4 FAH-3 H-400
VOUCHERS AND CLAIMS
4 FAH-3 H-410
GENERAL
(CT:FMP-98; 01-19-2018)
(Office of Origin: CGFS/FPRA/FP)
4 FAH-3 H-411 SCOPE
4 FAH-3 H-411.1 Description and
Purpose
(CT:FMP-43; 10-31-2007)
This chapter is applicable to voucher and claim processing
and certification. It serves as the single, comprehensive, and authoritative
source of procedural information related to the policies and regulations in 4
FAM 400.
4 FAH-3 H-411.2 Organization and
Layout
(CT:FMP-81; 08-29-2013)
The organization of this chapter reflects the flow of work
within the area of vouchering and claims. General sections (those applicable
to all types of vouchers) are followed by vouchering for special items, such as
travel, travel advances, transportation, and claims. It is organized as
follows:
(1) 4 FAH-3 H-410General: Provides information common to all topics in this
chapter and the forms used;
(2) 4 FAH-3 H-420Voucher Examination: Presents the work flow in the
vouchering process from the receipt of invoices through the approval and
prepayment examination stages;
(3) 4 FAH-3 H-430Voucher Certification and Payment: Describes the
certification process and states the Departments prescribed procedures on
certification; elaborates on liabilities of certifying officers; and describes
some aspects of the disbursement process;
(4) 4 FAM 440Vouchering of Special
Items: Contains information on special or nontypical items of
expenditure and describes exceptions to the rule as stated in 4 FAH-3 H-410,
4 FAH-3 H-420,
and 4 FAH-3
H-430, and must be used in addition to these subchapters;
(5) 4 FAM 450Special Voucher
Processes: Contains prescribed procedures for processing and paying
other vouchers such as imprest funds, other agency expenses; and purchase
cards;
(6) 4 FAH-3 H-460Travel and Travel Advances: Contains special procedures for
processing and paying travel vouchers; issuing advances to travelers on
official business; the recovery of such advances by submitting a travel voucher
and/or by direct refund; the U.S. Government charge card and travelers check
programs; and congressional travel;
(7) 4 FAH-3 H-470Transportation of Passengers and Things: States the
procedures on billings for the transportation of passengers and property by a
carrier, carriers agent, travel agency, or transfer company, as well as the
treatment and redemption of unused tickets; and
(8) 4 FAM 480Claims Against the
United States: Presents the prescribed procedures for handling claims
against the U.S. Government that are not supported by conclusive contractual
obligations and documents. This subchapter provides an overview of the general
claim settlement functions and a brief discussion of several types of claims
not covered elsewhere.
4 FAH-3 H-412 FORMS
(CT:FMP-98; 01-19-2018)
The following are some of the major vouchering forms
prescribed and referred to in this chapter. This list is inclusive, not
exhaustive, and contains only the major forms used in the vouchering process:
(1) Form OF-1012, Travel
Voucher, used to process travel expenses and allowances for claims processed
domestically;
(2) Form DS-189, Travel
Reimbursement Voucher, used to process travel expenses and allowances for
overseas claims;
(3) Form DS-2076, Purchase
Order, Receiving Report and Voucher (formerly OF-206), used to voucher
purchases and services other than personal where payment is to be made by a
USDO. May also be used in place of special forms that are not readily
available;
(4) Form DS-7635, Cashier
Reimbursement Voucher and/or Accountability Report, used by a cashier to
account and be reimbursed for imprest funds;
(5) Form DS-1088-A, Signature
Card for Certifying Officers, contains the official signature of an authorized
certifying officer;
(6) Form SF-1034, Public
Voucher for Purchases and Services Other Than Personal, used to voucher
domestic and foreign disbursements for purchases and services other than personal;
(7) Form SF-1047, Public
Voucher for Refunds, used to process refunds due remitters;
(8) Form SF-1080, Voucher for
Transfers between Appropriations and/or Funds, used as a charge document and
disbursement voucher by the agency receiving the funds;
(9) Form SF-1081, Voucher and
Schedule of Withdrawals and Credits, used by agencies within the Treasury
disbursing area to conduct interagency expenditure transactions;
(10) Form SF-1113, Public
Voucher for Transportation Charges, used to pay public carriers;
(11) Form OF-1164, Claim for
Reimbursement for Expenditure on Official Business, used to pay miscellaneous
expenses, local travel, and telephone calls;
(12) Electronic Form SF-1166,
Voucher and Schedule of Payments, used to schedule payments in place of
transmitting individual basic vouchers and supporting documentation.
4 FAH-3 H-413 Management Controls
4 FAH-3 H-413.1 Scope
(CT:FMP-43; 10-31-2007)
This section describes the specific management controls
for voucher and claims processing and certification. The focus is on the
internal control checks and balances that are to be carried out in addition to
the workflow steps described in this chapter.
4 FAH-3 H-413.2 Documentation
(CT:FMP-43; 10-31-2007)
There should be complete, accurate, and easily accessible
documentation for the use of all persons involved in voucher and claim
processing. The documentation should include policy, procedures manuals, work
flow descriptions and, if applicable, systems manuals.
4 FAH-3 H-413.3 Transactions and Events
Record
(CT:FMP-43; 10-31-2007)
a. Transactions are to be recorded promptly, and should
be based on:
(1) Receipt of goods;
(2) Receipt, examination, approval, and certification
of vouchers;
(3) Claims made against the U.S. Government; and
(4) Recognition of claims of the U.S. Government
against its debtors.
b. The intent is to accelerate processing (to conform
to statutes such as the Prompt Payment Act) and to maintain updated information
for reporting, reviewing, and auditing purposes.
4 FAH-3 H-413.4 Execution of
Transactions and Events
(CT:FMP-43; 10-31-2007)
Each organizational entity should establish procedures
that will prevent employees from exceeding their authority and ensure that only
authorized persons can:
(1) Receive goods and approve performance of services;
(2) Examine and certify vouchers for payment; and
(3) Settle claims.
4 FAH-3 H-413.5 Separation of
Duties
(CT:FMP-81; 08-29-2013)
a. Operations should be separated to reduce the risk of
error, waste, and wrongful acts (see GAO Title 7, Section 6.6(B), Policies and
Procedures Manual, Fiscal Procedures for Guidance of Federal Agencies,
Separation of Duties).
b. In accordance with prudent internal control
practices, the following operations should be separated from one another:
(1) Purchasing goods and services;
(2) Recording receipt of goods and services;
(3) Examining invoices and preparing vouchers (i.e.,
voucher examination);
(4) Certifying vouchers;
(5) Disbursing funds;
(6) Settling claims; and
(7) Reconciling accounting records.
c. At bureaus/offices and posts with limited staff,
duties may overlap. In the event such overlaps are necessary, post should
implement a system of checks and balances with active supervision in place to
ensure that responsibilities are being carried out properly. Where an overseas
post with limited staff requires the same individual to perform multiple
functions that could create a potential conflict of interest, the post should
seek procedural guidance from relevant policymaking authorities in the Office
of Financial Policy (CGFS/FPRA/FP). Also see 4 FAH-3 H-060,
Authorization Procedures, concerning separation of duties for certifying
officers.
4 FAH-3 H-413.6 Supervision
(CT:FMP-43; 10-31-2007)
Management control objectives are achieved by instituting
a system of supervision. Supervision of voucher processing and certification
includes:
(1) Assigning responsibilities and duties to branch
chiefs, supervisors, team leaders, voucher examiners, and clerical staff;
(2) Reviewing the work periodically; and
(3) Approving the work at critical junctures.
4 FAH-3 H-413.7 Resource Access and
Accountability
(CT:FMP-81; 08-29-2013)
a. Only authorized (as defined within each
bureau/office or post) individuals should have access to certain Departmental resources.
The term resource includes funds, inventory, information, space, systems, and
equipment. For example:
(1) Procurement personnel and examiners should not be
able to enter or have write-access to receiving information; and
(2) Receiving personnel should not be able to enter or
have write-access to procurement information.
b. CGFS will determine the appropriate accounting
system accesses for system users in order to maintain proper separation of
duties.
c. Only authorized individuals should have access for
the receipt, examination, and certification of classified or confidential
nonsecurity information. To prevent unauthorized access, all incoming mail
should be clearly addressed.
4 FAH-3 H-413.8 Audit Trail
(CT:FMP-43; 10-31-2007)
a. An audit trail refers to the documentary or other
evidence in place (on hard copy or authorized electronic storage devices) that
allows the retracing of a transaction to its source.
b. For individual voucher claims, the audit trail
includes but is not restricted to:
(1) Requisition of goods;
(2) Request for proposals or solicitations;
(3) Issuance of purchase order or contract;
(4) Preparation of a receiving report or other
evidence of performance or receipt;
(5) Preparation of vendor or U.S. agency invoice or
voucher;
(6) Verification of names and signatures of
individuals authorized to approve transactions; and
(7) Maintenance of logs to track claims in transit and
voucher schedules.
c. Audit trail requirements for the entire voucher and
claim process include:
(1) Identification of accounting classification codes;
(2) Maintenance of relevant dates, such as preparation
date, processing date, and accounting date;
(3) Maintenance of records (i.e., authorization of
individuals to perform specific functions, signature cards, letter of
authorization);
(4) Retention of supporting documentation and
certificates (see 4 FAH-3
H-413.9, Records Management);
(5) Retention of vouchers, supporting documentation,
calculations, and computations, etc., for manual systems; and
(6) Maintenance, in an automated environment, of batch
control logs, header and trailer records, error listings, suspense and
exception reports, etc.
4 FAH-3 H-413.9 Records Management
(CT:FMP-43; 10-31-2007)
a. The Departments policies concerning records management
are described in 5 FAM 400; the practices and procedures for records management
are detailed in the Records Management Handbook (5 FAH-4); and a records
management page, including electronic options, is available on OpenNet.
b. If an original document is required for
investigation or inspection purposes, a copy of the original document, with a
statement signed by the requesting official that the copy on file is a true
copy of the original, may be used.
4 FAH-3 H-414 PAYING Office Contract
Files
(CT:FMP-43; 10-31-2007)
a. In accordance with GAO Titles 7 and 8 and Federal
Acquisition Regulation (FAR) 4.803(c), paying finance offices will maintain a
Paying Office Contract File of each contract, as defined in FAR 2.101, issued
for payment by that paying office. Each contract file should be kept
separately, by means of either a hard copy or machine-readable or electronic
record, documenting the actions prerequisite to, substantiating, and reflecting
the contract payments that should be cross-referenced to the payment
schedules. The following are examples of the records normally contained, if
applicable, in the paying offices contract files:
(1) The contract and any modification(s);
(2) Each bill, invoice, or voucher, with supporting
documents related to the contract;
(3) A record of each payment or receipt, including the
source of funding and the unexpended balance (obligated amount of the contract
net of payments or receipts); and
(4) Other pertinent documents.
b. The paying office should close the contract file
upon issuance of the final payment voucher.
4 FAH-3 H-415 TAX REPORTING
REQUIREMENTS
4 FAH-3 H-415.1 Scope
(CT:FMP-43; 10-31-2007)
This section defines certain key terms; identifies the
authority under which reporting to the Internal Revenue Service (IRS) is
required for payments made to certain contractors; and describes the related
reporting requirements.
4 FAH-3 H-415.2 Authority
(CT:FMP-81; 08-29-2013)
26 U.S.C. 6041 requires payers, including U.S. Government
agencies, to report to the IRS and other appropriate tax authorities payments
made to certain contractors.
4 FAH-3 H-415.3 Definitions
(CT:FMP-43; 10-31-2007)
Compensation: As used in this
subchapter, includes housing and education allowances paid domestically,
whether taxable or not; it does not include travel reimbursement if itemized on
a nonemployees invoice.
Contractor Establishment Code (CEC):
A numbering system to identify Federal contractors. Federal agencies are
required to report vendor activities for commercial vendors with Federal
contracts of $25,000 or more, using CEC numbers to identify the vendor.
Data Universal Numbering System (DUNS):
A unique 9-character identification number provided by Dun & Bradstreet.
The Federal Government requires business entities, self-employed individuals,
contractors, and individuals who provide services or goods to have a DUNS
number.
Employer identification number (EIN):
A taxpayer identification number obtained by sole proprietors, businesses, and
U.S. agencies to identify themselves when reporting wage and/or salary payments
made as employers to other contracted parties.
Taxpayer identification number (TIN):
A unique number assigned by the IRS to taxpayers (individuals, businesses, and
U.S. agencies) to be used in reporting tax and other returns. In the case of
individuals and sole proprietorships, the TIN of the individual or
proprietorship is the Social Security Number (SSN).
4 FAH-3 H-415.4 Reporting
Requirements
4 FAH-3 H-415.4-1 Employer
Identification Number (EIN)
(CT:FMP-81; 08-29-2013)
Each payment office of the Department of State (post
financial management office or the Bureau of the Comptroller and Global
Financial Services (CGFS)) is required to obtain a separate EIN by submitting
IRS Form SS-4, Application for Employer Identification Number, to the Internal
Revenue Service (IRS).
4 FAH-3 H-415.4-2 Report Dates,
Forms and Exclusions
(CT:FMP-81; 08-29-2013)
a. The Department payment offices are required by the
Internal Revenue Code to complete, by January 31 of each year, certain forms
(e.g., IRS Form W-2, Wage and Tax Statement, and IRS Form 1099-MISC, Statement
for Recipients of Miscellaneous Income) for the tax year ending December 31 of
the previous year. The forms are due to the payee on January 31 and to the IRS
on February 28 (or March 31, if filing electronically) of the year for which
the returns are being filed.
b. Forms to be filed include:
(1) IRS Form W-2, Wage and Tax Statement, to report
wages and other compensation paid to personal services contractors for whom
taxes were withheld during the year (see 4 FAH-3 H-427
for the policy on withholdings including the criteria and percentage of such
withholdings);
(2) IRS Form 1099-INT, Statement for Recipients of
Interest Income, to report interest payments (due to late payments made under
the Prompt Payment Act), not including interest on an IRA, of $600 or more,
made to individuals, partnerships, or trusts; and
(3) IRS Form 1099-MISC, Statement for Recipients of
Miscellaneous Income, to report nonemployee compensation and other payments,
including rent, royalty, and fees to subcontractors and others not treated as
Department employees. The Department is to report on Form 1099-MISC any
compensation of $600 or more to any person, partnership, or professional group
(e.g., a medical corporation where the physicians are taxed individually) in a
given calendar year. This requirement applies to any recipient that is subject
to U.S. tax laws, including foreign nationals with green cards.
c. Payments to the following recipients are not to be
reported on IRS Form 1099:
(1) Recipients whose compensation is reported on IRS
Form 941, Employers Quarterly Federal Tax Return and/or IRS Form W-2;
(2) Corporations or any entity treated like a
corporation under law (e.g., a professional association);
(3) Tax-exempt organizations, the United States, a
State, the District of Columbia, a U.S. possession, or a foreign government;
and
(4) Recipients not subject to U.S. tax laws.
4 FAH-3 H-416 THROUGH H-419 UNASSIGNED