Sample - Not an Official USAMEDDC&S Lesson Plan

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					          UNITED STATES ARMY
           FINANCE SCHOOL




     U.S. ARMY SOLDIER SUPPORT INSTITUTE

Functional Area 45 Intermediate Level Education
               Disbursing Operations
                                        Disbursing Operations
                                        AJE45103LP / Version 1
                                             8 April 2005


SECTION I.       ADMINISTRATIVE DATA

All Courses       Course Number                        Course Title
Including This
Lesson               7D-FA45                      FA 45 Intermediate Level Education (ILE)

Task(s)               Task Number               Task Title
Taught (*) or           Individual
Supported
                     None

Reinforced        Task Number                   Task Title
Task(s)
                     None

Academic          The academic hours required to teach this lesson are as follows:
Hours
                                            Resident
                                         Hours/Methods
                                         8 hr/ DiscussionDiscussion
                                         0 hr/Practical Exercise (Performance)
                  Test                   0 hrs
                  Test Review            0 hrs
                  Total Hours:           8 hr 0 mins

Test Lesson                                       Hours                   Lesson No.
Number
                  Testing
                                                                         st
                  (to include test review)             2                1 Interim Module Test

Prerequisite      Lesson Number               Lesson Title
Lesson(s)
                  AJE45101                   Values and Ethics

                  AJE45102                   Business Skills

Clearance         Security Level: Unclassified
Access            Requirements: There are no clearance or access requirements for the lesson.

Foreign           FD5. This product/publication has been reviewed by the product developers in
Disclosure        coordination with Fort Jackson/Soldier Support Institute foreign disclosure
Restrictions      authority. This product is releasable to students from all requesting foreign
                  countries without restrictions.




                                                        2
References

                  Number                Title                       Date                      Additional
                                                                                             Information

                  DoDFMR, Vol. 5        Disbursing Policy and       20 Oct 2004           Put online
                                        Procedures                                       address here.

                  FM 1-06 (14-100)      Financial Management        07 May 1997        Chapter 2, put
                                        Operations                                     current on-line
                                                                                       address here

Student Study     None
Assignments

Instructor        One primary instructor
Requirements
                  The Instructor:

                           a. Must be of the grade authorized by TDA series

                           b.   Must meet physical qualifications IAW AR 600-9

                           c.   Must have served as a comptroller at the tactical or operational level

                           d. Must be Functional Area (FA) 44/45 qualified and a graduate of the
                              Command and General Staff Officer Course (CGSC) or the FA 45 ILE
                              course

                           e. Must have completed the Planning, Programming, Budgeting, and
                              Execution System (PPBES) Course; the Resource Management
                              Budget Course (RMBC); and the Resource Management Tactical
                              Course (RMTC).

                           f.   Must have attended the SSI staff and faculty course (or equivalent
                                TRADOC approved course) within the past five years.

Additional        Name                                                 Stu       Qty     Man Hours
Support                                                                Ratio
Personnel         None
Requirements


Equipment         ID                                                 Stu       Instr   Spt     Qty         Exp
Required          Name                                               Ratio     Ratio
for Instruction   None
ratios                                                                                         1           NO
                  Erasable Marker Board
                                                                                               1           NO
                  Overhead Projector Semi-Portable
                                                                                               1           NO
                  Computer Preloaded with Windows 2000 (or
                  higher) Operating System
                                                                                               1           NO
                  Internet Access




                                                      3
                                                                                               1         NO
                 PowerPoint or PowerPoint Viewer Software
                                                                                               1         NO
                 LCD Projector


Materials        Instructor Materials:
Required
                 Instructor Guide

                 Slides (Appendix A)

                 Handouts (Appendix D)
                 Student Materials:
                 Student Guide

Classroom,       Classroom for 1924 personnel with arm chairs and tables
Training Area,
and Range        The classroom will be set up in a general purpose seminar configuration.
Requirements

Ammunition       Id      Name                                           Exp       Stu        Instr        Spt
Requirements                                                                     Ratio       Ratio        Qty
                 None



Instructional    NOTE:    Before presenting this lesson, instructors must thoroughly prepare by studying this
Guidance                  lesson and identified reference material.

                          Instructors should also ensure that all required equipment and materials are
                          available prior to the start of the class.

Proponent        Name                        Rank         Position                    Date
Lesson Plan
Approvals




                                                      4
SECTION II.      INTRODUCTION


                 Method of Instruction: Lecture/DiscussionConference
                 ________
                 Instructor to Student Ratio is: 1:1921
                 Time of Instruction: 5 Mins.
                 Media: Slides

Motivator         NOTE: Show Slide #1 – FA 45 Intermediate Level Education (ILE) – Disbursing
                  Operations

                  NOTE: Show Slide #2 – Terminal Learning Objective
                  NOTE: Refer to the slide as you tell the students:

Terminal          NOTE: Inform the students of the following Terminal Learning Objective
Learning          requirements.
Objective
                  At the completion of this lesson, you [the student] will:
                  Action:           Explain disbursing operations, the duty positions of the cash
                                    branch, and automated and manual disbursing methods.

                  Conditions:       In the classroom environment, using reading assignments,
                                    classroom discussion and scenarios.

                  Standards:        Correctly answer 70% of questions asked in Ist Interim Module
                                    Testan end-of-course examination.

Safety            None
Requirements

Risk              Low
Assessment
Level

Environmental     NOTE: It is the responsibility of all soldiers and DA civilians to protect the environment from
Considerations    damage.

Evaluation        NOTE: Questions related to this lesson will be included in the first interim module exam.


Instructional     NOTE: Show Slide #3 through #5 – Enabling Learning Objectives
Lead-In
                  NOTE: Refer to the slide as you tell the students:

                  There are eight ELOs that support the Terminal Learning Objective for this lesson.
                  They are:

                      Explain the organization of a disbursing operation at the Division level.

                      Identify the major responsibilities of the Disbursing Officer at the Division level.

                      Identify the major duty positions of the Cash Collection OfficerBranch.




                                                         5
    Discuss the requirements to safeguard assets.

    Explain the purpose of the key forms used for daily and monthly accountability
    in deployed areas and for currency conversion.

    Define the certifying policies.

    Describe disbursing methods in an automated environment using SRD-1

    Describe disbursing methods in a non-automated environment.

NOTE: Show Slide #6 – Acronyms And Terms
                                                                                     Formatted: Space Before: 6 pt

Transition: As we go through this lesson, refer to your student guide if you
encounter any acronyms or terms you do not understand.




                                      6
SECTION III.      PRESENTATION


NOTE:     Inform the students of the Enabling Learning Objective requirement.

A.        ENABLING LEARNING OBJECTIVE

              ACTION:             Explain the organization of a disbursing operation at the Division
                                  level.

              CONDITIONS:         In a classroom environment, given an interim module examination
                                  without notes.

              STANDARDS:          Correctly answer 70% of questions asked in an end-of-course ?
                                  examination in accordance with instructional material presented.

1.       Learning Step / Activity 1. Identify tactical resource management organizations
                    Method of Instruction:   Lecture/DiscussionConference
              Instructor to Student Ratio:   1:1921
                      Time of Instruction:   30 mins
                                   Media:    Slides
         a. Before looking at disbursing operations at the Division level, let’s review the entire financial
            management structure in a deployed area. In deployed areas, financial management
            support is generally provided on a direct support (DS) or general support (GS) basis.

         b. Financial management organizations are structured in a manner that best supports
            commanders in terms of both resource management and finance operations. At the end of
            this learning activity, you will be able to identify command and control of financial
            management at the tactical level.

         c.     Deployment is a complex process. Units may have to deploy anywhere in the world with a
                force that may range from a small specialized element to a corps or larger force. The
                financial management challenge of providing the right resource management and finance
                support to the properly sized force at the right time and place is equally complex.

         d. Planners and commanders decide the proper resource management support requirements
            to meet the needs of the deploying force.

         e. Resource Managers (RMs) work closely with finance disbursing officers and contractors to
            support commanders at the strategic, operational, and tactical levels, throughout the range
            of military operations. This is called the fiscal triad.

         f.     There are three levels of command and control for resource management. They are

                (1) Strategic financial management (FM)

                (2) Operational FM

                (3) Tactical FM




                                                         7
NOTE:   Show Slide #7 – Strategic Financial Management. This section needs to talk the Financial
        Management Center design

        Discuss the strategic level of command and control of FM. Point to each graphic as you discuss it.
        This is a brief review of information previously learned in the Resource Management Tactical Course
        (RMTC).

        g. At the strategic level, the role of FMs is to execute statutory requirements and
           congressional or administrative mandates.

            (1) The primary unit at the strategic level is the unified command. For joint commands
                especially, Joint Publication (JPUB) 1-06 states that the joint comptroller, the J8, is
                responsible for financial management.

            (2) A unified command has a broad, continuing mission under a single commander and is
                comprised of two or more military departments. The President establishes and
                designates it through the Secretary of Defense (SECDEF) with the advice and
                assistance of the Chairman of the Joint Chiefs of Staff (CJCS).

            (3) A unified command is also known as a Unified Combatant Command (UCC).

            (4) Resource management functions at the strategic level primarily fall under the control of
                the Assistant Secretary of the Army for Financial Management and Comptroller (ASA
                FM&C) in the Pentagon and the Deputy Chief of Staff for Resource Management
                (DCSRM) located with the unified command.

            (5) The comptroller for a unified command provides a single staff office to oversee all FM
                and RM requirements for the combatant (unified) commander and to act as liaison to
                subordinate Joint Force Commanders (JFCs). The unified command comptroller may
                be a principal staff officer, such as DCSRM (G8), or a special staff officer.

            (6) All financial operations at the strategic level are the responsibility of the Defense
                Finance and Accounting Service (DFAS).

NOTE:   Show Slide #8 – Operational Financial Management.

        Discuss the operational command and control of FM. Point to each graphic as you discuss it. This
        is a brief review of information previously learned in the Resource Management Tactical Course
        (RMTC).

        h. Operational level FM is critical in that it allows the Army to perform its war fighting mission.
           The majority of wartime financial management operations take place at the operational level
           and below. Army commanders at all levels are subject to laws and FM regulations
           governing obligations, disbursing, currency usage, expenditures, and limitations on the use
           of public funds.

            (1) At the operational level, the major units are the Joint Task Force (JTF) and the Army
                Service Component Command (ASCC).

            (2) The JTF comptroller is the principal resource manager reporting to the JTF commander.
                The JTF comptroller is either a principal staff officer or a member of the special staff.

            (3) The Commander JTF (CJTF) may designate a component commander’s comptroller to
                have the dual mission of supporting both the JTF and the ASCC.


                                                    8
           (4) The Deputy Chief of Staff for Resource Management (DCSRM (G8)), from the
               comptroller team, is in direct support of the ASCC.

           (5) The Comptroller team is comprised of subordinate organizations detached in support
               roles. The comptroller provides resource management staff cells to the headquarters of
               the ASCC, DCSRM (G8) and the subordinate corps ACSRM (G8)).

           (6) Financial operations at the JTF are the responsibility of the finance financial
               management command (FMCOM) of each of the service components.

NOTE:   Show Slide #9 – Organization of the FMCOM.

           (7) The FMCOM has direct support (DS) responsibility to the ASCC and has command and
               control of several Financial Management Battalions (FM BN) that provide direct DS to
               tactical units. The FMCOM provides the following types of functional support in its DS
               role.

               (a) Command Section.

                   i     The commander is responsible for the operational or strategic tasks that
                         support the theater or ASCC.

                   ii    The commander has a dual role as the ASCC Finance and Accounting staff
                         officer.

                   iii   The commander assumes responsibility for the policy, overall direction, and
                         coordination of strategic and operational FM tasks that pertain to all Service
                         components, to include command and control of other Services’ FM elements.

                   iv    The commander has command and control over all FM Battalions (BNs)
                         assigned to the theater.

                   v     The deputy commander has oversight of the staff, the finance operations
                         section, and the headquarters and headquarters detachment.

               (b) Headquarters and Headquarters Detachment (HHD). The HHD commander:

                   i     Provides unit-level support to personnel assigned to the FMCOM.

                   ii    Provides for administration, training, supply, maintenance, nuclear, biological
                         and chemicalchemical, biological, radioactive, and nuclear (NBCCBRN)
                         operations, life support, and Uniform Code of Military Justice (UCMJ) actions.

                   iii   Coordinates the deployment of assigned personnel and equipment.

                   iv    Supervises physical establishment of facilities, to include the Tactical
                         Operations Center (TOC), upon arrival at a new location. This includes
                         ensuring adequate communications support for the TOC, mobile operations
                         and the ability to move day or night.

                   v     To meet the requirement for split-based operations, ensure adequate
                         transportation, maintenance, communication, power generation, global
                         positioning, and life support assets are available.

               (c) Comptroller Team. The FMCOM comptroller team:



                                                   9
    i     Analyzes the supported commander’s tasks and priorities and identifies the
          financial and manpower resource requirements necessary for the
          theater/corps commander to accomplish the mission.

    ii    Formulates FM policy for the theater in accordance with DoD directives.

    iii   Acquires, programs, budgets, allocates, distributes, and controls all funds for
          a myriad of requirements.

    iv    Evaluates, certifies, and reports the execution of funds.

    v     Provides critical advice to the commander on the best allocation of scarce
          resources.

    vi    Directs or coordinates analysis of current and future programs and budgets

(d) Internal Control Section.

    i     Operates under direct control of the FM commander.

    ii    Ensures adherence to regulatory guidelines, directives, management controls
          and procedures.

    iii   Ensures adherence to the above by all operational elements of the FM
          command and subordinate FM BNs.

(e) Finance Operations Section.

    i     Develops Army component finance and accounting (F&A) policy and provides
          technical guidance.

    ii    Is responsible for central funding and any theater accounting functions that
          are not conducted in the Designated Finance Support Activity (DFSA).

    iii   Assists the FMCOM commander in coordinating financial support, and acts as
          the Army liaison with USAFINCOM and DFAS.

(f) Cash Management Branch.

    i     Responsible for currency (U.S. and foreign) funding for the ASCC/Theater.

    ii    Coordinates with the host nation (HN) and military banking facilities to provide
          currency to the FM BNs and other Services or allied forces based on inter-
          service and intergovernmental agreements.

    iii   Serves as the funding element and maintains a DSSN account with the U.S.
          Treasury.

    iv    Coordinates the establishment of any Local Depositary Accounts (LDAs)
          needed within the theater.

    v     May be designated to provide currency to all components of a joint and/or
          multinational force.

(g) Policy Branch.



                                  10
    i     Provides advice regarding the interpretation and dissemination of financial
          management and accounting directives, policy, and guidance.

    ii    During pre-deployment stage of operations, recommends which FM functions
          to establish in the theater and which functions to retrograde to DFAS.

    iii   Provides technical operating guidance and data management for FM
          functions.

    iv    Provides guidance for the types of funds, use of funds, and accounting of
          funds for the operation.

    v     Assists in coordinating civil-military operations with the G5 and provides
          advice on inflationary trends, International Balance Of Payments (IBOP), and
          related wartime/contingency economic issues.

    vi    Conducts economic impact assessments of the Action Officer (AO) in
          conjunction with the G5 and civil affairs (CA) officials.

(h) Accounting Branch.

    i     Performs the functions that are not retrograded to DFAS.

    ii    Performs Appropriated and Non-Appropriated Fund (AF and NAF) accounting
          for the ASCC/Theater.

    iii   Maintains accounting records and reports the status of all funds distributed to
          the supported commands.

(i) Personnel (S1). The S1 and staff are responsible for:

    i     Managing all personnel and administrative functions of the FMCOM and
          subordinate FM BNs.

    ii    Coordinates with the servicing personnel agencies for all personnel service
          support (i.e., strength management, replacement operations, and MWR).

    iii   Coordinates with subordinate FM BNs and the HHD to ensure that all
          personnel actions affecting FMCOM personnel are accurate and timely.

    iv    Reports strength, officer and enlisted evaluation reports, administration of
          awards, postal, distribution operations and quality assurance inspections
          within the FM units in the AO.

(j) Intelligence/Operations and Training (S2/S3). The S2/S3 and staff are responsible
    for:

    i     Intelligence, security, operations, plans, organization, and training.

    ii    Recommends the proper use of FM units in the AO.

    iii   Coordinates the overall operation and readiness posture of the units.

    iv    Develops operations plans, annexes, contingency plans and unit status
          reports.



                                   11
    v     Supervises the stationing of the FMCOM and subordinate FM BNs.

    vi    Coordinates stationing requirements with the ASCC staff and supported units,
          and considers the capability to provide FM support to all units.

(k) Logistics (S4). The S4 and staff are responsible for:

    i     Assisting assigned FM BNs with the logistical support requirements
          necessary for mission accomplishment.

    ii    Obtain and coordinate for necessary life-support items from other units, as the
          FMCOM is not organized for total self-sufficiency.

    iii   Coordinates with the Theater Support Command (TSC) for critical external
          support requirements related to communication, transportation, maintenance,
          supply, food, and medical service. These requirements are beyond its basic
          load requirements.

    iv    Develops coordination plans for transportation support, location of terminals
          (rail, air, truck), main supply routes, other major travel routes, landing zones,
          schedules (march tables, time tables), and traffic control and regulation
          measures (restrictions, allocation priorities, control points).

    v     Develops plans for required maintenance support (priorities, location of
          maintenance units, facilities, collections points, and evacuation procedures).

    vi    Reports on equipment status issues for the FMCOM and all assigned FM
          BNs.

    vii   Ensures compliance with all applicable environmental restrictions and
          regulations.

(l) Information Systems (S6). The S6 and staff are responsible for:

    i     Coordination the information network and for all automation and
          communication issues of the FMCOM.

    ii    Coordinates information management issues between the FMCOM and FM
          BNs.

    iii   Coordinates and provides installation software and hardware updates on the
          financial management tactical platform (FMTP).

    iv    Provides for internal maintenance of the FMTP and coordinates necessary
          external maintenance support.

    v     Interfaces with supporting signal units for communication support as
          necessary.

    vi    Ensures system integrity against viruses and ensures appropriate system
          security measures are in place.

(m) FM BNs. A variable number of BM FM BNs are assigned depending on need and
    provide direct support to division-sized units in the Corps.




                                   12
NOTE:    Show Slide #10 – Tactical Financial Management.

         Discuss the tactical command and control of FM. Point to each graphic as you discuss it. This is a
         brief review of information previously learned in the Resource Management Tactical Course (RMTC).

        i.     The majority of financial and resource management functions are executed at the tactical
               level. The Corps ACSRM/Division RM and the Finance Group/Finance Battalion (FG/FB)
               commanders are the principal staff advisors to the corps/division commander, staff, and
               subordinate commanders in all matters relating to financial and resource management
               operations.

        j.     There are several units performing tactical command and control functions.

               (1) At the corps level it is the ASCRM (G8) – a staff level position.

               (2) At the division/Corps Support Command (COSCOM) level:

                   (a) The COSCOM, located in the corps rear area, provides combat service support to
                       the entire corps.

                   (b) The division ACSRM (G8) is at the staff element which provides direct support to
                       the division and performs the RM functions of the division.



2.      Learning Step / Activity 2. Levels of Finance Support
                   Method of Instruction:   DiscussionLecture/Conference
             Instructor to Student Ratio:   1:1921
                     Time of Instruction:   15 mins
                                  Media:    Slides

NOTE:    Show Slide #11 – Levels of Financial Support

        a. Army commanders at all levels are subject to laws and financial management regulations
           governing obligations, expenditures, and limitation on the use of public funds.

               (1) To ensure commanders are capable of receiving the technical expertise necessary to
                   stay within the law, direct access is maintained with the Army Service Component
                   Command (DCSRM) and the Financial Management Command (FMCOM) commander.

               (2) The DCSRM and the FMCOM commander are the points of contact for resource
                   management operations and finance operations, respectively. The DCSRM and
                   FMCOM commander ensure that financial management operations are conducted to
                   adequately support the Commander in Chief (CINC) and the ASCC.

               (3) Both the DCSRM and the FMCOM commander conduct deliberate and crisis action
                   planning. Similar planning and coordination is done at the division level between the
                   division RM and the FM BNs.

        b. It is at the tactical level that the majority of financial management functions are executed.

               (1) The Corps ACSRM/Division RM and the FG/FB commanders are the principal staff
                   advisors to the corps/division commander, staff, and subordinate commanders in all
                   matters relating to financial management operations.



                                                      13
(2) In addition to many operational responsibilities, the ACSRM and the FG commander
    have the tactical responsibilities delineated in the paragraphs below.

(3) Tactical RM responsibilities include:

    (a) Develop command resource requirements.

    (b) Plan, develop, administer, and supervise the preparation, analysis, justification, and
        execution of programs and budgets.

    (c) Manage and supervise manpower programs depending on Mission, Enemy,
        Terrain, Troops, and Time available (METT-T). This includes documenting
        manpower programs and matters relating to a Table of Distribution and Allowances
        (TDA), Modification Table of Distribution and Allowances (MTDA), Modification
        Table of Organization and Equipment (MTOE), manpower control, and activation,
        reorganization, or inactivation of MTOE/TDA units.

    (d) Acquire funds.

    (e) Distribute and control funds

        i     Distribute obligation authority to Army ordering officers

        ii    Fund Army contracting officer activities

        iii   Fund Army component actions (emergency leave, Temporary Duty (TDY),
              orders, etc.)

    (f) Track commitments and obligations.

    (g) Execute RM battlefield functions

(4) Tactical finance responsibilities include:

    (a) Support the local procurement process

    (b) Provide banking and currency support

    (c) Provide essential accounting support and capture costs
                                                                                                 Formatted: Font color: Auto
    (d) Maximize service to the soldiers at the Battalion S1 level

    (e) Provide DoD civilian pay support

    (f) Provide travel support

    (g) Provide U.S. pay support

    (h) Provide non-U.S. pay support

    (i) Support bounty programs

    (j) Support Non-Combat Evacuation Order (NEO) operations
                                                                                                 Formatted: Font color: Auto
    (k) Make condolence condolence payments                                                      Formatted: Font color: Auto



                                       14
                   (l) Provide financial management advice, guidance and analysis

                   (m) Provide family support

        c.     The Financial Management Battalion (FM BN) Direct Support (DS) provides direct support
               to division-sized units. The FM BN provides command and control for its attached Financial
               Management Detachments (FM DETs). In addition it provides for:

               (1) Headquarters and Headquarters Detachment (HHD)

               (2) Internal Review

               (3) Internal Control

               (4) Disbursing Section

        d. At the brigade level the Financial Management Detachment (FM DET) in direct support
           (DS) performs financial operations and provides area support. The FM DET (DS) has no
           RM capability; the division comptroller team provides this capability. The FM DET (DS) is
           normally comprised of the following elements:

               (1) Headquarters Section

               (2) Disbursing Section

               (3) Three (3) Financial Management Support Teams (FMSTs)

        e. At the battalion level, the Executive Officer (XO) usually performs RM functions. Finance
           support is provided by an FMST from the FM DET (DS). FMSTs are comprised of soldiers
           with a finance specialty of 44.
                                                                                                            Formatted: Font color: Auto
        f.     A variable number (generally between three to seven) of FM DETs, depending on need,
               provide direct support to brigade-sized units in the division. Generally one FM DET
               services each Brigade Combat Team.                                                           Formatted: Font color: Auto



3.      Learning Step / Activity 3. Disbursing operations at the Division level
                   Method of Instruction:   Lecture/Conference
             Instructor to Student Ratio:   1:21
                     Time of Instruction:   60 mins
                                  Media:    Slides

NOTE:   Show Slide #12 – Organization of the FM BN

        a. In accordance with FM 14-100, a FM BN provides support on an areas basis, typically
           within a division or COSCOM boundary. Typically this support is provided to all Army, joint,
           and multinational commands, units, soldiers and authorized civilians located within the FM
           BN assigned area of responsibility.

        b. The FM BN is under the command and control of the Finance Group (FG) commander (or
           the FMCOM commander if the FM BN is to provide support to the ASCC. At the discretion
           of the FG Commander, the FM BN may be assigned a DS role to a division-sized element.




                                                     15
        c.   The FM BN has a modular, tailorable design that deploys to the AO only those elements
             required to support the deployed force.

             (1) Its mission is to provide FM support to all Army, joint, and multinational commands,
                 units, soldiers, and authorized civilians located within the FM BNs assigned AOR. In
                 support of this mission, the FM BN:

                 (a) Generally provides DS to a division or corps, or general support (GS) on an area
                     basis. Based on the factors of METT-TC, the FMCOM will determine what type of
                     support the FM BN will provide.

                 (b) Provides sustainment support for:

                     i     Contracting operations by providing timely and accurate commercial vendor
                           and contractor payments.

                     ii    Disbursing and funding operations in conjunction with the division comptroller
                           team.

                     iii   Enemy Prisoner of War (EPW) support.

                     iv    Non-U.S. pay support and limited U.S. pay support.

             (2) FM BNs are under the command and control of a designated FMCOM. Each FMCOM
                 commands and controls the FM BNs that provide support to echelons above corps
                 (EOC) units, and provide planning, policy, and guidance to all FM units in the theater or
                 the ASCC. One FM BN provides FM support to each corps and division.

             (3) The FM BN is capable of augmenting other finance units with modular FM DETs
                 depending on the situation. Generally, the FM BN consists of an HHD and 2-6 FDs.
                 The basic FM BN structure is shown below.

        d. The FM BN Organization.

             (1) The Command Section.

                 (a) The FM BN commander is responsible directly to the FG commander. When in
                     direct support (DS) the commander will coordinate with supported
                     division/COSCOM commanders for the execution of all tactical finance functions in
                     the FM BN area of responsibility.

                     i     When assigned in this DS mode to a division, the FM BN commander also
                           serves as the staff finance and accounting officer for the division.

NOTE:   Show Slide #13 – Disbursing Station Symbol Number (DSSN).

        If necessary, explain to students what a DSSN represents and its significance to the FM BN
        commander as the finance officer. Emphasize that as a DSSN account holder, this individual is
        subject to and must follow all rules of the United States Treasury. Many times these responsibilities
        might conflict with the desires of command. When that happens the Treasury rules must apply. The
        finance officer is an agent of the U.S. Treasury and his “treasury account” is identified through the
        DSSN.

                     ii    The FM BN has its own Disbursing Station Symbol Number (DSSN).




                                                   16
        iii   The FM BN Commander is the finance officer (Treasury account holder) for
              the disbursing account (the DSSN).

    (b) The FM BN executive officer (XO) has oversight of the coordinating staff, the
        disbursing division, the processing division, the assigned FDs, and the HHD.

    (c) The FM BN Command Sergeant Major (CSM) supervises the Non Commissioned
        Officer (NCO) support channel within the battalion.

(2) The Division Comptroller Team. Refer back to Slide 12 as you contine to discuss the
    organization of the FM BN

    (a) The division comptroller team’s mission is to analyze the division commander’s
        tasks and priorities, and to identify the financial and manpower resource
        requirements that will enable the commander to accomplish the mission. There is
        one Comptroller Team per Division. (Under this set-up emphasize that the Division
        Comptroller team is not organic to the Finance Battalion)

    (b) The division comptroller team:

        i     Acquires, programs, budgets, allocates, distributes, and controls all funds for
              all requirements.

        ii    Evaluates, certifies, and reports the execution of funds.

        iii   Provides critical advice to the commander on the best allocation of scarce
              resources.

        iv    Directs or coordinates analysis of current and future programs and budgets.

(3) The Internal Control (IC) Section.

    (a) The IC section operates under the direct supervision of the FM BN commander.
        This ensures a high state of technical proficiency is maintained in all operational
        elements of the FM BN and the FDs.

    (b) IC evaluates the effectiveness of existing procedures, internal controls, and ensures
        compliance with applicable regulations and directives.

(4) The Headquarters and Headquarters Detachment (HHD).

    (a) The HHD provides unit-level support to personnel assigned to the FM BN. The
        HHD:

        i     Conducts administration, training, supply, maintenance, NBC CBRN
              operations, and UCMJ actions.

    (b) The HHD Commander:

        i     Coordinates the deployment of FM BN personnel and equipment.

        ii    Upon arrival at a new operational location, supervises the physical
              establishment of facilities for the FM BN, to include the TOC.




                                         17
             (i) The FM BN must have sufficient organic transportation and
                 communication assets to perform numerous and simultaneous support
                 missions, and must be able to move during either daytime or nighttime.



             (ii) The HHD has enough communications assets for the TOC and for mobile
                  operations. In addition, the requirement to execute command and control
                  and to conduct split-based operations,operations increases the FM BN’s
                  need for adequate transportation, convoy coordination, maintenance,
                  communication, power generation, global positioning, and life support
                  assets.

(5) The S1/S4 Section.

   (a) The S1 has staff responsibility for all personnel functions and administrative matters
       for the FM BN and its subordinate FM DETs.

       i     The personnel services NCO supervises the battalion Personnel And
             Accounting Center (PAC), coordinates responsibilities of MWR activities for
             the battalion, and assists the commander in establishing and supporting
             policies.

       ii    The S1 coordinates all personnel service support, including the manning and
             replacement of soldiers to the subordinate FM DETs. In addition, the S1 has
             staff responsibility for strength reporting, officer and NCO efficiency reporting,
             administration of the awards program, and other personnel functions.

   (b) The S4 has staff responsibility for supply, maintenance, transportation, facilities,
       food service, and other logistics. The primary mission of the S4 is to provide FM
       DETs with necessary logistical support.

   (c) The S1/S4 section coordinates certain life support functions (logistics, health,
       religious, and legal services) with other units, as the FM BN is not organized with
       the assets to be totally self-sufficient.

(6) The S2/S3 Section.

   (a) The S2/S3 is the principal staff officer for the commander in matters concerning
       intelligence, security, operations, plans, organization, and training. The S2/S3:

       i     Coordinates the overall operation and readiness posture of the FM BN,

       ii    Provides financial policy and plans to the FM BN and subordinate FM DETs,

       iii   Provides unit status reports for the FM BN commander.
                                                                                                  Formatted: Font color: Auto
       iv    Maintains a constant presence in the division rear Command Post (CP) and
             the FM BN headquarters. Placing an officer or NCO forward in the tactical
             operations center (TOC) is determined by distance between locations and
             availability of facilities, transportation assets, and personnel.

       v     Supervises the stationing of the FM BN and subordinate FM DETs. In
             positioning these units, the S2/S3 considers the FM support capability, units




                                      18
                         to be supported, and access routes for movement to the area of operation
                         (AO).

                  vi     Coordinates all FM support in the battalion’s AO.

                  vii    Tracks missions conducted by subordinate FM DETs and FMSTs.

                  viii   Coordinates the overall integration of the base defense scheme and the unit’s
                         base defense plan, and coordinates with the base cluster commander to
                         determine how and when the FM BN fits into the overall defense scheme.

           (7) The S6 Section.

              (a) The primary responsibility of the S6 section is to support the information operations
                  of the FM BN, including the information network for all automation and
                  communications issues in the battalion and subordinate FM Dets. The S6:

                  i      Coordinates and provides installation of software and hardware updates on
                         the FMTP

                  ii     Interfaces with the supporting signal unit for communications support

                  iii    Is responsible for internal maintenance of FMTP, and for coordinating
                         required external maintenance support for the system

                  iv     Ensures system integrity against viruses and ensures that appropriate system
                         security measures are in place

           (8) The Disbursing Section.

              (a) The disbursing section:

                  i      Makes payments on properly prepared and certified vouchers

                  ii     Receives collections

                  iii    Receives and controls all currencies

                  iv     Maintains accountable records

                  v      Cashes negotiable instruments
                                                                                                          Formatted: Bullets and Numbering
                  vi     Issues U.S. Treasury Checks

                  vivii Makes foreign currency conversions

                  viiviii Determines the need for US, foreign, and script currencies and its
                          replenishment.

              (b) The disbursing section also provides funding for assigned FM DETs. The FM DETs
                  disbursing personnel may augment the FM BN disbursing section when co-located
                  with the FM BN.

NOTE:   Show Slide #14 – Organization of the FM DET




                                                 19
e. The Financial Management Detachment (FM Det).

   (1) The FM Det mission is to provide area financial support to a brigade task force or
       equivalent size unit (for example, a Division Support Command (DISCOM) or corps
       support group), or as directed by the FM BN commander. The FM Det:

       (a) Provides timely and accurate payment for contractor and commercial vendor
           support

       (b) Disbursing and funding support

       (c) EPW, non-U.S. pay, and limited U.S. pay support. The FM Det has organic
           transportation assets to move all of its TOE equipment.

       (d) Mobility is required to provide effective financial support for units over
           geographically dispersed locations on the battlefield day or night. The FM Det is
           equipped with financial management tactical platform (FMTP), which enables
           effective operations through the use of real-time data and online capability. The FM
           Det rules of allocation are as follows: four per division, two per CSG(F), three per
           CSG(R), two per corps, one per ASG, TRANSCOM, and ENCOM.

   (2) The FM Det commander, who is also the Disbursing Officer (DO), reports directly to the
       FM BN commander. Detachment commanders:

       (a) Have UCMJ authority over all detachment personnel

       (b) Coordinate the deployment of FM Det personnel and equipment

       (c) When deployed away from the FM BN HHD location, coordinates with the
           supported headquarters to determine how and when the FM Det supports the
           overall base defense scheme and integrates the unit’s base defense plan

       (d) Upon arrival at a new operational location, supervises the physical establishment of
           facilities for the FM Det, to include the TOC. The detachment sergeant coordinates
           administration, transportation, supply, life support, maintenance, and NBC CBRN
           operations.

   (3) The disbursing section is headed by a 1LT (02) disbursing officer (44A00) with support
       from an E7 (44C40) disbursing NCO. The disbursing section:

       (a) Funds the financial management support teams (FMSTs) and paying agents

       (b) Makes payments on properly prepared and certified vouchers

       (c) Receives collections

       (d) Receives and controls all currencies

       (e) Cashes negotiable instruments

       (f) Makes foreign currency exchanges

       (g) Maintains accountable records

       (h) Determines currency requirements.



                                        20
   (i) Augments the FM BN when co-llocated with the FM BN. The Disbursing Officer
       (DO) provides cash control and certifies payments. The Sergeant First Class (SFC)
       is the noncommissioned officer in charge (NCOIC) of the disbursing section, and is
       deputy to the DO. When METT-TC dictates, the DO or SFC deploys with an FMST
       to provide leadership and technical expertise.



(4) The FM Det generally has three financial management support teams (FMSTs).

   (a) Two of the FMSTs are designed to be especially robust and mobile; deploying
       away from the detachment headquarters over significant time and distance, and
       operating independently to support the largest part of procurement missions. When
       METT-TC dictates, these FMSTs can be augmented with additional support from
       the detachment leadership.

   (b) The third FMST remains with the detachment headquarters, but can deploy as a
       mobile team when led by an SFC or above from the disbursing section or
       detachment headquarters.

   (c) The FMSTs provide support to all units and soldiers in their AOR. The FMST
       provide:

       i     Timely and accurate commercial vendor and contract payments,

       ii    Disbursing and funding support,

       iii   Full Spectrum military pay support, Enemy prisoner of war (EPW) pay
             support, non-U.S. pay support, and limited U.S. pay support.

   (d) All accountable items are cleared through the disbursing section of the FM Det.
       FMSTs use organic transportation, communications, and equipment to the
       maximum extent possible to avoid burdening supported units.

   (e) When FMST transportation, communication, and equipment requirements exceed
       the parent detachment or battalion’s organic assets, supported units are required
       either to travel to the FM Det/FM BN location for financial support or to provide the
       support needed to convoy the FMST to and from the supported unit.

   This section will become obsolete within the next couple of years. The Finance Corps
   has already started deactivating Finance Battalions and replacing them with Financial
   Management Companies. Also, Finance Groups and Finance Commands will be
   replaced by Financial Management Centers. I have attached a copy of the new
   Finance Corps structure to give you a better idea of what is around the corner. Also the
   14-100 will be replaced by the Joint Publication 1-06.




                                     21
B.      ENABLING LEARNING OBJECTIVE

         ACTION:               Identify the major responsibilities of the Disbursing Officer at the
                               Division level.

         CONDITIONS:           In a classroom environment, given an interim module examination
                               without notes.

         STANDARDS:            Correctly answer 70% of questions asked in an end-of-course ?
                               examination in accordance with instructional material presented.

1.      Learning Step / Activity 1. The Major Responsibilities of the Disbursing Officer at the Division
        Level
                   Method of Instruction:   DiscussionConference
             Instructor to Student Ratio:   1:1921
                     Time of Instruction:   60 mins
                                  Media:    Slides

NOTE:   Show Slide #15 – Disbursing Office.

                   (note: any reference of the FM BN Commander should be changed to FM Company
                   Commander. The new changes will not adversely affect the FM Detachments.)

                   (a) The FM BN commander is responsible directly to the FMCOM commander and
                       coordinates with supported commanders (Division/COSCOM for the execution of all
                       tactical FM functions and the establishment of finance disbursing offices in the FM
                       BN Area Of Responsibility (AOR).

        a. When assigned in a direct support mode to a division, the FM BN commander also serves
           as the staff FM officer to the division. If the FM BN has its own DSSN, the commander also
           serves as the finance officer (the disbursing officer) and is the Treasury account holder for
           the disbursing account.

        b. As the disbursing officer, the FM BN commander is ultimately responsible for all activities
           conducted by the disbursing section. The FM BN disbursing section is staffed as follows:

               (1) One – 1LT (02) 44A00 Disbursing Officer (Deputy) (note: The BN Commander or the
                   FM Company Commander is the actual DO. He may (and always does) appoint a
                   deputy in their place.)

               (2) One – E7 44C40, Disbursing Manager

               (3) Two – 44C10 Disbursing Technicians

NOTE:   Show Slide #16 – Disbursing Officer.

        c.     The most important responsibility that the DO has (regardless of rank and level of support)
               is that he serves as an agent of the U.S. Treasury and is bound to uphold and follow all
               Treasury disbursing rules and regulations. Most notable DOD FMR 7000.14 Volume 5

NOTE:   Stress during the discussion that, first and foremost, the DO focus is as an agent of the United
        States Treasury. The DO holds funds at personal risk. If the DO incurs a loss of funds, he is
        personally responsible for that loss. The discussion below is based on DoDFMR, Volume 5, Chapter



                                                      22
1, paragraph 0104 and 0105.

   (1) The DO is the DSSN Treasury account holder. The DO holds funds at personal risk. If
       the DO incurs a loss of funds, he is personally responsible for that loss.

   (2) As an agent of the US Treasury, the DO is required to follow all procedures contained in
       DoD Financial Management Regulation (DoDFMR), Volume 5, Disbursing Policy and
       Procedures and subsequent instructions published by the Defense Finance and
       Accounting Service (DFAS).

       (a) The commander of the FINCOM is required to ensure that those provisions are
           followed.

       (b) Certifying officers, accountable officials, and paying agents are also required to
           follow the provisions of this volume in the execution of their duties.

   (3) DOs are required to keep safely all the public funds collected by them or otherwise
       placed in their possession and custody.

       (a) Lending, using, depositing in banks, or exchanging for other funds except as
           specifically allowed by law is prohibited.

       (b) DOs are required to safeguard public funds until ordered by the proper authority to
           transfer or pay out the funds. When such orders for transfer or payment are
           received, DOs shall faithfully and promptly make the transaction directed.

       (c) DOs shall do and perform all other duties as fiscal agents of the Treasury
           Department that may be imposed by law or regulations made in conformity to law.
           In case of disaster, DOs shall secure and preserve the accounts of all personnel,
           public money, and such other papers and property, in the order of their importance,
           as circumstances permit.

       (d) DOs are limited to the amount of currency that they may keep on hand for
           operation. Except as otherwise authorized by law and by regulations, it is the duty
           of every DO to deposit funds in excess of amount authorized to be held at personal
           risk with an authorized depositary of the United States without delay.

       (e) Every DO is required to maintain detailed records of all transactions. These records
           shall be available for examination by authorized representatives of the SECDEF
           and the Comptroller General of the United States. Every DO is further required to
           submit periodic financial reports.

       (f) The DO, prior to paying any transaction, shall examine the transaction for legality,
           propriety, limitations, and time frames under the statutes governing the various
           classes of expenditures and for validity under general provisions of law. There is no
           authority for the DO to disburse public funds to satisfy demands which are of
           doubtful validity or which should be supported by judicial action.

       (g) Each payment made by the DO must first be certified by a certifying officer,
           accountable officer, or paying agent of of the Government of the United States.
           These documents must be certified or otherwise verified by a person who, in the
           regular line of duty, has knowledge of the fact or facts certified or otherwise verified
           by that person, and who, when certification is made, shall state in the certification
           that the individual has personal knowledge of the facts certified or otherwise
           verified. In other words, the certifying officer is saying that payment is correct and



                                          23
                     authorized for payment. All certifying officials officers must be on orders and          Formatted: Font color: Auto
                     properly trained.

                 (h) DOs are responsible and accountable for illegal, improper, or incorrect payments or
                     for errors in their accounts even though they may have relied on deputies, agents,
                     and cashiers and the deputies, agents, and cashiers caused the errors.

                     i     A request for relief of the liability for such payments and errors may be
                           submitted by the DO and may also be required by the deputy, agent, or
                           cashier who made the illegal, incorrect, or improper payment or error.

                     ii    Disbursing officers are not liable for payments properly certified by certifying
                           officers even though those payments may prove to be illegal, improper or
                           incorrect.

                           (i) Certifying officers are accountable for illegal, improper or incorrect
                               payments made as a result of their certification even though they may
                               have relied on other accountable officials or automated payment systems.

                           (ii) Certifying officers may request relief of liability for such payments as
                                provided in chapters 6 and 33 of this volume.

        d. The DO is responsible for providing the following disbursing support.

                 (b) (1) Make payments on properly prepared and certified vouchers.

             (1) Receive collections

             (2) Receive and control all currencies.

             (3) Maintain accountable records.

             (4) Cash negotiable instruments.

             (5) Make foreign currency conversions.

             (6) Determine the need for US, foreign, and script currencies and its replenishment.

             (7) Provide funding for assigned FM DETs. The FM DETs disbursing personnel may
                 augment the FM BN disbursing section, when co-located with the FM BN.

NOTE:   Show Slide #17 – Disbursing Officer (Conflicts of Interest)

        e. Disbursing officers, because of obvious conflicts of interest, cannot:

             (1) Be an order approving authority

             (2) Be a certification official for claims of reimbursement

             (3) Handle contingency funds

             (4) Be a fund custodian of any kind.

        f.   Agent Support.




                                                    24
NOTE:   Show Slide #18 – The Deputy Disbursing Officer.

           (1) The Deputy Disbursing Officer (DDO).

               (a) All disbursing officers normally request approval for at least one DDO assigned to
                   their account.

               (b) DDOs are appointments are approved by DFAS. Appointments are by formal letter
                   to the designated DO. The letter states the specific responsibilities of the DDO and
                   includes the statement; “I acknowledge that I am strictly liable to the United States
                   for all public funds under my control”. In other words, the DDO has the same
                   authority and performs the same functions as the DO.

NOTE:   Show Slide #19 – DDO Position Justification.

               (c) In addition, the establishment of a DDO position must be justified by identifying the:

                   i       The number of deputies that currently support the DO

                   ii      The specific duties to be performed by the DDO

                   iii     An estimate of the monthly activity to be handled by the DDO position.

               (d) In many situations where the DO is also the commander, the DDO will be
                   responsible for the day-to-day operations of the DSSN account, while the CDR/DO
                   is responsible for the day-to-day command functions. In these situations, this in no
                   way relieves the DO of any responsibility or liability as the DSSN account holder.

NOTE:   Show Slide #20 – Disbursing Agent Office

           (2) Disbursing Agents.

               (a) A disbursing agent is an agent to the DO who has not been appointed as a DDO.

               (b) Normally, a disbursing agent operates a permanently located disbursing office of
                   considerable size (i.e., most functional areas such as military pay, civilian pay,
                   material, commercial services, etc., being present) that is geographically separated
                   from the DO’s office.

               (c) In some instances, a one or two person disbursing agent offices may be
                   established. The use of disbursing agents, however, is not restricted to geographic
                   separation from the DO.

               (d) Unlike the DO, or deputy DO, a disbursing agent cannot sign/issue U.S. Treasury
                   checks (unless the appointment is changed from disbursing agent to deputy DO).
                   See paragraph 020305, above. A disbursing agent prepares disbursement and
                   collection vouchers as an agent of the DO. Such vouchers become part of the DO’s
                   overall accountability.

NOTE:   Show Slide #21 – Cashier Position

           (3) Cashiers.

               (a) The local DO or disbursing agent shall appoint cashiers in writing.



                                                  25
               (b) Duties include disbursing, collecting and accounting for cash. The cashier may also
                   perform other duties as required, concerning the receipt, custody, safeguarding and
                   preparation of checks and U.S. savings bonds. To facilitate training and effectively
                   utilize personnel, cashiers may perform other duties on days when they do not
                   perform cashier functions.

               (c) An officer, enlisted member, or a civilian employee, with working knowledge of the
                   cash functions and operations, may be designated as cashier.

                   i     The DO or disbursing agent should make a thorough investigation of the
                         selectee to ensure that the individual is of unquestionable integrity.

                   ii    To accomplish this, the DO or disbursing agent should examine personnel
                         records and talk to the individual and other persons as necessary. (Common
                         disqualifiers include severe personal debt and or bankruptcy, criminal record,
                         history of missed bill payments or bounced checks, and mentally unsound
                         personnel.)

                   iii   In addition, a credit report should be obtained if access to a credit reporting
                         service is available. Costs associated with obtaining a credit report are a valid
                         charge to Operations and Maintenance (O&M) funds available to the DO.
                         Credit reports shall be adequately safeguarded against unauthorized perusal.

NOTE:   Show Slide #22 – Paying Agent.

        g. The Paying Agent.

           (1) A significant responsibility of the DO is the funding of paying, or Class-A, agents.
               Paying agents serve for and in the name of a finance commander.

           (2) A battalion or separate company commander will normally appoint the paying agent.
               Commissioned officers, warrant officers, enlisted members, or civilian employees
               satisfactory to the appointing officer may be appointed as paying agents IAW Volume 5,
               DoDFMR, Disbursing Policy and Procedures (DoD 7000.14-R, volume 5).

           (3) The paying agent’s primary responsibility is for properly safeguarding and disbursing
               public currency. Paying agents are appointed to perform specific duties: they are
               appointed either to support the local procurement process, or to provide support to
               individuals. Paying agents cannot perform both of these duties.

NOTE:   Distribute Handout #1 – Paying Agent Appointment Order.

        Show Slide #23 – Appointment Letter.

           (4) The appointment order specifies:

               (a) the finance commander and DSSN to whom the agent is appointed,

               (b) the types of payments to be made,

               (c) the unit to be paid,

               (d) the duration of the appointment,

               (e) the maximum amount to be advanced.



                                                  26
           (5) The paying agent must check the appointment order for correctness and keeps it in his
               possession while performing duties as a paying agent. The paying agent forwards a
               copy of the appointment order to the finance commander to which the paying agent is
               appointed. The finance commander keeps a copy of the appointment order until the
               order expires or is revoked.

           (6) Appointing Commander Responsibilities. Unit commanders who appoint paying agents:

               (a) Ensure that the agents know their responsibilities and duties as explained to them
                   by the DO.

               (b) Provide resources such as transportation, security containers, weapons,
                   ammunition, and armed guards.

               (c) Ensure that other duties of the paying agent do not interfere with or delay the
                   agent’s paying responsibilities.

               (d) Paying agents are appointed to provide individual payment support or local
                   purchase support. A paying agent cannot provide both types of support.

           (7) Finance Commander’s Responsibilities. The finance commander or his designee:

               (a) Briefs new paying agents to inform them of their responsibilities.

               (b) Provides the paying agent with a written copy of instructions regarding the specific
                   functions they are to perform, procedures for the safeguarding and expeditious
                   return of currency and other instructions deemed necessary.

               (c) Has the paying agentsHas the paying agent sign a written statement for permanent
                   file with the DO, acknowledging understanding and receipt of the oral and written
                   instructions.

           (8) Safeguarding Public Funds.

               (a) Paying agents receive funds, and mmust sign for funds received, on DD Form
                   1081, Statement of Agent Officer’s Account. Safeguarding of the funds received is
                   a personal responsibility of the paying officer until funds are returned to the DO and
                   the DD Form 1081 is cleared.

               (b) A paying officer agent may be held personally liable for any currency lost. A paying
                   officer agent may not entrust currency or accountable instruments to another
                   person at any time.

NOTE:   Make sure everyone understands what an accountable instrument is.

               (c) Paying officers agents should complete their duties and return the money and
                   accountable instruments to the DO as quickly as possible, preferably in the same
                   day. If the funds must be retained overnight then they must be kept in a fire-
                   resistant safe with a three-position, dial-type combination lock.

NOTE:   Show Slide #24 – Funds can only be used for….

               (d) Paying agents are directly responsible to the finance commander from whom the
                   funds were received. The U.S. Treasury will legally look to either the finance
                   commander or the paying agent to recover any lost or improperly disbursed funds.



                                                 27
                  i     The paying agent must not use currency for any other purpose than those
                        purposes stated on the appointment orders.

NOTE:   Show Slide #25 – FM 14-100 Requirements

              (Despite the upcoming replacement of the 14-100 the following are all still pertinent to
              today’s Finance operations.)

              (e) In addition, the paying agent must comply with all provisions of the DoDFMR,
                  Volume 5, and FM 14-100. Paying agents will not:

                  i     Lend, use, convert for personal use, deposit in any bank or exchange it for
                        other currency, unless specifically instructed to do so by the finance
                        commander.

                  ii    Mix entrusted currency with personal, nonappropriated, or other currency.

                  iii   Act as witnessing officer of payments.

                  iv    Be designated as the agent of another agent.

                  v     Act as a guard for another agent.

                  vi    Act as both the ordering officer and paying agent.

                  vii   Authorize condolence condolence payments.

NOTE:   Show Slide #26 – Support Types

           (9) Paying agents provide two three types of support

              (a) Local Procurement Support

              (b) Individual Payment Support
                                                                                                          Formatted: Bullets and Numbering
              (c) Commanders Emergency Response Program (CERP) Support

           (10) Local Procurement Support.

              (a) For local procurement support, the unit commander appoints a paying agent on an
                  additional duty appointment order. This authorizesd the paying agent to disburse
                  public currency IAW the appointment letter and instructions from the finance
                  commander.

              (b) The paying officer supports an ordering officer. The ordering officer works under an
                  appointment letter from the contracting officer. The paying agent pays for only local
                  purchases, he provides no individual support. The paying agent and the ordering
                  officer cannot be the same person.

              (c) The paying agent and the ordering officer may be held personally liable for irregular
                  or unauthorized payment.

              (d) Generally the paying agent will generally use an official credit/debit card to make
                  payments whenever possible. When this is not possible, payment will be made
                  using SF 44, U.S. Government Purchase Order-Invoice-Voucher.


                                                28
                   i     The SF 44 is prepared by the ordering officer and should be reviewed by the
                         paying agent in detail before making any payment.

                   ii    The paying agent disburses currency for the goods and service stated on the
                         SF 44 but only after it has been approved by the ordering officer.

                   iii   Individual purchases will not exceed $2,500.00 per vendor per day.
                         (Purchases can be made only for basic every-day type use products such as
                         lumber, nails, fans, etc…) Unless specifically authorized SF 44s cannot be
                         used for things like computers, vehicles, power generators, etc…If there is a
                         question about what can or cannot be bought contact the contracting officer
                         for guidance.)

                   iv    The paying agent clears his account with the finance officer after the payment
                         is made.

NOTE:   Show Slide #27 – Individual Payment Support

           (11)Individual Payment Support.

               (a) For individual support, the unit commander appoints a paying agent on an
                   additional duty appointment order.

                   i     Funds entrusted to the paying agent can only be used for the purposes stated
                         on the appointment letter or order.

                   ii    When appointed to provide individual payment support, the paying agent does
                         not provide local procurement support.

                   iii   As directed, agents may provide individual support to soldiers, sailors, airmen,
                         Marines, and authorized civilians.

               (b) Planning for Individual Payment Support. In planning for individual support the
                   paying agent provides the following:

                   i     Ensure that arrangements for qualified armed guards and transportation are
                         adequate. Routes and times are changed frequently. Prior coordination
                         should be made for preparing the pay area (tables, chairs, lighting, additional
                         security if necessary, and a schedule of payment times for units or individuals.

                   ii    Take appropriate precautions while security is in his possession.

                   iii   When traveling, keep the unit informed of location and expected arrival time. If
                         traveling outside the normal pay area, immediately notify the finance
                         commander.

                   iv    When engaged in the paying functions, do not perform collection functions or
                         solicitations for donations. If authorized, these later functions should be
                         performed at a different time and away from the pay area.

               (c) Receiving Currency. The paying agent is told when and where currency is to be
                   made available. The agent reports to the finance commander as scheduled with
                   the following items




                                                 29
                   i     Military ID card, copy of appointment orders and signature card, copy of
                         ordering officer’s orders and signature card, weapon and ammunition, at least
                         one armed guard, and a military vehicle.

                   ii    Currency amounts are counted and confirmed on a DD Form 1081, Statement
                         of Agent Officer’s Account, which is signed by both the finance commander or
                         his deputy and the paying agent.

                   iii   The finance commander is notified immediately of any discrepancy in either
                         cash or checks received. The finance commander will resolve any
                         discrepancies. Under no circumstances will the paying agent leave the FM
                         unit until he is completely satisfied that the amount of cash received agrees
                         with the amount shown on the DD Form 1081.

                   iv    Upon verification and signing the DD Form 1081, the paying agent and guard
                         go directly to the pay area and upon arrival immediately activate established
                         security measures.

                   v     All payments are made one at a time. Particular attention is paid to ensuring
                         the proper identify of the payee (first name, middle initial, and Social Security
                         Number). Cash must be counted three times before the payee leaves the pay
                         area (once by the agent, a second time by the paying agent to the payee, a
                         third time by the payee before leaving the paying agent). When all efforts
                         have been made to ensure everyone is paid, the paying agent will return all
                         cash and signed and unsigned instruments to the finance commander for
                         closure of the DD Form 1081.



NOTE:   Show Slide #28 – Transactions of the Agent
                                                                                                             Formatted: Bullets and Numbering
               (d) Agent Transactions

                   i     Paying agents providing individual payment support, generally provide that
                         support in three general categories: U.S. Treasury checks, negotiable
                         instruments and vouchers, and currency exchange.

NOTE:   Show Slide #29 – Transactions of the Agent – U.S. Treasury Checks
                                                                                                             Formatted: Bullets and Numbering
                   ii    A U.S. Treasury check is nothing more that a check issued by the U.S.
                         Treasury. The payee must present proper identification to the paying agent.
                         Payment can be made in U.S. dollars or local currency depending on the
                         financial policies established for the AO.

NOTE:   Show Slide #30 – Transactions of the Agent – Negotiable Instruments.
                                                                                                             Formatted: Bullets and Numbering
                   iii   Negotiable instruments can include any of those listed below.

                         (i) Personal checks

                         (ii) Postal money orders

                         (iii) Traveler’s checks

                         (iv) Payment of a travel voucher



                                                   30
NOTE:   The information below regarding cashing personal checks is based on DoDFMR, paragraph
        040201C.

        Distribute Student Handout # 5 - Standing Operating Procedure for Cashing Personal Checks. This
        is an example of an SOP that might be established in an AO.
                                                                                                            Formatted: Bullets and Numbering
                   iv    Commanders shall establish maximum amounts for personal checks that may
                         be cashed by authorized personnel and/or their agents.

                         (i) In overseas areas in which the personnel of two or more Military Services
                             are operating, the senior commander shall ensure a uniform policy.

                         (ii) Although check-cashing privileges are required for authorized personnel
                              and/or their authorized agents in many overseas areas, that service shall
                              be supplied within sound financial management practices.

                         (iii) Command policy and applicable limits, based on the dictates of the local
                               economy and cost-of-living, shall be published in writing. Deviations from
                               established command maximum limits shall be published by the
                               supporting DO, in writing, for each exception.

                         (iv) Checks shall be made payable in multiples of $5 unless local conditions
                              make that increment impractical. U.S. Treasury checks or checks issued
                              by insurance companies, banks or credit unions, or other institutions of
                              similar financial standing may be cashed without regard to dollar amount.

                         (v) All checks shall be drawn on U.S. financial institutions, overseas
                             branches of U.S. banks or credit unions, or overseas military banking
                             facilities operated under U.S. Government contract shall be payable
                             through U.S. banks or credit unions and shall be denominated and
                             payable in U.S. currency. The DO shall establish the days and hours
                             during which the service will be offered and shall make appropriate public
                             notification of any changes.

NOTE:   Show Slide #31 – Transactions of the Agent – Foreign Currency Exchange.

        Distribute Handout #6 - Standing Operating Procedure for Foreign Currency Operations. This is an
        example of an SOP that might be established in an AO.

                   v     Foreign Currency Exchange. In deployed environments, FM units normally
                         conduct conversion and reconversion transactions with and between U.S. and
                         foreign currency. Conversions are transactions that change U.S. dollars into a
                         foreign currency at a stated exchange rate. Reconversions are transactions
                         that change a foreign currency into U.S. dollars at a stated exchange rate. All
                         paying agents, cashiers, and Cash Control Officers (CCOs) must read,
                         understand, and possess a file copy of any applicable finance disbursing and
                         cashier policy messages for their theater of operations.

           (12) Commander’s Emergency Response Program (CERP) Support

               (a) The CERP program is designed to enable Brigade level commanders in Iraq and
                   Afghanistan to respond to urgent humanitarian relief and reconstruction
                   requirements within their areas of responsibility by carrying out programs that will
                   immediately assist the indigeous population. CERP funds may be used to projects
                   in areas such as water and sanitation, food production and distribution, agriculture,


                                                 31
                   electricity, rule of law and governance, repair of civic and cultural facilities,
                   condolence payments, and other urgent humanitarian or reconstruction projects.

               (b) CERP paying agents will use the SF44 for all payments. Payments for each project
                   may be made lump sum or through multiple partial payments. The finance officer
                   should only fund the paying agent money for immediate disbursement. Total
                   funding for each CERP project will not exceed the approved purchase request and
                   commitment (PR&C) unless amended by the contracting officer.

               (c) Once a payment is made by the agent and validated by the ordering officer, a
                   certifying official must sign a clearance memorandum stating the agent made the
                   payment IAW all CERP provisions and regulations. The first officer of Colonel rank
                   or higher in the CERP agent’s chain of command acts as the certifying official. In
                   turn, CERP paying agents do not clear payments with contracting.

               (d) CERP paying agents clear their accountability with finance and update their project
                   status with the comptroller. CERP agents must have a clearance memorandum for
                   each individual project paid, all related SF44’s, receiving reports (DD 250)
                   corresponding to each SF44, and contractor invoices requesting each payment to
                   clear Finance. All documents must be original.

               (e) CERP paying agents use the SF44 for all payments. Payments for each project
                   may be made lump sum or partially. The finance officer should only fund an agent
                   money to be immediately disbursed. Total funding for each CERP project will not
                   exceed the approved purchase request and commitment (PR&C) unless amended
                   by the contracting officer.

               (f) CERP paying agents may not co-mingle CERP funds with private, non-
                   appropriated, or any other type of funds. Appropriated CERP paying agents may
                   not handle non-appropriated CERP funds such as the Interim Iraqi Government
                   Fund (and vise versa).

NOTE:   Show Slide #28 – Transactions of the Agent
                                                                                                         Formatted: Bullets and Numbering
               (d)Agent Transactions

                   iPaying agents providing individual payment support, generally provide that support
                         in three general categories: U.S. Treasury checks, negotiable instruments
                         and vouchers, and currency exchange.

NOTE:   Show Slide #29 – Transactions of the Agent – U.S. Treasury Checks
                                                                                                         Formatted: Bullets and Numbering
                   iiA U.S. Treasury check is nothing more that a check issued by the U.S. Treasury.
                         The payee must present proper identification to the paying agent. Payment
                         can be made in U.S. dollars or local currency depending on the financial
                         policies established for the AO.

NOTE:   Show Slide #30 – Transactions of the Agent – Negotiable Instruments.
                                                                                                         Formatted: Bullets and Numbering
                   iiiNegotiable instruments can include any of those listed below.

                        (i)Personal checks

                        (ii)Postal money orders




                                                  32
                        (iii)Traveler’s checks

                        (iv)Payment of a travel voucher

                        (v)Casual Payment (made on a DD Form 1351-6)

NOTE:   The information below regarding cashing personal checks is based on DoDFMR, paragraph
        040201C.

        Distribute Student Handout # 5 - Standing Operating Procedure for Cashing Personal Checks. This
        is an example of an SOP that might be established in an AO.
                                                                                                           Formatted: Bullets and Numbering
                   ivCommanders shall establish maximum amounts for personal checks that may be
                        cashed by authorized personnel and/or their agents.

                        (i)In overseas areas in which the personnel of two or more Military Services
                             are operating, the senior commander shall ensure a uniform policy.

                        (ii)Although check-cashing privileges are required for authorized personnel
                             and/or their authorized agents in many overseas areas, that service shall
                             be supplied within sound financial management practices.

                        (iii)Command policy and applicable limits, based on the dictates of the local
                              economy and cost-of-living, shall be published in writing. Deviations from
                              established command maximum limits shall be published by the
                              supporting DO, in writing, for each exception.

                        (iv)Checks shall be made payable in multiples of $5 unless local conditions
                             make that increment impractical. U.S. Treasury checks or checks issued
                             by insurance companies, banks or credit unions, or other institutions of
                             similar financial standing may be cashed without regard to dollar amount.


                        (v)All checks shall be drawn on U.S. financial institutions, overseas branches
                            of U.S. banks or credit unions, or overseas military banking facilities
                            operated under U.S. Government contract shall be payable through U.S.
                            banks or credit unions and shall be denominated and payable in U.S.
                            currency. The DO shall establish the days and hours during which the
                            service will be offered and shall make appropriate public notification of
                            any changes.

NOTE:   Show Slide #31 – Transactions of the Agent – Foreign Currency Exchange.

        Distribute Handout #6 - Standing Operating Procedure for Foreign Currency Operations. This is an
        example of an SOP that might be established in an AO.
                                                                                                           Formatted: Bullets and Numbering
                   vForeign Currency Exchange. In deployed environments, FM units normally
                        conduct conversion and reconversion transactions with and between U.S. and
                        foreign currency. Conversions are transactions that change U.S. dollars into a
                        foreign currency at a stated exchange rate. Reconversions are transactions
                        that change a foreign currency into U.S. dollars at a stated exchange rate. All
                        paying agents, cashiers, and Cash Control Officers (CCOs) must read,
                        understand, and possess a file copy of any applicable finance disbursing and
                        cashier policy messages for their theater of operations.




                                                 33
C.      ENABLING LEARNING OBJECTIVE

         ACTION:            Identify the major duty positions of the Cash Branch

         CONDITIONS:        In a classroom environment, given an interim module examination
                            without notes.

         STANDARDS:         Correctly answer 70% of questions asked in an end-of-course ?
                            examination in accordance with instructional material presented.

1.      Learning Step / Activity 1.The Major Duty Positions of the Cash Branch
               Method of Instruction:    DiscussionConference
         Instructor to Student Ratio:    1:1921
                 Time of Instruction:    15 mins
                              Media:     Slides



NOTE:   Show Slide #32 – Organization of the FMCOM. Students should have seen this slide before. Focus
        on the cash management branch, its responsibilities and its staffing.

        (Note: FINCOMs/FMCOMs will be replaced by Financial Management Centers)

        a. Cash Management Branch at the FMCOM.

            (1) Currency (U.S. and foreign) funding responsibility rests with the cash management
                branch located with the FMCOM. As previously stated the FMCOM commander is
                responsible for the operational or strategic tasks that support the theater or ASCC.

            (2) The cash management branch coordinates HN and military banking facilities to provide
                currency to the FM BNs and other Services or allied forces in accordance with
                intraservice and intergovernmental agreements.

            (3) The chief of the cash management branch is the Treasury account holder for the
                funding account and has its own unique DSSN. The branch chief of the funding branch
                coordinates the establishment of any local depository accounts in the theater. The
                funding branch may be designated to provide currency to all components of a joint
                and/or multinational force.

            (4) At the FMCOM level, staffing of the cash management branch is as follows: (note:
                review redesign slides for updated staffing requirements)

                            Rank                   Title                   MOS

                            03          Funding Officer             44A00
                            E7          Disbursing Manager          44C40
                            E6          Senior Disbursing Analyst   44C30
                            E5          Disbursing Analyst          44C20
                            E4          Disbursing Technician       44C10
                            E3          Disbursing Clerk            44C10




                                                    34
NOTE:   Show Slide #33 – Organization of the FM BN. Students should have seen this slide before. Focus
        on the disbursing section and its responsibilities and staffing.

        b. At the Division level, supported by the FM BN, there is no cash management branch or
           function. As previously discussed, the FM BN has a modular, tailorable design, deploying
           only those elements needed to support the deployed force.

           (1) The FMCOM, through its cash management branch, provides the FM BN with the cash
               it needs to sustain area operations. The FM BN provides sustainment for contracting
               operations (commercial vendor and contractor payments) and individual payment
               support. Both functions are done through a paying agent.

           (2) The disbursing section:

               (a) Makes payments on properly prepared and certified vouchers

               (b) Receives collections

               (c) Receives and controls all currencies

               (d) Maintains accountable records

               (e) Cashes negotiable instruments

               (f) Makes foreign currency conversions

               (g) Determines the need for currency and its replenishment

           (3) The disbursing section also provides funding for assigned FM DETs. The FM DET
               disbursing section, when co-located with the FM BN, may augment the FM BN
               disbursing section.

           (4) At the FM BN level, staffing of the disbursing section is as follows:

                            Rank                 Title                     MOS

                           02        Disbursing Officer              44A00
                           E7        Disbursing Manager              44C40
                           E4        Disbursing Technician           44C10




                                                  35
D.      ENABLING LEARNING OBJECTIVE

         ACTION:           Discuss the requirements to safeguard assets.

         CONDITIONS:       In a classroom environment, given an interim module examination
                           without notes.

         STANDARDS:        Correctly answer 70% of questions asked in an end-of-course
                           examination in accordance with instructional material presented.

1.      Learning Step / Activity 1.Requirements to Safeguard Assets
               Method of Instruction:   DiscussionConference
         Instructor to Student Ratio:   1:1921
                 Time of Instruction:   30 mins
                              Media:    Slides

        a. General.

NOTE:   Show Slide #34 – Disbursing Officer

           (1) The safeguarding of assets is the responsibility of everyone, from the Army Chief of
               Staff to the infantry private. The primary responsibility of the finance office is to ensure
               the safety and accountability of public records.

           (2) This is particularly important within the financial management community because cash
               and negotiable instruments are involved. Safeguarding assets is also important
               because funds (taxpayer’s dollars) are budgeted for and expended on the purchase of
               assets.

           (3) This discussion will focus on the responsibilities of commanders and disbursing officers
               for the safeguarding of public funds and the related instruments and documents. The
               basic reference for this discussion is the DoDFMR, Volume 5, Chapter 3 – Keeping and
               Safeguarding Public Funds.

        b. Safeguarding public assets.

           (1) The finance/disbursing officer should hold the number of deputy, agent, cashier and
               other custodian positions that require the storing of public funds to a minimum.

           (2) A safe IAW the DoDFMR, Volume 5 regulations will be used to safeguard items in the
               following priority.

               (a) Currency

               (b) Undelivered checks and bonds

               (c) Negotiable instruments public bonds

               (d) Signature plates

               (e) Safekeeping of valuables

               (f) Other records



                                                   36
     (3) A command security program should be written to take into account the maximum
         amount of each of these items that would normally be on hand at any given time.
         Public funds and documents shall not be stored in the same containers as classified
         material and documents.

c.   Command responsibilities. Commanders must ensure the following:

     (1) That every individual entrusted with public funds is provided a vault, safe or other
         adequate secure facility (strong box) for exclusive use and accessible only to that
         individual. If separate safes cannot be provided, separate locked containers
         (compartments) in one safe must be provided. In order to fix accountability, control
         over a discreet amount of public funds shall not be entrusted to two or more individuals.
         Public funds shall never be merged with any other funds.

     (2) Develop a security program and promulgate that program in the form of a command
         directive or instruction.

     (3) Ensure that personnel protection is included in the overall disbursing security program.
         The program shall include requirements for periodic review of the adequacy of the
         security measures being used and for testing security equipment for proper operation
         on a semiannual basis.

     (4) Ensure that armed guards are made available for escort of government funds to and
         from the finance office when funds are being transported.

     (5) Provide fire protection of government facilities and funds.

d. Finance/Disbursing Officer responsibilities.

     (1) The finance officer is responsible for properly safeguarding all government funds with
         which he is entrusted and is pecuniary liable for the loss of any of those funds. When
         finance officers, deputies, agents, cashiers, and/or other fund custodians have custody
         of government funds, each shall be provided a separate secure container as was
         previously discussed.

     (2) While any of the assigned or appointed persons mentioned above are also held liable
         for any losses of funds entrusted to them, the finance officer continues to hold overall
         responsibility and will be jointly (and sometimes singularly) liable for any losses they
         incur.

     (3) At least semi-annually, the finance officer is required to make a personal inspection
         (and make a record of that inspection) of security measures to ensure the following.

         (a) Vaults and safes are not accessible to unauthorized persons.

         (b) Cash in excess of amounts authorized is promptly deposited.

         (c) Windows and doors are limited and barred and/or locked at all times after normal
             business hours.

         (d) Access to the working area is limited and conspicuously marked “AUTHORIZED
             PERSONNEL ONLY.” Transactions should be conducted from an enclosed and
             secured room.




                                            37
       (e) Internal office procedures are established to provide adequate controls on all
           undelivered and returned checks.

       (f) The commander is advised of any security shortfalls or breaches.

       (g) The servicing DFAS Center is informed of any request for adequate safeguarding
           facilities that have been denied.

       (h) Written and oral instructions have been provided to all deputies, agents, cashiers,
           and custodians regarding the proper care and handling of cash and other
           negotiable instruments.

       (i) All cash, blank Treasury checks, blank U.S. savings bonds, blank depositary
           checks, and related items are kept in a vault, safe, or approved security container.
                                                                                                         Formatted: Bullets and Numbering
       (j)All security containers aboard ships and ashore are either on rollers or weigh less
            than 750 pounds, are stored in a vault, and are secured in such a way as to prevent
            movement.

       (k)(j) If the vault, safe, or container is visible to the exterior of the office where security
            patrols pass, the container must be illuminated. This is mandatory in all cases
            aboard ships.delete

       (l)(k) The combinations on all vaults, safes, and secured containers are changed every
            6 months and upon change of accountable officers. A record of the new
            combination will be placed in a sealed envelope, signed by the accountable officer,
            and placed in the finance officer’s safe. When the combination is changed to the
            finance officers safe or vault, the same procedure will be followed, except that the
            record of the new combination will be delivered to the commander, security officer,
            or other designated individual for retention.

       (m)(l) A record of all combination changes is kept inside each vault, safe, or container.

       (n)(m) The name and phone number of the accountable officer is posted on the inside of
           the secured container.

       (o)(n) Keys to the workspace must be strictly controlled. A detailed record will be
           maintained of who has keys, when they were issued, and when they were returned.

       (p)(o) All security equipment and systems must be tested every 6 months to ensure
           they are working properly.

e. Intrusion Detection Systems.

   (1) Intrusion detection systems are vital components of the overall security program and
       are designed to provide in-depth protection for a resource or other important area. First
       consideration will be given to components of the DoD Joint-Services Interior Intrusion
       Detection System (J-SIIDS) and in special cases components of the Base and
       Installation Security System (BISS) can be used.

   (2) Alarm protection should also be considered for use to deter entry to the general
       disbursing area or to the actual storage container. There are three levels of alarm
       protection: penetration, motion and point protection. Best results are achieved with
       using a combination of two levels of alarm. Also ensure that the existence of alarms is




                                           38
                   well publicized, with conspicuous warnings, to gain full benefit of psychological
                   deterrence.

               (3) Installations and commands should test the alarms on a regular basis to ensure that
                   they are operating properly.

        f.     Storage Container Requirements.

               (1) Minimum storage container requirements are published in DoDFMR, Volume 5, Chapter
                   3. Installation security programs should provide for compliance with these minimum
                   standards.

               (2) Under $7,500. The commander shall establish fund container requirements. Any of the
                   security containers or burglary resistant safes listed under paragraph 030304 of
                   DoDFMR, Volume 5, Chapter 3 may be used.

               (3) Between $7,500 - $50,000. Security containers with a Class 1 or Class 5 rating or
                   burglary resistant safe having a special Underwriters’ Laboratories classification should
                   be used.

               (4) Over $50,000. A burglary resistant safe or vault carrying at least an Underwriters’
                   Laboratories classification of Tool-Resistant Safe, TL-30, and having a Group 1R
                   combination lock, will be used.



2.      Learning Step / Activity 2. Accountability of Cash Assets
                   Method of Instruction:   DiscussionConference
             Instructor to Student Ratio:   1:1921
                     Time of Instruction:   30 mins
                                  Media:    Slides

        a. All DOs are considered to be agents of the Treasury Department. Each DO is accountable
           to the Treasury Department for the cash items (including receivables) in his or her
           possession.

        b. Finance/Disbursing Officers (or account holders) use several forms to ensure accountability
           of cash assets. The use of these forms is prescribed in significant detail in DoDFMR,
           Volume 5, Chapter 19. These include:

               (1) DD Form 1081, Statement of Agent Officer’s Account

               (2) DD Form 2657, Daily Statement of Accountability

               (3) DD Form 2665, Daily Agent Accountability Summary

               (4) SF 1219, Statement of Accountability

        c.     Advancing Funds to Agents.

NOTE:        Show Slide # 35 – DD Form 1081, Statement of Agent Officer’s Account




                                                     39
             (1) Finance officers entrust (advance) funds to deputies, agents, and cashiers on a DD
                 Form 1081- Statement of Agent Officer’s Account. The amount of funds advanced shall
                 not exceed the cash holding authority of the deputies, agents, and cashiers.

             (2) A DD Form 1081 is a summary of cash transactions and receipt for cash and vouchers
                 on hand each time turn-in or settlement of the account occurs. The DD Form 1081
                 summarizes cash transactions for the period of duty covered by the turn-in.

             (3) The DO or primary deputy shall verify the DD Form 1081 when the account is settled,
                 sign the original and copy of the form, retain the original and supporting documents to
                 support the DD Form 2665 (Daily Agent Accountability Summary), and return the
                 signed copy to the deputy, agent or cashier.

             (4) The verification at turn-in or settlement includes an actual cash count by the DO or
                 his/her primary deputy. The cashier shall retain the signed copy as a record of the
                 opening cash balance for the next period of duty or for record purposes if the account is
                 balanced to zero

NOTE:   Show Slide #36 – DD Form 2657, Daily Statement of Accountability

        d. DD Form 2657 (Daily Statement of Accountability)

             (1) This form is maintained by the DO and is a daily record of all disbursements and
                 collections made during the day by the DO and all deputies, agents and cashiers.

             (2) The DD Form 2657 is to one day what the SF 1219 is to one month. The DD Form
                 2657 summarizes the amounts the Treasury Department would look to recover from the
                 DO if the DO ceased operations on that day.

             (3) The DD Form 2657 is a subsidiary accountability document to the SF 1219 (Statement
                 of Accountability)

             (4) The DO signs this form at the end of each day as an official document of accountability.

NOTE:   Show Slide #37 – DD Form 2665, Daily Agent Accountability Summary

        e. DD Form 2665 (Daily Agent Accountability Summary)

             (1) All deputies, agents and cashiers maintain this form as the official daily record of
                 accountability.

             (2) Each deputy, agent, and cashier shall prepare a DD Form 2665 for each day during
                 which they transact business. The DD Form 2665 summarizes transactions for each
                 business day.

             (3) In order for the DD Form 2665 to depict a continuous picture of the transactions
                 affecting the accountability of a deputy, agent, or cashier, the first DD Form 2665
                 prepared after receipt of an advance from the DO (or other principal authorized to
                 provide advances) shall show the advance, and the last DD Form 2665 prepared up to
                 the time of turn-in (submission of financial reports to the DO or other principal) shall
                 show the turn-in.

NOTE:   Show Slide #38 – SF 1219, Statement of Accountability

        f.   SF 1219 (Statement of Accountability)



                                                    40
(1) All The SF 1219, Statement of Accountability is the DO’s official monthly recording and
    reporting of this accountability.

(2) The DO’s daily accountability is maintained on DD Form 2657, Daily Statement of
    Accountability.

(3) The DO consolidates all DD Form 2657s onto a single SF 1219 on the last business
    day of each month.

(4) The SF 1219, signed by the DO, is then forwarded directly to the Treasury Department,
    as a record of accountability on the last business day.




                                     41
E.      ENABLING LEARNING OBJECTIVE

         ACTION:               Explain the purpose of key forms used for daily and monthly
                               accountability of Disbursing Officer funds in deployed areas and
                               for currency conversion.

         CONDITIONS:           In a classroom environment, given an interim module examination
                               without notes.

         STANDARDS:            Correctly answer 70% of questions asked in an end-of-course
                               examination in accordance with instructional material presented.

1.      Learning Step / Activity 1. Agent Procedures
                   Method of Instruction:   DiscussionConference
             Instructor to Student Ratio:   1:1921
                     Time of Instruction:   30 mins
                                  Media:    Slides
NOTE:             This activity begins with a discussion of agent procedures, primarily paying agents, as
                  they are the ones that will make the commercial payment, individual payments and
                  provide much of the direct pay support. The forms they are required to keep become
                  feeder forms used by the finance officer to prepare his daily and monthly statements of
                  accountability.

        a. Officers, enlisted members, or civilian employees (satisfactory to the appointing officer) may
           be appointed to the position of:

               (1) Disbursing agent

               (2) Cashier

               (3) Paying agent

               (4) Change fund custodian

               (5) Imprest fund cashier

NOTE:   Show Slide #39 – The Appointment Letter

        b. As previously mentioned, the appropriate approving official must appoint disbursing agents,
           cashiers, or paying agents in writing. In all cases the letter of appointment must include all
           of the following information.

               (1) Specific duties, limitations, and effective dates of appointment

               (2) Duration of the appointment and, if applicable, the name of the individual being relieved.

        c.     The individual appointed must acknowledge and accept the appointment in writing.

               (1) This is required because the letter of appointment must include the statement “I agree
                   to hold myself accountable to the United States for all public funds received.”

               (2) Also, the appointment letter must include a statement that the individual has been
                   counseled as to the pecuniary liability and has been given written operating instructions.


                                                      42
           (3) The appointing officer may revoke agent appointments at any time.

        d. Required Agent Folders.

           (1) The finance officer must establish a separate file for each agent and the files must be
               kept in a locked drawer or in a location where unauthorized individuals may not have
               access to the files.

           (2) The following documents should be maintained in agent files:

               (a) A copy of the signed letter of appointment

               (b) A copy of the signed letters of instruction

               (c) Copies of signed DD Form 1081 for advances and turn-ins. These should be kept
                   sequentially with the most current form on top.

               (d) The agent’s DD Form 2667 to record losses and overages of funds.

NOTE:   Show Slide #40 – The Paying Agent

        e. The Paying Agent.

           (1) Supported unit commanders, in conjunction with FM commanders, appoint paying
               agents to perform specific duties.

           (2) FM units train and brief paying agents on required procedures. The FM unit requires
               paying agents to sign a letter of understanding prior to being funded. Commissioned
               officers, warrant officers, enlisted members, or civilian employees satisfactory to the
               appointing officer may be appointed as paying agents. Paying agents are appointed to
               perform specific duties: they can either support the local procurement process or
               provide support to individuals—they cannot perform both duties.

           (3) A paying agent may be appointed only when adequate payment, currency conversion,
               or check cashing service cannot be provided otherwise.

           (4) Paying agents should not be appointed solely as a convenience when it is feasible for
               the transactions to be made by the finance officer, a disbursing agent or a cashier.

           (5) Paying agents should never be appointed or used over the objection of the finance
               officer. Paying agents will not act as purchasing or ordering officers.

           (6) Funds entrusted to authorized paying agents for the purpose of making specific
               payments, currency conversions, or check-cashing transactions shall be documented
               on a DD Form 1081.

           (7) The amount of the advance shall not exceed the amount required for the specific
               payments, check cashing, or currency conversions to be made by the paying agent.

NOTE:   Distribute Handout #1 Paying Agent Instructions Students will already have from prage 26. Change
        to Refer to Handout #1

           (8) The finance officer shall furnish written instructions to the paying agent to ensure that all
               pertinent disbursing procedures are properly observed by the paying agent, including
               requirements for the:



                                                  43
         (a) Safeguarding of funds

         (b) Identification of payees

         (c) Signature of payees

         (d) Required vouchers

         (e) Documents and certifications

         (f) Return of funds and vouchers.

     (9) Funds advanced to paying agents shall neither be commingled with any other funds nor
         advanced to any other person.

     (10)Normally, the paying agent shall not retain advanced funds overnight. This may not be
         feasible during contingency operations such as OIF and OEF. In such cases paying
         agents may retain the necessary funds to successfully conduct agent operations.

     (11)Promptly upon completion of authorized payments, the paid vouchers, negotiable
         instruments, and any balance of funds shall be returned to the finance office with a
         properly completed DD Form 1081.

     (12)When circumstances require retention of funds overnight by the paying agent, the DO
         will be notified immediately and the paying agent will ensure that all funds are
         safeguarded IAW instructions provided by the paying agent and the DoDFMR. Paid
         vouchers, negotiable instruments, and balance of funds shall be returned as soon as
         possible after completion of the authorized payment.

     (13)The finance officer shall notify his/her commander (generally the FM BN) and the
         commander of the paying agent if the paying agent fails to make prompt return of paid
         vouchers, negotiable instruments, and funds or if loss of funds or vouchers occurs.

f.   Change fund custodian.

     (1) The request for the establishment of a change fund custodian is generated through
         mission necessity and approved by the commander.

     (2) A change fund custodian receives the change fund from the finance officer to make
         change in conjunction with sales transactions and, in some cases, for providing
         accommodations cash in exchange for a check made for more than the purchase
         amount.

     (3) The change fund custodian is responsible for safeguarding the funds provided and may
         be held pecuniary liable for any loss of funds.

     (4) Change funds custodians cannot be contract employees. Only DoD civilian and military
         personnel may be issued a change fund. Change fund custodians may not advance
         funds to others and may not be alternates. Each person who will handle funds must be
         appointed as a change fund custodian and must secure their funds separately.

     (5) Funds are advanced and the fund is liquidated using DD Form 1081. Reimbursement
         of the fund is completed using an OF 1129 (Cashier Reimbursement Voucher and/or
         Accountability Report).




                                            44
           (6) The fund balance shall remain constant at all times. The total amount of the fund will
               always equal cash and/or paid vouchers.
                                                                                                               Formatted: Font color: Plum
        g. Imprest fund cashiers. There are no longer Imprest funds permitted. See Gov’t Purchase
           Card lesson.                                                                                        Formatted: Font color: Plum

           (1) A finance serving the base, camp, post, station, installation, activity or ship is authorized
               to advance official funds, not to exceed $10,000, to establish an imprest fund.

           (2) When the imprest fund is initially established, the finance officer will make the advance
               of funds only after receiving a copy of the authorization to establish the fund from the
               commander or designee.

           (3) When the commander or designee authorizes an increase in the amount of an existing
               imprest fund, the finance officer shall make the additional advance in order to bring the
               amount of the fund up to the new level, only after receiving a copy of the authorization
               to increase the amount of the fund. In no case may the increase exceed $10,000.

           (4) Funds are advanced and the fund is liquidated using DD Form 1081. Reimbursement
               of the fund is completed using an OF 1129 (Cashier Reimbursement Voucher and/or
               Accountability Report).

           (5) The fund balance shall remain constant at all times. The total amount of the fund will
               always equal cash and/or paid vouchers.



2.      Activity 2.Managing Agent’s Funds with DD Form 1081
                Method of Instruction: DiscussionConference
         Instructor to Student Ratio: 1:1921
                   Time of Instruction: 30 mins
                                Media: Slides

NOTE:   Show Slide #41 – DD Form 1081

        a. Introduction.

           (1) The DD Form 1081, Statement of Agent Officer’s Account, is used to transfer funds to
               agent officers, deputies, and cashiers. It is also used when the agent returns funds to
               the disbursing officer. It is a two-way document that records the movement of funds.
               An audit trail is created and accountability is maintained through use of the DD 1081.

           (2) The finance officer initiates the DD 1081 when funds are advanced to an agent officer.
               When funds are advanced, the vault user is transferring accountability to the designated
               agent officer. To complete the transfer, the receiving agent officer must accept and
               sign for the exact amount of the transfer. The DD 1081 substantiates that transfer of
               accountability.

           (3) The agent officer will initiate the DD 1081 (Return) when funds and/or vouchers are
               turned in to the vault user. This occurs prior to closing out for the day and before
               preparing the DD Form 2665. A DD 1081 is prepared each time a turn-in or settlement
               of the account occurs. When the agent officer returns funds to the vault user, the
               advance transaction process is reversed and the agent is relieved of accountability
               upon the completion of the return transfer.




                                                  45
           (4) In order to complete the return process, the receiving vault user must approve/verify
               what the transferring agent has entered in DDS for return. Again, the DD 1081
               substantiates the transfer of accountability. In addition, the monies involved can be
               verified because DDS captures each transaction and retains the data during the either
               the advance or return process.

           (5) The DD Form 1081, Statement of Agent Officer’s Account, is prepared as a summary of
               cash transactions and receipt for cash, vouchers, and other negotiable instruments on
               hand between DOs and their agent officers (deputies, agents, cashiers, paying agents,
               and collection agents). In daily disbursing operation, it is used when advances and
               returns of funds occur between:

               (a) the DO and agents within the main site

               (b) the DO at the main site and vault users at remote sites

               (c) the DO at the main site and agents at remote sites

               (d) the remote vault user and agents within the same remote site and/or agents of that
                   remote’s remote site.

        b. A Review of the DD Form 1081

NOTE:   Distribute Handout #2 – DD Form 1081, Statement of Agent Officer’s Account.

           (1) Let’s take a look at the DD Form 1081.

           (2) In our example, a DD Form 1081 is being issued from the Finance Officer, LTC Walter
               T. Corey to the paying agent 1LT Stephen A. Lang.

NOTE:   Show Slide #42 – DD Form 1081 (Detail 1 of 9)

               (a) As shown, the left side of the DD Form is completed with the disbursing officers
                   name, address and disbursing station symbol number.

NOTE:   Show Slide #43 – DD Form 1081 (Detail 2 of 9)

               (b) The right side of the DD Form 1081 is completed with the paying agent’s name,
                   grade, Social Security Number (SSAN), unit address and telephone number (if
                   applicable).

NOTE:   Show Slide #44 – DD Form 1081 (Detail 3 of 9)

               (c) The beginning balance of the DD Form 1081 shows a $0.00 beginning balance.

NOTE:   Show Slide #45 – DD Form 1081 (Detail 4 of 9)

               (d) When funds are issued to a paying agent, his accountability is increased; therefore
                   the left side of the DD Form 1081 is completed. In this example, the agent is being
                   advanced (and the Increase column used) $5,000.00 U.S. dollars and $7,142.86 in
                   foreign currency. Line 12 then shows in the Beginning Balance column a total
                   advance to agents of $12,142.86. This amount can never exceed the amount
                   authorized in the paying agent’s appointment order/letter.




                                                46
NOTE:   Show Slide #46 – DD Form 1081 (Detail 5 of 9)

                (e) The ending balance column, the ending balance in the agent officer’s account,
                    reflects $12,142.86.

NOTE:   Show Slide #47 – DD Form 1081 (Detail 6 of 9)

                (f) On advance, the DD Form 1081 is signed by:

                    i      The finance officer. The finance officer certifies that he has entrusted the
                           funds of other items as indicated on the DD Form 1081 to the named paying
                           agent.

NOTE:   Show Slide #48 – DD Form 1081 (Detail 7 of 9)

                    ii     The paying agent. The paying agent certifies that he has received the
                           entrusted funds and other items as indicated on the DD Form 1081 from the
                           named finance officer. His statement also states that he assumes pecuniary
                           liability for the funds, that he will immediately notify the finance officer of any
                           loss and that he understands the written and oral instructions received as an
                           agent officer.

NOTE:   Show Slide #49 – DD Form 1081 (Detail 8 of 9) Add in another slide,then all slide numbers will have
        to be adjusted

                (g) On return, the DD Form 1081 is completed in the decrease column, showing the
                    amount of U.S. dollars and foreign currency being returned and the amount of
                    various paid vouchers and/or checks cashed. When all funds are turned in the
                    paying agent will receive another copy of the DD Form 1081 showing the amount in
                    Line 12 (Ending Balance) as $0.00

NOTE:   Show Slide #50 – DD Form 1081 (Detail 9 of 9)

                (h) On return, the finance officer (acknowledging that funds as indicated have been
                    returned) and the paying agent (stating that the account is correct) will both check
                    the appropriate On Return blocks and sign the DD Form 1081 a second time.




3.      Learning Step / Activity 3. Daily Accountability
                Method of Instruction:    DiscussionConference
          Instructor to Student Ratio:    1:1921
                  Time of Instruction:    30 mins
                               Media:     Slides

        a. Introduction.

            (1) Finance officers (FOs) are entrusted with government assets in normal day-to-day
                operations.

                (a) Whether they are responsible for property, equipment, or funds, they must maintain
                    accountability for those assets. The FO is accountable to the American public as a




                                                     47
                     government employee to take care of and maintain any assets entrusted into
                     his/her care.
                 (b) The largest responsibility of the FO, is maintaining accountability of governmental
                     funds on a daily and monthly basis. As such, the FO must balance his cash and
                     negotiable instrument holdings every day.

NOTE:   Show Slide #51 – DD Form 2657,Statement of Accountability

        Distribute handout #3 – Daily Statement of Accountability.

        b. Daily accountability is accomplished using DD Form 2657 – Daily Statement of
           Accountability. Before we begin discussing the DD Form 2657 it is important that you gain
           an understanding of the form and how it is used in the day to day cash management
           operations.

NOTE:   Show Slide #52 – DD Form 2657 – Concepts

             (1) The Disbursing Officer (DO) or Deputy Disbursing Officer (Deputy DO) summarizes
                 daily changes in accountability for the account holder using the DD Form 2657. A
                 separate DD Form 2657 must be prepared for each day business is transacted.

             (2) This form summarizes the amounts that the U. S. Treasury would look to recover if the
                 DO ceased operations on that day.

             (3) The amounts on the DD Form 2657 are at a summary level only. The form summarizes
                 all disbursements and collections made during the business day by the DO and all
                 deputies, agents, and cashiers. The detailed information to back-up the DD Form 2657
                 are found in such items as the DD Form 2665, deposit tickets, debit vouchers, and
                 check register.

             (4) The DD Form 2657 must be signed by the DO or the Deputy DO daily as an official
                 attestation of accountability to the Treasury. The form must be prepared in original only
                 and shall be typed or printed in indelible ink.

             (5) The DD Form 2657 must be balanced daily. The Deputy DO will never begin the DD
                 Form 2657 for a new business day until the DD Form 2657 for the previous business
                 day is in balance.

             (6) A properly balanced DD Form 2657 ensures agreement between the DO’s cash
                 accountability to the Treasury and disbursement and collection transactions recorded in
                 the accounting system.

NOTE:   Show Slide #53 – DD Form 2657 - Section 1

        c.   Section I, Transactions Affecting Accountability.


             (1) This section computes the total DO accountability to the Treasury as of the end of each
                 business day.

             (2) The summary of all increases and decreases in accountability are recorded in this
                 section along with month-to-date totals.




                                                   48
             (3) The month-to-date totals are used to prepare the Statement of Accountability (SF 1219)
                 at the end of the reporting period.


             (4) Section I totals, except for line 1.0, start with a zero balance at the beginning of each
                 new accounting period and every time there is a change in DOs prior to the end of an
                 accounting period.


NOTE:   Show Slide #54 – DD Form 2657 - Section II and Section III

        d. Section II, Distribution of Accountability - Incumbent DO and Section III, Distribution of
           Accountability - Predecessor DOs.

             (1) These sections summarize the elements that make up the DOs total accountability.

             (2) Section II focuses on the current DOs accountability while Section III summarizes the
                 accountability for past DOs that the current DO is maintaining under his/her
                 accountability.

             (3) The totals for Sections II and III are cumulative from month-to-month.

NOTE:   Show Slide #55 – DD Form 2657 - Section IV

        e. Section IV, Distribution of Accountability - Combined.

             (1) Section IV is the total of Sections II and III. The total of Section IV must agree with the
                 total of Section I or the DD Form 2657 is out of balance.

             (2) The total for Section IV is cumulative from month-to-month.

NOTE:   Show Slide #56 – DD Form 2657 - Section V

        f.   Section V, Distribution of Cash on Hand.

             (1) Section V outlines the physical location of all U. S. and foreign cash on hand. This
                 includes funds in the hands of both on-site and off-site Deputy DOs, agents, and
                 cashiers.

             (2) This section does not include funds in designated depositories, undeposited collections,
                 funds with contractors, or cash in transit.



4.      Learning Step / Activity 4. Monthly Accountability
        Method of Instruction: Discussion     Conference
         Instructor to Student Ratio: 1:1921
                 Time of Instruction: 30 mins
                              Media: Slides



        a. General.



                                                    49
NOTE:   Show Slide #57 – SF 1219, The Statement of Accountability

             (1) The SF 1219 is the finance officer’s monthly financial statement. The finance officer
                 signs the report. This may be delegated to the DDO in the finance officer’s absence. If
                 this is the case, you do not sign for the finance officer/commander, you sign in your own
                 name. Although, you will not normally sign the SF 1219, you, as Chief of Disbursing
                 are identified on the document as the Point of Contact.

             (2) The daily reports that agents, cashiers prepare provide the basis for the SF 1219. If
                 kept up to date, the Daily Statement of Accountability (DD Form 2657) and other office
                 forms such as the check register, Journal Vouchers (OF 1017-G), Deposit Tickets (SF
                 215), Debit Vouchers (SF 5515), and the Month-End Check Issue Summary (SF 1179),
                 provide most of the information needed to prepare the Statement of Accountability, SF
                 1219.

        b. Submission of SF 1219 (Statement of Accountability)

NOTE:   Show Slide #58 – Overview of the Statement of Accountability

             (1) The SF 1219 is normally due to the Defense Finance and Accounting Service,
                 Indianapolis (DFAS-IN) no later than the 10th calendar day following the end of the
                 month being reported.

             (2) Each DSSN account holder will submit a SF 1219 each month for each separate
                 Disbursing Station Symbol Number (DSSN) assigned, whether or not any transactions
                 occurred during the month or if the DSSN has an accountable balance or not.

             (3) The reporting period for the SF 1219 will normally be the beginning through the end of
                 the calendar month. However, if an account holder is assigned the account on a day
                 other than the first of the month or relieved of the account on a day other than the last
                 day of the month, the reporting period will be shorter.

             (4) The account holder will submit a final SF 1219 when relieved of account holder duties
                 irrespective of when the last day of the accounting period falls. The final SF 1219 will
                 be marked as “FINAL” above the name line on the SF 1219.

             (5) There are two general rules to remember when preparing the SF 1219. They are:

                 (a) The SF 1219 must be prepared in indelible ink or typed.

                 (b) No erasures, strikeovers, or stray marks of any description are permitted on the SF
                     1219.

        c.   Overview of Completing the SF 1219 (Statement of Accountability)

NOTE:   Show Slide #59 – Statement of Accountability Administrative Data

             (1) Administrative Data. Administrative data is located in the top portion of the form.

                 (a) Name of Disbursing Officer. Enter the full name and rank or grade of the account
                     holder as it appears on official Finance documents in the Name of Disbursing
                     Officer block.




                                                    50
               (b) Location of Disbursing Officer. Enter the complete mailing address, including the
                   Unit Identification Code (UIC), name, and location of the office submitting the
                   report, in the Location of Disbursing Officer block.

               (c) Name of Agency. Enter the branch of the military (i.e., Army, Navy, Air Force,
                   Marine Corps) in the Name of Agency block. For our use, we will enter "Army" in
                   this block.

               (d) Period of Account. Enter the first and last days of the reporting period for which the
                   report is issued in the Period of Account block. This is usually the calendar month.
                   Do not abbreviate any portion of the date. Exceptions to the calendar month as the
                   reporting period will happen when an account holder is either relieved or
                   commences disbursing duties on a day other than the first or last day of the
                   calendar month.

               (e) Agency Location Code. Enter the four-digit code of the DSSN referred to in the
                   report in the agency location block.

           (2) Certification. The certification portion is located in the bottom portion of the front side of
               the Statement of Accountability.

               (a) Name and Telephone Number of Contact. Enter the name and DSN telephone
                   number of the point of contact. The point of contact should be someone in authority
                   in disbursing. DFAS will contact that person first when discrepancies arise.

               (b) Signature and Title of Certifier. The account holder must sign the signature block.
                   Enter the title of the certifier after the signature. The signature should be in the
                   same style as the account holder uses to sign all U. S. Treasury checks issued.

               (c) Date. Enter the submission date of the report in the Date block. As discussed
                   earlier, the report is due to DFAS-IN no later than the 10th calendar day of the
                   month following the reporting period.

NOTE:   Show Slide #60 – SF 1219 – Section I, Part A (1 of 2)

           (3) Preparation of Section I, Part A - Transactions During the Period Affecting
               Accountability. This section outlines the increases and decreases in the account
               holder’s accountability for the reporting period.

               (a) Line 1.00, Total Accountability Beginning of Period. Total Accountability Beginning
                   of Period is the beginning balance shown on the final Daily Statement of
                   Accountability (DD Form 2657) for the reporting period. This is found on line 1.00,
                   column d. This must be the same amount as the Accountability Close of Period,
                   line 5.00, of the SF 1219 for the previous reporting period. For a new account
                   holder relieving another account holder of his responsibility, this amount should
                   equal the previous account holder’s final SF 1219, line 11.0.

               (b) Line 2.0, Increases in Accountability. The Increases in Accountability section
                   outlines the increases in the account holder’s accountability for the reporting period.

               (c) Line 2.1, Checks Issued on U. S. Treasury. Enter the month-to-date column total of
                   lines 2.1A and 2.1B from the final DD Form 2657 for the reporting period. This
                   amount must agree with the total reported as the net total of checks issued on the
                   Month End Check Issue Summary (SF 1179). This total only includes checks




                                                   51
                   drawn on the U. S. Treasury and does not include checks drawn on a limited
                   depositary account.

                   i     Line 2.34, Discrepancies in the DO Accounts - Credits. Do not enter any
                         amount on line 2.34.

                   ii    Line 2.36, Payments by Another D.O. Do not enter any amount on line 2.36.

                   iii   Line 2.37, Transfers from Other DOs. Use the Transfers from Other DOs, line
                         2.37, to record transfers from other account holders. Also, line 2.37 is used to
                         record the final accountability of a deactivated DSSN that is being assumed
                         by the account holder. Enter the dollar amount from line 2.37 of the final DD
                         Form 2657 for the reporting period. The total on line 2.37 must agree with the
                         accountability figure shown on line 4.37 of the deactivated account holder’s
                         final SF 1219.

                   iv    Line 2.39. Line 2.39 is not normally used. However, an account holder
                         participating in the U. S. Treasury’s On-Line Payment and Collection System
                         (OPAC) may use this line for incoming OPAC payments and collections as
                         outlined in DoDFMR, Volume 5, paragraph 190503A6.

               (d) Line 2.9, Total Increases in Accountability. Line 2.9 is the sum total of lines 2.1
                   through 2.39. This total must agree with the month-to-date column total on line 2.9
                   of the final DD Form 2657 for the reporting period.

               (e) Line 3.0, Subtotal. Enter the total of line 1.00 and line 2.9 on line 3.0. This subtotal
                   reflects the beginning accountability plus all increases for the reporting period. This
                   total must agree with the month-to-date column total on line 3.0 of the final DD
                   Form 2657 for the reporting period.

NOTE:   Show Slide #61 – SF 1219 – Section I, Part A (2 of 2)

               (f) Line 4.0, Decreases in Accountability. The Decreases in Accountability section
                   outlines the decreases in the account holder’s accountability for the reporting
                   period.

                   i     Line 4.1, Net Disbursements. Enter the net disbursements for the reporting
                         period from column d, line 4.1 of the final DD Form 2657 on line 4.1, Net
                         Disbursements.

                   ii    Line 4.2, Deposits Presented or Mailed to Bank. The total of all deposits
                         presented or mailed to the bank for the reporting period is entered on line 4.2.
                         This total should agree with the combined month-to-date column totals from
                         lines 4.2A and 4.2B of the final DD Form 2657 for the reporting period.

                   iii   Line 4.34, Discrepancies in D.O. Accounts - Debits. Do not enter any amount
                         on line 4.34.

                   iv    Line 4.36, Payments for Another D.O. Do not enter any amount on line 4.36.

                   v     Line 4.37, Transfers to Other DOs. Use the Transfers to Other DOs, line
                         4.37, to record transfers to other account holders. Also, line 4.37 is used to
                         record the final accountability of a deactivated DSSN that is being assumed
                         by another account holder. Enter the dollar amount from line 4.37 of the final
                         DD Form 2657 for the reporting period.



                                                  52
                          (i) The total on line 4.37 must agree with the accountability figure shown on
                              line 2.37 of the gaining account holder’s SF 1219 for the same reporting
                              period.

                   vi     Line 4.39. Do not enter any amount on line 4.39.

                   vii    Line 4.9, Total Decreases in Accountability. Line 4.9 is the sum total of lines
                          4.1 through 4.39. This total must agree with the month-to-date column total
                          on line 2.9 of the final DD Form 2657 for the reporting period.

                   viii   Line 5.00, Total Accountability Close of Period. Subtract the amount on line
                          4.9 from the amount on line 3.0 and enter the result on line 5.00.

                          (i) This amount must agree with the month-to-date column total on line 5.0 of
                              the final DD Form 2657 for the reporting period.

           (4) Section I, Part B - Analysis of Incumbent Officer’s Accountability.

NOTE:   Show Slide #62 – SF 1219 – Section I, Part B (1 of 2)

               (a) Section I, Part B is an analysis of the incumbent officers’ accountability at the end of
                   the reporting period. This section is somewhat like a balance sheet for a
                   corporation.

               (b) Line 6.1, Cash on Deposit in Designated Depositary. If the account holder has a
                   local depositary account (LDA) then the amounts in those accounts are entered on
                   line 6.1. If there is only one LDA, show the name and location in the Name and
                   Location of Depositary area of line 6.1. If more than one LDA exists, attach a
                   schedule to the SF 1219 outlining the name, location, foreign currency unit, and U.
                   S. Dollar equivalent for each account. Enter “See Attached„ in the Name and
                   Location of Depositary area of line 6.1. The total dollar amount must agree with line
                   6.1 of the final DD Form 2657 for the reporting period.

               (c) Line 6.2, Cash on Hand. The Cash on Hand line is the total of all cash on hand at
                   the end of the reporting period, including U. S. currency and foreign currency.
                   Enter the combined month-to-date column totals of lines 6.2A and 6.2B from the
                   final DD Form 2657 for the reporting period on line 6.2. Show a parenthetical U. S.
                   dollar equivalent of foreign currencies on hand (from line 6.2B of the DD Form
                   2657) after the description on line 6.2. This amount does not include cash in the
                   hands of government agents, deputies, and cashiers. This amount is reported on
                   line 6.5

               (d) Line 6.3, Cash - Undeposited Collections. Enter the combined month-to-date
                   column totals of lines 6.3A and 6.3B from the final DD Form 2657 for the reporting
                   period on line 6.3. Include all undeposited cash and cash items on hand at the
                   close of the reporting period that are for deposit to the U. S. Treasury General
                   Account (TGA). Do not include deposits already mailed or presented for credit to
                   the TGA. The Department of the Army (DA) does not normally use line 6.3.

               (e) Line 6.4. The DO does not normally use line 6.4. However, account holders
                   authorized to allow cash to be held under custody account agreements in overseas
                   contract Military Banking Facilities (MBFs) or, cash to be held for contingency
                   requirements will enter the caption “Custody or Contingency Cash„ on line 6.4 and
                   enter the total.




                                                  53
               (f) Line 6.5, Cash in Hand of Government Cashiers. The amount of cash held by all
                   deputies, agents, cashiers, and any other funds held at locations other than the
                   main disbursing office is entered on line 6.5. Do not include any amounts held by
                   deputies, agents, and cashiers in the main disbursing office. Enter on line 6.5 the
                   column total from the month-to-date column of line 6.5 of the final DD Form 2657
                   for the reporting period. Also, enter in parentheses, in the space between the
                   caption and the amount column, the dollar equivalent of all foreign currencies
                   included in the amount entered on line 6.5.

               (g) Line 6.6. Line 6.6 is used to report advances to contractors for the reporting period.
                   If needed, enter the caption “Advances to Contractors„ in the description column
                   and the dollar amount from line 6.6 of the final DD Form 2657 for the reporting
                   period in the far right column.

               (h) Line 6.7. Line 6.7 is left blank unless the account holder is responsible for cash in
                   transit. If applicable, enter “Cash in Transit„ in the description column and the
                   month-to-date column total from line 6.7 of the final DD Form 2657 for the reporting
                   period in the far right column.

               (i) Line 6.8. If the account holder were responsible for monetary amounts designated
                   for payroll purposes, then the account holder would enter that amount on line 6.8.
                   Enter “Payroll Cash” in the description column and the dollar amount from the
                   month-to-date column total of line 6.8 of the final DD Form 2657 for the reporting
                   period in the far right column.

               (j) Line 6.9. The account holder will report other cash items on line 6.9. Enter “Other
                   Cash Items” in the description column and the dollar amount from the month-to-
                   date column of line 6.9 of the final DD Form 2657 for the reporting period in the far
                   right column.

NOTE:   Show Slide #63 – SF 1219 – Section I, Part B (2 of 2)

               (k) Line 7.1, Deferred Charges - Vouchered Items. The account holder reports all
                   deferred charges that are vouchered items on line 7.1. This amount must agree
                   with the month-to-date column entry on line 7.1 of the final DD Form 2657 for the
                   reporting period.

               (l) Line 7.2, Receivables - Check Overdrafts. Any check overdrafts must be reported
                   on line 7.2. The amount entered will be the sum total of the month-to-date column
                   total of lines 7.2A and 7.2B of the final DD Form 2657 for the reporting period.

               (m) Line 7.3, Losses of Funds. Enter any losses of funds for deputies, agents, or
                   cashiers on line 7.3. This amount must agree with the month-to-date column for
                   line 7.3 of the final DD Form 2657 for the reporting period.

               (n) Line 7.4, Receivables - Dishonored Checks. Report any dishonored checks on
                   hand at the end of the reporting period on line 7.4. Enter the amount from the
                   month-to-date column of line 7.4 of the final DD Form 2657 for the reporting period.

               (o) Lines 7.5 through 7.9. Do not enter any amounts on lines 7.5 through 7.9.

               (p) Line 8.0, Total of My Accountability. The sum total of lines 6.1 through 7.4 is
                   entered on line 8.0. This amount must agree with the month-to-date column total
                   from line 8.0 of the final DD Form 2657 for the reporting period.




                                                 54
           (5) Section I, Part C - Analysis of Predecessor Officers’ Accountability.

NOTE:   Show Slide #64 – SF 1219 – Section I, Part C

               (a) Part C outlines any predecessor’s accountability that has not been either settled by
                   the predecessor or claimed by DFAS. This section is broken into three major areas
                   of accountability.

               (b) Line 9.2, Receivables - Check Overdrafts. If the account holder is charged with the
                   responsibility to settle the accounts of predecessor DOs, then the combined month-
                   to-date column totals from lines 9.2A and 9.2B of the final DD Form 2657 for the
                   reporting period would be entered on line 9.2.

               (c) Line 9.3, Losses of Funds. As for line 9.2, line 9.3 is used when the account holder
                   is charged with the responsibility to settle the accounts of predecessor DOs. Enter
                   the month-to-date column total from line 9.3 of the final DD Form 2657 for the
                   reporting period on line 9.3.

               (d) Line 9.4, Other Accountability. Enter any other predecessor’s accountability that
                   has not been reported on lines 9.2 and 9.3 on line 9.4. This amount must agree
                   with line 9.4 of the month-to-date column total of the final DD Form 2657 for the
                   reporting period.

               (e) Line 10.0, Total Predecessor Officers’ Accountability. Enter the sum total of lines
                   9.2 through 9.4 on line 10.0. This total must agree with line 10.0 of the final DD
                   Form 2657 for the reporting period.

               (f) Line 11.0, Total Disbursing Office Accountability. Enter the sum total of lines 8.0
                   and 10.0. This is the total accountability for the account holder for this reporting
                   period. This total must equal line 5.0 and the month-to-date column total of line
                   11.0 of the final DD Form 2657 for the reporting period.

           (6) Section II, Part A. - Checks Issued and Adjustments for Prior Periods.

NOTE:   Show Slide #65 – SF 1219 – Section II, Part A

               (a) Section II, Part A outlines the checks issued and check issue adjustments for the
                   current reporting period.

               (b) Column (1) - Check Symbol. Enter the DSSN covered by the SF 1219 under
                   column (1).

               (c) Column (2) - Amount of Checks Issued This Period. Under column (2) enter the
                   total amount of all U. S. Treasury checks issued under this DSSN for the current
                   reporting period. Check issue adjustments accomplished using Journal Vouchers
                   (OFs 1017-G) applicable to checks issued during this reporting period shall be
                   included in the total shown in this column. The amount entered in this column must
                   agree with the amount reported on line 1 of the summary portion of the SF 1179.
                   Do not enter limited depositary account check issues in this column.

               (d)      Column (3) - Adjustments for Prior Months’ Issues by FMS Form 5206. If the
                     account holder has check issue adjustments for checks issued in prior periods that
                     are recorded on the FMS Form 5206, they will record these adjustments in column
                     (3). Enter the issue month and year and the amount of each adjustment applicable
                     to checks issued in prior periods and documented by FMS Forms 5206. The total



                                                  55
                    of this column must equal the amount shown on line 2(a) in the summary portion of
                    the SF 1179.

               (e) Column (4) - Adjustments for Prior Months’ Issues by Other than FMS Form 5206.
                   If the account holder has check issue adjustments for checks issued in prior periods
                   that are not recorded on FMS Form 5206, they will enter the adjustment amount in
                   column (4). The total of this column must equal the amount shown on line 2(b) in
                   the summary portion of the SF 1179.

               (f) Column (5) - Total Checks Issued. The total of column (2) plus/minus the amounts
                   entered in columns (3) and (4) is entered in column (5). The total in column (5)
                   must equal the amount reported on line 2.1 of Section I, Part A on the front of the
                   SF 1219. This amount must also equal the amount reported on line 3 in the
                   summary portion of the SF 1179.

           (7) Section II, Part B. - Summary of Deposits Presented or Mailed to Bank.

NOTE:   Show Slide #66 – SF 1219 – Section II, Part B

               (a) Section II, Part B outlines the DSSN’s deposits (SF 215) and debit vouchers (SF
                   5515) that have affected the account holder’s account during the reporting period.

               (b) Column (1) - Deposit Symbol. Enter the DSSN covered by the SF 1219 under
                   column (1).

               (c) Column (2) - Deposits Presented or Mailed to Bank this Month. Enter the total of all
                   actual deposits made this reporting period in column (2). This includes all deposits,
                   regardless of whether the deposits have been confirmed by the depositary. If the
                   first deposits for the reporting period were actually dated the last few days of the
                   prior reporting period, you will list them in columns (3) and (4).

               (d) Columns (3) and (4) - Deposits Presented or Mailed to Bank in Prior Months but
                   Recorded in Accounts this Month. Enter in column (3) the month and year of
                   presentation or mailing of all SF 215s and SF 5515s taken into the account during
                   the current month with a presentation or mailing date in any prior accounting period.
                   Enter in column (4) the total amount of the deposits less the debit vouchers for the
                   prior reporting period. Use separate entries if more than one prior reporting period
                   is involved.

               (e) Column (5) - Total Deposits Presented or Mailed to Bank. Enter the total of
                   columns (2) and (4) in column (5). The total must agree with the amount shown on
                   line 4.2 in Section I, Part A on the front of the SF 1219.



5.      Learning Step / Activity 5.Currency Conversion Records
        Method of Instruction:          Discussion Conference
         Instructor to Student Ratio:   1:1921
                 Time of Instruction:   30 mins
                              Media:    Slides
        a. General.

           (1) The use of foreign currency and foreign disbursing operations is governed by the
               DoDFMR, Volume 5, Chapter 12 – Foreign Disbursing Operations.



                                                 56
   (2) With the exception of areas where U.S. diplomatic or financial relations make the use of
       U.S. dollars inadvisable, U.S. currency or U.S. Treasury checks shall be the only
       medium of exchange for: pay of military and civilian personnel allowances (except for
       amounts acceptable in local currency by payees and as required to be paid in local
       currency by this section) per diem, travel expenses, and purchases from appropriated
       and nonappropriated fund activities located in or visiting the foreign currency area.

   (3) In deployed environments, FM units normally conduct conversion and reconversion
       transactions with and between U.S. and foreign currency.

       (a) Conversions are transactions that change U.S. dollars into a foreign currency at a
           stated exchange rate.

       (b) Reconversions are transactions that change a foreign currency into U.S. dollars at a
           stated exchange rate.

b. The Use of Foreign Currency.

   (1) In general, in areas where U.S. currency is prohibited or where diplomatic or financial
       considerations make its use inadvisable, the senior commander shall consult with other
       U.S. military commanders and Department of State representatives in the area to
       determine the local government’s foreign currency control regulations.

   (2) Where the use of foreign currency is necessary, the finance officer shall obtain the
       currency by one of the following preferred methods in the order listed below.

       (a) Purchase from the U.S. Government (Military Banking Facility, Department of
           Treasury or other U.S. Disbursing Offices).

       (b) By purchase from commercial sources.

       (c) By repurchase from individuals (subject to the restrictions)

   (3) The finance officer is required to comply with the following requirements in obtaining
       foreign currency.

       (a) It is obtained and only used for official purposes.

       (b) It is not purchased or held in excess of immediate disbursing needs.

       (c) Purchases of foreign currency with U.S. dollars are made for spot delivery (delivery
           will be within two business days).

       (d) The currency is in the physical custody of the finance officer before any foreign
           currency disbursement is made.

       (e) The currency is not purchased by forward contracts directly from foreign
           governments, private firms or individuals at a negotiated rate without prior
           authorization from the U.S. Treasury. All requests for this authorization must go
           through DFAS.

       (f) Speculation in foreign currency is prohibited.




                                          57
         (g) Where there is an MBF in country, foreign currency shall be purchased by the
             finance office at the MBF sell rate and for foreign currency purchases for
             accommodation exchanges at the accommodation rate.

         (h) Holdings of foreign currency shall be limited to seven (7) business days.

         (i) When purchased from sources other than the U.S. Government (including an MBF),
             foreign currency shall be purchased at the best rate available in compliance with
             the laws of the country.

         (j) Records of foreign currency collections shall include the source of the currency,
             shall indicate miscellaneous receipt accounts or other Department of Transportation
             (DOT) accounts to be credited, and shall identify any restrictions on the use of the
             currency.

         (k) Foreign currency reports shall be prescribed by the DoDFMR.

c.   Accommodation Exchange Services.

     (1) As previously mentioned, paying agents appointed on orders to provide individual
         payment support, generally provide support in three categories.

         (a) Make payments

         (b) Currency conversion

         (c) Check cashing

     (2) An accommodation exchange service is another word for individual payment support
         provided by a paying agent. It consists of

         (a) The exchange of U.S. Treasury checks or U.S. dollar instruments for U.S. dollars
             (check cashing)

         (b) The selling of foreign currencies in exchange for U.S. dollars or dollar instruments

         (c) The repurchase of foreign currencies with U.S. dollars or dollar instruments when
             permitted.

     (3) With regards to foreign currency, finance officers are authorized to use official funds to:

         (a) Pay out foreign currency for checks, drafts, postal money orders, traveler’s checks,
             and other instruments payable in U.S. dollars.

         (b) When commanders have specifically approved and implemented accommodation
             exchange services only after determining that:

             i     Contract MBFs, other on-base financial institution, commissaries, exchanges,
                   or U.S. postal facilities can fulfill adequately the needs of DoD personnel

             ii    The finance officer has an immediate need for the foreign currency
                   repurchased.

             iii   Authorized personnel have been ordered by competent authority to safe
                   haven posts because of emergency evacuation



                                            58
               (c) All negotiable instruments presented to purchase foreign currency must be
                   presented by the payee in person or by a dependent holding a valid power of
                   attorney from the payee.

           (4) The paying agent will make foreign currency exchanges using funds entrusted to him
               on DD Form 1081. Disbursing officers, agents, and cashiers making foreign currency
               accommodations exchanges shall maintain DD Form 2664 (Currency Exchange
               Record) on a daily basis to ensure that all conversions are properly accounted for.

NOTE:   Distribute Handout #8 – DD Form 2664, Currency Exchange Record

        Display Slide #67 – DD Form 2664, Currency Exchange Record

        d. DD Form 2664 (Currency Exchange Record)

           (1) The currency conversion record, DD Form 1664, is maintained on daily basis to reflect
               the amount and source of funds. The authority to make accommodation exchanges
               granted to a paying agent may be suspended or curtailed by the finance officer to the
               extent necessary so that the finance officer can carry out other responsibilities.

           (2) All exchanges are usually done in even dollar/foreign currency increments (this speeds
               customer service operations and mitigates the possibly of losses of funds). Only a
               designed official in the FM unit should grant exceptions to this procedure.

           (3) Once the customer’s status is verified, count and verify (in front of the customer) the
               total of all currencies that he/she has given you for the transaction. Confirm that this
               amount agrees with what the customer counted and that it is the amount that the
               customer wants to exchange. Always screen/spot-check money from customers for
               possible counterfeits.

           (4) For conversions (from U.S. dollars to foreign currency), ensure that the U.S. dollar
               amount is an even increment (as applicable). Take the U.S. dollar total and multiply it
               by the official foreign currency conversion rate for that day. The result is the amount of
               foreign currency you must disburse to the customer. Disburse the payment, ensuring
               that it is counted three times before the customer takes possession of the funds. Fill out
               the applicable portions of DD Form 2664 (Currency Exchange Record) and return the
               customer’s ID card.

           (5) For reconversions (from foreign currency to U.S. dollars), ensure that the foreign
               currency amount is an even increment (as applicable). Take the foreign currency total
               and divide it by the official foreign currency reconversion rate for that day. The result is
               the amount of U.S. dollars disbursed to the customer. Disburse the payment, ensuring
               that it is counted three times before the customer takes possession of the funds. Fill out
               the applicable portions of DD Form 2664 and return the customer’s ID card.

           (6) Reconversions are normally conducted only for customers who are about to leave the
               area of operations/redeploy. Soldiers and other authorized customers are strongly
               encouraged to spend their foreign currency before departing, rather than reconverting it
               (at a normally higher, and therefore disadvantageous, rate). Reconversion transactions
               should normally not exceed an amount equal to two weeks of the customer’s pay and
               allowances (exceptions to this amount should be approved by a designated FM unit
               official).




                                                  59
F. ENABLING LEARNING OBJECTIVE

        ACTION:             Define Certifying Policies

        CONDITIONS:         In a classroom environment, given an interim module examination
                            without notes.

        STANDARDS:          Correctly answer 70% of questions asked in an end-of-course
                            course ? examination in accordance with instructional material
                            presented.

1.     Learning Step / Activity 1.Certifying Policies
               Method of Instruction:   DiscussionConference
         Instructor to Student Ratio:   1:1921
                 Time of Instruction:   30 mins
                              Media:    Slides

       a. General.

           (1) Providing support to a joint operation may require contracting between foreign
               governments, commercial entities, Non-Governmental Organizations (NGOs), and
               Private Voluntary Organizations (PVOs). Contracting can be an effective force multiplier
               of combat service support for deployed forces.

           (2) As has been previously discussed, contingency contracting requires an understanding
               of the legal requirements, funding issues, and the duties and responsibilities of
               procurement personnel, their relationships with support staff, and their requirements in
               deployment preparation. The ability to work with people who have vastly different
               cultures, backgrounds, perspectives and, most importantly, business practices, is
               another aspect of contingency contracting that has considerable impact on successful
               support of a joint operation. Contingency contracting officers continue to follow Federal
               Acquisition Regulations and Service-specific supplemental guidance.

           (3) Local business practices, a less-than-stable environment, and the contractor’s lack of
               knowledge of U.S. payment and contracting procedures may require contracting officers
               to arrange for immediate payment. Immediate payment can be made through credit
               cards, the finance officer, or by check.

           (4) Payment for services may be appropriate at the conclusion of each workday, workweek,
               or upon completion of each specified period of performance. In many cases, the
               responsiveness of contractors is directly attributed to the timeliness of the payment.

           (5) Advance payments are the least preferred method of payment, and should be used only
               on rare occasions when it is in the best interest of the government. Recouping money
               or forcing a contractor to perform according to contract standards through negotiation
               and litigation after an advance payment may not get the mission accomplished in a
               timely manner. The success of all operations depends on the support provided to the
               logistics system and to contingency contracting operations. As previously discussed,
               paying agents in forward deployed areas, provide both individual support and local
               procurement support.

               (a) Individual support entails making payments, cashing checks, and making foreign
                   currency conversions for individual service members.



                                                   60
   (b) Local procurement support involves the purchase of supplies and services from the
       local economy in order to meet logistical shortfalls.

(6) Local procurement support includes two areas, they are contracting support and
    Commercial Vendor Support (CVS).

   (a) Contracting Support.

       i      Contracting support is normally the function of the FM BN. It involves the
              payment of vendors for goods and services. Examples include all classes of
              supply, laundry operations, bath operations, transportation, and maintenance.

       ii     Other examples include: bulk purchases, agreements for water, refuse
              disposal, housing and transportation, airport and landing fees, and contractor
              construction projects.

       iii    The FMCOM maximizes the use of Electronic Funds Transfer (EFT)
              payments to these vendors.

   (b) CVS.

       i      CVS is for the immediate needs of the force. These are the needs that the
              standard logistics systems cannot support. FM Support Teams (FMSTs) and
              paying agents normally pay cash for CVS (unless a credit/purchase card
              policy is in effect).

       ii     Purchases are normally made in local currency. These types of payments
              usually increase during operations in lesser developed areas and remote
              sites. Cash payments are usually for such items as:

              (i) pay for day laborers

              (ii) Class I supplements (not otherwise on contract)

              (iii) Construction materials not readily available through the contract or supply
                    system.

       iii    Local procurement can augment the following supply and services areas:

              (i) Class I – bottled water and food

              (ii) Class II – organization equipment and clothing

              (iii) Class III – petroleum, oils, and lubricants (POL)

              (iv) Class IV – construction materials

              (v) Class V – ammunition

              (vi) Class VI – troop support

              (vii) Class VII – major equipment and end items

              (viii) Class VIII – medical supplies




                                       61
                          (ix) Class IX – repair parts

                          (x) Laborers (stevedores, drivers, mechanics, etc.)

                          (xi) Dining facility operators

                          (xii) Clothing exchange and bath services

                          (xiii) Sanitation

                          (xiv) Mortuary affairs services (within specific parameters)

                          (xv) Transportation

                          (xvi) Billeting

                          (xvii) Utilities

                          (xviii) Maintenance and repair

                (c) FM units acquire, certify, and provide funds for the purchase of goods and services.
                    A large percentage of FM wartime efforts may be the execution of this
                    responsibility. It is the requirement and responsibility of the FM units and their
                    soldiers to prevent improper or illegal payments. Inherent in this is the requirement
                    for sound certifying policies.

                (d) FM units coordinate with contracting and legal offices regarding local business
                    practices.

        b. Certifying Policy.

            (1) Public Law 104-106 (Certifying Officer Legislation – COL) requires the appointment of
                an individual who is independent and organizationally separate from the finance office
                to certify vouchers.

            (2) In establishing certifying policy, several terms must be understood and included in that
                policy.

NOTE:     Show Slide # 68 – Certifying Policy Definitions

                (a) Certification. The act of attesting to the legality, propriety, and correctness of a
                    voucher for payment. The person making the certification states: “The items listed
                    therein are correct and proper for payment from the appropriation(s) or other funds
                    designated thereon or on supporting vouchers, and that the proposed payment is
                    legal, proper and correct”. Certifying officers may certify payments by manual or
                    electronic methods and may certify individual vouchers, or a summary of several
                    vouchers.

                (b) Certifying Officer (Official). The individual assigned responsibility for certifying
                    vouchers for payment.

                (c) Accountable Official. Individuals appointed by support the certifying officer with
                    timely and accurate date, information, and/or service to ensure proper payment.




                                                    62
         (d) Supervisors. Supervisors (military or civilian) are responsible for ensuring that
             certifying officers receive initial and continuous training on all COL initiatives.

         (e) Disbursing Officer/Paying Agent. Individual responsible for disbursing money
             according to duly certified vouchers. The Disbursing Officer/Paying Agent is not
             pecuniary liable as long as the voucher was properly certified.

         (f) Pecuniary Liability – The personal financial liability of Certifying Officers for
             erroneous payments they have certified.

         (g) Reviewing Officials. Individuals appointed to perform post-payment reviews of
             certified payments. They initiate and maintain files on inquiries into questionable
             payments. They are responsible for bringing charges against the Certifying Official.
             They may not serve concurrently as accountable officials, certifying officers, or
             disbursing officers.

c.   Local Procurement Support.

     (1) For local procurement support, the commander appoints a paying agent on an
         additional duty appointment order. This appointment authorizes the paying agent to
         disburse public currency IAW the special instructions stated in the appointment letter
         and the additional written instructions provided by the finance officer.

     (2) The ordering officer, whom the paying agent supports, receives separate instructions
         from contracting officials.

     (3) The paying agent provides support only for local procurement efforts. The paying agent
         does not provide any individual support.

d. The Certifying Officer.

     (1) Prior to the 1996 passage of COL, the DoD did not have certifying officers. Only
         disbursing officers were pecuniary liable for fiscal irregularities, including erroneous
         payment. That is no longer the case.

     (2) Certifying officers depend on accountable officials to provide accurate source
         documents. To promote professionalism and strengthen internal controls, a certifying
         officer should be a supervisor and:

         (a) Be knowledgeable of the subject matter

         (b) Have the background or experience in the preparation of a voucher for payment

         (c) Have knowledge of appropriations and other funds and accounting classifications

         (d) Have knowledge of the payment process

     (3) The role of the certifying officer is critical.

         (a) Certifying officers are pecuniary liable for erroneous payments they have certified.
             This means they are responsible for:

              i     the full amount of any illegal, improper, or incorrect payment

              ii    Any payment prohibited by law



                                               63
           iii   Any payment that does not represent a legal obligation under the
                 appropriation or fund involved.

       (b) By affixing a manual, electronic, or digital signature to a payment, a certifying officer
           certifies to a disbursing officer that the items listed are correct and proper for
           payment from the appropriations(s) on the supporting document, and that the
           proposed payment is legal, proper, and correct.

       (c) Certifying officers are presumed negligent in the case of erroneous payments and
           bear the burden of proof of absence of negligence.

       (d) Heavy workload, shortage of personnel, lack of supervision, lack of training, lack of
           experience, extra duties, following orders, good work record, length of service, or
           financial hardship are all unacceptable excuses that may not be used when
           requesting relief of liability.

       (e) Detailed responsibilities of all officials involved in the payment process are
           discussed in detail in DoDFMR, Volume 5, Chapter 33.

   (4) The Appointment Process

       (a) All certifying officers shall be appointed by the issuance of a letter of appointment
           and the completion of a DD Form 577 (Signature Card). Both the letter and the
           signature card shall specifically identify the types of payments to be certified.

       (b) The heads of DoD components or their designees make appointments. A
           disbursing officer may not appoint a certifying officer; however, during tactical
           operations, a certifying officer may be appointed from personnel within the
           disbursing office.

       (c) When a computation function is performed at an activity independently of the
           disbursing function, a certifying officer may be appointed at the first line supervisor
           level or higher within the computation organization.

e. The Certification Process

   (1) Certification is more than just approval of a voucher for payment. It is a statement to
       the DO that the item(s) is correct and proper for payment from the appropriation(s) or
       other funds designated on either the voucher or the supporting documents. The
       certification states that the payment is legal, proper, and correct

   (2) The certification process is a method that develops an audit trail. When performed
       correctly, it will provide protection for the certifying officer.

   (3) Certifying officers are automatically liable for the amount of improper payments
       resulting from their certifications. The actual certification is performed directly on the
       voucher or on a summary of several vouchers. It may be manual or electronic.

   (4) The generic process for certification consists of:

       (a) Reviewing the documents received that support the payment.

       (b) Computing the entitlement.

       (c) Affixing the certification to the voucher.



                                           64
     (5) Manual Certification. Manual certification is made directly on the voucher. It must
         contain the following items listed below. Manually certified vouchers may be mailed or
         faxed to the disbursing office.

         (a) The signature of the certifying officer

         (b) The name, typed or printed, of the certifying officer

         (c) The of title of Authorized Certifying Official

         (d) The date

         (e) The dollar amount

     (6) Electronic Certification. Electronic certifications are system-generated. If electronic
         certification is the method of certifying a voucher for payment, there must be adequate
         safeguards to prevent its improper use. These safeguards should include the following:

         (a) Uniqueness of the certifying officer

         (b) Under the sole control or custody of the certifying officer

         (c) Linkage to the data certified in a manner that invalidates the electronic signature is
             the data is changed or altered

         (d) Capability of independent verification of the signature by the DO

     (7) Certification Requirements for a Valid Payment.

         (a) There must be complete documentary evidence of a legal payment. This evidence
             supports the legal liability for the payment. Supporting documents clearly establish
             that the requested service/good have been delivered and received and the vendor
             has billed for the service/goods delivered. For vendor payments this will consist of
             a contract/purchase order/delivery order, a receiving report and a vendor invoice
             requesting payment.

         (b) Certifying officers ensure that vouchers certified for payment are valid. The
             certifying officer is accountable for:

             i     The amount of any illegal, improper, or incorrect payment resulting from an
                   inaccurate or misleading certification

             ii    Any payment prohibited by law

             iii   Any payment that does not represent a legal obligation under the
                   appropriation or fund involved

         (c) The payment voucher, all supporting documentation, any determinations made by
             or for the certifying officer, and the accountability features form an audit trail and
             must be accessible and retrievable. This audit trail may become the basis for relief
             from liability for the certifying officer.

f.   The Finance/Disbursing Officer.




                                             65
           (1) A disbursing officer may not be appointed a certifying officer and cannot appoint a
               certifying officer. Disbursing officers are responsible for the disbursement of money as
               provided on duly certified vouchers.

           (2) To accomplish this, they must examine the voucher to determine that it is in the proper
               form, that it is certified and approved by an authorized certifying officer, and that it is
               computed correctly for the facts certified.

           (3) Vouchers that are not in the proper form, are not complete, or are not properly certified
               will be returned to the certifying officer.

           (4) A disbursing officer has pecuniary liability for erroneous payments made without or
               contrary to a certified voucher.

        g. SF 44 (U.S Government Purchase Order-Invoice-Voucher).

NOTE:     Distribute handout #9 – SF 44 and review the completed form with the class. This should
          take about 15 minutes. Recommend showing a competed document

           (1) The SF 44 is the most common form used to pay for local procurement support when
               that support cannot be paid using an official credit/debit card.

           (2) It is a multi-use form that is prepared in quadruplicate. The various copies serve as a
               contract, receiving report, vendor invoice and vendor record of transaction. Because it
               is such a flexible, self-contained, all-in-one form, it is important that it is carefully
               guarded against unauthorized use. The SF 44 is used in lieu of the government
               credit/debit card for purchases that are:

               (a) Small and available for immediate pick-up

               (b) Only over the counter

               (c) Less that $2,500.00

               (d) Single or one-time transactions.

           (3) When the SF 44 must be used, the paying agent takes the following actions:

               (a) Reviews all blocks as prepared by the ordering officer.

               (b) Disburses currency for the goods or services as stated on the SF 44, but only after
                   the ordering officer has approved the SF 44.

               (c) Pays for purchases not to exceed $2,500.00 per vendor per day. A paying agent
                   may not split purchases between two or more vouchers in order to circumvent the
                   $2,500.00 limitation.

               (d) Clears his account with the finance commander according to local instructions.
                                                                                                             Formatted: Bullets and Numbering
           (4) An exception to the $2,500 limit on the SF44 applies to the Commanders Emergency
               Response Program (CERP). The CERP paying agent must take the following actions:

               (a) Reviews all blocks for correctness and ensures ordering officer signs prior to
                   making any payments.




                                                  66
               (b) Ensures the seller signs for the payment and checks the “payment received” block
                   and the receiver of goods signs in the “received by” block.

               (c) Limit all payments not to exceed the contracted amount of the Purchase Request
                   and Commitment (DA 3953).

               (d) Verifies the goods received by collecting receiving report (DD 250). The receiving
                   report must detail all work completed and itemize each cost.

               (e) Certify all payments through the first Colonel or higher in their chain of command.
                   This certifying commander will ensure all payments are properly made and sign a
                   corresponding clearance memorandum.

        h. SF 1034 (Public Voucher for Purchases and Services Other than Personal)

NOTE:     Distribute handout #10 – SF 1034 and review the completed form with the class. This should
          take about 15 minutes. Recommend showing a completed document

           (1) The SF 1034 is to pay precertified vouchers. A precertified payment voucher is a
               document completed and certified by an office or entity external to the FM unit.

           (2) Precertified vouchers using an SF 1034 are not normally paid by a paying agent, but
               rather are processed by the FM unit for a variety of miscellaneous transactions that
               occur outside the FM operation. These might consist of

               (a) Uniform allowances

               (b) Civilian clothing allowance

               (c) Individual reimbursements

               (d) Solatium Condolence payments

               (e) Gifts

               (f) Lease and rental agreements

               (g) Medical services

           (3) As stated previously, Certifying officers are pecuniary liable for erroneous payments
               they have certified. This means they are responsible for:

               (a) the full amount of any illegal, improper, or incorrect payment

               (b) Any payment prohibited by law

               (c) Any payment that does not represent a legal obligation under the appropriation or
                   fund involved.

               (d) Being knowledgeable of the subject matter for which they are certifying payment

               (e) Having the background or experience in the preparation of a voucher for payment.
                   They need to know what the supporting document requirements are




                                                 67
   (f) Having knowledge of appropriations and other funds and accounting classifications
       that must be affixed to the SF 1034

   (g) Having knowledge of the payment process

(4) General processing procedures for an SF 1034 would be:

   (a) Customer arrives at the cashier cage or FMST with a precertified SF 1034
       requesting payment. Examples of this type of voucher are an authorization for
       civilian clothing allowance and a condolencesolatium payment.

   (b) Ask the customer for his/her ID card and the voucher (an original and four copies).

   (c) Ensure that the payee name and Social Security number on the SF 1034 match the
       ID card.

   (d) Ensure that the totals are multiplied and/or added correctly.

   (e) Verify that the accounting classification block is correct (that is, ensure that it
       contains a valid, current-year appropriation).

   (f) Ensure that the signature and name in the “Pursuant to authority vested in me, I
       certify this voucher is correct and proper for payment” block matches the name and
       signature on the certifying officer signature card(s) maintained in your unit for this
       type of payment. (Note: The date on the certifying officer card should not be more
       than one year old.)

   (g) In the cash block (in the paid by section at the bottom of the voucher), the amount
       paid. Annotate the date paid in the “date” block. Ask the customer to write his/her
       full name and signature in the payee block.

   (h) Pay the customer in U.S. dollars or foreign currency as appropriate (ensuring that
       the cashier counts the payment three times before the customer takes possession
       of the funds).

   (i) Return the customer’s ID card, along with a copy of all completed documentation
       (ensuring that you retain the original voucher).




                                       68
G.   ENABLING LEARNING OBJECTIVE

      ACTION:              Describe disbursing methods in a non-automated environment.

      CONDITIONS:          In a classroom environment, given an interim module examination
                           without notes.

      STANDARDS:           Correctly answer 70% of questions asked in an end-of-course?
                           examination in accordance with instructional material presented.

1.   Learning Step / Activity 1. Non-Automated Disbursing Methods.
                Method of Instruction: DiscussionConference
          Instructor to Student Ratio: 1:1921
                  Time of Instruction: 15 mins
                               Media: Slides

     a. Many times the tactical environment or the mere geographical location of units, does not
        allow for an automated environment for financial management.

     b. In a non-automated environment, the recording of all disbursing transactions (payments,
        collections, agent advances, etc.) is done manually using paper and pencil (what about
        laptops?!?). All entries into an automated system are completed at a later date.

     c.    The impact that this has on the division comptroller is that the comptroller must keep a
           manual ledger on his status of funds. Using the SF 44 as an example, the process might
           be as follows:

           (1) The comptroller receives his funding authorization and records that information into a
               ledger based on the type of funding received on the funding authorization document
               (FAD) or the funding distribution document (FDD)

           (2) The commander needs local procurement support and appoints a paying agent on
               orders.

           (3) The paying agent presents the appointment orders to the supporting finance/disbursing
               office and is issued funds on a DD Form 1081.

           (4) The paying agent makes appropriate payments from properly certified and completed
               SF 44s or other contractual documents/vouchers.

           (5) The paying agent returns the paid SF44s and remaining cash to the finance/disbursing
               officer.

           (6) The agent’s SF 1081 is cleared.

           (7) Copies of all SF 44s and a summary SF 1034 (Public Voucher for Purchases and
               Services other than Personal) are sent to the appropriate division comptroller. This
               particular “step” would have been coordinated in advance between the comptroller and
               the FMCOM or the FM BN. The details of this step need to ensure that the comptroller
               receives all necessary payment data so that it can be recorded against the comptroller’s
               record of outstanding obligations.




                                                 69
(8) The originals of all SF44s and the SF 1034 are mailed to the FM units home site
    location. The home site location then sends the information to its supporting DFAS
    Operating Location for recording into the appropriate entitlement and accounting
    systems.




                                     70
H. ENABLING LEARNING OBJECTIVE

        ACTION:              Describe disbursing methods in an automated environment using
                             DDS and SRD-1.

        CONDITIONS:          In a classroom environment, given an interim module examination
                             without notes.

        STANDARDS:           Correctly answer 70% of questions asked in an end-of-course?
                             examination in accordance with instructional material presented.

1.     Learning Step / Activity 1. The Standard Finance System Redesign – Module 1 (SRD-1)
                  Method of Instruction: DiscussionConference
            Instructor to Student Ratio: 1:1921
                    Time of Instruction: 15 mins
                                 Media: Slides

       a. SRD-1 Description. The SRD-1 system (Standard Finance System (STANFINS) Redesign-
          1) was originally designed for the Army in order to:

             (1) Provide an automated method of computing, disbursing, and collecting travel and
                 vendor entitlements (i.e. faster processing).

             (2) Provide improved and timely accounting, reporting, and financial management for
                 managers (i.e., decision making).

             (3) Meet statutory and regulatory requirements (i.e. following laws and regulations,
                 DoDFMR, Vol. 5).

             (4) Interface with other STAMMIS (Standard Army Multi-command Management
                 Information System) systems to implement source data automation and to share
                 information.

       b. Definition.

             (1) SRD-1 is a multi-function, interactive database system. It is generally run in CONUS,
                 OCONUS non-tactical, non-deployment areas by the Defense Finance and Accounting
                 Service (DFAS).

             (2) It consists of a series of programs designed to provide finance and accounting
                 information management. The system automates several disbursing tasks previously
                 performed manually. It interfaces with other automated systems to receive, process,
                 and transmit common information needed by the other systems

             (3) In simple terms, SRD-1 is a system that enables the Disbursing Officer to pay, collect,
                 and report with timeliness and accuracy.

       c.    In a non-tactical environment, disbursing payment and collection actions are accomplished
             through a system called Standard Finance System Redesign – Module 1 or more simply
             called, SRD-1. The total system actually is the combination of several different functions
             that perform payment and collection actions. The different functions are listed below.

             (1) Travel



                                                   71
           (2) Accounts Payable

           (3) Military Pay

           (4) Accounting

           (5) Disbursing

        d. These five functions share one common database. The database interactively processes
           data input by users and retrieves data in formatted reports.

NOTE:     Show Slide #69 – SRD-1 Interfaces

           (1) The travel function of SRD-1 is used to perform the tasks normally associated with a
               travel branch. Voucher data computed from Integrated Automated Travel System
               (IATS) is uploaded through Occupational Data Store (ODS) to SRD-1 and vouchers are
               printed in the disbursing office at the time that payment is made.

           (2) The accounts payable function of SRD-1 supports the preparation of the SF 1034 and
               function reports. The Computerized Accounts Payable System (CAPS) computes and
               certifies accounts that are payable and transfers the transactions through ODS to SRD-
               1 for payment.

           (3) The military pay functions of SRD-1 are used to make payments computed and input in
               the Defense Military Pay Office (DMPO) or DDCD’s spell out Military Pay Office. The
               tasks performed are related to the preparation of voucher data for local payments (i.e.,
               casual pay, advance pay).

           (4) The accounting function of SRD-1 is used to input the types of transactions listed
               below. In addition, voucher status reports can be requested to identify vouchers that
               are awaiting payment or certification.

               (a) SF 1049 (Public Voucher for Refunds)

               (b) SF 1080 (Voucher for Transfer between Funds)

               (c) SF 1081 (Transfer Adjustment)

               (d) DD 1131 (Cash Collection Voucher) for receipts associated with accounts
                   receivable

           (5) The disbursing function of SRD-1 is used to perform those tasks normally associated
               with a disbursing division. SRD-1 is usually run at a centralized disbursing location by
               DFAS at Indianapolis, Denver or Kansas City. These tasks are

               (a) Control and issue of Treasury checks and EFT.

               (b) Collection (negotiable instruments, cash, and EFT)

               (c) Control and redemption of dishonored checks

               (d) Agent operations

               (e) Preparation of the:




                                                 72
                 i     Disbursing officer trial balance report

                 ii    Proof of cash report

                 iii   Check register report

                 iv    Cash blotter report

                 v     Statement of accountability report

             (f) Print Advice of Payment (AOP) and checks

             (g) Conversion of vouchers to soft copy files for Electronic Data Access (EDA). There
                 are no disbursing officer voucher (DOV) hard copies in DDCD or Accounting. The
                 local area network (LAN) is used to access the Internet to view the EDA copy.

         (6) SRD-1 Users and Operations.

             (a) SRD-1 is used by the following activities to transmit disbursing information:

                 i     DFAS Field Sites (i.e., Orlando, Rome, Rock Island, San Antonio, Lawton)

                 ii    United States Property and Fiscal Offices (USPFOs)

                 iii   Defense Military Pay Offices (DMPOs)

                 iv    Defense Network Operations (DNO; located at DFAS Indianapolis)

                 v     Operating Agency 97 (DoD; located at DFAS Indianapolis)

                 vi    Defense Directorate for Centralized Disbursing (DDCD)

             (b) The SRD-1 system operates three Defense Electronic Commerce Centers (DECC)
                 or databases that the user must go through to access the system. These are:

                 i     St. Louis, Missouri

                 ii    Dayton, Ohio

                 iii   Kaiserslautern, Germany

             (c) Centralized disbursing operations at Columbus, Kansas City and Indianapolis
                 currently use SRD-1 to process disbursing information. The Columbus database is
                 at DECC Dayton, the Kansas City database is at DECC St. Louis, and Indianapolis
                 has five databases at DECC St. Louis and one at DECC Kaiserslautern.

NOTE:   Show Slide #69 – SRD-1 Interfaces

             (d) DFAS field operating sites that support Army finance and accounting information
                 send disbursing information to its designated DECC location. The centralized
                 disbursing sites at Columbus, Kansas City, and Indianapolis then pull data from the
                 DECC database and disburse funds. Centralized disbursing then download
                 disbursement information back to the field operating sites and to the STANFINS
                 accounting system.




                                                73
2.      Learning Step / Activity 2. The Deployable Disbursing System (DDS)
                   Method of Instruction: DiscussionConference
             Instructor to Student Ratio: 1:1921
                     Time of Instruction: 15 mins
                                  Media: Slides



        a. Overview.

              (1) DDS is strictly a disbursing system. The DDS is designed to automate the tactical or
                  OCONUS disbursing operations, check writing, reporting, and accountability. It is
                  designed for user single-source input from point of origin to the accounting system and
                  to the accountability reports and is the replacement for the Disbursing Office Processing
                  System (DOPS).

              (2) The DDS complies with Department of Defense Financial Management Regulation
                  (DoDFMR) 7000.14-R, Volume 5 rules. It is designed to work on a stand-alone
                  computer or on a network system using Windows NT. It handles remote processing
                  and will allow the information to be integrated with a main or originating site and remote
                  sites through the use of e-mail, floppy diskmemory stick, CD-ROM, or File Transfer
                  Protocol (FTP).

        b. The Disbursing Office.

              (1) The actual size of a disbursing office and the duties performed varies with each office.
                  This is determined by the location of the office, the activities supported, and other
                  considerations.

              (2) Each office has different tasks to complete, but follows the same set of rules. The DDS
                  helps ensure that the appropriate rules are followed. The DDS supports tactical
                  operations through agent collections and disbursements at the finance battalion and
                  detachment.

              (3) It also assists in the performance of system and accountability support at the main and
                  remote sites through automated processing of DD Forms 2665, 1081, and 2657, and
                  SF 1219.

              (4) Regardless of the organizational level using DDS, the information is completely
                  transportable to other systems using the 3.5 inch floppy diska memory stick, standard
                  e-mail services, CD-ROM, or FTP.

        c.    The Organizational Structure under DDS.

NOTE:        Show Slide #70 – Disbursing System Organizational Structure

              (1) DDS supports the disbursing system organizational structure shown in the overhead.

              (2) The main site accommodates those transactions performed at the finance battalion
                  level. The main site also accommodates remote sites in the form of agents and
                  detachments.

              (3) The remote site operates under the direction of the main site as an agent or
                  detachment.




                                                    74
              (4) A remote site may also establish remote operations called remote remote sites. This
                  could be in the form of Forward Support Teams (FST) or agents.

              (5) The finance battalion carries the disbursing station symbol number (DSSN) for the
                  activity. The battalion is responsible for submitting all U.S. Treasury-required fiduciary
                  reports. DDS supports any finance office structure.

         d. The Disbursing System Communications Structure.

NOTE:       Show Slide #71 – Disbursing System Communications Structure

              (1) DDS can operate without connectivity to a mainframe computer. Financial data is sent
                  using floppy disk or CD-ROM to capture and report data to the different levels as shown
                  in Figure 1-2.

              (2) The communication structure of DDS is described below.

              (3) The main site has a Local Area Network (LAN).

              (4) The remote site has computers with communication capabilities between the remote
                  and main sites. The remote site may also operate on a LAN.

              (5) Remote sites use e-mail, floppy diskmemory stick, CD-ROM, or FTP to transfer data.

              (6) DDS procedures support disbursing office internal controls. DDS prepares and tracks
                  payments, vouchers, and reports. The system controls all the normal day-to-day
                  functions of the disbursing office. DDS interfaces with numerous financial system
                  applications.

         e. Security.

              (1) Security is maintained by encrypting program code, maintaining user passwords, and
                  limiting access by the use of a permission matrix, which permits a system user to
                  access only specific processes. For example, a user may be authorized to maintain the
                  vault or access the system as Deputy Agent, System Admin, Agent, or a combination of
                  these duties.

              (2) The user profile is the major security control on the system. The profile determines
                  access level to the system. The file where the password information is stored is
                  encrypted. Certain functions will limit access to one user at a time to prevent errors.
                  Security procedures that must be implemented by the user are described in detail later
                  in the course.



This lesson plan provides a very good overview of disbursing operations in a finance unit. I found only a
few mistakes with the lesson plan. They included the absence of the new structure of the Finance Corps
and HO #8. The correct form for HO #8 can be found @
http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2664.pdf. I am not too sure what the intent of
going over the accountability forms in such detail. The lesson plan is consistent with a lecture type
method of instruction and not discussion. With that said I think it is a good lesson plan which should take
4 – 6 hours to teach.




                                                     75
SECTION IV.   SUMMARY


              Method of Instruction: Discussion
              Instructor to Student Ratio is: 1:196
              Time of Instruction: 15 mins
              Media: -None-



Check on       Determine if the students have learned the material presented by soliciting student
Learning       questions and explanations. Ask the students questions and correct
               misunderstandings.

               QUESTIONS and ANSWERS

               Q: Which FM organization is responsible for currency funding for the
                  Theater/ASCC?
               A: FMCOM

               Q: Who is responsible for performing appropriated and non-appropriated fund
                  accounting at the Theater/ASCC level?
               A: The accounting branch

               Q: Within the Theater/ASCC, Intelligence/Operations and Training is the
                  responsibility of what staff element?
               A: FMCOM S2/S3

               Q: What level of financial organization would provide support to a Division?
               A: A FM BN.

               Q: A paying agent may provide both local procurement support and individual
                  payment support. True/False?
               A: False. The agent may provide one or the other but not both.

               Q: At the FMCOM level, who generally heads the cash management branch?
               A: 03, 44A00, Funding Officer

               Q: How often must the finance officer personally make a physical inspection of
                  security measures?
               A: Semi-annually

               Q: A disbursing officer may also serve as a certifying officer? True/False?
               A: False

               Q: FM BN finance officers appoint paying agents?
               A: False. They are appointed by the agents commander.

               Q: What form is used to advance funds to a paying agent?
               A: DD Form 1081 (Statement of Agent Officer’s Account)

               Q: What form must the finance officer use to report is monthly accountability?
               A: SF 1219 (The Statement of Accountability


               NOTE: Solicit and answer the student’s questions. This is not a graded activity.



                                             76
NOTE:   Show Slide #72 - Terminal Learning Objective


Review /      The Terminal Learning Objective of this lesson was to explain disbursing
Summarize     operations, the duty positions of the cash branch, and automated and manual
Lesson        disbursing methods.
              a.   During enabling Learning Objective 1of this lesson you learned about the
                   organization of a disbursing operation at the Division level.

              b.   During Enabling Learning Objective 2 of this lesson, you learned to identify
                   the major responsibilities of the disbursing officer at the Division level.

              c.   During Enabling Learning Objective 3 of this lesson, you learned to identify
                   the major duty positions of the cash branch.

              d.   During Enabling Learning Objective 4 of this lesson, you learned about the
                   specific requirements related to the safeguarding of assets.

              e.   During Enabling Learning Objective 5 of this lesson, you learned about

                   (1)   the purpose of key forms used for daily and monthly accountability of
                         disbursing officer funds in deployed areas and for currency conversion.

                   (2)   Currency conversion requirements

              f.   During Enabling Learning Objective 6 of this lesson, you learned about
                   certifying policies and procedures.

              g.   During Enabling Learning Objective 7 of this lesson, you learned about
                   disbursing operations in and non-automated environment.

              h.   During Enabling Learning Objective 8 of this lesson, you learned disbursing
                   operations in an automated environment.




                                           77
                              Appendix A - Viewgraph Masters

                  VIEWGRAPHS FOR LESSON: AJE45103LP version 1
                      Slide Masters (Filename: AJE45103Slides.ppt)

Number                                                Title

  1      FA 45 Intermediate Level Education (ILE) Disbursing Operations

  2      Terminal Learning Objective

  3      Enabling Learning Objective

  4      Enabling Learning Objective

  5      Enabling Learning Objective

  6      Acronyms and Terms

  67     Strategic Financial Management

  87     Operational Financial Management

  98     Organization of the FMCOM

 109     Tactical Financial Management

 101     Levels of Financial Support

 112     Organization of the FM BN

 123     Disbursing Station Symbol Number (DSSN)

 134     Organization of the FM DET

 145     Disbursing Office

 156     Disbursing Officer

 167     Disbursing Officer (Conflicts of Interest)

 178     Deputy Disbursing Officer

 189     DDO Position Justification

 1920    Disbursing Agent Office

 201     Cashier Position

 212     Paying Agent

 223     Appointment Letter




                                               A-1
234    Funds can only be used for…

245    FM 14-100 Requirements

256    Support Types

267    Individual Payment Support

278    Transactions of the Agent

2829   Transactions of the Agent – U.S. Treasury Checks

2930   Transactions of the Agent – Negotiable Instruments

301    Transactions of the Agent – Foreign Currency Exchange

312    Organization of the FMCOM

323    Organization of the FM BN

334    Disbursing Officer

345    DD Form 1081, Statement of Agent Officers Account

356    DD Form 2657, Daily Statement of Accountability

367    DD Form 2665, Daily Agent Accountability Summary

378    SF 1219, Statement of Accountability

389    Appointment Letter

3940   The Paying Agent

401    DD Form 1081

412    DD Form 1081 (Detail 1 of 9)

423    DD Form 1081 (Detail 2 of 9)

434    DD Form 1081 (Detail 3 of 9)

445    DD Form 1081 (Detail 4 of 9)

456    DD Form 1081 (Detail 5 of 9)

467    DD Form 1081 (Detail 6 of 9)

478    DD Form 1081 (Detail 7 of 9)

489    DD Form 1081 (Detail 8 of 9)

4950   DD Form 1081 (Detail 9 of 9)




                                         A-2
501    DD Form 2657, Statement of Accountability

512    DD Form 2657 - Concepts

523    DD Form 2657 – Section I

534    DD Form 2657 – Section II & III

545    DD Form 2657 – Section IV

556    DD Form 2657 – Section V

567    SF 1219, The Statement of Accountability

578    Overview of the Statement of Accountability

589    Statement of Accountability Administrative Data

5960   SF 1219 – Section 1, Part A (1 of 2)

601    SF 1219 – Section I, Part A (2 of 2)

612    SF 1219 – Section I, Part B (1 of 2)

623    SF 1219 – Section I, Part B (2 of 2)

634    SF 1219 – Section I, Part C

645    SF 1219 – Section II, Part A

656    SF 1219 – Section II, Part B

667    DD Form 2664, Currency Exchange Record

678    Certifying Policy Definitions

689    SRD-1 Interfaces

6970   Disbursing System Organizational Structure

701    Disbursing System Communication Structure

721    Terminal Learning Objective




                                              A-3
Appendix B Test(s) and Test Solution(s) (N/A)




                    B-1
Appendix C - Practical Exercises and Solutions (N/A)




                        C-1
                              Appendix D - Student Handouts

                                   Student Handout #1
                                 Paying Agent Instructions


AJKG-A2BN-CDR (1)                                                             15 October 20XX

                                                                      nd        TH
MEMORANDUM FOR 1LT JOHNNY J. JONES, 999-99-9999, A Co., 2                  BN, 54    MECH DIV (2)

SUBJECT: Appointment as Paying Agent

1.    Effective 25 October 20XX (3), you are appointed as a paying agent to LTC Walter T.
                             th                                   th
      Corey, Commander, 10 Financial Management Battalion, 10 Corps (4). The maximum
      amount you can be advance is $15,000.00 (5)

2.    Authority: DoD 7000.14-R, Volume 5, Chapter 2, paragraph 020604.

3.    Purpose: To cash personal checks and accommodate currency conversion for personnel
                          nd     th
      assigned to A Co., 2 BN, 54 Mech Div.

4.    Period: 23 October 20xx – 25 October 20xx. (6)

5.    Special Instructions: You will not entrust/advance your currency advance to others for any
      purpose or reason. You will familiarize yourself with FM 14-100, especially Appendix C,
      Paying Agents. Upon receipt of the finance commander’s instructions, you will read and
      discuss them with finance personnel so that you fully understand your responsibilities and
      liabilities before you depart the financial management unit. You will at all times properly
      protect your currency advance and paid vouchers as outlined in your instructions and IAW
      DoD Financial Management Regulation – DoD 7000.14-R, Volume 5, Chapter 2,
      paragraph 020604. You will properly identify all individuals you pay. You will immediately
      notify the finance commander of any discrepancies as soon as detected. You will turn in
      currency and paid vouchers to the financial management unit immediately upon
      completion of your mission. (7)


                                               EDWARD M. ROSENTHAL
                                               LTC, IN
                                               Commanding (8)

CF:
            th
Commander 10 FM BN
                  nd
Commander A Co., 2 BN
BN S-1




                                              D-1
TRAINING NOTES:

(1) Office symbol of the appointing authority
(2) Paying Agent (grade, name, SSN, unit).
(3) Effective date of appointment order.
(4) Finance commander to whom the agent is appointed.
(5) The total amount necessary to complete the mission.
(6) The specific period of the appointment.
(7) Any special instructions deemed appropriate.
(8) The Paying Agents commander or individual authorized to sign for commander.




                                            D-2
                   Handout #2
DD Form 1081, Statement of Agent Officer’s Account




                       D-3
                                           Handout #3
                          DD Form 2657, Daily Statement of Accountability

                                                                                                      1. DSSN                        2. DATE
                   DAILY STATEM ENT OF ACCOUNTABILITY

SECTION I - TRANSACTIONS AFFECTING ACCOUNTABILITY

a. LINE NO.                                b. DESCRIPTION                                                     c. TODAY                  d. MONTH-TO-DATE

    1.0       ACCOUNTAB ILITY - Beginning of Day
    2.1A          CHECKS ISSUED IN PAYMENT OF VOUCHERS
    2.1B       I  CHECKS ISSUED - ALL OTHERS
    2.3        N  OTHER TRANSACTIONS (Do not report on SF 1219)
               C
    2.34       R  DISCREPANCIES IN DO ACCOUNT - CRE    DITS (Do not use this line)
    2.36       E                          R
                  PAYMENTS BY ANOTHE DO (Do not use this line)
    2.37       A  TRANSFERS FR   OM OTHER DOs
               S
    2.8        E  OPAC PAYMENTS AND COLLECTIONS
               S
    2.9           TOTAL ACCOUNTAB     ILITY INCR EASES

    3.0       GROSS ACCOUNTABILITY

    4.1A                 Gross Disbursements
    4.1B                 Less - Refunds
    4.1C                 Net Disbursements
    4.1D                 Less - Receipts
    4.1E                 Less - Reimbursements
    4.1F            NET EXPE NDITURES
    4.2A       D    DEPOSITS PRE SENTED OR MAILED TO BANK
    4.2B       E    EFT DEBIT VOUCHERS
               C
    4.3        R    OTHER TRANSACTIONS (Do not report on SF 1219)
    4.34       E                  S
                    DISCREPANCIE IN DO ACCOUNT - DE  BITS (Do not use this line)
    4.36       A    PAYMENTS FOR OTHER DOs (Do not use this line)
               S
    4.37       E    TRANSFE              R
                            RS TO OTHE DOs
               S
    4.9             TOTAL ACCOUNTABILITY DECREASES

    5.0       ACCOUNTABILITY - End of Day

SECTION II - DISTRIBUTION OF ACCOUNTABILITY - INCUMBENT DO

a. LINE NO.                    b. DESCRIPTION                               c. DAILY INCREASE           d. DAILY DECREASE                e. MONTH-TO-DATE

    6.1       DESIGNATED DEP OSITARY
    6.2A      U.S. CURRENCY/COINAGE ON HAND
    6.2B      FOREIGN CURR ENCY/COINAGE ON HAND
    6.3A      UNDEPOSITED COLLECTIONS - GE NERAL
    6.3B      OTHER UNDEPOSITED INSTRUMENTS ON HAND
    6.4       CUSTODY OR CONTINGE  NCY CASH
    6.5       FUNDS WITH AGENTS
    6.6                S
              ADVANCE TO CONTRACTORS
    6.7       CASH IN TRANSIT
    6.8       PAYROLL CASH
    6.9       OTHER
    7.1              D
              DEFERRE VOUCHERS
    7.2A      ACCOUNTS R ECEIVABLE - CHECK OVERDRAFTS
    7.2B      ACCOUNTS RE CEIVABLE - OTHER
    7.3       LOSS OF FUNDS
    7.4       DISHONOR ED CHECKS RECEIVABLE
    7.5
    7.6
    7.7

    8.0       TOTAL INCUMBENT DO ACCOUNTABILITY

SECTION III - DISTRIBUTION OF ACCOUNTABILITY - PREDECESSOR DOs

a. LINE NO.                    b. DESCRIPTION                               c. DAILY INCREASE           d. DAILY DECREASE                e. MONTH-TO-DATE

    9.2A      ACCOUNTS R ECEIVABLE - CHECK OVERDRAFTS
    9.2B      ACCOUNTS RE CEIVABLE - OTHER
    9.3       LOSS OF FUNDS
    9.4       OTHER

   10.0       TOTAL PREDECESSOR DO' s ACCOUNTABILITY

SECTION IV - DISTRIBUTION OF ACCOUNTABILITY - COMBINED

a. LINE NO.                    b. DESCRIPTION                               c. DAILY INCREASE           d. DAILY DECREASE                e. MONTH-TO-DATE

   11.0       TOTAL DSSN ACCOUNTABILITY

                    R
3. DISBURSING OFFICE NAME, RANK OR GRADE, TITLE (Type or Print )            4. DISBURSING OFFICER OR DEPUTY                          5. DATE
                                                                               SIGNATURE


DD Form 2 657, AUG 93 (EG)           REPLA CES DA FORMS 3 9 9 4 , 4 3 0 5 , A ND 5 2 6 0 ; NA V COMPT FORMS 2 4 5 A ND 3 7 9 ; A ND
                                                    A F FORMS 1 3 4 2 A ND 1 3 7 9 ; WHICH A RE OBSOLETE.                Designed using Perf orm Pro, WHS/ DIOR, Oct 94




                                                                     D-4
                                                               Handout #4
                                             SF 1219, Statement of Accountability – Front Side
  STANDARD FORM 1219
  Revised 4-82
  Department of the Treasury                                         STATEMENT OF ACCOUNTABILITY
  1 TFM 2-3100
NAME OF DISBURSING OFFICER                                                                                               LOCATION OF DISBURSING OFFICER (Mailing address)

NAME OF AGENCY

PERIOD OF ACCOUNT                                                                                                        AGENCY LOCATION CODE(ALC)(Show main check
                                                                                                                         symbol number)
FROM:                                            THROUGH:

                                                             SECTION I. - GENERAL STATEMENT OF ACCOUNT

                                                 PART A. - TRANSACTIONS DURING PERIOD AFFECTING ACCOUNTABILITY
1.00                                                                       TOTAL ACCOUNTABILITY BEGINNING OF PERIOD                               $

2.0                     INCREASES IN ACCOUNTABILITY
2.1          CHECKS ISSUED ON U.S. TREASURY                                                              $
2.3          OTHER TRANSACTIONS
      2.34   DISCREPANCIES IN D.O. ACCOUNTS-CREDITS
      2.36   PAYMENTS BY ANOTHER D.O.
      2.37   TRANSFERS FROM OTHER DISBURSING OFFICERS
      2.39
2.9                                                                          TOTAL INCREASES IN ACCOUNTABILITY                                    $

3.0                                                                                                                                 SUBTOTAL $
4.0                     DECREASES IN ACCOUNTABILITY
4.1          NET DISBURSEMENTS                                                                           $
4.2          DEPOSITS PRESENTED OR MAILED TO BANK
4.3          OTHER TRANSACTIONS
      4.34   DISCREPANCIES IN D.O. ACCOUNTS-DEBITS
      4.36   PAYMENTS FOR ANOTHER D.O.
      4.37   TRANSFERS TO OTHER DISBURSING OFFICERS
      4.39
4.9                                                                                            TOTAL DECREASES IN ACCOUNTABILITY $
5.00                                                                                TOTAL ACCOUNTABILITY CLOSE OF PERIOD                          $

                                                      PART B. - ANALYSIS OF INCUMBENT OFFICER’S ACCOUNTABILITY
             CASH ON DEPOSIT IN DESIGNATED DEPOSITARY

6.1          ____________________________________________________________________________________________                                         $
                                                  (Name and location of depositary)
6.2          CASH ON HAND
6.3          CASH - UNDEPOSITED COLLECTIONS
6.4
6.5          CASH IN CUSTODY OF GOVERNMENT CASHIERS
6.6
6.7
6.8
6.9
7.1          DEFERRED CHARGES - VOUCHERED ITEMS
7.2          RECEIVABLES - CHECK OVERDRAFTS
7.3          LOSSES OF FUNDS
7.4          RECEIVABLES - DISHONORED CHECKS
7.5
7.6
7.7                                    “FOR INSTRUCTIONAL PURPOSES ONLY”
7.8
7.9
8.0                                                                                     TOTAL OF MY ACCOUNTABILITY                                $

                                                    PART C. - ANALYSIS OF PREDECESSOR OFFICERS’ ACCOUNTABILITY
9.2          RECEIVABLES - CHECK OVERDRAFTS                                                                                                       $
9.3          LOSSES OF FUNDS
9.4          OTHER ACCOUNTABILITY
10.0                                                                          TOTAL PREDECESSOR OFFICERS’ ACCOUNTABILITY                          $
11.0                                                   TOTAL DISBURSING OFFICE ACCOUNTABILITY (Same as line 5.00 above)




I certify that this is a true and correct statement of accountability for the period stated at the office referred to above.
NAME AND TELEPHONE NUMBER OF CONTACT                                                     SIGNATURE AND TITLE OF CERTIFIER                                         DATE

                                                                                                                                              .

      NSN 7540-00-634-4245                                                                (OVER)                           PREVIOUS EDITION NOT USABLE 1219-106




                                                                                        D-5
                                             Handout #4
                            SF 1219, Statement of Accountability – Back Side
             SECTION II. - SUMMARY BY SYMBOL OF CHECK AND DEPOSIT TRANSACTIONS WITH U.S. TREASURY
                             PART A. - CHECKS ISSUED AND ADJUSTMENTS FOR PRIOR PERIODS*
                                                 ADJUSTMENTS FOR PRIOR MONTHS’ ISSUES
                     AMOUNT OF CHECKS                             (+ or -)                           TOTAL CHECKS ISSUED 
CHECK SYMBOL         ISSUED THIS PERIOD       BY TFS FORMS 5206                    OTHER              (Column 2+/- 3 and +/- 4)
                                              ISSUE        AMOUNT           ISSUE        AMOUNT
                                          (Month and year)              (Month and year)
       (1)                   (2)                       (3)                           (4)                        (5)
                           TC 210                           TC 211                        TC 212




                                                          “FOR INSTRUCTIONAL PURPOSES ONLY”




        TOTALS‡
                     PART B - SUMMARY OF DEPOSITS PRESENTED OR MAILED TO BANK (Line 4.2)
                                               DEPOSITS PRESENTED OR MAILED TO BANK                    TOTAL DEPOSITS
                    DEPOSITS PRESENTED             IN PRIOR MONTHS BUT RECORDED                      PRESENTED OR MAILED
DEPOSIT SYMBOL          OR MAILED TO                    IN ACCOUNTS THIS MONTH                            TO BANK **
                      BANK THIS MONTH       MONTH PRESENTED OR                                          (Columns 2 + 4)
                                              MAILED TO BANK                AMOUNT
       (1)                   (2)                    (3)                        (4)                              (5)
                           TC 420                                            TC 420




        TOTALS‡
* The totals reported in these columns must be in agreement with the corresponding amounts reported on SF 1179.
 The total reported in this column must be in agreement with total shown on line 2.1 on the face of this statement.
‡ For use only if more than one (1) symbol is listed.
** The total reported in this column must be in agreement with total shown on line 4.2 on the face of this document.
                                                                                          STANDARD FORM 1219 (BACK)
                                                                                                 REVISED 4-82




                                                       D-6
                                            Handout #5

                         Standing Operating Procedures for
Cashing Personal Checks During Deployments (delete this handout…it is a waste of time)
In deployed environments, normally due to a lack of or limited ATM/ banking facilities (especially
during the beginning stages of a deployment), finance will cash checks for soldiers and other
authorized individuals in limited dollar amounts so soldiers can have some “spending/pocket”
money. All paying agents, cashiers, and cash control officers (CCOs) must read, understand, and
possess a file copy of any applicable finance disbursing and cashier policy messages for the
theater of operations. The following are general procedures for the cashier to follow when cashing
personal checks:
1. A customer/soldier arrives at the cashier cage or FMST area and asks to cash a check.
2. Ask the customer for his/her ID card, verifying that he/she is authorized to cash a check (as
applicable, in accordance with local/theater guidance).
3. Check the individual’s ID card against any bad check lists (if used). Make sure to use the
information on the ID card, not the information printed or written on the check. If the customer is on
a bad check list, do not cash the check. Politely inform the customer that you cannot cash the check
due to their status on a bad checklist. If the customer is not on a bad checklist, continue with the
transaction.
 4. Ensure that the check is not a two party check (a check written from one to another person).
These checks cannot be cashed. Personal checks must be written by the customer, on the
customer’s own account, payable to the order of the financial management unit or the U.S.
Treasury.
5. Determine if the check is a regular personal check (with a preprinted name) or a starter/counter
check. Starter/counter checks will not have any preprinted information (name, address, etc.) in
the top left portion of the check. Starter/counter checks will be cashed only IAW established
theater policy (as applicable).
6. If a check cashing tracking system is in use, verify that the person has not cashed any checks
previously for the week or month, as policy dictates. If the individual has already cashed a check
during the period, make sure that the total is not more than the limit for that type of check for the
period. Do not cash any checks that will put the customer over the period limit unless approved
by a designated authority (normally within the FM unit). Have the approver provide a signed
memo/note of explanation or have him/her initial the check. As applicable, ask the customer to fill
out the information on the trackable limit sheet and ensure that he/she fills it out correctly.
7. If the customer is a civilian, check that DD Form 2761 (Personal Check Cashing Agreement) is
on file. If not, have the customer fill out a DD Form 2761 before cashing any checks.
8. Ensure that the following information is clearly written on all negotiable instruments:
    a. Printed name.
    b. Rank/GS level/etc.
    c. Social Security number (verify this number with the ID card).
    d. Current unit of assignment..
    e. Complete mailing address.
    f. Unit phone number.
    g. Branch of Service (if not Army).




                                                 D-7
    h. Expiration term of service (ETS) (verified from ID Card) (as applicable). Do not cash any
checks for personnel whose term of service will expire within the timeframes established in
applicable theater guidance.
    i. Reserve or National Guard (as applicable).
9. If possible, ensure that the customer is not in the process of being chaptered from the service.
Do not cash any checks for customers in this situation!
10. If possible, ensure that the customer is not otherwise at risk, based on information from a
credible source. Do not cash any checks for customers who may pose a bad financial risk.
11. Stamp or print the word “cashier” in the top right part of the check and place your initials next
to the stamped or printed word.
12. If not already completed, stamp or print your FM unit designation in the “pay to the order of”
line.
13. Stamp or print the following in any free space in the bottom portion of the check: “I consent to
immediate collection from my pay the amount of this check plus bank charges if this check is
dishonored____”. Give the check back to the customer and have him or her initial this statement
in the blank space at the end of the statement. Ensure that the customer initials the statement.
14. Stamp or print the following on the back of the check- FOR CREDIT TO TREASURER OF
U.S., (name of account holder), DSSN XXXX, CITY, STATE ZIP.
15. Ensure that the customer legibly completes the applicable portions of DD Form 2664
(Currency Exchange Record).
  16. Once all of the above actions and items are properly completed, disburse the amount of the
 check in U.S. dollars and/or local currency (based on the applicable exchange rate) and return the
     customer’s ID card. Make sure to count the money three times before the customer takes
                                       possession of the funds.




                                                 D-8
                                             Handout #6

                             Standing Operating Procedures for
                      Foreign Currency Conversions and Reconversions
In deployed environments, FM units normally conduct conversion and reconversion transactions
with and between U.S. and foreign currency. Conversions are transactions that change U.S.
dollars into a foreign currency at a stated exchange rate. Reconversions are transactions that
change a foreign currency into U.S. dollars at a stated exchange rate. All paying agents, cashiers,
and cash control officers (CCOs) must read, understand, and possess a file copy of any
applicable finance disbursing and cashier policy messages for their theater of operations. General
procedures for conducting conversion and reconversion transactions are as follows:
1. Prior to conducting any conversion/reconversion transactions, ensure that you have the day’s
official conversion and reconversion exchange rates for your theater/area of operation. Ensure
that you know the correct procedures for obtaining the “official” daily rate for your area of
operations.
2. All exchanges are usually done in even dollar/foreign currency increments (this speeds
customer service operations and mitigates the possibly of losses of funds). Only a designed
official in the FM unit should grant exceptions to this procedure. Note: One technique to establish
conversion and reconversion increments is to develop and print a spreadsheet that contains
conversion/ reconversion amounts based on the chosen increment of exchange and that day’s
exchange rates. This spreadsheet may be posted in customer service areas and used by
cashiers to aid in conducting conversion and reconversion transactions.
3. When a customer arrives and asks to conduct a conversion/reconversion transaction, first ask
the customer for his/her ID card, verifying that he/she is authorized to conduct the transaction (as
applicable, in accordance with local/theater guidance).
4. Once the customer’s status is verified, count and verify (in front of the customer) the total of all
currencies that he/she has given you for the transaction. Confirm that this amount agrees with
what the customer counted and that it is the amount that the customer wants to exchange.
Always screen or spot-check money from customers for possible counterfeits.
5. For conversions (the customer gives you U.S. dollars and wants foreign currency), ensure that
the U.S. dollar amount is an even increment (as applicable). Take the U.S. dollar total and
multiply it by the official foreign currency conversion rate for that day. The result is the amount of
foreign currency you must disburse to the customer. Disburse the payment, ensuring that it is
counted three times before the customer takes possession of the funds. Fill out the applicable
portions of DD Form 2664 (Currency Exchange Record) and return the customer’s ID card.
6. For reconversions (the customer gives you foreign currency and wants U.S. dollars), ensure
that the foreign currency amount is an even increment (as applicable). Take the foreign currency
total and divide it by the official foreign currency reconversion rate for that day. The result is the
amount of U.S. dollars you must disburse to the customer. Disburse the payment, ensuring that it
is counted three times before the customer takes possession of the funds. Fill out the applicable
portions of DD Form 2664 and return the customer’s ID card.
7. Reconversions are normally conducted only for customers who are about to leave the area of
operations/redeploy. Soldiers and other authorized customers are strongly encouraged to spend
their foreign currency before departing, rather than reconverting it (at a normally higher—and
therefore disadvantageous—rate). Reconversion transactions should normally not exceed an
amount equal to two weeks of the customer’s pay and allowances (exceptions to this amount
should be approved by a designated FM unit official).
Note: All reconversions will be done IAW DoD 7000.14-R, Volume 5, paragraph 120304E.




                                                  D-9
                                         Handout #7
                         Instructions for Completing DD Form 1081

1. When completing DD Form 1081 to obtain advances of funds:

   a. Enter the FM Treasury account holder and agent/cashier/DO identification in the blocks
       provided.

   b. On line 1, under “BEGINNING BALANCE,” enter the current accountability of the agent,
       cashier, or DO.

   c. Enter the following information under the “INCREASE” column:

       (1) Lines 2 thru 4—Enter the amount of currency by type included in the advance. If
            foreign currency is advanced, enter the U.S. dollar amount in the column and show
            the amount of foreign currency and its exchange rate to the side.

       (2) Line 7—Enter the amount of U.S. Treasury checks and/or any other negotiable
            instruments in the advance. Enter the beginning and ending check numbers on the
            corresponding line (as appropriate).

       (3) Line 9—Enter the dollar amount of incorrect vouchers returned.

       (4) Lines 10 and 11—Enter items other than those described above that are included in
            the advance. Ensure that any such items are appropriate identified.

   d. Enter the total of the amounts entered on lines 1 thru 11 in the column under “BEGINNING
       BALANCE.” This total represents the balance in the agent, cashier, or DO account as a
       result of the advance. This balance also must be entered on line 1 in the ending balance
       column.

   e. The deputy or DO making the advance places an "X" in the box provided opposite the “ON
       ADVANCE” statement to indicate that the form is to account for an advance of funds to
       the agent, cashier, or DO. Complete the DATE and SIGNATURE blocks to authenticate
       the statement opposite the box checked.

   f. The agent, cashier, or DO verifies that the items received are in agreement with the
        amounts stated on the form. The agent, cashier, or DO then places an "X" in the box
        provided opposite the agent, cashier, or DO officer “ON ADVANCE” statement. The
        agent, cashier, or DO completes the DATE and SIGNATURE blocks to authenticate the
        statement and to certify that he/she understands the applicable instructions.

   g. The deputy or DO making the advance gives copy three to the agent, cashier, or DO, and
       retains the original and copy two. If the advance is to a paying agent, the agent, cashier,
       or DO also retains a copy of the agent orders with the original DD Form 1081.

2. When completing DD Form 1081 to process returns of funds—

   a. Enter the following information under the “DECREASE” column:

       (1) Lines 2 through 4—Enter the amount of currency included in the return. Use the same
            exchange rate for foreign currency as the one used in the advance. List the amount
            of foreign currency next to the dollar equivalent amount.




                                              D-10
      (2) Line 5—Enter the amount of collections made by the agent, cashier, or DO in the form
           of cash or negotiable instruments.

      (3) Line 6—N/A.

      (4) Line 7—Enter the amount of checks and/or negotiable instruments returned to the
           deputy or DO (for example, checks cashed, and U.S. Treasury checks previously
           advanced but not used).

      (5) Line 8—Enter the amount of vouchers paid by the agent, cashier, or DO.

      (6) Lines 10 and 11—Enter items other than those described above that are included in
           the return. Ensure that any such items are appropriately identified.

b. Enter the total shown on line one, minus the amounts in the “DECREASE” column, on line
    12 under the “ENDING BALANCE” column. This amount represents the ending balance
    in the agent, cashier, or DO account as a result of the return.

      (1) The agent, cashier, or DO places an "X" in the box provided opposite the “ON
           RETURN” statement and completes the DATE and SIGNATURE blocks.

      (2) The deputy verifies the amounts on the form, and if correct, places an "X" in the box
           opposite the ON RETURN statement and completes the DATE and SIGNATURE
           blocks.

(1)      The deputy gives the original form to the agent, cashier, or CCO, and keeps copy 2.
(2)      If the agent, cashier, or CCO has an ending balance, prepare a new DD Form 1081
         using the previous DD Form 1081’s ending balance as the beginning balance. Put the
         increases and decreases on the appropriate columns and then determine the new
         ending balance.




                                             D-11
Handout #8




   D-12
                                    DD Form 2664, Currency Exchange Record


                                                     1. DATE                 2. EXCHANGE RATE (Number of                 PAGE      OF
                                                                                Foreign Currency Unit s t o $1 U. S. )
   CURRENCY EX CHANGE RECORD
3. NAME OF DISBURSING OFFICER                        4. DSSN                 5. NAME OF AGENT OR CASHIER



6. TYPE OF CURRENCY OR COIN
a. FROM                     b. TO

         AMOUNT                       AMOUNT                   7. NAME OF PERSON FOR WHOM EXCHANGE IS MADE




DD FORM 2664, AUG 93                      REPLA CES DA FORM 4 1 5 1 , JA N 8 4 ; A ND                                           USA PPC V 1. 00
                                     A F FORM 1 1 2 8 , JUN 7 0 , WHICH A RE OBSOLETE.




                                                             D-13
Use DD Form
dated Feb
2002




              D-14
  Handout #9
SF 44 (7 Pages)




     D-15
       Formatted: Left




D-16
D-17
D-18
D-19
D-20
D-21
D-22
                              Handout #10
SF 1034, Public Voucher for Purchases and Services Other Than Personal




                                D-23

				
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