CHAPTER 2. GENERAL LEDGER ACCOUNTING
SECTION A. GENERAL
2A.01 MAINTENANCE OF GENERAL LEDGER
a. Except where mechanized accounting procedures specifically provide otherwise, the accounts of general ledger will be maintained on the forms and in the manner prescribed in this chapter.
b. The general ledger accounts will be maintained by appropriation, fund, station number, etc., on OF 1014, General Ledger. However, the optional use of distribution ledger sheets, OF 1016, Distribution Ledger, is permitted for those interoffice accounts which require a breakdown by station number. The OF 1016 provides a number of columns for distribution of the account balance thereby eliminating the need for a separate OF 1014 for each station number applicable to the interoffice account.
c. Instructions governing the maintenance of the general ledger accounts will be found in the "Account Descriptions" portion of this manual. Specific instructions governing the preparation and posting of the annual closing entires to the general ledger accounts will also be found in the "Account Description." After the closing entires are made each account will be totaled, verified and ruled in accordance with recognized accounting practices.
d. General ledger sheets established for annual appropriation accounts may be maintained on a continuing basis until [September 30th of the fifth fiscal year after the period of availability for obligation ends. No new successor "M" Accounts will be established and the existing "M" Accounts will be phased out. The last ones are scheduled to be cancelled as of September 30, 1993.] General ledger sheets for other than [fixed] appropriation accounts may also be maintained on a continuing basis. However, to facilitate record disposal, new sheets must be established after not more than 3 years.
2A.02 MAINTENANCE OF JOURNALS
a. Accountants will be responsible for selecting appropriate journal forms to be maintained. In making the selection, consideration should be given to the volume of particular types of accounting transactions, the end product, etc. Multiple column journal techniques should be utilized to the maximum extent possible to save time in performance of necessary analyses.
b. The sheets applicable to each fiscal year will be numbered, maintained by appropriation of fund, and kept in a binder or binders to facilitate the accounting work at the operating level. Entries on each sheet will be completed, totaled, verified, and the totals forwarded in accordance with recognized accounting practices.
c. Care should be exercised in entering transactions in the "Miscellaneous" columns on all journals in order to insure that the data indicated under the "Account Number" subcaption will, in each instance, contain the number of the general ledger account and, when necessary, the numerical symbol of the appropriation, fund, or station involved.
2A.03 MAINTENANCE OF SUBSIDIARY LEDGERS
Operating ledgers may be established on distribution ledger sheets (OF 1016) subsidiary to certain general ledger controlling accounts, to provide an analytical breakdown, by activity of amounts appearing in the respective controlling accounts. Where a specific form is not prescribed, field stations may use distribution ledger sheets (OF 1016) to maintain any other subsidiary record. Descriptions of the several sections of the operating ledgers will be found in chapter 6 of this manual.
2A.04 CONTROL OF DISBURSING AUTHORITY
a. It is the responsibility of the accountant to determine the adequacy of funds in the disbursing authority account prior to submission of vouchers for payment. Whenever the balance is insufficient to cover immediate disbursements, additional funds will be requested from the applicable funding authority. In case of prior year funds, requests should be submitted to the Office of the Assistant Secretary for Finance and Planning (047G2). (Controller) Appropriate justification will accompany the request.
b. SF 215, Deposit Ticket, SF 1166 series, Voucher and Schedule of Payments, OPAC (On-Line Payment and Collection) System bills SF 1081, Voucher and Schedule of Withdrawals and Credits, and SF 1098, Schedule of Canceled Checks or Undelivered Checks, are the documents most frequently used to schedule transactions affecting the various disbursing authority accounts.
2A.05 APPROVED VOUCHER BASIS
All accounts of the general ledger affected by disbursement or collection transactions resulting from withholdings will be maintained on an approved voucher basis. This means that all documents (SF 1166, SF 1081, SF 1098, etc.), which have been approved or certified during an accounting period will be recorded as transactions of that period whether or not they are accomplished by the Disbursing Officer. OPAC bills entered on the system from the 24th of the previous month through the 24th of the current month and adjustments entered from the 28th of the previous month through the 28th of the current month will be recorded as transactions of that month. Collections made by agent cashiers will be recorded as transactions of the accounting period during which they are forwarded to the depository. Collections deposited to the credit of another station will be recorded in the accounts of the station receiving credit as transactions of the month during which the deposits are confirmed by the depository if received prior to the close of the month. If received in the succeeding month they will be handled as transactions of that month.
2A.06 SCHEDULE NUMBERING SYSTEM
a. Series of schedule numbers commencing with number "1" will be established at the beginning of each fiscal year and will be maintained in unbroken sequence by each field station. In every instance schedule numbers will be preceded by an eight-digit Department station symbol, e.g., 36 000 (station number).
b. Separate series of schedule numbers will be maintained for each of the following classes of schedules:
(1) SF 1166, Voucher and Schedule of Payments, for other than those described below.
(a) A separate series of schedule numbers prefixed by "B" will be assigned to all schedules covering benefit payments initiated in the Beneficiaries Accounts activity.
(b) A separate series of schedule numbers specified by "F" will be assigned to all schedules covering payments to be made in foreign currency.
(c) A separate series of schedule numbers prefixed by "T" will be assigned to all schedules covering transportation vouchers.
(d) A separate series of schedule numbers prefixed by "R" will be assigned to all schedules covering checks drawn in dollars, but subject to negotiability restrictions imposed upon the checks by the Treasury Department and the Philippine Government. These are known as "restricted checks."
(2) SF 1098, Schedule of Canceled Checks or Undelivered Checks.
(3) SF 1081, Voucher and Schedule of Withdrawals and Credits. Only one series of schedule numbers will be maintained irrespective of whether VA is the paying or billing office. The schedule number, in sequence, will be shown after "Bu.No." for either the office billed or billing office as appropriate. This series of numbers will also be used for OF 1017-G, Journal Voucher.
(4) SF 1184, Unavailable Check Cancellation. One series of numbers identified by year, julian date, sequential number (beginning with 0001) and station number, will be assigned by the respective facility where the disbursement was issued ALC (agency location code). This number will be placed in the field identified as "agency reference."
2A.07 ACCOUNT SYMBOLS AND TITLES
a. Expenditure account, general fund receipt account, and available special and trust fund receipt account symbols will be shown on all vouchers, schedules, and other approved documents forwarded to the Treasury Department, Division of Disbursement. It is not necessary to show account titles on such documents.
b. The eight-digit ALC will be indicated on all documentation processed through Treasury disbursing offices and depositories, e.g., 36-00-XXXX (where XXXX identifies ALC symbol).
c. Documents processed through Treasury for stations operating under CALM must use symbol 36-00-1200. Regional offices operating under CALM should use symbol 36-00-1200 only on documents processed against administrative appropriations or funds.
SECTION B. RECORDS OF ORIGINAL ENTRY
2B.01 GENERAL
The records of original entry will consist of journals wherein will be recorded accounting transactions supporting the entries in the general ledger. The numerical symbols of the general ledger accounts affected and amounts to be charged or credited thereto will be indicated on the basic accounting documents. These documents may be entered individually to the journals or may be grouped, summarized, and posted as a one-line entry in the appropriate journal daily or as frequently as found necessary. The journals will be maintained in such a manner that, when totaled and posted to the general ledger, the entries may be traced back to the journal totals and, thereby, to the individual documents.
2B.02 DISBURSING AUTHORITY JOURNAL
VA Form 4565, Disbursing Authority Journal, is recommended for use in recording all transactions which affect the disbursing authority accounts. However, in the event local requirements necessitate the segregation of transactions in a manner that would preclude the use of this form, other VA forms may be used provided the features of VA Form 4565 are observed. The journal is designed to provide a readily available balance at all times during an accounting period. The balance will be developed as frequently as found necessary, but at lease monthly. VA Form 4565 or any other suitable form may be used in lieu of maintaining separate receipts and disbursement journals.
2B.03 DISTRIBUTION JOURNAL (VA FORM 1389)
a. This form is designed for both general ledger and cost accounting purposes. Additional columns, as required, are made available by utilizing the continuation sheets. The form should be utilized to the extent deemed advantageous with appropriate headings to clearly identify the accounts concerned.
b. In order to provide increased flexibility for subsidiary operating account distribution, VA Forms 1389, Distribution Journal, and 1389a, Distribution Journal (Continuation Sheet), may be substituted for and used as a cash receipts journal, cash disbursements journal, accounts receivable journal, salary distribution journal, service distribution journal, inventory and expense journal, etc., at the discretion of the accountant. Special columns for subsidiary ledger operating accounts may be established in the various journals when it is determined that time can be saved through the use of such columns.
2B.04 INVENTORY AND EXPENSE JOURNAL
a. The inventory and expense journal is established as a book of original entry for all property vouchers, receiving reports to which property voucher numbers are assigned, and Supply Fund issue documents. This journal will also include adjustment entries where the amount delivered and receipted for differs from the amount previously recorded.
b. At the end of each month the documents recorded during the month will be reviewed to ascertain whether or not delivery has been accomplished. Entries for those on which delivery was not accomplished during the month will be reversed and re-established on the first workday of the succeeding month.
c. At the option of the station, service transactions listed in paragraph 2B.06 may be recorded in this journal in lieu of maintaining the Service Distribution Journal when the volume of transactions is minimal.
2B.05 SALARY DISTRIBUTION JOURNAL
A salary distribution journal will be used to record personal services data. The journal will be used as a book of original entry for general ledger, allotment accruals, and cost purposes; however, at those stations where operating ledger accounts are maintained by authorized mechanical methods, cost distribution entries should be made directly to operating accounts. At the option of field stations, the salary distribution journal may be subdivided to conform to payroll blocks. Columns will be headed with general ledger accounts established to record the expenses and accruals pertaining to personal services. General ledger accounts will be posted monthly. Cost accounts will be posted monthly except where postings are made mechanically. Each payroll will be posted directly to allotment ledger accounts. Amounts of monthly estimates for accrued salaries and wages will be posted to allotment accounts from the salary distribution journal. The amounts of accrued salary expenses, payable from administrative appropriations, established at the end of each month will be reversed prior to or simultaneously with the recording of the first completed payroll, except that reversal in October of accruals established in the month of September will not be necessary. Accrued salary expense established for the Supply Fund and construction appropriations 36X0110 and 36X0111 will be reversed each month including October.
2B.06 SERVICE DISTRIBUTION JOURNALS
a. The maintenance of a service distribution journal is prescribed for the distribution of all applied costs other than those recorded in the inventory and expense journal or salary distribution journals. The service distribution journal may be effectively used for the following types of transactions.
(1) Receiving reports covering services payable.
(2) Credit allowances for items produced by a VA station when placed in use or consumed by the station.
(3) Intrastation transfers of charges and credits.
(4) Interstation transfers of service charges and credits.
(5) Monthend accumulation of applied costs for contractual services and other costs applicable to the accounting period for which no specific evidence of indebtedness exists (other than terms of the contract or authorizations) and the corresponding reversing entries. The first entry each month in the service distribution journal will be the reversing entry for accruals of appropriation costs established at the end of the previous month. However, reversal in October of accruals established in the month of September will not be necessary. Accrued service expense established each month for the Supply Fund and construction appropriations 36X0110 and 36X0111 will be reversed each month including October. When payments are made during the current year for accrued services applicable to prior years' operations, the amount of such payments will be shown as debits to accruals established in the prior year and as credits to the appropriate accounts.
2B.07 (DELETED.)
2B.08 ACCOUNTS RECEIVABLE JOURNAL
An accounts receivable journal will be used to summarize SF's 1080, 1081, 1114, 1184 or any other document or letter used to establish an accounts receivable, for posting to the general ledger. SF's 1114 pertaining to outstanding employee travel advances will be entered in the reference column only. To assure that all SF's 1114 issued by administrative offices have been received, a check should be made to ascertain that the preceding number has been recorded in the journal.
2B.09 JOURNAL VOUCHER (OF 1017-G)
a. OF 1017-G will be used for the following purposes:
(1) To document expenditure transfers and adjustments between appropriation, fund and receipt accounts which affect a single VA station.
(2) To document general ledger transactions when it is not feasible to make entries from journals or basic documents. Likewise, adjustments of previous ledger entries will be made through the medium of OF 1017-G.
(3) To document accruals and in transit transactions at the close of the month. The transactions will be either listed and totaled on the OF 1017-G or worksheet attached thereto. This same document can be used to record reversal of transactions at the beginning of the subsequent month.
(4) To document Supply Fund cash sales to support the SF 224, Statement of Transactions. The form will be prepared monthly marked "momo record for file". It will not be posted to the accounting records.
b. OF's 1017-G will be assigned by the same employees authorized to certify SF's 1081 (par. 2C.04h). A full and complete description of the transaction will be made and the voucher will be conspicuously marked "EXPENDITURE TRANSFER" or "ADJUSTMENT," indicating the nature of the document. Each voucher will be adequately described and supported by working papers cross-referenced to documents or accounts when necessary for full clarification.
c. OF's 1017-G will not be submitted to the Treasury, however, they will be reported in section I of the SF 224, and both the charge and credit amounts must agree. All OF's 1017-G prepared between ALC 36001200 CALM and other VA agency location codes will be processed and reported on the CALM SF 224 report. The original OF 1017-G must be forwarded to the Austin DPC (362B1) no later than the 22d calender day of the month.
d. OF 1017-G will be prepared in an original only.
SECTION C. DOCUMENTATION
2C.01 GENERAL
a. Audit of the financial transactions of the VA, with the exception of carriers' vouchers and related copies of schedules, will be conducted at the site of operations by representatives of the Office of Inspector General and occasionally by GAO Representatives. Accordingly, the original of all vouchers, other than carriers' vouchers, schedules, and contracts will be retained in the Fiscal activity. Since the original vouchers or invoices will constitute the "Paid Voucher File," special care must be exercised in the maintenance and storage of these documents. Minimum requirements shall include a control system that will insure the safety and return of any documents that may be removed from the designated retention area. In determining the manner in which these documents will be filed, consideration should be primarily given to station needs rather than audit requirements.
b. The following paragraphs outline basic requirements with respect to the types of financial documents used most frequently. Although stations may prepare additional copies when required for local usage, every effort should be made to fit station needs to the number of copies prescribed herein.
2C.02 TRANSFER OF DISBURSING AUTHORITY
a. VA Forms 4-4564, Transfer of Disbursing Authority, or computer generated transfer of disbursing authority, will be used by Central Office to advise station of the amounts of disbursing authority and allotment advanced or withdrawn. Forms indicating appropriations or funds for which allotment accounts are maintained will be recorded in both the disbursing authority and allotment accounts. (See par. 3A.02.)
b. VA Forms 4-4564 will be used by field stations to transfer disbursing authority between stations when accounts for the appropriation or fund are maintained at both stations. The most common purposes for which disbursing authority is transferred between stations follows:
(1) Interstation transfers of patients' funds. (See sec. E, this chapter.)
(2) Interstation transfer of funds due incompetent beneficiaries. (See sec. E, this chapter.)
(3) Interstation transfer of benefit appropriation collections. (See sec. J, this chapter.)
(4) Transfer of foreign currency charges between [ ] stations.
(5) Authorized draw and release actions for insurance funds (par. 8E.22).
(6) Interstation transfers of collections made for other stations. (See sec. E, this chapter.)
2C.03 VOUCHER AND SCHEDULE OF PAYMENTS (SF 1166 [(OCR)] AND SF 1167 [(OCR)]
a. SF 1166 [(OCR)] and SF 1167 [(OCR)] are disbursement vouchers as well as schedules of payments. Accordingly, SF 1166 [(OCR)] and SF 1167 [(OCR)] will be signed by a certifying officer attesting to the correctness and propriety of payment and will also be signed by a designated employee of the Accounting activity certifying as to the availability of funds for disbursement. The certification by accounting will be stamped on the reverse of only the copy retained by the Accounting activity. Since full responsibility for ascertaining the availability of funds is vested in the agency it is extremely important that balances be examined prior to submission of SF 1166 [(OCR)] and SF 1167 [(OCR)] to the regional disbursing office for payment. The certification stamp will be in the following format.
I certify that sufficient funds are available for disbursement from the appropriation(s) and/or fund(s) designated.
Signature and Title__________________________________
Accounting Entries
b. The following requirements apply to all types of payments except those specifically mentioned in succeeding subparagraphs and insurance payments which will be prepared and distributed in accordance with instructions contained in the Department of Veterans Benefits, Insurance supplement to this part. Accounting analysis will be indicated on the third copy of SF 1166 [(OCR)] and SF 1167 [(OCR)] and such other copies as may be necessary.
Copy Initial Distribution Final Disposition
(1) To regional disbursing Retained by regional disbursing
office. office to support Statement of
Accountability.
General ledger coding data will not
be shown on the original and copies
transmitted to the regional
disbursing office
.
(2) To regional disbursing Returned by regional disbursing
office. office and filed in Fiscal activity
to support SF 224.
(3) Retained in Accounting Filed with paid vouchers, or in
activity. General ledger separate file if paid vouchers are
data coded and posted to filed alphabetically by payee.
financial accounting
records.
(4) To regional disbursing Returned by regional disbursing
office. Transportation office for submission to the General
vouchers (except no-check Services Administration as prescribed
vouchers). in paragraph 2H.03.
c. When voucher deductions from payments are to be credited to VA accounts, deductions will be listed as the last items on the schedule and the payee block will contain the phrase "Information for VA and Not Required by Treasury Department." Deductions may be made to more than one appropriation, fund or receipt account on the same SF 1166 [(OCR)] and SF 1167 [(OCR)] provided that the account symbol and amount applicable to each is clearly identified. Deductions creditable to other VA stations will be deposited to 36F3875 and simultaneously transferred by SF 1081 or VA Form 4-4564, as applicable, to the affected station and appropriation or fund. In these cases the accomplished copy will be used as both a disbursement and collection document when preparing the statement of transactions.
d. Collections made for other Government agencies by deductions from payments will require the issuance of a check. The payee block of the SF 1166 [(OCR)] and SF 1167 [(OCR)] will contain sufficient information to permit the receiving office to identify the transaction. Where volume warrants, consolidated payments may be made. A listing identifying the debtors should be attached to the schedule.
e. No-check vouchers will be scheduled separately on SF 1166 [(OCR)] and SF 1167 [(OCR)] which will be prepared in the original only. The form will not be forwarded to the regional disbursing office but will be retained with the other retained schedules.
f. No-check transportation vouchers will be scheduled separately on SF 1166 [(OCR)] and SF 1167[(OCR)] which will be prepared in duplicate. These schedules will not be forwarded to the regional disbursing office. The duplicate will be forwarded to the GSA as provided in paragraph 2H.03.
g. Additional copies of the SF 1166 [(OCR)] and SF 1167 [(OCR)] are required under the following circumstances:
[(1) Five copies will be prepared when making foreign currency payments. The schedule will be prepared to show the name, station number, and address of the initiating facility. The D.O. symbol will be left blank. The schedule will be numbered as prescribed in paragraph 2A.06 by the initiating facility but will not be recorded in its general ledger accounts. Copies (1), (2), (3) and (4) will be forwarded to the VA Finance Center, Austin. Austin Disbursing Office will forward copies to the Chief Disbursing Office. The Chief Disbursing Office will forward copies (1) and (2) to the paying United States Disbursing Office (State Department). Copy (3) will be retained by VA Finance Center, Austin, pending notification by appropriate disbursing embassy of actual dollars disbursed. Copy (5) will be retained by the initiating office pending receipt of copy (3) showing the actual dollar amount disbursed. (For transfer of charges refer to par. 2E.07.) Voucher Audit procedures are in MP-4, part III, paragraph 4.02.]
(2) Foreign currency payments chargeable to the Supply Fund will be handled in accordance with subparagraph (1) above. However, interoffice transfer of charges and disbursing authority are not required for Supply Fund transactions. Upon receipt of the accomplished copy of the SF 1166 [(OCR)] and SF 1167 [(OCR)] the [VA Finance Center, Austin,] will transcribe the payment data to copy (3) of the schedule and record the transaction as a debit to account 474271 and a credit to account 471012. Copy (3) of the SF 1166 [(OCR)] and SF 1167 [(OCR)] will be promptly forwarded to the initiating station to liquidate the payable previously established. The variance account will be credited to offset the debit entry made by the [VA Finance Center, Austin].
(3) Foreign currency payments chargeable to the PFOP and General Post Fund will be scheduled in accordance with subparagraph (1) above. Upon receipt of the accomplished copy of the SF 1166 [(OCR)] and SF 1167 [(OCR)] the [VA Finance Center, Austin,] will transcribe payment data to copy (3) and record the schedule as a debit to account 1014 and a credit to account 1012. Copy (3) of the schedule will be promptly forwarded to the initiating station where it will be recorded as a debit to accounts payable and a credit to account 1013.
2C.04 VOUCHER AND SCHEDULE OF WITHDRAWALS AND CREDITS (SF 1081)
a. Use of SF 1081. The SF 1081 will be used for the following purposes:
(1) Billing other Government agencies for goods delivered or services performed.
(2) Payments made to certain other Government agencies for reimbursable goods and services received.
(3) All adjustment actions between appropriation, fund, and receipt accounts (including general fund receipts) involving disbursements or deposits when another Government agency is affected.
b. Distribution of SF 1081. The four-part, prenumbered SF 1081 will be distributed as follows:
Copy Initial Final Distribution
Distribution
1. Original To customer for Retained by customer as support of SF
payment. 224.
2. Duplicate copy To customer for Retained by customer to be used as
retention. posting media.
3. Triplicate To customer. Returned to billing office and used as
copy posting media.
4. Quadruplicate Retained by billing Upon receipt of copy (3), this copy
copy office as pending. may be disposed of in accordance with
[MP-4, Part X, Office of Budget and
Finance Records Control Schedule].
c. Responsibilities of the Billing Office. The billing office (the ALC initiating the SF 1081 for goods/services rendered to a customer) will complete the sections of the SF 1081 identifying the name, ALC and mailing address to receive credit; the appropriation, fund or receipt account to be credited; and the name, ALC and mailing address of the office to be charged. Only the total credit to each appropriation will be recorded in the summary block. Individual amounts which are combined to arrive at such totals will be listed and totaled in the space reserved for details or shown on an attached supporting document identifying the nature of the bill. In all cases where the transaction involves an available special or trust fund receipt account, the related appropriation symbol followed by the letters A/R will be shown. The billing office will indicate the transaction date and the billing office number. The billing office will provide a billing office contact (name of individual(s)) to be contacted in case of inquiries. The SF 1081 will be signed by an authorized certifying officer before forwarding to the customer for processing. The quadruplicate copy (billing office copy) of the SF 1081 will be retained as pending.
d. Transmittal of SF 1081. Upon completion and verification of the SF 1081, the billing office will forward the SF 1081 to the designated location specified by the customer. Note, no document will be forwarded to the Treasury. The SF's 1081, must be forwarded to be received by the customer no later than the 22nd calendar day in order to assure payment in that accounting month. SF's 1081 received after the 22nd calendar day will be processed by the customer in the next accounting month.
e. Responsibilities of the Customer Office. The customer office (the ALC paying by SF 1081 for goods/services rendered) will complete the sections of the SF 1081 identifying the customer voucher number, the appropriation to be charged, the accounting month in which the transaction will be reported, and the amount which must agree with the billed amount. The customer office will verify the transaction as proper for transfer to the billing office and provide a customer office contact (name of individual(s)) to be contacted in case of inquiries. The SF 1081 will be signed by an authorized certifying officer. The triplicate copy (accomplished copy) must be returned to the billing office for use by the billing office to reflect the transaction in its internal ledgers. The customer office will retain the original and duplicate copies of the SF 1081. No copies of the SF 1081 will be forwarded to the Treasury.
f. Payment. The customer office will accomplish payment of the SF 1081 by reporting both the charge to their appropriation and the credit to the billing office's appropriation on their SF 224. The entries will be reported in section I of the SF 224 and both the charge and credit amounts must agree. The customer must report the transaction in the accounting month that it has indicated on the SF 1081 returned to the billing office. The customer office must assure that the appropriation symbol indicated by the billing office to receive credit is correctly cited on its SF 224. By certification of the SF 1081, the customer office will assure that the transaction is completed by reporting to the Treasury on its SF 224.
g. Reconciliation With Treasury. TFS Form 6652, Statement of Differences-Disbursing Office Transactions, will continue to be furnished by the Treasury. However, since SFs 1081 are no longer sent to Treasury, no SF 1081 related differences will be reflected on the TFS Form 6652.
h. Certification. Employees will be designated as certifying officers to certify SFs 1081. Notification to Treasury of the designees is not required. Employees so designated should be familiar with the procedures and responsibilities for completing interagency business transactions.
i. Incorrect Billing. Customer offices which receive SF 1081 billing documents that are immediately determined to have been sent in error to the wrong customer should contact the billing office and expedite the return of such documents to the billing office indicating that they have been sent in error.
j. Dispute of Total Bill. Customer offices receiving bills which in total are disputed should contact the billing office to determine the nature of the bill. If it is an error, the customer should return the bill to the billing office. If it is determined that the bill represents advance payment, the customer should treat the bill as a valid transaction.
k. Dispute of Partial Billed Amount. Customer offices which receive SF 1081 billing documents which contain items or amounts not immediately verifiable or which appear to be erroneous must complete the transaction as billed. At no time will the document received by a customer office be altered. For purposes of error correction, disputes will be treated as new business. After contacting the billing office, the customer office will prepare a new SF 1081, citing the original document and forward it to the billing office for settlement. Customer offices will have 60 days from the original transaction date to resolve any disputed items. The billing office will generate credit to the customer's appropriation on its SF 224 and will confirm the credit with the customer.
2C.05 CANCELLATION OF CHECKS
a. Documents to effect cancellation of checks, prepared in accordance with other parts of this manual, will be recorded in the general ledger accounts and subsidiary accounts, if appropriate, and distributed as indicated in the following paragraphs.
b. SF 1098, Schedule of Canceled Checks.
Copy Initial Distribution Final Disposition
(1) To regional disbursing Office. Returned by regional disbursing
office with cancellation data
noted thereon. Filed in Fiscal
activity as support of statement
of transactions.
(2) *To regional disbursing office. Retained by regional disbursing
office.
(3) Retained in pending file, Upon receipt of copy (1), this
Accounting Section. copy may be disposed of in
accordance with VA disposal
bulletins.
(4) Insurance checks.*. .
(a) Prepared by Insurance (a) Upon receipt of copy (1),
activity-retained in pending transcribe cancellation data and
file of Accounting Section return to originating Insurance
activity.
*(b) Prepared by Beneficiaries (b) Upon receipt of copy (1),
Accounts activity-retained in transcribe cancellation data and
pending file of Accounting forward four times a month to
Section Department of Veterans Benefits,
(299)
(5) Insurance checks.
(a) Cash surrender checks and (a) Same as copy (4)(b) above.
one-sum matured endowments
prepared by Insurance
activity-retained in pending
file of Accounting Section
.
**(b) Prepared by (b) Transcribe cancellation data
Beneficiaries Accounts from copy (1) and forward to
activity-retained in pending appropriate insurance activity.
file of Accounting Section
(6) **Insurance checks.
Initial, contingent, or amended Forward together with copies (4)
award checks-prepared by and (5) to the Insurance activity
Beneficiaries Accounts having possession of the insurance
activity-forwarded to records.
Accounting Section
*If a check to be canceled is on file in a disbursing office other than the one to which the SF 1098 is being transmitted, an extra copy will be forwarded with copies (1) and (2), An extra copy will be transmitted if the check was forwarded to GAO. Two extra copies will be transmitted if the check to be canceled was issued under a disbursing office symbol other than the one serving the station and the check was forwarded to GAO.
**The Manila regional office will transmit copies (4), (5), and (6) to the insurance activity having possession of the insurance records when SF 1098 is use to cancel a check for an initial, contingent, or an amended award, or copies (4) and (5) when SF 1098 is used to cancel an XC dividend check.
1Prepared only for cancellation of checks relating to VA Form VB 8-362.
c. SF 1184, Unavailable Check Cancellation.
Copy Initial Final Disposition
Distribution
(1) To regional To Treasurer of the United States.
disbursing office.
(2) To regional To Treasurer of the United States.
disbursing office.
(3) To regional To Treasurer of the United States.
disbursing office.
(4) To regional To Treasurer of the United States.
disbursing office.
(5) To regional Treasurer returns to regional disbursing
disbursing office. office.
(6) To regional **Returned to initiating station.
disbursing office.
(7) To regional Retained by regional disbursing office.
disbursing office.
(8) *Retained in Upon receipt of copy (6), this copy may be
pending file disposed of in accordance with VA disposal
Accounting Section. bulletins, except when an initial,
contingent, or amended award insurance check
is involved.
This copy will then be forwarded to the
Department of Veterans Benefits [(299).]
*This copy will be used to establish the accounts receivable for proceeds due from U.S. Treasurer. It will not be treated as "In Transit" at end of month.
**This copy will be used to debit the disbursing authority and credit accounts receivable.
The final disposition of SF's 1184 as described above applies only when the check is not on file at the disbursing activity. If check is located the SF 1184 will be returned to the initiating station and entries made at the time of submission will be reversed. SF 1098 will then be prepared and processed in the usual manner. However, if an initial, contingent, or insurance award check is involved the SF 1098 will be annotated to show that the account receivable previously established was reversed.
d. SF 1185, Schedule of Undeliverable Checks for Credit to Government Accounts.
Copy Initial Disposition Final Disposition
(1) To regional disbursing office. Returned by regional disbursing
office to initiating station.
Filed in Fiscal activity as
support of statement of
transactions.
(2) To regional disbursing office. Retained by regional disbursing
office.
(3) To regional disbursing office. Returned by regional disbursing
office to initiating station.
Filed in Fiscal activity as
subsidiary to accounts payable.
(4) Retained in Accounting Section. Upon receipt of copy (1), this
copy may be disposed of in
accordance with VA disposal
bulletins.
(5) Insurance checks-prepared by Upon receipt of copy (1),
Insurance activity-retained in transcribe cancellation data and
pending file of Accounting return to originating Insurance
Section. activity.
(6) Insurance checks-prepared by Transcribe cancellation data
Beneficiaries Accounts from copy (1) and forward to
activity-retained in pending file appropriate Insurance activity.
of Accounting Section.
(7) Insurance checks-initial, Forward together with copies (5)
contingent, or amended award and (6) to the appropriate
checks-prepared by Bene- Insurance activity which will
ficiaries Accounts then forward copy (7) to the
activity-forwarded to Accounting Department of Veterans Benefits
Section. (299).
2C.06 DEPOSIT TICKET (SF 215)
a. Deposit Ticket (SF 215) will be used for all classes of collections deposited with Federal Reserve banks and branches thereof as well as other Federal depositaries.
b. Instructions for the preparation and distribution of SF 215 are contained in MP-4, part I.
c. Copy (4) of SF 215 with applicable receipts will be received from the agent cashier, and will be filed in the Accounting Section. (Copy (3) will be returned by the depositary to support the statement of transactions. In cases of collections deposited for credit to other stations, transcribe data to copy (4) and forward copy (3) to the Fiscal activity of the station receiving credit for the collection.
2C.07 UNCOLLECTIBLE CHECKS
a. SF 5515, Debit Voucher, will be used by depositaries to directly process charges for uncollectible items in the accounts of the Treasurer of the United States. The form will also be used by the Treasurer when it becomes necessary to honor an unavailable check previously treated as canceled on SF 1184, Unavailable Check Cancellation.
b. Depositaries will retain the original and duplicate copies of the debit voucher and forward the triplicate and quadruplicate copies together with the uncollectible item to the depositing station. Upon receipt of the copies of the debit voucher, appropriate adjustments will be made to the general ledger accounts.
2C.08 BILLS FOR COLLECTION
Bills for Collection (OF 1114) or U.S. Government Freight Loss/Damage Claim (SF 362) will be posted to the accounts receivable journal. For further information pertaining to OF 1114 or SF 362, see MP-4, part I.
2C.09 INTERAGENCY BILLING (SF 1080)
[a.] All billings to the following agencies are to be processed by use of SF 1080:
Department of Defense
Government Printing Office
U.S. Postal Service
All Government corporations
The District of Columbia Government
[b.] SF 1080, Voucher for Transfers Between Appropriations and/or Funds, will be prepared showing thereon, in the space provided, the required information down to the "Certificate of Office Billed" section. The original and four copies will be forwarded to the office billed and a copy will be retained pending receipt of the check and accomplished SF 1080 at which time it may be disposed of in accordance with VA disposal bulletins.
[ ]
2C.10 ACCOUNTING FOR CLAIMS SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT (VA FORM 4-943)
a. All claims for settlement by the GAO will be submitted on VA Form 4-943, Reference of Claim to General Accounting Office Claims Division. Prior to submission to the GAO each claim and related VA Forms 4-943 (all copies) will be routed to the Accounting Section for verification of the established obligation. One copy of the VA Form 4-943 will be retained for control purposes.
b. Claims allowed in whole or in part by the GAO and payable from funds not available to VA will be paid directly to the claimant by the Chief Disbursing Officer.
c. Claims allowed in whole or in part by the GAO and payable from funds available to VA will be scheduled on SF 1166 and SF 1167 and the settlement documents distributed as follows:
(1) Transportation Claims
Copy Initial Distribution Final Disposition
(1) To regional disbursing RDO forwards to GAO.
office.
(2) To regional disbursing Claimant's notice copy
office. will be mailed to payee
(3) Retained at station. Included in monthly
shipment of transportation
vouchers to GAO.
(4) Retained at station. Retained at station.
.
(2) All other Claims
Copy Initial Distribution Final Disposition
(1) Retained at station. Retained at station.
(2) To regional disbursing Claimant's notice copy
office. will be mailed to payee.
(3) When an amount is withheld to liquidate an indebtedness owed another agency, the GAO will submit SF 1096, Schedule of Voucher Deductions, and an additional copy of the settlement document which will be forwarded through the regional disbursing office to the agency to whose credit the withheld amount will be deposited.
(4) When the entire amount allowed is withheld, copy (2) above will not be furnished.
d. Stations will be advised of claims disallowed by the GAO through the medium of a Settlement Certificate (GAO Form 44a) which will be routed to the Accounting Section.
2C.11 OPAC (ON-LINE PAYMENT AND COLLECTION) SYSTEM.
a. Use of OPAC. The OPAC System, which is a component of the GOALS (Government On-Line Accounting Link System), will be used for all interagency billing and adjustment transactions. Upon fulfilling the customer agency's order or requisition for services purchased or supplies shipped, immediate payment is accomplished by the billing agency crediting its own ALC and charging the customer agency's ALC.
b. Originating the Intragovernmental Transactions. OPAC transactions will be processed as follows:
(1) The customer agency must include its ALC, PAT, and sufficient descriptive information on the requisition or order form. This will enable the customer agency to match the bill with the originating requisition. The billing agency will provide the customer agency with appropriate instructions for transmitting this information.
(2) After the billing agency performs the request the accounting office will input the billing information directly into the system. Specific instructions for logging onto the system are provided by the OPAC Users Manual. The system will automatically issue a billing OPAC Billing Document Reference Number.
(3) The System is Updated Overnight. Customer agencies on the OPAC System can print out their bills at their site the day after the bills are entered into the system by the billing agency. All ALC's billed will receive a microfiche of these bills, regardless of whether ALC is on the system.
c. Billing and Collection Cycle. Billing and collection are accomplished simultaneously by the OPAC billing agency. Billing agencies have through the 24th calendar day of each month to enter bills for that month. Customer agencies have through the 28th calendar day of each month to enter adjustment to bills.
d. Recording Automated Interagency Bills in Administrative Accounts. The customer agency will verify the accuracy of each bill in the system, then record the payments applicable to its appropriation or fund symbols as of the payment date reflected in the system. The VA Finance Center will continue for now to make all input into CALM to record OPAC transactions which affect CALM appropriations and funds. Those customers not on the system will verify this information upon receipt of their bills on microfiche.
e. Reporting. OPAC transactions will be reported as follows:
(1) At the end of the month both the customer agency and the billing agency must include the NET TOTAL amount of all bills and adjustments for its ALC on its SF 224 for the current payment month. Bills entered on the system from the 24th of the previous month through the 24th of the current month and adjustments entered from the 28th of the previous month through the 28th of the current month will be included in the net total for the month.
(2) Treasury will compare the customer and billing agencies' SF 224s with the OPAC data. If there is a difference, a TFS 6652, Statement of Differences, Disbursing Office Transaction, will he generated, together with a "Monthly Register of Transactions." Agencies will investigate the differences and make the necessary corrections on their next SF 224.
(3) OPAC charges to the customer agency's ALC will be reported to the applicable appropriation or fund symbol for the fiscal year to which it relates. If, at the end of a fiscal year, a customer agency does not have sufficient time to determine the amount of an adjustment for its regular monthly SF 224, the agency should include the erroneous charge to its regular appropriation or fund symbol. When the amount of the adjustment is determined, a refund receivable account should be established in its regular appropriation or fund symbol for year-end reporting on the TFS Form 2108, Year-End Closing Statement. Such receivables should be cleared in the subsequent fiscal year by adjusting the amount to the OPAC billing agency and crediting the appropriation or fund symbol charged on its regular monthly reporting on the SF 224. These erroneous charges do not constitute overobligations or over expenditures with respect to 31 U.S.C. 665 Anti-Deficiency Act. The TFS Form 2108 should be footnoted to indicate those cases that would appear to overexpend the symbol charged.
(4) At the end of the fiscal year the billing agency will establish and report, on TFS Form 2108, an accounts payable for an amount equal to the amount of adjustments against the related appropriation or fund symbol of the OPAC billing agency.
f. Adjustments of Erroneous Charges. Erroneous charges will only involve differences concerning the dollar amount charged or the bill itself. If a customer agency determines that a bill is in error an adjustment should be made through the OPAC system, in accordance with procedures in their OPAC Users Manual, after first contacting the billing agency's representative. The telephone number the billing agency's representative will appear on the top of the OPAC bill. The customer agency is limited to 3 months, upon receipt of its OPAC statement, to process the adjustment. An adjustment must be processed on or before the 28th of the month to be included in that month's net total. The billing agency has 90 days to respond to the adjustment. If the adjustment is improper the billing agency should prepare a second OPAC bill in the proper amount, after reaching agreement with the customer agency. If the customer agency is not on the OPAC system it will prepare a hard copy SF 1081 and follow the procedures of that system.
SECTION D. ACCOUNTING FOR COLLECTIONS
2D.01 APPROPRIATION REFUNDS
a. Appropriation refunds are collections representing refunds of payments made in error, refunds of overpayments, and refunds of authorized advances except advances of travel funds. Appropriation refunds should be credited to the appropriation originally charged (or to its successor M account) and must be accounted for as reductions of expenditures. Whenever possible, collection documents representing refunds to appropriations should contain a reference to the voucher or contract being adjusted and also the symbol of the Disbursing Officer under which the original payment was made.
b. If the telephone company bill includes charges for recurring rentals due to FTS, such as dial switching and terminal equipment for the station end of access lines, SF 1081 will be submitted to GSA, itemizing such charges in detail. The SF 1081 will indicate the appropriation from which the telephone bill was paid as the appropriation to be credited. The paid copy of the SF 1081 will be deposited as an appropriation refund. OPAC charge back procedures should be used where applicable.
c. Collections for advanced sick and advanced annual leave will be treated as an appropriation refund and applied to the appropriation originally charged.
2D.02 APPROPRIATION REIMBURSEMENTS
a. Appropriation reimbursements are collections for commodities or services furnished, or to be furnished, and which by law may be credited directly to appropriations. Collections under this type of repayment generally result from contracts or agreements made by one agency with another to furnish commodities or services. The amounts involved may not be directly related to any particular disbursement previously made. These transactions do not represent a correction or adjustment of previously recorded expenditures. Stations must be in a position to justify the handling of a collection as an appropriation reimbursement if called for in connection with the audit of accounts by the GAO.
b. Specific examples of transactions properly classifiable as appropriation reimbursements are:
(1) Collections covering payments for hospitalization and medical services rendered persons other than those entitled to service under the laws bestowing such benefits to veterans. [ ] These will be treated as General Fund Receipts. These collections will be deposited to the credit of the appropriation available at the time the services were rendered (authority-appropriation act current at time services were rendered).
(2) Collections from the VA Canteen Service for services furnished by VA field facilities (authority-sec. 601 of the Economy Act (31 U.S.C. 1536)).
(3) Collections for services and non-Supply Fund property furnished other Government agencies under provisions of section 601 of the Economy Act (31 U.S.C. 1536). When it is determined that replacement of materials, supplies, or equipment sold is not necessary, proceeds are proper for deposit as "Miscellaneous Receipts."
(4) Collections received from personnel transferring to VA prior to the expiration of the period covered by a lump-sum payment which they had received for accrued annual leave. Such collections will be deposited as a reimbursement to the appropriation from which the employee's salary will be paid (5 U.S.C. 6306(a) and (b).)
(5) Juror and witness payments received by an employee as compensation for services rendered (e.g., fee for services as a juror, jury pay, per diem for jury service) shall be deposited to the appropriation from which the employee's salary is paid or credited against salary payable in accordance with 5 U.S.C. §5515. However, where juror or witness fees constitute a reimbursement for expenses, the employee may retain the fee. For example, jury and witness fees may be kept by an employee where state or local statutes provide that such payment constitutes reimbursement for out-of-pocket expenses (e.g., reimbursement for subsistence expenses, expense allowance, travel expense, ferriage and toll expenses, and expense money); See B-219496, January 22, 1986; B-183711, August 23, 1977; B-192043, August 11, 1978; B-214863, July 23, 1984, and 52 Comp. Gen. 325 (1972). Another exception is where an employee serves as a juror on a nonworkday including a holiday or during a period when the employee is in a nonpay status. Under these circumstances, the jury fee need not be considered reimbursement for expenses in order for the employee to retain the payment. See 45 Comp. Gen. 251 (1965); 37 Comp. Gen. 695 (1958); 36 Comp. Gen. 378 (1956); and 27 Comp. Gen. 293 (1947).
In cases where there is doubt as to whether the employee is authorized to retain the juror or witness fees, advice should be solicited from the Office of the District Counsel for a determination.
(6) Collections covering payments to the Medical Care appropriation for physical examinations conducted under the employee health maintenance program. These reimbursements will be computed and processed in Central Office.
(7) Field facilities specifically authorized to operate FTS consolidated switchboards will bill GSA monthly for reimbursable services furnished. The stations involved will be guided by instructions received from the [VHA (Veterans Health Administration] in determining the items to be included on the OPAC, and/or SF 1081 billings. Collections received from GSA will be deposited as appropriation reimbursements. These stations will also receive a monthly billing from GSA for reimbursable services chargeable to station funds. Under no circumstances will a single SF 1081 be processed for the net amount of the interagency billings.
(8) Collections received for employee's travel expenses under the authority provided in 38 U.S.C. 4113, should be deposited as an appropriate reimbursement to the appropriation from which the employee's expenses were paid.
(9) Collections received for quarters and subsistence and WOC'S, 5 US.C. 5911(c).
(10) Income earned at RMEC facilities for medical and health non-VA employees shall be deposited as an appropriation reimbursement to the applicable VA Medical Appropriation. (38 U.S.C. 4123(b), 5054(b)).
c. Collections of appropriation reimbursements for unexpired appropriations will not be available for disbursement except for making refunds of erroneous collections.
2D.03 GENERAL FUND RECEIPTS
a. Appropriation repayments or other payments which cannot be properly classified as reimbursements or refunds must be deposited as miscellaneous receipts in accordance with the general rule with respect to collections contained in 31 U.S.C. 3302(b). Amounts collected as liquidated damages under appropriations 36X0110 and 36X0111 are excluded from this provision. These amounts will be treated as an adjustment of the contract price when the contractor signs and returns the final settlement memorandum with no objection thereon to the assessment of liquidated damages.
[b.] All general ledger accounts used to record general fund receipt transactions will be maintained by general fund receipt symbol.
2D.04 REFUNDS OR ERRONEOUS COLLECTIONS
a. Refunds of collections deposited in error as appropriation refunds will be processed for payment after entry to the general ledger and allotment accounts where appropriate. Refunds of collections deposited in error as appropriation reimbursements will not be recorded to the allotment accounts, but will be processed for payment provided sufficient funds are available in the appropriate disbursing authority account.
b. Moneys erroneously deposited into the Treasury as "Miscellaneous General Fund Receipts" which are determined to be refundable to the depositor will be disbursed from account 20X1807 "Refund of Moneys Erroneously Received and Covered."
2D.05 SPECIAL AND TRUST FUND RECEIPTS
a. Special and trust fund receipts are classified into two general classes as follows:
(1) Available Receipts. Receipts of special or trust funds which, pursuant to law or trust agreement, are immediately available in their entirety as appropriations to a single agency for expenditure without further action by the Congress are classified as available receipts. Excluded from this category are receipts to be applied to the retirement of public debt obligations and funds in connection with which the computation of interest charges or credits necessitates the maintenance of accounts for unrequisitioned balances or appropriations on the books of the Treasury. Special and trust fund receipts accounts currently utilized by VA which have been designated as available for immediate expenditure are the following:
Title Expenditure Account Symbol
National Service Life Insurance Fund, 36X8132
VA.
Post-Vietnam Era Veterans Educational 36X8133
Assistant Account
U.S. Government Life Insurance Fund, 36X8150
VA.
General Post Fund, National Homes, VA. 36X8180
The expenditure account symbols shown above will be used on schedules of disbursement only. The symbolization shown on collection documents will consist of the expenditure account symbol followed by the applicable suffix shown in chapter 5 of this part, and the letters "A/R." However, .1 will be the only suffix used on documentation prepared for collections made at field stations; e.g., 36X8132.1 A/R.
(2) Unavailable Receipts. Unavailable receipts are those receipts which at the time of collection are not appropriated and receipts which are not immediately available for expenditure because (a) further action by the Congress is required or congressional limitation has been established as to the amount available for expenditure; (b) the amounts credited to receipt accounts are later to be cleared in whole or in part to other receipt accounts before appropriation warrant action is taken; or (c) the amounts of receipts are appropriated or made available to an agency other than the one making collection.
b. Collections of amounts covering overpayments or erroneous payments made from special and trust fund expenditure accounts are classified as refunds. The decimal suffixes and the letters "A/R" will not be used when depositing such collections. However, collections of amounts covering repayments for credit to insurance appropriations or funds are exceptions to this rule and, with the exception of revolving funds 36X4010 and 36X4012, all insurance collections will be deposited initially as receipts.
2D.06 [SUSPENSE] ACCOUNTS
The following suspense accounts are provided for deposit of remittances the purpose of which cannot be identified, or the appropriation or fund to be credited cannot be determined, at time of receipt.
a. 36X6875 SUSPENSE, VA. When it is known or it can reasonably be presumed that the remittance will ultimately be refunded, or paid to a private firm or individual, the remittance is immediately deposited in this account until proper disposition can be made. Examples of this type collection follow:
(1) Collections of guarantees and deposits in connection with bids or contracts.
(2) Collections to be applied in conjunction with appropriations or funds as payment of vouchers, such as collections for personal toll calls made by employees.
[(3) Withheld taxes for moving expenses.]
b. 36F3875 BUDGET CLEARING ACCOUNT (Suspense) VA. When the purpose of a remittance or the appropriation, fund or receipt account to be credited cannot he determined at time of receipt, and it can reasonably be presumed that the remittance will ultimately be credited to a VA or any agency's appropriation, fund or receipt account, or experience has shown that the preponderance of unidentified remittances are eventually credited to a VA or any agency's appropriation, fund or receipt account, the remittance is immediately deposited in this account until disposition thereof is determined. An example of this type collection follows:
Collections in cases where the exact amount due the government has not been determined and refund of all or part of the collection is possible. Collections covering advance payment of fees for copying or photo stating Government records are examples of this class of collections.
c. The following types of collections are classified as moneys held by the Government as fiscal agent or banker:
(1) Deductions from payrolls representing authorized withholdings from salaries and wages for the purchase of U.S. savings bonds, and State and Territorial income taxes.
(2) Collections for credit as personal funds of patients.
(3) Collections for credit of funds due incompetent beneficiaries.
d. Although deductions from payroll vouchers for Federal income tax withheld from salaries and for both employee' and employers' share of the FICA tax are not deposit fund transactions, collection and disbursement of these items will be handled in the same manner as deposit fund transactions.
e. Collections made at the request of Treasury Department Regional Disbursing Officers for overpayments made by them and charged to their accounts will be deposited to the credit of 36F3875 Budget Clearing Account (Suspense) VA, by the collecting field station. These collections will be disposed of by [SF 1166] prepared as follows:
(1) The payee will be shown as:
Division of Disbursement
Treasury Department Office No. __________ (number of disbursing office receiving credit)
For credit to account __________ (the real account number to be credited will be provided by the Regional Disbursing Officer)
(2) The amount will be shown in the "Amount" column.
(3) "No Check" will be shown in the "D.O. Check No." column if the disbursing officer servicing the station is to receive credit. If a disbursing officer other than the one servicing the station is to receive credit the notation "No Check" will be omitted.
f. Disposition of funds held in suspense accounts will be made as follows:
(1) An examination of all "Unidentified Remittances" in suspense accounts 36F3875 and 36X6875 will be conducted at least every 30 days to insure against amounts remaining in the accounts longer than necessary. If it is determined that a remittance covers an indebtedness to the U.S. Government it will be transferred to the applicable appropriation or fund by OF 1017G.
(2) After all reasonable effort to identify the "Unidentified Remittances" have been exhausted the transfer will be made to General Fund Receipt Account. The transfer will be made by OF 1017G to General Fund Receipt Account 36 3099 miscellaneous recoveries and refunds, not otherwise classified.
g. All available checks drawn on the U.S. Treasury which are in the possession of any Government agency whether due the payee or the payee's estate will be automatically canceled within 24 hours of receipt by the disbursing centers. SF 1098, Schedule of Canceled or Undelivered Checks, will be used to initiate the cancellation of these checks. All checks must accompany the SF 1098 and should be listed in numerical order. An original and two copies win be prepared. The original and one copy will be transmitted to the disbursing center for recordation in 36X6875, Suspense, VA. The third copy will be used by the agency for recording in fund 36X6875.
(1) Accounting for and disposition of these funds will be as follows:
(a) Upon receipt of accomplished form SF 1098 from the disbursing office, field stations will record appropriate entries in [36X6875] (Suspense) account.
(b) The station will immediately review the transaction and clear the item from the suspense account, based on one of the following subparagraphs:
1. Items determined to require remail action will be disbursed directly from the suspense account.
2. All other items will be treated as requiring cancellation. Entries will be made to transfer from suspense to the appropriation or fund account originally charged for the disbursement or the appropriate succeeding account. (See par. 2B.09a(1)). Applicable entries will be made to effect reductions to cost and accrued expenditures.
(2) Returned treasury checks that were issued through the PAID system will be processed in accordance with instructions in Chapter 15, PAID Accounting Operations.
2D.07 ACCOUNTING FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE
a. General ledger accounts receivable balances will be adjusted when action has been taken to suspend or terminate collection action, waive an indebtedness, accept a compromise or refer an indebtedness to the General Accounting Office in accordance with procedures outlined in VA Manual MP-4, part I.
b. Accounts receivable, for which the station maintains accountability, that are terminated, waived, compromised or referred to GAO will be recorded in the appropriate receivable and writeoff accounts. Those receivables on which collection actions are suspended will be transferred from the active to the suspended receivable accounts. Receivables established for ineligible hospitalization which are referred to GAO for further collection action will not be recorded in statistical accounts at the time of referral. However, Form C-92, Notice of Case Status, received from GAO indicating amounts of full or partial liquidation will be recorded in the applicable statistical accounts.
c. A constant review of all accounts receivable must be made during the entire year to ascertain if the debt falls within the criteria established for termination and can be removed from the accounts. Delaying the review tends to distort and nullify anticipated reimbursable earnings which are vital to VA-wide budgetary control and optimum fund usage.
d. An allowance for bad debts will be maintained in the "other" series of general ledger accounts for other than Federal Appropriation receivable accounts, i.e., 1201, 1209, 1212, 1213, 1221.02 and 1228. The establishment of these allowances will be computed, and adjusted monthly or as needed, based on past collection experience.
SECTION E. INTERSTATION TRANSACTIONS
2E.01 INTEROFFICE TRANSFER VOUCHER (VA FORM 1033)
a. VA Form 1033, Interoffice Transfer Voucher, will be used to make transfers between stations of the following items:
(1) Transfers of receivables. (Receivables established for administrative appropriations will not be transferred between stations.)
(2) Transfers of charges other than common service charges.
(3) Transfers of Supply Fund assets and liabilities. (See ch. 7.)
(4) Transfers of insurance charges and credits. (See Veterans Benefits Administration, Insurance supplement.)
b. One series of numbers will be used for all VA Forms 1033. The forms will be numbered in numerical sequence preceded by the station number. A new series will be used each fiscal year. The form will be prepared in triplicate; original and duplicate will be forwarded to the receiving station which will complete the form and return the duplicate to the issuing station. A cutoff date of the 25th of the month will be established by the releasing station so that the interoffice transaction may be recorded at both stations in the same month.
2E.02 TRANSFER OF ANNUAL APPROPRIATION COLLECTIONS
a. Cash collections received which are for credit to the accounts of another station will be forwarded to that station for deposit in accordance with VA Manual MP-4, part I, chapter 2.
b. Collections made for other stations by deduction from an appropriation or fund other than the one to be credited will be deposited to 36F3875 and simultaneously transferred by SF 1081 or OPAC to the applicable appropriation or fund at the station for which the collection was made.
c. Collections inadvertently transferred to the wrong station will be adjusted by use of a VA Form 4-4564. The station whose accounts were erroneously credited will prepare the VA Form 4-4564 to transfer the collection to the correct station.
2E.03 TRANSFER OF PATIENTS' FUNDS
a. Transfer of patients' funds balance will be made by using VA Form 4-4564 which will transfer both disbursing authority and the liability. Computer-generated printouts may be substituted under ADP applications.
b. VA Form 4-4564 will be prepared in duplicate for patients without guardians and in triplicate for patients with guardians. The patient's name and C-number will be shown in the "Description" column and the amount will be shown in the "1st Qtr." column. The "Remarks" section of VA Form 4-4564 will be used to describe any condition which may be attached to the funds transferred as "Specific Purpose Funds." Special attention will be given to the preparation, recording and routing of the VA Form 4-4564 to assure prompt receipt of the transfer document at the receiving station. To the maximum extent possible, the original of the form should be mailed by the close of business on the day the gains and losses sheet is received. Cutoff dates will not be established at the end of the month. VA Form 4-4564 used for transferring patients' funds will be numbered consecutively beginning with number "1" each fiscal year, and will be prefixed by the station number of the transferring station and the letter "P."
c. VA Form 4-4564 will be signed by the Fiscal or Assistant Fiscal Officer of the releasing station and distributed as follows:
(1) Original to receiving station.
(2) Duplicate retained in Accounting Section.
(3) Triplicate, when prepared, will be forwarded to the regional office District Counsel concerned.
2E.04 TRANSFER OF FUNDS DUE INCOMPETENT BENEFICIARIES
Computer-generated printouts similar to VA Form 4-4564 may be used under ADP applications for transfers of FDIB (funds due incompetent beneficiaries) between the centralized compensation and pension ADP system and any regional office not converted to the system for accounting purposes. Recordings for transfer will be made in the same month by the stations involved.
2E.05 TRANSFER OF CASH AWARDS
a. Awards received by VA from other Government agencies for ideas for improvement contributed by VA employees, will be credited to 36F3875 Budget Clearing Account (Suspense) VA by the Central Office Finance Division.
b. All transfers of cash awards within VA will be by means of SF 1081 and/or expenditure transfer. The preparing station will include the date of approval of VA Form 5-3469, Incentive Awards Approval Code Sheet, name(s) of tile employee(s), and amount payable to each in the case of group awards. The preparing station will retain VA Form 5-3469 to support the transfer.
c. The SF 1081 and/or expenditure transfer will indicate a withdrawal from 36F3875 for awards from other Government agencies, payable to employees at field stations. All other SFs 1081 for transfer of cash awards will indicate withdrawal from the operating appropriation chargeable with the award. All transfers of cash awards will be credited to 36F3875 at the receiving station.
d. Payment will be made to the employee(s) in accordance with procedures in paragraph 15A.060.]
2E.06 TRANSFER OF EMPLOYEE TRAVEL ADVANCES
When a station makes a travel advance to an employee who is transferring or being detailed to another station, the employee's travel advance will be transferred and disbursing authority received via SF 1081 (OF 1017G series) expenditure transfer. In all cases, the SF 1081 (OF 1017G series) must be recorded by both the receiving and transferring station in the same accounting period to preclude a difference on the agency SF 224, Statement of Transactions.
2E.07 TRANSFER OF APPROPRIATION CHARGES FOR PAYMENTS MADE IN FOREIGN CURRENCY
a. Foreign currency payments chargeable to medical care appropriated funds will be processed by the VA Medical Center, Washington, DC, on SF 1166 (OCR) and SF 1167 (OCR) as prescribed in paragraph 2C.03g(2) of this chapter. VA Central Office station 101 will process documentation for headstones. VA regional offices in Washington, DC, and Houston will process investigative reports. All other foreign payments will be handled by the VA Finance Center, Austin. Upon receipt of the accomplished copy of the schedule the following actions will be taken:
(1) Transcribe payment data to copy (3) of the schedule and record the transaction as a debit to 6411 and a credit to 1012 for the actual dollar amount of the payment. VA Form 1033 is not required to transfer the charges.
(2) Prepare VA Form 4-4564 to transfer disbursing authority from the field station and record the document as a debit of 1012 and credit to 6043.
(3) Promptly forward VA Form 4-4564 and copy (3) of SF 1166 (OCR) and SF 1167 (OCR) to applicable field station.
b. Upon receipt of the above documents from the [VA Medical Center, Washington, DC, or other appropriate VA facility,] the field station will record the VA Form 4-4564 in the appropriation accounts as a debit to 6033 and a credit to 1012. The SF 1166 [(OCR)] and SF 1167 [(OCR)] will be recorded as a debit to the payable account to liquidate the amount previously established as a liability and a credit to 6421 in the amount of the charge transferred. Applicable general ledger accounts will be adjusted for the difference between the estimated amount previously used in recording the receiving report and the actual amount paid.
SECTION F. PROPERTY ACCOUNTING
2F.01 GENERAL
a. The following terms are defined for fiscal property accounting purposes:
(1) Real Property. Government-owned land, buildings, and other structures and facilities under custody and control of the VA. Includes equipment and fixtures as defined under the category of "Building Service Equipment." Also includes water and sewage systems, roads, sidewalks, and other improvements.
(2) Building Service Equipment. Government-owned equipment and fixtures which are permanently installed in or attached to buildings and structures and become a part of the real property for the purpose of rendering the building or structure usable or habitable. Includes items normally required for the functional use of buildings and structures, such as heating and lighting fixtures, elevators, vaults, fire alarm and air-conditioning systems, etc., which, when installed, become an integral part of real property.
(3) Personal Property. All property other than real property. This includes Government-owned expendable (26 Supplies and Materials) and nonexpendable (31 Equipment) property under the custody and control of the VA.
(4) Warehouse Stock. Supply Fund personal property held in storage by the Supply activity pending issue (sale) to using divisions or other Government agencies. Excludes property classified as excess, nonexpendable property and building service equipment returned to the Supply activity and held pending reissue or reinstallation.
(5) Trust Fund Property. Personal property received as a gift or bequest from individuals or non-Government organizations and personal property purchased from General Post Funds.
(6) Supply Fund Property. This term is applied to all property procured by or donated to the Supply Fund. Such property remains fund property until sold or otherwise disposed of.
(7) Non-Supply Fund Property. Personal property other than trust fund and Supply Fund property.
b. Property purchased for the personal use of patients from funds available in deposit fund account Personal Funds of Patients, VA, is not Government-owned property and will not be accounted for as personal property for accounting purposes.
c. Freight and other transportation costs to be paid to carriers for transporting non-Supply Fund property will be financed by applicable VA appropriations.
d. Proceeds from sale of scrap, salvage, waste, or refuse will be deposited to "General Fund Receipts" with the exception that proceeds from sale of such property at the forms and publications and supply depots will be deposited to the Supply Fund.
e. Proceeds from the disposal of scrap, excess or surplus personal property of the Supply Fund and nonfund expendable property no longer required by the activity to which it had been furnished and is returned to the supply system will be deposited to the credit of the Supply Fund.
2F.02 CLASSIFICATION OF SUPPLY FUND, TRUST FUND, AND NON-SUPPLY FUND PROPERTY
The system of fiscal accounting for property will separately account for Supply Fund property, non-Supply Fund property and trust fund property. In order to insure full disclosure and accounting support for accountability statements, budget presentations, financial plans, and allocations of applied budgeted costs, property is classified as follows:
a. Supply Fund Property
(1) Property purchased by the Supply Fund.
(2) Supply Fund property transferred between stations.
(3) Forms and publications received by the forms and publications depot for salvage.
(4) Non-Supply Fund expendable personal property received from other stations and placed in warehouse stock.
(5) Non-Supply Fund expendable personal property (including items fabricated by VA activities) turned in to the Supply activity and placed in warehouse stock.
(6) Expendable personal property at field stations as well as nonexpendable personal property at supply depots received as a donation from other Government agencies and placed in warehouse stock.
(7) Warehouse stock declared excess and held pending disposition.
(8) Non-Supply Fund expendable personal property received by supply depots from other stations.
(9) Non-Supply Fund nonexpendable personal property received by supply depots from other stations and placed in issuable depot stock.
(10) Non-Supply Fund expendable personal property no longer required by the activities to which it had been furnished, and returned to the supply system for salvage or reclamation.
(11) Non-Supply Fund nonexpendable personal property inspected or repaired by Service and Reclamation Division and placed in issuable depot stock or classified as not economically repairable and held by the depot pending disposal.
(12) Supply depot Service and Reclamation Division storeroom inventories.
(13) Supply depot, Marketing Center and Central Office Publications Service operating equipment in use or held pending disposal.
(14) Scrap, salvage, waste, and refuse at the forms nd publications and supply depots.
b. Non-Supply Fund Property
(1) Personal property purchased by VA appropriations.
(2) Forms and publications purchased by VA appropriations.
(3) Nonexpendable personal property in use or returned to the Supply activity for reissue or disposal.
(4) Nonexpendable property and building service equipment in use or returned to the Supply activity and classified as excess or held pending reinstallation.
(5) Expendable personal property produced or fabricated by a VA activity for immediate or future use or consumption by the producing activity, or issue to another VA activity. (No fiscal accounting entries inventory, expense, or credit allowance, etc., entries-will be made for this type of personal property.)
(6) Expendable personal property (including items fabricated by VA activities) turned in to the Supply activity which is declared excess and held pending disposition.
(7) Nonexpendable personal property, and building service equipment fabricated by VA activities and placed in use. (Asset acquisition and credit allowance entries will be made for such transactions except stations or organizational units financed by DM&S appropriations.)
(8) Expendable and nonexpendable personal property received as a donation from other Government agencies and issued to using divisions immediately upon receipt.
(9) Nonexpendable personal property received by supply depots from field stations and held pending inspection or repair.
(10) Drugs and medicines purchased from State Pharmaceutical Associations.
(11) Contract field printing and binding (cost subaccount 2423 or 2424 as applicable.)
(12) Installed trust fund building service equipment.
(13) Scrap, salvage, waste, and refuse at stations other than the forms and publications and supply depots.
c. Trust Fund Property
(1) Property purchased from General Post Funds.
(2) Property received as a gift or bequest from individuals or non-Government organizations.
(3) Equipment donated by manufacturers for promotional, experimental or test purposes.
(4) Property left by any decedent upon premises used as a VA installation and who did not leave [any survivors], next of kin, or heir entitled, under the law of [their] domicile, to [personal] property as to which [the person died] intestate.
(5) Unclaimed property, exclusive of Government-owned property, found on premises under the control of the VA.
(6) Property of veterans who die in contract hospitals under the same condition as set forth in subparagraph (4) above.
(7) Trust fund property transferred between stations.
(8) Building service equipment and nonexpendable property removed from installation and held pending disposal which was previously acquired (purchased or donated) as trust fund property.
2F.03 ACCOUNTING REQUIREMENTS FOR NON-SUPPLY FUND PROPERTY
a. Requirements for the processing of all documents dealing with the supply function are prescribed so as to (1) permit the cost, general ledger, and allotment ledger accounting records to accurately reflect receivables, liabilities, undelivered orders, expenses incurred, and other essential data on a timely basis; (2) provide the voucher audit function with documentary proof of liabilities incurred in order that vendor claims may be properly processed for payment; and (3) distribute the accounting workload on a daily basis thus avoiding peakload periods. Property receipt, sale and disposition transactions are to be recorded in accounting records maintained for the calendar month during which the transactions occur in order that all essential accounting data are reflected in station and Central Office reports.
b. Supply Fund Property issued to using divisions from warehouse stock must be purchased from the fund by applicable VA appropriations. Issue documents will be prevalidated in accordance with paragraph 3C.13, and may be costed at time of such prevalidation. At the time of issue (sale to appropriation), the property loses its identity as Supply Fund property and for accounting purposes is classified as non-Supply Fund property.
c. General ledger control accounts will be maintained to show the value of serviceable or economically repairable nonexpendable property in use or held pending repair or reissue to using divisions of the station.
d. General ledger control accounts will be maintained to show the value of building service equipment installed or held by the Engineering activity pending reinstallation. Equipment removed from installation and turned in to the Supply activity will be recorded as a transfer to the appropriate property pending disposal account.
e. Two general ledger inventory control accounts are provided for non-Supply Fund property pending disposal, namely, station excess and VA excess property. The station excess property account will be maintained to show the value of non-Supply Fund property in custody of the Supply activity held pending excess circularization and transfer to other stations, advice of disposition by supply depots or Central Office, or reinstallation. This account will also be maintained to show the value of non-Supply Fund building service equipment transferred from other stations and held pending issue at a future date. The VA excess property account will be maintained to show the value of non-Supply Fund property in custody of the Supply activity held pending sale or donation. Items planned for disposal under the exchange/sale method will not be transferred from regular inventory accounts to the property pending disposal-excess accounts.
f. Non-Supply Fund expendable personal property received at supply depot will be accounted for as a donation to the Supply Fund. Non-Supply Fund nonexpendable personal property received at supply depots will be accounted for in the non-Supply Fund general ledger inventory control account for property pending inspection or repair; subsequent to inspection or repair the property will be accounted for as a donation to the Supply Fund.
g. Non-Supply Fund property returned to the Supply activity and reclassified by the station Supply Officer as Supply Fund property will be accounted for in Supply Fund and non-Supply Fund general ledger accounts.
h. Accounting principles which amplify the general ledger account descriptions and clarify the accounting transactions are as follows:
(1) Property Returned to Stock. Expendable property classified as excess and returned to warehouse stock will be recorded as a debit to the writeoff account, and a credit to operating expense-miscellaneous, property pending disposal account, work in process or other accounts, as applicable.
(2) Property Bought From Supply Fund Stock. When purchases are made by VA appropriations, the transactions will be recorded as a debit to applicable appropriation expense or asset acquisition accounts, and a credit to disbursing authority, or accounts payable to Central Office Finance Division and supply depots, and an increase of accrued expenditures in allotment accounts.
(3) Property Held Pending Transfer, Salvage, Destruction, Sale or Donation
(a) Serviceable or economically repairable property turned in to the accountable officer as excess to the station needs will be recorded as a debit to the appropriate property pending disposal account at original or estimated acquisition value, and a credit to operating expense-miscellaneous, work in process or other accounts, as applicable.
(b) Property held pending disposal which is transferred, sold or donated will be recorded as a debit to applicable writeoff accounts, interoffice accounts, receivables and a credit to the property pending disposal account.
(c) Property issued to service-connected veterans and subsequently returned to the VA, which will be held pending re-issue, will be recorded as a debit to Nonexpendable Property-Invalid Lifts, Other Devices and Equipment, account 1465 and a credit to inventory Writeoffs-Sale, Survey, and Trade-in account.
(4) Station Transfer and Receipt of Excess Property. Excess property transferred will be recorded as a debit to the inter-office account and a credit to the property pending disposal account at record value. Upon receipt, if expendable property is issued immediately to using divisions to fulfill a one-time requirement, the transaction will be recorded in the "Other" series of accounts as a debit to operating expense and a credit to interoffice accounts; if excess expendable property is placed in warehouse stock the amount will be recorded as a debit to the writeoff and credit to the interoffice accounts.
2F.04 ACCOUNTING FOR THE PROCEEDS OF SALES OF NON-SUPPLY FUND PROPERTY
a. Proceeds of sales of non-Supply Fund property will be deposited to "General Fund Receipts" when it has been administratively determined prior to collection that purchase of similar replacement items is not required.
b. Proceeds of sales of non-Supply Fund property will be deposited as follows when an administrative determination is made prior to collection that purchases of similar replacement items may be or are required:
(1) When sales proceeds are received prior to purchase of replacement items by VA appropriations, such proceeds will be deposited to [36F3845 Proceeds of Sales, Personal Property.]
(2) When purchase of replacement items is made by a VA appropriation subsequent to the deposit of sales proceeds in [36F3845], the proceeds will be transferred as an appropriation reimbursement to the appropriation charged with such purchase providing the purchase is made with the same year as the sale of the property being replaced or 1 fiscal year thereafter. In the event replacement purchase is not made by VA appropriation within the time limitation cited above, the proceeds will be transferred to General Fund Receipts.
(3) When sales proceeds are received simultaneously with purchase of replacement property by VA appropriations, the proceeds will be deposited as an appropriation reimbursement to the credit of the appropriation being charged for the replacement purchase.
c. In the event property is purchased by VA appropriations prior to sale of similar old property, the sales proceeds will be deposited as an appropriation reimbursement to the credit of the appropriation charged with the replacement purchase.
d. Station excess listings of certain non-Supply Fund property and station requisitions for the procurement of certain items of equipment are reviewed in Central Office. In those instances where items are authorized for procurement for one station and similar items of non-Supply Fund property are available for sale at a different station, Central Office will advise the stations concerned accordingly in order that proceeds of sales may be properly deposited as appropriation reimbursements. When a VA station is directed by Central Office to sell non-Supply fund property similar to items to be acquired at another station, proceeds of sales will be accounted for as follows:
(1) The station holding the property for disposition will effect sale and deposit proceeds on a separate SF 215 to the credit of [36F3845] at the station acquiring property similar to the items sold. The SF 215 must include reference to the Central Office request for transfer and description of the property sold.
(2) The station receiving the transfer of proceeds of sale will transfer the funds from [36F3845] to the appropriate appropriation in accordance with subparagraph b or c above.
e. In order that the GAO may be supplied with sufficient accounting data to establish the fact that the items acquired were similar to the items sold, adjustment vouchers and collection instruments effecting deposit of the proceeds to appropriations must cite the formal description (nomenclature) of the property purchased and of the property sold and must make reference to the vouchers and schedules involved in the transactions.
2F.05 ACCOUNTING FOR TRADE-IN OF EQUIPMENT
a. Equipment capitalized in the "Other" series of accounts which is traded in towards the purchase of a new item will be written off as a debit to account 4233 or 4254 at the time of release to the vendor. The new equipment will be charged to the applicable appropriation at net purchase price (purchase value less trade-in allowance). The new equipment will be capitalized in the "Other" series of accounts by debiting the appropriate asset account with the total value, crediting account 1722 with the net purchase price, and crediting account 4233 or 4254 with the trade-in allowance. In addition, appropriate entries must be made to capitalize transportation costs paid separately and initial installation costs when performed under contract.
2F.06 FISCAL NONFUND PROPERTY ACCOUNTING POLICY APPLICABLE TO SUPPLY ACTIVITIES SERVING TWO OR MORE FIELD STATIONS
a. In those instances where the Supply activity services two or more stations and each station has its own Fiscal activity, the servicing station is responsible for the settlement of vendor claims applicable to consolidated purchase orders. Such orders will be prepared to show the appropriation, allotment data and related amount applicable to each station. Additional copies will be prepared for obligation purposes. The availability of appropriated funds at both the servicing and serviced stations will be determined prior to release of the consolidated purchase order to the vendor. When the receiving report is processed the serviced station will be billed on SF 1081 [and/or expenditure transfer] for the amount due. The "Pay To" block [in all cases] will be completed to show a credit to clearing account 36F3875 or deposit fund account 36X6875 as appropriate. The servicing station will apply the amount deposited in Suspense toward the payment of the vendor's claim.
b. Supply Fund issues to serviced stations will be recorded in the appropriation accounts of the serviced station activity. Non-Supply Fund property issued by servicing stations to serviced stations, as well as non-Supply Fund property returned to servicing stations by serviced stations will be accounted for as interoffice transactions. Interoffice transactions will be recorded directly to accounts 6157 or 6167.
c. VA policy prescribes that VA offices under the jurisdiction of regional offices or centers with regional office activities will be supplied, where practical, by the nearest station Supply activity. In those instances where a VA office is served by a station Supply activity other than the Supply activity that serves the regional office or center of jurisdiction over the VA office, properly authenticated property vouchers covering the issue or return of property will be forwarded to the regional office or center Fiscal activity for necessary accounting action. Accounting requirements prescribed in the preceding subparagraph are applicable.
d. The supply servicing station Fiscal activity will bill serviced stations on or about the 25th calendar day of each month to reimburse the Supply Fund for amounts due up to the billing date. The SF 1081 [and/or expenditure transfer] will be itemized or suppored by a listing showing the property vouchers included in the billing. In determining the billing date the servicing station should allow sufficient time for the SF 1081 [and/or expenditure transfer] to be processed by the regional disbursing office prior to the end of the month. The purpose is to reduce to a minimum the balance to be reported on the trial balance for general ledger account 471214, Receivables-Federal.
e. The accounting policies set forth above are equally applicable in those instances where a Fiscal activity as well as a Supply activity are jointly serving two or more stations. Separate non-Supply Fund general ledger control accounts will be maintained for each station to reflect the value of equipment under the jurisdiction of each station.
2F.07 ADVANCE PAYMENTS TO [OTHER FEDERAL AGENCIES]
a. Advance payments are authorized to be made to [other Federal agencies] by paragraph 756(b), title 40, United States Code. Under this authority field stations will not be required to wait for receiving reports, but will make payment on the basis of constructive receipt of the items billed pursuant to the provisions of MP-4, part III. Such payments will be recorded in general ledger accounts as a debit to the advance payment account [and] a credit to the disbursing authority account.
b. In those instances where [other Federal agencies] require an advance payment from the VA prior to purchase or shipment of [commodities] requisitioned by the VA, appropriated funds may he advanced. The transaction will be recorded in accounting records as follows:
(1) Upon receipt of the advance payment billing from [other Federal agencies,] the amount of the advance will be recorded as a debit to the applicable appropriation advance payment account and a credit to the appropriation disbursing authority account.
[(2) When commodities are received from other Federal agencies the value of the property will be recorded as a debit to the appropriation or asset acquisition account and a credit to Federal accounts payable. A review will then be made to ensure crediting the proper advance and an offsetting code sheet processed crediting the advance account and debiting Federal accounts payable.]
(3) Differences between the amount advanced to [other Federal agencies] and the purchase price of the [commodities] as reflected on receiving reports will be promptly adjusted in general ledger accounts, as appropriate.
[2F.07.1 ACCOUNTING REQUIREMENTS FOR DEPRECIATION
A requirement of GAO title 2 U.S. Code, is that Government agencies must prepare "business-like" annual financial statements reflecting their overall position and operation. As a result of this requirement, each Fiscal activity will compute and maintain a depreciation record of all capital assets on a quarterly basis. Accountants will comply with the following procedures:
a. Real Property
(1) General ledger accounts 1826 and 1827 (subsidiary records maintained in Fiscal Service on VA Form 4578, Real Property Accounting Records), should be used to compute real property depreciation on a quarterly basis. These computations should then be entered on VA Form 4-5618a, Real Property Depreciation Accounting Record. Subsequently, the total of the itemized amounts shall be posted from VA Form 4-5618a to the proper depreciation general ledger account. The amount of depreciation to be charged each quarter will be computed on the "straight line" basis; i.e., the acquisition cost divided by the estimated useful life expectancy (total years converted to quarters) of the property. (Refer to ch. 6, sec. I, for examples of computations.)
(2) An addition or improvement results in a better asset than originally held. The useful life of improvements and additions will be the same as buildings, unless determined to be different by Engineering activity. In computing subsequent depreciation, the depreciable cost of the improvement is written off over the remaining life of the principal asset, or the life of the improvement, whichever is the shorter. If the improvement has utility beyond the expected life of the major asset, the addition's own useful life may be used.
(3) The gross amount of depreciation charged each quarter for items of real property will be accounted for as a debit to each respective expense account and a credit to the appropriate accumulated depreciation account. This depreciation expense will be charged quarterly for each item of real property until the asset is fully depreciated or disposed of. To close depreciation expense accounts at the end of each fiscal year, record a debit to account 2241 and a credit to each respective expense account.
b. Leasehold Improvements
(1) General ledger account 1828 should be used to compute amortization of leasehold improvements on a quarterly basis. Amortization recognizes the cost of leasehold improvements as an operating expense over the benefited period. Leasehold improvements are amortized over the remaining life of the lease or the remaining estimated economic life of the improvements, whichever is less. In accordance with GAO title 2, U.S. Code, agencies shall not amortize for periods longer than 40 years even if the useful life of the asset is greater than 40 years.
(2) The amount of amortization for leasehold improvements to be charged each quarter will be computed in accordance with depreciation instructions in subparagraph a above. The gross amount of amortization charged each quarter for items of leasehold improvements will be recorded as a debit to leasehold improvement expense and a credit to accumulated amortization for leasehold improvements. To close amortization expense at the end of each fiscal year, record a debit to account 2241 and a credit to leasehold improvement expense.
c. Nonexpendable Equipment
(1) Because of the variety of VA properties included in the aggregate, the Consolidated Memorandum Receipt (CMR) report is used as the source to produce a computer calculation depreciation schedule of all property in custody of the VA. Each facility will receive microfiche copies of it's equipment depreciation at the end of each quarter. This CMR depreciation schedule will serve as the subsidiary records to the accumulation for depreciation accounts. The gross amount of depreciation charged each quarter for each nonexpendable property general ledger account; i.e., 1461, 1468, 1493, 1494, 911493, 911494, 911466, 911467, 481461, and 481463, will be accounted for as a debit to each respective depreciation expense account and a credit to each appropriate accumulation for depreciation account. The computerized computation program will depreciate each item on the CMR schedule until the asset is fully depreciated or disposed of. Disposition of the property will be recorded as a debit to (a) accumulated depreciation, and (b) writeoff accounts for any difference between the recorded depreciated value and balance in the asset account at time of disposition, and a credit to the asset account. To close the depreciation expense account at end of each fiscal year, record a debit to general ledger account 2241 and a credit to the depreciation expense account.
(2) General ledger account 1469, (maintained in Central Office Finance Division) is not listed on the CMR report. Therefore, this account must be manually computed. The computation will be done by dividing the acquisition cost of each equipment item by estimated service life (years are converted into quarters) to yield the depreciation charges per quarter. VA Form 4-5618, Equipment Depreciation Accounting Record, should be used to record an itemized depreciation for each equipment item in account 1469. The total amount from VA Form 4-5618 shall subsequently be posted to the proper depreciation general ledger account as a debit to the depreciation expense and a credit to the accumulated depreciation expense.]
2F.08 ACCOUNTING REQUIREMENTS FOR REAL PROPERTY
a. General ledger real property accounts will be maintained on a current basis to show the capitalized value of (1) land, (2) buildings and improvements, and (3) other structures and facilities under the custody and control of the VA. The cost of the property will represent the actual cost if purchased or constructed; the estimated or transferred cost if acquired by transfer from other Federal agencies; or the estimated cost if acquired by donation, devise, forfeiture, or judicial process. Estimates will be based on the amount the Government would have had to pay for the property, if purchased, at the date of original acquisition. The capitalized value will also include the cost of any capital improvements (additions or betterments) incurred subsequent to the date of acquisition. Costs applicable to buildings, structures, and facilities in the process of construction will be capitalized in the accounts when the property becomes available for use. Costs applicable to excess or surplus real property will be retained in the general ledger accounts until official documentation is received indicating (1) that the property has been permanently transferred to another Federal agency; or (2) that it has been disposed of by sale or other disposal method.
b. The general ledger accounts will control subsidiary real property accounting records maintained in the Fiscal activity as prescribed in paragraph 2G.04. The data shown on the subsidiary records will be verified at least annually with property records maintained by the Engineering activity. The verification should insure that a subsidiary card exists for all items of real property. The real property cards will serve as the source of data for the preparation of GSA Form 1166, Annual Report of Real Property Owned by United States; therefore, verification will always be performed at the close of the fiscal year. Necessary adjustments will be accomplished prior to submission of the trial balance for the month of September each fiscal year.
c. The following guidelines are prescribed in order to attain maximum uniformity in the maintenance of the general ledger real property accounts:
(1) Land. The amount capitalized will represent the actual or estimated cost of Government-owned land under the custody and control of the VA (exclusive of public domain). The capitalized value will generally include the cost of the following items which are incidental to the acquisition or preparation of the land for use:
Appraisal Legal fees and expenses
Clearing Plats and surveys
Damage to property of others Removal and relocation of the
property of others as part of
purchase contract
Drainage Removal of structures or facilities
purchased and included in the
capitalized value of the land but not
used by the VA
Landscaping (restricted to costs in
connection with major construction)
Under no circumstances will the above incidental items be capitalized for public domain or for land held under revocable permit, etc.
(2) Buildings and Improvements. The amount capitalized will represent the actual or estimated cost of Government-owned buildings under the custody and control of the VA, including capital improvements (additions or betterments) applicable thereto. The capitalized value will also include the cost of fixtures and equipment normally required for the functional use of the buildings, such as plumbing, heating and lighting fixtures, elevators, air-conditioning systems, and items such as safes, vaults, etc., which are built into the building or permanently affixed thereto, the removal of which would materially damage the building. The cost of a utility system which serves only one building will be included in the capitalized value of the building served. The amounts capitalized will also include the cost of connecting corridors with costs applicable thereto distributed to the individual buildings on the basis of the area of the buildings served.
(3) Other Structures and Facilities. The amount capitalized will represent the actual or estimated cost of Government-owned structures and facilities under the custody and control of the VA. The cost of permanently installed fixtures and equipment normally required for the functional use of the structure or facility and permanent land improvements other than landscaping will be included in this account. A few of the items which are proper for capitalization as other structures and facilities are listed below for illustrative purposes:
Storage (other than buildings) Sidewalks
*Utility systems serving two or more Fences
buildings
Communication Systems Retaining walls
Roads and bridges Gasoline pumps
Flagpoles Greenhouses
Outdoor swimming pools Gas meter
stations
Grandstands and bleachers Incinerators
Parking areas Tennis courts
Entranceways
*Includes boiler house when it is a separate structure or occupies the major portion of a building used for two or more purposes.
d. Before the cost of construction projects can be properly recorded in the accounting records a determination must be made as to whether the project is proper for capitalization. Projects undertaken for construction of roads, buildings, utility plants and systems, additions to existing facilities, installation of building service equipment, and other permanent improvements and betterments that have the effect of increasing real property investments are to be capitalized. Project costs incurred for repairs to offset depreciation, or structural changes made to meet current operating needs rather than as permanent improvements, are considered an expense for accounting purposes. Project costs will be charged directly to expense or accumulated as work in process and subsequently capitalized or written off in accordance with instructions contained in paragraph 6E.02.
2F.09 ACCOUNTING FOR PROSTHETIC AND HOME DIALYSIS EQUIPMENT LOANED TO VETERANS
Prosthetic and home dialysis equipment loaned to veterans or temporarily held in stock pending reissue should be recorded in general ledger account 1465. The particular items of equipment to be recorded in general ledger account 1465 includes-hospital beds, both standard and special, invalid lifts, respirators, wheelchairs, both folding and motorized and home dialysis equipment. Subsidiary records maintained in the prosthetics activity will be reconciled to the general ledger quarterly and on September 30.
SECTION G. SUBSIDIARY ACCOUNTS AND RECORDS
2G.01 GENERAL
Subsidiary accounts or records are maintained to provide a further breakdown of the amounts carried in the control accounts in the general ledger. Postings to the control account and to the subsidiary record should be synchronized in order to facilitate reconcilement of subsidiary accounts with the control accounts. This is particularly true in those instances where the subsidiary record is maintained other than in the Accounting Section.
2G.02 LISTINGS OF SUBSIDIARY ACCOUNTS
The term "listing," as used herein, refers to a list which identifies the individual subsidiary accounts and indicates the amount of each account. At other times when the subsidiary and control are reconciled, an adding-machine tape should be made of the subsidiary accounts. When the subsidiary is maintained outside of the Accounting Section, a memorandum should be forwarded to the Chief of the Accounting Section stating that the subsidiary records have been taped and stating also the balance of the subsidiary accounts. The adding-machine tape should be retained until after audit by departmental auditors. The memorandum will be retained by the Accounting Section and will indicate the balance of the control account and identification of all reconciling items.
2G.03 REQUIRED VERIFICATION
The following general ledger and subsidiary accounts will be verified as indicated. (Verifications required for Supply Fund general ledger and subsidiary accounts are contained in ch. 7, and verifications required for insurance operations are contained in ch. 8 of this manual.) Under the CP&E ADP systems verifications of the subsidiary records maintained on magnetic tape with the controlling accounts will be accomplished at the intervals shown below. Documentation to support the verifications similar to that shown will be made a part of the accounting records.
Controlling Accounts Subsidiary Records
Advances to employees SF's 1038 maintained by the Voucher Audit
activity. (Memo monthly-listing end of fiscal
year.)
Advance payments. Voucher Audit activity file copies of paid
vouchers covering advance payments. (Memo
monthly-listing end of fiscal year.)
Prepaid expense. Subsidiary records maintained by the Accounting
activity. Verified periodically and at
September.
Receivables-loans. Subsidiary records maintained by the
Beneficiaries Accounts activity for the Voucher
Audit activity. (Memo monthly-listing
quarterly.)
Receivables-appropriation OF 1114, SF's 1080, 1081, 1184 and VA Form
reimbursements, refunds, and 4-1082 or listings of estimated amounts to be
general fund receipts. billed or collected maintained by the
Accounting Section. (Verified monthly.)
Account cards maintained by the Beneficiaries
Accounts activity. (Memo monthly-listing end of
fiscal year.)
Agent cashier funds Subsidiary records maintained by the Fiscal
activity. Verified at least every 90 days, at
time of unannounced audit of cash assets. (No
memo required.)