DoD Financial Management Regulation Volume 5, Chapter 03 … · 2013. 12. 4. · DoD Financial...

DoD Financial Management Regulation Volume 5, Chapter 03

CHAPTER 03

KEEPING AND SAFEGUARDING PUBLIC FUNDS

0301 CASH OPERATIONS

030101. Appropriated Funds

A. Deposit Funds. Amounts appro-priated by the Congress are held in an expendi-ture account by the Treasury subject to disburse-ment by DOs of the United States. Disburse-ments may be made by Electronic Funds Trans-fer (EFT), Treasury check, or cash. Cash fundsare obtained by DOs as described in chapter 07of this Volume. Every disbursing office autho-rized to make disbursements is identified by aDSSN. Each disbursement of funds is chargedby the Treasury to the DSSN making the dis-bursement. DOs outside the United States areauthorized to maintain official checking accountswith banks designated by the Secretary of theTreasury in accordance with regulations outlinedin chapter 14 of this Volume. These specialaccounts outside the United States denominatedin local or third country currencies and areknown as limited depositary accounts (LDAs).

B. Cash Funds. When it is necessaryto make all or some disbursements in cash, uponapproval of the commander or other authority,DOs are authorized to maintain on hand, at theirown personal risk, currency and coin requiredfor official disbursements and accommodationtransactions.

C. Selection of Payment Method.Subject to the policies outlined in this Volume,payments may be made by EFT, check, or cash.In the United States, EFT is the preferred methodof payment and shall be utilized to the maxi-mum extent possible. Treasury checks (ratherthan cash) are the preferred method of paymentwhen use of EPT is not practical.

030102. Cash Held at Personal Risk. Fundsthat qualify as cash held at personal risk includeU.S. currency and coin on hand foreign currencyand coin on hand; imprest funds; change funds;and cash on deposit in an LDA. Cash held atpersonal risk is for making miscellaneous cashpayments, making change, conducting accommo-

dation exchanges, and other specifically autho-rized transactions.

*030103. Approving Authority. Service com-manders of DOs, deputies, agents, and cashierswithin their commands are the approving au-thority for granting requests to hold cash fundsat personal risk. The DFAS Center Directors ofDOs, deputies, agents, and cashiers within theirorganizational structure, to include defenseaccounting officers (DAOS), are the approvingauthority for granting requests to hold cash atpersonal risk. Cash on hand must be kept to theminimum necessary to meet normal require-ments, To ensure that good cash managementprocedures are in effect within DoD, the approving authority shall review each request to ensurethat it is in- line with the total non-payroll re-quirements.

030104. Requests for Approval. Each DO shallrequest authority to hold cash at personal riskfrom the approving authority. Scheduled pay-day cash requirements, including the amountrequired to cash payday paychecks, shall not beincluded in the request. The approving authori-ty is responsible for ensuring the amount of therequest is within the guidelines set forth belowand that management controls exist to ensurethat routine reviews of cash requirements arebeing conducted. A new request to hold cash atpersonal risk shall be submitted semiannually (orwhenever a review of cash requirements willresult in a major change), allowing sufficientapproval time for the cash authority to becomeeffective on October 1 and April 1 of each fiscal .year. Requests to hold cash at personal risk shallbe made in writing and shall include the name,title, and duty station of the accountable request-or; a description of the payments and transac-tions requiring the use of cash; a statementattesting that adequate facilities are available tosafeguard the cash; and a breakdown of wherethe cash will be held by accountable position.For emergency and extraordinary expense fundssecurity concerns may require omission of theduty station, description of payments, location offacility, or other information that may compro-mise classified information. However, this

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Volume 5, Chapter 03 DoD Financial Management Regulation

information shall be kept on file and availablefor review by cleared personnel. The requestshall include not only the amount to be held bythe DO but shall also include the amounts to beheld by all deputies, agents, and cashiers.Approval of all requests shall be indicated by anappropriate endorsement and the original re-quest shall be returned to the DO for retention.

030105. Determining Cash Requirements

* A. General. In considering their cashrequirements for disbursing and accommodationtransactions, DOs shall consider daily cashcollections over a representative period of timeand average the results. If daily cash collectionsexceed disbursement and accommodation needs,no further computation is necessary. Otherwise,compute the cash requirements according tosource and availability as shown in table 3-1.The portion of the DO’s request to hold foreigncurrency at ‘personal risk may be stated in for-eign currency units to preclude temporaryincreases due to extreme currency fluctuations.The following types of disbursements which areauthorized and/or required should be consid-e r e d i n determining the minimumcash/negotiable instruments a DO must hold atpersonal risk to meet normal daily cash transac-tion requirements

1. Routine cash payments.

2. Emergency cash payments,e.g., emergency leave, etc.

3. Commercial contract travelerschecks for "frequent traveler" travel advances.

4. Cash travel advances for non-frequent temporary duty travelers and perma-nent change of station travelers.

5. Foreign currency require-ments for accommodation exchanges.

6. Requirements for personalcheck cashing accommodation transactions. (Seechapter 4.)

7. Change and imprest fundrequirements.

8. Remote/satellite deputy dis-bursing officers and agents.

B. Special Circumstances. Whenspecial circumstances require DOs to increasetheir cash holdings beyond the amounts set forthabove, the circumstances and duration of theexpected need for increased cash shall be de-tailed in the request for approval to increase cashheld at personal risk. The approving authoritymay authorize holding amounts temporarily inexcess of the limits described above based on thecircumstances provided. If the circumstances aremore than temporary (over 30 days) or areexpected to become permanent, the DO shallrecompute the cash requirements based on theaddition or deletion of anticipated services andrequirements and submit a new request forapproval.

C. Cash Collections. Coin and cur-rency received as cash collections may be heldfor operating cash requirements up to the

amount authorized to be held at personal risk.Cash collections that increase cash on handabove the authorized limit shall be depositedimmediately.

030106. Payroll Cash. Payroll cash is the cashrequired to meet mid-month, end-of-month, orspecial payday requirements. DOs can forecastthese requirements using historical data andcurrent personnel assigned figures. It should beordered and withdrawn from the institution oractivity providing cash as close to the actualpayday as practical. Any excess amount drawnthat results in the DO exceeding the authorizedlimit for cash held at personal risk should bedeposited no later than the next business dayfollowing payday.

030107. Obtaining Cash Funds for DisbursingPurposes

A. P rocurement by Exchange-for-CashChecks. DOs are authorized to draw exchange-for-cash checks as described in chapter 07 of thisVolume for procurement of cash necessary tomeet authorized requirements. Funds can beobtained from other DOs, an FRB, FRB branch,or any commercial bank willing to provide theservice. If the DO is unable to go to the bank totake possession of the funds due to excessiveworkload or location, arrangements can be made

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with the FRB or bank to ship the funds byregistered mail or armored car. The commandershall approve and fund, as required, this type ofdelivery.

B. Notification to the Bank. Asrequired, DOs shall provide the bank with ad-vance notice of their ‘cash requirements. At thetime of notification the DO should ascertain andprovide any other additional requirements of thefinancial institution such as date currency re-quired; identification required; denominationsrequired; fees charged; and any policies orprocedures pecliar to the particdar institution(i.e., letter of introduction, immediate credit,etc.).

C. Immediate Credit Procedures

1. Requirement. A limitednumber of banks have negotiated agreementswith the Treasury that permit the bank to receiveimmediate credit when cashing an exchange-for-cash check for DOs to, obtain payroll cash (re-ferred to as military payroll check by the Treas-ury). DOs who obtain their payroll cash fromone of the banks so designated shall notify theTreasury by Telecopy-FAX or by message ortelegram addressed to: U.S. Treasury Depart-ment, Financial Management Service, GeneralLedger Branch, (ATTN:MTAS), Washington, DC.There are two Telecopy-FAX lines available forthis purpose: Line 1/Burroughs-Dex 3600 (Pana-fax), (202) 566-3020; Line 2/Xerox-Telecopier 200,(202) 633-7728.

2. Notification. Notificationshould arrive at the Treasury at least 2 daysbefore the transaction is to take place and shouldinclude the name and location of the disbursingoffice; the name and address of the bank; theamount of the check; the date the check will bepresented to the bank (shall be same day cash ispicked up); a statement that the bank will berequesting immediate credit; and the disbursingoffice point of contact and commercial telephonenumber. Do not use DSN numbers. If an erroris detected, a correction shall be transmittedimmediately. In the event that the check is notexchanged for cash, the DO shall notify theTreasury immediately.

D. Protection of Currency in Transit

* 1. Notification to Commander.When a DO or any other person leaves thedisbursing activity with official, cash funds inexcess of $10,000, or for the purpose of pickingup official cash funds in excess of $10,000, theinstallation commander and the security policeshall be notified. Such notice may be madethrough the command duty officer or other dutyofficer by reporting the time of departure, desti-nation, estimated time of return, amount, and thesource or disposition of the cash funds, as appro-priate, for, entry in the ship or station log.

2. Transporting Cash. Cashshall be secured at all times. Safeguarding ofsuch funds is a command responsibility. Specifi-cally, the responsibility for providing securityrests with the commander of the activity whorequested such funds be made available. In thisregard, the decision of whether or not to have anarmed escort, how many, or the type of trans-portation to be used is all part of the command’sresponsibility. The command should considersuch things as amount of funds to be protected,the distance and terrain to be covered, type oftransportation available, and local security forceswhich may be called upon. .

3. Liability. The deputy, agentor cashier who has signed for the funds is pecu-niarily liable for such funds until their return tothe DO. If a deputy, agent, or cashier feels thatadequate security has not been provided by thecommand, then the agent may refuse to disbursesuch funds and return the funds to the DO.

E. Verification of Money. The DOshall verify all cash received prior to acceptance.Non-sealed money shall be verified by actualcount prior to acceptance or immediately uponreceipt of shipment. Sealed new money bricks(presented with the FRB’s packaging intact) canbe verified by bundle count at the DO’s risk.When the bundle is needed, the bundle shouldbe verified immediately upon opening withindividuals standing by to witness both thebreaking of the seal and the count verification.Discrepancies shall be reported immediately byissuing a claim to the Treasury via the bank fromwhich the money was obtained. Claims shallidentify the bundle/brick in question and in-clude a signed statement from the witnesses.

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The Treasury does not normally approve theseclaims. If the claim is not approved, normalrequest for relief procedures apply. Receipts byshipment shall be accepted and verified in frontof the witnesses immediately upon receipt inaccordance with the above procedures, depend-ing upon how the money is packaged.

F. Expenses. Bank charges andshipping costs that may be incurred when pro-curing U.S. currency shall be charged to theoperation and maintenance funds of the disburs-ing activity.

G. Registered Mail Shipments of Cur-rency. This method of obtaining funds is highlydiscouraged. If no other sources of cash areavailable and cash must be obtained using thismethod, it shall be accomplished by sending anexchange-for-cash check to an FRB via registeredmail. Also, the DO shall make arrangementswith the FRB to pay the registered mail cost.As provided in the previous subparagraph, costs,incurred in procuring U.S. currency shall becharged to the operation and maintenance fundsof the disbursing activity. Upon notification thatthe shipment has been made, the DO shall takeaction to alert the shipper to trace the funds ifthey have not been received within a reasonableperiod of time; maintain a copy of the exchange-for-cash check and report the check as funds intransit on the SF 1219 until the cash is receivedfrom the FRB; and if the cash or any portion ofthe order is not received in a reasonable time,initiate diligent action as described in chapter 05of this Volume.

H. Obtaining Cash by Transfer fromOfficer Relieved . The obtaining of cash funds bytransfer from axiother DO without the issuanceof an exchange-for-cash check is authorized onlyupon the relief of a DO and only from the DObeing relieved.

0302 CASH REVIEW REQUIREMENTS

030201. Quarterly Cash Verification

* A. Purpose. The quarterly cashverification is the physical count of the cash,negotiable instruments, and other assets thatcomprise a DO’s total accountability (includingcash, negotiable instruments, and other assets inthe custody of all deputies and agents). It is a

management control that, along with othercontrols, can be used to gauge the overall healthof a disbursing operation. It is not meant toalleviate management’s responsibility to directand monitor all facets of a disbursing operation.

B. Appointing the Cash Verification Team. The verification shall be conducted by ateam of disinterested persons appointed by tinecommander. The appointment shall be made inwriting and include at least two qualified per-somel. At least one of the personnel must haveeither accounting or disbursing experience. It isin a command’s best interest to use the mostcompetent personnel available. In the casewhere the DO is also the commander, the nexthigher commander in the administrative chain ofcommand shall appoint the team. At small orremote locations, it maybe desirable to limit theteam to one member or have members appointedand provided from serviced or associated com-mands. Cash verification team members shallnot be in the DO’s chain of command. If possi-ble, one” member should be equal or senior inrank to the accountable individual. For imprestand change funds, especially those held atinstallations or activities other than the installa-tion or activity of the DO, the commander whoauthorized the establishment of the fund andappointed the imprest fund cashier or changefund custodian is responsible for appointing thecash verification team. As stated above, verifica-tion team members may be appointed andprovided from serviced or associated commands.In all cases, the appointing commander shall re-quire the cash verification team (or individual) toperform a verification of all funds held by depu-ties, branch office cashiers, disbursing agents,paying agents, collection agents, imprest fundcashiers, or change fund custodians, at least onceeach quarter. Cleared persomel will be appoint-ed for the verification of emergency and extraor-dinary expense funds.

C. Cash Verification Procedures.Except as modified by this paragraph, the re-quirements of this Volume shall be met by thecash verification team in conducting cash verifi-cations. When desired by the commander ap-pointing verifying officials, the DO shall conducttraining for the verifyingvide written instructionsThe specific proceduresverification are contained

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officials and /or pro-with check-off lists.for conducting thein appendix A. The


team and the commander are jointly responsibleto ensure that the verification is conductedrandomly throughout a quarter. Verificationsthat are continuously held at or near the end ofa quarter are counter productive. The quarterlycash verification may be omitted for any quarterin which a cash verification is made by represen-tatives of an area audit office, a disbursing on-site examination team, or transfer of accountabil-ity has occurred.

D. Report of Verification

* 1. General. A written report ofthe results of each verification shall be made tothe commander and a copy of the report provid-ed to the DO. If funds are found to be in excessof that authorized to be held at personal risk inaccordance with paragraph 030105 of this chap-ter, the report shall be expanded to so state.Any shortage or overage in the DO’s account-ability shall be reported as prescribed in chapter06 of this Volume. The verifying official(s) shallmake an entry on the face of the DO’s dailystatement of accountability, setting forth theresult of the verification in substance as follows:

“On (date) at (time) , the undersignedverified by actual count, cash in the amountOf $ , together with all documentssupporting collections and disbursements,which (is)/ (is not) in agreement with thisdaily statement of accountability.

*

Signature and Rank of Verifying Official”

2. Limitations. Each report tothe commander shall begin with the statement“The quarterly cash verification is meant only toverify that cash and other assets for which theDO is accountable agrees with the total account-ability amount recorded as on-hand on the DO’sdaily statement of accountability. It does notcertify the overall health of a disbursing office.Strong management controls exercised by theappropriate members within the chain of com-mand are mandatory and necessary to preventand preclude major loss or fraud.”

0303 SAFEGUARDING FUNDS AND RE-LATED DOCUMENTS

030301. General. This section sets forth theresponsibilities of commanders and DOs forsafeguarding public funds and the related instru-ments and documents. Its provisions are equallyapplicable to deputies, agents, cashiers, andother custodians of public funds. DOs shouldhold the number of accountable positions thatrequire the storing of public funds to a mini-

mum. The most secure container that is avail-able (vault, safe, etc.) to a DO shall first be used .for safeguarding currency; undelivered checksand bonds; negotiable instruments; public vouch-ers; storing of blank U.S. Treasury checks, limit-ed depositary checks, and U.S. savings bonds;signature plates; safekeeping of valuables; andother records in that order. The commandsecurity program should be written to take intoaccount the maximum amount of each of theseitems that would normally be on hand at anygiven time. Public funds and documents shallnot be stored in the same containers as clasifiedmaterial and documents.

030302. Responsibilities

A. Commander. The commander isresponsible for:

1. Ensuring that every individu-al entrusted with public funds is provided avault, safe or other adequate secure facility (e.g.,a strong box) for exclusive use and accessibleonly to that individual. If it is not possible toprovide separate safes, separate locked compart-ments in one safe or strong boxes stored in onesafe or vault shall be provided. Public fundsshall not be entrusted to two or more individ-uals. Public funds shall never be merged withany other funds.

2. Developing a security pro-gram and promulgating the program in the formof a command instruction or notice. The pro-gram shall provide adequate protection for themaximum amount of public funds and relateddocuments and instruments that will be on handat any given time.

3. Ensuring that personnelprotection is included in the overall disbursingsecurity program. The program shall includerequirements for periodic review of the adequacyof the security measures being used and for

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testing security equipment for proper operationon a semiannual basis.

4. As required, ensuring armedguards are made available for escort of govern-ment funds to and from the disbursing officewhen funds are being transported.

5. Providing fire protection ofgovernment facilities and funds.

B. Disbursing Officer. The DO isresponsible for properly safeguarding all govern-ment funds with which entrusted and is heldpecuniarily liable for the loss of such funds.When DOs, deputies, agents, cashiers, and/orcustodians have custody of government funds,each shall be provided with a separate securecontainer as described above. Although any ofthe appointed or assigned personnel are liablefor any losses of government funds in theircustody, the DO also continues to hold overallresponsibility and is jointly (or even singularly)liable for any losses associated with these per-sonnel. For this reason, DOs shall make surethat all deputies, agents, cashiers, imprest fundcashiers, and other custodians are fully aware oftheir responsibilities for properly handling andprotecting government funds. At least semian-nually, the DO or designee shall make a personalinspection (and maintain a record of such inspec-tions) of office security measures to ensure that

1. Vaults and safes are notaccessible to unauthorized persons. Access tovaults may be limited by vault day gates towhich only authorized personnel have the keys.

2. Cash in excess of the amountrequired and authorized for official purposes isdeposited promptly.

3. Windows and doors arelimited and barred and/or locked at all timesafter business hours.

4. Access to the working area isconspicuously marked “AUTHORIZED PERSON-NEL ONLY.” Transactions should be conductedfrom a cage, room, or counter enclosure, con-structed in a manner which will provide aphysical barrier to normal traffic and a minimumof interference by other activities and personnelof the office.

5. Security devices for the checksigning machines, meters, and plates are kept inthe custody of the DO or authorized deputy atall times.

6. Internal office procedures areestablished to provide adequate controls on allundelivered and returned checks. Responsibilityfor receipt, holding, and final distribution ofchecks shall be assigned in writing.

7. The commander is advised ofany security shortfalls or breaches.

8. The servicing DFAS Center isinformed of any request for adequate safeguard-ing facilities that has been denied.

9. Written and oral instructionsare provided to all deputies, agents, cashiers,and custodians regarding the proper care andhandling of cash and other accountable docu-ments. The DO is advised to maintain an affida-vit from each accountable individual attesting toreceipt of such instructions.

10. All cash, blank U.S. Treasurychecks, blank U.S. savings bonds, blank deposi-tary checks, and related items to which thissection refers are kept in a vault, safe or securitycontainer that meets the minimum security stan-dards prescribed in this section.

11. All fund containers aboardships and fund containers ashore that are eitheron rollers or weigh less than 750 pounds arestored in a vault or secured in such a way as toprevent movement.

12. If the vault, safe, or containeris visible to the exterior of the office wheresecurity patrols pass, the container is illuminat-ed. This requirement is mandatory in all casesaboard ships.

* 13. The combination of all vaults,safes, and fund containers is changed at leastonce every 6 months and upon relief, transfer,separation, or discharge of the accountable indi-vidual. Except for vaults containing only bulkstock of blank checks and bonds or several safesor strong boxes (wherein funds are stored)stored inside the vault, the responsible individu-al shall not divulge the combination or key to

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anyone. At the discretion of the DO, the combi-nation of each safe and duplicate key of eachstrong box may be placed in a sealed, signed,and dated envelope. The envelope shall besealed and signed by the accountable individualin such a manner that unauthorized opening ofthe envelope can be detected. The sealed enve-lopes of all accountable individuals other thanthe DO shall be kept in the DO’s safe. Thesealed envelope containing the combinationand/or keys to the DO’s safe or vault shall bedelivered to the commander, Security officer, orother designated official for retention. The com-bination or key sealed in the envelope shall beused only in the event of an emergency whichrequires opening of the safe or vault. Refer tochapter 02 of this Volume for emergency proce-dures.

14. A record of combinationchanges is kept inside each vault, safe, or con-tainer. The record shall be dated and signed bythe accountable individual.

15. The dial to the vault, safe, orcontainer is concealed by a shield made ofcardboard or other suitable material to limit thepossibility of the combination being observed.

16. The name and phone numberof the accountable individual is posted on theinside of the vault, safe, or container. DOS mayuse an SF 700, Security Container Information,SF 701, Activity Security Checklist, or SF 702,Security Container Check Sheet, as appropriate,to assist in the control and proper safeguardingof public funds anti the vaults, safes, and/orcontainers. Alternatively, a unique containernumber along with a 24-hour duty number maybe posted on the outside of the vault, safe, orcontainer provided the duty personnel haveaccess to the accountable individual.

*

17. Keys to the work space ordisbursing office are strictly controlled. A recordshall be maintained that identifies who has keys,when they were issued, and when they weresurrendered.

18. All security equipment istested at least every 6 months for proper opera-tion and a record of the tests maintained.

C. Other Custodians of Public Funds.Protective action shall be taken by all custodians(including alternate custodians) entrusted withpublic funds.

030303. Intrusion Detection Systems (IDS)

A. General. An Intrusion DetectionSystem (IDS) is a vital part of any protectionsystem designed to provide in-depth protectionfor a resource or other important area. The DoDsupports a policy on t-he use of IDS for resourceprotection purposes. The first considerationshall be given to components of the DoD Joint-Services Interior Intrusion Detection System (J-SIIDS). In certain special cases, components ofthe Base and Installation Security System (BISS)(generally used for security applications) mayalso be available for resource protection require-ments.

B. Alarms. Alarms should be consid-ered for use to deter entry to the general dis-bursing area or to the actual storage container.There are three levels of alarm protection pene-tration; motion; and point detection. In-depthprotection. can best be achieved by equipping anarea with a minimum of two levels of detectioncapability. The existence of alarms should bewell publicized to gain the full benefit of psychlogical deterrence, and should be identified byconspicuous warnings.

C. Maintenance. To ensure the alarmsystem operates properly, the installation shallhave an effective maintenance program and shalltest the system regularly. The alarm systemshall be protected against bypassing and spoof-ing following DoD requirements.

D. Alarm .Monitor’s Responsibilities.Alarm monitors shall be trained to understandthe systems they are monitoring to includeoperation and basic fault isolation. They shallwork closely with the security police and unitpersonnel and act as a liaison in this special role.

030304. Storage Container Retirements

A. Currency and Negotiable Instru-ments. The following subparagraphs prescribe

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the minimum requirements for storage of curren-cy and negotiable instruments. DoD Componentsecurity and resource protection programsshould ensure compliance with these minimumrequirements. Previously approved storagecontainers currently in use may continue to beused.

1. Under $7,500. The command-er shall establish fund container requirements.Any of the security containers or burglary resis-tant safes listed in paragraph 030305 of thissection may be used. Additionally, the NavalSea Systems Command may designate specificcontainers which may be used on board Navyships.

2. $7,500 -$50,000. A securitycontainer that carries a Class 1 or Class 5 ratingor a burglary resistant safe carrying at least anUnderwriters "Laboratories" classification of Tool-Resistant Safe, TL-15, and having a Group 1Rcombination lock, should be used.

3. $50,000- or more. A burglaryresistant safe or vault carrying at least an Under-writers "Laboratories" classification of Tool-Resis-tant Safe, TL-30, and having a Group 1R combi-nation lock, should be used.

* B. Other Than Currency and Negotia-ble Instruments. Blank checks and bonds, signa-ture plates, paid vouchers representing cash,other disbursing records and documents, andpersonal valuables as defined in paragraph270102 held for safekeeping shall be stored in asecurity container carrying at least a Class 1 orClass 5 rating or a burglary resistant safe orvault. Additionally, the Naval Sea SystemsCommand may designate specific ‘containerswhich may be ‘used on board Navy ships. .

DO

030305. Categories of Storage Containers

A. S e c u r i t y Containers. GeneralServices Administration approved securitycontainers are manufactured under the followingFederal specifications. The Class 1 and Class 5cabinets have been rated to provide the greatestprotection against forced entry.

Class 1 or Class 2 cabinet.AA-F-357 (GS-FSS).

2. Class 4 or Class 5 cabinet..AA-F-358 (GSA-FSS).

3. Class 5 or Class 6 Map andPlan File. AA-F-363 (GSA-FSS) or Class 6 Draw-er File - AA-F-358 (GSA-FSS).

B. Burglary Resistant Safes. Com-mercial burglary resistant safes are certified byUnderwriters’ Laboratories, according to thefollowing classifications. These containers aredesigned to protect the contents against forcedentry. The numerical value utilized in theclassifications represents the time in minuteswhich the safe should resist forced entry Thesesafes provide a greater degree of protection thanthe General services Administration rated securi-ty containers.

1. Tool-Resistant Safe - TL-15.

2. Tool-Resistant Safe - TL-30.

3. Torch and Tool-Resistant Safe- TRTL-30.

4. Torch and Tool-Resistant Safe- TRTL-60.

0304 ADVANCING FUNDS TO AGENTS

030401. Deputies, Agents, and Cashiers of the

A. Procedure. DOs may entrustfunds for official use to the, custody of theirdeputies, agents, and cashiers as prescribed inthis section. All funds that are advanced todeputies, agents, and cashiers shall be document-ed by DD Form 1081. Funds maybe providedby furnishing the deputies, agents, or cashierswith currency or by issuing exchange-for-cashchecks, as required, payable to the deputy, agent

or cashier. The DO shall instruct the individualto negotiate exchange-for-cash checks only asfunds are needed, since an unnegotiated Treas-ury check does not represent an interest burdenon the Treasury, and, accordingly, is not consid-ered a part of the individual’s (or the DO's)approved cash authority (even though the DOreports the unnegotiated check as “Funds withAgents” and the deputy, agent, or cashier reportsthe unnegotiated checks as “Cash on Hand).Funds in the custody of deputies, agents, and

1 .

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cashiers in the main disbursing office shall bereported on the SF 1219 as cash on hand andfunds in the custody of deputies, agents, andcashiers outside the main disbursing office shallbe reported on the SF 1219 as cash in the custo-dy of Government cashiers. See figure 3-1 for anexample of a properly executed DD Form 1081showing an advance of funds to deputies, agents,or cashiers.

B. Limitation of Amount. Undernormal conditions, the amount of funds ad-vanced to a deputy, agent, or cashier shall notexceed their cash holding authority. However,during the authorized absence of the DO, onpaydays, and at such other times as is requiredfor efficient operation, funds may be entrusted tothe custody of deputies, agents, or cashiers insuch amounts as are required, provided the totalamount held by the DO and the deputies, agents,and cashiers does not exceed the amount author-ized to be held by the DO.

C. Custody. Each deputy, agent, orcashier shall store the funds entrusted to them ina safe or adequate container which is assignedexclusively for their use as specified in section0303 of this chapter. The combination of the safeor container shall be known only to the deputy,agent, or cashier and may be placed in a sealed,signed, and dated envelope for retention in theDO’S safe or vault. The combination of the safeor container shall be changed at least once every6 months. If it becomes necessary, in the opin-ion of the commander, to gain access to the safeor container, it shall be opened and the contentsverified following the procedures outlined inchapter 02 of this Volume,

D. Balancing. All deputies, agents,and cashiers entrusted with official funds shallbalance the funds in their custody following thebalancing requirements for DOs as outlined inchapter 19 of this Volume. The permanentrecord of balancing for deputies, agents, andcashiers shall always be kept on the DD Form2665, Daily Agent Accountability Summary. TheDO shall instruct the deputy, agent, or cashierwith respect to the frequency of balancing andsubmission of DD Form 1081 as a summary ofcash transactions and receipt for cash and vouch-ers on hand. In any event, DD Form 1081 turn-ins shall be made not less frequently than onceeach month. When it is known that a deputy,

agent, or cashier will be absent in excess of 5workdays, all funds and accountable documentsin the deputy’s, agent’s, or cashier’s custodyshall be returned to the DO with properly exe-cuted DD Forms 2665 and 1081 prior to depar-ture. Any shortage or overage of funds shall bereported immediately as prescribed in chapter 06of this Volume. See figure 3-2 for an example ofa properly executed DD Form 1081 showingreturn of funds and/or vouchers to the DO

E. Collections and Disbursements

1. Deputies, Agents, and Cash-iers in the Main Disbursing Office. All negotia-ble instruments, collection and disbursementvouchers, and other accountable documents shallbe accounted for on DD Form 2665 and turnedin to the DO daily with a covering DD Form1081. Currency collected over and above thecurrency disbursed may be retained when autho-rized by the DO provided the total funds heldare within the limitations specified above. TheDD Form 1081 also serves as a new receipt forthe funds which remain in the custody of thedeputy, agent, or cashier. When additionalfunds are required, due to disbursements greaterthan collections or other authorized transactions,the DO may replenish the funds in the netamount of acceptable vouchers and negotiableinstruments delivered with the DD Forms 2665and 1081. The DO shall prepare a new DD Form1081 for the amount of funds advanced. DDForm 1081 shall be prepared as described inchapter 19 of this Volume.

2. Deputies, Agents, and Cash-iers at Branch Disbursing Offices. When depu-ties, agents, and cashiers are performing dutiesin branch offices located at such distances fromthe main disbursing office that reporting oftransactions in person is considered impractica-ble, the DO may authorize transmittal of thetransactions by mail or messenger, accounted foron DD Form 2665 with a covering DD Form1081. The original DD Form 1081, signed by thedeputy, agent, or cashier and duplicate of thereport shall be “forwarded with the DD Form2665 and substantiating vouchers, negotiableinstruments, and documents to the DO who,after examination and acceptance, shall acknowl-edge receipt on the duplicate copy of the DDForm 1081 and return the duplicate to the depu-ty, agent, or cashier. Replenishment of funds

*

49


may be accomplished by furnishing the deputies,agents, or cashiers with currency or by issuingexchange-for-cash checks payable to the deputy,agent, or cashier and a new DD Form 1081 asprovided in the previous subparagraph. DDForm 1081 shall be prepared as described inchapter 19 of this Volume.

3. Deputies, Agents, and Cash-iers Under Other Commands. Deputies, agents,or cashiers who are not under the same com-mand as the DO, such as the investigative serv-ice, investigative support center, intelligencecommand, and U.S. Defense Attache Offices,shall deposit negotiable instruments wheneverpossible. Deposit tickets, collection and dis-bursement vouchers, and other accountabledocuments shall be transmitted by mail ormessenger, accounted for on DD Form 2665 witha covering DD Form 1081. The DD Form 1081shall be prepared as described in chapter 19 ofthis Volume, except that, on the determination ofthe DO, the volume of transactions may be sofew as to permit the submission of a single DDForm 1081 for each month.

4. Deputies, Agents, and Cash-iers Aboard Navy Vessels. Deputies, agents, andcashiers aboard Navy vessels shall account forall negotiable instruments, collection and dis-bursement vouchers, and other accountabledocuments (including documents prepared inconjunction with the Automated Teller MachineSystem, if installed on the vessel) using the DDForms 2665 and 1081 as prescribed in the preced-ing subparagraphs. However, turn-in shall beaccomplished NOT less frequently than onceeach week; immediately before and after eachpayday; the last day of each month; and, at anyother time when the DO suspects that an irregu-larity has occurred. Whenever workload andstaffing conditions permit, DOs aboard Navyvessels are encouraged to require all deputies,agents, and cashiers to turn in vouchers andnegotiable instruments more frequently than thestandards prescribed by this subparagraph.

F. Records. All transactions by otherthan the DO shall be identified by name of thepaying deputy, agent, or cashier. The methodused to accomplish the identification shall be asdetermined by the DO. Negotiable instrumentscashed by other than the DO shall be identifiedas prescribed in chapter 04 of this Volume.

030402. Paying Agents. Funds entrusted toauthorized paying agents for the purpose ofmaking specific payments, currency conversions,or check-cashing transactions shall be document-ed with a DD Form 1081. The amount of theadvance shall not exceed the amount requiredfor the specific payments, check cashing, orcurrency conversions to be made by the payingagent. The DO shall furnish written instructionsto the paying agent to ensure that all pertinentdisbursing procedures are properly observed bythe paying agent, including requirements for thesafeguarding of funds; identification of payees;signature of payees; required vouchers, docu-ments, and certifications; and the return of fundsand vouchers. Funds advanced to the payingagent shall neither be commingled with anyother funds nor advanced to any other person.Normally, the paying agent shall not retainadvanced funds overnight. Promptly uponcompletion of authorized payments, the paidvouchers, negotiable instruments, and any bal-ance of funds shall be returned to the DO witha properly completed DD Form 1081. Whencircumstances require retention of funds over-night by the paying agent, the custody require-ments in section 0303 of this chapter shall befollowed, and the paid vouchers, negotiableinstruments, and balance of funds shall be re-turned as soon as possible after completion ofthe authorized payments, normally within 24hours. The DO shall notify his or her command-r and the commander of the paying agent if thepaying agent fails to make prompt return of paidvouchers, negotiable instruments, and funds orif loss of funds or vouchers occurs.

030403. Imprest Fund Cashiers

A. Authority. The DO serving thebase, camp, post, station, installation, activity orship is authorized to advance official funds notto exceed the $10,000 limitation and authoriza-tion as prescribed in chapter 02 of this Volume.When an imprest fund is initially established, theDO shall make the advance of funds only afterreceiving a copy of the authorization to establishthe fund from the commander or designee.When the commander or designee authorizes anincrease in the amount of an existing imprestfund, the DO shall make the additional advancein order to bring the amount of the fund up tothe newly established level only after receiving

50

DoD Financial Management Regulation Volume 5, Chapter 03 ,

a copy of the authorization to increase theamount of the fund.

B. Form of Advance of Funds. Theadvance shall, be made by cash or by checkpayable to the order of the imprest fund cashier.If desired by the imprest fund cashier, a series ofchecks in the desired denominations (roundfigures or specific amounts) maybe issued. TheDO shall prepare a DD Form 1081 for theamount of funds advanced and the original shallbe signed and returned to the DO by the imprestfund cashier. All DD Forms 1081 for imprestfund advances shall include a statement that theimprest fund cashier will immediately inform theDO who advanced the funds of any loss of orshortage.

C. Accounting. All imprest fundadvances shall be reported on the SF 1219 ascash in the custody of Government cashiers.

D. Reimbursement and Liquidation.The amount of the imprest fund shall remainconstant at all times. The imprest fund cashiershall prepare and submit an OF 1129, CashierReimbursement Voucher and/or AccountabilityReport to the DO as often as necessary but notless frequently than once per month for replen-ishment of the fund. The DO shall reimbursethe imprest fund cashier for the amounts ex-pended and properly documented as prescribedin chapter 02 of this Volume. Upon reduction inthe authorized amount of the imprest fund,funds may be transmitted to the DO by moneyorder(s). The cost of the money order(s) shall bededucted from the amount transmitted andaccounted for as prescribed in chapter 02 of thisVolume. The imprest fund cashier shall preparea DD Form 1081 to document the return of thefunds. The DO shall sign the duplicate of theDD Form 1081 and return it to the imprest fundcashier. Upon relief of the imprest fund cashieror upon the disestablishment of the fund for anyreason, all unreimbursed transactions shall beaccounted for on an OF 1129. Immediately uponreimbursement for the ‘final OF 1129, the imprestfund cashier shall prepare a DD Form 1081 andreturn the total amount of the imprest fund tothe DO. When the imprest fund advance is fullyaccounted for, the DO shall sign the duplicatecopy of the DD Form 1081 and return it to theimprest fund cashier. Upon relief of the DO, theDD Form 1081 receipting the amount held by the

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imprest fund cashier in the imprest fund shall betransferred to the relieving DO.

E. Shortage or Overage of ImprestFund. In the event of a shortage or overage inan imprest fund, action shall be taken as pre-scribed in chapter 06 of this Volume.

*30404. Establishing Change Funds

* A. Authorization. When the efficientand economical operation of a Governmentlaundry, clothing sales store, or other appro-priated fund activity (other than a DefenseCommissary Agency (DeCA) commissary en-gaged in selling property or services requirescash for making change, the officer in charge ofthe activity shall request the commander toestablish a change fund. After approval, thecommander (or designee) shall appoint a changefund custodian and the appointment documentshall specify the amount of funds to be advancedby the DO or an agent of the DO to the custodi-an. The DO (or an agent of the DO) providingdisbursing service to the installation or activitywhere the sales activity is located shall providethe authorized change fund advance and recordthe advance in his or her accountability as cashin the custody of Government cashiers. Thisrequirement applies whether the sales activitydeposits the proceeds of sales to the DSSN of thelocal DO or to the DSSN of a regional DO. ForDeCA commissaries, the change fund for eachcommissary store is authorized by the Director,DeCA. Except in specific overseas areas, DeCAcommissary change funds are provided by theDFAS Columbus Center. In all cases, thesechange funds are issued by U.S. Treasury checkusing a SF 1034 charging the DeCA ResaleAccount and ARE NOT carried in the issuingDO’s accountability as cash, in the custody ofGovernment cashiers.

* B. Fund Limit. The amount of thechange fund shall not exceed $250 for each cashregister machine operated in the activity. Whena cash register has more than one drawer, eachdrawer may be considered as a register. Thecommander may authorize additional amountsas indicated below. These increases shall beconsistent with good cash management princi-ples. Upon approval of the commander, cashmay be advanced to authorized collecting agentsfor making change.


* C. Fund Increases

1. The commander may author-ize an additional $50 for each cash register andan amount not to exceed $500 for each account-able medical services custodian.

2. When extended operatinghours exist (for example, Sunday opening), thecommander may approve an additional amountof up to $50 per cash register when there islimited or no banking support.

* D. Documentation. For all changefund advances other than DeCA commissaries,the DD Form 1081 shall be prepared by the DOor agent, as applicable, and the original signedand returned to the DO or agent by the changefund custodians for the amount of funds ad-vanced. All DD Forms 1081 for change fundadvances shall include a statement that thechange fund custodian will immediately informthe officer who advanced the funds of any lossof or shortage in the funds. Change fund custo-dians shall be provided written instructionscovering their responsibility for safeguarding thefunds at the time of receiving the advance. Thefunds shall be returned when the appointment aschange fund custodian is terminated. Thechange fund custodian shall prepare a DD Form1081 to document the return of the fund. TheDO or agent shall acknowledge receipt of thefund by signature on the duplicate copy of theDD Form 1081 which shall be returned to thecustodian. Change funds may also be recalledwhen it is necessary to verify the cash in thepossession of the DO or agent, as applicable. Oncompletion of such verification, the funds shallbe advanced again to the change fund custodian.For DeCA commissaries, when a change fund isno longer necessary (e.g., closure of a commis-sary) the commissary officer shall prepare a DDForm 1131 with credit to the DeCA Resale Ac-count and deposit the fund using a SF 215 in thesame manner as the proceeds of sale are deposit-ed.

0305 ADVANCING FUNDS TO FRIENDLYFOREIGN NATIONS

030501. Authority

to advance funds to cashiers, other DOs, orindividual members of an armed force of afriendly foreign nation for the purpose of payingpay and allowances to those members or en-abling that armed force to purchase necessarysupplies and services. Funds shall be advancedby law and under a basic intergovernmentalagreement that has been negotiated between thegovernments of the friendly foreign nation andthe United States. Any agreement proposed toimplement the statutory authority shall be nego-tiated in accordance with DoD Directive 5530.3(reference (aa)), to include coordination with thecognizant Unified Commander and the U.S.Chief of Diplomatic Mission or U.S. Embassy.See model agreement at figure 3-3.

B. Supplemental Agreement. Asupplemental agreement shall establish thefollowing

1. Type of personal identifica-tion that shall be shown by a DO or by anindividual Service member when drawing anadvance of funds.

2. Maximum amount that maybe advanced to an individual Service member.

3. The lender nation shall beprotected against loss due to ‘fluctuating ex-change rates.

4. The address of the respectivesettlement offices to whom the lender nation’sDO shall forward receipts for fund advanceswith requests for reimbursement.

5. Settlements shall be madelocally, whenever feasible, or when that is notfeasible, between the signatory nation’s represen-tatives in Washington, DC, or other designatedlocation.

6. Settlement may be made incash, or by check, and in the type of currencyused to make the advance. Whenever possible,settlement should be made in the lender nation’sown medium of exchange.

7. Such other provisions thatlocal conditions may make necessary.

* A. Basic Agreement. DOS of the DoDare authorized by 10 U.S.C. 2396(b) (reference (l))

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C. Conditions. Funds shall be ad-vanced only against the signed receipt of the DOor individual Service member receiving theadvance for the following purposes and underthe following conditions:

1. To a DO of an armed force ofa friendly foreign nation on presentation ofproper personal identification for paying payand allowances of troops, or for purchase ofnecessary supplies and services, when the unit isserving in an area where personnel temporarilyare unable to obtain funds from their ownnation.

2. To individual members of anarmed force of a friendly foreign nation, who areserving in an area where a DO of that force isnot available to make payments because thepersonnel are: temporarily separated from theirunits; in need of funds; and able to identifythemselves satisfactorily as members of anarmed force of a friendly foreign nation withwhich an intergovernmental agreement foradvances has been negotiated.

3. The receipt minimally shallcontain: the name, rank, Service number, title,organization, and country of the individual whoreceives the advance; the purpose for which theadvance is needed; the type and amount ofcurrency advanced; the prevailing rate of ex-change to one US. dollar at the time the advanceis made, if applicable; and the name, rank,organization, and address of the DO making theadvance.

*0306 TRAVELERS CHECK PROGRAM

030601. Overview. This section prescribespolicy, procedures, and assigns responsibility forordering, receiving, controlling, safeguarding,disbursing, refunding, and accounting for travel-ers checks. Provisions of this chapter prevailwhere conflict or differences exist in the issuer’suser’s guide.

030602. Travelers Checks in Lieu of Cash.Travelers checks may be disbursed to employeesand members as travel advances in lieu of cashtravel advances. Commanders or their specifical-ly designated representatives may disbursetravelers checks to employees and members,

030603. Misuse of Travelers Checks. - Immedi-ate cashing or depositing of travelers checks intofinancial institutions should be discouraged.Employees and members should be advised touse travelers checks as intended, that is, for thepurchase of goods and services while in a travelstatus. Commanders should use available mediato advise and periodically reemphasize the intentof travelers checks to all employees and mem-.bers.

030604. Appointment of Designated Represen-tative. Each DoD Component activity participat-ing in the travelers check program shall desig-nate one or more individuals as the activity’stravelers check representative(s). The individu-al(s) shall be appointed in writing as a cashier bythe activity commander using the proceduresdescribed in paragraph 020603 of this Volume.The letter of appointment shall be issued in theoriginal and two copies and shall include thespecific duties and limitations, effective date,duration of the appointment, and the name ofthe individual being relieved, if any. The ap-pointed individual(s) shall acknowledge appoint-ment and acceptance of the position on theoriginal and all copies of the letter of appoint-ment and shall include the statement “I agree tohold myself accountable to the United States forall public funds received.” If for any reason theindividual ceases to serve in the position (i.e.,termination of the program or change of cash-iers), the appointment shall be terminated inwriting. The original of letter of appointment ortermination shall be delivered to the cashier, acopy shall be retained by the appointing com-mander, and a copy shall be furnished to Direc-tor, Procedures and Guidance Division, DFAS-KC/CBP, 1500 E. 95th Street, Kansas City, MO64197-0001, Letters of appointment and/ortermination shall be maintained in a permanentfile at the activity to show the successive holdersof each position and shall be retained for aperiod of not less than 6 months after the indi-vidual ceases to serve in the position.

030605. Safeguarding and Controlling TravelersChecks

A. General. Travelers checks in thecustody of the U.S. Government (i.e., the activi-ty’s designated cashier) are considered to bepublic funds and shall be safeguarded accord-ingly as prescribed in section 0303 of this chap-

53


ter. The individual appointed as cashier tomaintain custody of, disburse to employees andmembers, and account for travelers checks shallbe held pecuniarily liable under the same princi-ples and procedures as DOS and their deputies,agents, and cashiers. However, travelers checksSHALL NOT be included in the DO’s cashaccountability or authority to hold cash at per-sonal risk. Accordingly, the value of the travel-ers checks in the custody of the cashier shall notbe included on the DO’s DD Form 2657, DailyStatement of Accountability or SF 1219, State-ment of Accountability.

B. Control Record. The receipt ofshipments and records of disbursement of travel-ers checks shall be recorded either on DD Form2667, Subsidiary Accountability Record or theautomated inventory system provided by AMEX.The DD Form 2657 is easily adaptable for use asan inventory, receipt, and disbursement record.A separate DD Form 2667 shall be used for eachdenomination of travelers checks to enablerecording the travelers checks by denominationin serial number sequence. Should travelerschecks be maintained in more than one currency(i.e., U.S. dollars and one or more foreign curren-cies), separate DD Forms 2667 shall be used foreach currency as well as each denomination ofthe checks. Travelers checks shall be disbursedin package and serial number sequence.

030606. Establishing Accounts

A. New Accounts. The DoD Compo-nent activity initially establishes the travelerscheck program by contacting the Director ofTravelers Cheque Sales and Services, AmericanExpress Travel Related Service, Inc., 1655 N.Fort Myer Dr., Suite 500, Arlington, VA 22209,telefax (703) 276-8455.

B. Automatic Reporting. AMEX willprovide DoD Component activities with anautomated personal computer software systemand a point-of-sale (POS) terminal to manageand report travelers check sales, inventory, andsettlement. The DoD Component activity mustprovide the personal computer, modem andtelephone line for this system. This on-linesystem is known as Express Cheque. The Ex-press Cheque system will fulfill the requirement ,to track, add, tally, and report travelers checksales.

C. Obtaining Travelers Checks. Thedesignated DoD Component activity cashierauthorizes issuance of the initial order of travel-ers checks. The cashier determines the amountof checks to be received as a standard order andmakes any subsequent changes to this amount.Standard. order travelers checks are packaged ina manner determined by AMEX. AMEX travel-ers checks are packaged in books of 10 checksper U.S. currency denomination of $20,$50, and$100. Prepare an enrollment form (provided byAMEX) to obtain the initial order of travelerschecks and forward it to the address shown inparagraph 030606.A above. If travelers checksare to be disbursed in other than U.S. currency,the cashier must provide this information toA M E X .

030607. Receipt of Travelers Checks

A. Receipt. The cashier shall invento-ry and document receipt for each book of travel-ers checks and for single (loose) travelers checksreceived in shipment. The inventory shallinclude:

1. counting the number of booksand/or loose checks,

2. verifying the denominationand serial numbers of all travelers checks in eachshipment,

3. sorting the books or loose checks by denomination (and currency, if appli-cable).

B. Discrepancies. Contact AMEXimmediately if travelers checks received inshipment do not coincide with the agreement orshipment forms. Do not disburse any travelerschecks contained in a discrepant shipment untilAMEX acknowledges and agrees in writing tocorrect or adjust the discrepancies.

030608. Reordering Travelers Checks. AMEXhas two resupply options under the program:automatic and on request. DoD has chosen theautomatic resupply option for all DoD Compo-nents. AMEX’s automatic resupply system willmonitor stock-on-hand based on sales datareported to them.. Each cashier shall initiallyestablish a “percentage of sales” limit or dollarlimit (maximum level). This limit becomes the

54


automatic resupply level for the cashier. Aminimum level (“trigger point”) shall also beestablished. The “trigger point” generates a newsupply of checks needed to bring stock levelback to the maximum level.

030609. Change of Cashiers (Representatives).Both the outgoing and incoming DoD Compo-nent AMEX cashier shall perform a complete,joint inventory and document all travelers checkson hand. The completed inventory shall besigned by both representatives and a lettertransferring the account will be prepared andsigned by the activity Commander. The original’inventory and transfer letter shall be retained bythe DoD Component activity. Advise AMEX byletter each time there is a change of designatedcashiers. The letter shall include the cashier’sAMEX agent code number and the names ofpersons authorized to order and receive travelerschecks. Signature specimens are not required.Forward the letter to the address shown inparagraph 030606.A above.

030610. Disbursement (Sale) of TravelersChecks

A. General. AMEX travelers checksshall be disbursed to employees and members asa travel advance. The travelers check advance isin lieu of a cash travel advance. Fees for theissuance of AMEX travelers checks are based onthe method of payment to AMEX under thisprogram. Participating DoD Component activi-ties may use AMEX payment option B or optionC as described below. The preferred paymentoption for all DoD , Component activities isoption C.

1. Payment Option B. Underpayment option B, payment to AMEX for thevalue of travelers checks disbursed plus therelated fees must be made within 5 calendardays of the date the travelers checks are dis-bursed. The paying disbursing office is thedisbursing office providing disbursing support tothe DoD Component activity participating in theprogram. Payment option B shall be used onlyfor disbursement of travelers checks to membersand employees who ARE NOT participants inthe U.S. Government Travel Card Program andin those instances when the DoD Componentactivity does not participate in the central billingprocess described below under payment option

C. A fee of $.10 per $100 in travelers checksdisbursed is assessed. Refer to paragraphO3O61O.B and 030611.A below for specific proce-dures for reporting disbursement of travelerschecks and payment for the checks and relatedfees to AMEX.

2. Payment Option C. Withinpayment option C, there are two distinctlydifferent methods of payment: a centrally billedaccount method and an individual charge cardaccount method. Payment option C is the pre-ferred payment method for use by all DoDComponent activities. Also, use of this optionrequires each participating activity to use theautomated Express Cheque system provided byAMEX.

a. Centrally Billed Ac-counts. The centrally billed account method ofpayment operates under a concept similar to thecentral billing procedures for purchase of andpayment for airline tickets. Under this method,the participating DoD Component activity mustobtain an activity AMEX charge card account.The activity charge card account is charged forall travelers checks disbursed to individuals whoARE NOT participants in the U.S. GovernmentTravel Card Program. A fee of $1.50 per $100 intravelers checks disbursed is assessed under thismethod. Monthly, AMEX will bill the DoDComponent activity for all travelers checksdisbursed as well as the related fees.

b. Individual Charge CardAccounts. The individually billed accountmethod is applicable to ALL individuals partici-pating in the U.S. Government Travel CardProgram (i.e., all holders of the American Ex-press Travel Card). Under this method, travelerschecks are charged to the individual card hold-er’s AMEX travel card. A fee of $2.50 per $100in travelers checks disbursed is assessed underthis method. The individual card holder is billedmonthly by AMEX for the travelers checks aswell as the related fees. This method is identicalto the individual billing procedure currently ineffect for using the AMEX travel card at auto-mated teller machines (ATMs) to obtain cash.

B. Disbursing Travelers ChecksUnder Option B. Cashiers shall disburse travel-ers checks to employees and members only uponpresentation of approved travel orders and

55


appropriate identification. In all instances, themaximum amount of travelers checks disbursedshall be limited to the amount of travel advanceauthorized in the travel order. A PurchaserApplication Form (PAF) must be completed foreach travelers check disbursement. The cashiershould refer to the AMEX user’s guide for dis-bursing travelers checks and completion of thePAP. Under this payment option the cashiershall:

1. select the appropriate travel-ers check amount.

2. complete a PAF for each packof travelers checks disbursed and a separate PAFfor each loose travelers check disbursed.

3. ensure the individual insertshis/her name, address, and signature on eachPAP.

4. give the travelers checks,refund information, and customer copy of eachPAF to the individual.

5. advise the individual to signeach of the travelers checks in the upper lefthand comer immediately. NOTE: Customerswho do not sign travelers checks immediatelyupon receipt forfeit their right to refund fromAMEX. If lost or stolen, travelers checks musthave the customer’s signature in the upper lefthand comer to qualify for refund.

6. retain three copies of eachindividual’s travel orders and the original andremaining copies of the PAF for preparation ofthe voucher for payment to AMEX.

NOTE TRAVELERS CHECKS DISBURSEDUNDER THIS METHOD CONSTITUTE ANADVANCE OF TRAVEL FUNDS AS DEFINEDIN THE JOINT TRAVEL REGULATIONS (J’IR)AND THE JOINT FEDERAL TRAVEL REGU-LATIONS (JFTR). AS SUCH, EACH INDIVID-UAL RECEIVING TRAVELERS CHECKSUNDER THIS METHOD MUST REPORTRECEIPT OF THE TOTAL FACE VALUE OFTHE TRAVELERS CHECKS ON THE TRAVELCLAIM AS A PARTIAL PAYMENT. AT THETIME THE . TRAVEL CLAIM IS SETTLED,THE VALUE OF THE TRAVELERS CHECKSMUST BE DEDUCTED FROM THE TOTAL

TRAVEL ENTITLEMENT DUE THE TRAVEL-ER. IN ADDITION, SINCE THE FEE FORTHE TRAVELERS CHECKS HAS BEEN PAIDTO AMEX, THE TRAVELER IS NOT AUTHO-RIZED OR ENTITLED TO CLAIM REIM-BURSEMENT FOR THE TRAVELERS CHECKFEE. FAILURE TO REPORT RECEIPT OF ANADVANCE (BY TRAVELERS CHECKS) ONTHE TRAVEL CLAIM RESULTS IN DUPLI-CATE PAYMENT OF TRAVEL ALLOWANCESAND CAN BE CONSIDERED AN ATTEMPTTO DEFRAUD THE U.S. GOVERNMENT.

C. D i s b u r s i n g Travelers ChecksUnder Option C. As explained above there aretwo methods of payment to AMEX under optionC, the centrally billed account method and theindividually billed account method. The central-ly billed account method is for use to disbursetravelers checks to individuals who ARE NOTparticipants in the U.S. Government Travel CardProgram. The individually billed account meth-od is for use to disburse travelers checks toindividuals who ARE participants in the U.S.Government Travel Card Program. Under eitherof these options, cashiers shall disburse travelerschecks to individuals only upon presentation ofapproved travel orders and appropriate identifi-cation. In all instances, the maximum amount oftravelers checks disbursed shall be limited to theamount of travel advance authorized in thetravel orders.

1. Centrally Billed Account. Thecashier shall:

a. select the appropriatetravelers check amounts required to makeup theamount of travel advance authorized in thetravel orders.

b. obtain authorization tocharge the travelers checks to the DoD Compo-nent activity charge card account. The cashiershould refer to the AMEX user’s guide for dis-bursing travelers checks and completion of therequired documents. Key or swipe the AMEXcard (DoD Component activity credit card) intothe point-of-sale (POS) terminal to obtain anapproval code. (If the POS terminal does notreturn an authorization code, it may be obtainedby calling AMEX Card Authorization Service at1-800-528-2121 and providing the requestedinformation.)

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c. complete a PAF for eachpack of travelers checks disbursed and a separatePAF for each loose travelers check disbursed.

d. ensure the individualinserts his/her name, address, and signature oneach PAF.

e. imprint the Record ofCharge (ROC).

f. complete the ROC byrecording the approval code; the face value ofthe travelers checks; the fee amount (computeappropriate amount based on the rates shownabove); the sum of face value of the travelerschecks and fee amount; and, ensure the agencyaccount number is recorded in the area for cardmember account number. The member oremployee (customer) shall then sign the ROC.

g. give the travelers checks,refund information, the customer copy of eachPAF, and the top copy of the ROC to the indi-vidual.

h. advise the individual tosign each of the travelers checks in the upper lefthand comer immediately. NOTE: Customerswho do not sign travelers checks immediatelyupon receipt forfeit their right to refund fromAMEX. If lost or stolen, travelers checks musthave the customer’s signature in the upper lefthand corner to qualify for refund.

i. retain three copies ofeach individual’s travel orders and the originaland remaining copies of the PAF and ROC forreporting disbursement of the travelers checks toAMEX and preparation of the voucher for pay-ment to AMEX upon receipt of the monthlybilling.

NOTE TRAVELERS CHECKS DISBURSEDUNDER THIS METHOD CONSTITUTE ANADVANCE OF TRAVEL FUNDS AS DEFINEDIN THE JOINT TRAVEL REGULATIONS (JTR)AND THE JOINT FEDERAL TRAVEL REGU-LATIONS (JFTR). AS SUCH, EACH INDIVID-UAL RECEIVING TRAVELERS CHECKSUNDER THIS METHOD MUST REPORTRECEIPT OF THE TOTAL FACE VALUE OFTHE TRAVELERS CHECKS ON THE TRAVELCLAIM AS A PARTIAL PAYMENT. AT THE

57

TIME THE TRAVEL CLAIM IS SETTLED,THE VALUE OF THE TRAVELERS CHECKS MUST BE DEDUCTED FROM THE TOTALTRAVEL ENTITLEMENT DUE THE TRAVEL-ER. IN ADDITION, SINCE THE FEE FORTHE TRAVELERS CHECKS HAS BEEN PAIDTO AMEX THE TRAVELER IS NOT AUTHO-RIZED OR ENTITLED TO CLAIM REIM-BURSEMENT FOR THE TRAVELERS CHECK,FEE. FAILURE TO REPORT RECEIPT OF ANADVANCE (BY TRAVELERS CHECKS) ONTHE TRAVEL CLAIM RESULTS IN DUPLI-CATE PAYMENT OF TRAVEL ALLOWANCESAND CAN BE CONSIDERED AN ATTEMPTTO DEFRAUD THE U.S. GOVERNMENT.

2. Individually Billed Account.The cashier shall

a. select the appropriatetravelers check amounts required to makeup theamount of travel advance authorized in thetravel orders.

b. obtain authorization tocharge the travelers checks to the individual’sAMEX travel card account. The cashier shouldrefer to the AMEX user’s guide for disbursingtravelers checks and completion of the requireddocuments. Key or swipe the individual’sAMEX travel card into the point-of-sale (POS)terminal to obtain an approval code. (If the POSterminal does not return an authorization code,it may be obtained by calling AMEX Card Au-thorization Service at 1-800-528-2121 and provid-ing the requested information.)

c. complete a PAF for eachpack of travelers checks disbursed and a separatePAP for each loose travelers check disbursed.

d. ensure the individualinserts his/her name, address, and signature oneach PAP.

e. imprint the Record ofCharge (ROC).

f. complete the ROC byrecording the approval code; the face value ofthe travelers checks; the fee amount (computeappropriate amount based on the rates shownabove); the sum of face value of the travelerschecks and fee amount; and, ensure the individ-


ual’s account number is recorded in the area forcard member account number. The member oremployee (customer) shall then sign the ROC.

g. give the travelers Checks,refund information, the customer copy “of eachPAP, and the top copy of the ROC to the indi-v i d u a l .

h. advise the individual tosign each of the travelers checks in the upper lefthand corner immediately. NOTE: Customerswho do not sign travelers checks immediatelyupon receipt forfeit their right to refund fromAMEX. If lost or stolen, travelers checks musthave the customer’s signature in the upper lefthand comer to qualify for refund.

i. retain two copies of eachindividual’s travel orders and the original andremaining copies of the PAF and ROC for re-porting disbursement of the travelers checks toAMEX.

NOTE: TRAVELERS CHECKS DISBURSEDUNDER THIS METHOD DO NOT CONSTI-TUTE AN ADVANCE OF TRAVEL FUNDS ASDEFINED IN THE JOINT TRAVEL REGULA-TIONS (JTR) AND THE JOINT FEDERALTRAVEL REGULATIONS (JFTR). INDIVIDU-ALS RECEIVING TRAVELERS CHECKSUNDER THIS METHOD SHOULD NOTREPORT RECEIPT OF TRAVELERS CHECKSON THE TRAVEL CLAIM AS A PARTIALPAYMENT. SINCE THE FEE FOR THE TRAV-ELERS CHECKS MUST BE PAID TO AMEXBY THE INDIVIDUAL CARD HOLDER INSETTLEMENT OF THE AMEX TRAVEL CARDACCOUNT, THE TRAVELER IS AUTHO-RIZED AND ENTITLED TO CLAIM REIM-BURSEMENT FOR THE TRAVELERS CHECKFEE ON THE TRAVEL CLAIM.

030611. Reporting Travelers Check Disburse-ments and Remitting Payment t o A M E X

A. Payment Option B. The report ofdisbursement and payment documentation forpackaged travelers checks is prepared differentlythan the documentation for loose travelerschecks. At the end of each day the cashier shallfollow the appropriate instructions below.

1. Packaged Travelers CheckDisbursements

a. Sort PAFs by denomina-tion.

b. Run an adding machinetape total of each denomination.

c. Total the denominationtapes.

d. Complete a Daily SalesSummary Form (DSF) (refer to the AMEX user’sguide for instructions on completion of thisform).

e. Combine the forms intopackage sets (do not staple forms together) asfollows:

(1) completed DSF,

(2) PAPS,

(3) authorization (travelorders), and

(4) tape listings.

f. Prepare and certify an SF1034 for the total amount due AMEX (includingthe fee for the travelers checks disbursed). TheSF 1034 shall contain a separate line of account-ing data for each travel order involved. Theamount charged to each line of accounting data(travel order) shall be the amount of travelerschecks plus the applicable fee for the value oftravelers checks disbursed to the individualnamed in the travel order.

g. Forward the SF 1034 andtwo of the package sets of forms combinedabove to the activity’s supporting disbursingoffice on the same business day, if possible, butnot later than the morning of the next businessday. NOTE: The package set of forms contain-ing the original DSF and PAF must be forward-ed to AMEX with the U.S. Treasury check issuedin payment of the travelers checks and relatedfees. The additional package set of forms is forretention by the disbursing office.

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h. Retain a complete pack-age set of the forms and a copy of the SF 1034for reconciliation of travelers check inventoryand payment documentation. To complete thecashier's retained records, the cashier shouldobtain a copy of the SF 1034 from the disbursingoffice (after payment) which indicates the dis-bursing office voucher number, date of payment,and check number (or obtain this informationand transcribe it to the retained copy of the SF1034).

2. Loose Travelers Check Dis-bursements

a. Sort PAFs by denomina-tion.

b. Total amounts on anadding machine tape listing. NOTE: A daily

sales surmmary form (DSF) is not required forloose travelers check disbursements.

c. Combine the forms intopackage sets (do not staple forms together) asfollows:

(1) PAFs,

(2) authorization (travelorders), and

(3) tape listings.

d. Prepare and certify an SF1034 for the total amount due AMEX (includingthe fee for the travelers checks disbursed). TheSF 1034 shall contain a separate line of account-ing data for each travel order involved. Theamount charged to each line of accounting data(travel order) shall be the amount of travelerschecks plus the applicable fee for the value oftravelers checks disbursed to the individualnamed in the travel order.

e. Forward the SF 1034 andtwo of the package sets of forms combinedabove to the activity’s supporting disbursingoffice on the same business day, if possible, butnot later than the morning of the next businessday. NOTE: The package set of forms contain-ing the original PAFs must be forwarded toAMEX with the U.S. Treasury check issued inpayment of the travelers checks and related fees.

The additional package set of forms is for reten-tion by the disbursing office.

f. Retain a complete pack-age set of the forms and a copy of the SF 1034for reconciliation of travelers check inventoryand payment documentation. To complete thecashier’s retained records, the cashier shouldobtain a copy of the SF 1034 from the disbursingoffice (after payment) which indicates the dis-bursing office voucher number, date of payment,and check number (or obtain this informationand transcribe it to the retained copy of the SF1034).

B. Payment Option C. Under pay-ment option C, AMEX will bill the DoD Compo-nent activity account (centrally billed account) orthe individual AMEX credit card holder’s ac-count (individually billed account) for travelerschecks disbursed plus the related fees. Themonthly billing from AMEX is based on thedaily report of travelers checks disbursed whichis submitted to AMEX by the cashier. Thecashier should refer to the AMEX user’s guidefor complete details on preparing and submittingthe daily travelers check disbursement (sales)report to AMEX. The cashier shall also complywith the minimum requirements as described inthe following subparagraphs.

1. Centrally Billed Account. Atthe conclusion of each individual travelers checkdisbursement, the cashier shall segregate thedocumentation (by individual transaction) intopackage sets as shown below. Each individualpackage set shall be fastened together to providea complete record of travelers check issuance.At the end of each business day, the cashier shallforward that day’s AMEX packages to AmericanExpress, Travelers Cheque Operations Center,GSA Support Group, 4315 South 2700 West, SaltLake City, UT 84184-1300. The cashier anddisbursing office copy of each package set shallbe retained by the cashier for use in reconcilia-tion of the monthly AMEX billing and for prepa-ration and certification of the voucher for pay-ment to AMEX.

a. Package Set for AMEX

(1) Original (top copy)of the PAF,

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( 2 ) b o t t o m c o p y(AMEXCO copy) of the ROC, and

(3) copy of the travelorders.

b. Package Set for CashierF i l e s

(1) Center copy (yellowtissue copy) of the PAF,

(2) center copy (ServiceEstablishment copy) of the ROC, and


c. Package Set for theDisbursing Office

(1) Center copy (greentissue copy) of the PAF, and


Upon receipt of the billing (statement of charges)from AMEX, the cashier shall reconcile all itemsappearing on the billing with the cashier’s anddisbursing office copies of the retained packagesets. After reconciliation, the cashier shall pre-pare and certify an SF 1034 for the total amountdue AMEX (including the fee for the travelerschecks disbursed). The SF 1034 shall contain aseparate line of accounting data for each travelorder involved. The amount charged to eachline of accounting data (travel order) shall be theamount of travelers checks plus the applicablefee for the value of travelers checks disbursed tothe individual named in the travel order. Thecashier shall forward the completed and certifiedSF 1034, the original and copies of the AMEXbilling, and the disbursing office package sets offorms included on the billing to the activity’ssupporting disbursing office on the same busi-ness day received, if possible, but not later thanthe morning of the next business day. Thecashier shall retain a copy of the AMEX billingwith the cashier’s package set of the forms anda copy of the SF 1034 for reconciliation andpayment documentation. To complete thecashier’s retained records, the cashier shouldobtain a copy of the SF 1034 from the disbursing

office (after payment) which indicates the dis-bursing office voucher number, date of payment,and check number (or obtain this informationand transcribe it to the retained copy of the SF1034).

2. Individually Billed Account.Individual AMEX travel card holders will bebilled for all travelers checks disbursed to themin the same manner as AMEX travel card holdersare billed for ATM cash advances. Direct pay-ment to AMEX for the amount of the travelerschecks plus the related fee is the direct personalresponsibility of the individual AMEX travelcard holders. However, as with the centrallybilled account, the monthly billing from AMEXis based on the daily report of travelers checksdisbursed which is submitted to AMEX by thecashier. The cashier should refer to the AMEXuser’s guide for complete details on preparingand submitting the daily travelers check dis-bursement (sales) report to AMEX. The cashiershall also comply with the minimum require-ments as described herein. At the conclusion ofeach individual travelers check disbursement, thecashier shall segregate the documentation (byindividual transaction) into package sets asshown below. Each individual package set shallbe fastened together to provide a“ completerecord of travelers check issuance. At the end ofeach business day, the cashier shall forward thatday’s AMEX packages to American Express,Travelers Cheque Operations Center, GSA Sup-port Group, 4315 South 2700 West, Salt LakeCity, UT 84184-1300. The cashier copy of eachpackage set shall be retained by the cashier foruse in reconciliation of travelers check disburse-ments, as necessary. NOTE THAT UNDERTHE INDIVIDUALLY BILLED METHOD,PAYMENT DATA IS NOT PROCESSEDTHROUGH THE DISBURSING OFFICE BE-CAUSE PAYMENT TO AMEX FOR TRAVEL-ERS CHECKS DISBURSED IS THE PERSON-AL RESPONSIBILITY OF THE AMEX TRAVELCARD HOLDER.

a. Package Set for AMEX

(1) Original (top copy)of the PAF, ,

( 2 ) b o t t o m c o p y(AMEXCO copy) of the ROC, and

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b. Package Set for CashierFiles

(1) Center copies (yel-low and green tissue copies) of the PAF,

(2) center copy (ServiceEstablishment copy) of the ROC, and


C. Remitting Payment to AMEX bythe DO. Upon receipt of the SF 1034 and sup-porting documentation described above, the DOshall take appropriate action to process the SF1034 and effect issuance of a U.S. Treasury checkto AMEX in payment for travelers checks andfees disbursed under option B and option C(centrally billed account). Under option B,payment to AMEX for travelers checks disbursedplus related fees is due within 5 days of travelerscheck issuance. Under option C (centrally billedaccount), payment to AMEX for travelers checksdisbursed plus related fees is due within 5 daysof receipt of the monthly billing.

030612. Refunds for Individual Cardholders.An individual will not be responsible for theamount of lost or stolen checks provided that theindividual has satisfied all of the requirementsset forth in the Recipient Agreement. AMEXwill clear their account to eliminate responsibilityfor the amount of lost or stolen checks replacedin the form of cash or traditional AmericanExpress travelers checks (traditional checks)through the AMEX Refund Service Center.AMEX will bill the individual card account uponissuance of the traditional checks or cash. As analternative, AMEX can resupply GovernmentTravelers Checks which can be ordered throughthe DoD Components cashier.

030613. Termination of Agreement

A. DoD Component Activities. Asstated in the American Express Travelers ChequeTrust Agreement, upon termination of the con-tract between General Services Administrationand AMEX, DoD Component activity cashiersshall, within fifteen 15 calendar days, destroy all

travelers checks on hand by cremating or shred-ding. The cashier shall prepare a DD Form 2669,Destruction Certificate, that describes the travel-ers checks by serial number, currency (U.S. orother), denomination, quantity, and total value.The original DD Form 2669 shall be forwardedto AMEX, and a copy shall be retained for theDoD Component activity’s records. In addition,the cashier shall return any equipment, displaymaterial or other property furnished by AMEX.

B. Individual Cardholder. Either theDoD Component activity or AMEX may suspendor terminate an individual’s participation in theAMEX Travel Card Program in accordance withthe terms of the cardholder agreement. In theevent of termination the individual agrees:

1. not to cash the remainingtravelers checks,

2. to cut out the lower rightcomer where the chairman’s signature appearsor write “VOID" across the face of each travelerscheck in nonerasable ink,

3. to return all uncashed travel-ers checks to AMEX or the DoD Componentactivity cashier. AMEX will bill the individualcredit card account for the amount of travelerschecks not returned within 15 calendar daysafter participation in the program has beenterminated. The credit card account statementmust be settled upon receipt.

030614. Loss of Travelers Checks

A. DoD Component Activities. Incase of loss of any proceeds of sale or travelerschecks, whether by theft, burglary, holdup, fire,dishonesty of employees or members, mysteriousdisappearance, or any other cause, the DoDComponent activity shall notify AMEX immedia-tely and shall report the loss of funds as pre-scribed in chapter 06 of this Volume. In theevent of any such loss, the DoD Componentactivity shall pay all monies due in accordancewith the established agreement with AMEX.

B. DoD Component Activity Cashier.The loss of travelers checks or proceeds of salewhile in the custody of the DoD Component’scashier constitutes a physical loss of Governmentfunds. Required actions to be taken to report

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and investigate the loss of funds are addressedin chapter 06 of this Volume.

*0307 WEAPONS FOR CASH PROGRAM

030701. Authority. Upon approval of theSecretary of Defense to establish a weapons forcash program the following procedures shall beutilized to execute the program.

A. F u n d i n g Authorization. Thecommander shall provide funding authorizationfor weapons procurement based upon approvalto establish a weapons for cash program. Thetotal amount advanced to the paying agents plusthe amount disbursed for weapons under thisprogram cannot exceed the funding authoriza-tion established by the commander. In the eventadditional funds are required, the commandermust first adjust the funding authorization.

B. Paying agents. Paying agentsshould be utilized as necessary to successfullyoperate the program. All paying agents for thisprogram shall be appointed as directed in para-graph 020604 of this Volume. Funds shall beadvanced (subject to the limitations above) bythe disbursing officer supporting the mission tothe paying agents as prescribed in paragraph030402 of this chapter. The advances will beprovided in the currency of the country in-volved. Disbursing officers should refer tochapter 12 of this Volume for procedures toobtain foreign currency to meet mission require-ments.

C. Weapons Purchases. Disburse-ments for each purchase must be accounted forproperly. This shall be accomplished utilizingSF 44A, Purchase Order-Invoice-Voucher orother available chain of custody type receipt.General preparation and distribution of theseforms are as follows

1. Each disbursement document(receipt from seller) must contain the seller’sname and (if possible) identification number,weapon description and serial number, and

to the weapon (for inventory control), and onecopy provided to the seller.

D. Clearing or Repenishment of thePaying Agent's Account. To clear the payingagent’s account, the paying agent shall preparean OF 1129, Cashier Reimbursement Voucherand/or Accountability Report. The OF 1129shall be for the total amount of all disbursementdocuments (receipts) turned in and must beaccompanied by the original and one copy ofeach document (receipt) and any remainingbalance of the cash advanced. Additionally, acopy of the approval to establish a weapons forcash program shall be attached to the OF 1129.If replenishment of the paying agent’s account isnecessary, the paying agent shall prepare the OF1129 as prescribed above and submit the com-pleted document to the supporting disbursingofficer. Subject to the funding limitations de-scribed in the previous subparagraphs, thedisbursing officer will issue” payment of the OF1129 to the paying agent for the approvedamount of the OF 1129.

amount disbursed. Make sure to obtain the seller’s signature on the receipt.

2. The original and one copy ofthe disbursement document (receipt from seller)shall be turned in to the DO, one copy attached

62


STATEMENT OF AGENT OFFICER’S ACCOUNTDISBURSING OFFICER’S NAME, ADDRESS, DISBURSING STATION SYMBOL NO.

K. S. ALEX, LTC, FCFORT FINANCE, IN 46216C0001

AGENT OFFICER’S NAME, GRADE, SSN, UNIT ADDRESS(Include ZIP Code/APO number and Telephone number.)

K. D. ANDREA, CPT, FCAGENTCAMP DOLLAR, IN 46032

TRANSACTIONS AFFECTING AGENT OFFICER’S ACCOUNT

TRANSACTIONSa

INCREASE(Received by Agent)

b

BEGINNING BALANCE(In Agent’s Account)

c

DECREASE(Turned in by Agent)

d

ENDING BALANCE(In Agent’s Account)

e

1. BALANCE FORWARD 0.00

2. U.S. DOLLARS 2562.00

3. FOREIGN CURRENCY

4. MILITARY PAYMENT CERTIFICATES

5. COLLECTIONS

6. DEPOSITS

7. NEGOTIABLE INSTRUMENTS:

A. TREASURY CHECKS 15000.00

B. MILITARY PAYMENT ORDERS

C. OTHER (Specify)

8. PAID VOUCHERS

9. INCORRECT VOUCHERS RETURNED

10.

11.

12. TOTAL FUNDS IN HANDS OF AGENT OFFICER 17,562.00

STATEMENTS

DISBURSING OFFICER AGENT OFFICER

XX ON ADVANCE: I HAVE INTRUSTED FUNDS AND/OR XX ON ADVANCE: I, AS AGENT OFFICER, HAVE RECEIVED

OTHER ITEMS AS INDICATED IN THIS STATEMENT TO THEABOVE NAMED AS MY AGENT OFFICER.

FUNDS AND/OR OTHER ITEMS AS INDICATED ABOVE. IHAVE ASSUMED PECUNIARY RESPONSIBILITY THEREFOR. IWILL NOTIFY THE DISBURSING OFFICER IMMEDIATELYUPON DISCOVERY OF ANY LOSS OR SHORTAGE, AND I HAVERECEIVED AND UNDERSTAND WRITTEN INSTRUCTIONSCONCERNING MY DUTIES AND RESPONSIBILITIES AS ANAGENT OFFICER.

DATE19 JAN XX

SIGNATURE OF DISBURSING OFFICER DATE19 JAN XX

SIGNATURE OF AGENT OFFICER

ON RETURN: I HAVE RECEIVED FUNDS AND/OR OTHER ON RETURN: THE ABOVE STATEMENT OF ACCOUNT IS

ITEMS AS INDICATED ON THIS STATEMENT FROM THE ABOVENAMED AGENT OFFICER.

CORRECT.

DATE SIGNATURE OF DISBURSING OFFICER DATE SIGNATURE OF AGENT OFFICER

DD Form 1081, MAY 75 PREVIOUS EDITION IS OBSOLETE 225/149

Figure 3-1. Sample DD Form 1081, Statement of Agent Officer’s Account (Advance of Funds)

63


STATEMENT OF AGENT OFFICER’S ACCOUNTDISBURSING OFFICER’S NAME, ADDRESS, DISBURSING STATION SYMBOL NO.

K. S. ALEX, LTC, FCFORT FINANCE, IN 46216C0001

AGENT OFFICER’S NAME, GRADE, SSN, UNIT ADDRESS(Include ZIP Code/APO number and Telephone number.)

K. D. ANDREA, CPT, FCAGENTCAMP DOLLAR, IN 46032

TRANSACTIONS AFFECTING AGENT OFFICER’S ACCOUNT

TRANSACTIONSa

INCREASE(Received by Agent)

b

BEGINNING BALANCE(In Agent’s Account)

c

DECREASE(Turned in by Agent)

d

ENDING BALANCE(In Agent’s Account)

e

1. BALANCE FORWARD 17562.00

2. U.S. DOLLARS

3. FOREIGN CURRENCY

4. MILITARY PAYMENT CERTIFICATES

5. COLLECTIONS 1200.00

6. DEPOSITS 702.00

7. NEGOTIABLE INSTRUMENTS:

A. TREASURY CHECKS

B. MILITARY PAYMENT ORDERS

C. OTHER (Specify)

8. PAID VOUCHERS 3960.00

9. INCORRECT VOUCHERS RETURNED

10.

11.

12. TOTAL FUNDS IN HANDS OF AGENT OFFICER 18,762.00 14,100.00

STATEMENTS

DISBURSING OFFICER AGENT OFFICER

ON ADVANCE: I HAVE INTRUSTED FUNDS AND/OR ON ADVANCE: I, AS AGENT OFFICER, HAVE RECEIVED

OTHER ITEMS AS INDICATED IN THIS STATEMENT TO THEABOVE NAMED AS MY AGENT OFFICER.

FUNDS AND/OR OTHER ITEMS AS INDICATED ABOVE. IHAVE ASSUMED PECUNIARY RESPONSIBILITY THEREFOR. IWILL NOTIFY THE DISBURSING OFFICER IMMEDIATELYUPON DISCOVERY OF ANY LOSS OR SHORTAGE, AND I HAVERECEIVED AND UNDERSTAND WRITTEN INSTRUCTIONSCONCERNING MY DUTIES AND RESPONSIBILITIES AS ANAGENT OFFICER.

DATE SIGNATURE OF DISBURSING OFFICER DATE SIGNATURE OF AGENT OFFICER

XX ON RETURN: I HAVE RECEIVED FUNDS AND/OR OTHER XX ON RETURN: THE ABOVE STATEMENT OF ACCOUNT IS

ITEMS AS INDICATED ON THIS STATEMENT FROM THE ABOVENAMED AGENT OFFICER.

CORRECT.

DATE21 JAN XX

SIGNATURE OF DISBURSING OFFICER DATE21 JAN XX

SIGNATURE OF AGENT OFFICER

DD Form 1081, MAY 75 PREVIOUS EDITION IS OBSOLETE 225/149

Figure 3-2. Sample DD Form 1081, Statement of Agent Officer’s Account (Return ofFunds/Vouchers)

64


MODEL INTERGOVERNMENTAL AGREEMENT (FOR DIRECT QUOTATION)

AGREEMENT BETWEEN THE UNITED STATES OF AMERICAAND FOR THE

RECIPROCAL ADVANCE OF FUNDS TO UNITSOR PERSONNEL OF THEIR ARMED FORCES

The Governments of the United States of America and ,each realizing that units or personnel of their respective armed forces may find themselvesisolated from their parent units without financial means for support while in an area in whichthe other Government’s armed force is present, and desiring to facilitate the financial supportof such units and personnel in a situation of that nature, have agreed as follows:

Article I

When units or personnel of the armed forces of one of the parties to this agreement findthemselves separated from their parent unit without adequate financial support in an area inwhich the armed forces of the other party are present, then cashiers, disbursing officers, or anindividual member of the separated force may request funds from the appropriate areacommander of the armed forces of the other party, or his or her designated representative, topay wages and allowances or purchase necessary supplies and services.

Article II

The responsible authorities of a party receiving a request for funds, as in Article I, above,after satisfying themselves that resources or services of the requesting forces are unavailableor inadequate, shall honor such request. Requests shall be approved on a case-by-case basis.Where circumstances permit, this agreement shall be verified. Regardless of whether suchverification is obtained, the Government of the units or personnel to whom the funds areadvanced shall be responsible for effecting reimbursement.

Article III

The funds may be advanced in the currency of the lending State, of the State to whichfunds are advanced, or of the third State in which the forces may be located, or in any otheravailable currency acceptable to the receiving force.

Article IV

The cashier, the disbursing officer, or the personnel of the force who receive funds shallgive the authorities of the force who provided the funds a receipt for the funds received.Such receipts shall be substantially in the form prescribed in the annex to this agreement.

Figure 3-3. Model Intergovernmental Agreement

65


Article V

The authorities of the force providing the funds shall present the receipts to the designat-ed settlement officer of the State to which funds were advanced for reimbursement. Normal-ly, reimbursement shall be made in the currency that was advanced at a rate of exchange tothe currency of the country seeking reimbursement that is not less favorable to the lenderthan that existing at the time of the advance. Where mutually acceptable, reimbursement maybe made in another currency, if that settlement is made at a rate of exchange that is not lessfavorable to the country seeking reimbursement than that existing at the time of the advance.Settlement of accounts shall be made within 30 days of the advance.

Article VI

This agreement shall apply during both peace and war without limitation as to geograph-ical area.

Article VII

This agreement shall continue in force until 3 months after the receipt by either party ofwritten notice of the intention of the other party to terminate it.

IN WITNESS WHEREOF the undersigned representatives have signed the presentagreement.

Done at this day of , 19 ,in the English and languages, both texts being equally authori-tative.

(Signature) (Signature)

Figure 3-3. Model Intergovernmental Agreement (Continued)

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LEVELS OF AUTHORIZED CASH HOLDINGS

IF SOURCE OF FUNDS IS:AND WEEKLYREQUIREMENTS ARE:

THEN HOLD CASHTO OPERATE FOR:

Reasonably close (not more than 24 hoursrequired to obtain cash)

$500 or less 4 weeks

over $500 andless than $5,000

2 weeks

over $5,000 andless than $100,000

1 week

over $100,000 3 days

Not reasonably close (more than 24 hoursrequired to obtain cash)

$2,500 or less 4 weeks

over $2,500 andless than $50,000

2 weeks

over $50,000 1 week

Remote $50,000 or less 4 weeks

over $50,000 2 weeks

Table 3-1. Maximum Levels of Authorized Cash Holdings

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