4 FAM 370
FISCAL IRREGULARITIES
(CT:FIN-443; 08-10-2017)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 371 GENERAL POLICY
4 FAM 371.1 Scope and Applicability
(CT:FIN-375; 09-13-2005)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. This subchapter contains policies related to fiscal
irregularities of an accountable officer of the Department of State.
Additional procedures pertaining to cashier fiscal irregularities are contained
in 4 FAH-3
H-397 and 4
FAH-2 H-830.
b. Each instance of a fiscal irregularity (defined in
section 4 FAM
371.3) that involves Civil Service or Foreign Service personnel must be
investigated thoroughly, in accordance with the policies in this subchapter,
to:
(1) Determine and report in detail the circumstances
of the irregularity;
(2) Achieve restoration of amounts due to the United
States; and
(3) Prescribe remedial measures to strengthen internal
controls.
c. A fiscal irregularity of an accountable officer
from another agency is subject to the policies of that agency and will not be
reviewed under the Department of States fiscal irregularity process.
4 FAM 371.2 Authorities
(CT:FIN-375; 09-13-2005)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The authorities for this subchapter are contained in:
(1) 31 U.S.C. 3526, Settlement of accounts;
(2) Title 7 of the Government Accountability Office
(GAO) Policy and Procedures Manual for the Guidance of Federal Agencies, Chapter
8, Settlement Officers;
(3) 31 U.S.C. 3527, General authority to relieve
accountable officials and agents from liability; and
(4) 31 U.S.C. 3528, Responsibilities and relief from
liability of certifying officials.
4 FAM 371.3 Definitions
(CT:FIN-430; 09-06-2013)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
Accountable officer: A U.S.
Government official or employee who, on behalf of the United States, receives
and maintains public funds; certifies vouchers; or maintains or draws checks
upon accounts of the United States, including those in depositary banks
designated by the Secretary of the Treasury. Cashiers, subcashiers, certifying
officers, U.S. disbursing officers, and occasional money holders are
accountable officers.
Fiscal irregularity: An
occurrence in which there is:
(1) A shortage or overage of public funds;
(2) Illegal disbursement(s) resulting from fraud,
forgery, alteration of vouchers, improper certification, or other improper
practices;
(3) Improper accounting for receipts; or
(4) Improper accounting for imprest funds.
4 FAM 372 INVESTIGATIONS
4 FAM 372.1 Scope
(CT:FIN-375; 09-13-2005)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Investigations are made in instances of fiscal
irregularities that are defined in 4 FAM 371.3.
b. Fiscal irregularities include those disclosed by
examining disbursement and collection transactions; any custodial
responsibility (such as cash counts); or any other internal reviews or Office
of Inspector General reviews, including audits, inspections, and investigations
conducted as part of the normal course of business.
4 FAM 372.2 Responsibilities
4 FAM 372.2-1 Department Offices
(CT:FIN-430; 09-06-2013)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The head of each Department bureau and independent office
is responsible for the initial investigation within the organization for any
fiscal irregularity as described in 4 FAM 371.3
and for reporting the results of the investigation to CGFS/FPRA/FP.
4 FAM 372.2-2 Posts
(CT:FIN-443; 08-10-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The principal officer is responsible for initially
investigating and reporting any fiscal irregularity at the post as described in
4 FAM 371.3.
He or she sends reports to the Department, as discussed in 4 FAM 374.
Specific guidance regarding investigating and reporting overseas cashier fiscal
irregularities is provided by 4 FAH-3
H-397.3 and Chapter 15 of the Cashier
User Guide.
4 FAM 372.2-3 Inspector General
(CT:FIN-406; 07-29-2010)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. Under section 209 of the Foreign Service Act of 1980
(22 U.S.C. 3929) and the Inspector General Act of 1978, the Inspector General
of the Department of State is responsible for conducting and directing
investigations of all complaints, allegations, or other information relating to
the possible existence of an activity constituting a violation of laws or
regulations; constituting mismanagement, gross waste of funds, or abuse of
authority; or constituting a substantial and specific danger to public health
or safety (including fraud or malfeasance) throughout the Department and the
Foreign Service. Consequently, when any initial inquiry into a fiscal
irregularity discloses possible fraud or malfeasance, the post or domestic
office will suspend its inquiry and report expeditiously to the Office of
Inspector General (OIG). The Office of Inspector General, Office of Investigations
(OIG/INV), will coordinate with the post or domestic office on any action
taken.
b. See 1 FAM 053.2-5
regarding reporting information to OIG.
4 FAM 373 COMMITTEE OF INQUIRY
4 FAM 373.1 Scope of Authority
(CT:FIN-375; 09-13-2005)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. There is within the Department a Committee of
Inquiry Into Fiscal Irregularities. The committee makes decisions concerning
fiscal irregularities and also functions as a reviewing and coordinating body
to ensure compliance with the Departments policy stated in 4 FAM 370.
b. The committee ensures that reported cases of fraud
or malfeasance involving fiscal irregularities have been referred to OIG for
investigation by the appropriate office.
c. The committee primarily concerns itself with
determining the fiscal liability of accountable officers. The committee should
refer matters involving disciplinary or prosecution action to the appropriate
Department bureau or office.
4 FAM 373.2 Establishment and
Membership
(CT:FIN-430; 09-06-2013)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The Committee of Inquiry Into Fiscal Irregularities
has a standing membership of one representative from the Bureau of Human
Resources; one representative from the Office of the Legal Adviser, General
Management (L/M); and one representative from the Office of the Deputy Chief
Financial Officer (CGFS/DCFO). The CGFS/DCFO representative serves as
permanent chairperson of the committee.
b. A quorum of members must be present for the
committee to make determinations. A quorum only exists when every member of
the committee is represented at a meeting.
c. A member of the committee must not take part in the
consideration of any matter in which:
(1) The member has a personal financial interest;
(2) The accountability or responsibility of a person
directly supervised by the member is at issue;
(3) The accountability or responsibility of a
supervisor of the member is at issue; or
(4) His or her impartiality might otherwise reasonably
be questioned. In such case, the head of the bureau or office represented
designates a substitute member. If, for the same reasons, such bureau or
office head should not designate a substitute member, the designation is made
by the next higher official who is not so disqualified.
4 FAM 374 REPORTS OF INVESTIGATION
(CT:FIN-443; 08-10-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. As soon as it is determined that the probability of
an irregularity exists, the principal officer of an embassy or head of a
Department bureau or independent office, as appropriate, notifies the
Department, Attention: Director, Office of Financial Policy (CGFS/FPRA/FP), by
unclassified cable or memorandum (unless circumstances warrant a higher
classification). The communication should be under the subject: INVESTIGATION
OF FISCAL IRREGULARITY and provide all facts available and applicable
recommendations (see paragraph e of this section). If all facts are not then
available, the report should so indicate and state when a final report will be
forwarded. OIG should be an action addressee (see 1 FAM 053.2-5
for reporting to the Inspector General).
b. Specific guidance regarding the reporting of
overseas cashier fiscal irregularities is provided by 4 FAH-3
H-397.3 and Chapter 15 of the Cashier
User Guide.
c. In case of a loss in the accounts of an accountable
officer, the Bureau of the Comptroller and Global Financial Services (CGFS)
will notify the Department of the Treasury. The Department of the Treasury is
responsible for notifying the Government Accountability Office (GAO) in
accordance with 31 U.S.C. 3526.
d. At a subordinate consular post, the principal
officer prepares a report to the embassy and sends a copy to CGFS and OIG, as
described in paragraph a of this section. The embassy is responsible for
investigating the consular posts report and submitting to the Bureau of the
Comptroller and Global Financial Services (CGFS) and the Office of the
Inspector General (OIG) either support of the original report or a separate
report of its findings and recommendations.
e. The principal officer should consider whether the
circumstances justify assigning the offending employee other duties pending
completion of investigation or final decision by CGFS and/or OIG.
f. Final reports on investigation of all
irregularities should include the following information:
(1) A detailed statement of facts that includes the
type of irregularity, date, amount, and name and position of individuals
involved and their supervisor;
(2) A citation of pertinent supporting documents, such
as receipts, pay records, contracts, vouchers, etc;
(3) A description of how the irregularity occurred and
how it affected the accountable officers account;
(4) Significant information on procedural
deficiencies, if known, and the corrective action taken, or to be taken;
(5) Information as to the restitution obtained or
contemplated from the responsible individual(s); and
(6) If complete restitution at the post or office
level is unobtainable, make a suitable recommended settlement or resolution of
the irregularity appropriate to the circumstances. If the evidence is that the
irregularity did not occur by reason of willful intent to defraud the U.S.
Government or fault or negligence on the part of the accountable officer or
supervisory personnel, consideration should be given to a recommendation to
resolve the irregularity by granting relief. Such recommendation should bear
the signature of the principal officer, or head of a Department bureau or
independent office. The recommendation must state that the irregularity did
not occur by reason of willful intent to defraud the U.S. Government, or
because of fault or negligence on the part of the accountable officer or
supervisory personnel.
4 FAM 375 COMMITTEE PROCEDURES
4 FAM 375.1 Responsibilities
(CT:FIN-430; 09-06-2013)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. The Chairperson of the Committee of Inquiry Into
Fiscal Irregularities (see 4 FAM 373.2,
paragraph a) is responsible for:
(1) Calling all meetings of the committee;
(2) Presiding over the committee sessions, ensuring
that a quorum is present;
(3) Designating one employee from the financial policy
staff to provide administrative support; and
(4) Signing the final written determination of the
committee regarding each particular matter.
b. The administrative staff member is responsible for:
(1) Advising members of the time, place, and agenda
for all meetings;
(2) Preparing and distributing to members written
summaries of the meetings, including committee decisions and actions; and
(3) Maintaining case files on cases before the
committee.
c. The committee members are responsible for:
(1) Reviewing and discussing the facts of the cases
presented;
(2) Determining if the accountable officer is liable;
and
(3) Determining whether relief should be granted or
recommended in accordance with the procedures listed in 4 FAM 375.3
and recording those decisions in writing. The chairperson of the committee
signs all final written decisions of the committee.
4 FAM 375.2 Review
(CT:FIN-406; 07-29-2010)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The Committee of Inquiry Into Fiscal Irregularities
reviews all reports of fiscal irregularities to determine the following:
(1) The reported or suspected irregularity is within
the scope of investigation defined in 4 FAM 371.3.
If the committee finds the case to be outside the defined scope of
investigation, it advises the head of each Department bureau and independent
office, and the committee takes no further action; and
(2) The investigation is adequate or the committee
requests further investigation as it deems necessary. If further investigation
is warranted, the committee will notify the post or office as appropriate for
the additional information required.
4 FAM 375.3 Committee
Determinations
(CT:FIN-406; 07-29-2010)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The Committee of Inquiry Into Fiscal Irregularities
evaluates cases meeting the criteria in 4 FAM 371.3
and the following determinations:
(1) If the committee does not concur, in whole or in
part, with the findings and recommendations of the head of the responsible
office, it makes its own findings and determinations based on the facts
developed in the investigation;
(2) The committees determinations result in the next
action taken to resolve the fiscal irregularity. Determinations and
corresponding actions are based on the guidelines set forth in 31 U.S.C.
sections 3527 and 3528 and include the following:
(a) The determination that the irregularity did not
occur by reason of willful intent to defraud the U.S. Government or fault or
negligence on the part of the accountable officer or supervisory personnel:
The committee can resolve the case administratively (i.e., grant relief), where
there is a physical loss or deficiency of less than $3,000. In other cases,
the committee may decide to seek relief from the Comptroller General;
(b) The determination that the irregularity did occur
because of fault and/or negligence on the part of the accountable officer or
supervisory personnel: The committee will direct the appropriate Department
office or post to initiate collection action, and, if the committee so
determines, refer this matter to the Bureau of Human Resources for disciplinary
action;
(c) The indication that the irregularity did occur
because of fraud, malfeasance, or other possible criminal activity: In this
case the committee will refer the case to the Office of Inspector General and
take no further action until the Office of Inspector General notifies the
committee of the result of the investigation; and
(3) The committee will make the determinations
described in 4
FAM 375.3, subparagraph (2), regardless of whether the fiscal irregularity
is a cashier loss or improper payment.
4 FAM 375.4 Administrative Support
(CT:FIN-406; 07-29-2010)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
The offices represented on the Committee of Inquiry Into
Fiscal Irregularities may provide or make available staff to enable the
committee to complete its assignments promptly and efficiently.
4 FAM 375.5 Actions After Committee
Determinations
(CT:FIN-430; 09-06-2013)
(State Only)
(Applies to Foreign Service and Civil Service Employees)
a. After the Committee of Inquiry Into Fiscal
Irregularities has determined to either grant relief or hold the accountable
officer responsible for the fiscal irregularity, CGFS/FPRA/FP will send a cable
or memorandum (copy to the servicing USDO) to notify the post or bureau of the
committees determination. The information contained in the cable will be the
committees determination and actions that post will take (4 FAM 375.3).
b. The post or bureau, if the accountable officer was
not relieved, must designate a point of contact at the post or bureau for the
fiscal irregularity case. This person is responsible for communicating with
the accountable officer, the USDO, the Office of Oversight and Management
Analysis Directorate (CGFS/OMA), and the staff person in CGFS/FPRA/FP assigned
to the Committee of Inquiry into Fiscal Irregularities. The person designated
at post or bureau must officially notify the accountable officer responsible for
the fiscal irregularity of the committees decision within 15 days of the date
of the cable or memorandum from CGFS/FPRA/FP.
c. Should the accountable officer desire to have the
committee reconsider the determination, he or she may request the facts used by
the committee concerning the fiscal irregularity case through the point of
contact designated at the post or bureau. The post or bureau will request the
information from CGFS/FPRA/FP in writing (e-mail or cable or memo). The
accountable officer will have 30 days from receipt of the facts from the post
or bureau to prepare documentation that presents facts not contained in the
fiscal irregularity case. The accountable officer must send documentation for
reconsideration to the point of contact at the post or bureau. The post or
bureau will forward the documentation to CGFS/FPRA/FP for reconsideration by
the committee. The committee will reconsider the case only if there is new
information presented that may affect the original determination. The committees
decision will be communicated via official message channel to the post or
bureau contact person who will inform the accountable officer.
4 FAM 376 through 379 unassigned