4 FAM 400
VOUCHERS AND CLAIMS
4 FAM 410
GENERAL
(CT:FIN-446; 06-07-2018)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 411 SCOPE, PURPOSE AND LAYOUT
(TL:FIN-352; 05-30-95)
Chapter 400 contains policies and regulatory information
applicable to voucher and claim processing and certification. Included is
information on vouchering for general expenditures, exceptions in the
vouchering of special items of expenditures, travel vouchers and advances,
transportation vouchers, and claims against and by the U.S. Government.
4 FAM 412 AUTHORITY
(CT:FIN-387; 10-31-2007)
Departmental policies derive their authority from statutes
and regulations. Specific authorities for travel vouchers and advances,
transportation vouchers, and claims are provided in a separate section within
the corresponding subchapters of this volume and in 4 FAH-3 H-410.
4 FAM 412.1 Statutes and
Regulations
(CT:FIN-387; 10-31-2007)
a. The Accounting and Auditing Act of 1950, as amended
(31 U.S.C. 3511 - 3516), authorizes the U.S. Comptroller General to prescribe,
in consultation with the Director of the Office of Management and Budget and
the Secretary of the Treasury, the principles, standards, and related
requirements for the accounting to be observed by most executive agencies. It
requires the head of each U.S. agency to establish and maintain systems of
accounting and internal controls.
b. The Prompt Payment Act of 1982, as amended (31
U.S.C. 3901 - 3907), requires Federal agencies to make payments in a timely
manner; to pay interest penalties when payments are late; and to take discounts
only when payments are made within the discount period.
c. The Anti-Deficiency Act, as amended (31 U.S.C.
1341), prohibits obligations or disbursements that exceed amounts appropriated
or that involve an obligation for the payment of money before an appropriation
is available, unless authorized by law. In addition, 31 U.S.C. 1517 and 4 FAM 080
prohibit obligations or disbursements that exceed amounts apportioned or
amounts allotted for administrative control.
d. The Federal Managers Financial Integrity Act of
1982 (31 U.S.C. 3512) requires Federal agencies to establish and maintain
systems of internal accounting and administrative controls. The head of each
agency is to ensure that management controls are in accordance with the
Comptroller Generals standards; issue a statement attesting to the adequacy of
such controls; or report any weaknesses and submit plans for their correction.
e. The Federal Financial Management Improvement Act of
1996 (Public Law 104-208, 31 U.S.C. 3512 Note) requires that agency financial
management systems comply substantially with Federal financial management
system requirements, applicable Federal accounting standards, and the Standard
General Ledger at the transaction level.
f. The United States Code (U.S.C.) Title 31 covers
Money and Finance.
g. 22 Code of Federal Regulations (CFR), Chapter 1,
covers Foreign Relations.
h. 41 Code of Federal Regulations covers Public
Contracts and Property Management.
i. The Foreign Service Act of 1980, Chapter 9,
provides guidance for Travel, Leave, and Other Benefits.
j. The Overseas Allowances and Differential Act is
covered in 5 U.S.C. Chapters 55 and 59.
k. GAO Policies and Procedures Manual for Guidance of
Federal Agencies (GAO), Title 7, provides Fiscal Procedures (7 GAO).
l. OMB Circular A-123, revised on June 21, 1995 and
December 21, 2004, provides guidance to U.S. agencies in establishing,
maintaining, evaluating, improving, and reporting on internal controls in their
program and administrative activities.
m. 5 CFR 1315 (superseding OMB Circular A-125)
implements the Prompt Payment Act (see 4 FAM 412.1,
paragraph b).
n. OMB Circular A-127, issued December 1984, revised
July 29, 1993 and June 10, 1999, and related bulletins prescribe policies and
procedures to be followed by U.S. agencies in developing, operating,
evaluating, and reporting on financial management systems.
o. Treasury Financial Manual (TFM), Volume I covers:
(1) Part 1Introduction (I TFM 1);
(2) Part 2Central Accounting and Reporting (I TFM 2);
and
(3) Part 4Disbursing (I TFM 4).
4 FAM 412.2 Other Sources
(CT:FIN-387; 10-31-2007)
Other relevant sources of guidance include the following:
(1) Foreign Affairs Manual (FAM)Certain guidance
related to 4 FAM 400 is covered in greater detail elsewhere in 4 FAM and in
other volumes of the FAM. A partial list of these references includes:
(a) 3 FAM 000Personnel;
(b) 4 FAM 000Financial Management Policy, Organization
and Accounting Principles and Standards;
(c) 4 FAM 300Cash Management and Accounting, with
details in 4 FAH-3; and
(d) 14 FAM 500Travel and Transportation;
(2) U.S. Department of State Standardized Regulations
(Government Civilians, Foreign Areas), which is maintained by the Departments
Allowances Staff (A/OPR/ALS);
(3) Principles of Federal Appropriations Law, GAO
Office of General Counsel, which includes such relevant chapters as:
(a) Chapter 4Availability of Appropriations as to Purpose;
(b) Chapter 5Availability of Appropriations as to Time;
(c) Chapter 6Availability of Appropriations as to
Amount;
(d) Chapter 9Liability and Relief of Accountable
Officers; and
(e) Chapter 12Claims Against and By the United States.
4 FAM 413 APPLICABILITY
(CT:FIN-387; 10-31-2007)
This chapter contains Department policies for both
domestic operations and operations abroad on voucher and claim processing and
certification. It is the most authoritative and comprehensive source for the
Departments policies on matters relating to the processing and certification
of vouchers and claims. 4 FAH-3 contains the detailed procedures and
processes. Unless stated otherwise, Department references in 4 FAM and 4 FAH-3
apply to both domestic operations and to post operations of the Department of
State. Differences in application are indicated within the relevant subchapter
or section.
4 FAM 414 DEfinITIONS in 4 fam 400
(CT:FIN-446; 06-07-2018)
Accountable officer: Any U.S.
Government officer or employee who by reason of his or her employment is
responsible for or has custody of U.S. Government funds. An accountable
officer is personally liable to the U.S. Government for any loss of the funds
in his or her charge, regardless of fault, unless relief is granted or the loss
is recovered. Accountable officers include such officials as authorized
disbursing officers, certifying officers, collecting officers, cashiers, or
consular officers and other employees who have custody of U.S. Government
funds.
Approval (as distinguished from
certification): The attestation by an authorized individual that the provider
of goods or services for which the voucher is being prepared is entitled to
payment, subject to the goods received or services performed being accepted as
satisfactory. Receipt and payment approval may be reflected in a combined
attestation.
Cashier: An accountable
officer who has been formally designated as a cashier by an authorized official
and who is thereby authorized to perform limited disbursing and other cash
functions. (See 4 FAH-3 H-390
for more details on cashiers and the cashiering function.)
Certification: The final
authorization for payment by an authorized certifying officer. Disbursing
officials may disburse funds only as provided by a voucher that has been
properly certified. In the case of voucher schedules, the certifying officers
signature applies to all the individual vouchers listed on the schedule.
Certifying officer: An
accountable officer who has been charged with the responsibility for certifying
vouchers for payment. A certifying officer is responsible for verifying the
accuracy and propriety of all documents upon which payment is to be based and
certifying that the payment is legal, correct, and proper:
(1) The certifying officer is responsible for the
information stated in the certificate, voucher, and supporting records, the
computation of the voucher, the legality of a proposed payment under the
appropriation or fund involved, and the accuracy of transportation rates and
other information provided on a U.S. Government bill of lading or
transportation (absent a determination by the Administrator of General
Services). The certifying officer is personally liable to repay the amount of
any illegal or improper payment resulting from their certification. The
conclusions and actions of a certifying officer are governed by pertinent laws
and regulations and the exercise of prudent judgment;
(2) A voucher payable to a certifying officer, other
than a payroll voucher, is to be signed by another officer authorized to
certify the voucher (31 U.S.C. 3528; 7 GAO, Chapter 7).
Claim: A demand for monies due
or alleged to be due, based on a valid claim provided to the Department.
Deductions: Amounts subtracted
from the gross voucher amount to arrive at the payment amount. Deductions are
for:
(1) Cash discounts offered by vendors;
(2) Credit memos (debts) that need to be offset; or
(3) Adjustments specified in the contract.
Disallowances: Amounts
subtracted from voucher amounts to reflect administrative decisions not to pay
the entire amount claimed. Disallowances may result from nonperformance,
improper performance, improper billings, insufficient proof of performance,
offset of a debt, etc.
Financial management officer (FMO) (formerly
known as a budget and fiscal officer): The officer responsible for post
financial operations. Some of these fiscal responsibilities include:
(1) Ensuring that post funds are not over-obligated or
over-expended;
(2) Maintaining all required budgetary and accounting
records;
(3) Maintaining proper controls of cash funds;
(4) Ensuring that all liabilities are liquidated
promptly in accordance with prescribed regulations;
(5) Ensuring that obligating documents and vouchers
are properly prepared and approved and are valid;
(6) Ensuring that budgeting and financial reports are
rendered accurately and promptly; and
(7) Controlling cash funds maintained at post.
Invoice: A bill, written
document, or an electronically transmitted document, such as a facsimile copy,
scanned copy, email copy, or electronic data interchange, provided by a vendor
requesting payment for property received or services rendered. A proper
invoice or an electronically transmitted document must meet the requirements of
the Prompt Payment Act. The term invoice also includes a receiving report and
delivery tickets when contractually designated as invoices.
Payment: Disbursement or
liquidation of an obligation by issuing a check, cash, or electronic funds
transfer (EFT). Payment occurs on the settlement date for electronic funds
transfers or the date of the U.S. Treasury check.
Preparation: Completion of all
required information on a voucher. It includes making copies, attaching
statements and certificates, ensuring that foreign currency information is
correct, etc. Preparation of a voucher may be done by the vendor, the
claimant, the traveler, the ordering office, or the procurement office.
Prepayment examination:
Examination of vouchers prior to certification. The objectives of a prepayment
examination are to ensure the availability of the appropriation or fund
involved, the accuracy of the payment, and the existence of supporting
documentation.
Processing: Receiving,
sorting, preparing, approving, and prepayment examining of vouchers. It begins
with the receipt of vouchers and concludes with the prepayment examination and
presentation of vouchers for certification.
Receipt of goods or services:
The signature acknowledgment that goods ordered have been received or that
services have been performed. This acknowledgment is the basis for approval.
Reimbursements: Payments made
by one U.S. Government agency to another to liquidate accounts payable arising
from purchases of goods or services by the performing agency on behalf of the
reimbursing agency.
Suspensions: Amounts
subtracted from voucher amounts to reflect nonperformance or nonconformance to
policy, lack of information, etc. The amount is withheld from the claimant and
kept in suspense until the matter is resolved.
Voucher: An invoice or
document used to authorize a payment. The document can be a form prescribed by
a U.S. Government agency and approved by the U.S. Treasury Department (e.g.,
domestically, Form SF-1034, Public Voucher for Purchases and Services Other
than Personal; and overseas, Form DS-2076, Purchase Order, Receiving Report and
Voucher) or an invoice, if it has all the required information.
Voucher and Schedule of Payments:
Hereafter known as voucher schedule, is a document used to authorize a
payment. A voucher schedule might be a group of examined vouchers consolidated
on the basis of the type of expense or the mode of payment. It may be preprinted or
computer/machine-generated.
4 FAM 415 FORMS
(CT:FIN-387; 10-31-2007)
a. The U.S. Code (31 U.S.C. 3511) authorizes the U.S.
Comptroller General, after consulting with the Secretary of the Treasury and
the Director of the Office of Management and Budget, to prescribe accounting
principles, standards, and related requirements for accounting, including forms,
for most executive agencies.
b. In accordance with 7 GAO, Fiscal Procedures, the
Department of the Treasury has responsibility for all disbursement forms, both
general and specific, except that the Department of State is responsible for
disbursement forms falling clearly within its functional area. The General
Services Administration (GSA) is responsible for forms dealing with
transportation and reimbursement of travel expenses. Each of these agencies is
responsible for the use of the forms it issues.
c. The use of standard forms is mandatory unless
exempted by law or by the prescribing U.S. agency. Specific approval is
required for an agency to adopt its own forms in place of the standard forms.
The prescribed forms used in the vouchering process are found in 4 FAH-3 H-412.
This list is inclusive, not exhaustive, and contains only the major forms used
in the vouchering process.
4 FAM 416 MANAGEMENT CONTROLS
(CT:FIN-387; 10-31-2007)
a. Management controls are operational checks and
balances to ensure that a task will be carried out correctly, efficiently, and
effectively. Subchapter 4 FAM 040
provides general guidance pertaining to financial management, including the
recording and executing of transactions, separation of duties, supervision, record
access, and accountability. Management control procedures that are part of the
work flow for processing and certifying vouchers and claims, such as prepayment
examination of vouchers, statistical sampling, checks to prevent duplicate
payment, etc., are discussed in 4 FAH-3 H-400.
b. In voucher claim processing and certification,
management controls refer to checks and balances that ensure that:
(1) The entire process, from receipt of goods to
certification of vouchers, is carried out effectively and efficiently;
(2) All applicable laws, regulations, and policies are
being complied with;
(3) Resources are being safeguarded; and
(4) Accurate and reliable accounting information is
being recorded.
4 FAM 417 TAX REPORTING REQUIREMENTS
(CT:FIN-387; 10-31-2007)
The Department is required to report to the Internal
Revenue Service (IRS) and other appropriate tax authorities, payments made to
certain contractors. Officers should refer to 4 FAH-3 H-415
for the authority, definitions, and reporting requirements related to tax
reporting.
4 FAM 418 And 419 UNASSIGNED