MP-4, Part I, Chapter 7

CHAPTER 7. INSURANCE COLLECTIONS [POLICY]

SECTION A. GENERAL

7A.01 ORGANIZATION

The Insurance Collections activity is in the organization of the Finance and Data Processing Division operating as part of the Collections and Cashier Section [(VA regional office and insurance center Philadelphia) and Collections Section (VA regional office and insurance center St. Paul).] Where reference in this chapter is made to "Collections activity" or "Collections" identification is made with the Insurance Collections activity of the Finance and Data Processing Division.

7A.02 FUNCTION

a. The Collections activity receives and processes for deposit and credit to insureds accounts, insurance remittances received from the following sources:

(1) Direct from insureds.

(2) Agent cashiers at VA field stations. (Forwarded for deposit and processed similarly to direct remittances.)

(3) Remittances tendered to the agent cashier at Manila, P.I. which are deposited to the designated depository of the Treasury at Manila for the credit of the Philadelphia VA [regional office and insurance center] and processed similarly to direct remittances.([VA regional office and insurance center] Philadelphia only)

(4) Employer payroll deductions in the form of a single check by the employer but processed similarly to direct remittances, including certain Government agencies. ([VA regional office and insurance center] Philadelphia only)

(5) Military services in the form of a single check from each service covering allotment deductions, the detail posting of which is computer processed. ([VA regional office and insurance center] Philadelphia only)

NOTE: Premium payments and loan/lien repayments deducted from VA benefits are transferred by SF 1081, Voucher and Schedule of Withdrawals and Credits, for credit to the related individual accounts at [VA regional office and insurance center] Philadelphia.

b. These functions entail numerous processing actions involving the examination, security, reconciliation and recordation of the remittances. Pertinent documents are summarily processed, and forwarded for subsequent actions. The related input material is prepared and forwarded to the DPC Computer activity.

7A.03 [RESPONSIBILITY-COLLECTIONS ACTIVITY

a. The primary responsibility of the Collections activity is to process remittances promptly, thus permitting the availability of these funds for investment earnings and for application or association with the policies for which remitted. Workload reports (beginning balance, received, processed, and ending balance) will be maintained daily to determine equipment and/or personnel requirements to accomplish the following:

(1) Mandatory maintenance of insurance records (title 38), i.e., keeping collection information current to preclude unnecessary lapse of policies, late payment notices, etc.

(2) To practice the most efficient form of cash management within the budgetary restraints imposed on the Department of Veterans Benefits.

b. Workload reports will also be used as follows:

(1) To provide Central Office and/or Field Directors with sufficient data related to workloads that have reached a critical level.

(2) To comply with Treasury Fiscal Requirements Manual (Part 6, Chapter 8000-Cash Management, Section 8080, paragraph 8080.30), i.e., each agency must monitor its cash management practices.

c. To make daily deposits in a timely manner and provide the Accounting Section with deposit information broken down by insurance fund.

d. The Collections activity will write and maintain detailed operating instructions for processing insurance remittances. These local instructions will address *Open and Closed Mail Processing, via automated remittance equipment, for all insurance remittance activities as follows:

Premium, loan, lien and interest collections;
Deposit reconciliation and/or
Federal Reserve bank reconciliations;

Foreign currency receipts;
Employer accounts
(VA regional office and insurance center Philadelphia only);
Unassociated and/or unidentified collections;
Audit trail requirements and/or instructions;
Microfilming requirements and/or instructions;
Premium notices and payments received and
deposited in the wrong office;

Manila collections
(VA regional office and insurance center Philadelphia only);
Premiums paidasbilled;
Premiums not paidasbilled;
Premiums and correspondence, etc.

*NOTE: Closed Mail is mail received in VA return envelopes (VA Envelope 29369H). Open Mail is mail received in other than VA return envelopes or Closed Mail that is forwarded to Open Mail since it requires a clerical action before deposit processing.

e. To strictly conform to the cash controls in paragraphs 7B.03, 7C.01 and 7C.02.

f. To separate duties and/or review all remittance activities that lend themselves to improper and/or illegal update of collection records.]

7A.04 [COLLECTIONS MANAGEMENT

a. Workload reports, along with the average remittance amount, can be used to compute foregone interest earnings, etc.

b. Cost per remittance calculations will measure the efficiency of the operation and can be used as follows:

(1) To evaluate any decisions concerning the restructuring of the Collections activity.

(2) To evaluate proposals from private industry (lockbox), Treasury Department, etc.

NOTE: Cost per remittance calculation, along with computing specifications, will be periodically requested by Central Office, Finance Service (047D3).

c. Remittance processing equipment should generate collections management data as follows:

(1) Fund Distribution Reports;

(2) Payment Analysis (Operators and Types);

(3) Cash Control Reports;

(4) Operator Statistics;

(5) Modification of Deposit and/or Security Reports;

(6) Miscellaneous batch summaries, crossfoot checks, etc.

d. In order to retrieve deposit information, all remittances and/or billing documents will be imprinted with sufficient audit trail information and microfilmed. Also, all remittances must be encoded to comply with Treasury Fiscal Requirements Manual (Part 6, Chapter 8000-Cash Management).]

[7A.05] REPORTING DAILY INSURANCE COLLECTIONS ON A SUBMITTED BASIS

a. A close liaison will exist between the Collections activity and the Finance Accounting activity with respect to reporting the collections deposited on a submitted basis.

b. As soon as the [Deposit Ticket(s)] is prepared an advance copy will be dispatched to the Finance Accounting activity for their action on the day the deposit is forwarded to the Federal Reserve bank. Disbursement authority against the [Deposit Ticket(s)] for the day is recognized even though the deposit has not been released to the Federal Reserve bank.

[7A.06] SECURITY AGAINST LOSS

a. Adequate precautionary measures will be taken and extreme caution will be exercised at all times to prevent the loss, destruction, or misplacement of insurance remittances and records through negligence, fire or theft. Fireproof vaults and safes will be used to store all remittances, together with attachments, on hand at the close of business each workday. Supervisory employees of the Collections activity are charged with the responsibility of placing all remittances in the safes or vaults at the close of business and, after locking vaults and safes, will certify to that fact by signing a record book maintained in the office of the chief. As a further precautionary measure, the chief or other designated employee will check all vaults and safes in the Collections activity to insure they are locked.

b. The name, home address, and telephone number of the responsible official to be notified, should an emergency involving security arise after business hours, will be furnished to the chief guard.

c. Prior to the disposal of VA return envelopes, VA Envelope 29369H, they will be examined to assure all contents have been removed. This may be accomplished with the use of a mechanical detecting device. Commercial type envelopes ill be processed in a manner that assures all contents have been removed.

d. Inflammable materials, wastepaper containers, supplies, etc. must be stored in a manner that does not constitute a fire hazard. Fire extinguishers should be placed at strategic points to be easily accessible in case of fire. Smoking will be prohibited the last 30minute period previous to the closing hour throughout the Collection activity to minimize the possibility of fire. Wastepaper baskets should be kept to a minimum, and the contents examined at the close of the business each workday to insure no pertinent materials were inadvertently discarded.

[7A.07] UNFORESEEN ABSENCES OF ACCOUNTABLE EMPLOYEES

The procedure for determining the accountability of the absent employee will be as outlined in chapter 2, paragraph 2A.07 except the Fiscal Officer and Chief, Collections and Cashier Section[/Collections Section] will act as the responsible employees rather than the Director and Fiscal Officer.

[7A.08] ENDORSEMENT OF REMITTANCES

a. Insurance remittances made payable to "Veterans Administration," "Treasurer of the United States," or any abbreviation thereof will be deposited with the regular VA endorsement.

b. Special endorsements to be used in conjunction with the regular VA endorsement:

(1) Insurance remittances made payable to "National Service Life Insurance," "United States Government Life Insurance," or any other abbreviation thereof, or to an official of the VA by name or title must be specifically endorsed to make the remittance negotiable, or, a rubber stamp impression will be placed on the reverse side of the check and will read as follows:

ABSENCE OF PAYEE'S ENDORSEMENT WAIVED

VETERANS ADMINISTRATION

(2) Checks which are made payable to the insured but not endorsed by that [person] require special endorsement. For such checks the rubberstamp impression to be used will read as follows:

CREDITED TO THE ACCOUNT OF THE WITHIN-NAMED PAYEE

ENDORSEMENT WAIVED

VETERANS ADMINISTRATION

c. In instances where banks refuse to accept a special endorsement, the returned check will be processed as an uncollectible remittance.

[7A.09] REMOVAL OF POSTAGE STAMPS

Postage stamps are not to be removed from envelopes that must accompany communications. Also, envelopes should not be defaced or marked in any way that might destroy the postmark. (See MP1, pt. II, ch. 6, par. 5a)

[ ]

7A.10 AUTOMATIC REPRESENT OF CHECKS BY FRB

The Federal Reserve banks will automatically represent uncollectible checks once unless the reason for refusal of payment is in a category similar to the following:

Maker deceased;
Account closed, transferred, or no account;
Signature missing, or defective;
Payment stopped;
Payable to third party;
Stale date or postdated.

7A.11 FIELD STATION OPERATING MEMORANDUMS

Field station instructions [required by this manual] will be submitted to Central Office, Finance Service [(047D3).]

SECTION B. PROCESSING OF REGULAR (DOMESTIC/NONCASH) INSURANCE REMITTANCES

7B.01 GENERAL

[a. All mail presumed to contain an insurance remittance is received in the Collections activity via the Administrative Division. For processing purposes, the mail is classified as Closed Mail and Open Mail.

(1) Closed Mail is mail received in VA return envelopes (VA Envelope 29369H).

(2) Open Mail is mail received in other than VA return envelopes or Closed Mail that is forwarded to Open Mail during processing.

b. A count of remittances is made upon receipt to plan the processing and to develop workloads. The count for Closed Mail is made by weight or traycount formula. Open Mail is handcounted. A daily and/or weekly inventory is made of the mail on hand and administrative records adjusted accordingly.

c. Insurance remittances found by the Administrative Division during the examination of their mail are handcarried to the Collections Unit. Cash is recorded in a log and handcarried to the agent cashier with all related material. Processing of the Open Mail items starts on the date of receipt or on the date it is identified as Open Mail to expedite action on enclosure.

d. When Closed Mail is stored in a safe or vault pending processing it is marked to indicate the date of receipt. Closed Mail is processed by date received.

e. All collection input must contain a PMD (Postmark Date). The PMD will be determined for the various types of mail as follows:

(1) Open and Closed Mail. The PMD will be the fourth day prior to the date of receipt regardless of the particular day (Sunday or holiday).

(2) Registered or Certified Mail. The actual PMD will be used.

(3) Remittances From Agent Cashiers. The actual date of receipt on the VA Form 4367, Counter Receipt-Government Life Insurance, will be used as the PMD.

NOTE: A statistically sound sample will be made periodically to validate the elapsed time from PMD to date of receipt. Any recommendation to change the PMD determination procedures as a result of the sample will be forwarded to Central Office.]

7B.02 [DEPOSIT OF REGULAR REMITTANCES (DOMESTIC)

a. After the remittances have been reconciled, encoded, imprinted with audit trail information and microfilmed, they will be prepared for deposit.

b. An SF 215, Deposit Ticket will be prepared in accordance with Treasury Fiscal RequirementsManual for Guidance of Departments and Agencies, Part 5-Deposit Regulations.

c. A VA Form 41622, Transmittal List of Posting Media and Report of Distribution, will be prepared for accounting support and/or run 155 reconciliation.

d. The agent cashier will verify the counter receipt copies representing cash, and cash control machine receipts, with the addingmachine tape for cash to be deposited. Bank drafts and cash will be exchanged for the cash control machine receipts, which will be filed in serial number order.

e. Prepare VA Form 41011, Record of Shipment of Valuables.

f. Package the complete Federal Reserve bank deposit, including the grand total addingmachine tape, and all copies of SF 215 except the agency and memorandum copies for forwarding to the depositary. The agency and memorandum copies of the deposit will be sent to the Accounting Section at the time the deposit is dispatched to the Federal Reserve bank. When the receipted copies of the SF 215 are returned, the Accounting Section will return the agency copy to the Collections activity for its information and records.

7B.03 DISASSOCIATED CASH-NONAME REMITTANCE

Cash which obviously has, through handling, become separated during routine processing and which cannot be positively reassociated, will be processed for deposit as follows:

a. The cash will be taken immediately to the supervisor, who will enter it in the cashbook in ink and, with the reporting employee, initial the entry. If more than one such instance occurs during the day, they will not be consolidated. The money in each instance will be reported as a separate "NoName" case.

b. The supervisor will carry the cash to the agent cashier]. The [agent cashier] will initial the entry in the cashbook, accept the cash and give in exchange a receipt which will be processed as an unidentified "NoName" remittance. The receipt will be redeemed in the regular manner.

c. Disassociated cash received from the Mail Unit, Administrative Division, will be processed in accordance with the foregoing procedure.

[7B.04] NONNEGOTIABLE REMITTANCES

a. The following types of remittances are, for purposes of these instructions, classified as nonnegotiable:

Check not signed,
Remittance made payable to wrong payee
(see exceptions in par. [7A.08,] Endorsement of Remittances),
Postage stamps,
U.S. savings bonds,
Postdated checks (returned by Federal Reserve bank or found during
processing),
Mutilated remittances.

b. When processing nonnegotiable remittances, care will be taken by the collections clerk to assure all related material is attached to the [premium notice], including the envelope. All such remittances will subsequently be reviewed by the [Deposit activity], who will make a final determination of the negotiability of each remittance. Those determined to be negotiable will be introduced into the current deposit. Those determined to be in fact nonnegotiable will be processed [in accordance with local operating procedures.]

7B.05 [UNCOLLECTIBLE REMITTANCES

a. The memorandum and confirmed copies of the SF 5515, Debit Voucher, with uncollectible remittances attached will be received from the depositary. The depositary will retain the original and duplicate for their records.

b. The Collections activity will note the applicable insurance fund information on the confirmed copy of the SF 5515 and forward it to the Accounting Section for posting.

c. The uncollectible remittances will be processed through the system and/or reconciled with the Federal Reserve bank via local operating instructions.]

SECTION C. REMITTANCES FROM OTHER VA STATIONS AND/OR CASH

7C.01 DAILY CASH LEDGER

a. A Daily Cash Ledger consisting of a bound columnar ledger with printed prenumbered pages, is maintained by the Collections [activity] by anyone other than the [agent cashier.] The ledger is used to control the receipt and deposit of all collections from field stations (see par. 2B.07) and cash received with insurance payments. Pertinent information will be entered to identify the source of the money as follows:

Forwarding Office (City and State)
Schedule No. (prefixed by Station No.)
Number of items
Certified or Registered Mail No.
Total amount of the schedule
Total local cash and source

b. Entries to the ledger for field stations which make frequent shipments of insurance collections should be made in station number sequence. This will allow the consistency of the shipments to be determined. Should a variance occur, an inquiry is made to the Director of the field station concerned.

7C.02 PROCESSING

a. Remittance are received from three sources (1) closed mail, Collections Unit (2) Mail Unit, Veterans Assistance and Administrative Division and (3) agent cashiers, VA offices nationwide. A description of each method of receipt and related processing follow:

(1) Closed Mail and Mail Unit. The processing required for cash remittances received directly at the VA center with the insurance program is described in the following subparagraphs.

(a) Closed Mail. The cash and related material will be taken immediately to the designated individual who will verify the amount and record the receipt of cash in the cashbook which is maintained as follows:

Date        Name      Ins. No.     Amount      Clerk        Supv.        Cashier

The cash is kept in a locked cash box maintained by the designee who twice daily handcarries the cash and related material to the [agent cashier.]

(b) Mail Unit. Cash will be entered in the Registry Log maintained in the Mail Unit and subsequently handcarried to the cashier.

(c) Processing by Cashier. The cashier will verify the total entry with the cash and will initial the cashbook opposite the total amount of cash received. A receipt will be issued for each payment, either a cash control machine receipt or VA Form 4367, Counter ReceiptGovernment Life Insurance. If VA Form 4367 is used, copy one will be destroyed, two and four retained by the cashier, and three returned to the designee with all accompanying material for further routine processing. Copy four serves as documentation for the station of the disposition of accountable forms, in the same manner as that of VA Form 41027, Field Service Receip-General. Copies two and three will be disposed of as outlined in subparagraphs b and c. Status code 6 will be assigned to the input except when another status code (other than 8) is applicable or more than one piece of input is required. Status code 6 will cause the computer to generate VA Form 298348, Information About Your Insurance, stating "THANK YOU FOR YOUR PAYMENT OF $XXX.XX POSTMARKED (MODAYYR). WE RECOMMEND THAT IN THE FUTURE YOU MAKE YOUR PAYMENTS BY EITHER CHECK OR MONEY ORDER RATHER THAN CASH." When status code 6 cannot be used for the above reasons, FL 4298 will be prepared to remind the insured not to send cash in the future. (Copy one of VA Form 4367 may be sent to the payee when FL 4298 is used.)

(2) The Agent Cashier. All remittances, copies two and three of VA Form 4367, Counter Receipt-Government Life Insurance; and VA Form 41551, Transmittal Schedule of Insurance Collections are mailed (certified or registered) to the Collections [activity] by the agent cashiers.

(a) The cashier, in the presence of another clerk, will open the items and verify the contents by checking the remittances with the VA Form 4367 and the VA Form 41551. Contents should include the schedule in duplicate and copies 2 (white) and 3 (yellow) of the counter receipts with remittances. Both employees will count any cash and sign and date both copies of the transmittal schedule when found to be correct. The duplicate copy of the schedule will be returned to the originating office.

1. Should a discrepancy be found in the amounts, schedule and/or the amount actually received, the Finance Officer will be notified immediately. If the discrepancy is not of a serious nature the Finance Officer may authorize direct contact with the agent cashier of the office concerned for corrective action. However, should the discrepancy be of a serious nature, the Director will send a letter setting forth the complete facts and circumstances pertaining to the discrepancy to the VA office concerned, for the attention of the agent cashier who signed and forwarded VA Form 41551. A copy of this letter will be sent to the Director of the VA office concerned, with a request that prompt action be taken. If the amount of the discrepancy is substantial, a telephone call will precede a confirming letter. If a response, adjusting and explaining the discrepancy is not received within 5 days, the Director of the field station will be notified directly requesting an investigation as to the delay in adjusting the discrepancy.

2. In those instances where there is a discrepancy in the total amount on the VA Form 41551 or in the amounts shown on the VA Forms 4367, the transmittal will not be receipted but will be retained until the information is received from the transmitting field station adjusting the discrepancy. The VA Forms 24367 and corresponding remittances which are in order will be released for processing and deposit.

3. If the dates of tender appearing on VA Forms 4367 indicate a delay in forwarding the remittances to the VA center, a report will be sent to the Director for appropriate action, as insurance remittances must be mailed daily.

4. The Director will also be notified in case of noncompliance with procedure for exchange of cash collections for a bank draft when the amount transmitted is more than $100 and the date of such shipment was not a bank holiday.

(b) After verification, the cashier will separate the items received from field stations by respective categories and forward to the Collections [activity] for further processing in the appropriate batch series.

1. Set apart cash and check items.

2. Check Items. Copies of VA Form 4367 will not be released to the Collections [activity] on check items. When a [premium notice] is received with a check item, verify the PMD as shown on the Counter Receipt ("DATE PAID" block) with the date of the check. If the PMD is the same as the date of the check, release the [premium notice] with check to the Collections [activity] by category. When the date of the check is in variance with the PMD expressed on the Counter Receipt enter the PMD in pencil immediately above the date on the check, and release by category to the Collections [activity]. On check items, copy 2 (white) of the Counter Receipt will be removed from the schedule pending disposal in accordance with the records control schedule. Copy 3 (yellow) will be maintained in numerical sequence and attached to the schedule pending reassociation with the remainder of copies 3 (yellow) released for processing as cash.

3. Cash Items. The remainder of the numericalized Counter Receipts on each schedule represent cash payments. Prepare an addingmachine tape on these remaining items and verify the total against the cash and draft total on the transmittal (VA Form [41551]). If these totals agree, associate the tape with copies 2 (white) of the Counter Receipts representing cash and attach to the original schedule. For accountability purposes, the copies 2 (white) attached to a schedule represent cash awaiting redemption. Each schedule will be processed in a like manner, and the schedules for a completed unit of work will be arranged in station number order and interfiled in a pending file with schedules previously received which still represent unredeemed cash.

b. Cash control receipts and/or copy 3 (yellow), a VA Form 4367, will be assembled by Deposit [activity] and presented to the cashier for the drafts and cash represented by the cash slips and/or VA Forms 4367.

c. When the daily accountability has been completed, the cashier will:

(1) Prepare an addingmachine tape from the cash control receipts and/or copy 3 of VA Form 4367, verifying the total against the daily cash figure supplied from the Daily Summary Ledger. When these totals agree, he will proceed with cash redemption as follows:

(a) Separate pink cash control receipts, when applicable, from copies 3 of VA Form 4367 and arrange in receipt number order; then compare them with the cash register master tape. A checkmark will be entered on the master tape for each item redeemed. The absence of a checkmark on the master tape will indicate outstanding receipts. After redeemed cash control receipts have been verified against the master tape, they may be disposed of in accordance with the records control schedule. All cash control tapes will be filed in date sequence after all receipts listed thereon have been redeemed.

(b) Numericalize copies 3 of VA Form 4367 within each station and by station number order. Withdraw schedule with copies 2 of VA Form 4367 (representing unredeemed cash) from the pending file. Substitute white copies with yellow copies by removing corresponding white copies from the pending schedules and interfiling redeemed yellow copies with previously filed yellow copies representing check payments. Unredeemed white copies should remain on top of the redeemed yellow copies and the original addingmachine tape destroyed, as this tape no longer represents the amount of unredeemed cash once a redemption is made. The accountability of this schedule is now determined by adding the unredeemed white copies remaining with the schedule. Repeat this process until all yellow copies have been redeemed by the removal of corresponding white copies. When a schedule is completely redeemed, the Counter Receipts and the schedule will be removed to permanent files.

(2) In the redemption action the maximum use of drafts plus necessary cash will be used to meet the deposit required as shown on the Daily Summary Ledger.

SECTION D. PROCESSING AND DEPOSITING FOREIGN REMITTANCES

7D.01 GENERAL

a. A foreign remittance, for the purpose of categorizing items for processing, is foreign cash or any negotiable instrument drawn on a financial institution located outside the United States, whether written in a foreign currency or United States dollars. The only exception to this definition is a check which is written on a bank in Guam, Puerto Rico or the Virgin Islands and which contains check routing symbols; these items are processed as though they were domestic.

NOTE: A foreign remittance, written in United States dollars containing a statement that the remittance is to be paid by bank in the United States, will be made a part of the regular daily domestic deposit with the Federal Reserve bank.

b. Examination and Endorsement of Foreign Remittances

(1) Upon finding a foreign remittance, the item is forwarded to the Deposit [activity] where it is examined [for negotiability and] endorsed for deposit.

(2) The endorsement must include the following:

(a) Eightdigit disbursing symbol number.

(b) Regular VA endorsement (excluding the legend for payment at par) and

A typical endorsement is as follows:

"Disbursing Symbol No. _______. Pay to the order of any Federal Reserve Bank or Branch or General Depository for credit to the Treasury of the United States.

____________________1 ________________________________________"
(Stamp signature or title of depositor)
(Agency and address)

1Optional if date of deposit can be identified in another manner.

c. The [SF 215, Deposit Ticket,] is prepared in accordance with paragraph [7B.02b.] Specific deviations for the different types of foreign remittances are explained in subsequent paragraphs. The certificate of deposit for foreign deposits are numbered from the 50006999 series of numbers, beginning with number 5000 each fiscal year.

d. The [SF 5515], Debit Voucher, is prepared by the Treasury Department for the regular uncollectible checks, as well as collection fees. The debit vouchers are numbered for reference purposes from the 8001999 series of numbers, beginning with number 800 each fiscal year.

e. The VA Form 41011, Record of Shipment of Valuables, is prepared for the deposit of all foreign remittances. Rather than attempt to describe each individual item being sent [ ] on VA Form 41011, a copy of VA Form 48627, Transmittal of Foreign Remittances for Collection, is attached and both forms cross referenced. [ ] When foreign cash is shipped the type of currency is indicated on the Record of Shipment of Valuables.

f. Specific processing instructions for the three types of foreign remittances; remittances drawn on foreign banks payable in United States dollars, remittances drawn on foreign banks payable in a foreign currency, and cash, are contained in the following paragraphs.

NOTE: To facilitate the identification of accounts on which foreign checks were credited and for general reference about the status of collection of foreign remittances, a suspense file of VA Forms 48627 is maintained by the Collections [activity] for 6 months and disposed of in accordance with RCS VB1.

7D.02 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN UNITED STATES DOLLARS

a. [These remittances are processed in accordance with MP4, part I, chapter 2, paragraph 2B.11h.]

[b.] Uncollectible remittances are returned with a completed [SF 5515], Debit Voucher. These items are processed in accordance with paragraph [7B.05], Uncollectible Remittances.

[c.] Collection fees charged to the Treasury Department for the collection of a foreign remittance are in turn charged to the VA on an [SF 5515], Debit Voucher. The Collections activity positively identifies the individual account to be charged and notes the information on the debit voucher. A photocopy of the debit voucher or other media (VA Form 48627) used to transmit the information, is prepared and sent to the Keypunch activity for preparation of a RPO request in accordance with procedures for domestic uncollectibles. The transmittal is then sent to the Insurance Division with other uncollectibles for processing.

7D.03 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN FOREIGN CURRENCIES

a. A VA Form 4367a, Collection and Payroll Deduction Card, is prepared for each remittance received. The input document is then forwarded to either the Keypunch activity or the Insurance Division for preparation of a VA Form 295895a, Pending Transaction Input Card. The Collection Card is returned to the Collections [activity] where it is held in a suspense file, pending return of the accomplished [Deposit Ticket] and a photocopy of VA Form 48627 with the amount and date of credit completed. (Credit may not be returned until all items on VA Form 48627 have cleared). At this time the amount is coded on the input document which is forwarded for [ ] processing in [accordance with local operating procedures.]

b. Canadian Remittances

(1) [These remittances will be processed in accordance with MP4, part I, chapter 2, paragraph 2B.11h. The account symbol on the SF 215 will be 36X8132.1AR.]

(2) The Treasury Department computes the U.S. dollar equivalent of each remittance and returns the accomplished [SF 215] and a copy of the VA Form 48627. Uncollectible remittances are returned with a completed [SF 5515,] Debit Voucher, in the same manner as a domestic uncollectible.

(3) Upon return of the accomplished [SF 215,] the Deposit [activity] will control the affected unit of deposit through the following process and, as a byproduct, correct the fund distribution if the money belonged to a fund other than 36X8132. (1) The collections input containing the correct fund code will be released for [processing in accordance with local operating procedures.] (2) A copy of the accomplished [SF 215] will be forwarded to the Accounting Section for posting to 36X8132. (3) The amount of the [SF 215] will be subtracted from the total amount shown on the [Fund Distribution Reports] as being 36X8132. This will have the net affect of crediting the proper funds for a given unit of deposit when all [SF 215's] are considered.

c. Other Foreign Remittances

(1) [These remittances will be processed in accordance with MP4, part I, chapter 2, paragraph 2B.11h.]

(1) Uncollectible Remittances and Collection Fees

(a) Uncollectible remittances are returned to the VA with the unaccomplished [Deposit Ticket.] The remittance is sent to the Insurance Division with specific instructions to delete the pending diary on the insurance master record. A copy of the [Deposit Ticket] is sent to the Accounting Section as notification that the [Deposit Ticket] has been canceled.

(b) Collection fees which may be charged for the attempt to collect a check which is uncollectible are charged to the VA on [SF 5515.] These items are processed in accordance with paragraph [7D.02c.]

7D.04 FOREIGN CASH

a. Foreign currency and all related documents are handcarried to the immediate supervisor of the individual finding the cash, where it is recorded in the supervisor's cashbook. The supervisor delivers the currency to the cashier with other cash found during the routine processing.

(1) The cashier initials for receipt of the cash. VA Form 4367 is prepared assuring the type and amount of foreign currency is noted. The original is returned to the insured with FL 4298, Information to Insured Regarding Remittance. Copy 2 is retained by the cashier, and copies 3 and 4 are sent with any enclosures to the Deposit [activity.l

(2) The Deposit activity] prepares the input, which is identical to that of remittances drawn on foreign banks payable in foreign currencies, paragraph 7D.03a. Copy 3 of the counter receipt is exchanged for the cash when the deposit has been prepared, and copy 4 accompanies the [Deposit Ticket] sent to Accounting Section for control.

(3) Disposal of copies 2 and 3 of the counter receipt is accomplished by the cashier in the same manner as receipts for domestic items received from agent cashiers.

h. Each foreign currency is deposited on an individual [Deposit Ticket] which is completed in the usual manner, except the amount of deposit is not completed. The deposit is mailed to:

"Federal Reserve Bank of New York
Foreign Department
New York, New York 10045"

A letter with specific instructions to sell the enclosed currency and credit the dollar proceeds to the Treasurer's account must accompany each shipment to the Federal Reserve bank. The letter is prepared in quadruplicate, 3 copies to accompany the deposit with a description of each currency as to name of foreign country, medium of exchange and foreign currency amount. One copy is retained with the VA Form 41011, Record of Shipment of Valuables.

c. The Federal Reserve bank completes the [Deposit Ticket] (amount of deposit) and returns the accomplished copy when it sells the currency. The amount received for the currency is then coded on the pending input document which is released for computer processing.

SECTION E. EMPLOYER PAYROLL DEDUCTION FUNCTION

7E.01 GENERAL

a. Commercial employers, certain U.S. Government agencies and the Philippine Services may deduct an amount from an employee's pay for insurance premium payments or loan/lien repayments when authorized by the employee. The combined deductions of a participating organization are usually paid in a single remittance by the commercial employers and U.S. Government agencies. The Philippine Services payments are made to the agent cashier, VA regional office, Manila and reported on VA Form [41551,] Transmittal Schedule of Insurance Collections. (See sec. F for Manila collections.)

b. [The establishment of any new organization to the Employer Payroll Deduction System will be approved by the Insurance Program Management Division and accomplished by the Insurance Operations Division. The Payroll Office number is assigned by the Finance Division, which maintains a record of each number assigned and the related employee.]

c. [Employer accounts will be processed in accordance with local operating procedures.]

SECTION F. MANILA INSURANCE COLLECTIONS

7F.01 GENERAL

a. Insurance remittances collected in the Manila regional office are deposited with the Manila Branch, National City Bank of New York, rather than transmitted to the Philadelphia [VA regional office and insurance center] for deposit. Duplicate copies of the deposit slips, including the confirmed copy, VA Form [41551,] Transmittal Schedule of Insurance Collections, VA Form 4367 and VA Form [41622,] Transmittal List of Posting Media and Report of Distribution, are mailed to the Philadelphia [VA regional office and insurance center] for preparation of input to credit the insured's account.

b. The control of input prepared for Manila collections must be very tight because the money is on deposit and the total of the input must agree with the amount deposited. To facilitate the control of input, the Manila items are processed in a batch independent of domestic remittances and the amounts shown on the input are totaled to verify the amount reported on VA Form [41622] prior to computer processing.

7F.02 INSURANCE COLLECTIONS-MANILA PROCESSING

a. All collections for premiums, loan and lien payments and accounts receivable payments, will be processed as follows:

(1) U.S. Dollars. All U.S. dollar items will be deposited on an [SF 215, Deposit Ticket], with the eightdigit station code, 36000310, and address of the Philadelphia [VA regional office and insurance center.] Distribution of the [SF 215] will be as outlined in paragraph 2B.11g, when the deposit is for credit to another VA station.

(2) Pesos. All peso items will be deposited as outlined in paragraph [2B.11h(5),] but will include at the top of the commercial deposit slip the statement "Credit 36000310." Distribution of the commercial deposit slip will be as indicated in paragraph [2B.11h(5),] except copy 4 will be forwarded to the Philadelphia [VA regional office and insurance center] for posting. An additional copy of the deposit slip will be retained at the station to support the receipts issued in conjunction therewith. Dishonored (uncollectible) peso items will be returned to the Philadelphia [VA regional office and insurance center] through the Manila Treasury Regional Disbursing Office on TD Form RO188, Schedule of Uncollectible Checks, showing the U.S. dollar equivalent, effective at the time of collection.

(3) Document Numbering. For control purposes, [SF 215] will be numbered from the 3,000 series of numbers and the commercial deposit slips from the 4,000 series of numbers. At the beginning of every fiscal year, each series will begin with number one; e.g., 3001, 3002, etc.

(4) Deposits of Collections. Deposits of insurance collections will be made once each week and on the last workday of each month. Upon receipt of the confirmed copies of the deposit documents, all documentation required and the confirmed copies of the deposit documents will be shipped to the Philadelphia [VA regional office and insurance center], ATTN: COLLECTIONS AND CASHIER SECTION. On the last day of each month and after the endofmonth deposit has been made, a teletype transmission will be sent to the Philadelphia [VA regional office and insurance center] to advise them of the last two deposit document numbers from each series, the accomplished date, amount of each deposit and a distribution of the deposit by fund. [ ] In the case of collections on accounts receivable, adequate documentation will be included with the shipment to identify the item as something other than a regular premium payment. (VA Form 4-1027, Field Service Receipt-General, should be issued for accounts receivable collections.)

b. If there is a VA Form 29369, Notice of Payment Due, or other identifying information received with the payment, it will be attached to the VA Form 4367 for the use of the Philadelphia [VA regional office and insurance center.]

7F.03 MANILA INSURANCE COLLECTIONS-PHILADELPHIA PROCESSING

a. Acknowledgment and verification of receipt of a shipment is accomplished in the same manner as a domestic shipment. (See par. 7C.02a(2).)

b. All confirmed deposit and debit documents must be delivered to the Accounting Section immediately with a notation of the processing day number an which the input will be introduced into the daily update processing.

c. The items received are separated [(PaidAsBilled, Not PaidAsBilled, Philippine Services) and processed in accordance with local operating procedures.]

d. The input is combined and totaled to verify the total amount of credit to be applied to the insured's accounts. The input is then released for computer processing.

e. All documents received from the Manila regional office are stamped with the unit of deposit number. VA Form [41622] is released to the Accounting activity for posting.

f. If a collection involves a record maintained at the St. Paul [VA regional office and insurance center], the credit will be processed through existing procedures for interoffice transfers to move the credit to the St. Paul [VA regional office and insurance center.]

SECTION G. MONTHLY TREASURY CHECKS FROM SERVICE DEPARTMENTS

7G.01 PROCESSING

a. The monthly allotment checks are to be received via certified airmail so they may be identified and separated from routine mail. The appropriate service department will be notified by letter of all discrepancies noted by the Collections activity in the method of shipment.

b. The purpose of the strict mailing requirement is to preclude the loss of investment earnings from the unusually large amounts of the service checks. To further enhance the potential earnings, the FRB is notified by telephone of the amount of deposit prior to shipment of the checks. This procedure allows the VA credit for the deposit on the day the checks are deposited rather than the following day as the FRB usually closes its books prior to receipt of the daily deposits.

c. The service checks are deposited on a separate [SF 215, Deposit Ticket,] which is so marked to indicate the type of deposit.