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					Transmittal Letter No. 624                                                            Volume I

To: Heads of Government Departments, Agencies, and Others Concerned
1. Purpose

    This transmittal letter releases revised I TFM 4-10000: Delegation of Disbursing Authority. This
chapter prescribes procedures and policies by which the Department of the Treasury, Financial
Management Service (FMS), delegates the authority to disburse public money to officers and
employees of other Federal agencies in accordance with 31 United States Code (U.S.C.) §3321(b). It
is consistent with FMS’ continuing oversight over agencies that are delegated disbursing authority.
This chapter also establishes review and reporting requirements and specifies certain responsibilities
and liabilities of such agencies.

  This chapter does not pertain to Federal agencies that are granted authority to disburse public
money by statute. See 31 U.S.C. §3321(c).

2. 	Page Changes
       Remove                                         Insert
       I TFM 4-10000 (T/L 591)                        I TFM 4-10000
3. 	Effective Date
   This chapter is effective immediately.
4. Inquiries
   Direct questions concerning this transmittal letter to:

               Office of the Chief Disbursing Officer 

               Financial Management Service          

               Department of the Treasury 

               Liberty Center Building, Room 343 

               401 14th Street, SW. 

               Washington, DC 20227           

               Telephone: 202-874-6790





Date: December 12, 2005                   Richard L. Gregg
                                           Commissioner
VOL I                                                                                                                  4-10000 




                                            Part 4—Chapter 10000

           DELEGATION OF DISBURSING AUTHORITY 

                    This chapter prescribes procedures and policies by which the
                    Department of the Treasury (Treasury), Financial Management Service
                    (FMS), delegates the authority to disburse public money to officers and
                    employees of other Federal agencies in accordance with 31 United
                    States Code (U.S.C.) §3321(b). It is consistent with FMS’ continuing
                    oversight over agencies that are delegated disbursing authority. This
                    chapter also establishes review and reporting requirements and
                    specifies certain responsibilities and liabilities of such agencies.

                    This chapter does not pertain to Federal agencies that are granted
                    authority to disburse public money by statute. See 31 U.S.C. §3321(c).



                                                  authority, in writing, to Treasury’s   retains sole decisionmaking authority to
Section 10010—Authority
                                                  Chief Disbursing Officer (CDO).        finalize amendments to the Delegated
                                                  The request must include adequate      Disbursing Authority Document.
     Title 31 U.S.C. Section 3321(b)              documentation that provides
provides that, for economy and                    assurance to Treasury that the
efficiency, the Secretary of the                  agency, if delegated disbursing
Treasury may delegate the authority to                                                   Section 10025—Authorities of
                                                  authority, will maintain effective     Treasury’s Chief Disbursing
disburse public money to officers and             internal controls and will comply
employees of other Federal agencies.                                                     Officer
                                                  with pertinent security guidelines.
                                                                                             When Treasury’s CDO delegates
                                                                                         disbursing authority to an agency in
Section 10015—Standards for                Section 10020—Delegated                       accordance with 31 U.S.C. §3321(b),
Delegating Disbursing Authority            Disbursing Authority Document                 the CDO:

   FMS delegates disbursing authority          In those limited cases when FMS, in          • Maintains oversight authority over
in limited cases for purposes of           its sole discretion, determines that an            the disbursing function as
“economy and efficiency,” consistent       agency has met the requirements to be              demonstrated, in part, by the terms
with the requirements of 31 U.S.C.         delegated disbursing authority, FMS                of this chapter. Consistent with
§3321(b). Thus, FMS approves an            executes a written Delegated Disbursing            this authority, the CDO retains the
executive agency’s request for             Authority Document. The Delegated                  authority to revoke an agency’s
delegated disbursing authority only if,    Disbursing Authority Document sets                 disbursing authority delegation.
among other things:                        forth specific terms, conditions, and            • Has the right to require that the
   • An agency requires a particular       limitations of the particular delegation.          agency’s operations be inspected
     level of service for disbursing          FMS has the authority to amend the              and     examined       to    ensure
     funds that FMS cannot provide;        specific terms of the Delegated                    compliance      with      delegated
                                           Disbursing Authority Document, as                  disbursing authority requirements.
   • The delegation would be more
                                           necessary and appropriate. Before                • Prescribes        and    approves
     efficient and cost effective to the
                                           FMS finalizes any amendment, it                    procedures for disbursing func-
     Federal Government and the
                                           provides advance notice to the agency,             tions such as I TFM Part 4 and
     public;
                                           in writing, setting forth the specific             the separate agency compliance
   AND                                     purpose and reasons for the proposed               self-certification    guide    at
                                           amendment. FMS gives the agency the                http://www.fms.treas.gov/tfm/
   • The requesting agency submits its     opportunity to submit comments on any
     request for delegated disbursing                                                         vol1/guide10v3_rev.pdf.
                                           proposed amendment. However, FMS


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4-10000                                                                                                                    VOL I


   •	 Requires agencies with delegated              reconciliation responsibilities to   operations to ensure compliance with
      disbursing authority to submit                decline final payment and/or         the following:
      immediately to the CDO any                    reclaim payment on certain
      irregularity in their accounts                improperly negotiated Treasury          •	 Requirements set out in any
      involving such disbursement                   checks or counterfeit checks. See,         applicable     Delegation      of
      activity.                                     generally, 31 CFR Part 240.                Disbursing Authority Document
                                                                                               executed in accordance with
                                                 In addition, an agency with                   Section 10020 of this chapter.
                                              delegated disbursing authority must
Section 10030—Responsibilities                comply with the following:                    •	 Pertinent statutory, regulatory, and
and Liabilities of an Agency With                                                              Treasury      Financial     Manual
Delegated Disbursing Authority                   •	 The mandates of Executive Order            requirements.
                                                    13224.
                                                                                            •	 The Federal Managers’ Financial
    An agency that is delegated                  •	 Applicable      Treasury    offset         Integrity Act of 1982 (FMFIA),
disbursing authority by the CDO under               guidelines established under the           Public Law 97-255 (31 U.S.C.
31 U.S.C. §3321(b) assumes significant              authority of 31 U.S.C. §3716(c).           §3512).
responsibilities and liabilities, including
but not limited to:                              •	 FMS      guidelines    concerning       •	 The     Federal     Financial
                                                    applicable requirements to include         Management Improvement Act of
   •	 Responsibilities and liabilities of a         a payee’s taxpayer identifying             1996 (FFMIA), 31 U.S.C. §3512,
      disbursing official and cashier as            number on payment vouchers in              note.
      set forth under 31 U.S.C. §§3322,             accordance with 31 U.S.C.
      3325, and 3528.                               §3325(d).                                Following such review, agencies
                                                                                         must submit a self-certification report
   •	 Full accountability and liability for      •	 All applicable electronic funds      to FMS stating whether or not they
      all disbursements issued under the            transfer system requirements,        comply with these requirements. FMS
      delegation. The agency must not               including those related to message   advises agencies of the due date of
      delegate the duties and functions             authentication and enhanced          these reports and provides them with
      related to the delegation to another          security, unless explicitly waived   the self-certification template to be
      party without consultation and                in writing by the CDO.               included in the report. To the extent
      prior written approval by the                                                      that an agency cannot certify that it
      CDO.                                       •	 All applicable regulations and       complies with a specific requirement,
                                                    payment,       accounting,    and    the report must document the agency’s
   •	 Reporting of all disbursements                reconciliation     policies   and    planned corrective action to achieve
      made under the delegation in the              procedures set forth by Treasury     compliance within an identified
      agency’s payment accounting                   and the Federal Reserve System.      timeframe.
      reports to FMS, using the
      appropriate agency accounting              The agency must practice effective          With regard to FMFIA, the self-
      codes, as authorized by FMS. As         security and internal control measures     certification form focuses solely on
      stated in Section 10025, the            as prescribed by FMS (in Treasury          FMFIA Section 2 reports (internal
      agency must submit immediately          Directive 71-10, etc.), the Government     controls) and Section 4 reports
      to the CDO any irregularity in          Accountability Office, and the Office      (financial management systems). See
      accounts involving disbursement         of Management and Budget (OMB).            31 U.S.C. §§3512(d)(2) and (d)(2)(B);
      activity. Furthermore, the agency                                                  see also OMB Circular Nos. A-123 and
      must resolve any irregularities or                                                 A-127 for further information on
      discrepancies associated with such      Section 10035—Oversight                    Section 2 and Section 4 requirements.
      reports.                                Requirements                               Specifically, an agency must self-
                                                                                         certify that its Section 2 and Section 4
   •	 Submission of check issuance data                                                  reports provide reasonable assurance
      in a timely and accurate manner to                                                 that the agency is in compliance with
                                              10035.10—Review and Self-
      FMS no later than the close of                                                     FMFIA Section 2 and Section 4
                                              Certification Reporting
      business of the week in which the                                                  requirements. To the extent that an
                                              Requirements
      issue dates occur and at month’s                                                   agency self-certifies “noncompliance”
      end. See I TFM, Part 4, Chapter                                                    or “qualified assurance” with Section 2
      6000, subsection 6025.10. FMS              Every 2 years, the agency with
                                              delegated disbursing authority must        and Section 4 requirements, it must
      must receive this information                                                      identify all material weaknesses and its
      within the required timeframe to        conduct a review of its disbursing
                                                                                         corrective action plan to achieve
      carry out properly its check


December 2005                                                   2                                                        T/L 624
VOL I                                                                                                                   4-10000 



compliance     within    an    identified    intended to evaluate, among other             •	 The risk assessment conducted
timeframe.                                   things, agency-identified deficiencies           under     subsection  10035.20
                                             or material weaknesses in financial              warrants such action;
    With regard to FFMIA, the self-          management systems, operations, and
certification form focuses solely on         accounting      and      reconciliation       •	 The agency fails to respond
FFMIA, Section 803(a), which requires        procedures that may adversely affect             adequately to the terms of the
each agency to “implement and                the agency’s disbursing performance.             written notice from the CDO
maintain financial management systems        The agency develops, and submits to              referenced     in    subsection
that comply substantially with Federal       FMS, a plan for conducting the risk              10035.30;
financial      management       systems      assessment. The plan must identify the
requirements.” Specifically, the agency                                                    •	 The agency fails to comply with
                                             party who will conduct the assessment.           any of the responsibilities and
must certify that it complies with           Risk assessments are conducted in
FFMIA, Section 803(a) requirements, if                                                        liabilities of an agency with
                                             accordance with FMS’ risk assessment             delegated disbursing authority,
applicable, and that this determination      guide or another guide that meets
has been verified by independent audit,                                                       including, but not limited to,
                                             Treasury’s standards and is approved             those      responsibilities and
as referenced under FFMIA, Section           by FMS. At FMS’ discretion, agencies
803(b). See 31 U.S.C. §3512, note. To                                                         liabilities listed under Section
                                             must provide FMS with a copy of their            10030;
the extent that an agency self-certifies     FMFIA Section 2 and Section 4
“noncompliance” with Section 803(a), it      reports, FFMIA Section 803(a) reports,        OR
must identify “resources, remedies, and      and other audit information as part of
intermediate target dates necessary to                                                     •	 The agency fails to comply with
                                             any risk assessment.
bring      the    agency’s      financial                                                     the terms of the Delegated
management systems into substantial                                                           Disbursing Authority Document
compliance” with Section 803(a). See         10035.30—Failure To Submit                       executed under the authority of
FFMIA, Section 803(c)(3) (discussing         Required Self-Certification                      Section 10020.
the requirement for a remediation plan       Reports and Information
                                             Required by a Risk Assessment                  In addition, the CDO periodically
to achieve compliance).
                                                                                        reviews whether the agency continues
    The self-certification form includes a                                              to meet the standards for delegation of
                                                 If an agency does not comply with
checklist and appropriate space for the                                                 disbursing authority as set forth under
                                             the review and self-certification
agency to provide information on                                                        31 U.S.C. §3321(b) and Section 10015.
                                             reporting requirements provided under
corrective or remediation plans, if                                                     The CDO may terminate an agency’s
                                             subsection 10035.10, or does not
necessary. FMS provides guidance to                                                     delegation of disbursing authority
                                             respond to requests for information in
agencies on format and procedures for                                                   when FMS determines, in its sole
                                             connection with a risk assessment as
submitting the self-certification report                                                discretion, that the agency no longer
                                             provided under subsection 10035.20,
in the separate agency compliance                                                       meets such standards.
                                             Treasury’s CDO notifies the agency, in
self-certification            guide     at
                                             writing, of a final date certain for           The CDO notifies the agency, in
http://www.fms.treas.gov/tfm/vol1/guide
                                             complying with such requirements.          writing, that its delegation of disbursing
10v3_rev.pdf.
                                             The CDO reserves the right to revoke       authority is being terminated. Before
                                             the agency’s disbursing authority          any termination action is taken, FMS
10035.20—Risk Assessment                     delegation in accordance with Section      and the agency work together to
                                             10040, if the agency fails to respond      resolve all outstanding questions and
    When an agency’s self-certification      adequately to the terms of this written    issues. If this effort is unsuccessful,
report indicates the agency is not in        notice by the indicated final date         FMS consults with the agency to
compliance with one or more stated           certain.                                   determine an appropriate effective
requirements, FMS, in its sole                                                          date for termination and the
discretion, may determine it is                                                         resumption of Treasury disbursement
necessary that a risk assessment of the      Section 10040—Termination of               services. In determining the effective
agency’s disbursing system(s) be             Delegated Disbursing Authority             termination date, FMS and the agency
conducted. In making such a                                                             consider the mission of the agency and
determination, FMS may consider such                                                    the needs of its payees. If FMS and the
                                                 The CDO may terminate an               agency cannot reach a mutual decision
factors as the status and utility of the
                                             agency’s delegation of disbursing          on the effective date for termination,
corrective    and     remedial     plans
                                             authority if FMS determines, in its sole   FMS determines the effective date and
identified by the agency to achieve
                                             discretion, that:                          notifies the agency.
compliance. The risk assessment is




T/L 624                                                         3                                             December 2005
4-10000                                                                VOL I



                                        Contacts
     Direct inquiries concerning this chapter and submit required reports
  and self-certification documents to:
            Office of the Chief Disbursing Officer 

            Financial Management Service 

            Department of the Treasury 

            Liberty Center Building, Room 343 

            401 14th Street, SW. 

            Washington, D.C. 20227 

            Telephone: 202-874-6790 





December 2005                                    4                   T/L 624

				
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