CHAPTER 8. INSURANCE FUND AND INSURANCE APPROPRIATION ACCOUNTING
SECTION A. GENERAL
8A.01 PURPOSE
The purpose of this chapter is to set forth the accounting policy of the VA, veterans insurance programs. The policies, principles and basic procedures defined in this part and as implemented by this chapter will be followed by all fiscal activites engaged in any phase of Insurance activity, including thosc of Ccntral Office.
8A.02 RESPONSIBILITlES
The Fiscal Officer, through the Chief of Accounting Section, is responsiblc for installation and operation of the insurance general ledgcr accounting systcm at field stations within the basic VA insurance accounting policies defined in this part and the general framework of accounts and procedures contained in this chapter. Fiscal officials at field stations are responsible for rendering technical advice on all phases of insurance accounting matters, including analysis and interpretation of pertinant accounting data. Fiscal officials at field stations are also responsible for the form and content of financial statements pertaining to insurance activities for use by local management.
8A.03 STATUTORY REQUlREMENTS
a. The accounting item will conform to the statutory requirements set forth in paragraph 1.09. The accounting system will also account for transactions processed under the provisions of the following veterans' insurance laws:
(1) Title 38, United States Code, Chapter 19.
(2) Servicemen's Indemnity Act of 1951.
8A.04 ACCOUNT NUMBER PLAN
a. A 4-digit basic general ledger account number will be used for all insurance accounts prefixed by a 2-digit fund and appropriation designation. The first digit in the prefix of all insurance fund and appropriation account numbers will be 8 to identify the account with the insurance program. The second digit of the prefix will identify the particular insurance fund or appropriation involved as indicated below.
Second Digit
of Prefix Symbol Title
1 36X8132 National Service Life Insurance Fund, VA
2 36X8455 Veterans' Special Life Insurance Fund
3 36X4012 ServiceDisabled Veterans Insurance Fund
4 36X0120 Veterans Insurance and Indemnities, VA
5 36X8150 U.S. Government Life Insurance Fund, VA
6 36X4010 Veterans Reopened Insurance Fund
7 36X4009 Servicemen's Group Iife Insurance Fund
b. The first digit of the basic account number will identify the class of account in accordance with the following design:
First
Basic Digit Account Class
1 Asset
2 Liability or Accountability
3 Income or Receipt
4 Expense or Disbursing
5 Budgetary
6 Interoffice
7 Statistical
c. The second digit of the basic account number will identify the account group within the broad class, for example, disbursing authority, receivable, etc., within the asset classification.
d. The third and fourth digits of the basic account number will identify the specific account within each group.
e. To provide analytical data for management purposes and for reporting requirements a two digit decimal suffix will be used. The first digit of the suffix will be used to identify the following types of transactions:
.20 Cash collections
.30 Collections by offset, amounts applied to reduce indebtedness or as income by "no-check" vouchers onother journal type actions. (Excludes credits contra to receivables.)
.40 Premiums-extended or paidup insurance
.60 Credit for receivables established
.70 Premiums-transfers and adjustments
.90 Assets acquired, liabilities paid or applied
f. The second digit of the suffix will identify various miscellaneous transactions when used with a specific account as follows:
(1) Whenever a policy lien, receivable, writeoff or waiver account is used to process transactions for the 36X0120 appropriation, the second digit will identify the following segments of thc fund:
.__1 MiIitary and Naval "T"
.__2 NSLI "H"
.__3 Servicemen's Indemnity
(2) Unapplied Collections
2064.01-Direct Collections
2064.02-Allotment/DFB, Collections
(3) Undistributed Insurance Collections
3569.01-Direct Collections
3569.05-Deductions From Benefits
3569.08-Allotment
3569.10-Reclassified as RepaymentsDebits
3569.11-Reclassified as Repayments-Credits
(4) Disbursing Authority Advanced or Withdrawns by -CO
6032.01-Philadelphia
6032.02-St. Paul
6032.05-VA Controller
(5) Collection Credits Transferred to Other Stations
6415.01-Philadelphia
6415.02-St. Paul
(6) Collection Credits Received From Other Stations
6425.01-Philadelphia
6425.02-St. Paul
g. An applicalion of the above account number plan is exemplified below with respect to account No. 811142.20.
8 Insurance Fund or Appropriation
1 National Service Life Insurance Fund, VA
1 Asset Account (class)
1 Advances and Loans (type of asset)
42 Policy Loans (specific account)
.20 Cash Collections (type of transaction)
h. The three types of insurance issued under the Veterans' Reopened Insurance Fund, 36X4010, will be identified by use of the following codes:
7 Service disabled standard insurance, "J"
8 Service disabled rate insurance, "JR"
9 Nonservice disabled rated insurance, "JS"
The above numeric codes will not be used as a part of the general ledger account numbers. The alpha codes will appear apart from the account number to identify the different segments on the trail balances and related reports generated by the ADP system. The numeric codes will be used to identify the three segments on input prepared to maintain the general ledger accounts on tape.
SECTION B. GENERAL LEDGER ACCOUNTING
8B.01 GENERAL
General ledger accounts for insurance funds will be maintained on an ADP system. The only exception is that accounts which are restricted for use the Servicemen's Group Life Insurance Fund (36X4009) are not on ADP. Each general ledger account, including memorandum accounts, will be on tape as an individual master record. Only the master records which are specific to a particular office having insurance transactions are maintained on ADP for that office.
8B.02 MAINTENANCE OF GENERAL LEDGERS
a. General leger accounts will not be deleted from or added to the ADP system without the specific approval of Office of Controller, Finance Services [(04713).]
b. The use of a particular gcncral ledger for system processing is dependent on the system edits, type of transaction and the effects the account has on reports and the various accounting formulas used by the system. This means that a specific account can only be used in the system if the type of transaction and the edits involved accept the transaction as valid, e.g., an account that is programmed to be accepted with a debit entry only for a particular transaction type will not be accepted by the system when used with a credit entry. Whenever it becomes necessary to change the method of posting to existing accounts, delete old or add new accounts, a complete analysis of the transaction must be made to determine the effects the change will have on the ADP accounting system. A complete explanation of the proposed change will be submitted to the Office of the Controller, Finance Service [047D3)] Central Office. If it is determined that ADP system modifications are necessary, they will be requested from the [Office of Data Management and Telecommunications] by the Office of Controller, Finance Service.
c. The instructions covering the maintenance and closing of the general ledger accounts are in appendix K of this manual. The instructions on the preparation of input to maintain the accounts on ADP are contained in MP-6, part II, supplement Nos. 3.1 and 3.2.
d. At the end of each month, the ADP system will produce a listing of all general ledger account master records for each station. The account balance and accumulated debits and credits as of the end of each month will be shown. This listing, will be filed in a binder and will be maintained as the Insurance General Ledger.
e. As of [September] 30th each year after the regular endofmonth processing is completed, a special endofyear run will be made by the system. This run will automatically process yearend closing transactions. After final processing is completed, the general ledger master record will reflect an opening balance if appropriate. The accumulated debit and credit fields will reflect zeros. An opening Trial Balance as of [October] 1st will also be generated at this time.
f. It is the responsibility of accountants processing general ledger transactions after monthend processing has been started on the ADP system to determine the effects such transactions have on fiscal reports. In some instances it may be necessary to process a transaction which will effect a fiscal report which has been completed by the ADP system in the first phase of monthend processing. Such transactions will be analyzed and a determination must be made to see if it will be necessary to request a rerun on the system so that the additional transactions may be included on the reports.
8B.03 MAINTENANCE OF JOURNALS
a. The ADP system will generate a daily listing identified as "General Ledger Transaction Listing." All of the general ledger accounts which had transactions processed for that day will be shown on the listing.
(1) The listing will show the accouting documents and related entries as they were processed from the input documents. Each accounting document will be identified by a specific transaction type number (see MP-6, pt. II, supp. No. 3.2, fig. [106.F1]).
(2) The listing will also include system generated accounting transactions from regular daily insurance and award runs as well as other special transactions. Each accounting action is identified by a special transaction type number.
b. The daily listings will be put in binders and will be maintained as insurance journals.
c. The ADP system will also generate listing of all input transactions processed for a particular day. Included on the listing will be the items rejected by the system and identified with a specific reason code. (See MP-6, pt. II, supp. No. 3.1, fig. [103.F4.] )
(1) The listing will be used as a control to make certain that all rejected items are resubmitted into the system for processing. All related input for a particular transaction will be rejected but only the input not meeting edit requirements will be identified with a reject code. Before rejected input is resubmitted, the complete transaction will be analyzed to make certain that all adjustments have been made.
d. Based on certain accounting formulas and system matching of contra entries a daily listing identified as "Daily X Foots," will be generated for each station. Each particular series of accounts is totaled, and under normal conditions there should be no differences between the serials. It is the responsibility of the accountants to check this daily listing. Any amounts noted on the "difference" line should be analyzed and necessary corrective action taken. Any differences that appear at the end of the month will be resolved prior to the final processing runs for the month.
e. Accounting transactions which affect the Treasury Statement of Transactions (SF 224) are also reconciled on a daily basis. A listing identified as "224 Reconciliation" is generated dally. All transactions that affect the disbursing authority accounts are accumulated and a formula based on the debit and credit entries is applied and if all entries are normal the "balance" line should show that there are no differences. Accountants are responsible for checking the listings. When a difference appears it must be resolved and corrective action taken as soon as possible. If the difference appears at the time transactions for the last day of the month are processed, it must be resolved before final processing is accomplished on the system.
f. Every month after the accounting transactions for the last processing day number are completed the interest accruals are computed for policy loans and [dividend] credits and deposits. The loan balanes for 4 percent and 5 percent loans are extracted from the special 700 report and inserted into GLUD EOM Pass 1. The system will then automatically calculate and post the interest accruals. Accrued interest on dividend credits and deposits is automatically computed and posted by the system. Administrative cost premium relative to the "J", "JR" and "JS" segments of the 36X4010 fund are also computed and posted by the system automatically at the end of each month. The amounts computed and the accounts posted will be identified on the "General Ledger Transaction Listing" as system generated transactions.
8B.04 SCHEDULE AND ACCOUNTING DOCUMENT NUMBERING SYSTEM
a. Schedules and accounting documents which are used to maintain the accounting system will be controlled by a transaction control number and will be numbered as follows:
(1) [SF 1166, Voucher and Schedule of Payment. This is a System Generated Schedule.]
(a) Insurance Awards (Run 251). The processing day number prefixed by "8" will be assigned for all system generated award payments. This will include numbers 8001 to 8366.
(b) InsurancelnForce (Run 155). The processing day number prefixed by "9" will be assigned for all system generated inforce payments. This will include numbers 9001 to 9366.
(2) [SF 1166, Voucher and Schedule of Payments. This Schedule is Manually Processed.]
(a) A separate series of numbers, prefixed by the letter "I" and commencing with number "1" will be established at the beginning of each fiscal year. This series which will include numbers 0001 to 8,000 will be assigned to all manually prepared schedules. The prefix "I" will not be entered on input documents prepared for system processing but it will be entered on the schedules. All such insurance schedules will be maintained in a separate file.
(3) [SF 215, Deposit Ticket] will be numbered as follows:
(a) Prepared by Collections Section for regular remittances, numbers 0001 to 4,999.
(b) Prepared by Collections Section for foreign remittances, numbcrs 5,000 to 6,999.
(c) Prepared by agent cashier, numbers 7,000 to 9,999.
(4) Manila-[SF 215, Deposit Ticket], and commercial deposit slips, will be numbered as follows:
[SF 215], prepared by Collections Section, Manila Regional Office, for U.S. dollar items, will be assigned numbers in the 3,000 series. At the beginning of every fiscal year, the series will begin with number one, e.g., 3001, 3002, etc.
(b) Commercial deposit slips, prepared by Collections Section, Manila Regional Office, for peso items, will be assigned numbers in the 4,000 series. At the beginning of every fiscal year, the series will begin with number one; e.g., 4001, 4ØØ2, etc.
(5) All other schedules and accounting documents not specifically listed above, such as SF 1081, SF 1097, SF 1098, [OF] 1017G, VA Form 1033, etc., will be numbered as follows:
(a) A separate series of numbers commencing with number "1", will be established at the beginning of each fiscal year and will be maintained for each type of schedule or document. This will include numbers 0001 to 9,999.
8B.05 ASSIGNMENT OF BATCH CODES
a. Input cards prepared to maintain the general ledger master records on the ADP system will be batched prior to submission to the data processing center for processing. Batch codes will be assigned by the accountants for each reporting office. Batch Codes will consist of two characters. The first character can be alphabetic (AZ) or numeric (29). The second character (units position) must be alphabetic. Digit zero and one and the alphabetic 1 and O will not be used because of their similarity in appearance. The batch codes and the specific purposes for which they are used are used to each reporting office as follows:
Units Position of Batch Code Purpose
Philly St. Paul Co Dept Co Contr.
A J P V Receipt-Transactions
B K Q W Disbursement-Transactions
C L R Y All Other Transactions*
*Includes Gold Flow/Statistical Input.
b. System generated transactions are assigned special batch codes as follows:
Transaction Type Batch Code
105-Gold Flow Transactions D series
205-Statistical Transactions D series
352-AdministrativeCosts-Run 510 JO
370-GLEGS Transactions-Run 150 IE
37l -GLEGS Transactions-Run 170 IG
372-GLEGS Transactions-Run 250 2E
380-Interest Accrual Adjustments (GLUD) AI
389-Yearend Closing Transactions (GLUD) CL
SECTION C. COLLECTIONS
8C.01 ACCOUNTING FOR COLLECTIONS
a. Collections of premiums, loans, liens and interest by insurance offices and collections received from other offices will be deposited by the Collection Section of the insurance office maintaining the insurance records for credit to their accounts with the Treasury Department. The collections will then be available for disbursement by the station making the deposit.
b. All insurance trust fund collections (36X8132 and 36X8150) will be initially deposited as receipts. Amounts which are later classified as repayments will be adjusted at the time such collections are distributed to the proper accounts. Insurance revolving fund (36X4010, [36X8455], and 36X4012) and appropriation (36X0120) collections will be deposited as repayments.
(1) The symbolization on receipt collection documents will consist of the account symbol followed by the applicable suffix and the leters "A/R", e.g., 36X8132.1 A/R.
c. Collection transactions processed as a result of withholding actions will be maintained on an approved voucher basis. This means that [SF 1166], SF 1081, SF 1098, etc., will be recorded as transactions of the accounting period during which they are prepared at the time they are approved or certified whether or not they are accomplished by the Disbursing Officer. Insurance collections will be recorded as transactions of the accounting period during which they are forwarded to the depository.
d. Collections of insurance funds by other than insurance offices which do not represent overpayments of death or disability awards, or XC dividends will be dispatched to the Collections Section of the appropriate insurance office on VA Form [41551], Transmittal Schedule of Insurance Collections.
8C.02 ACCOUNTING FOR MANILA COLLECTIONS AT PHILADELPHIA [VARO&IC]
a. The collection and debit documents will be included on the station SF 224, Statement of Transactions, as though the items were deposited locally; however, all Philippine peso deposits will be shown in column 3 as a minus (negative) disbursement. An endofmonth teletype from Manila will advise of the last two deposit document numbers for U.S. dollars (3000 series) and Philippine pesos (4000 series), the accomplished date, amount of each deposit and a distribution of the deposit by fund. The teletype will be used as a posting document to record the appropriate accounting entries based on the accomplished date.
b. Document numbers should be verified to assure no items have become lost in shipment. GLEGS/GLUD endofmonth processing will not be delayed for lack of receipt of the teletype but all efforts should be made to prepare the related input if the teletype is received prior to endofmonth processing. Endoffiscal year processing should not be accomplished without the teletype input.
SECTION D. CONTROL OF DlSBURSlNG AUTHORITY AND INVESTMENTS
8D.01 FUNDING
a. Within the prescribed limits increases or decreases to the station disbursing authority for insurance funds will be accomplished upon authorization of the Chief Fiscal Officer or Acting Chief Fiscal Officer. This authority may not be delegated.
b. The specific insurance funds upon which the Chief Fiscal Officer or Acting Chief Fiscal Officer may draw and the maximum amount which may be drawn during a calendar week will be established by the Office of Controller, Finance Service, and each station will be notified of the amount by letter of authorization. Maximums established for each weekly period may not be increased by amounts which were not drawn in the previous week(s). Maximum amounts may be revised as necessary to meet funding requirements. When funds in excess of the maximum authority are needed, they will be requested by teletype. The use of such additional funds for disbursement is not authorized until confirmation of the request is received.
c. The increase or decrease to the disbursing authority account will be accomplished on VA Form 4-4564, Transfer of Disbursement Authority. VA Form 4-4564 will be prepared and distributed in accordance with the instructions contained in paragraph [8E.20.] Simultaneously with the approval of the VA Form 4-4564 at a field station, a teletype will be dispatched to the office of Controller, Finance Service (047B1), Central Office, advising of the amount of increase or decrease, fund code and number, and the date of the VA Form 4-4564. The availability of funds for disbursement under this authority is contingent upon the release of this teletype.
d. Disbursing authority to cover funds for insurance appropriation (36X0120) will be requested from the Department of Veterans Benefits, Director, Budget Staff (201E), Central Office. Disbursing authority to cover insurance funds for which authority to draw has not been extended will be requested from Office of Controller, Finance Service (047B1) Central Office. Disbursements may not be made until confirmation of the request is received.
e. The amount of disbursing authority to be retained at any given time should be based on the needs of the station as projected by previous and anticipated disbursements. When the amount of disbursing authority exceeds the normal needs of a station and the excess amounts will not be needed for disbursements within 1 week, the excess amounts should be returned to Central Office. Simultaneously with the approval of VA Form 4-4564 for the amount to be transferred a teletype advising of the amount will be dispatched to Office of Controller, Finance Service (047B1). Excess funds will not be returned to Central Office on the last 2 workdays of the month. The following schedule will be maintained for the release of excess funds:
(1) During the month, funds will be released each Thursday afternoon.
(2) If Thursday falls on the last day of the month, funds will be released on Tuesday afternoon.
(3) If Thursday falls next to the last day of the month, funds will be released Wednesday aftemoon.
f. Unless specifically modified in the letter of authority, draw, request, or release transactions should be in even $1,000 units. Teletype message should show only $1,000 units, stated alphabetically, with the fund identified by use of code words as assigned below. For example, a request or draw for $30,000 NSLI (National Service Life Insurance) Fund should read thirty verbiculture."
g. Code words will be used in connection with correspondence pertaining to disbursing authority transactions for the following appropriation and funds:
Symbol Title Code Word
36X0120 Veterans Insurance and Indemnities Viminal
Appropriation, VA
36X4010 Veterans Reopened Insurance Fund:
a. Service-disabled standard insur. Stand
b. Service-disabled rated insur. Insrate
c. Non-Service disabled rated insur Nonser
36X4012 Service-Disabled Veterans Insur. Fund Sedate
36X8132 National Service Life Insur. Fund, VA Verbiculture
36X8150 U.S. Govt. Life Insur. Fund, VA Kins
[36X8455] Veterans Special Life Insur. Fund Vestige
8D.02 INVESTMENTS
a. The Controller will authorize the Secretary of the Treasury to either invest or redeem money for the insurance funds by telephone, followed by a letter of confirmation dated the same day. The Treasury Department, Bureau of Public Debt, will confirm the request action by returning either an SF [215, Deposit Ticket], for redemptions; BA 1081, Investment Authorization and Schedule of Withdrawals and Credits, for investments in public debt securities; or SF 1166a, Voucher and Schedule of Payments [(Memorandum),] for investments in other securities.
b. The Treasury Department will determine the type of security; public debt (bonds, notes, etc.), bank bonds, debentures, participation certificates, etc., to be issued, as well as their maturity date. The interest rate on public debt securities is determined by a formula mutually agreed upon between the VA and the Treasury Department for the trust funds (36X8132 and 36X8150); and by statute for the revolving funds (36X4009, 36X4010 and [36X8455]). The interest rate for investments other than public debt is determined by the terms of the security. The Treasury Department will also determine the particular investment to be redeemed, generally it is the investment closest to maturity with the lowest interest rate. However, the Treasury Department may, at any time, change the investment from one type to another by redeeming and subsequently reinvesting the funds.
c. The amount or investments are controlled by the VA through the General Ledger Investment accounts and related subsidiary records, VA Form 45808, Investment Ledger Card. The investment ledger card is maintained by fund type of investment and related interest rates. The date of maturity is also recorded on the VA Form 4_5808. No actual security document or certificate is issued by the Treasury Department or maintained by the VA other than the BA 1081 or SF 1166a.
d. Any premium or discount associated with an investment transaction will be accounted for separately at the time of purchase in the "Bond Premium and Discount Charges on Investments" account. At the time of redemption, the premium or discount will be accounted for separately through the "Bond Premium and Discount Income on Investments" account and reversed from the expense account.
e. Interest income will be accrued monthly by the VA. The actual number of days the money is invested is used in calculating interest due for public debt securities, and normally a 30day month is used for all other investments. Interest is actually collected on December 31 and June 30 each year for public debt securities and when called for on all other investments. normally every 6 months from the date of issue. When the interest is paid, [a BA 1081 or TFS 10812] is received for each fund to credit the VA with the interest earned, followed by a [TFS 1081-1] for each fund to invest the interest earned as well as securities maturing on the same date as noted in the following paragraph. The investments are always in multiples of $1,000. Odd amounts received in interest remain in the cash account until $1,000 is accumulated and will then be included with another investment transaction.
NOTE: As a courtesy, the Treasury Department furnishes the VA, as of December 31 and June 30, a [listing that] itemizes all public debt investments by fund, interest rate, type and principal balance and informs the VA the amount of interest to be paid each investment. This document serves as a verification of VA public debt investment records with the Treasury Department records.
f. Public debt securities mature on June 30 of the year specified at the time of issuance, all other securities mature as called for by the individual investment. When an investment matures, [a TFS 10812] is issued by the Treasury Department for the total interest and principal paid, followed by a [TFS 10811] for the investment of the funds in the same manner as described in subparagraph e above.
SECTION E. DOCUMENTATION
8E.01 GENERAL
a. The following paragraphs outline basic requirements with respect to the types of financial documents uscd most frequently by the Fiscal Division for transactions affecting insurance funds and the insurance appropriation. So that the general ledger account entries normally coded on such documents may be processed by the ADP system, input will have to be prepared for all transactions which are not processed automatically by the system.
b. A transaction type code has been assigned to all financial documents which are normally used as posting media to maintain the accounting system on ADP (see MP-6, pt. II, supp. No. 3.2, fig. 106.F1). The transaction type code applicable to each document is shown by each document title as--(Trans. Type 310, etc.)
8E.02 SF [215, DEPOSIT TICKET] (TRANS.TYPE 310)
a. SF [215, Deposit Ticket], will be used for all insurance collections deposited with Federal Reserve banks and branches thereof as well as other Federal depositaries.
b. SF [215] will be prepared and distributed in accordance with the instructions contained in MP-4, part I.
c. When copy 4 is rcceived in thc Accounting Section, it will be used as the media to process input to account for the collection by the ADP system. SF [215] rcceived in the Accounting Section for foreign collections will require additional input (VA Form 248401, Gold Flow/Statistical Information Input-Transaction Type 105) or (VA Form 24-8565, General Ledger Accounting/Gold Flow/Statistical Input-Transaction Type 105) to update the International Transaction (GoldFlow) master record. The VA Form 248401 (punched card) is used at the St. Paul office and the VA Form 24-8565 (OCR document) is used at the Philadelphia office.
[8E.03] VA FORM 29328, UNDERWRITING WORKSHEET
a. VA Form 29328 is uscd to establish the amount of converted insurance (USGLI only) revived upon termination of a total and permanent disability insurance award; included thereon are the amounts of loan, loan interest, lien and lien interest revived when applicable. It is also used to notify Finance that payments of total and permanent disability which are currently being made will be discontinued and held in abeyance at the request of the insured.
b. Two copies of thc VA Form 29328 will be received in the Accounting Section. One copy will be used to support the preparation of input to update the general ledger account master rccords and will be filed in the Accounting Section. The second copy will be forwarded as follows:
Actuarial Staff (299A)
[VA Regional Office and Insurance Center
Philadelphia, Pennsylvania]
c. When VA Form 29328 referring to an abeyance case is received the Accounting Section will prepare a memorandum identifying the case involved and forward it to the Operations [ ] Section so that the award payment records may be adjusted.
[8E.04] VAF 29-368D REPT OF STATUS/SETTLEMENT OF DEATH CLAIM (TRANS 351)
a. VA Form 29-368d will be generated by the ADP system for each policy in force at time of death and will contain identifying data by policy. When the "Settlement Information" is completed by the ADP system the entries necessary to adjust the affected general ledger accounts and to establish liability for the amount to be paid will be processed automatically by the ADP system.
b. Whenever it is necessary to correct, provide supplemental information or make off-tape payments, copy 3 of VA Form 29-368d will be received in the Accounting Section. The entries on this form will have to be analyzed to determine if any off-tape accounting must be accomplished or if input must be prepared to adjust the ADP award master records.
[8E.05] VA FORM 29-444, AWARD BRIEF & AUTHORIZATION FOR PMNT. OF INSUR.
a. VA Form 29-444 for all types of death insurance awards will be prepared by the Insurance Claims activity to authorize payments. The copy received in the Finance [ ] Division will be used to prepare the input documents necessary for processing payment on the ADP system. The amount paid on the basis of each VA Form 29-444 processed for a particular day will be includcd on the system generated SF 1166 (ADP) for that day.
b. If for any reason payment must be made outside the ADP system, the payment will be vouchered on a manually prepared SF 1166.
[8E.06] VA FORM 29-462, AUTHORIZATION FOR INSURANCE PAYMENTS
a. VA Form 29-462 for total disability and permanent and total disability awards will be prepared by the Insurance Claims activity to authorize payments. Based on the information as noted on the VA Form 29-462, input cards will be prepared and payment will be made automatically through the ADP systems. The amount paid on the basis of each VA Form 29-462 processed in a particular day will be included on the system generated SF 1166 (ADP) for that day.
b. Matured endowment awards will normally be processed for payment by the ADP system automatically. Four days before policy maturity date, the computer automatically completes all of the accounting transactions and establishes a pending award master record. Award input documents to effect payment will also be processed automatically at this time. VA Form 29462 for matured endowment awards will be prepared by the Insurance Claims activity for those cases that the system cannot process automatically. A copy will be forwarded to the Finance [ ] Division for use as the basis for preparation of input documents for system processing of the payment. The amount paid will be included on the system generated SF 1166 (ADP).
c. If for any reason payment of Disability Benefits or Matured Endowments must be made outside the ADP system, the payment will be vouchered on a manually prepared SF 1166.
[8E.07 OF] 1017G, JOURNAL VOUCHER (TRANS. TYPES 311, 331 AND 352)
[OF] 1017G will be used for the following purposes:
a. To document general ledger transactions when the entries cannot be made from basic documents and for adjustment of previous ledger entries. The form will be prepared in an original only, numbered consecutively beginning with the number "1" each fiscal year. The form will be signed by the Chief, Accounting Section. Each transaction will be adequately described and the form supported by working papers crossreferenced to documents or accounts when necessary for full clarification.
b. To document accruals and in transit transactions at the close of the month.
c. To document expenditure, [OF] transfer or adjustments between appropriation fund or receipt accounts which affect a single VA station. When [OF] 1017G is used to document such transactions, it will be treated in the same manner as SF's 1081 and 1097 for filing purposes. A complete description of the transaction will be made and the voucher will be clearly marked "EXPENDlTURE TRANSFER" or "ADJUSTMENT" to indicate the nature of the document. The [OF's] 1017G will not be submitted to the Treasury regional disbursing offices.
d. Whenever .a collection [OF] an overpaid death or disability award or an XC (death claims) dividend is made, analyzation of the accounts affected will be made on [OF] 1017G, which will be accumulated and on the last workday of each month will be forwarded to:
Acturial Staff (299A)
[VA Regional Office and Insurance Center
Philadelphia, Pennsylvania]
[8E.08] VAF 1033, INTER-OFF. TRANSFER VOUCHER (TRANS TYPES 312, 332, 353)
a. VA Forms 1033 will be used to effect transfers between stations of the following insurance items:
(1) Transfer of receivables.
(2) Transfer of charges and credits.
(3) Transfer of policy liens.
(4) Transfer of policy loans
(5) Transfer of dividend credits and deposits.
(6) Transfer of unapplied and unassociated collections.
(7) Transfer of undeliverable checks and payments due.
(8) Transfer of matured contracts payable.
(9) Transfer of undistributed insurance disbursements.
b. One series of numbers will be used for all VA Forms 1033. 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. Both forms will be completed by the receiving station and the duplicate will be returned to the issuing station. A cutoff of 5 workdays before the end of the month will be established by the releasing station. It is important that this cutoff be observed, since the accounting system is maintained on tape and the receiving station must have sufficient time to prepare intput into the system, so that the interoffice transactions may be recorded at both stations in the same month.
[8E.09] SF 1081, VOUCHER & SCHED. OF W/DRWLS & CRED (TRANS TYPE 313, 333)
a. SF 1081 will be used for the following insurance purposes:
(1) Intra agency transfers between different appropriation or fund accounts when two VA stations are affected.
(2) For trust funds 36X8132 and 36X8150 the letters "A/R" must be used with each Treasury fund symbol to denote an available receipt transaction.
(3) A complete description of the purpose of the transfer must be included with each SF 1081 prepared.
(4) The total charge or credit will be recorded in the summary block. Amounts which are combined to arrive at the totals will be listed in the space provided for details or shown on an attached supporting document.
(5) Accounting Section at the receiving station will use copy (5) which will be noted "Advance Copy" as the posting medium. However, when the transfer is made as of the end of the month it will not be posted in advance of that date.
(6) The advance copy of the SF 1081 will be used to prepare the input documents to accomplish the accounting on the ADP system.
b. The copies of the SF 1081 will be distributed as follows:
Copy Initial Distribution Final Distribution
(1) To regional disbursing After processing by Treasury
office. Division of Central Accounts
it is returned to Fiscal
activity here it will be
retained to support statement
of transactions.
(2) To regional disbursing Retained by Treasury Division
office. of Central Accounts.
(3) To regional disbursing Forwarded to office indicated in
office. the "Pay To" block by Treasury
Division of Central Accounts.
(4) Retain by Accounting Sect- Upon receipt of copy (1) this
ion in pending file used to copy may be disposed of in
prepare input to accomplish accordance with VA disposal
accounting on ADP system. bulletins.
(5) To receiving station. This Upon receipt of copy (3) this
copy will be noted"Advance copy may be disposed of in
Copy" and forwarded with accordance with VA disposal
necessary attachments, bulletins.
such as listing of
detailed items, etc.
[8E.10] SF 1097, VOUCHER & SCHEDULE TO CORRECT ERR (TRANS TYPES 314, 334)
a. Whenever a correction is necessary between disbursement or receipt accounts, the adjustment will be made by SF 1097 when another VA station is affected. Thc form will be completed in all respects including the symbols of all accounts involved and will contain all adequate explanation of the necessity for the adjustment.
b. When the adjustment involves an "Available Receipt" transaction the letters "A/R" will be shown by the appropriate symbols.
c. Copy 4 will be used to prepare the input documents to update the general ledger accounts on the ADP system and the SF 1097 will be distributed as follows:
Copy Initial Distribution Final Distribution
(1) To regional disbursing After processing by Treasury
office. Division of Central Accounts
it is returned to Fiscal
Activity where it will be
retained to support statement
of transactions.
(2) To regional disbursing RDO forwards to Division of
office. Central Account; where it
is retained.
(3) To regional disbursing Forwarded to office indicated
office. in the "Pay To" block by
Treasury Division of Central
Accounts.
(4) Retained by Accounting Sec- Upon receipt of copy (1), this
tion in pending file used copy may be disposed of in
to prepare input to accomp- accordance with VA disposal
lish accounting on ADP bulletins.
system.
[8E.11] SF 1098, SCHEDULE OF CANCELED CHECKS (TRANS. TYPE 335)
a. Whenever it is necessary to cancel an insurance check, SF 1098 will be uscd to effect the cancellation under the following conditions:
(1) TD Form 1664X, Returned Check Notice, was received advising that the check is on file in the Treasury disbursing office.
(2) The check was returned to the agent cashier and a decision is made that the check should be canceled at the time it is forwarded to the Treasury disbursing office.
b. Whenever it is feasible to do so, one SF 1098 will be used to schedule multiple cancellations for each type of insurance checks. Such cancellations will be scheduled at least once each day. Cancellation information for each individual check will be noted on the back of the related TD Form 1664X. The TD Form 1664X will be filed in the insurance folder or forwarded for filing in the XC-folder if the insurance folder is not maintained in the Insurance center.
c. When the check cancellation involves transactions for which the accounting will not be accomplished on the ADP system automatically, input documcnts will have to be prepared to update the general ledger master records.
d. The SF 1098 will be distributed as follows:
Copy Initial Distribution Final Distribution
(1) To regional disbursing Returned by regional disbursing
office. office with cancellation data
noted thereon. Filed in
Accounting Section as support for
statement of transactions.
(2) To regional disbursing Retained by regional disbursing
office. office.
(3) Retained in pending file, Upon receipt of copy (1) this
Accounting Section-used copy may be disposed of in
for preparation of input accordance with VA disposal
to accomplish accounting bulletins.
on the ADP system.
(4) a. Prepared by Operations [May be disposed of in
[] Section when initial, accordance with VA disposal
contingent or amended bulletins after control records
award is involved. are reconciled.]
b. Prepared by voucher [May be disposed of in accordance
audit for cash surrender, with VA disposal bulletins after
loan, dividend, and refund control records are reconciled.]
checks.
(5) Prepared by Operations May be disposed of in accordance
[] Section when ADP with VA disposal bulletins after
master record change controls are reconciled.
control records are
involved
[8E.12] SF 1151, NONEXPEND. TRANSFER AUTHORIZATION (TRANS TYPE 320, 340)
a. SF 1151, will be used to effect nonexpenditure transfers, authorized by law, between insurance or other funds.
b. The use of this form is restricted to the Office of the Controller, Central Office.
[8E.13] SF 1166A, VOUCHER & SCHEDULE OF PMNTS [(MEMO.)] (TRANS TYPE 341)
a. SF 1166a is used to document the investment of insurance funds by the Treasury Department. This form is used to invest funds in other than public debt securities.
b. The SF 1166a will be prepared by the Treasury Department and will be used as the media for the preparation of input documents to accomplish the accounting on the ADP system.
[8E.14] SF 1184, UNAVAILABLE CHECK CANCELLATION (TRANS. TYPE 336)
a. When information is received from a payee that insurance checks have not been received or have been lost and an over payment has resulted because of the issuance of such checks, SF 1184 will be prepared to cancel such checks. A separate SF 1184 will be prepared for each check.
b. When checks in payment of insurance have been issued subsequent to the death of the payee or when records indicate that checks issued on or about the date of death of the payee have not been negotiated, the procedures as outlined in MP-4, part IV, chapter 3 will be followed.
c. SF 1184 will be prepared and distributed as follows:
Copy Initial Distribution Final Distribution
(1) To regional disbursing To Treasurer of the United
office. States.
(2) To regional disbursing To Treasurer of the United
office. States.
(3) To regional disbursing To Treasurer of the United
office. States.
(4) To regional disbursing To Treasurer of the United
office. States.
(5) To regional disbursing Treasurer returns to regional
office. disbursing office.
(6) To regional disbursing Returned to initiating station.
office. This copy will be used to post
the collection of the receivable
previously established.
(7) To regional disbursing Retained by regional disbursing
office. office.
(8) Retain in pending file Upon receipt of copy (6) this
in Accounting Section. copy may be disposed of in
This copy will be used accordance with VA disposal
to establish the receiv- bulletins, except when an
able for proceeds due initial, contingent or amended
from U.S. Treasurer. award, insurance check is
involved. This copy will then be
forwarded to Actuarial Staff
(299A), [VA Regional Office and
Insurance Center, Philadelphia,
Pennsylvania.]
This 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 amended insurance check is involved the SF 1098 will be annotated to show that the account receivable previously established was reversed.
[8E.15] SF 1185, SCHED OF UNDEL CHECKS FOR CREDIT TO GOV (TRANS TYPE 337)
a. Insurance checks which remain undeliverable 5 months after the month of issue will be canceled by SF 1185.
b. SF 1185 will bc preparcd and distributed as follows
Copy Initial Distribution Final Distribution
(1) To regional disbursing Return by regional disbursing
office. office to initiating station.
Filed in Accounting Section to
support statement of transaction.
(2) To regional disbursing Retained by regional disbursing
office. office.
(3) Retained in Accounting Upon receipt of copy (1) this
Section. Used to prepare copy may be disposed of in
input to accomplish accordance with VA disposal
accounting on ADP system. bulletins.
(4) Retained in Accounting May be disposed after records
Section-Control Unit. are reconciled.
(5) Retained in Accounting Upon receipt of copy (1)
Section-Pending file. transcribe cancellation data and
forward to Insurance activity.
[8E.16] VA FORM 4-1410, REFERRAL OF INDEBTEDNESS OF COLLECTION
VA Form 41410 will be used to report uncollectible insurance indebtedness to the General Accounting Office as prescribed in MP-4, part I. This form will be used as the supporting document for the [OF] 1017G prepared to update the general ledger master record on the ADP systcm.
[8E.17] [SF 1166], VOUCHER AND SCHEDULE OF PAYMENTS (TRANS. TYPE 338)
a. [SF 1166] is a disbursement voucher as well as a schedule of payments. This form will be signed by a certifying officer attesting to the correctness and propriety of payrnent and will also be signed by a designated employee of the Accounting Section certifying as to the availability of funds for disbursements.
b. [SF 1166] (ADP) is automatically generated for insurance payments which are computed by the ADP system and for which cash voucher tapes are processed and forwarded to the regional disbursing office.
(1) The system generated [SF 1166] for insurance awards is dated by the ADP system. This date appears adjacent to the signature of the Authorized Certifying Officer and, by agreement with the Treasury Department, will be the date of the checks for all payments on such voucher. This date of certification should not be earlier than the latest due date included in the voucher.
(2) The system also generates a [SF 1166] for InsurancelnForce payments. By agreement with the Treasury, checks are mailed by close of business of the day following receipt of certified tapes, provided such tapes are received at the disbursing center before 3 p.m.
(3) As soon as the system generated [SF 1166] is verified for both awards and inforce payments the St. Paul, [VA Regional office and Insurance Center], will teletype certification to the U.S. Treasury Disbursing Center, Philadelphia, Pennsylvania (see fig. 8E.F1). The teletype transmission will be confirmed by simultaneously mailing properly certified [SF 1166], to the same office.
c. [SF 1166] will be manually prepared for all types of insurance payments which for various reasons must be paid outside the ADP system. The third copy of the [SF 1166] will be used to support the preparation of input documents upon which the accounting entries will be coded for processing by the ADP system. To facilitate accounting analysis in those cases where multiple entries are required, coding may also be indicated on the third copy of the [SF 1166]. The manually prepared schedules will show a prefix "I'' as part of the number assigned. However, the prefix will not be used on input documents. Such insurance schedules will be maintained in a separate file.
Copy Initial Distribution Final Distribution
(1) To regional disbursing Retained by regional disbursing
office. office.
(2) To regional disbursing Returned by regional disbursing
office. office and filed in Accounting
Section to support SF 224,
Statement of Transactions.
(3) Retained in Accounting Filed in Accounting Section.
Section. Used to prepare
input to accomplish accoun-
ting on ADP system.
(4) Retained in Accounting May be disposed of, after
Section as support for controlled items are reconciled,
controlled items. in accordance with VA disposal
bulletins.
[8E.18] VA FORM 291610, TRANSFER WORKSHEET (INTERFUND/INTRAFUND)
VA Form 29-1610 is provided for initiating transfer of funds from one insurance fund to another and to accomplish adjustments within the same fund. VA Form 291610 will be used to support the preparation of SF 1081 for transfers between funds and [OF] 1017G for adjustments within the same fund.
[8E.19] VAF [4-1622], LIST OF POSTING MEDIA & DISTRIB. (TRANS TYPE 315)
a. VA Form [41622] prepared by the Collections Unit for each deposit unit is received in the Accounting Section along with copies or SF [215, Deposit Ticket,] and will support the entries made in the general ledgers for undistributed insurance collections.
b. VA Form [4-1622] prepared by the Miscellaneous Accounts Unit will support the submission of unassociated remittances into the system.
c. VA Form [41622] prepared by the Manila region office will be used to support the posting to the undistributed collection account.
d. VA Form [41622] prepared by the Accounting Section will support the processing of miscellaneous receipts which are identified as collections to be applied as credit to an insured's account.
[8E.20] VA FORM [4-4564], TRANS. OF DISBURS. AUTH. (TRANS TYPES 316, 339)
a. VA Form [4-4564] will be used to transfer disbursing authotity for insurance funds between Central Office and the insurance offices. The VA [Form 4-4564] will be prepared in duplicate in accordance with the principles outlined in paragraph 8D.01. A separate series of numbers commencing with number "1" each fiscal year and prefixed by the station number will be assigned to the VA Form [4-4564] as the "Station Transfer No." The VA Form [4-4564] may be prepared to cover more than one fund, but draw and release actions may not be accomplished on the same form. The amount will be shown in the "1st Qtr. Available" column. For each amount shown, there will be inserted in the description column the phrase "INCREASE STATION CASH" or ''DECREASE STATION CASH", whichever is applicable as related to the station disbursing authority account.
b. The duplicate VA Form [4-4564] will be used to prepare the input documents to update the general leger accounts on the ADP system. The duplicate copy will then be filed in the Accounting Section of the initiating station. The original will be forwarded to the receiving station for preparation of input and filing.
c. VA Form [4-4564] pertinent to insurance funds will be mailed in a separate envelope which should contain no other forms, correspondence, or material. The envelope should show the notation "DO NOT OPEN IN MAIL ROOM-TRANSFER OF FUNDS'' and be addressed as follows:
Office of the Controller (047B1)
Veterans Administration Central Office
810 Vermont Avenue, NW.
Washington, D.C. 20420
NOTE: The "TO" block on VA Form [4-4564] will be completed to read "Office of Controller (047B1) VACO".
[8E.21] VA FORM 4579, RECEIVABLE TRANSACTIONS TALLY
a. A summary VA Form 4579 will be prepared as of the end of the month, summarizing the information on the individual VA Forms 4579, after such information has been verified with the subsidiary receivable records maintained off tape.
b. The VA Form 4579 will be forwarded promptly to the Accounting Section for verification with the general ledger control for offtape receivables. This form may be disposed of in accordance with VA disposal bulletins after reconciliation is completed. Memorandum/listing as required by paragraph 8J.02 will be filed in the Accounting Section to support receivable balance reported on trial balance.
[8E.22] SF 5515, DEBIT VOUCHER (TRANS. TYPE 317)
a. [SF 5515] will be used by depositaries to charge the accounts of the U.S. Treasurer for uncollectible items and collection charges for processing foreign remittances.
b. The original and duplicate copies will be retained by the depositaries. The triplicate and quadruplicate copies together with the uncollectible item will be forwarded to the depositing station. When the copies of the debit voucher are received in the Accounting Section, the General ledger accounts will be adjusted.
[8E.23] VA FORM 9-5700, MONTHLY SUMMARY OF DEDUCTIONS FROM BENEFIT PMNTS.
a. VA Form 95700 will be used in reporting deductions, for premiums and other insurance purposes, made from benefits due the insured.
b. All deductions withheld for insurance purposes will be initially deposited to the NSLI Fund (V) as undistributed. The application of the undistributed amounts from the NSLI fund to the proper funds is accomplished by the ADP system.
c. The VA Form 9-5700 will be used as a supporting document for the preparation of SF 1081 to accomplish the transfer between funds.
Figure 8E.F1. Teletype Certification for St. Paul Insurance
SECTION F. SUBSIDIARY ACCOUNTS AND CONTROL RECORDS
8F.01 GENERAL
a. Instructions outlined in this chapter govern the verification control and reconciliation of the basic subsidiary accounts and related control records by the Finance [ ] Division. The verification, control and reconciliation of these general ledger accounts is of the utmost importance, since they are the basis from which comprehensive financial statements are prepared.
b. Subsidiary accounts of records provide a further breakdown of amounts reflected in the related control accounts of the general ledger. The subsidiary records are comprised of individual cards or tape records which show the current status of individual accounts.
c. The Finance [ ] Division is responsible for the maintenance of control records. All open items from the control listings or pending accounting documents must be reconciled with the control at any convenient time during the month, so as not to interfere with heavy endof month workload. At the end of the month, the control ledger must be reconciled with applicable general ledger accounts. Reconciliation documentation should be retained until audit by [Inspector General, Office of Audit], and then disposed of in accordance with VA disposal bulletins.
d. Postings to the general ledger accounts and the related control records should be synchronized in order to facilitate the required reconciliations.
8F.02 REQUIRED VERIFICATION
The following general ledger accounts and subsidiary records will be verified:
Account Number Description Subsidiary Records
8_1142.00 series Policy Loans Loan segment of the InForce ADP,
(ADP master
01, 02, 03, 04) record.
8_1215.00 series Receivables-Off Tape Individual Accounts Receivable
Record VA Form
[41103], maintained by the
Operations [ ] Section.
8_1216.00 Receivables-Proceeds Copy (8) of SF 1184 retained in
due from pending file
Treasury for in accounting section.
unavailable canceled
checks
811224.00 Receivable-Shortages-all Control ledger maintained in
ot Accounting Section.
ments and deductions
8_1227.00 series Receivables (ADP) Withholding segment of the
Insurance awards, ADP. master
record.
8_1271.00 series Policy Liens Lien segment of the InForce,
(ADP ADP,
05, 06, 07, 08) master record.
841272.00 series Policy Liens (Sec. 304) Individual Lien Record Card, VA
Form 291696,
maintained by the Insurance
Division.
841273.00 series Policy Liens-lnterest Individual Lien Record Card, VA
Due (Sec. 304) Form 291696, maintained by the
Insurance Division.
...... ...... ......
Account Number Description Subsidiary Records
851274.00 series Policy Liens (Secs. 305 Individual Lien Record Card, VA
and 306) Form 29-1696, maintained by the
Insurance Division
8_1275.00 Policy Liens-Off Tape Individual Lien Record Card, VA
Form 29-1696, maintained by the
Insurance Division
8_2025.00 and Undelivered Checks and Liability control tape in the
Analytical Payment Due In-Force, ADP, system.
Account 8_2025.10
(ADP 09)
8_2032.00 Dividend Credits and Dividend credit and dividend
series(ADP 10, Deposits deposit segments of the
11, 12) In-Force, ADP, master record.
812034.00 Payables-Overages Control ledger maintained in
allotments and Accounting Section.
deductions
8_ 2063.00(ADP Matured Contracts Pending master record (original
13) Payable-On Tape Award Category) in the Insurance
Awards, ADP, system.
8_2064.00 Unapplied Collections Pending transaction tape in the
series(ADP 14, In-Force, ADP, system.
15, 16, 17)
8_2065.00 Unassociated Individual Unassociated
series(ADP 18, Collections Transactions Control Card, VA
19, 20) Form 29-1675, maintained in the
Insurance Division.
8_2066.00 Matured Contracts Individual Report of Status for
Payable-Off Tape Settlement of Death Claims, VA
Form 29-368-d; Schedule of
Canceled Checks, SF 1098; and
delete Insurance Award Record
Print Out, VA Form [4-456];
maintained in the Accounting
Section.
8_3569.00(ADP 38) Undistributed Insurance Undistributed Insurance
Collections Collections Control Ledger
maintained in the Accounting
Section.
8_3571.00(ADP 39) Miscellaneous Miscellaneous Transaction
Transaction Control Control On Tape.
8_4501.00 Master Record Change Master Record Change Control
Control Ledger maintained in the
Accounting Section.
...... ...... ......
Account Number Description Subsidiary Records
8_4600.00 Undistributed Award Report from run 251 and system
Disbursements generated VA Form SF 1166, both
from the Insurance Awards, ADP,
system maintained in the
Accounting Section.
8_4602.00 Undistributed Award Report from run 251 (Journals
Repayments List) Insurance Award, ADP,
(Disbursement system maintained in the
Adjustment) Accounting Section.
8_4669.00 (ADP Undistributed Insurance Report from run 155 and system
52) Disbursements generated VA Form SF 1166, both
from the In-Force, ADP, system
maintained in the Accounting
Section.
...... ...... ......
NOTE: The ADP account number is shown in parentheses below the general ledger account number when applicable.
SECTION G. INSURANCE AWARDS ADP SYSTEM CONTROLS
8G.01 GENERAL
a. The purpose of this section is to outline the internal and external controls, and procedures used in the Insurance Awards ADP system. The controls are provided to make certain that system generated as well as clerical transactions which affect the award master records remain under control until processing is completed and the required accounting is accomplished.
b. Certain accounting transactions are controlled by the use of contra or holding accounts. Depending on the posting sequence these transactions remain incomplete after the initial posting until the final entry is made either by the system or off-tape. Transactions which affect the following accounts are controlled:
8_1227 series Receivables-ADP
8_4501 Master Record Change Control
8_4600 Undistributed Award Disbursements
8_4602 Undistributed Award Repayments
(Disbursement Adjustments)
c. All input to the award system must be assigned a batch code consisting of two characters; the first will be either alphabetic or numeric (digits zero and one, and alphabetics I and O will not be used because of their similarity) and the second must be alphabetic. Batchs will consist of approximately 50 items. Below is a table of the letters used in the units position of the batch code assigned to each office which are controlled by the Operations and Input Section and the purpose for which the code is used. A complete list of batch codes may be fount in MP6, part III, supplement No. 4.5.
Units Position of Batch Purpose
Code
Phila. St. Paul
A* J* Clerical insert or delete control.
B* K* Other accounting control documents.
C L Change of address (includes other input
for same file number).
H Q VA Forms 29-444 and 29-462.
...... ...... ......
*Controlled batch code.
NOTE: Authorized or control documents must accompany the input for controlled batches to the individual responsible for assigning the batch code to verify that the proper supervisors have authorized the related action. The control documents are then forwarded to the Accounting Section.
d. File maintenance input with any of the following transaction types, together with other related input, must be assigned controlled batch codes:
Type of Record Insert Delete Other
Award Pending Master Record (APMR) 200 291 263
201 292 251 281
202 293 282
203 283
262
Type of Record Insert Delete Other
Award Master Record (AMR) 300 393 323
301 353
302
303
AMR Optional Segment: TDIP 304 394 324
: Withholding 305 395 325
355
365
385
"V"-Paid-up Addition 306 366
"K"-T&P Abeyance 306 366
NOTE: TT 281 to change date of death; batch code must be DB-Philadelphia, DK-St. Paul.
TT 282 and 283 when used to process a controlled item must have a special batch code assigned.
e. The Operations and Input Section forwards the input cards for controlled batches to the data processing center. The control documents are forwarded to the Accounting Section for subsequent clearance via the Controlled Transaction Listing and for review of proper authorization. Input which does not have a controlled batch code is assembled and sent to the DPC where batch codes are assigned. System generated inserts and deletes are controlled by the use of the General Ledger Transactions List.
f. Rejected file maintenance input which has been corrected and is being reintroduced into the Awards system must retain the original batch code so the control document can be located. This type of input is routed direct to the DPC for proccessing.
g. When the Accounting Section discovers that a controlled item cannot be cleared because the input was erroneously processed, a memorandum with complete identifying information noted thereon will be prepared and sent to the operating element responsible for the corrective action. The control documents will be noted and a copy of the memorandum will be retained until the item is cleared, then disposed of in accordance with VA disposal bulletins.
h. Computer runs used in the Awards system to accomplish the processing described in this Section are as follows. Detailed description of each run may be found in MP6, part III, supplement No. 4.1:
Run 240 Daily Updating
Run 250 Processing and Dispersal
Run 251 General Ledger and Report
Run 254 Print (Controlled Transaction List)
Run 270 Monthly Reconciliation and Multipurpose
8G.02 MASTER RECORD CHANGE CONTROL LEDGER, G. L. ACCOUNT 8_4501.00
a. A Master Record Change Control Ledger will be maintained by the Accounting Section for each Insurance Fund and the Appropriation. The purpose of these ledgers is to make sure that changes involving payment or receipt transactions which orginate outside the ADP system are properly controlled. This ledger will also control accounting transactions which are not completely processed by the ADP system but which require off-tape posting to complete the transaction. This control involves the following types of actions:
(1) Changes to Matured Contracts Payable which are processed after the Award Pending Master Record has been established, such as supplemental dividend payments, miscellaneous credits, repayment of amounts due, etc.
(2) Voucher cancellation of cash disbursements (SF 1098).
(3) Those which are automatically processed by thc Awards system, such as the insertion of a withholding segment for accounts receivable action.
b. The control ledger will contain the following columnar headings:
(1) PDN (processing day number).
(2) Date of Entry
(3) Reference Number.
(4) Run 251 Debits.
(5) Run 251 Crcdits.
(6) 0ther Debits.
(7) Other Credits.
(8) Balance.
c. Control of master record changes processed by the system is initially established in the control ledger from the general ledger and Daily Processing Report and posted as run 251 debits and credits.
d. Control of master record changes originating outside the system is established in the control ledger from the following documents.
(1) VA Form 29-368d, OF 1017g, and SF 1098 which are received from the Operations and Input Section. The SF 1098's, Scbedule of Cancelled Checks, are maintained by PDN in a pending file. The other forms are maintained by terminal digit in the pending file. The pending documents are subsequently cleared by matching them to the related transactions on the Controlled Transaction List. The amount of each entry will be verified and the individual entries on both the control documents and the Generel Ledger Controlled Transaction List stamped "POSTED PDN_____". When all items on the control documents have been cleared and stamped posted, the document is filed in a "Processed" file for use in the monthly reconciliation of the MRC general ledger account.
(2) At the time the reconciliation between the control document and the control ledgers is made, any unposted items on the various control documents which are more than 30 days old are listed and forwarded with a covering memorandum to the operating element responsible for corrective action.
8G.03 UNDISTRIB. AWARD REPMNTS-(DISBURSE. ADJUST.) GL ACCT 8_4602.00
a. The Accounting Section will maintain control over cash repayments which should be applied to the on-tape receivable account series (8_1227.00) but remain undistributed at the time financial reports are prepared.
b. Upon receipt of the VA Form 4-1027, Field Service ReceiptGeneral, in the Operations and Input Section, appropriate input will be prepared and introduced into the awards system. When the input is processed, the system will debit 8_4602.00 and credit 8_1227.20.
c. When the Accounting Section posts the SF 215, account 8_4602.00 will be cleared and the required accounting entries completed.
d. After posting, the Accounting Section will retain the SF [215] and the related VA Form 4-1027 in a pending file. The Controlled Transactions List will be examined to assure the input to the awards system has been processed. The related documents and the control report will be annotated "POSTED PDN__________." The documents will then be filed in the appropriate completed document files.
c. If the SF [215] has not been cleared in 10 days the Operations [ ] Section will be notified to initiate immediate follow-up action.
8G.04 MONTHLY RECONCILIATION OF ONTAPE CONTROLLED ACCOUNTS
a. Summary control records are maintained on the system for Matured Contracts Payable-On Tape and Accounts Receivable-On Tape withholding codes 01 through 10 and 17, 18, 19. Increases and decreases are accumulated and the balance is updated on a daily basis. The monthly reconciliation and processing run accumulates the related balances for these accounts on each individual master and pending master record and reconciles the accumulated totals with the summary control records. If the totals do not reconcile an outofbalance condition is generated for corrective action. A memorandum is prepared and forwarded to the operating element concerned when adjustments to master records are necessary because of an outofbalance condition.
b. If it is found that all outofbalance was caused by the system, a letter should be sent to the Director, DPC outlining the details related to the condition and should be accompanied by as much documentation as possible to assist in clarifying the condition.
8G.05 UNDISTRIBUTED AWARD DISBURSEMENTS, G. L. ACCOUNT 8_4600.00
a. The purpose of this account is to assure that payments computed by the Insurance Awards ADP system are charged to the various expense accounts; the "frozen foreign accounts" are properly controlled; and that the accumulated totals of all charges agree with the totals credited to the disbursing authority accounts. This control account is credited only by transactions automatically processed within the Insurance Awards ADP system. As each award payment is computed the ADP system automatically debits the appropriate expense account and credits this control account. The debit and credit totals accumulated in the insurance awards system's daily processing run are automatically introduced into Insurance General Ledgers ADP system (GLEGS/GLUD).
b. The Accounting Section receives the certified system generated VA Form [SF 1166] Voucher and Schedule of Payments, described in paragraph [8E.17] of this chapter. The totals shown on the schedule as credits to the disbursing authority accounts are verified with control accounts totals in the Insurance Awards ADP system's accounting report ([ ] run 251 report). If the totals are in agreement, input is prepared and introduced into the Insurance General Ledgers ADP system to debit general ledger accounts 8_4600.00 and credit the disbursing authority accounts. If not in agreement, the differences must be resolved immediately and before the disbursing tape is forwarded to the Treasury Department's Regional Disbursing Officer.
c. The Insurance Awards ADP system is designed to generate and pay all "frozen foreign" accounts on the last processing day of the month only. This control account is credited with the amount of payment for each award. Therefore, there will be a difference in the processing run totals credited to this account and shown on [ ] run 251, General Ledger Journals List and the schedule of disbursements, [SF 1166.] The differences must agree with the detailed listing of "frozen foreign" accounts prepare from the system generated output. If the differences on the journals list agree with the totals of the list of frozen foreign accounts an [OF 1017G, "Journal Voucher" is prepared to transfer the money from the fund to liability account 2025.10.]
d. At the end [of] each month [,] this account is included among other similar accounts on the "Zero Balance Account Report." All funds and the T&I appropriation balances must be zero.
SECTION H. IN-FORCE INSURANCE ADP SYSTEM CONTROLS
8H.01 GENERAL
a. The InForce Insurance system contains the records for all Government life insurance policies that have not matured. The records in this system are maintained and updated by the Insurance Division. Detailed descriptions of this system and the records maintenance procedures are outlined in the MP-6, part II, and the M293 manual series.
b. The purpose of this section is to outline the internal and external controls, and describe the ADP control procedures applicable to the inforce system.
c. Certain file maintenance transactions are controlled either by initial postings outside the system from various accounting documents or by system generated output created for making offsetting entries outside the inforce system. The particular types of controlled input are discussed in detail in the following paragraphs. The following accounts which have controlled input are discussed in this section and in section I:
General Ledger ADP Account
Account Number Account Title Number
8_1142.00 Policy Loans-Basic Account 01
8_1271.00 Policy Liens-Basic Account 05
8_2025.10 Undelivered Checks and Payments Due- 09
ADP Intersystem Transfers
8_2032.00 Dividend Credits and Deposits-Basic Acct 10
8_2063.00 Matured Contracts Payable-On Tape 13
8_2064.00 Unapplied Collections-Basic Account 14
8_2065.00 Unassociated Collections 18, 19, 20
series
8_2247.00 Accountability 21
8_3569.00 Undistributed Insurance Collections 38
8_3571.00 Miscellaneous Transaction Control 39
8_4217.00 Waivers-Premiums-Reimbursable 59
8_4639.00 Face Amount-Unpaed Matured Contracts and 51
Transferred Accounts
8_4669.00 Undistributed Insurance Disbursements 52
d. File maintenance transaction input documents with accounting entries for ADP accounts 01, 05, 10, and 52, together with related input, are routed to the Finance Division with appropriate control documents or listings. The Accounting Section assigns B batch control codes to the input and the control documents or listings. The input is then forwarded to the DPC for processing. Input with accounting entries to ADP account 13, MCP-On Tape, will always have B batch control codes, XB (clerical) and CB (system generated) and will be routed directly to the DPC. Input with accounting entries to ADP account 38, UIC, will have a K batch control code assigned by the Collections Section, and be routed to the DPC. Input inserting a refund on the pending transition tape and input with accounting entries for ADP accounts 09, 14, and certain transactions using ADP account 21, are routed to the Voucher Audit Section. These items are reviewed, special control batch codes are assigned, and the input is forwarded to the DPC. Input using ADP accounts 18 and 20 is prepared and assigned special batch codes by Miscellaneous Accounts, Insurance Division and forwarded to the DPC for processing. All other input is forwarded directly to the DPC by the operating element.
e. Rejected file maintenance input which has been corrected and is being reintroduced into the inforce system will retain the original batch code. This input is routed directly to the DPC by the operating element concerned.
f. The following paragraphs describe the various ADP control ledgers to be maintained by the Accounting Section. The columnar headings shown are the normal headings needed for the control ledgers. They may be varied and arranged to meet local needs.
g. Computer runs used in the in-force system to accomplish the processing discussed in this section follows. Detail description of each run may be founnd in MP-6, part II, supplement No. 1.2.
Run 070-(To provide assistance in reconciling on-tape controls.)
Run 130-Edit Merge
Run 140-Daily Update
Run 150-Daily Dispersal Liability and MTC Accounting
Run 155-Reports and Controls
Run 160-Deduction Reconciliation
Run 170-Deduction Accounting
Run 700-MultiPurpose Run
Run 820-Miscellaneous Transaction Control
Run GLEGS/GLUD-Accounting Runs
8H.02 UNDISTRIB COLLECTION CNTL LEDGER, GL ACCT 8_3569.00 (ADP ACCT 38)
a. UIC (undistributed insurance collections) control ledgers are maintained by the Accounting Section for each fund and the appropriation The purpose of the ledgers is to insure that all cash collection transactions are controlled and proper accounting accomplished. Transactions which are involved in this control are resubmitted unassociated collections, interoffice credits for direct payments that have been deposited by the transferring office, direct remittance payments, and their related uncollectible check (debit) items. UIC control ledgers for in-service allotment and DFB (deductions from VA benefits) are covered separately in section F.
b. The UIC control ledger should contain the following columnar headings:
(1) Unit Number (if desired)
(2) Batch Number (if desired)
(3) Processing Day Number
(4) Date of Entry
(5) Reference Number
(6) VA Form [4-1622] CR.1
(7) Run 155 Report DR.
(8) Run 155 Report CR.
(9) Uncollectible Remittance Control Listing, DR.2
(10) Other, DR.
(11) Other, CR.
(12) Balance
___________________
1If desired, a column entitled "Run 132B CR." may be used when the direct deposit totals line of the report agrees with the SF [215, Deposit Ticket]. Otherwise, a VA Form [4-1622], Transmittal List of Posting Media and Report of Distribution, should be prepared to accompany the run 132B report.
2 This listing replaces VA Form 9-1639, Recapitulation Sheet of VA Form 9-348.
c. The direct remittance control is initially established in the UIC ledger from VA Form [4-1622], received from the Collections Section. Money totals are posted as a "Credit" and the VA Form [4-1622] filed in a pending file by processing day number. Totals for resubmitted unassociated collection items are posted to the UIC ledger as "other credits" from a VA Form [4-1622] received from Collections and Cashier Section, Finance [ ] Division.
d. The General Ledger Totals Journal List is received from the DPC. The debit totals to general ledger account 8_3569.00 series are posted to the UIC control ledger and must be reconciled with the credit totals posted to the UIC control ledger from the VA Form [4-1622] for the respective processing day number. The VA Form [4-1622] should, if in agreement, be annotated "POSTED PDN_____" and placed in the processed file.
e. Uncollectible check (debit) control is initially established in the UIC control ledgers from the Uncollectible Remittance Control Listings received from the Collections Section. Money totals are posted as debits and the URCL's (Uncollectible Remittance Control Listings) are filed in a pending file by K batch code. (The K batch codes are assigned by the Collections Section to the uncollectible transactions when they are initially introduced into the inforce system.) If the original transaction is not processed automatically by the system, clerical input required to process the action must carry the K batch code originally assigned. When the GL/TL (General Ledger Transaction List) is received in the Accounting Section it will contain among other items debit transactions (system generated or clerically prepared input) showing a credit entry to 8_3569.00. Each of these transactions will be checked against the related items on the Uncollectible Remittance Control Listings in the pending K batch file. The GL/TL will be annotated "Posted PDN__." An annotation will be made on the URCL to show the items that have been cleared and the processing day number. The balance of the items should remain open on the URCL for subsequent clearance or necessary follow-up.
f. When the monthly reconciliation is made all open uncollectible items on the URCL listings that are more than 30 days old (based on the processing day number of the URCL listing) should be listed and forwarded with covering memorandum to the appropriate Insurance Accounts activity for corrective action.
8H.03 UNDISTRIB DISBURSE CNTL LEDGER, GL ACCT 8_4669.00 (ADP ACCT 52)
a. A UID (undistributed insurance disbursements) control ledger is maintained in the Accounting Section for each fund and the appropriation. The purpose of the control ledgers is to insure that all cash disbursements which affect the master records tape file have the proper accounting accomplished. The control ledgers will generally contain the following columnar headings:
(1) Batch Contol Code
(2) Processing Day Number
(3) Date of Entry
(4) Reference Number
(5) [SF 1166] DR.
(6) Run l 55 Report General Ledgcr Account 8_4669.00 DR.
(7) Run 155 Report General Ledger Account 8_4669.00 CR.
(8) Other, DR.
(9) Other, CR.
(10) Balance
b. The control ledgers involve the following types of transactions:
(1) Automatic Disbursements processed by the in-force system.
(2) Disbursements processed outside the in-force system.
(3) Voucher cancellations of cash disbursements.
c. Control of cash disbursements made automatically within the system is initially established in the control ledgers from the General Ledger Accounts Controls report by posting the totals of general ledger account 8_4669.00 to the UID ledger. The totals shown on the sysem generated [SF 1166] (ADP), Voucher and Schedule of Payments are posted to the UID ledgers as debits. The difference between the credits to account 8_4669.00 and the totals on the [SF 1166] (ADP) represent the amount processed outside the system.
d. Control of cash disbursements originating outside the inforce system is initially established in the UID Control ledgers from [SF 1166] received from the Voucher Audit Section by posting the totals as "[SF 1166] Debits." All input receivcd with the [SF 1166] is assigned B or S batches and released to the DPC. The [SF 1166] is annotated with the assigned batch code and filed in a pending file in batch code order.
e. Control of all disbursements which are canceled is initially established in the UID control ledgers from SF 1098 Schedule of Canceled Checks. The amount shown as a credit to the UID account on SF 1098 is posted to the control ledgers as ''Other Credits." The input received and thc SF 1098 are assigned B or S batch code. The input is forwarded to the DPC and the SF 1098 is filed in a pending file by batch code.
f. The GL/TL (General Ledger Transaction List) is received daily and contains the identification of each transaction which has an entry to the ADP account 52 (UID). Each of these transactions will be verified with the amount on the proper control document and both the control document and the GL/TL will be annotated "Posted PDN__." When all the items on the control document have been cleared, the document will be filed in a processed file.
g. When the monthly reconciliation is made, unposted items on the various control documents which are more than 30 days old (based on the control document date and the reconciliation date) are listed and forwarded with a covering memorandum to the appropriate Insurance Accounts Section for corrective action.
8H.04 UNASSOC CNTL LDGR, GL ACCT 8_2065.00 SERIES (ADP ACCTS 18 19 20)
a. The Accounting Section will establish and maintain a control ledger for each Fund and the Appropriation for unassociated transactions. These unassociated items will consist of collections, inservice allotment payments, and deduction from VA benefit payments which are not associated with a master record in the daily ADP processing and pending transactions in excess of 10 for a single record. (Allotment and DFB transactions are applicable to the Philadelphia [VA Regional Office and Insurance Center] only.)
(1) Unassociated transactions will be controlled and maintained in a punched card file using VA Form 291675, Unassociated Transaction Control Card. The control file will be maintained in alphabetical order. A VA Form 291675a, Unassociated Transaction Work Card, will be used for searching, associating and identifying insurance records either on or off the system.
(2) Pending transaction in excess of 10 will be maintained by a file number digit control and identified as "Excess of Ten Pendings."
b. Flow charts for DPC processing of unassociated transactions are contained in MP-6, part II, supplement No. 1.2, chapter 1 (figs. 101.F5 and 101.F32[b] through 101.F32[i]).
c. The unassociated collections control ledger will generally contain the following columnar headings:
(1) Processing Day Number
(2) Date of Entry
(3) Reference Number
(4) Run 155 File Maintenance Debits (8_2065.90)
(5) Run 155 Cash Debits (8_2065.20)
(6) Run 155 Cash Credits (8_2065.20)
(7) Run 155 Excess of Ten (8_2065.30) Credit
(8) Other Debits (8_2065.30, etc.)1
(9) Other Credits (8_2065.90, etc.)
(10) Balance
_________________
1When ADP account 18 is used on transaction type 008 (see below).
d. Each processing day the Accounting Section receives the General Ledger Accounts Control report. The totals in the 8_2065.00 series of accounts will be posted to the control ledger.
e. When unassociated transactions are associated with certain underwriting actions such as RH application, it is sometimes necessary that an interfund transfer be made. Transaction type 008 will be used by the Insurance Division to insert the money on tape by debiting ADP account 18(8_2065.20) for the fund in which the money was deposited and crediting ADP account 15 (8_2064.20) for the fund in which it is to be applied. The unassociated transaction control card is disposed of under batch code "G" by Miscellaneous Accounts Insurance Division. The system will imprint the debit to ADP account 18 on the GL/TL for control purposes.
f. For each processing day the Accounting Section receives from the DPC the "nohit" unassociated transactions (ALPHA listing) and an excess of 10 listings. The money totals on these lists must be reconciled with the postings for the related processing day number which have been made to the control ledger. The ALPHA listing received in Philadelphia also contains allotment/DFB transations which will be controlled by item count only. Money controls for allotment/DFB will be maintained on the "Allotment DFB" control tapes covered in section K.
g. Normally unassociated collection items will be converted to collection transactions and reintroduced into the inforce system. The Accounting Section will receive from the Miscellaneous Accounts and Service Unit, Insurance Division, an ALPHA list entitled, "Reinserting Unassociated Transactions Via UIC Collections Format," to transfer the totals from unassociated to undistributed collections. [OF 1017G] Journal Voucher will be prepared. The totals on the [OF 1017G] will be posted as "Other Debits" in the control ledger. The original of [OF 1017G] will be forwarded to the General Ledger Unit for further processing and preparation of input for postings by the general ledger systcm (GLEGS/GLUD).
h. Unassociated transactions which must be posted to the premium record card will be ALPHA listed. The Accounting Section will receive from the Miscellaneous Accounts and Service Unit, Insurance Division, a copy of this list entitled "Unassociated Transactions Posted to Premium." [OF 1017G] will be prepared to transfer the totals from unassociated collections to premiums. Thc [OF 1017G] will be posted as "Other Debits" in the control ledger. The original of [OF 1017G] will be forwarded to the General Ledger Unit for further proccssing and preparation of input for posting by the general ledger system (GLEGS/GLUD).
i. Unassociated items which have been identified as payments belonging to another insurance office are handled as follows:
(1) Transferring Office. The unassociated items will be processed by the DPC and listed. The listing of items to be transferred is forwarded to the Accounting Section where an administratirc voucher number in the 01 series is assigned and VA Form 1033, Interoffice Transfer Voucher, is prepared. A debit posting is made to the control ledger. I'he original and two copies of VA Form 1033 are forwarded to the General Ledger Unit for additional processing.
(2) Receiving Office
(a) After posting to thc general ledger accounts, copy two of VA Form 1033; VA Forms 291675 Unassociated Transaction Control Card, and VA Forms 291675a, Unassociated Transaction Work Card, with attachments; and copies 3 and 4 of the transfer listing are forwarded to the activity maintaining the unassociated control ledger.
(b) The activity maintaining the unassociated control ledgers will prepare transmittal sheets in duplicate. VA Form 291675 and the original transmittal sheet will be forwarded to the DPC for processing. A copy of the transmittal will be maintained in the pending file with all other related material.
(c) Upon receipt of the new VA Forms 291675 and listing, the totals will be verified with copy 2 of the VA Form 1033. Post to the control ledger.
(d) The original VA Form 29-1675 "transferredin" will be filed in the unassociated balance adjustment file in the DPC. Forward the unassociated items with copy 3 of the transfer listing to Miscellaneous Accounts, Insurance Division.
j. The Accounting Section will receive VA Form 9348, Debit Slip-Uncollectible Remittance, for unassociated remittances and forward them with any attachments to the Miscellaneous Accounts, Insurance Division for their action.
(1) The Miscellaneous Accounts activity will process the debit slips and return them to the Accounting Section with the original of the disposal list headed "UIC Debit Item-Unassociated Collections."
(2) The Accounting Section activity maintaining the unassociated control ledgers will prepare OF 1017g and post it to both the unassociated and UIC control ledgers and forward the original OF 1017g to the General Ledger Unit for further processing. File the duplicate OF 1017g and the disposal list for monthly reconciliation.
k. Clerical input is generally prepared to process excess of 10 pending transactions in the daily file maintenance runs. It may also be necessary to process certain collection transactions by the preparation of clerical input. Separate control lists with "S" or "B" batch codes assigned will be prepared for excess of ten pending transactions and items under "ALPHA" control. The lists will be forwarded to the Accounting Section but will not be posted to the summary control ledgers. The control list will be filed in a "Pending" file by batch code. When the General Ledger Totals Journal List is received the debit totals to account 8_2065.90 will be posted to the Control Ledger in the "Run 155 File Maintenance" column.
l. Whenever there are excess of ten or other similar off-tape money transactions to be processed for an account that is not on the ADP system, the insurance policy account will be reviewed to determine the proper status of the account. The status of the account and the manner in which the transaction affects the policy will govern the disposition to be made of the monetary transaction. When proper disposition is determined, appropriate vouchering action will be taken. The voucher and control listing (if required) will be forwarded to the Accounting Section for further processing.
m. A GL/TL (General Ledger Transaction List) is also received daily from the DPC. Each transaction on this list which shows a debit entry to ADP account 20 (G. L. account 8_2065.90) will be checked against the control lists in the pending file. The amount in the transaction processed will be verified with the amount on the control document. If in agreement, both the control document and the GL/TL will be annotated "Posted PDN_______". When all the items on the control document have been cleared, the document will be filed in a processed file.
n. When the money reconciliation is made, unposted items on the various control documents which are more than 30 days old (based on the control document date and the reconciliation date) are listed and forwarded with a covering memorandum to the appropriate Insurance Accounts Section for corrective action.
8H.05 UNDELIV CHECKS/PMNTS DUE-ADP TRX GL ACCT 8_2025.10 (ADP ACCT 09)
a. Account 8_2025.10 controls the transfer of liabilities between the daily processing run and the daily dispersal, liability and NTC (miscellaneous transaction control) accounting run. This run, among other actions, inserts and/or deletes records from the Liability Master Record Tape File by processing liability transactions from the daily processing run; increases and decreases the liability tape summary control balances; generates transactions to update the liability account 8_2025.00; and produce the necessary accounting input tape for the general ledger system (GLEGS/GLUD).
b. Instructions covering the preparation of input for processing liability transactions in the in-force system are outlined in MP6, part II, supplement No. 2.1, section 128.00. Instructions for processing returned checks from the awards system are outlined in MP-4, part IV and MP-6, part III.
c. The most common types of actions which affect this control account are:
(1) Computer generated disbursements automatically credit this account when a cash disbursement is being processed and the master record indicates returned mail or pending disbursement. The credit entry is automatically cleared when the generated data is inserted on the liability master control tape.
(2) The proceeds of undeliverable checks which are not remailed within 5 months are deposited into the fund from which they were disbursed and the liabilities established. The credit entry to the intersystem control account manually recorded from the related accounting document is cleared by the debit entry generated when the liability record is inserted automatically on the liability master control tape.
(3) Miscellaneous payments due insurance award beneficiaries which cannot be paid for various reasons, such as no claims received, lack of a good address, etc. These miscellaneous payments remain due after the face amount of the policy has been paid. The award liabilities established for these payments will not be automatically generated or disbursed by the system.
(4) If a liability item is to be transferred to an offset account, file maintenance input must be prepared to delete the record from the liability master control tape. The debit entry to the intersystem control account manually recorded from the related accounting source document (OF 1017G, etc.) is cleared by a credit entry generated when the item is deleted from the liability master control tape.
d. Items which are refunded automatically or disbursements made off-tape should not be controlled by the use of the intersystem control account 8_2025.10. Such actions will be controlled by the use of the Undistributed Insurance Disbursement Account 8_4669.00.
e. Miscellaneous payments due insurance award beneficiaries will be controlled as follows:
(1) There will be only one record for each name and only one amount will be shown.
(2) The object code for all award liabilities will be code "7".
(3) Account 2066 will be debited and account 2025.10 will be credited when information is received from Operations Section that a payment cannot be made. Input will be prepared, transaction type 036, to debit ADP account 09.
(4) When information is received that a miscellaneous item cannot be vouchered for payment, the document will be posted debit expense account and credit account 2025.10. Input will be prepared, transaction type 036, to debit ADP account 09.
(5) If it becomes necessary to change the amount of a liability on an existing record, input, transaction type 034 will be prepared indicating the amount to be added or subtracted.
(6) When a document is received to pay an amount for which a liability was established, it will be posted debit account 2025.10 and credit account 1012.03. Input will be prepared, transaction type 035, to credit ADP account 09 and delete the liability master record.
(7) If the full amount is to be paid, "00" will be entered in the record number block. If only a partia1 amount is to be paid, prepare input, transaction type 034, to credit ADP account 09 for the amount being paid. This will reduce the liability amount on the master record. Enter the record number of the liabillty master record that is being changed in the record number block on the input card.
f. The Accounting Section wlll cstablish an Undelivered Checks and Payment Due Control Ledger for each Fund and the Appropriation. The ledger will contain the following columnar identification:
(1) Date of Entry
(2) Reference Number
(3) Run 155 Debits (G. L. Account 8_2025.10)
(4) Run 155 Credits (G. L. Account 8_2025.10)
(5) Other Debits
(6) Other Credits
(7) Balance
g. The totals for control account 8_2025.10 as shown on the GLTJL (General Ledger Totals Journal List) will be recorded as "Run 155 Debits" or "Run 155 Credits" in the control ledger. Entries made from SF 1098, SF 1185, and other accounting source documents will be recorded as "Other debits" or "Other credits".
h. When the GL/TL (General Ledger Transaction List) is received from the DPC each transaction which shows an entry to ADP No. 09 (8_2025.10) will be checked against the related pending document. If the amount on the GL/TL and the pending document agree both the pending control document and the GL/TL will be annotated, "POSTED DN_______." When all items on the GL/TL are cleared, the list will be filed in a processed file for use in the monthly reconciliation.
i. During the monthly reconciliation all control documents which have not been cleared in 30 days or more from the date of reconciliation will be listed and with a covering memorandum sent to the appropriate operating element for action.
8H.06 LOANS, LIENS, DIVIDEND CREDITS AND DEPOSITS CONTROL
a. The policy loan, lien and dividend credits and deposits account balances are controlled by their respective general ledger accounts:
(1)Policy Loans 8_1142.00 series
(2)Policy Liens 8_1271.00 series
(3)Dividend Credits and Deposits 8_2032.00 series
b. The accumulated interest balances for these accounts are controlled on tape in memorandum accounts which are not supported by general ledger account balances. On the anniversary for each loan, lien or dividend balance the accumulated interest is capitalized into the balance on the respective policy.
c. File maintenance transactions which effect basic loan, lien or dividend credit/deposit accounts will be assigned "B" batch codes. When the input is processed the transaction will be listed on the General Ledger Transaction List. When the list is received the amount of the transaction will be verified and the list will be noted "Posted PDN____." The accounting document will be properly annotated and filed in the appropriate completed file for monthly reconciliation.
d. Monthly, all unposted items on the control documents in the "Pending" file will be reconciled with the balances in the control ledgers. Listings will be made to support the reconciliation and will be held for Central Office audit verification.
e. At the time of the monthly reconciliation all pending control documents which have been pending for 30 days or more will be listed and sent with a covering memorandum to the responsible operating element for action.
f. On-tape controlled loan, lien, dividend credit/deposit transactions are also reconciled monthly by the controlled account reconciliation run. (See par. 8H.09.)
8H.07 MISC TRANSACTlON CONTROL GL ACCT 8_3571.00 (ADP ACCOUNT 39)
a. The MTC (miscellaneous transaction control) account controls two or more interrelated file maintenance transactions using general ledger accounting entries. Adjustments processed by file maintenance which remain incomplete after system processing are controlled by remaining as a balance in the MTC account. This balance will remain until the adjustment transaction is completed by the system.
b. The following are typical examples showing how the MTC control is used:
(1) The MTC account on clerically prepared file maintenance input is edited for an out ofbalance condition by file number. When outofbalance is found, a "MTC" reject is created.
(2) A payment of $12 has been established as a pending posting transaction on the Pending Transaction Tape. It has been determined the money should be applied-$7 premiums and $5 to loan. The file maintenance transactions and the General ledger accounting such are necessary to accomplish this are:
Premium Segment Input Card
DR Misellaneous Transaction Control $7
CR Premium-Offsets $7
Optional Segment Input Card
DR Miscellaneous Transaction Control $5
CR Policy Loans-Offsets $5
Pending Transaction Input Card-delete
DR Unapplied Insurance Collections $12
CR Miscellaneous Transaction Control $12
If all of the above transactions are processed, the miscellaneous transaction control account will be equal and the account will be in balance. If the first two are processed and the last is rejected, the miscellaneous transaction control account will show a debit balance of $12.00. This balance will remain until the rejected transaction is reintroduced into the system and processed.
NOTE: Transactions rejected from a previous day number which have been corrected and are being reintroduced are coded with an "X" in the file prefix to bypass the MTC edits.
c. The miscellaneous transaction control account is controlled and maintained on tape. The MTC record tape file (run 150) is updated by all processed transactions which affect the MTC account. New MTC control records are established, for each master record when file maintenance transaction postings to the MTC account are not equal. Existing MTC control records are deleted from the tape when file maintenance transactions are processed which balance the MTC control records. If there are existing MTC control records, and file maintenance transaction postings to the MTC account are processed without balancing the MTC account, the control record is adjusted and updated accordingly.
d. At the end of each month, the MTC control record tape (run 824) is processed and all MTC control records are listed. The listings are then forwarded to the proper operating elements for processing.
(1) All control records which have been on tape for more than 30 days (based on the date of the listing and PDN on which the MTC account became out-of-balance) will be analyzed to determine why the out-ofbalance conditions have not been corrected. The necessary file maintenance transactions will be prepared to bring the account into balance.
(2) There are some out-of-balance conditions which cannot he corrected by the use of file maintenance transaction for processing the daily update. An example is where a master record no longer exists on the master record tape file. Another example is where money is transferred from one master record to another and the transfer is made through the MTC account. This causes MTC control records to be established for both master records. To delete these control records, the operating element forwards a FL 29-652 to the Finance [ ] Division explaining the action required to delete the MTC control record from tape. The Finance [ ] Division prepares file maintenance transactions on VA Form 24-5966, MTC Control Record Input Code Sheet-ADP (see fig. 8H.F1), for processing in the next miscellaneous transaction control run and makes the necessary adjustments in the general ledger accounts.
(3) The Finance [ ] Division will reconcile the MTC control record totals shown on the grand total report, with the general ledger account balances at the end of each month.
8H.08 TRANSFER OF FUNDS
a. Interfund Transfers OnTape Records. Interfund transfers for transactions processed in the daily update or deduction Accounting runs are accomplished automatically in the inforce system. Account 8_3569.00 series is debited and 8_1012.01 is credited for the fund or appropriation from which the transfer is made. Account 8_1012.01 is debited and the premium, loan or lien cash collection (.2) account is credited for the receiving fund or appropriation. (Since transfers between "J", "JR", and "JS" segments are transfers within the same fund, account 8_1012.00 would be used in lieu of account 8 _ 1012.01.)
b. Interfund Transfers From On-Tape to Off-Tape Records. Transactions which require intertund transfers of money between on-tape and off-tape records are controlled through the undistributed insurance disbursements accounts. File maintenance input records which are prepared to accomplish these transfers are forwarded to the Finance [ ] Division together with VA Form 29-1610, Transfer Worksheet where they are scheduled on SF 1081, Voucher and Schedule of Withdrawals and Credits.
c. Intrafund Transfers From On-Tape Records to Off-Tape Records. Transactions which require the transfer of money between on-tape and off-tape records and the fund or appropriation is the same are controlled through the undistributed insurance disbursements accounts. File maintenance input prepared to make these transfers are forwarded to the Finance [ ] Division together with VA Form 29-1610, Transfer Worksheet, where they are summarized and scheduled on [OF 1017G, Journal Voucher.]
d. Intrafund Transfers-Pending Transactions. The Voucher Audit activity receives all input, premium record cards and related material from the Premium Accounts activity, Insurance Division, when suspense amounts are located for an account converted to tape. The Voucher Audit activity reviews and verifies these documents, and, if in order, inserts a special 4T batch code on the input and releases to the DPC. After the transactions are processed the Finance [ ] Division will prepare a [OF 1017G] to correct the accountability account. The amount of the adjustment will be determined by the amount shown as a credit to account 8_2064.00, Unapplied Collections-Basic Account on the General Ledger Totals Journal List.
e. Transfers for Reimburseable Premium Waivers (General Ledger Accounts 814217.00 and 854217.00. ADP Account 59)
(1) Premiums waived under section 712d (38 U.S.C.) for NSLI V policies and section 781 (38 U.S.C.) for USGLI are reimbursable from the T&I Appropriation. At the end of each month the Finance [ ] Division will prepare a Journal Voucher to transfer from the T&I appropriation to the NSLI or USGLI Fund the amount of reimbursable premiums which have been waived during the month. The amount involved pertains to life premiums only. Premiums waived under the total disability provisions of NSLI and USGLI policies are not reimbursable therefore, there is no control maintained over such waivers. However, premiums waived for disability on USGLI policies issued under Endowment at age 96, are under control for the total premium.
(2) Premiums waived under section 712d (NSLI "V") are "automatic reimbursables." The policies in force under this section are not entitled to dividends (non-participating). The reimbursement for the cost of premiums waived will be limited to the gross premium less the amount of dividend which would have been payable had the policy not been under section 712d waiver. When these accounts are updated the in-force system automatically debits account 8_4217.00 (ADP account 59) and credits account 8_3561.3 (ADP account 32). As these transactions are processed they are printed on the GL/TL to provide control information. The Finance [ ] Division will establish appropriate controls to identify each account requiring an adjustment for which premiums are waived. At the end of the month the Finance [ ] Division will calculate the deductions from the gross premiums and prepare a journal voucher to make the required accounting entries. Until such time that dividend rate tables are published each year, the rates for settlement dividends will be used.
(3) The General Ledger system (GLEGS/GLUD) automatically accumulates each day a difference between "Waivers-Premiums-Reimbursable" and "Transfers from I&I Appropriation-Premiums Waived For Disability", general ledger accounts 8_4217.00 and 8_3884.00 and includes it on the daily crossfoot report. At the end of the month (after EOM Pass 1) the Accounting Section will prepare a journal voucher to transfer the difference to the applicable funds.
(4) After the above journal voucher is posted by the General Ledger system (GLEGS/GLUD) the accumulated general ledger balances in 8_4217.00 and 8_3884.00 should be equal. The system will repeat accumulating the differences between these two accounts for the next month's adjustment action.
8H.09 RECONCILIATION OF ONTAPE CONTROLLED ACCOUNT RECORDS
a. On-tape controlled general ledger accounts which are reconciled by the inforce system include Policy Loans (8_1142.00); Policy Liens (8_1271.00); Dividend Credits and Deposits (8_2032.00), and related accumulated interest; and Unapplied Collections (8_2064.00).
b. File segment totals of ontape loan, lien and dividend credit/deposit record balances and their related accumulated interest balances, are carried ontape in the summary control records at the end of each master record file segment. The daily processing updates these summary record balances using the general ledger totals
which were accumulated during the processing of master records. When file maintenance transactions are processed against loan, lien and dividend credit/deposit records, program controls and edits are provided to assure that the amounts which are accumulated as general ledger entries are in exact agreement with the changes that are made in the balances carried in the master records. For example, if a file maintenance transaction is being processed which will reduce the loan record balance, the program will edit the transaction to insure that a general ledger account balance should always be in balance with the summary control record totals.
(1) Monthly, the controlled account reconciliation run reconciles the master record controlled account balances with the on-tape summary control record balances. Individual subsidiary record balances are accumulated by file segment and grand totals. The program processing compares the accumulated file segment totals with the segment summary control record totals. If any totals do not reconcile, the file segment is rerun and individual balances listed and printed for the controlled account or accounts which do not reconcile. The master record tape which was used for the previous monthly reconciliation is also processed and the individual balances listed and printed for the nonreconciling account. (The previous month's master record tapes are always retained until the subsequent month's reconciliation is completed.)
(2) The Finance Division receives the run totals report from the DPC. If there are any out-of-balance segments, the current month and the previous month listings are also received. The two listings together with the transacton lists which were processed during the month are used to reconcile the out-of-balance segments manually and to determine the reason for being out of balance.
(a) General ledger account adjustments which are necessary as a result of the reconciliation are made by journal voucher. The journal voucher must show a complete explanation of the adjustment.
(b) Memorandums are prepared and forwarded to the operating element concerned when adjustments to master records are necessary because of an out-of-balance condition.
(c) Memorandums are prepared and forwarded to the DPC, advising the reasons for an out-of-balance condition so that program adjustments and edits may be made to prevent the out-of-balance conditions from recurring.
(3) After the listings and reports have been reconciled and any necessary general ledger account adjustments made, the grand total amounts are reconciled with the general ledger account balances.
c. Totals (by fund/appropriation) of unapplied collection (pending transactions) are carried on tape in the summary control records which are at the end of each pending transaction file segment. These totals are updated daily, using the unapplied collection general ledger totals which were accumulated during the processing and pending transactions. Program controls and edits are also provided to insure that the amounts which are accumulated in the unapplied collections general ledger accounts are in agreement with the changes that are made in the pending transaction amounts.
(1) Pending transaction total amounts are accumulated and reconciled with the file segment totals in the summary records. If out-of-balance conditions exist in a file segment, action is taken immediately by the DPC to notify the Finance Division of the VA center. The master file is then processed by the DPC to bring the tape summaries and master record balances into agreement before processing input for the next processing day number. Since these records are reconciled daily, the out-of-balance must have occurred in the previous day's processing. The transaction list from the previous day's processing will be used to reconcile the out-of-balance condition. If it is not possible to locate the out-of-balance using the transaction list, printout listings of the pending transaction tapes used as input on the previous day and the current pending transaction tape will be requested from the DPC for use in reconciling the out-of-balance condition.
(2) At the end of each month, the balances of the unapplied collections (G. L. account 8_2064.00 series) are reconciled with the unapplied insurance collection balances shown on the controlled accounts totals section of the run totals report.
SECTION I. MATURED CONTRACTS PAYABLE CONTROL
8I.01 GENERAL
a. MCP (Matured Contracts Payable) is a liability account maintained by the VA to show amounts due beneficiaries and insureds for matured policies. This liability is controlled by two general ledger accounts 8_2063.00 (MCP ontape) and 8_2066.00 (MCP off-tape). The accounts are used to control the following types of actions:
(1) Establishment of the liability.
(2) Control the movement of settlement data between the Insurance InForce and Awards ADP systems.
(3) To provide a means of followup on unpaid claims.
8I.02 PROCESSING MATURED CONTRACTS
a. The Insurance Division introduces input into the in-force system to generate settlement information and establish the liability for amounts to be paid on each policy in force at the time of maturity. The input is assigned a special "B" batch code and forwarded for processing. The processed input will generate the following actions:
(1) Completes the accounting entries necessary to establish the MCP liability and adjusts the affected general ledger accounts.
(2) Generates output to print the identification and control information on the inforce system's General Ledger Transaction List for each account which affects matured contracts payable.
(3) Generates output which is used by the Insurance Award ADP system to establish automatically an award pending master record.
(4) Establishes the MCP summary controls in the Insurance Awards system.
8I.03 CHANGES TO MATURED CONTRACTS PAYABLE
a. Additional information may be received concerning a matured policy which will either increase or decrease the liability the VA has to a beneficiary or insured. This information must be properly supported by a supplemental VA Form 29-368d or an appropriate [accounting] document.
b. The Operations [ ] Section analyzes the status of the award and determines what action is required as follows:
(1) If the account is not paid, input is prepare to adjust the liability. The input is assigned controlled batch codes and forwarded to the DP. The related controlled accounting documents are forwarded to the Accounting Section to be held in a pending file until cleared by the "Controlled Transaction List" from the Insurance Awards system.
(2) If the account is paid and an amount is due a beneficiary or an insured, appropriate disbursement action is taken. The control document is held in a pending file until payment is made and the "MCP-Off tape" account is cleared.
(3) If the account is paid and charges are to be applied to an award account, a receivable will be established.
8I.04 REMOVAL OF MATURED CONTRACTS PAYABLE LIABILITY FROM THE ADP SYSTEM
d. An established MCP liability may be deleted from the ADP system for various reasons. Whenever the liability is deleted, the control is automatically established by the system in the MCP off-tape account. Depending on the reason for the deletion the following actions will be taken:
(1) If the record is to be retumed to the inforce system, the Insurance Division prepates the necessary input and notifies the Finance [ ] Division of the action by memorandum. The memorandum will be used to control the deletion of the insurance award pending master record and the preparation of the accounting entries required to reverse the MCP liability from the general ledger accounts.
(2) When a record is deleted for adjustment or for payment outside the ADP system, the liability is controlled by the MCPOfftape account. The accounting transactions necessary to clear the liability must be processed manually for this type of case.
8I.05 RECONCILING MATURED CONTRACTS PAYABLE
a. The matured contracts payable control accounts will be reconciled daily for all ADP system processed liability transactions. This will include the establishment, payment, adjustment of miscellaneous charges and crcdits on the ADP system as well as manually.
b. A daily control sheet will be maintained by the Accounting Section to reconcile the MCP transaction totals from the inforce systcm and the MCP transaction totals from the Insurance Awards system. The following formula will be used:
(1) ADD credits to G. L.Account 8_2063 (Run l55 Report)
SUB debits to G. L. Account 8_2063 (Run 251 Report)
ADD credits to G. L. Account 8_2063 (Run 251 Report)
ADD MCP amounts shown on clerical inserts of Award Pending
Master Records (Run 254 Report)
TOTAL (Plus or Minus) of above items.
(2) From the total established above, subtract the "Net Change to MCP" shown in the "Award Pending Master Record Controls" portion of the [ ] run 251 report.
c. Whenever a difference is discovered it must be reconciled and the file numbers located on the [ ] run 252 (reject report). Appropriate journal vouchers should be prepared when applicable, to transfer the difference into account 8_2066.00, MCP-of-tape, for control. The Accounting Section must establish the necessary records to provide a control for followup action on each policy involved.
d. A reconciliation will be made at the end of the month between the control documents and account 8_2066.00. At this time the control documents which have been pending in excess of 30 days will be listed and forwarded with a covering memorandum to the appropriate operating element for necessary action.
SECTION J. OFF-TAPE REC