CHAPTER 16. BENEFIT PAYMENTS ACCOUNTING
SECTION A. GENERAL
16A.01 PURPOSE
The purpose of this chapter is to implement the principles and standards contained in chapter 1, MP-4, part V, as they pertain to benefit payment accounting. The policies and procedures contained in this chapter will be followed by the VA with regard to benefit payment accounting matters.
16A.02 BENEFIT PAYMENT ACCOUNTING DEFINED
a. The terminology "Benefit Payment Accounting" as contained in this supplement pertains to all accounting matters for the following two benefit appropriations:
Symbol Title
36X0102 Compensation and Pension,
VA
36X0137 Readjustment Benefits, VA
b. In addition to the above, this chapter includes all accounting matters for the Vocational Rehabilitation, VA Revolving Fund, 36X4114 under the CP&E automated system. If accounting matters are under this fund for accounts not converted to the CP&E automated system, the procedures contained in chapters 2, 3 and 4 will be for application.
c. Under the CP&E automated system, accounting matters pertaining to appropriations or funds other than the two benefit appropriations are also included in this chapter. These matters are restricted to processing actions and required financial reporting as prescribed by chapter 2.
16A.03 ORGANIZATION OF CHAPTER
a. This chapter provides separate instructions for benefit payment accounting depending on whether the accounts have been converted to the CP~E automated system. Section B applies to the manual system, or those accounts that have not been converted to The CP&E automated system. Appendix M4 is also applicable to these accounts.
b. Section C applies to accounting matters under the CP&E automated system. Appendixes M3 through M3-7 are also applicable to accounts converted to the automated system.
c. Paragraphs 16A.04 through 16A.10 apply to accounting matters applicable to each of the two systems (manual or automated). Appendix M2 applies to the accounting requirements for maintaining accounts for the two benefit payment appropriations at the departmental level whereby allocations, allotments and undistributed disbursing authority are controlled at the Central Office level. This appendix applies to all accounting systems for the benefit payment appropriations.
16A.04 ACCOUNTING PRINCIPLES AND STANDARDS
This conforms to the accounting principles and standards contained in chapter 1. Controls are maintained at the departmental level for allocations. allotments and undistributed disbursing authority. Controls are maintained at the field station level to preclude violation of the AntiDeficiency Act.
16A.05 ACCRUAL ACCOUNTING
Benefit payment accounts maintained under the provisions of this chapter will be accomplished on an accrual basis for both expenditures and receipts.
16A.06 ACCOUNT STRUCTURE-BENEFIT PAYMENT APPROPRIATIONS
Paragraphs 16A.07 through 16A.09 explain the basic account structure for each major category of accounts provided for the two benefit payment appropriations.
16A.07 GENERAL LEDGER ACCOUNTS
a. General ledger accounts have been assigned a fourdigit basic account number which are preceded by a twodigit prefix to designate the applicable benefit appropriation. The first digit of the basic account number identifies the class of account as follows:
Digit Account Class
1 Asset
2 Liability or
Accountability
4 Expense or
Disbursing
6 Interoffice
7 Statistical
b. The second digit of the basic account number for asset accounts identifies the account group within the broad class; for example, disbursing authority, receivables, etc.
c. Administrative control of funds to preclude violation of the Anti-Deficiency Act will be maintained at the field station level solely through the use of general ledger propriety accounts which eliminates the need for allotment ledger accounts and general ledger accountability accounts. The amount of disbursing authority available for disbursement is the net balance of general ledger accounts 3_1012, 3_1018, 3_2038 and 3_2075.
d. Administrative control of allocations and allotments for the benefit appropriations is maintained at the Central Office level through the use of general ledger accountability accounts. Control is also maintained in a similar manner to reflect the amount of disbursing authority which is available for distribution.
e. The general ledger accounts as prescribed for the benefit appropriations in appendix M2 will be used at the departmental (Central Office) level. Those prescribed in appendix M4 will be used by field stations under a manual system. Those prescribed in appendix M3 will be used in the compensation, pension and education automated system.
16A 08 SUBACCOUNTS
Fourdigit subaccounts reflecting the minor subaccounts within the major subaccount as prescribed by appendix Ml will be used to record all costs for the two benefit appropriations. Subaccount 4210 is applicable to all appropriation 36X0102 cost accounts. Subaccount 4110 is applicable to all appropriation 36X0137 cost accounts except as specified in appendix Ml, paragraph 2, this chapter, for which 4210 is applicable.
16A.09 COST ACCOUNTS
a. Appendix M1 contains the cost accounts to be used to record all costs of the two benefit appropriations. These are fourdigit accounts with the first digit "3" denoting a benefit appropriation. The second digit denotes the specific benefit appropriation and the last two digits the type of benefit.
b. The last two digits for appropriation 36X0102 cost accounts are usually based on the entitlement code which is the code that designates the period of service and the basic type of benefit. In other instances when an entitlement code is ont established, the last two digits are based on the basic type of benefit or other factors.
c. The last two digits for appropriation 36X0137 cost accounts are based on the same factors as for 36X0102, but those representing training allowances are broken down to reflect the type of training within each basic entitlement code.
d. All cost accounts are subsidiary to the general ledger accounts 3_4042 through 3_4046 and will be closed at the end of the fiscal year. Separate cost accounts have been provided for recording any subsequent writeoffs of the overpayments and collections of receivables previously written off without regard to type of benefits. Other cost accounts will reflect the net disbursements plus monthend accruals.
16A.10 FINANCIAL REPORTS
a. Instructions contained in chapter 4 will govern the preparation, verification and submission of a series of integrated financial reports and statements which comprise the benefit payment accounting system. The instructions are for application regardless of the type of system used at VA field stations.
b. In addition to the abovespecified accounting reports the accounting system is compatible with requirements for statistical and other desirable reports. Reference should be made to MP4, part VI, for other reports and statistics.
SECTION B. BENEFIT PAYMENT MANUAL ACCOUNTING SYSTEM
16B.01 GENERAL
a. The manual accounting system for benefit payments as referred to in this chapter pertains to those accounts under the following appropriations that have not been included in the CP&E automated system:
Symbol Title
36X0102 Compensation and
Pension, VA
36X0137 Readjustment
Benefits, VA
b. For appropriation 36X0102, the manual system is applicable to the Manila VA regional office. It will also be used by the Veterans Benefits Office for those accounting transactions that have not been converted to the automated system. These include the following payments made pursuant to existing authority:
(1) Adjusted Service Certificates for World War I veterans and their dependents.
(2) Philippine peso entitlement cases for those beneficiaries who reside outside the Republic of the Philippines.
(3) Initial or adjustment C&P payments exceeding the amount prescribed by the Treasury Department to persons residing in certain foreign countries as specified by the State Department and the Treasury Department. The amount of the check limitations for each country will be maintained in Veterans Benefits Office by means of coordination with the Washington D.C. Treasury disbursing center.
(4) Release by a onetime payment award of money deposited in the special frozen funds account "Secretary of the Treasury, Proceeds of Withheld Foreign Checks" under Public Law 828, 76th Congress, and subsequent legislation.
(5) Reimbursements to other Federal agencies for burial, funeral and transportation expenses paid by other agencies but properly chargeable to appropriation 36X0102.
(6) Reimbursements for burial allowances that were paid in foreign currency.
c. For appropriation 36X0137, the manual system is applicable to the Manila VA regional office. It will also be used by all VA regional offices for those accounting transactions that have not been converted to the automated system. These include the following payments made pursuant to existing authority:
(1) Grants for specially adapted housing for disabled veterans (Veterans Benefits Office only).
(2) Automobiles and other conveyances for disabled veterans and servicemen under 38 U.S.C. ch. 39.
(3) Adaptive equipment for automobiles and other conveyances for disabled veterans and servicemen under 38 U.S.C. ch. 39.
(4) Tuition, fees, books, supplies and equipment under 38 U.S.C. ch. 31.
16B.02 PROCEDURES
a. Appendixes M1 and M-4 are for use under the manual system. Appendix M1 contains the expense accounts for appropriations 36X0102 and 36X0137. Appendix M4 contains the general ledger account numbers, account descriptions and pro forma entries.
b. Chapters 1 through 5 of this manual contain all other accounting policies and procedures for maintaining accounts under the manual system.
16B.03 ACCRUALS
a. Appropriation 36X0102. Accruals for appropriation 36X0102 of benefit payments under the manual system are limited to the Manila VA regional office and the Veterans Benefits Office and will be further limited to the accounts in the manual system. At the end of each month, these two offices will determine the amounts of benefits awarded by cost account that are due and payable but not processed for payment as of the end of the month. These amounts may be determined on an estimated basis by using comparable previous month's experience. Accounting entries will be recorded in the general ledger and cost accounts for the establishment and reversal of these accruals as provided by appendix M4 to this manual.
b. Appropriation 36X0137. Accruals for appropriation 36X0137 of benefit payments will not be established under the manual system. These accruals will be established at the departmental level based upon the number of trainees and the type of training. Reference should be made to paragraph 16C.50 for further instructions.
SECTION C. COMPENSATION, PENSION AND EDUCATION AUTOMATED ACCOUNTING SYSTEM
16C.01 PURPOSE
The purpose of this chapter is to implement the accounting principles and standards contained in chapter 1 for the automated benefit payment accounting system centralized at the Hines DPC. In addition to this manual, reference should be made to all supplements to MP6, part IV; M211; M2311, part I; M27-1; M27-4 and MP4, part VI, for further information of the operating procedures for the CP&E automated system. Specific reference should be made to MP6, part IV, supplement No. 2.3, which describes the automated accounting features of the system based upon specific types of transactions being processed or upon specific computer runs. Processing of prescribed input data automatically effects appropriate general ledger and cost account entries in the Hines DPC accounting records.
16C.02 NOMENCLATURE OF CP&E AUTOMATED SYSTEM
The CP&E automated system is in reality two systems. These are the C&P and the education system. A separate system is also operated at the Hines DPC for the vocational rehabilitation (38 U.S.C. ch. 31) subsistence allowance payments. Since this system is being consolidated with the C&P system, no separate instructions are provided in this supplement for these payments. The C&P system maintains all of the accounts listed in paragraph 16C.04 except for payments to beneficiaries for educational assistance allowance under 38 U.S.C. chs. 34 and 35. The education system maintains these accounts in addition to deposit fund 36F3875 accounts that result from operations under the education system. No other accounts are maintained in the education system.
16C.03 ACCOUNTING RECORDS
a. Accounting Records Maintained. Paragraphs 16C.14 through 16C.25 contain information as to the accounting records and controls maintained under the CP&E automated system. Subsidiary accounts are maintained on tape as a part of the individual master record files. References should be made to MP-6, part IV, supplement No. 4.1, for complete descriptions of the various types of master records. All subsidiary accounts will be reconciled with the controlling general ledger accounts as required by chapter 2, section G. Memorandum receivable records are also maintained as put of the master record file. These represent receivables that have been written off as uncollectible but are maintained in the records for possible offset from any future benefits that may be awarded. Although these memorandum records are not subsidiary to general ledger control accounts, they will be maintained under the 7000 series of general ledger statistical accounts. As such, reconciliation will be required as a part of the controls over operations of the system.
b. Accounting Entries. As stated in subparagraph a, above, the general ledger and cost accounting entries are made automatically based upon the processing of specific transaction codes. MP6, part IV, supplement No. 1.1, contains descriptions of all codes used in the system. Appendix M3 contains descriptions of all general ledger accounts established for the CP&E system, together with pro forma entries. Appendix Ml contains the cost accounts to be used under this system for appropriations 36X0102 and 36X0137. Cost accounts are not applicable to other funds included in the system.
16C.04 RESPONSIBILITY FOR MAINTAINING ACCOUNTING RECORDS AND PREPARATION OF ACCOUNTING REPORTS
The Hines DPC is responsible for maintaining all accounting records and submission of prescribed accounting reports for all accounts maintained under the ADP system for the compensation, pension and education program. The accounts included in this system arc as follows:
a. Appropriation 36X0102, Compensation and Pension, VA. All accounts except those applicable to the Manila VA regional office and those maintained by the Veterans Benefits Office under the manual system described in paragraph 16B.01 b.
b. Appropriation 36X0137, Readjustment Benefits, VA. All accounts except those applicable to the Manila VA regional office and those maintained by regional offices under the manual system as described in paragraph 16B.01c.
c. Revolving Fund 36X4114, Vocational Rehabilitation, VA Revolving Fund. All accounts except those that may come under the jurisdiction of the Manila VA regional office operations.
d. Revolving Fund 36X4024, Direct Loans to Veterans and Reserves, VA. All receivables that have been established in regional office accounts and subsequently transferred to the Hines DPC as provided in DVB Supplement 1, Revised, MP4, part IV, chapter 3.
e. Revolving Fund 36X4025, Loan Guaranty Revolving Fund, VA. All receivables that have been established in regional office accounts and subsequently transferred to the Hines DPC as provided in DVB Supplement 1, Revised, MP4, part IV, chapter 3. Also, the related reserve for loss accounts for these receivables will be maintained by the Hines DPC.
f. Deposit Fund 36X6020, Personal Funds of Patients, VA. All accounts applicable to the Department of Veterans Benefits except those that may come under the jurisdiction of the Manila VA regional office and those established in other regional offices pending transfer to the Hines DPC as provided in DVB Supplement 1, Revised, MP4, part IV, chapter 4.
g. Deposit Fund 36X6021, Funds Due Incompetent Beneficiaries, VA. All accounts applicable to the C&P program except those that may come under the jurisdiction of the Manila VA regional office operations.
h. Deposit Fund 36F3875, Budget Clearing Account (Suspense), VA. Those accounts that result from operations under the ADP automated system.
i. Deposit Fund 20X6133, Unclaimed Money of Individuals Whose Whereabouts are Unknown. Those accounts that result from operations for the PFOP and FDIB accounts under jurisdiction of the Department of Veterans Benefits being maintained in the ADP automated system.
j. General Fund Receipt 362649, Proceeds From Sale of Equipment and Other Personal Property, Not Otherwise Classified (Trainee Tools Only). All receivable accounts that have been established in regional office accounts and subsequently transferred to the Hines DPC as provided in DVB Supplement 1, Revised, MP-4, part IV, chapter 3.
k. General Fund Receipt 361060, Forfeitures of Unclaimed Money and Property. Those accounts that result from operations for the PFOP and FDIB accounts under the jurisdiction of the Department of Veterans Benefits being maintained in the ADP automated system.
16C.05 RECEIVABLE ACCOUNTABILITY
a. Accountability for receivable accounts as used in this section refers to the maintenance of required general ledger accounts applicable to the individual receivables. In the case of current or collectible receivables, the general ledger accounts are those prescribed for receivable asset (controlling), accounts. For uncollectible receivables, the general ledger accounts are those prescribed in the 7000 statistical series of general ledger accounts.
b. Accordingly, for the purpose of these instructions, the individual VA station maintaining either the receivable asset or statistical accounts for a specific receivable is considered to have accountability.
16C.06 SUBSIDIARY RECEIVABLE RECORDS
In the case of general ledger receivable asset (controlling) accounts, subsidiary receivable records will be maintained in the prescribed format and reconciled with the controlling general ledger accounts, as required, by the station maintaining the general ledger accounts.
16C.07 MEMORANDUM RECEIVABLE RECORDS
Memorandum receivable records will be maintained in the prescribed format for general ledger statistical accounts by the station maintaining the general ledger statistical accounts. In addition, memorandum receivable records will be maintained by the Hines DPC and the regional offices for collection or offset activities. Reference should be made to MP6, part IV, supplement No. 1.1, paragraph 401.06, "Receivable and Deduction Code/Class," for further information as to the station required to maintain the memorandum receivable records. Reference should also be made to DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.05, in regard to the requirements for maintaining memorandum receivable records by the regional offices.
16C.08 INDIVIDUAL STATION ACCOUNTABILITY
Using the above terminology for accountability and memorandum receivable records, the following will apply:
a. Appropriations 36X0102 and 36X0137. The Hines DPC will maintain accountability for all receivables under these appropriations except those applicable to the manual system as reflected in paragraph 16B.01.
b. Revolving Funds 36X4024 and 36X4025. All receivables created under these funds will be established in the accounts of the field station of jurisdiction as required by DVB Supplement 2.1, MP-4, part V. After establishment, these receivables will be transferred to the Hines DPC except as provided by DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.07b. After transfer, the Hines DPC will assume accountability. Regional offices will maintain memorandum receivable records, as required. Further details peculiar to these receivables are as follows:
(1) The Manila VA regional office will not maintain accountability for these receivables since that office does not have a Loan Guaranty program. If veterans' records are transferred to the Manila VA regional office and such receivables are involved, they will not be transferred. The Hines DPC will continue to maintain accountability. Reference should be made to DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.17, for additional instructions.
(2) Miscellaneous receivables under 36X4024 will not be transferred to the Hines DPC. Accountability for these receivables will continue to be maintained in the applicable regional office.
(3) The interest balances, when applicable, for miscellaneous receivables under 36X4025 (deduction code 29) will not be maintained by the Hines DPC. The lines DPC does not compute or maintain records for interest on these receivables. The memorandum receivable records maintained at the regional office for deduction code 29 receivables transferred to the Hines DPC will continue to reflect information pertaining to interest balance, when interest is applicable.
(4) Interest balances for Loan Guaranty receivables will not be computed by the Hines DPC on a regular recurring basis. These balances, when applicable, will be updated only when transactions, such as collections, etc., are processed against the individual master record.
(5) Under the C&P automated system, all collections will be applied to the principal balance until liquidated. Collections in amounts exceeding the principal balance will be automatically applied to the interest balance. Collections in excess of both the principal and interest balances will automatically become unassociated amounts.
c. Revolving Fund 36X4114. The Hines DPC will maintain accountability for all receivables under 36X4114. The Manila VA regional office is not precluded from maintaining accountability for such receivables in the event local operations require such under the manual system.
d. Revolving Fund 36X4135, Soldiers, and Sailors, Civil Relief, VA. Accountability for all receivables under 36X4135 will be maintained by the VA Center, Philadelphia. These will be introduced into the C&P system under deduction code and class 65C. After introduction into the system, the Hines DPC will maintain memorandum receivable records for deduction purposes only.
e. VA Miscellaneous Receivables. Accountability for VA miscellaneous receivables (deduction code and class 61C) will be maintained by regional offices under the applicable appropriation or fund. These will be introduced into either the C&P or education system for deduction purposes only in the same manner as reflected in subparagraph d, above. Memorandum receivable records will be maintained by the Hines DPC.
f. Debts Due Other Government Agencies. Accountability for these receivables will not be maintained by VA stations. When appropriate. these will be introduced unto either the C&P or education system under deduction code and class 63C for deduction purposes only. Memorandum receivables will be maintained by the Hines DPC.
g. Income Tax Liens. Accountability for these liens will not be maintained by VA stations. When appropriate, these will be introduced into either the C&P or education system for deduction purposes only using deduction code and class 62P.
h. Adjusted Service Certificates. The Veterans Benefits Office will maintain accountability for these appropriation 36X0102 receivables. These will be introduced into the C&P system under deduction code and class 64C for deduction purposes only. The Hines DPC will maintain memorandum receivable records. Separate balances reflecting principle and interest will not be maintained by the Hines DPC.
i. Insurance Overpayments. Accountability for these receivables will be maintained by the St. Paul or Philadelphia VA insurance center, as applicable. When appropriate, these receivables will be introduced into the C&P system under deduction code and class 80C for deduction purposes only. The Hines DPC will maintain memorandum receivable records for such receivables that are introduced into the C&P system.
16C.09 RECEIVABLES INCLUDED IN CP&E SYSTEM
Reference should be made to DVB Supplement 1, Revised, MP-4, part IV, paragraphs 3.03 and 3.04, for information pertaining to the specific types of receivables included in each system (C&P and education).
16C.10 CASH COLLECTIONS
a. Receivables Under Hines DPC Accountability. All cash collections applicable to receivables for which the Hines DPC is accountable will be deposited by SF 219, Certificate of Deposit, for credit to the Hines DPC. (Ref.: DVB Supplement 1, Revised, MP4, pt. IV, par. 3.15.) Deposits will be made to 36F3875, Budget Clearing Account, Suspense, VA. No posting will be made to regional office accounts.
b. Receivables Under Regional Office Accountability. Cash collections applicable to receivables for which the regional office has accountability will be deposited by SF 219 to the appropriate accounts to the local station. In these cases where memorandum accounts are maintained by the Hines DPC, notice to the DPC of collections made will be accomplished by preparing a Form VA 4-6694, Fiscal Transaction Code Sheet. No accounting transfer will be made.
c. Receivables for Which Accountability Is Undetermined. When it is not known at the time of collection if deposits should be credited to the Hines DPC, deposits will be made by SF 219 to 36F3875 in the local station's accounts. Subsequent action will be based on determinations made as follows:
(1) If the Hines DPC maintains accountability, a VA Form 46694 transaction code 08A) will be prepared to transfer the credit to the DPC. Accounting transfer entries will be made in accordance with appendix M3-6.
(2) If the regional office maintains accountability, an SF 1017G, Journal Voucher, will be prepared to transfer the collections to the appropriate accounts of the local station. If the Hines DPC maintains memorandum receivable records, action will be taken in accordance with subparagraph b above.
d. Receivables Under Accountability of Another Regional Office. Cash collections applicable to receivables for which another regional office maintains either accountability or memorandum receivable records will be deposited by SF 219 to 36F3875 in the accounts of the local station. Upon determination of the regional office responsible, VA Form 4-4564, Transfer of Disbursing Authority, will be prepared to transfer the funds to that station in 36F3875. The regional office maintaining the receivable records after receipt of the transfer of disbursing authority, will accomplish the following:
(1) Record the transfers in their account.
(2) Make disposition of funds as provided in subparagraph c (1) or (2) above.
16C.11 VOUCHER OFFSETS
a. Receivables Under Hines DPC Accountability. Voucher offsets made by regional offices for application against receivables under Hines DPC accountability will be credited to the accounts of the regional office in 36F3875. These offset collections will be transferred to the Hines DPC by preparing a VA Form 46694 (transaction code 08B) in accordance with DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.06. Accounting transfer will be made in accordance with appendix M36.
b. Receivables Under Regional Office Accountability. Voucher offsets applicable to receivables for which the regional office is accountable will be credited to the appropriate accounts of the local station. If memorandum receivable records are maintained by the Hines DPC, VA Form 46694 (transaction code 08E) will be prepared to reduce the receivable in the DPC records.
c. Receivables Under Accountability of Another Regional Office. Voucher offsets applicable to receivables for which another regional office maintains accountability or memorandum receivable records, will be credited to 36F3875 in the local station accounts. Action to transfer these offset collections to the proper regional office will be accomplished in accordance with paragraph 16C.l0d, above.
16C.12 DEBIT VOUCHER, TUS FORM 5504
Uncollectible items deposited to the credit of the Hines DPC will be handled as prescribed by DVB Supplement 1, Revised, MP4, part IV, paragraph 3.15.
16C.13 RECEIVABLE TRANSFERS
Transfers of receivables will be accomplished as prescribed by DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.17. Accounting entries will be recorded as prescribed by appendix M3.
16C.14 CP&E ACCOUNTING CONTROL AND PROCESSING-FISCAL TRANSACTIONS
Paragraphs 16C.14 through 16C.18 describe controls for processing accounting data for fiscal transactions in the CP&E systems. Reference should be made to paragraphs 16C.19 through 16C.25 for all other transactions. Description of the control features and accounting output, together with corrective actions necessary, are contained in paragraph 16C.17.
16C.15 FISCAL TRANSACTIONS
Listed below are those transactions which are defined as fiscal transactions for control and processing purposes in the CP&E systems. These transactions are submitted under the control of VA Form 246888a, ADP Transmittal Control-Accounting Transfer Document, or VA Form 24-6888b, AM Transmittal ControlAccounting, as indicated herein. VA Form 24-6888b is for use at DPC Hines only. Refer to paragraph 16C.29 for preparation of VA Form 24-6888a. Refer to MP6, part IV, supplement No. 2.2, chapter 3, for preparation of VA Form 246888b.
a. Transactions Applicable to VA Form 24-6888a
Code Descriptions
A03 Accounting transfer input adjustments.
04A Establish or increase accounts receivable.
04B Checks and other remittances returned as uncollectible.
04C Transfer of PFOP funds.
04D Resubmission of unassociated debits.
04E Establishment or increase accounts receivable (no accounting
document). Clear unassociated accounts.
04F Establishment of accounts receivable in conjunction with decrease
under different payee or claim number.
04G Hardship payment-paid locally.
06 Onetime payments.
series
07 Miscellaneous accounts receivable actions.
series
08 Cash collections deposited to DPC accounts.
08A Transfer unapplied deposit fund collections, (cash) deposited to
regional office accounts.
08B Transfer unapplied deposit fund collections (offset).
08C Transfer accounts receivable credits (noncash).
08E Reduction of accounts receivable-no accounting documents. Clear
unassociated accounts.
18 Establishment or change in amount of recurring deduction.
b. Transactions Applicable to VA Form 24-6888b
Code Description
04C Transfer of PFOP funds.
04E Establishment or increase accounts receivable (no accounting
document).
04G Hardship payments.
04H Computergenerated hold check-not held.
04I Treasury Form RO 188, substitute checks.
08E Reduction of accounts receivable-no accounting document.
17 Insurance deductions.
21A, B, Returned checks.
C
A24 Accounting document-no field station input.
A25 Clearance of unassociated account.
A26 A, SF 1184 actions.
B, C, D
A27 PAID date information.
A28 Journal voucher.
NOTE: A complete listing of transaction codes are contained in MP6, part IV, supplement No. 1.1, chapter 2.
16C.16 INPUT
The input to the systems may be in the form of punched paper tape or punched cards. All regional office fiscal transactions are submitted on punched paper tape. Punched card transactions are prepared and submitted by the Hines DPC. Teletype hardship payments (transaction 06G) and teletype R and E revolving fund loan payments (06B) are submitted by regional offices via the ARS system and are subject to controls separate from those outlined for transactions submitted on VA Forms 246888 and 246888b.
16C.17 CONTROLS
The systems are designed in a manner which provides full control over each transaction processed, from the point of input through final cycle processing and production of accounting records. These control features are as indicated below:
a. Batch Control Before Introduction of Transactions Into the Systems. Fiscal transactions prepared for introduction into the systems are batched and summarized by transaction type on VA Form 246888a or 24-6888b as indicated in paragraph 16C.15. For each transaction type on the transmittal, the number of items and dollar amount must be shown, if required. The Hines DPC Input Control Section accounts for each regional office and Hines DPC batch received and prepares the punched paper tape for conversion to magnetic tape. Similar controls are used for punched card fiscal transaction batches prepared at Hines DPC. Special tape-totape and cardtotape programs are utilized to convert the punched paper tape and cards to the magnetic tape format required for processing into the systems.
b. Establishment of Inprocess Accounts. All field station fiscal transaction input an Hines DPC accounting input is entered into the system through the control run 21-400. This run is programmed to establish an inprocess account from the flexotyped batch header prepared from the VA Form 246888a by the regional office or the cards punched by the DPC from the VA Form 24-6888b. Subsequent to the establishment of the inprocess account, any rejection of a transaction will result in the generation of an unassociated account to offset the entries made to the applicable inprocess Account. Specific transactions and accounts affected are contained in MP-6, part IV, supplement No. 2.3, chapter 2.
c. Batch Balancing of Transactions Introduced Into the Systems. Run 21-400 is programmed to perform an item count and accumulate the dollar amount of certain individual transactions, by type, within each batch. The item count and accumulated dollar amount is compared to the summary of items and dollar amount as reflected in the batch header which reflects The entries on the VA Form 24-6888a or on the VA Form 246888b for Hines DPC accounting input. In any instance where the accumulated total of items and/or dollar amount is not equal to the summary total shown for the batch, an unassociated account is established for the difference. Specific transactions for which an unassociated account is generated and related accounting entries are contained in MP6, part IV, supplement No. 2.3, chapter 2. A VA Form 20-8271, Notice of Exception-CP&E Input Transaction, is generated to inform the regional office or Hines DPC of the outofbalance condition.
d. Batch Control. Each station preparing input to the CP&E systems assigns a number to each batch commencing with number 1 on January 1 of each year. A separate batch control is maintained for each system. Run 21-400 maintains a magnetic tape record of each batch processed, by station. At the end of every cycle, the highest batch number processed for each station is retained on tape and becomes input to the next cycle. If a batch number is not in sequence when compared to the highest batch number processed in the previous cycle, a message is generated for the regional office or Hines DPC. If a duplicate batch number is encountered on a cycle, run 21-400 stops and the operator's intervention is necessary to determine what course of action should be taken.
e. Edit of Transactions. Run 21-400 is designed to perform a full edit of fiscal transactions. An unassociated account is generated, where applicable, for each transaction which fails to pass the edit. A notice of exception (VA Form 208271) is generated to notify the regional office or Hines DPC that a transaction was rejected. The notice of exception will show name, claim number, transaction type, station number, batch number, processing cycle and reason for rejection. The appropriation and general ledger account number involved, amount of debit or credit, as applicable, and the unassociated control number is also shown when applicable. Specific general ledger entries for rejected transactions are contained in MP-6, part IV, supplement No. 2.3, chapter 3.
f. Control of Unassociated Accounts. Each unassociated account established is assigned an eightdigit control number. This number consists of two positions for the year, two positions for the month, one position for the processing cycle and three positions for the control number. The control number commences with 001 each cycle in the education system and with A01 each cycle in C&P. For example, the first unassociated account established in cycle 2 February 1971 in the C&P system would appear as 71022A01. In the education system, it would be 71022001. A magnetic tape record of each unassociated account established is maintained for control purposes in run 21-400. This tape record is produced by the general ledger update run 24-470 each cycle. All unassociated accounts established are added to the control record and all unassociated accounts cleared are deleted. At the end of each processing cycle, the unassociated account control tape contains only those unassociated accounts still not cleared. This tape is then used by run 21-400 on the next cycle. Run 21-400 takes all input transactions affecting unassociated accounts and checks the unassociated control number in the transaction against the unassociated account control tape. The control number in the transaction must match a control number on the control tape or the transaction will be rejected.
g. Accounting Transactions to Accounting Run 24-460. Run 21-400 records all accounting transactions on a separate tape which is forwarded to the accounting run 24-460. This tape contains the inprocess accounts established and any unassociated accounts established as a result of differences between the batch header amounts and the totals of the individual transactions, plus any unassociated accounts established due to rejection of transactions which failed to pass the edit performed by run 21-400.
h. Main Run Processing of Fiscal Transactions. All transactions accepted by run 21-400 are forwarded to run 21-410 sort for sorting by claim number and payee number within batch number and transaction code before processing through run 21-410. Run 21-410 further edits all transactions except the fiscal transactions. The accepted output of run 21-410 is sent to run 21-415 for inclusion in the cumulative transaction report and then to the main processing run 21-420 (C&P) or 21-421 (education) for processing against the individual master records. The main run generates the proper accounting transactions for all actions processed. If an individual input fiscal transaction is rejected for any reason, an unassociated account, where appropriate, is established to account for The money involved. Specific general ledger entries for rejected fiscal transactions are contained in MP6, part IV, supplement No. 2.3, chapter 3. A notice of exception is generated to notify the regional office or Hines DPC of the rejection. The notice of exception will contain information as indicated in subparagraph e above. The accounting transactions generated as a result of processing by run 21-420 or 21-421 are recorded on tape along with data pertinent to irregular payments (C&P only), onetime payments, stop check notices (C&P only), transaction register, and cycle control reports. This tape is forwarded for further processing by runs 21-435, 21-440 sort and 21-440 (C&P) or 21-435, 21-441 sort and 21-441 (education). After processing through these runs, all accounting transactions are forwarded to the accounting run 24-460.
i. Accounting Run 24460. Input data to this run are the accounting transaction tapes from run 21-400, 21-435 and 21-440(C&P) or 21-441 (education). This tape will include all accounting transactions generated as a result of processing input transactions. Specific debit and credit entries are generated based upon the accounting transactions received. This run is designed to generate a journal of accounting transactions for the cycle. Some transactions, such as unassociated accounts established or cleared, are posted individually while others are posted in summary. The journal also includes a summary of net change by general ledger account, net change to each cost account, and trial balance proofs. The run is programed to indicate on the typewriter log and the journal if an outof balance condition exists or if a balance remains in an inprocess account. Run 24-460 also produces a tape of accounting transactions and a summary of net change to each general ledger account which is forwarded through the accounting transaction sort run 24-470S and then to the general ledger updating run 24-470.
j. General Ledger Updating Run 24-470. This run is programed to update all general ledger accounts and produces the following output:
(1) A tape representing general ledger account balances, after updating, which becomes input to the next cycle .
(2) A tape record of all unassociated account control numbers in existence as of completion of the cycle. This tape is used by run 21-400 on the next cycle to insure that input transactions affecting unassociated accounts match the number of an existing account.
(3) A tape containing a trial balance of general ledger accounts formatted for submission to VA Central Office. This tape includes a listing of accomplished Treasury items which is used as a supporting document to the SF 224 report.
(4) A tape from which cards are punched for submission with the trial balance.
(5) A miscellaneous tape which contains the following:
(a) The balance in disbursing authority accounts.
(b) The SF 224 report.
(c) Cost analysis of returned check input.
(d) Cost analysis of recurring, retroactive and onetime payments.
(e) Cost analysis of accounts receivable changes resulting from 04E transactions-no accounting document.
(f) Cost analysis of accounts receivable reductions resulting from 08E transactions-no accounting document.
(g) Cost analysis of computergenerated accounts receivable (A54 transactions).
(h) Cost analysis of irregular deductions (A56 transaction).
(i) Results of trial balance tests.
(j) One endofmonth run (C&P) and last cycle of accounting month (education), a verification of accounts receivable subsidiary ledgers with general ledger control accounts.
(6) A tape record of confirmed Treasury items and pending cash items, by appropriation.
(7) A tape which provides data for printing of the following information:
(a) The general ledger showing opening balance for the month for each account, net change each cycle and the closing balance.
(b) A listing of expenditure transfers by appropriation.
(c) A listing of unassociated accounts by control number and appropriation
(d) Pending SF 1184 subsidiary records.
(e) A listing (Summary of Benefit Payment Expense Accounts) showing the cumulative balance in each expense account.
(f) An interstation activity report showing interstation activity for the month by appropriation, account number and station number. Each account shows the opening balance for the month, net change for each cycle, and the closing balance.
16C.18 VERIFICATION OF ACCOUNTING OUTPUT
Upon receipt of the printed accounting output, the Accounting Section, Hines DPC, will review the output to determine if any discrepancies exist. Normally, corrections will be made by submitting appropriate corrective transactions into the next processing cycle. However, if the nature of a discrepancy is such that it cannot be corrected on a subsequent cycle, a rerun of portions of the current cycle may be required to eliminate the errors.
16C.19 CP&E ACCOUNTING CONTROL AND PROCESSING OF TRANSACTIONS OTHER THAN FISCAL
Paragraphs 16C.20 through 16C.25 cover control and processing of input transactions other than those listed in paragraph I 16C.15. A complete listing of transaction codes are contained in MP6, part IV, supplement No. 1.1, chapter 2.
16C.20 INPUT
a. Input to the systems is submitted in a number of forms as indicated below:
(1) Punched paper tape.
(2) Punched cards.
(3) OCR input.
(4) Teletype input transmitted over the ARS system and received by the Hines DPC through digitronics equipment which records the information on magnetic tape.
(5) The Philadelphia VA insurance center transmits through digitronics equipment, transactions affecting insurance deductions from Compensation and Pension accounts.
(6) The St. Paul VA insurance center transmits through digitronics equipment, transactions pertaining to Veterans Mortgage Life Insurance deductions from Compensation and Pension accounts.
(7) The Austin VA DPC furnishes station transfer transactions from the BIRLS system for CP&E accounts via a mini-computer communications link.
b. The punched paper tape and punched cards are converted lo magnetic tape as described in paragraph 16C.17a. OCR documents are converted to magnetic tape by processing through optical scanning equipment. The tape generated by the digitronics equipment from the ARS teletype input is processed through a special run which edits and reformats the transactions for processing in the system. The insurance transactions are transmitted by the Philadelphia VA DPC in a format which is acceptable to the C&P system.
16C.21 BATCH CONTROL
a. Flexotyped and punched card transactions prepared for introduction into the systems are batched and summarized by transaction type on VA Form 246888. Batch control from time of receipt at Hines DPC is the same as outlined in paragraphs 16C.17a and d.
b. OCR documents are batched separately and transmitted under a separate series of transmittal control numbers established solely for OCR documents. A manual control is maintained at Hines DPC to insure that all transmittals are received. Reject messages are generated to advise the field station of documents rejected during optical scanning or for resultant transactions rejected during cycle processing.
16C.22 TRANSACTION CONTROL AND PROCESSING
For the C&P system, the Austin TDC (Treasury Disbursing Center), maintains a recurring payments file on tape. The Hines DPC updates a portion of the file (usually 20 terminal digits), normally on cycles 1 through 5 each month, as indicated by the C&P Schedule of Operations, RCS 331. All changes occurring since the last month's updating cycle for the specified terminal digits are recorded on the recurring pay change tape and forwarded to the TDC. The handling of transactions affecting recurring payments for accounts not a part of the updating cycle is discussed in subparagraph c, below. A recurring payment file is not maintained by the Kansas City TDC for the education system. Therefore, every education payment to be made is on the payment tape produced by the Hines DPC for any given cycle. The chapter 31 R&E (Rehabilitation and Education) system produces a payment tape with every payment on the tape in the same manner as the Education system. The chapter 31 payments are made through the Austin TDC and the accounting for these payments is accomplished through the C&P system.
a. Control and Edit of Transactions, C&P and Education. After conversion to magnetic tape, transactions are entered into the system through run 21-400. This run is defined as a presort control run. It edits transactions for validity of format, station number, transaction code and a numeric claim number under 30 million. It counts transactions and produces a cycle control report No. 1 which shows by batch and station, transactions received, accepted, and rejected. Notices of exception (VA Forms 208871 ) are also generated to advise the regional offices or Hines DPC of rejected transactions and the reason for rejection. It also counts the accepted transactions and passes this count on to the succeeding run for control purposes. After initial edit and count by run 21-400, the accepted transactions are passed to run 21-410 sort for deletion of batch headers and sorting of transactions by claim number, payee number and transaction code within batch number. The sorted output is then sent to run 21-410 for further editing of all except the fiscal transactions. The complete edit of fiscal transaction is accomplished by run 21-400 and, although they are included in the input to run 21-410, they are merely counted for control purposes and passed on to the main processing run 21-420 (C&P) or 21-421 (education). Messages are generated to advise the regional office or Hines DPC of substitution made for data submitted in error, data accepted where validity is doubtful and transactions ejected as a result of editing by run 21-410. The accepted transactions are counted and passed to the main processing run 21-420 (C&P) or 21-421 (education).
b. Main Run Processing, Education Run 21421. Run 21-421 receives the transaction count and transactions for processing against the individual master records. This run establishes amounts due payees, accounts receivable, future date actions, recurring deductions, etc., based upon the input transactions processed. Applicable accounting transactions are generated for payments or any other actions which affect the accounting system. Messages are generated for rejected transactions and also messages are generated to advise the field station of various other actions pertaining to benefit payments. Messages generated by all runs are contained in MP6, part IV, supplement No. 6.1. A tape containing a transaction count and data relative to payments, transaction register, cycle control reports, and accounting transactions is passed to run 21-435. A tape containing master record writeouts and all generated messages is sent to run 21441 sort. Other tapes are produced for master record postaudit and statistical data.
c. Main Run Processing, C&P Run 21-420. Run 21420 performs all other functions outlined for the Education main processing run and the following additional functions designed to control recurring payments and pay changes to the recurring payment file maintained at the Austin TDC:
(1) Transactions affecting the recurring payment file and processed before the current month updating cycle for the terminal digits concerned are recorded as a pending pay change in the master record. Control cards are used in each processing cycle to instruct the system which pay changes should be released and entered on the pay change tape to be sent to the TDC. On the appropriate cycle, as dictated by the control cards, the pending pay changes will be released.
(2) When a transaction affecting the recurring payment file is processed subsequent to the current month updating, the system will generate one of the following actions, as appropriate:
(a) If only a change of address for a recurring payment is involved, the system will generate a redirection notice and a pending pay change for the new address. The redirection notice consists of the new address printed on a gummed label. The gummed label is forwarded to the TDC where it is manually affixed to the check envelope. On the next updating cycle for the account, the pending pay change containing the new address is released to the TDC for recording in the recurring payment file.
(b) If a transaction establishes a recurring payment for an account not currently in the recurring repayment file, an irregular payment indicator will be established in the master record in addition to a pending pay change. Retroactive amounts due, if any, will be paid on current cycle. The irregular payment will be released on the last processing cycle of the month and will cover only the payment for the current month. On the next updating cycle for the particular terminal digit involved, the pending pay change will be released to the TDC for establishment in the recurring payment file.
(c) If a transaction changes a recurring payment amount, the program will generate a hold check notice to stop the check issued for the current month. An irregular check indicator will be established to release a check in the new amount on the last processing cycle of the month. A pending pay change will be established and will be released to the TDC on the appropriate updating cycle to establish the recurring payment in the new amount. The system accumulates the dollar amount of holdcheck notices and generates a transaction for recording of the cancellation of the hold checks. Should any check not be held by the TDC, the Hines DPC will be notified and will prepare an input transaction, code 04H, to reverse the effect of the computergenerated holdcheck notice.
(3) The output of C&P run 21420 covers the same items as indicated for education run 21-421. In addition, the pay change tape is produced on each updating cycle and after being sorted by run 21-425S (pay change sort) is sent to the TDC for updating of the applicable portion of the recurring payment file.
16C.23 MISCELLANEOUS PROCESSING, RUN 21435
a. This run receives its input from the main processing run and performs miscellaneous processing for production of the output indicated below:
(1) Cycle control reports 3, 4, 5, and 6. Details regarding these reports are contained in MP-6, part IV, supplement No. 2.2, chapter 4.
(2) Transaction register
(3) Payment tapes.
(4) Payment vouchers.
(5) A printed holdcheck listing and a punched card for each check to be held (C&P only).
(6) A notice of insurance change record for the Philadelphia DPC at EOM (C&P only).
(7) A drugnotice record for input to run 21-439S at EOM for production of a tape for St. Paul DPC (C&P only).
b. A tape containing miscellaneous accounting transactions generated by the main run is produced and passed to run 21-440S (C&P) or 21-441S (education).
16C.24 MISCELLANEOUS SORT RUN 21-440S (C&P) OR 21-441S (EDUCATION)
a. This run receives messages from run 21-400 generated as a result of rejection of transactions which failed to pass the edit; error messages for transactions (other than fiscal) rejected by run 21-410; messages generated by the main processing run 21-420 (C&P) or 21-421 (Education); audit error messages from run 21-430 and miscellaneous accounting transactions from run 21-435.
b. The above data is sorted and passed to run 21-440 (C&P) or 21-441 (Education) for further processing.
16C.25 OUTPUT PROCESSING RUN 21-440 (C&P) OR 21-441 (EDUCATION)
a. This run is designed to produce tape in a format for printing or punching cards for the following output:
(1) All messages generated by runs discussed in the preceding paragraphs of this chapter.
(2) Error Analysis Report, RCS 333.
(3) List of irregular deductions.
(4) Check redirection notices (gummed labels), C&P only. See paragraph 16C.22c(2)(a).
(5) Insurance address changes (C&P only). This tape contains changes of address on accounts which have insurance deductions. Cards are punched and forwarded to the Philadelphia VA insurance center for recording in the insurance records of the veterans concerned.
(6) Master record writeouts resulting from the postaudit performed by run 21-430 and from Hines DPC or regional office requests for master record writeouts, transaction type 39.
(7) Audit sample writeouts selected by the computer on a statistical sampling basis for full audit by the field station.
(8) Future physical notices (C&P only).
(9) Computergenerated letters, when applicable.
b. This run also produces an accounting transaction tape which is passed to the accounting run 24-460. Processing by accounting run 24460 and general ledger update run 24-470 is covered in paragraph 16C. 17.
16C.26 INPROCESS ACCOUNTS-UNASSOCIATED AMOUNTS
a. Receivable Debits in Process. General ledger account 1226 will be used to control the processing of all transfers to the Hines DPC of debits to receivable asset accounts for all appropriations and funds except 36X6020 and 36X6021. These control amounts that are received as input from the interoffice transfer documents will be automatically entered as a credit to the interoffice transfer account 6145 for the applicable appropriation or fund. These amounts for each appropriation or fund will also be entered as debits to the inprocess account 1226 of the applicable appropriation or fund. The total amount of the individual 04A input transactions processed in a cycle will be_entered as a credit to account 1226 and as a debit to the receivable asset account for each appropriation or fund. The inprocess account (1226) will be automatically reduced to zero each cycle. If the total or the individual transactions is less than the balance of transfers recorded as inprocess, the difference will be credited to account 1226 and recorded as a debit to the unassociated debits account 1229. VA Forms 208271 will be issued to advise field stations of this discrepancy and to effect corrections. Detailed accounting entries are specified in appendix M-3.
b. Receivable Credits in Process. General ledger account 1236 will be used to control the processing of all transfers to the Hines DPC of credits to receivable asset accounts for all appropriations and funds except 36X6020 and 36X6021. Recordings to this account will be automatically accomplished in the same manner as for transfers of receivable debits reflected in subparagraph a above. Differences between the amount of the inprocess accounts (also interoffice transfer accounts) will be recorded in the unassociated credits account 1239. The differences will be corrected by field stations unless a teletype is received from Hines DPC specifically indicating that this is an error in SF 219 posting which the DPC is taking action to clear immediately. Detailed accounting entries are specified in appendix M3.
c. Canceled Checks Inprocess. General ledger account 2086 will be used to control the processing of returned checks and other items processed under the returnedcheck procedures. All returned checks will be canceled and the recordings of these cancellations will be initially recorded under appropriation 36X0102 (C&P) or 36X0137 (Education). Accordingly, account 2086 is maintained only for these appropriations. The control amounts will be automatically entered as a credit to account 2086 and as a debit to account 2038. NOTE: The debit entry for items other than returned checks will be recorded either to account 1012 or 2038 depending on whether the deposits have been confirmed by the Treasury Department.) The amounts entered will be the amount input from the VA Form 246888b, ADP Transmittal Control-Accounting, which is the total of the covering SF 1098, Schedule of Canceled Checks. If the total of the individual checks is less than the amount entered in account 2086, the difference will be automatically entered as a debit to account 2086 and as a credit to account 2087, Unassociated Returned Checks (ADP). If the total of the individual checks is more, the difference will be entered as a debit to account 2087 and as a credit to 2086. These unassociated accounts will be corrected by the Hines DPC. If the returnedcheck input is rejected by the control run, the amount will be automatically recorded as a debit to account 2086 and as a credit to the unassociated account 2087. Corrections will also be accomplished by the DPC. The total of returnedcheck input applicable to other appropriations or funds will be entered as a debit to account 2086 and as a credit to 1012. Additional entries will be recorded under the applicable appropriation or fund as reflected in appendix M3. The total of the checks processed applicable to appropriation 36X0102 or 36X0137 will be recorded as a debit to account 2086 and as a credit to the expense account 4042. After the above entries are recorded, the balance of the inprocess account 2086 will have been reduced to zero.
d. PFOP and FDIB Inprocess Accounts. Under the deposit funds 36X6020 and 36X6021 general ledger account 2084, Undistributed Collections, has been established as an inprocess account. Recordings will be made similar to those above and as specified in appendix M35. Amounts of input from the accounting documents for interoffice transfers of PFOP to the DPC and similar transactions, will be recorded in account 2084 pending completion of the cycle processing. Account 2088, Unassociated Collections (ADP), was established to record differences between the accounting documents and the individual items processed. It will also be used to record the amounts of returned PFOP or FDIB checks that do not process against an existing master record. Whereas account 2084 controls the processing, the amounts in account 2088 will require corrective input from either the Hines DPC or the regional offices. These corrections are generally made by the Hines DPC based on information received from the regional office.
16C.27 ACCOUNTS PENDING FURTHER PROCESSING
a. General Ledger Account 2036, Disbursements Pending (ADP). This account has been established to temporarily record the credit entry for specific transactions under all appropriations or funds, except the basic appropriation within the system (36X0102, C&P, and 36X0137, Education) pending further processing which will provide voucher payment accounting entries. Account 2036 will not be maintained for appropriation 36X0102. Under the Education system the account will not be used for appropriation 36X0137 except as offsetting entries for A32 computer transactions. Details of the accounting entries are specified in appendix M3. The specific types of transactions for which account 2036 will be used are:
(1) Refunds of amounts previously withheld from benefits and applied to receivable balances by 06B input transactions. In addition to recording the credit entry, the receivable asset, or statistical, account will be reestablished by a debit entry. NOTE: Not applicable for the Education system or for appropriation 36X0102 under the C&P system.
(2) Refunds of overcollections by 06C input transactions. In addition to recording the credit entry, the unassociated account 1239 will be debited and reduced accordingly.
(3) Refunds of receivable waiver amounts that are in excess of the current receivable balances by 06C input transactions. The amounts recorded in account 2036 will be recorded as a debit to account 1239 which will reduce the unassociated amount accordingly.
(4) Reissuance of those returned checks by 06C input transactions for returned checks that established an unassociated account. Entries will be accomplished in the same manner as for those refunds shown in subparagraphs (2) and (3) above.
(5) Issuance of teletype hardship payments, 06C transaction. When the daily hardship payment voucher is recorded, account 2036 is debited. When the computergenerated 04T transaction is recorded to establish the appropriate class A receivable, account 2036 is credited.
b. General Ledger Account 4041, Undistributed Benefit Payments. This account has been established to temporarily record the expense of hardship benefit payments pending the processing of award or other pertinent payment authorization actions which will dictate the proper cost account. At the time the award or other pertinent payment transaction is processed, the applicable amount in account 4041 will be reduced accordingly and recorded as a debit to account 4042 and the appropriate cost account. If such a transaction is not processed by the end of the month following the month in which payment was made, the amount will be cleared by a debit to the receivable asset account 1217 and as a credit to account 4041.
c. General Ledger Account 4040-Recurring C&P Payments Pending-Education Advances and Prepayments-Expense Pending (ADP).
(1) C&P. This account is used for the temporary recording of recurring payment vouchers resulting from the update runs and applicable to a subsequent month for appropriation 36X0102. The entries will be recorded as a debit to account 4040 and as a credit to account 1010, Recurring C&P Payments Pending Disbursement-Education Advances and Prepayments (ADP). In the first cycle of the applicable month, these entries will be automatically reversed. At the same time, the amount reversed will be recorded as a current expense and disbursement: i.e., debit the expense account 4042 and the applicable cost accounts and credit account 2038. Accounts 4040 and 1010 will not be reported on any financial reports
(2) Education. This account is used for recording the amount of vouchers for subsistence and training allowances prepaid or paid in advance of the current month. This account will be maintained by the following series of analytical accounts to reflect the month of training for which advance or prepayment is being made.
4040.3 The first month after the current month.
4040.2 The second month after the current month.
4040.1 The third month after the current month.
Accounting entries will be recorded as a debit to account 4040.1, .2 or .3 as applicable, and a credit to account 1010.1, .2 or .3. Entries will also be made to debit account 1124 and credit 2038. In the first cycle of the following month the amount in the 4040.3 account will be costed by making debit entries to 1010.3 and 4042 (cost) and credit entries to 4040.3 Ind 1124. Amounts in 4040.2 will be moved to 4040.3 and amounts in 4040.1 will be moved to 4040.2. These 4040 and 1010 analytical accounts will not be reported in any financial reports.
16C.28 TYPES OF INTEROFFICE ACCOUNTING TRANSFER DOCUMENTS
d. VA Form 4-4564, Transfer of Disbursing Authority. This form is for use by VA hospitals to transfer PFOP accounts to the Hines DPC. It is also used to transfer funds between the Hines DPC and Central Office. Reference should be made to MP4, part V, chapter 2, section E, for necessary instructions.
b. SF 1081, Voucher and Schedule of Withdrawals and Credits. This form will be used by the Hines DPC to transfer deductions made from C&P benefits to the Philadelphia VA insurance center for application to insurance premiums, loans and liens, transfer chapter 31 deductions to regional offices, payments to VA hospitals for supplies, and return of gratuitous funds to field stations. This form is also used by the Check Claims Division, Bureau of Government Financial Operations, to transfer credits for SF's 1184 to the Hines DPC. Reference should be made to chapter 2, section J for instructions regarding transfer of insurance deductions from Hines DPC to the Philadelphia VA center.
c. Accounting Transfer Documents. Accounting transfer documents will be generated by the CP&E systems for the Hines DPC interoffice transfers in lieu of VA Forms 4-4564 and VA Forms 1038, Interoffice Transfer Voucher, when required by MP4, part V.
d. VA Form 24-6888a, ADP Transmittal Control-Accounting Transfer Document. This form has been designed for use under the automated CP&E systems by all regional offices in lieu of VA Forms 4-4564 and 1033 as required by MP4, part V. Reference should be made to figure 16C.01. In addition to the interoffice accounting transfer features, the VA Form 246888a has been designed to serve as a control for other fiscal transactions being submitted to the Hines DPC by regional offices.
e. VA Form 24-8281, Accounting Transfer Input Adjustments. This form has been designed for use under the CP&E automated systems by all regional offices to adjust certain erroneous totals input from the VA Form 246888a. Reference should be made to figure 16C.02.
16C.29 VA FORM 246888a, ADP TRANSMITTAL CONTROL-ACCOUNTING TRANSFER DOCUMENT
a. Purpose of VA Form 246888a. This form has been designed for use under the automated CP&E systems by all regional offices as the basic accounting and control document to be utilized for input when transmitting the following fiscal transactions to the Hine DPC:
(1) Transfer of asset accounts receivable debits (transaction code 04A).
(2) Transfer of personal funds of patients (transaction code 04C).
(3) Transfer of unapplied deposit fund collections (transaction codes 08A and 08B).
(4) Transfer of asset accounts receivable credits (transaction code 08C).
(5) Accounting transfer adjustments (transaction code A03).
(6) Establishments and increases of receivables not involving transfers of asset accounts receivable debits (transaction code 04E).
(7) Reductions of receivable balances not involving transfers of asset accounts receivable credits (transaction code 08E).
(8) Debit Vouchers, TUS Forms 5504, increasing receivables (transaction code A04 with supporting transaction code 04B code sheets).
(9) Resubmission of unassociated asset accounts receivable debits (transaction code 04D).
(10) Change of receivable master record from one file or payee number to another file or payee number (transaction code 04F).
(11) Hardship payments made locally (transaction code 04G).
(12) All code 06 transactions, except code 06G and 06B for teletype revolving fund loans as follows:
(a) Onetime payments (transaction code 06A).
(b) Onetime payments in conjunction with establishing or increasing receivable balance (transaction code 06B).
(c) One-time payments in conjunction with the clearance of unassociated accounts (transaction code 06C).
(d) Deposit fund (PFOP and FDIB) payments (transaction code 06D).
(e) Clearance of unassociated credit accounts by return to station, return to appropriation or application to a receivable balance (transaction code 06E).
(f) Withdrawals of deposit funds (PFOP and FDIB) without effecting payments (transaction code 06F).
(g) Clothing allowance (transaction code 06K).
(13) Miscellaneous receivable actions (all transactions coded 07).
(14) Certificate of deposits, SF 219, for collections deposited to the credit of Hines DPC (transaction code A08 with supporting transaction code 08 field service receipts).
(15) Authorizations to establish, change or discontinue the deduction amount (transaction code 18).
b. Preparation of VA Form 24-6888a. Separate VA Forms 246888a will be prepared for transmittal purposes covering those transactions for the C&P and the education systems. Care will be exercised in preparation in order to avoid transactions for one system being included in transmittals applicable to the other system. Preparation of the form is a joint responsibility of the Accounting and Input activities after receipt of the individual transactions. The Accounting activity will receive all code sheets (VA Forms 46694) from the Operations activity reflecting transaction codes 04A, 04C, 04D, 04E, 08A, 08B, 08C and 08E for the initial preparation of VA Form 246888a, clearing the unassociated account control file and for recording interoffice accounting transfer entries. (Note that code sheets with transaction codes 04D, 06C and 06E involving unassociated accounts will also be received from the Operations activity but for the purpose of clearing the unassociated control file only.) VA Form 246888a will be prepared in triplicate on a daily basis. The VA Form 46694 code sheets will be separated according to transaction code and deduction code to correspond with columns (B) and (C) of the VA Form 246888a. Further preparation will be as follows:
(1) Addingmachine tapes will be prepared for each group of VA Forms 4-6694 separated as above when there is more than one code sheet in a group. The total number of each group as sorted above will be entered in column (D) "NO. OF ITEMS". The total amount of each group will be entered in column (G) "AMOUNT, Dollars and Cents". Columns (D) and (G) are three and eightdigit fields respectively; entries to columns (D) and (G) will be preceded by zeros when necessary so that each field will be completely filled. The amounts will be obtained from the VA Forms 46694 and entered as follows:
LINE 1.04A-TRANSFER A/R DEBITS (MANILA ONLY)
(a) Count the number of VA Forms 46694 coded 04A with deduction code 3033 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 2.04A-TRANSFER A/R DEBITS (MANILA ONLY)
(a) Count the number of VA Forms 46694 coded 04A with deduction codes 40-45 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 3.04A-TRANSFER OF A/R DEBITS (MANILA ONLY)
(a) Count the number of VA Forms 4-6694 coded 04A with deductions code 47B in item 7.
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 4.04A-TRANSFER A/R DEBITS
(a) Count the number of VA Forms 46694 coded 04A with deduction code 22 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 11 A ONLY. Enter the total in column (G).
LINE 5.04A-TRANSFER A/R DEBITS
(a) Count the number of VA Forms 46694 coded 04A with deduction codes 21 or 29 B/F in item 7. Enter the total in column (D).
(b) Compile separate amount totals as shown in item 11A ONLY (one for deduction code 21 B/F and the other for deduction code 29 B/F). Combine both totals and enter the amount in column (G).
(c) The total amount will also be entered in column (H) after "6135/". The amount applicable to 21 B/F will be entered in column (H) after "1162.13" and the amount applicable to 29 B/F will be entered in column (H) after "1222.10".
LINE 6.04A-TRANSFER A/R DEBITS
(a) Count the number of VA Forms 46694 coded 04A with deduction code 60 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 7.04C-TRANSFER OF PFOP CASES
(a) Count the number of VA Forms 46694 coded 04C with deduction code 705 in item 7. Enter the total in column (D).
(b) Total the amounts shown in items 13A and/or 13B. Enter the total in column (G).
LINE 8.08A(B)-TRANSFER UNAPPLIED DEPOSIT FUND COLLECTIONS
(a) Count the number of VA Forms 46694 coded 08A or 08B with any valid deduction code in item 7. Enter the total in column (D).
(b) Total the amounts shown in items 11A and 11B or 12A. Enter the total in column (G).
LINE 9.08C-TRANSFER A/R CREDITS (MANILA ONLY)
(a) Count the number of VA Forms 46694 coded 08C with deduction code 3033 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 10.08C-TRANSFER A/R CREDITS (MANILA ONLY)
(a) Count the number of VA Forms 46694 coded 08C with deduction code 40 series B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 12A. Enter the total in column (G).
LINE 11.08C-TRANSFER OF A/R CREDITS (MANILA ONLY)
(a) Count the number of VA Forms 46694 coded 08C with deduction code 47B in item 7.
(b) Total the amount shown in item 12A. Enter the total amount in column (G).
LINE 12.08C-TRANSFER A/R CREDITS
(a) Count the number of VA Forms 4-6694 coded 08C with deduction code 22 B/F in item 7. Enter the total in column (D).
(b) Total the amount shown in item 11A. Enter the total in column (G).
LINE 13.08C-TRANSFER A/R CREDITS
(a) Count the number of VA Forms 46694 coded 08C with deduction code 21 or 29 B/F in item 7. Enter the total in column (D).
(b) Compile separate amount totals as shown in item 11A (one for deduction code 21 B/F and the other for deduction code 29 B/F). Combine both totals and enter the amount in column (G).
(c) The total amount will also be entered in column (H) before "/6135". The amount applicable to 21 B/F will be entered in column (H) after "1162.13" and the amount applicable to 29 B/F will be entered in column (H) after "1222.10".
LINE 14.A03-ACCOUNTING TRANSFER INPUT ADJUSTMENTS
(a) Count the number of lines completed on each VA Form 24-8281 (each line is a separate A03 transaction). Enter the total in column (D).
(b) Total the amount appearing in column (H) for each line entry. Enter the total in column (G). NOTE: When totaling the amounts, each amount will be added without regard to any amount which may be a decrease.
LINE 15.04E-ESTABLISH/INCREASE A/R-NO ACCOUNTING DOCUMENTS
(a) Count the number of VA Forms 4-6694 coded 04E with any valid deduction code in item 7. Enter the total in column (D).
(b) Total the amounts shown in items 11 A and 11 B, or 12A, or 13A and 13B. Enter the total in column (G).
LINE 16.08E-REDUCTION OF A/R-NO ACCOUNTING DOCUMENTS
(a) Count the number of VA Forms 46694 coded 08E with any valid deduction code in item 7. Enter the total in column (D).
(b) Total the amounts shown in items 11A and 11B, or 12A, or 13A and 13B. Enter the total in column (G).
LINES 17 AND 18 (Also 28 and 29 if Needed). These are to be used to transfer debits or credits to the DPC which require an accounting entry in regional office general ledger accounts and for which no other lines on VA Form 24-6888a are applicable.
EXAMPLE: An 08C Transfer of A/R credit for deduction code 60 B/F would be entered as follows:
Column (A)-Enter "TRANSFER A/R CREDITS".
Column (B)-Enter "08C".
Column (C)-Enter "60 B/F".
Column (D)-Count the number of VA Forms 46694 coded 08C with deduction code 60 B/F in item 7. Enter the total in column (D).
Column (E)-Enter "3626".
Column (F)-Enter "49".
Column (G)-Total the amounts shown in item 12A. Enter the totals in column (G).
Column (H)-Enter "1221/2031".
(2) The adding machine tape totals for each line amount will be identified by line number and transaction code. In addition, the preprinted appropriation or fund code (col. F of VA Form 246888a) will be included as part of the identification. Example: "Line 3 04A 24."
(3) All other lines and the "Transmittal Control Identification" will be completed by the Input activity.
(4) If either line 7, "Transfer of PFOP Cases," or line 8, "Transfer Unapplied Deposit Fund Collections," reflects an amount in column (G), the accountant will ascertain that sufficient funds have been deposited in account 2047 for each individual reflected on the applicable code sheets to cover the amount being transferred bearing transaction codes 04C, 08A and 08B. In addition, no such transfer will be made until the deferred credit period, if any, established for the deposit has expired. The VA Form 24-888a and the addingmachine tapes will be adjusted accordingly.
(5) The employee who prepared the VA Form 246888a will, upon completion, sign or initial the document in item 5.
c. Approval and Transmittal of VA Form 24-6888a. After completion of VA Form 246888a as specified above it will be signed in item 6, "Approved By" by the Chief, Accounting activity or his designee as the approving official. The date of the approval will also be entered. The original and duplicate copies, together with the supporting VA Forms 46694 and 248281 and the addingmachine tapes, will be transmitted to the Input activity. The triplicate copy of the VA Form 246888a will be retained in the Accounting activity pending return of the original copy from the Input activity.
d. Return of VA Form 24-6888a From the Input Activity. After the Input activity has completed VA Form 246888a and prepared the necessary data on the flexowriter, it will be returned to the Accounting activity. Reference should be made to MP6, part IV, supplement No. 2.1, and supplement No. 1.4, chapter 4, for further information pertaining to processing of VA Form 246888a by the Input activity, including completion and distribution of the form, verification, and the voiding of fiscal documents. If it is necessary for the Input activity to void a fiscal document, that activity will adjust the VA Form 246888a accordingly and annotate the "Remarks" section to reflect specific information as to the documents voided as required by MP6, part IV, supplement No. 2.1, paragraph 301.04. The following will be returned to the Accounting activity:
(1) Original copy of VA Form 246888a with all voided code sheets reflecting transaction codes 04A, 04C, 08A, 08B, 08C and A03 attached.
(2) VA Forms 46694 that have been input that reflect transaction codes 04A, 04B, 04C, 04D, 04E, 04F, 04G, 08A, 08B, 08C and 08E.
(3) VA Forms 41027, Field Service Receipts (copies), that have been input.
(4) VA Forms 248281, Accounting Transfer Input Adjustments, that have been input.
(5) All addingmachine tapes previously furnished by the Accounting activity.
e. Posting and Filing of VA Form 24-6888a. Upon receipt of the original copy of the VA Form 246888a and other documents reflected in subparagraph d above, the Accounting activity will review the "Remarks" section of the form for items voided by the Input activity. Items voided will have been annotated in this section and the amounts in column (G), "Amount," adjusted accordingly. The Accounting activity will insure that proper adjustments are made in column (H), "Accounting Entries," to reflect the voided documents. After verification of the form, recordings will be made in the local general ledger accounts as reflected in column (H). VA Form 246888a will be used as the posting media. As may be noted, these recordings are for the purpose of interoffice accounting transfers of debits and credits for receivable asset accounts, PFOP accounts and disbursing authority for the deposit fund, 36F3875. For line 12, "Accounting Transfer Input Adjustments," the recordings will be made from column (K), "Debit/Credit," of VA Form 24-8281 as required. Reference should be made to paragraph 16C.31 for information as to when recordings in the local general ledger accounts are required. Those voided documents will be included on the next VA Form 246888a unless the transfers are improper. After completion of the required postings, the accountant will complete items 3 and 4 of VA Form 246888a. The returned documents will then be processed as follows:
(1) The original VA Form 246888a, together with the related VA Forms 4-6694 and 248281 and the addingmachine tapes, will be filed. The triplicate copy of VA Form 246888a will be disposed of in accordance with MP4, Part X, Controller Records Control Schedule.
(2) The copies of VA Form 4-1027, Field Service Receipt (copy 2), used for input purposes will be disposed of in accordance with MP4, Part X.
16C.30 VA FORM 24-8281, ACCOUNTING TRANSFER INPUT ADJUSTMENTS
a. Purpose of VA Form 24-8281. This form has been designed for use by all regional offices under the automated CP&E systems for the purpose of adjusting accounting document transaction totals "amounts" input from VA Form 24-6888a as may be appropriate. This form will not be used to adjust SF 219 or TUS Form 5504 totals when such toals have been transmitted as shown on the confirmed copies.
b. Preparation of VA Form 24-8281. This form will be prepared in an original copy only. Preparation and subsequent adjustment of totals previously input are based on erroneous totals of those individual documents thus creating an outofbalance condition. In some instances, it will be necessary to effect corrections by submittal of individual code sheets rather than adjustments of totals. In all cases it will be necessary to maintain close liaison between the Accounting and Operations activities in order to correct the outof-balance conditions. Adjustments of totals by use of VA Form 248281 are limited to totals previously input for 04A, 04C, 08A, 08B, 08C transactions. Such adjustments will also be made for SF 219 and TUS Form 5504 totals but only if the input totals do not agree with the totals on the "confirmed" copies. The Hinges DPC usually makes the adjustments for these documents and notifies the station by teletype that the adjustment has been made. VA Form 208271, Notice of Exception-CP&E Input Transaction, will be the source document for preparation of VA Form 248281 in those instances when adjustments are proper. Reference should be made to figure 16C.02. The VA Form 248281 will be prepared as follows:
(1) Each VA Form 20-8271 will require a separate line entry on VA Form 248281. If necessary, more than one VA Form 24-8281 can be prepared for transmittal on VA Form 246888a.
(2) Items 1, "Document No.", 2, "Date," and 4, "R. O. No.," will be left blank for completion by the Input activity.
(3) Columns (A), (B), (C) and (D) "Input Document Ident.," will be obtained from the VA Form 24-6888a for which the totals are being adjusted. These data will be entered on VA Form 248281 in the spaces provided.
(4) Column (E), "Trans. Code," will be completed to reflect the transaction code for which the totals are being adjusted. If it is proper to adjust an SF 219 total, the transaction code will be A08, and for TUS Form 5504 total, the transaction code will be A04.
(5) Column (F), "Appro. or Fund," will be completed to reflect the last two digits of the applicable appropriation or fund for which the totals are being adjusted.
(6) Column (G), "Inc. or Dec.," will be completed to reflect whether the total is being increased or decreased. If the total is being increased, the letter "I" will be entered; and if it is being decreased, the letter "D" will be entered. No other abbreviations are permitted
(7) Column (H), "Amount," will be completed to reflect the amount of the adjustment (increase or decrease). This is an eightdigit field and the significant digits will be preceded by zeros.
(8) Columns (I), Processing Cycle, and (J), "Control No.," will be obtained and entered from Section IV, "Establishment of Unassociated Amount," of the applicable VA Form 208271 in the "Processing Control" block.
(9) Column (K), "Debit/Credit," will be completed to reflect the general ledger account numbers (both debit and credit) for which such adjustments will be recorded in the regional office accounts. Example: "6135/1217". If the adjustment is not proper for recording in the regional office accounts, a notation such as "No Entry Required" will be reflected in this column. Care must be exercised in determining if these adjustments are proper for recording in the local accounts. The adjustments will be recorded in the Hines DPC accounts. Accordingly the amounts, if any, recorded by the Hines DPC from the original input, together with the amounts to be recorded from the adjustment, should equal the amount originally recorded in the regional office accounts and, if additional posting to regional office accounts is necessary, the adjusted amount.
(10) An adding-machine tape will be prepared to reflect the total of the amounts for column (H), "Amount," of VA Form 248281, when more than one line is issued. The tape will also be prepared to reflect the number of lines used on the form. The line total is for entry in column (D), "No. of Items." of VA Form 246888a and the total of the amounts is for entry in column (G), "Amount," of VA Form 246888a.
(11) The accountant preparing the VA Form 248281 will sign or initial Item 5, "Prepared By," and reflect the date of preparation.
(12) Item 6, "Approved By," of VA Form 24-8281, will be signed by the Chief, Accounting activity or his designee as the approving official. The date of the approval will also be entered.
(13) Item 7, "Date Posted," will be completed at the time the adjustments are recorded as shown in paragraph 16C. 29e.
16C.31 MONTHLY CUTOFF OF ACCOUNTING TRANSFERS
Careful observance must be given to the Hines DPC Schedule of Operations, RCS 331, by the Accounting activity so that the general ledger recordings in both the Hines DPC and the regional office accounts will be accomplished during the same month. If not, a difference will exist in the interoffice transfer accounts. Each station will review the Hines DPC monthly schedule of operations for each system and establish a cutoff date for posting of VA Forms 246888a to the current month general ledger accounts. Transfers subsequently transmitted will be recorded in the next month's activities.
16C.32 RECONCILIATION OF INTEROFFICE TRANSFER ACCOUNTS
Interoffice accounts prescribed by appendix M3 for use between regional offices and the Hines DPC, must be reconciled and corrective actions, when necessary, taken promptly. Any corrective actions will be made by the regional offices. To assist in effecting reconciliations and necessary corrective actions, the Hines DPC will issue monthly listings of interstation transfer activities pertaining to the Hines DPC and regional office accounts. Although the interoffice transfer accounts are closed into the capital account at the end of each fiscal year, corrections for prior year accounts will nonetheless be required. Corrections for prior year interoffice transfer accounts, when required, will be recorded in the current year accounts.
16C.33 UNASSOCIATED ACCOUNTS-GENERAL
Reference should be made to DVB Supplement 1, Revised, MP4, part IV, chapter 12, for explanation, corrective actions and other information pertaining to unassociated accounts.
16C.34 CONTROLS FOR UNASSOCIATED ACCOUNTS
The regional office Accounting activity will maintain controls over all unassociated accounts. As VA Forms 208271, Notice of Exception-CP&E Input Transaction, are received by the input activity, those completed in section IV reflecting an unassociated amount will be forwarded to the Accounting activity. Local controls will be established in the Accounting activity to reflect pending actions. The forms will then be forwarded to the Operations activity except for those reflecting that the document is more or less than the input. After corrective actions are taken, the Operations activity will return the VA Form 208271, together with the corrective code sheets. The VA Forms 208271 will be annotated to reflect the correction action date and filed in a completed control file. The pending file will be adjusted accordingly. Tho control file will be maintained in such manner as will denote those unassociated accounts that have not been corrected.
16C.35 OUTOFBALANCE CONDITIONS
a. General. VA Forms 208271 completed as to section IV and reflecting the document is either more or less than input, denotes an outofbalance condition for which an unassociated account has been established. lt also denotes that the unassociated account must be cleared. (Ref. figs. 16C.03, 16C.04, 16C.05.)
b. Clearing Unassociated Outof-Balance Conditions. Close coordination is required between the Operations, Input and Accounting activities to determine the reasons why an outofbalance condition occurred. This may occur due to improper preparation of VA Forms 246888a, flexowriter errors, or edit errors appearing on the Cycle Control Report No. 1. The specific corrective actions to be taken will depend on the nature of the errors. If the error is only in the amount that was made input for processing by the computer, VA Form 248281 will be prepared by the Accounting activity as specified in paragraph 16C.30, to effect appropriate adjustment of the total amount. The VA Form 208271 will then be annotated as to date of corrective action and will be filed in the completed control file. if there is no such error in the total amount, the Operations activity will determine the corrective action necessary as provided in DVB Supplement 1, Revised, MP4, part IV, chapter 12. The VA Form 208271 will be forwarded to the Operations activity and controls maintained in the same manner as other VA Forms 208271. In the outofbalance situations, close coordination between the Accounting and Operations activities is necessary to effect corrections. In some instances. it may be advantageous to adjust the totals to agree with the total of the individual documents input and processed, whereas in most instances, it may not be advantageous.
16C.36 ADJUSTMENTS OF SF 219 AND TUS FORM 5504 TOTALS
The totals of SF's 219 and TUS Forms 5504 will not be adjusted when such totals have been recorded correctly. If not, the Hines DPC will assist regional offices in effecting corrections as provided by DVB Supplement 1, Revised, MP-4, part IV, chapter 12, paragraph 12.06. The Hines DPC usually makes these adjustments and notifies the station of the adjustment made. Reference should be made to figure 16C.05 which shows that the amount input and processed for the SF 219 (A08 transaction) is more than the total of the related VA Forms 41027 (08 transactions) input and processed. Note that if an 08 transaction is rejected during the edit run, an outofbalance condition will occur. These rejected items will appear on the Cycle Control Report No. 1.
16C.37 PERSONAL FUNDS OF PATIENTS
a. Receipt of Deposits in Regional Offices. Funds received in regional offices applicable to PFOP accounts (36X6030) of the Department of Veterans Benefits will be initially deposited to the credit of the local station as provided by MP4, parts I and V. All regional offices, except the Manila VA regional office, will then prepare VA Form 46694, using transaction code 04C, to initiate transfer of the account to the Hines DPC. If a deferred credit period for any collection was required in accordance with MP4, part I, the VA Form 4-6694 will not be prepared until the check has been paid by the bank on which it was drawn. Accounting entries for the transfer of the accounts to the Hines DPC will be recorded in the regional office accounts as provided on the covering VA Form 246888a, ADP Transmittal Control-Accounting Transfer Document.
b. Maintaining PFOP Accounts by the Manila VA Regional Office. The Manila VA regional office will maintain PFOP accounts in accordance with MP4, parts I and V. When veteran's records under the jurisdiction of that office are transferred to another regional office, any PFOP funds involved will be transferred to the Hines DPC. VA Form 46694, using transaction code 04C, and a covering VA Form 246888a will be used to transfer the funds to the Hines DPC.
c. Transfer of PFOP Accounts to Manila VA Regional Office. PFOP accounts in the C&P system will be transferred to the Manila VA regional office in the same manner and under the same circumstances as receivables. Details for transfers of receivables are contained in DVB Supplement 1, Revised, MP-4, part IV, paragraph 3.17. The accounting entries to record the transfer by the Hines DPC will be as prescribed by appendix M-3-5. A computergenerated printout will be used in lieu of VA Form 44564, Transfer of Disbursing Authority, to effect the accounting transfer. Entries to be made by the Manila VA regional office upon receipt of the transfer will be as prescribed in appendix A.
d. Other Transactions Involving PFOP Accounts. Accounting entries as prescribed by appendix M35 will be automatically accomplished based on the type of transaction processed.
16C.38 FUNDS DUE INCOMPETENT BENEFICIARIES
All FDIB accounts (36X6021) are maintained by the Hines DPC. Accounting entries as specified in appendix M35 will be automatically accomplished based on the type or transaction processed. In the event FDIB accounts should be transferred to the Manila VA regional office accounting entries specified in appendix M35 will be used to direct the transfer. The Manila VA regional office will record subsequent accounting entries as prescribed in appendix A.
16C.39 DEDUCTIONS FROM CP&E BENEFITS-GENERAL
All accounting entries for deductions from CP&E benefits will be automatically accomplished by the Hines DPC as provided in appendix M3. Accounting entries for application of the amounts deducted to receivables for which the Hines DPC maintains accountability will also be automatically accomplished by the Hines DPC as provided by appendix M3 depending on the applicable appropriation or fund involved. If the amounts deducted are for application against receivables for which the regional office has accountability or for other purposes as shown herein, the amounts deducted will be transferred in 36F3875 to the applicable station. Accounting entries to be recorded by the receiving station are not prescribed in this issue.
16C.40 REGIONAL OFFICE ACCOUNTABILITY RECEIVABLES
Accountability receivables are defined for purposes of these instructions as those for which the regional office maintains asset or statistical accounts and the Hines DPC maintains memorandum records only. Deductions made by the Hines DPC for application against these receivables will be forwarded monthly to the regional office maintaining the accounts. The station number in the Hines DPC master record of the receivable identifies the station to receive the funds, except for insurance miscellaneous receivables as shown in paragraph 16C.44. Subsequent accounting entries to be accomplished by regional offices upon receipt of the funds are prescribed by the applicable chapters of this manual.
16C.41 INCOME TAX LIENS
Deductions made by the Hines DPC for income tax liens will be transferred to the applicable regional office in 36F3875. Accounting entries reflecting receipt and subsequent disbursement of the funds to the Internal Revenue Service will be accomplished by the regional office as provided in appendix A.
16C.42 INDEBTEDNESS-OTHER GOVERNMENT AGENCIES
Deduction made by Hines DPC for application against indebtedness accounts of other Government agencies, including the annuity costs of the Retired Serviceman's Family Protection Plan, and the Survivor's Benefits Plan will be processed in the same manner as those in paragraph 16C.41.
16C.43 INSURANCE PREMIUMS, PREMIUM ARREARAGES, LOANS AND LIENS
Deductions made by the Hines DPC for the above purposes will be transferred by SF 1081 to the Philadelphia VA insurance center. Accounting entries will be automatically accomplished at the Hines DPC to reflect the deductions from benefits and the transfer as provided by appendix M3-1. Accounting entries reflecting receipt and disposition of these funds by the Philadelphia VA insurance center are prescribed in chapter 8.
16C.44 INSURANCE MISCELLANEOUS RECEIVABLES
Deductions made by the Hines DPC for application against insurance overpayments will be transferred to either the Philadelphia or the St. Paul VA insurance center, as applicable. The first digit of the receivable "reference number" identifies the station to receive the funds. The code "P" denotes the Philadelphia VA insurance center and the code "S" denotes the St. Paul VA insurance center. Accounting entries reflecting receipt and disposition of these funds by the receiving station are prescribed in chapter 8.
16C.45 MORTGAGE LOAN REPAYMENTS
Deductions made by the Hines DPC for mortgage loan repayments (deduction codes 11 and 12) will be transmitted at the end of each month to the Austin DPC. These deductions will be transmitted from Hines to the Austin DPC from magnetic tape using digitronics equipment. A computergenerated transfer document (appropriation 36F3875) covering the amount of deductions transferred, by deduction code, will be mailed to the Austin DPC by Hines.
16C.46 VR REVOLVING FUNDS LOANS
All accounting for the Vocational Rehabilitation, VA Revolving Fund is accomplished by the Hines DPC. Accordingly, accounting entries prescribed in appendixes M31 and M32 for deduction from benefits and application to the loan balances will be automatically accomplished by the Hines DPC.
16C.47 PERSONAL FUNDS OF PATIENTS
The type of deductions applicable to this paragraph are those made from C&P benefits and credited to the PFOP accounts maintained by the Hines DPC. All accounting entries will be automatically accomplished as prescribed in appendixes M31 and M35.
16C.48 VETERANS MORTGAGE LIFE INSURANCE (VMLI)
Deductions made by the Hines DPC for the above purpose will be scheduled on a VA Form 41423, Voucher and Schedule of Payments, for issuance of a check payable to the Office of Veterans Mortgage Life Insurance in the total amount of VMLI deductions made. In addition to the above two listings, will be generated as indicated below
a. INSLIST I-This is a listing of recurring VMLI deductions.
b. INSLIST II-This is a list of accounts changed from last month, i.e. establishments, discontinuances, etc.
The above listings will be mailed to the St. Paul VA insurance center.
16C.49 COMPENSATION AND PENSION ACCRUALS
a. General. Accruals for awarded benefits due and payable under appropriation 36X0102 that have not been recorded in the expense accounts will be automatically accomplished in the C&P system as described herein.
b. OneTime and Retroactive Payments. Processing cycles 2, 3 and 4 of each month will be utilized to calculate the amounts by cost account of the one-time and retroactive payments to be accrued at the end of the month. It has been determined that such payments processed in these cycles satisfactorily represent the amount of awarded benefits due and payable at the end of the prior month, but not recorded in the benefit payment expense accounts as of the end of the prior month. It has also been determined that such amounts for the prior month will satisfactorily represent the amount of these unrecorded awarded benefits for the current month. Reference should be made to subparagraphs c and d below, for additional amounts to be accrued and to subparagraph e below, for the method of recording.
c. Suspended Accounts-Income Questionnaires. During the annual income questionnaire processing period (JanuaryJune) a large portion of the pension accounts are suspended pending the return and processing of the income data. It has been determined that, in most cases, the payments are resumed after processing the income questionnaire data. Accordingly, the amounts of these suspended accounts will be accrued since they have not been entered in the expense accounts. At the end of each month, the amounts of the suspended accounts will be calculated by the applicable cost account. The monthly rate multiplied by the number of months in suspense for each account will be utilized for this purpose. These amounts will be added to amounts obtained in subparagraph b above, for accrual purposes.
d. Payments of Suspended Accounts. The amounts of onetime and retroactive payments to be accrued in cycles 2, 3 and 4 as reflected in subparagraph b above, will be reduced in the amounts of such payments that represent resumption of suspended accounts. This will avoid duplicate recordings of these expenses.
e. Accounting Entries. Accounting entries will automatically be recorded in Hines DPC general ledger accounts 342075, Accrued Benefits Payable, and 344046, Benefit Payment Accrued, and to the applicable cost accounts as provided by appendixes M1 and M31. In recording the cost accounts, the 3600 series will be used in lieu of the 3400 series reflected in appendix M1., in order to identify and control the accrual amounts. The last two digits of the 3600 series will agree with the last two digits of the 3400 series; i.e., cost account 3620 will represent 3420 in appendix M1. In reporting the Summary of Benefit Payment Expense Accounts, the amounts in the 3600 cost accounts will be combined with and reported as the 3400 series. This will apply to VA Form 4-1350, Trial Balance of General Accounts, and the required punched cards; however a separate printout reflecting only the 3600 series of cost accounts will be prepared and submitted with the VA Form 41350.
16C.50 EDUCATIONAL TRAINING ALLOWANCE ACCRUALS
a. General. The type of training is the determining factor as to when payments of training allowances are to be made under 38 U.S.C. chapters 34 and 35. Allowances for some types or training are paid before the allowance is earned (advance and prepayments) while payment for other types of training are made after the allowance has been earned. There are no accruals for benefits awarded and paid in advance or on a prepayment basis. However, accruals will be made for those benefits awarded but not recorded as an expense in the current month.
b. Responsibility for Accruals. All of the above accruals will be accomplished at the administration level and entered into the administration accounts. The amounts to be accrued will be based on the number of beneficiaries in training by type of training as reflected in the statistical accounts of the education automated system. NOTE: These statistical accounts are maintained for all trainees regardless of whether payments are made under the manual or automated system. Entries will be recorded in the administration general ledger accounts 352075 and 354046 as provided in appendix M-3-1. These amounts will also be recorded in the applicable cost accounts as reflected in appendix M-1.
16C.51 COLLECTION ACCRUALS
a. General. In accordance with the U.S. Treasury Fiscal Requirements Manual, all collections applicable to the CP&E system that are received during the month will be recorded in the accounts of the system in the month they are received and reported on the SF 224, Statement of Transactions, or that month.
b. Method of Determining Accrual Amounts. Each regional office will dispatch a teletype to the Hines DPC as early as possible the morning of the first workday of each month reflecting the amounts of undeposited collections as of the end of the previous month and the amounts of deposited collections not recorded in the Hines DPC accounts during the previous month. Similar information is also furnished for uncollectible checks. Reference should be made to DVB Supplement 1, Revised, MP4, part IV, paragraph 3.15, for further details regarding this teletype report. It should be noted that data reported to the Hines DPC pertain only to collections and uncollectible checks applicable to the CP&E automated system.
c. Recording Amounts Accrued. The Hines DPC Finance Division will determine from the above teletype reports the amounts of collections to be accrued. All accruals for undeposited collections and unrecorded collections not distributed will be recorded and reported under the deposit fund 36F3875. Reference should be made to appendix M36 for the accounting entries.
SECTION D. ACCOUNTING OF THE POST-VIETNAM VETERANS EDUCATIONAL
ACCOUNT TRUST
FUND 36X8133
(CHAPTER 32, TITLE 38, U.S.C.)
16D.01 BACKGROUND
The Post-Vietnam Era Veterans' Educational Assistance Program (VEAP) hereinafter referred to as chapter 32, was authorized by Pub. L. 94-502 and effective January 1, 1977. Under the program, each serviceperson electing to participate agrees to contribute $25 to $100 per month up to a maximum of $2700. Pub. L. 96-342, Section 903, Noncontributory VEAP-Educational Assistance Pilot Program, was enacted September 8, 1980. Under this section of the program each serviceperson is entitled to have the service departments pay, on his/her behalf, the participant portion of the contribution to the trust fund. When the participant enters training, matching funds are provided by the Department of Defense through the individual service branches, at the rate of $2 for each $1 contributed by the participant. In addition, individual service departments are authorized to contribute to the account of each participant such contributions as they deem appropriate.
16D.02 PURPOSE
The purpose of this section is to implement principles and standards contained in MP-4, part V, as they pertain to chapter 32 accounting. The policies and procedures contained herein will be followed by VA with regard to chapter 32 accounting.