, representation, or any other allowance not paid
through payroll. Exceptions to this include: Advance quarters allowances,
travel advances, and nontransit storage (see paragraph (a) of 4 FAH-3
H-423.10 (1)).
(a) To facilitate obtaining a foreign payees
signature on the invoice, a foreign language translation of the payees
certificate may be placed under the English version on a voucher prior to
signature by the payee. A rubber stamp may be used for this requirement.
(b) If it is not possible to obtain a required
payees signature on either the voucher or invoice (whichever contains the
payees certificate), a rubber stamp statement to that effect should be shown
on the voucher over the signature of the certifying officer.
4 FAH-3 H-423.11 Accounting
Classification Block
(TL:FMP-3; 05-30-1995)
The accounting classification data must be indicated on
all vouchers, including classified vouchers. The information to be shown in
this portion for each type of voucher is provided in 4 FAH-1 Account Structure
and Classification Codes.
4 FAH-3 H-423.12 No-Check Vouchers
(TL:FMP-3; 05-30-1995)
No-check vouchers or no-pay vouchers are vouchers that do
not require a payment to be made. No-check vouchers are transmitted to the
Treasury or the USDO just like other vouchers except, that on the face of the
vouchers, the words No Payment to be Made will be written in red pencil or
ink. Such vouchers will be assigned numbers and must include all necessary
accounting classification data. A travel voucher is an example of a no-check
voucher where the payees expenses are offset by a liquidating entry to the
Travel Advance Account.
4 FAH-3 H-424 OTHER VOUCHER
RESPONSIBILITIES
4 FAH-3 H-424.1 Other Personnel
Responsibilities
(TL:FMP-3; 05-30-1995)
Post and bureau/office personnel contracting or purchasing
goods and services, executing receiving reports, and certifying vouchers for
payment, are responsible for determining that invoices or vouchers examined,
approved or certified, are correct, just and proper for payment. They are
responsible for the establishment of adequate and sufficient checks and
controls to prevent improper or duplicate payments of invoices or vouchers.
4 FAH-3 H-424.2 Vendor
Responsibility
(TL:FMP-3; 05-30-1995)
Vendors are responsible for complying with all statutory, contractual,
and regulatory requirements applicable to transactions with the U.S. Government
in accordance with 18 U.S.C. 287.
4 FAH-3 H-424.3 Goods Received by
Despatch Agent
(TL:FMP-3; 05-30-1995)
Payment to U.S. companies for goods delivered to the U.S.
Despatch Agent is made before goods are actually received at posts. In such
cases, approval is based on the notice of acceptance sent by the Despatch
Agent to the post.
4 FAH-3 H-425 VOUCHER PREPAYMENT
EXAMINATION
4 FAH-3 H-425.1 Objectives
(TL:FMP-3; 05-30-1995)
a. The principal objectives of the prepayment
examination of a voucher are to determine whether:
(1) The voucher is for a valid obligation;
(2) The information on the voucher and supporting
documents is proper and correct;
(3) All adjustments have been made to the vouchered
amount; and
(4) The payment has already been made.
b. A voucher for a valid obligation requires that:
(1) Required administrative authorizations for
procurement and approvals for payment were obtained;
(2) Payment must be as permitted by law and in
accordance with the terms of the applicable agreement; and
(3) The obligation from which the payment will be made
has an adequate unexpended balance to cover the payment;
c. For information on the voucher and supporting
documents to be proper and correct requires that:
(1) Proper forms of documentation are used;
(2) Special certificates, if required, are furnished
(see 4
FAH-3 H-423.10 );
(3) The amount of the payment and the name of the
payee are correct. If the payee is an individual, first, middle (or
initial), and last names are to be shown in that order, unless local custom
dictates otherwise;
(4) The goods received or the services performed, that
are being billed for, are in accordance with the obligating document (see 4 FAH-3
H-423.5-2 ); and
(5) The quantities, prices, and amounts on the voucher
are accurate and agree with the ordering document.
d. To ensure that all adjustments are made to the
vouchered amount requires that:
(1) All cash, trade, quantity, or other cost-effective
discounts are taken and, if not whether the reason is shown on the appropriate
document;
(2) All applicable deductions are made and credited to
the proper account in the correct amount (see 4 FAH-3 H-426
); and
e. For any computation or extension error that results
in a voucher underclaim that is:
(1) Not in excess of $10, the voucher amount may be
increased without notifying the payee when the claim is by an employee or
other U.S. Government creditor, and the payee has clearly claimed the full
quantity of material or service and at the proper unit rate; or
(2) In excess of $10, the payee is notified when the
voucher is certified to explain or correct the error.
f. Verification is made to determine whether the
payment has been previously made to prevent a duplicate payment.
4 FAH-3 H-425.2 Statistical
Sampling
(TL:FMP-3; 05-30-1995)
a. 31 U.S.C. 3521 authorizes the use of adequate and
effective statistical sampling procedures in the examination and approval of
vouchers.
b. Statistical sampling procedures should be carried
out for vouchers not in excess of $1,000. A post must receive specific
approval by the Director, Office of Finance Policy and Management Controls,
FMP/F/FMS/FPMC, before statistical sampling may be used.
c. Sampling plans must be based on the principles of
probability, be designed scientifically to ensure adequate controls, and be
implemented by knowledgeable staff. Timely reporting and proper recordkeeping
are necessary for success.
d. Voucher examiners must audit vouchers with expenses
over $1,000 prior to payment while those under $1,000 may be preaudited using
statistical sampling.
4 FAH-3 H-425.3 Prepayment
Examination not Needed
(TL:FMP-3; 05-30-1995)
a. Interagency bills rendered by one U.S. Government
agency to another on a reimbursable basis under 31 U.S.C. 1535 or similar
provisions of law are not subject to prepayment examination or certification
before payment (see 4 FAM 450 ).
b. Disbursements from imprest funds are not subject to
prepayment examination and certification prior to payment as the examination
is conducted on the cashier replenishment voucher.
c. When fast pay procedures are authorized, a vendor
may be paid before the receiving report is obtained if subsequent payments
are anticipated under the contract or purchase order. A post payment
examination is made to assure that the payment was proper. If required, an
adjustment is made on the next invoice submitted by the vendor.
4 FAH-3 H-426 VOUCHER DEDUCTIONS, SUSPENSIONS,
AND DISALLOWANCES
4 FAH-3 H-426.1 Recovering Amounts
Due
(TL:FMP-3; 05-30-1995)
a. Whenever an amount is due the U.S. Government from a
carrier, vendor, or contractor, collection is made by deduction (offset) from
the current or next voucher submitted for payment. Such deductions should be
made whether the collection is related to the voucher submitted for payment or
not.
b. Procedures for recovering advances due from
employees by travel voucher deductions are provided in 4 FAH-3 H-463
.
4 FAH-3 H-426.2 Advising Payee of
Deductions
(TL:FMP-3; 05-30-1995)
Voucher examiners should notify the payee of the purpose
and amount of every voucher deduction and make such notification either in
advance of the payment or at the time the payment is made. No specific format
is prescribed for such notification.
4 FAH-3 H-426.3 Deductions for
Credit to the Same Appropriation
4 FAH-3 H-426.3-1 Vouchering
(TL:FMP-3; 05-30-1995)
a. When the deduction is credited to the same
appropriation being charged by the payment voucher the voucher examiner should
make the deduction in the Administrative Difference or other such field of
the voucher, and then show the net amount in the Approved for or other such
field. The voucher is to be approved (see 4 FAM 424 ) and
certified (see 4
FAM 432 ) for the net amount due the payee.
b. Full charge and full credit must be shown against
the allotment(s) or operating allowance(s) involved (the difference will
represent the net charge to the appropriation).
4 FAH-3 H-426.3-2 Accounting
(TL:FMP-3; 05-30-1995)
Finance staff should make postings or charges to the
accounts in accordance with the accounting data on the vouchers. When payments
are made in the Department on behalf of overseas posts, the staff should prepare
Form FS-477, Liquidation Transfer Journal Voucher, and send it to the post.
The post must accept Form FS-477 and send it to the servicing USDO. When
USDOs make payments on behalf of other posts, electronic FS-477s must be
submitted to the servicing USDO.
4 FAH-3 H-426.4 Deductions for
Credit to a Different Appropriation
4 FAH-3 H-426.4-1 Vouchering
(TL:FMP-3; 05-30-1995)
a. Domestically, when the appropriation to be credited
is different from that being charged by the payment voucher, the voucher must
be approved and certified in the full amount as a charge to the appropriation
from which payment is made. Finance staff should record the deduction
separately on Form SF-1096, Schedule of Voucher Deductions. Either a check is
to be issued which is payable in the net amount due to the payee, or Form
SF-1081, Voucher and Schedule of Withdrawals and Credits, is to be used if a
U.S. Government agency is to be paid.
b. Staff should use Form SF-1096 for scheduling
deductions from disbursement vouchers. Deductions made from more than one
voucher should be shown individually on a single SF-1096 (I TFM 4-2065.30).
Form SF-1096 is not required when the deduction is made from a payroll
voucher.
c. Finance staff should charge the appropriation and
allotment with the full amount of the voucher and show the amount of deduction
as a credit to the particular appropriation and allotment.
4 FAH-3 H-426.4-2 Accounting
(TL:FMP-3; 05-30-1995)
Separate postings should be made to the allotment accounts
from the voucher and Form SF-1096, if post allotments are involved. The USDO
must prepare Form FS-477, Liquidation Transfer Journal Voucher, when Washington allotments or those of other offices are involved and copies of the documents
must be transmitted when required.
4 FAH-3 H-426.5 Adjusting Errors
Between Appropriations
4 FAH-3 H-426.5-1 Documentation
(TL:FMP-3; 05-30-1995)
Finance staff must document adjustments between
appropriations and allotments resulting from errors found in the USDOs
accounts, after the accounts have been closed for the month in which the
payments or collections were made, on Form SF-1081, Voucher and Schedule of
Withdrawals and Credits. Reference the original voucher number with the reason
or explanation on Form SF-1081. Prepare Form OF-1017-G, Journal Voucher, to
correct errors in the FMO accounts for allotments controlled by the FMO, and
for all domestic adjustments.
4 FAH-3 H-426.5-2 Responsibility
(TL:FMP-3; 05-30-1995)
Posts with errors in the disbursing accounts must effect
corrections between appropriations on the basis of Form SF-1081, Voucher and
Schedule of Withdrawals and Credits.
4 FAH-3 H-426.5-3 Accounting
(TL:FMP-3; 05-30-1995)
a. All appropriation adjustments which occur at posts
are no-check transactions, but must be reflected on the USDOs Form OF-209,
Accountability Record, and Form SF-1221, Statement of Transactions According to
Appropriations, Funds, and Receipt Accounts (Foreign Service Account), of the
appropriate U.S. Agency(s).
b. Domestically, such adjustments occur through a
journal voucher which must be approved by an officer designated by
FMP/F/DFS/FO. The amount to be charged as a payment and the amount to be
credited as a receipt must be shown and reflected on Form SF-1221 as a payment
under Disbursements for the U.S. Agency making payment, and as an
appropriation refund under Collections for the U.S. Agency receiving the
payment.
4 FAH-3 H-427 TAX WITHHOLDING AND
REPORTING
4 FAH-3 H-427.1 Withholding
Requirements
(TL:FMP-3; 05-30-1995)
The Departments paying offices must secure a payees
Taxpayer Identification Number (TIN) where required (see 4 FAH-3 H-417)
before issuing a payment. U.S.-based vendors normally include their TIN on
their invoices. If the payee is an individual, the social security number is
the TIN. If the individual does not provide their TIN, backup withholding of
20 percent must be withheld from the gross payment. The total gross payment and
the Federal tax withheld is recorded at year end on IRS Form 1099 (see 4 FAH-3 H-417).
4 FAH-3 H-427.2 Reporting Interest
Payments
(TL:FMP-3; 05-30-1995)
The Departments paying offices are to report all interest
paid to individuals subject to the Prompt Payment Act (see 4 FAH-3 H-417).
4 FAH-3 H-428 THROUGH H-429 UNASSIGNED