4 FAH-3 H-360
ACCOMMODATION EXCHANGE
(CT:FMP-96; 08-10-2017)
(Office of Origin: CGFS/FPRA/FP)
4 FAH-3 H-361 GENERAL PROVISIONS AND
GUIDELINES
4 FAH-3 H-361.1 General Provisions
4 FAH-3 H-361.1-1 Purpose and
Authorities
(CT:FMP-31; 07-01-2005)
a. This subchapter contains the Department of States
regulations concerning accommodation exchange, which are applicable to all
posts.
b. The authorities pertaining to accommodation exchange
are contained in 4
FAM 360.
4 FAH-3 H-361.1-2 Definitions
(CT:FMP-96; 08-10-2017)
Accommodation exchange transaction: The
authorized exchange of equivalent monetary values in different forms to
authorized persons; for example, foreign currency in exchange for U.S. dollar
check(s).
Chief of Mission (COM): Chief
of Mission as defined in the Foreign Service Act of 1980, and principal
officers at posts not subject to the administrative jurisdiction of another
post (see 1 FAM
013.2 paragraph a).
Eligible family members (EFM):
As defined in 3
FAM 7121 and 14
FAM 511.3, children who are unmarried and under 21 years of age or,
regardless of age, are incapable of self-support. The term shall include, in
addition to natural offspring, stepchildren and adopted children and those
under legal guardianship of the employee or the spouse when such children are
expected to be under legal guardianship at least until they reach 21 years of
age and when dependent upon and normally residing with the guardian. For purposes
of this subchapter, eligible family member is the term used in lieu of
dependent as referred to in 31 U.S.C. 3342.
Foreign exchange: The system
by which one currency is exchanged for another. This enables international
transactions to take place.
Prevailing rate: The most
favorable rate that would be legally available to the U.S. Government for the
acquisition of foreign currency for its official disbursements and
accommodation exchange transactions.
Reverse accommodation exchange: The
exchange of local currency for U.S. dollars.
Sponsor: As required by 31
U.S.C. 3342, for the purpose of this subchapter, sponsor includes those
categories of personnel and contractors as listed in 4 FAH-3
H-362.1-1 paragraph b(1) through (4).
4 FAH-3 H-361.2 Guidelines for
Authorizing Accommodation Exchange
(CT:FMP-82; 09-04-2013)
a. The Chief of Mission should determine whether
accommodation exchange services will be provided at the post. The Chief of
Mission considers the availability of U.S.-owned foreign currency in the
country and satisfactory local banking and/or automatic teller machine (ATM)
facilities for obtaining the currency before determining if these services by
the Class B cashiers should be authorized. Periodically the Office of Global
Disbursing Operations (CGFS/DO) will request that the post revalidate its
rationale for providing accommodation exchange.
b. The Chief of Mission takes into consideration the
following when determining if accommodation exchange services by the Class B
cashiers should be authorized:
(1) Individuals are required to obtain their foreign
exchange through regular commercial banking facilities, ATMs, or currency
exchange businesses if such facilities are adequate, secure, and convenient,
and arrangements can be made for the cashing of U.S. Treasury checks and
personal checks. An exception may be made for newly arrived permanent
personnel, and temporary personnel (e.g., employees on TDY or VIP visits) whose
stay is not of such duration to warrant setting up personal banking
arrangements; and
(2) When satisfactory local commercial banking
facilities, ATMs or currency exchange businesses are available for the purchase
of U.S. dollars with foreign currency, personnel should normally be required to
use these facilities.
c. Having the Class B cashier provide accommodation
exchange increases the amount of the cashier advance and creates a greater risk
of the cashier receiving an uncollectible check. If post wishes to provide
accommodation exchange on-site and local conditions permit, the post should
pursue having a commercial bank, rather than the cashier, provide this service.
4 FAH-3 H-361.3 Scope of
Transactions
4 FAH-3 H-361.3-1 Authorized
Transactions
(CT:FMP-82; 09-04-2013)
a. When authorized by the Chief of Mission, the Class B
cashiers can conduct all types of accommodation exchange described in this
subchapter. This accommodation exchange service is not a substitute for
private banking. Transactions that can be handled through an individuals
private bank or through a private banking service located at the embassy should
not be authorized (e.g., paying employees personal bills through the cashiers
operation, purchase of a privately owned vehicle, purchase of a residence).
b. The Class B cashiers are authorized to pay out
foreign currency in exchange for U.S. currency and U.S. dollar instruments, as
well as in exchange for foreign currency checks drawn by the U.S. disbursing
officer (USDO) on official checking accounts. The Class B cashiers may perform
other accommodation exchange transactions only with special written
authorization from the financial management officer (FMO) in conjunction with
the USDO, such as conversion from one local currency to a different local
currency. (See Cashier User Guide (CUG) Chapter 8 for special procedures.)
4 FAH-3 H-361.3-2 Compliance With
Laws and Regulations
(CT:FMP-82; 09-04-2013)
Whenever accommodation exchange services are established,
the Chief of Mission or designee takes actions necessary to assure that all
accommodation exchange is performed in full compliance with U.S. Government and
host government laws and regulations; and that all American Government
personnel are familiar with the provisions in 3 FAM 4123 and
22 CFR 1203.735-206, Economic and Financial Activities of Employees Abroad.
The Chief of Mission has the authority to require all U.S. Government employees
to obtain their foreign currency through U.S. Government facilities when the
Chief of Mission deems it necessary in order to assure full compliance.
4 FAH-3 H-361.3-3 Cashing
Negotiable Instruments
(CT:FMP-82; 09-04-2013)
a. In consultation with the servicing USDO, the
financial management officer (FMO) or the management officer will set a per
check or per day limit on the amount of foreign currency that can be purchased
from the Class B cashier. Normally, this limit will be not more than $500,
with a minimum check amount of $50. Checks are cashed if the presenter is
eligible for accommodation exchange in accordance with 4 FAH-3
H-362.1-1.
b. Checks may be cashed for other U.S. citizens who
have been previously designated as having official business with the embassy,
such as Congressional and Congressional staff delegations, only when approved
by the Chief of Mission or other designated official. Designations of such
individuals are normally included in telegrams or other official communications
from the Department, other agencies, or other embassies.
c. Dollar checks must be drawn on banks or branches
located in the United States, made payable through a U.S. bank.
d. Before cashing checks for accommodation exchange,
the Class B cashiers must apply the same tests as for all check cashing, such
as current dates, drawers permanent address, endorsements, identification, and
the other requirements of the Cashier User Guide (CUG) Chapter 8. Details of
identification are entered on Form DS-1694, Exchange Transaction Record.
Automated cashiering system users enter the details in the description field of
the accommodation exchange screen to enable USDOs or cashiers to locate and
communicate with individuals at a later date if necessary (see 4 FAH-3
H-366.1).
e. Checks originally accepted for accommodation
exchange that are uncollectible are handled in accordance with CUG Chapter 9.
4 FAH-3 H-361.3-4 Office Hours for
Accommodation Exchange
(TL:FMP-2; 04-30-1995)
Accommodation exchange facilities are provided in a
convenient manner to benefit all authorized persons. The office hours for all
public transactions, including accommodation exchange, are described in 4 FAH-3
H-399.4. For employees located at distances from any present exchange
facility, the most feasible arrangements should be made to provide
accommodation exchange.
4 FAH-3 H-362 SALE OF FOREIGN CURRENCY
4 FAH-3 H-362.1 Persons or Entities
for Whom Accommodation Exchange Transactions are Authorized
4 FAH-3 H-362.1-1 Eligible
Individuals
(CT:FMP-82; 09-04-2013)
When the Chief of Mission has authorized accommodation
exchange transactions, foreign currency may be paid out for:
a. U.S. dollars in the form of checks, drafts, bills of
exchange, other instruments payable in U.S. dollars, and cash; and
b. In the same currency in which drawn, foreign
currency checks drawn by USDOs on official depositary accounts for the
accommodation of the following:
(1) Civilian employees of the U.S. Government who are
U.S. citizens, including direct hire, contract and those under a U.S. Agency
for International Development participating agency service agreement;
(2) Members of the Armed Forces of the United States,
when facilities are not available through military channels;
(3) Contractors and subcontractors who are U.S. firms
or citizens engaged on U.S. Government projects in foreign countries, and the
personnel of such contractors who are U.S. citizens;
(4) U.S. citizen personnel of authorized U.S.
non-governmental organizations operating with agencies of the U.S. Government;
(5) Eligible family members of individuals (sponsors)
listed in items (1) through (4) under the following conditions:
(a) When the eligible family member who is a U. S.
citizen presents a U.S. Treasury check payable to the presenter; and
(b) When the eligible family member holds a valid power
of attorney or has a Joint Account with the eligible employee. The Power of
Attorney for Accommodation Exchange in the CUG Chapter 8 is the suggested format for this purpose.
However, any other valid power of attorney may be accepted if it contains
substantially the same provisions.
(6) Eligible family members of individuals listed in
items (1) through (3) without powers of attorney, at safe haven posts to which
ordered in an emergency evacuation, upon presentation of proper identification,
up to a maximum of $4,000 during the first month following evacuation and $800
thereafter for all eligible family members of any one person in any month;
(7) Third-country nationals (TCN) employed as civilian
employees or under contracts of the U.S. Government or contractors or
subcontractors who are U.S. firms engaged in U.S. Government projects in
foreign countries; provided, that the checks presented by the third-country nationals
are U.S. Treasury dollar checks or U.S. dollar checks issued by the contractors
to the third-country national cashing the check (TCN is defined in 3 FAM 7270);
(8) U.S. citizen personnel of commissary, recreation,
and mess facilities operated for post personnel; and
(9) Certain U.S. organizations or organizations
sponsored by the U.S. Government where such exchanges:
(a) Do not violate local government currency law;
(b) Promote the interest of the U.S. Government abroad;
(c) Do not adversely impact or impair the operations of
the Embassy; and
(d) Are approved by the Department of State.
An example would be to provide accommodation
exchange to American schools to assist them in purchasing books and other
supplies not available in the country.
4 FAH-3 H-362.1-2 Cashing U.S.
Treasury Checks Only
(CT:FMP-31; 07-01-2005)
Foreign currency may be paid out for U.S. dollar Treasury
checks in countries where local commercial banks charge excessive fees in
exchange transactions or unreasonably delay credit of deposits to personal
accounts, when presented by the person to whose order drawn, for the
accommodation of:
(1) Any U.S. citizen;
(2) Retired Foreign National employees of the U.S.
Government when the Treasury checks cover payments of Civil Service annuities;
or
(3) Local employees who have received U.S. Federal
income tax refunds.
4 FAH-3 H-362.2 All Other Local
Currency Requirements
(CT:FMP-31; 07-01-2005)
In addition to covering the personal requirements of all
authorized personnel, these accommodation exchange policies and procedures
apply to all other local currency requirements arising out of contractor and
voluntary agency activities covered by the pertinent contract or agreement
with, or approved by, the United States.
4 FAH-3 H-363 SALE OF UNITED STATES
CURRENCY
(CT:FMP-31; 07-01-2005)
The sale of U.S. currency (i.e., cash) is regulated and
limited in availability. Such U.S. currency may be sold for U.S. dollar
negotiable instruments only in such amounts as may be required within locally established
currency regulations, for the accommodation of U.S. citizen employees and other
persons authorized accommodation exchange privileges under 4 FAH-3
H-362.1-1, for the following purposes:
(1) For travel outside the country; and
(2) When required to make cash purchases at authorized
U.S. Government facilities such as commissaries, snack bars, and theaters.
4 FAH-3 H-364 PURCHASE OF FOREIGN
CURRENCY
4 FAH-3 H-364.1 General Provisions
(CT:FMP-82; 09-04-2013)
Foreign currency cash may be purchased or repurchased by
the Class B cashier from persons to whom it was previously sold, upon departure
from post only, in accordance with the provisions of this section. The
purchase of such foreign currency is prohibited if the currency was acquired in
violation of the Departments policy governing business activities of personnel
and their eligible family members (see 3 FAM 4123 and
CUG Chapter 8, Accommodation Exchange).
4 FAH-3 H-364.2 Authorized
Purchases of Foreign Currencies
4 FAH-3 H-364.2-1 From U.S.
Government Employees
(CT:FMP-96; 08-10-2017)
Foreign currency may be purchased from civilian employees
of the U.S. Government who are U.S. citizens, and members of the Armed Forces
of the United States, only when the person is departing the post on transfer or
home leave.
a. Departure on transfer:
(1) Purchase without advance approval - The maximum
amount that can be purchased by the USDO or the Class B cashier without
requiring documentation from a person who is departing on transfer is the sum
of the employees salary and allowances as paid on the biweekly payroll for two
biweekly pay periods.
(2) Purchase requiring advance approval - Foreign
currency in excess of the limit noted in paragraph (1) may be purchased from a
person upon receipt of a written application that has been approved in writing
by the Chief of Mission or designee, subject to the limitations of 4 FAH-3
H-364.3 paragraph a and 4 FAH-3
H-364.4. (See also Cashier User Guide, Chapter 8.) An application from
personnel of agencies other than State must also be approved individually in
writing by the highest ranking officer of the agency concerned, or his or her
designee. The letter of application is addressed to the Chief of Mission, and
includes the following items:
(a) The amount of local currency in excess of the
biweekly pay and allowances limit;
(b) The employees anticipated departure date;
(c) A complete description of the source of the
currency;
(d) A declaration that none of the currency was acquired
in violation of local agency regulations or exchange control laws of the
country concerned; and
(e) A request for approval to sell the local currency to
the USDO.
(3) Any foreign currency obtained from the sale of
personal property is separately controlled by the provisions of 4 FAH-3 H-368.
The Class B cashier can purchase such currency only with the approval of the
Chief of Mission or his or her designee for Department of State employees and
also by heads of other agency for non-Department of State employees. The
financial management officer (FMO), on behalf of the approving officials,
should consult with the servicing USDO about the approval of large exchange
transactions, e.g., proceeds derived from the sale of employees personal
property, that could exceed local currency needs.
b. Departure on Home Leave.
The purchase of foreign currency from a direct hire
U.S. Government employee departing the post on home leave and return to the
post is limited to the amount of any local currency acquired from the sale of
personal property that the person plans to replace while on home leave subject
to 4 FAH-3
H-368 provisions.
4 FAH-3 H-364.2-2 From Eligible
Family Members of U.S. Government Employees
(CT:FMP-96; 08-10-2017)
Foreign currency may be purchased from the primary
eligible family member of a U.S. Government employee cited in 4 FAH-3
H-364.2-1 paragraph a under the same
conditions, when:
(1) The employee has died while assigned to the post;
(2) The employee has preceded his or her eligible
family members in departure from the post, to the extent the employee has not
used the privilege, i.e., the authorization in 4 FAH-3
H-364.2-1 paragraph 2(a) becomes a
family authorization; or
(3) The eligible family member resides at other than
the employees duty station under separate maintenance allowance provisions.
This does not affect the employees authorization at his or her duty station.
4 FAH-3 H-364.2-3 From
Contractors and Third Country National (TCN) Personnel
(CT:FMP-96; 08-10-2017)
a. Foreign currency may be purchased from TCN
personnel; and from U.S. citizen personnel of contractors and subcontractors in
U.S. firms or citizens engaged in government projects in the country, subject
to the check limitations in 4 FAH-3
H-362.1-1 paragraph b(7), and provided
the individual was assigned to the country for a period of at least 12 months
and the individual is permanently leaving the country. The management officer
at post may waive the 12-month requirement without the approval of the Office
of Financial Policy (CGFS/FPRA/FP) when the employment qualifying the
individual or firm is curtailed by the U.S. Government.
b. The policy governing conversion of foreign currency
from the sale of individual personal property and the disposition of the
proceeds is the same for persons in this category as for U.S. Government
employees to the extent that such persons enjoy the diplomatic importation or
tax privileges because of their contractual or employment relationship to the
U.S. Government. (See 4 FAH-3 H-368.)
4 FAH-3 H-364.2-4 From Other Individuals
(TL:FMP-2; 04-30-1995)
The purchase of foreign currency from individuals other
than as authorized in 4 FAH-3
H-364.2-1 through 3 above is prohibited except that such currency may be
repurchased from individuals to whom sold as authorized in 4 FAH-3
H-364.3.
4 FAH-3 H-364.3 Repurchases of
Foreign Currency
(CT:FMP-96; 08-10-2017)
a. Foreign currency may be repurchased from any person
who acquired foreign currency from the disbursing facility as cited in 4 FAH-3
H-362.1-1, provided:
(1) The person is permanently leaving the country; and
(2) The amount being repurchased is reasonable in view
of the original purchase, duration of time spent in the country, and normal
living expenses. The reasonable amount for persons who were temporarily or
permanently domiciled in the country, such as personnel of non-government
agencies, may in no case exceed the basic amount authorized in 4 FAH-3
H-364.2-1 paragraph a, i.e., the sum
of the individuals salary and allowances for two biweekly pay periods. The
USDO, authorized Class B cashier or financial management officer may require a
satisfactory written explanation before purchasing the foreign currency when it
is believed that the amount submitted for repurchase is questionable.
b. The foreign currency may be purchased by the Class B
cashier with U.S. dollar Treasury checks(s), cash and/or EFT. The amount of
cash that may be issued is limited to the estimated requirements of the person
and eligible family members:
(1) For travel to the United States or new post,
provided that the exportation of U.S. cash is not prohibited or limited by
local law; or
(2) For local purchases under 4 FAH-3 H-363.
c. The foreign currency is to be acquired at the
USDOs prevailing rate.
4 FAH-3 H-364.4 Limitation/Restrictions
on Foreign Exchange Purchases
(CT:FMP-96; 08-10-2017)
a. Foreign currency purchases are subject to the
following limitations set by the Treasury Department to curtail exchange losses
to the U.S. Government.
(1) Disbursing officers will ensure that the amount of
foreign currency purchased with U.S. dollars is commensurate with immediate
disbursing requirements. If foreign currency can be readily obtained, the
disbursing officer should purchase an amount which, together with the checkbook
balance on hand at time of purchase, would not exceed estimated requirements
for the ensuing 5 to 7 days. If foreign currency is not readily available, the
purchase should be in an amount not exceeding that required for the ensuing
seven days. Exceptions may be approved only by Treasury. (See 1 TFM
4-9045.20.)
(2) As a result of this limitation, the disbursing
officer should establish with each serviced post any necessary guidelines and
controls on currency purchases and collections made by the post, in order to
prevent unduly large balances. This may include a requirement for the post to
consult the USDO on major purchases or collections of foreign currency, such as
that resulting from large proceeds of sales by employees, as detailed in 4 FAH-3 H-368.
b. Purchase of foreign currency authorized by 4 FAH-3
H-364.2-1 paragraph a(2) derived from
the sale of an individuals personal property is restricted to the provisions
of 22 CFR Part 136 and 4 FAH-3 H-368.
This purchase is in addition to the purchase of currency equivalent to two
biweekly pay periods of salary and allowances authorized in 4 FAH-3
H-364.2-1 paragraph a(1).
4 FAH-3 H-365 SPECIAL EXCHANGE
ACTIVITIES
4 FAH-3 H-365.1 Sale of Local
Currency to Military Disbursing Officers and Cashiers
(CT:FMP-31; 07-01-2005)
Military disbursing officers and cashiers must purchase
their local currency from the USDO or other U.S. Government sources whenever it
is beneficial to the U.S. Government, e.g., a better exchange rate is obtained
through combined bulk buying of local currency. Military disbursing officers
and cashiers may purchase their local currency from the USDO if the physical
location or simplicity of the transaction makes this a preferred method. Where
there is no advantage in buying local currency from the USDO, the purchase is
made through local banking facilities.
4 FAH-3 H-365.2 Transactions in
Support of Binational Organizations
(TL:FMP-2; 04-30-1995)
The USDO may acquire foreign currency from local
organizations and institutions participating in U.S. Government sponsored
binational programs. The purchase must be at the prevailing rate, must not
contravene local currency laws, and must be for conversion to a U.S. Treasury
dollar check to pay certain U.S. dollar obligations. In countries where local
banking practices permit organizations to maintain U.S. dollar accounts, use of
commercial banking facilities should be encouraged. Purchase of foreign
currency from foreign national individuals of those organizations is
prohibited.
4 FAH-3 H-366 RECORDING ACCOMMODATION
AND OFFICIAL EXCHANGE TRANSACTIONS
4 FAH-3 H-366.1 Exchange
Transactions Record
(CT:FMP-96; 08-10-2017)
a. Authorized class B cashiers maintain a complete
record of all check cashing and exchange transactions, official as well as
accommodation, on Form DS-1694, Exchange Transaction Record. The record serves
to identify persons using the facility and to identify negotiable instruments
in cases of loss in transit or return due to insufficient funds (see Cashier
User Guide, Appendix A).
b. Separate records are maintained for dollars and for
each kind of foreign currency at posts dealing in more than one foreign
currency.
4 FAH-3 H-366.2 Exchange
Transactions Voucher
(CT:FMP-96; 08-10-2017)
Exchange transactions are summarized on Form OF-234,
Exchange Transactions Voucher, by type of exchange performed (see Cashier User
Guide, Appendix A).
4 FAH-3 H-366.3 Accountability
Record
(CT:FMP-31; 07-01-2005)
Amounts recorded as receipts and payments on Forms
DS-1694, Exchange Transaction Record, and OF-234, Exchange Transactions
Voucher, are totaled and posted to the cashiers accountability record.
4 FAH-3 H-367 INQUIRIES
(CT:FMP-82; 09-04-2013)
General questions and guidance concerning the application
of the above policy and regulations should be addressed to CGFS/FPRA/FP.
Specific questions or guidance concerning issues such as foreign currency
exchange, foreign banking and international agreements related to foreign
currency for the Department and other agencies should be addressed to CGFS/DO.
4 FAH-3 H-368 DISPOSITION OF EMPLOYEES
PERSONAL PROPERTY OVERSEAS AND CONVERSION OF PROCEEDS
4 FAH-3 H-368.1 Purpose and
Authorities
(CT:FMP-31; 07-01-2005)
a. The disposition of employees personal property
overseas often results in a request for conversion of proceeds from local
currency to U.S. dollars. Therefore, guidance related to disposition of
personal property is included in this subchapter.
b. Title III of the State Department Basic Authorities
Act (22 U.S.C. 4341 - 4343) is the legislation covering disposition of
employees personal property overseas. Regulations implementing this statute
are published in 22 CFR 136.
4 FAH-3 H-368.2 Employees Personal
Property Sales Abroad
(CT:FMP-31; 07-01-2005)
a. Personnel under the authority of a Chief of Mission
may sell their personal property with prior permission under controlled
conditions before departure from post on transfer or home leave orders.
Profits cannot be retained from the sale of personal property having more than
minimal value to individuals who do not have customs or sales tax exemption
status.
b. The post procedure must provide control over all
sales of personal property, whether or not a reverse accommodation exchange
will be made. Post check-out procedures for departing employees should show
that sales have been reported or that the employee certified no sales were
made.
c. Detailed guidance is contained in the CFR for the
mandatory post procedure required by the regulations. To ensure that the
intent of the regulations is followed, the post procedure should include at
least the three essential steps described below. A sample three page form
which can be adapted at post to record these steps and provide an official
audit trail for both the post and the employee is contained in 4 FAH-3
Exhibit H-368.2. Although the post may adapt this form to local use, the
exact language for the statements and certifications by employees and by
authorizing officers must appear in any post version of the form.
d. Although the term employees is used throughout the
material that follows, the procedures apply equally to contractors who enjoy
importation or tax privileges because of their contractual relationship with
the U.S. Government as provided in 22 CFR Section 136.6. Also, for purposes of
this section, the term personal property is not intended to include assets
that may have been acquired as a result of a family members business
activities at the overseas location.
(1) Approval to sell based on the
employees list of proposed sale items and estimated sales prices. The
authorizing officer must determine that the sale will meet the Chief of
Missions criteria for employees personal property sales at that post. (See 4 FAH-3
Exhibit H-368.2 Schedule A.)
(2) Report of items sold, proceeds
and profits. The employee must report the items sold, with amounts
collected and resulting profits. Following the post procedure guidelines, the
employee designates charitable recipients and amounts for the profits that
cannot be retained, and certifies the completeness and accuracy of the
entries. The authorizing officer must verify the amounts and proposed
distribution of profits in accordance with post guidelines and approves the
request for payments to designated recipients and the employee. (See 4 FAH-3
Exhibit H-368.2 Schedule B.)
(3) Reverse accommodation exchange of
proceeds. The employee deposits local currency proceeds (approved in
step 2 above) with the Class B cashier, who prepares the reverse accommodation
exchange voucher for the authorized certifying officer. The form summarizing
the entire set of approved sale transactions becomes an official record to back
up the certified exchange voucher and to assist the employees tax reporting
purposes. (See 4 FAH-3
Exhibit H-368.2 Schedules A and B.)
4 FAH-3 H-368.3 Number and Timing
of Reverse Accommodation Exchanges
(CT:FMP-96; 08-10-2017)
The post procedure will specify the number and timing of
authorized currency conversions of sales proceeds that may be made for the
employee. This is normally not more than two: one for sale of a privately
owned vehicle, and one for all other proceeds. These conversions may be made
in addition to the conversion of the two biweekly pay periods of local currency
conversion authorized in 4 FAH-3
H-364.2-1 paragraph a(1). The post
procedure should also specify that larger reverse accommodation exchange
transactions should be made by EFT or check rather than cash.
4 FAH-3 H-368.4 Post Procedure File
(CT:FMP-31; 07-01-2005)
A copy of the post procedure covering disposition of
employees personal property should be sent by the post management officer to
the regional bureau post management officer when first issued and whenever
revised. Department personnel refer to this copy when the post requests guidance
or interpretation of the 22 CFR 136.
4 FAH-3 H-369 UNASSIGNED
4 FAH-3 Exhibit H-368.2
Sample Memo
(CT:FMP-82; 09-04-2013)
TO: (Designated Authorizing Officer)
FROM: (Individual Requesting Approval to
Sell/Convert)
SUBJECT: Approval to Sell and Convert Proceeds
REFERENCE: (a) Post Reference; (b) 4 FAH-3 H-368;
(c) 22 CFR 136
In conformance with local law, U.S. law, State Department
and post regulations, approval is requested to sell and convert the proceeds
from personal property sales. The attached Schedules A & B are submitted
as official documents to record financial transactions resulting from the sale
and to document the necessary approval confirming that all requirements are
met.
This form records the sales in local currency units
(LCU). When sales are in both dollars and local currency, separate forms are
used, with one form to show dollars. The dollar entries from all Schedule B
lines 5B & 7 are combined where a dollar check is due for the same payee.
The following definitions are used in submitting this
form:
COST BASISInitial price paid (or
market value if acquired by gift or inheritance), cost of inland/overseas
transportation (if not U.S. Government reimbursed), shipping insurance, taxes,
duties, customs fees, or other such charges, and capital improvements, but not
for insurance on items in use or for storage maintenance, repair or related
costs, or financing charges. I WILL PROVIDE EVIDENCE OF THESE COSTS IF
REQUESTED BY THE APPROVING OFFICER.
MINIMAL VALUEAcquisition cost in
U.S. dollars (or retail value if by gift) is within the limit set by the
Administrator of General Services Administration for minimal value of foreign
gifts under 5 U.S.C. 7342. (See post policy or contact the Financial
Management Officer or Administrative Counselor to determine the current limit
set by GSA.)
UNRETAINABLE GAIN (PROFIT NOT RETAINABLE)The
profit amount is the sale price (Col 5) less the cost basis (Col 4). Whether
an employee may retain profit is determined by the buyer status of exemption,
Departmental guidelines and post regulations. If a sale of any item was to an
exempt person or entity, or profit is otherwise retained, the amount is entered
in Col 6, and the buyers name and exempt status are shown in Col 7.
PROFIT VERIFICATION & REVERSE ACCOMMODATION EXCHANGE
APPROVAL
(Schedule A & B)
The amounts
and recipients of nonretainable profit and retainable proceeds have been
verified and accepted, except for the
following:______________________________________
LCU amounts
in Schedule B (Lines 5B & &) are approved for reverse accommodation
exchange payable as shown: OR
Conversion of
LCU and/or payment in dollars is limited by post regulations to the following
allowed maximums: LCU converted:
Dollar Payment:
Other
instructions to certifying officer:
Other
comments for the audit file:
Authorizing Officer & Date:
SCHEDULE A-SUMMARY OF PROPOSED AND ACTUAL
SALE
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Employees:
Post of Assignment:
Projected Departure:
I request approval to dispose of the following personal
property. I understand that the sale and any later conversion of proceeds to
dollars must be conducted in accordance with U.S. and local laws and all
relevant regulations issued by the Department of State and the post as
referenced above. I understand further that violations of these regulations
shall be grounds for disciplinary action.
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REQUEST TO SELL
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ACTUAL SALE
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Complete Columns (1) Through (4) Before
Sale
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Complete Columns (5) Through (7) After
Sale
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(1)
Property Description
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(2)
Date Acquired
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(3)
Est. Sale
Price (LCU)
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(4)
Cost Basis
(LCU)
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(5)
Act. Sale
Price (LCU)
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(6)
Unretainable
Gain (LCU)
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(7)
Purchasers Name/Title
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1. Vehicle Description
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2. Items with Acquisition Cost over
$
Minimal Value
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Subtotal Items Over Minimal Value
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3. Items with Acquisition Cost of $ Minimal Value or Less
Total of All
Items __
________ _________
4. Total of all Proceeds (1+2+3
above) ________
_________
Request for Approval to Sell: Verified
Correct:
Employee
Signature/Date Employee Signature/Date
APPROVAL TO SELL: The proposed sale
above complies with host country laws or regulations, any governing
international law, and with U.S. law, Department of State and post
regulations. Approval is granted to sell, except for items:
Authorizing Officer/Date
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SCHEDULE B-DISPOSITION OF SALES PROCEEDS
AND REQUEST FORM
REVERSE ACCOMMODATION EXCHANGE
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Employee:
I request approval to convert proceeds
from the sale into U.S. dollars as shown below. I certify that, to the best
of my knowledge and belief, all of the statements made and documents
submitted to support this request for approval for sale of personal property
and conversion of proceeds into U.S. dollars, if applicable, are true,
correct, complete, and are made in good faith. I understand that a false
statement on any part of this request may be grounds for criminal prosecution
including imprisonment for not more than five years or a fine of not more
than $10,000, or both, civil penalties and/or disciplinary action.
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1. Total : LCU proceeds
collected (Schedule A, Col 5, Line 4) LCU
2. Subtract : LCU profit not
retainable by employee (Schedule A, Col 6, Line 4) - LCU
3. Equals : LCU proceeds
retainable by employee Line 1 minus 2 above = LCU
4. Subject : LCU held out by
employee for use before departure - LCU
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PROFIT NOT RETAINABLE
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PROCEEDS RETAINABLE
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5A. Balance : LCU profit not
retainable
(Line 2 above) LCU
6A. Subtract : Profit donated to
an approved recipient
(receipt for donation is attached) LCU
7. Balance : LCU remaining
profit unretainable to be
converted to a dollar check for donation to
another
recipient (Line 5A minus Line 6A above)
LCU
8. Convert : Prevailing Rate Dollar
Check
LCU to $1.00 $ ______
Payee
(Donee) _
Address
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5B. Balance : LCU retainable proceeds
which can be
converted by reverse accommodation
exchange to a dollar check to employee
(Line 3 minus Line 4 above)_____ LCU
6B. Convert : Prevailing Rate
Dollar Check
LCU_ to $1.00 $ ___
Payee (employee) _________
Address ___
 9.
Schedule B Verified Correct. Request Approval of
Conversion of Items 6B and 8.
Employee Signature/Date ___
10. Conversions 6B and 8 Approved Except
as Follows:
___
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Approving Officer: ___
Signature/Date
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