CHAPTER 1. GENERAL

1.01 PURPOSE

Instructions in this manual prescribe the VA policies and mandatory procedures which govern the examination and certification for payment of miscellaneous vouchered claims and approval of claims for collection. Modifications to procedures outlined in this manual for the purpose of facilitating the processing of vouchers under the CALM system are contained in VA Manual, MP4, part V, chapter 12.

1.02 DEFINITION

FOR PURPOSES OF THIS MANUAL THE FOLLOWING DEFINITIONS APPLY:

a. Applicable Interest Rate. The interest rate established by the Secretary of the Treasury under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 611) and published in the Federal Register. This rate is referred to as the "Renegotiation Board Interest Rate" and is provided semiannually on or about January 1 and July 1 of each year.

b. Business Concern. Any person or organization engaged in a profession, trade or business and not for profit entities (including State and local governments, but excluding Federal entities) operating as contractors.

c. Contract. Any enforceable agreement, including rental agreements and purchase orders, between the Department and a business concern for the acquisition of property or services.

A contract must include the following payment provisions:

(1) Name, where practicable, title, phone number and complete mailing address of official of the business concern and their designated payment office.

(2) Payment due date(s).

(3) A stated inspection period following delivery, where necessary, for Federal acceptance of property or services.

(4) Separate payment date if partial payment is provided for partial execution or deliveries.

(5) If applicable, a statement that the special payment provisions of the Packers and Stockyard Act of 1921 (7 U.S.C. 182(3)) or the Perishable Agriculture Commodities Act of 1930 (7 U.S.C. 449a(4)) applies.

d. Designated Payment Office. The place named in the contract for forwarding of invoices for payment, or in certain instances, for approval.

e. Discount Date. The date by which, if payment is made, a specified discount can be taken.

f. Due Date. The date on which Federal payment should be made (see par. 2.08 for discussion of due dates).

g. Grace Period. [All grace periods have been eliminated by the Prompt Payment Act Amendments of 1988 and the Office of Management and Budget (OMB) Circular A125. Applicable for payments made under contracts awarded on or after April 1, 1989.

h. Payment Date. For check payments, payment date is the date shown on the check (date of issuance by Treasury). For electronic payments, the payment date is the date the contractor/vendor's bank received the payment (settlement date). For payments processed through the CALM system: Date reflected will be the second workday following the CALM schedule date.]

i. Proper Invoice. A bill or written request for payment provided by a business concern for acquisition of property or services. A proper invoice shall be considered as one that shows the name and address of the business concern; the invoice date; contract or other authorization number for delivery of property or services, i.e., common number; shipping and payment terms; description, price and quantity of property and services actually delivered or rendered and such other substantiating documentation or information as required by the contract.

j. Receipt of Invoice. [The date a proper invoice is actually received by the designated payment office (see subpars. (1) through (3) below):

(1) Invoices must be date stamped or annotated with the date at time of receipt, otherwise the date placed on the invoice by the vendor will be considered the date of receipt for the purpose of determining the payment due date.

(2) A proper invoice must meet the requirements of paragraph 1.02i. Any invoice determined not to be such a proper invoice suitable for payment shall be returned as soon as practicable, but not later than 7 days after receipt (3 days for meat or meat food products, and 5 days for perishable agricultural commodities, dairy products, and elidible fats and oils).

(3) Due Date: The calculation of the payment due date will begin from the date a proper invoice is received at the designated payment office or the date on which the Department has actually accepted the delivery of the property, materials, supplies or services, whichever is the later date.]

[(4)] Generally payments for goods and services acquired by the Federal Government are made after receipt, inspection, and acceptance of the goods and services or through reimbursements on costtype contracts. In other cases, payments may be made before receipt of goods or services. These payments, or contract financing, are referred to as progress payments, advances, or prepayments.

[k. NonWork Days. The definition of the word "day" has been clarified by OMB Circular A125 to include weekends and holidays. The following rule applies when paymenfs fall on weekends or holidays: Payments due to be paid on Saturdays, Sundays, or legal holidays will be paid the following business day.]

1.03 FORM OF VOUCHER AND PAYEE'S CERTIFICATION

a. Except in the case of carrier's vouchers for transportation and related services such as demurrage; etc., which will be presented on properly certified SF 1113 the form of the bill or invoice used by the vendor doing business with VA for supplies or services furnished is not material.

1.04 PREPARATION AND SUBMISSION OF VOUCHER

a. Responsibility. The vendor or claimant is responsible for the preparation and submission of the voucher. This requirement will not prevent the rendering of assistance by VA employees, when necessary in individual cases, where difficulty is experienced by the payee in the preparation of a voucher.

b. Alterations by VA Employees. Employees of VA will not effect any alteration to a payee's voucher or invoice in (l) the payee's name and address, or (2) the quantity or unit price of supplies or services, as stated on such voucher or invoice. However, where the payee has clearly made claim for the full quantity of supplies or services at the proper unit price(s) but, due to error(s) in computation or extension(s), the claim is overstated or understated in an amount of $30 or less, correction of such error(s) in computation or extension(s) may be affected by a VA employee without reference to the payee (see 57 Comp. Gen. 298.) Such authorized alterations will be effected in pen and ink by lining out the erroneous figure(s) and entering the correct figure(s) immediately adjacent thereto. Corrections will be authenticated with the autographed initials of the VA employee effecting same.

c. Copies. Where the payee's voucher has been prepared on machines of the type which necessitates the discarding of the ribbon copy, the copy which will be used as a voucher will be marked 'Original" and any additional copies furnished by the payee will be marked "Copy."

NOTE: The voucher processing instructions provided in the following paragraph 1.04d are applicable to all facilities. Invoices other than those requiring administrative certification, which pertain to the CASCA system will be submitted directly to the Austin [Finance Center] by vendors.

d. Office Responsible for Receipt and Processing Voucher. Vendor payments will be a mutual responsibility between Fiscal and Supply, but the receiving report and invoice files will actually be located in the Supply Service. Fee Basis invoices will be routed to Medical Administration Service by the mail room. Supply Service will separate invoices into two groups, namely: (1) those invoices pertaining to receiving reports will [be forward to Austin Finance Center] for matching purposes, with the exception of GSA/DLA invoices which will be immediately routed to Fiscal for payment; (2) those covering other services not involving receiving reports will be forwarded to Fiscal daily except as provided for in paragraph 1.04d(2). Since invoices covering services provided for the Construction appropriation under the CASCA system, on which no receiving report is involved, e.g., utility bills, are processed for payment in Austin, [Finance Center] it will be necessary for the Fiscal activity to obtain from the appropriate official an administrative certification prior to forwarding the invoice to [Finance Center] Austin, Texas for payment.

(1) Supplies, equipment, etc., received in the warehouse will immediately be acknowledged by a receiving report, vouchered in the Personal Property Management Section and forwarded to the Accounting Section, Fiscal Service, for the necessary general ledger entries. The receiving reports will be returned to [Austin Finance Center] daily for matching with invoices. However, CASCA receiving reports, e.g., purchases of equipment and supplies for Resident Engineers, will be mailed by Fiscal directly to the Austin [Finance Center], as annotated on the purchase order.

(2) Perfectly matched invoices and receiving reports (that is, quantity, amount on both documents in agreement) will be stapled together by Supply and forward to Fiscal daily for payment.

(3) All receiving reports and invoices that do not coincide in quantity and price will be brought to the attention of the Contracting Officer who will make the determination as to whether payment will be made or if further contact is needed with the vendor. In no instance will arbitrary adjustments be made. However, where the payee has clearly made claims for the full quantity of supplies or services at the proper unit price(s) but, due to error(s) in computation or extension(s) the claim is overstated or understated, correction of such error(s) may be effected by a VA employee with or without reference to the payee. If the Contracting Officer decides the invoice is to be paid as submitted, a brief explanation should be made on the invoice, and the invoice should be stamped and signed. For this purpose, each station should obtain and use a rubber stamp indicating the following:

"PAYMENT TO BE MADE AS BILLED" per

_____________________________________

Signature of Contracting Officer

(4) If Supply determines that a suspension should be made by Fiscal, detailed information on a memo OF 41 indicating discrepancies in quantity or dollar amount and reason for suspension will accompany the receiving report and invoice to Fiscal for payment. However, there need be no notation if payment differs from receiving report dollar amount for reasons listed below:

(a) Voluntary discounts (price reductions)

(b) Difference between estimated and actual freight charges

(c) Estimated orders (invoice not to exceed estimate by [$200] or 50 percent, whichever is less)

(5) If adjustments are necessary in connection with quantity and/or price change on posted items after the receiving report has been recorded in accounting, the adjustments must be routed through accounting for correction of general ledger postings.

(6) Supply Service will screen the unpaid receiving report files at least once monthly and where necessary request vendors to submit bills. This may be accomplished by the use of FL 4-266 or by telephone contact.

(7) The Austin [Finance Center] has the authority to make adjustments to vouchers up to the amount of $250 based upon telephone approval from the supply designated official at the facility. The supply designated official will make a report of contact and send it to the Fiscal activity at the facility.

e. Information Not Required On Invoices. Vendors' invoices which refer to purchase orders but do not contain detailed information as to the description of articles, unit costs, etc., may be accepted provided there is no discrepancy between the articles shipped and the purchase order, and this information and receiving reports are readily available for audit by representatives of the VA and General Accounting Office.

f. Periodic Statements. By arrangement with vendors, payment may be made on the basis of periodic statements provided the statements definitely identify the articles covered, unit costs, and total costs, either on the statement itself or by reference to other documents, and that this information is readily available for audit by representatives of the VA and General Accounting Office.

g. When Invoices Are Not Required. Invoices are not required for a recurring payment of a definite amount due at fixed intervals, provided verification is made that the amount is due and appropriate steps have been taken to prevent duplicate payments. These payments must be adequately identified on the [appropriate Voucher and Schedule of Payments form, SF 1166 or SF 1166 OCR.] This identification usually will be the contract number and period covered, but may be some other document which explains the Government's liability. Such recurring payments would include rentals, for example.

1.05 ONSITE AUDIT

All vouchers, except common carrier transportation vouchers submitted on SF 1113 and SF 1171 and supported with SF 1103, [ ] U.S. Government Bill of Lading, and SF 1169, [U.S. Government] Transportation Request, will be subject to site audit by the General Accounting Office, pursuant to the provisions of 3 GAO Sec. 14. Memorandum copies of common carrier transportation vouchers SF 1113 and SF 1171 will be maintained.

1.06 DATE VOUCHER RECEIVED

Except as otherwise provided in this paragraph, vouchers will be date stamped upon receipt in the [Supply activity (Fiscal activity at the Austin DPC for full CALM facilities).] At the option of local management, vouchers already date stamped in the station's Central Mail Unit need not be further date stamped upon receipt by the [Supply] activity. Vouchers to be paid in cash by the agent cashier will not be date stamped by the [Supply activity and will not be stamped again upon further processing by the Fiscal activity.]

1.07 ASSIGNING ADMINISTRATIVE VOUCHER NUMBERS

a. A series of administrative voucher numbers will be established for each fiscal year for transportation vouchers, and separate series, as prescribed for insurance vouchers covered in the M29 series of manuals. (MP-4, pt. I, par. 2C.01, prescribes the manner of assigning agent cashier voucher numbers to vouchers and invoices paid in cash.) Voucher numbers for transportation vouchers are required by 5 GAO 4040.15. Where two or more transportation vouchers payable to the same carrier at the same address are consolidated for payment by a single check, as provided in paragraph 4.02b, each SF 1113 or SF 1171 so combined will be assigned a separate administrative voucher number. At the option of the [ ] Fiscal Officer, voucher numbers may be assigned, in a separate series by fiscal year, to vouchers reimbursing General Services Administration under paragraph 3.11.

b. Schedule numbers, assigned to [SF 1166 or SF 1166 OCR, as appropriate,] will be entered on vouchers or invoices (other than vouchers assigned voucher numbers under subparagraph a above) at the time payments are scheduled. The use of a combination "PAID" stamp and numbering machine, or similar device, should expedite this operation in conjunction with that required by paragraph 4.02c.

1.08 UNPAID ACCOUNTS

There will be maintained at each station [(or at the Austin DPC for those stations operating under fullCALM procedures)] a file for accumulating the various documents constituting a complete voucher. The file will contain:

a. Receiving reports supporting entries in the general ledger accounts.

b. All other documents applicable to any transaction which will result in a payment voucher.