DOE O 2200.6A Chg 2, Financial Accounting

DOE 2200.6A 1-7-93a THIS PAGE HUST BE KEPT WITH ME 2200.6A, FINANCIAL ACCOUNTING. DOE 2200.6A, FINANCIAL ACCOUNTING, HAS REVISED DOE 2200.6 TO REFLECT ORGANIZATIONAL TITLE, ROUTING SYMBOL, AND OTHER EDITORIAL REVISIONS REQUIRED BY SEN-6. IN ADDITION: (1) CHAPTER III, PARAGRAPH 5b(6) HAS BEEN REVISED TO REFLECT THE NEW REFERENCE OF THE EHERGENCY UNEMPLOYMENT COMPENSATION ACT (IF 1991 WICH REPLACES THE FANILY SUPPORT ACT OF 1988; (2) CHAPTER VII, PARAGRAPH 2i (l)(b) HAS BEEN REVISED TO INCLUDE GUIDANCE FOR THE DISCLOSURE OF LOSS CONTINGENCY ACCRUALS BASED ON MATERIALITY AND POSSIBLE IMPACT ON THE AGENCY’S FINANCIAL STATEMENTS AND OPERATIONS IN ACCORDANCE WITH TITLE II, GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL FOR GUIDANCE OF FEDERAL AGENCIES; AND (3) CHAPTER IX, HAS BEEN REVISED TO REFLECT THE RESCINDING OF PREVIOUS PARAGRAPH 2g(2)(d), WHICH PROVIDED THAT A CUSTONER’S CASH DEPOSITED INTO AN ESCROH ACCOUNT AT A FINANCIAL INSTITUTION CONSTITUTED A VALID BUDGETARY RESOURCE. PARAGRAPH 5b HAS BEEN REVISED TO INCLUDE A REFERENCE TO DOE 2200.5B FOR DETAILED POLICY AND GUIDANCE FOR DETERMINING AVAILABILITY OF APPROPRIATIONS AND FUND BALANCES. PARAGRAPH 7b HAS BEEN REVISED TO INDICATE THAT THE SECRETARY HAS DELEGATED AUTHORITY, ON A NONEXCLUSIVE BASIS, TO THE CFO TO ACCEPT PUBLIC DONATIONS. DUE TO THE NUMBER OF PAGES AFFECTED BY THE REVISIONS, THE ORDER HAS BEEN ISSUED AS A REVISION. U.S. Department of Energy e Washington, D.C. ORDER I DOE 2200.6A 1-7-93 SUBJECT: FINANCIAL ACCOUNTING 1. 2. 3. 5. 6. 7. RJRPOSE. To provide Department of Energy (DOE) policy and general procedures for the financial management of cash, advances. receivables, inventories. and Investment of funds; accountability for plant and capital equipment; current and long-term liabilities; and accounting for equity, reimbursable work, revenues, collections, and expenses. wFILATIQff. DOE 2200.6, FINANCIAL ACCOUNTING, of 10-24-88. X.QK. The provisionsof this Order apply to all Departmental elements and integrated contractors performing work for the Departmental provided bylaw and/or contract andas implementedby the appropriate contracting officer. ~. The Bonneville Power Administrationis governed by the provisions of the Government Corporation Control Act and, as such, operates in accordance with generally accepted accounting principles issued by the Financial Accounting Standards Board. In following the generally accepted accounting principl esand meeting legislative requirements, the Bonneville Power Administration will, from time to time, deviate from the provisions of this Order. ~. DOE 2200.4, ACCOUNTING OVERVIEW, Attachment, “References,” provides a consolidated listing of authoritative reference sources for all subject matter contained in the accounting directives (DOE 2200 series). (lIl. To ensure that all assets, liabilities, equity. revenue. and expense accounts are properly maintained and are consistent with public law, the Office of Management and Budget, the Department of the Treasury, and the General Accounting Office. -TIONS. DOE 2200.4, Attachment. “Definitions,” provides a consolidated glossary of financial terms used in the accounting directives. In some instances a term may be defined within the textof an Order where its useis limited to the immediate text. I DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer DOE 2200.6A 1-7-93

8. ~IBIm. DOE 2200.4, Chapter III, ”Responslbilitles,” contains the ● responsibilities for accounting directives. In some instances. responsibil- itiesmay be contained within the text ofan Order where their useis limitedto the immediate text. BY ORDER OF THE SECRETARY OF ENERGY: @ DOLORES L. ROZZI A*t “ Director of Administration and Management DOE 2200.6A 1-7-93 RI -CASH 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● “ ● ● “ Purpose . . . . . . . . . . . . . . . . . . . . . . ● . ● . ● “ ● “ ● “ ● “ ● K Background . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● ● ● ● ● ● ● c. Applicability . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● ● ● d. Requirements . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● ● e. Review and Monitoring ofCash Management . . . . . . . . . . . . . . . 2. CollectlonsandDeposits . . . . . . . . . . . . . . . . ... ... =.*oo a. Collection Mechanisms . . . . . . . . . . . . . . . . . .=.....=. (1) Electronic Funds Transfers . . . . . . . . . . . . . . . . . ● ● . (2) Lockboxes .. ... ... ... O...O ... O= OOOOOOOOO (3) Deposits with Financial Institutions . . . . . . . . . . . . . . (4) CreditCards . ...........==.” ... =.== =”=*o= b. Electronic Funds Transfer Collections . . . . . . . . . . . . . . . . . c. Federal Automated Lockbox Services . . . . . . . . . . . . . . . . . . . (1) General . . . . . . . . . . . . . . . . . .......=..=.=== (2) TypesofLockboxes ... ... ~...=o. . . .= . . . . ..*o (3) Implementation . ..........***** ... ... ==*oo d. Department of the TreasurY General Account . . . . . . . . . . . . . . e. Preparation ofDeposits . . . . . . . . ........= .. ..=... (1) General . . . . . . . . . . . . . . . . .. ... ..000 =oooo= a (2) Examination of Remittances . . . . . . . . . . . . . . . . . . . . (3) Preparing Checks for Deposft . . . . . . . . . . . . . . . . . . . (4) Deposits with a Federal Reserve Bank or Branch . . . . . . . . . (5) Deposits with Commercial Financial Institutions . . . . . . . (6) Processing Checks PaYable in Foreign Currency . . . . . . . . . (7) Uncollectible Items+ebit Voucher . . . . . . . . . . . . . . . . f. Payroll Deductions . . . . . . . . . . . . . . . . . . . ● = .= ● “ ● = ● 9. Reporting and Reconciling Collections and Deposits . . . . . . . . . (1) LargeDeposits . . . . . . . .. ... . .=.=000000 ● . . .= (2) StatementofTransactions . ..........====. . . . . . (3) Reconciliation of Receipt Account Ledgers . . . . . . . . . . . 3. Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . c ● ● ● ● ● ● ● ● Introduction . . . . . . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● ;: Methods ofMaking Disbursements . . . . . . . . . . . . . . . . . . . . . (1) Department of the TreaWrY Disbursement and General Services Administration Forms . . . . . . . . . . . . . . . . . . (2) Department of the Treasury Payments on Standard Form 1166 OCR, “Voucher and Schedule of Payments” . . . . . . . . . . . . . (3) Electronic Funds Transfer PaYments ... ... ... ..= o.= c. Reporting and Reconci 1 ing Disbursements with the Department of the Treasury . . . . . . . . . . . . . . . . . . ● . . . ● ● ● . ~ “ “ “ ● ● (1) Reportin9 ... ... ... .. .00=0 ● ... CO OOOOOOOO (2) Reconciling ... ... ..*o. =cooo ... O. O . OQOOOQ d. Intragovernmental Billin!i! and Collection Systems . . . . . . . . . . (1) Online Payment and Collection SYstem . . . . . . . . . . . . . . (2) Simplified Intra90vernmental Billing and Collection SYstem (3) Standard FOrm1080. ”VOucher for Transfers Between

Appropriations andlor Funds” . . . . . . . . . . . . . ● “ “ ● ● “ I-1 I-1 I-1 I-1 I-1 I-2 I-2 I-2 I-2 I-2 I-3 I-3 I-3 I-4 I-4 I-4 I-4 I-5 I-7 I-7 I-7 I-8 I-8 I-8 I-8 I - l o I - l o 1-10 1-10 1-10 1-10 1-11 1-11 1-11 1-11 1-12 1-16 1-20 1-20 1-21 1-21 1-21 I-22 I-22 DOE 2200.6A 1-7-93 (4) Standard Form 1081. “Voucher and Schedule of Withdrawals andCredft” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Reconcflfatfon to the Department of theTreasury . . . . . . . e. Llmfted Payabillty and Clafmabflfty . . . . . . . . . . . . . . . . . . (1) Payabil ity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Claimability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reclamation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Llmlted Payability Cancellation . . . . . . . . . . . . . . . . . (5) Reversals of Lfmfted Payabilfty Cancellations . . . . . . . . . (6) Accounting for Checks Canceled Under Title XProvfsfons . . . (7) Copyand RecordStorageCosts . . . . . . . . . . . . . . . . . . . (8) Recertfffcatlon of Payment . . . . . . . . . . . . . . . . . . . . 4. Contract Financing Payments . . . . . . . . . . . . . . . . . . . . . . . . . . Deffnitfon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Due Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nonrecurring Contract Financing Requests . . . . . . . . . . . . . . . ;: Proper Contract Ffnancfng Request . . . . . . . . . . . . . . . . . . . e. Annotation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f. Interest Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Payments Under Ffnancfal Assistance Instruments . . . . . . . . . . . . . General :: Not Subje~~~o~~e”&dm~~ ;a~~e;~~c~ ; : : : : : : : : : : : : : : : : : 6. Review and Certfficatfon of Invof ces, Vouchers, and Cl afms Introduction . . . . . . . . . . . . . . . . . . . . . , . . . : : : : : : : ;: Terms . . . . . . . . . . . . . . . . . . . ....O. .0 . . . . . . ..O (1) Invofces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) InvoicePayments . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Requfred Payment Documentation . . . . . . . . . . . . . . . . . . . . . (1) Contract . . . . . . . . . . . . . . . . .. ... ... ..O.... (2) Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) RecefvingReport . . . . . . . . . . . . . . . . . . . . . . . . . . e. Processing Invofces for Payment . . . . . . . . . . . . . . . . . . . . . (1) Actions Required Prior copayment . . . . . . . . . . . . . . . . (2) Prepayment Examinatfonby Statistical Samplfng . . . . . . . . (3) Request for Progress Payments Under Construction Contracts . f. TfmfngofPayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) PaymentDueDate . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) RecefptofInvoice . . . . . . . . . . . . . . . . . . . . . . . . . (3) Recefpt and Acceptance of Property and Servfces . . . . . . . . (4) PaymentfnAdvanceofRecefpt . . . . . . . . . . . . . . . . . . . 9= Dfscounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) WhenToTakeDfscounts . . . . . . . . . . . . . . . . . . . . . . . (2) Calculation of Dfscount Perfod . . . . . . . . . . . . . . . . . . (3) Determination of Cost-Effectiveness . . . . . . . . . . . . . . (4) Accounting for Lost Discounts . . . . . . . . . . . . . . . . . .

h. Penaltfes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Payment of Interest Penalties (2) Payment of Interest Penalties U;d&”C~;s~;u~~i&”C&t~~c~~ : (3) Payment of Interest Penalties UnderArchftect Engineer Contracts (4) Additional ~n;e;&~b&;{t;&” : : : : : : : : : : : : : : : : : : (5) Payments Not Subject to Penalties . . . . . . . . . . . . . . . . I-23 ● I-23 I-23 I-24 I-24 I-24 I-24 I-25 I-25 I-26 I-26 I-26 I-26 I-26 I-26 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-28 I-28 ● I-28 1-30 1-30 1-30 1-31 1-31 1-31 I-32 I-32 I-33 I-33 I-34 I-35 I-35 I-36 I-36 I-36 I-36 I-37 I-37 I-37 I-39 1-41 1-41 1-41 ● i i DOE 2200.6A 1-7-93 i. Departmental Qual~ty Control Program . . . . . . . . . . . . . . . . . I-42 (1) Standards I-42 (2) Procedures {o; ;e&ri;e;;ai tiuiif~j ~o;;r~l” ;r;g;;m” : : : : : I-43 J. Prompt Payment Report . . . . . . . . . . . . . . . . . . . . . . . . . . . I-44 k. Offsets Against Debtors I-44 (1) General . . . . . . . : : : : : : : : : : : ~ : : : : : ~ : : : : : : : I-44 (2) Withholding by Other Agencies on Behalf of DOE . . . . . . . . . I-44 (3) Offsets Against Employees . . 6 . . . . . . . . . . . . . . . . . . I-44 (4) Davis-Bacon Act and Contract Work Hours and Safety Standards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-44 7. LettersofCredit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 ;: Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 c. Letter ofCreditMethods . . . . . . . . . . . . . . . . . . . . . . . . . I-46 (1) Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-46 (2) CashManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . I-47 (3) Letters of Credit-Treasury Financial Communications System . . . . . . . . . . . . . . . . . . . . . . . I-48 (4) Letter of Credit-Federal Reserve Bank System I-52 (5) Preparation and Distribution of Forms . . . . . : : : : : : : : : I-58 (6) Closeout of aLetter of Credit . . . . . . . . . . . . . . . . . . I-58 (7) Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . I-59 8. Imprest Funds I-59 Introducti&” : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : I-59 K Authorization and Designation . . . . . . . . . . . . . . . . . . . . . . I-GO Increasing or Decreasing Authorized Balances . . . . . . . . . . . . . 1-60 ;: Securing and Disbursing Cash 1-61 (1) Replenishment of Principa”l ”A~v\;c~” :~:::::::::::~ : 1-61 (2) Managing Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-61 e. Safekeeping Facilities for Cash . . . . . . . . . . . . . . . . . . . . . I-62 f. Responsibi lities for Cashiers* Funds . . . . . . . . . . . . . . . . . I-62 (1) Personal Liability . . . . . . . . . . . . . . . . . . . . . . . . . I-62 (2) Duration of Liability I-62 (3) Responsibilities . ..::::::::::::: :::::::::: I-62 9. Transfer of Cash Between Cashl ers and Between Employees and Cashiers I-63 (1) Chang~; {n ”P;{n;i~;l ”C~~h\&~ “::::::::::::::: ::: I-63 (2) Transfer of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . I-64 (3) Advances to Alternates. . . . . . . . . . . . . . . . . . . . . . . I-64 (4) Advances for Subfunds . . . . . . . . . . . . . . . . . . . . . . . I-64 (5) Advances to Employees ● . . 0 . . 0 0 . I-64

h. Purchases, Hi scel 1 aneous Cask ;a~;e;&: &p’o; ~w;;d;, and Advances I-64 1. Accountabi lity Reports and Veriflcati on of Funds . . . . . . . . . . I-65 (1) Accountabi lity Reports . . . . . . . . . . . . . . . . . . . . . . I-65 (2) Evaluation of Accountabil ity Reports . . . . . . . . . . . . . . I-65 (3) Verifications ... ... ... ... .O. . . . . . . . . . . . . . 1-66 (4) Reporting Irregul arities and Missing or Lost Funds . . . . . . I-66 9. Special Deposit Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-66 Attachment I-l-Annual Certification Document . . . . . . . . . I-67 Attachment I-2+etermination of Cost-Effective Discounts. . I-73 Attachment I-3-Interest Penal tyAssessment Memorandum . . . I-75 Attachment I-4-Determination of Interest Penalty on a Proper Invoice Paid Late . . . . . . . . . . . . . . . . . . . . . . I-77 i i i DOE 2200.6A 1-7-93 Attachment I-5-Determination of Improper Discount Has Been Taken Attachment I-6-Determination of Interest Penalty Whenan . I-79 I;~e&~~~n;l;~&”a~ “ “ “ Improper Invoice Returned Late to Vendor . . . . . . . . . . . . Attachment I-7-Schedule of Financial Institution Processing Charges . . . . . . . . . . . . . . . . . . . . . . . . ● Attachment I-8-Calculation of Time Account Balance Required . . . . . . . . . . . . . . . . . . . . . . . . . . ● . . . . Attachment I-9-Sample Solicitation Letter . . . . . . . . . . . Attachment I-lO-Technical Representations and Certifications Attachment I-11-~p;;i;i~c~o’uAt”A;~e~~e~~ {o;&;;t~~~e” “ Checks-Paid Method of Letter-of-Credit Financing . . . . . . . Attachment I-12-Financial Institution’s Information onthe Checks-Paid LetterofCredit . . . . . . . . . . . . . . . . . . . Attachment I-13-Determining the Sample Size for Quality Control Reviews . . . . . . . . . . . . . . . . . . . . . . Attachment I-14-Checklist for Performing Quality Control Reviews . . . . . . . . . . . . . . . . . . . . . . PTERII -ADVANCES. PREPA.ULFXPFNSFS. ANDoTHERMs~TS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Advances (2) Prepayment’s”::::::: ::::::::::::::: ::::::: (3) Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Collateral Funds . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Advances . . . . . . ● . a. Advance;;;&i&~;d&ai ~~e~;i;~ : : : ; : ~ : : : ~ : . . . . . . . . (1) AdvancePaymentMethods . . . . . . . . . . . . . . . . . . . . . . (2) Monitoring and Control~in9 Advances . . . . . . . . . . . . . . . b. Advances to Contractors and Financial Assistance Recipients . . . (1) Amounts ofAdvances. . . . . . . . . . . . . . . . . . . . . . . . . (2) AdvancePaymentMethods . . . . . . . . . . . . . . . . . . . . . . (3) Monitoring and Controlling Advances . . . . . . . . . . . . . . . c. Advances toEmployees . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Procedures . . . . . . . . . . . . . . . . ..*. ..000000oo (2) Accounting forAdvances . . . . . . . . . . . . . . . . . . . . . . 3. Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . ...... ● * .. ● Prepayments . . . . . . . . . . . . . . . . . . . . . . . ● . ● ● . . . . . s ;: Suspense Debits . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ●

c. Accountingfor Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . 4. Deposits . . . . . . . . . . . . . . 5. AcquiredColi&~ai “ : : : : : : : : : : : : : : : : . . . . . . . . . . . . . . a. InsuranceCollateral Funds . . . . . . . . . . . . . . . . . . . . . . . b. Employee Benefit Funds . . . . . . . . . . . . . . . . . . . . . . ● . . ● Annuity Funds . . . . . . . . . . . . . . . . . . . . . ● . . ● ● ● ● ● ● ● “ :: Accumulated Allowance for Purchase of Annuities . . . . . . . . . . . Attachment II-l-Thirty-Day Delinquency Notice . . . . . . . . Attachment 11-2-Sixty-Day Delinquency Notice . . . . . . . . . 1-81 I-83 I-85 I-87 I-89 I-93 I-99 1-105 1-107 11-1 II-1 11-1 II-1 11-1 II-2 II-2 II-2 II-2 II-2 II-2 II-3 II-3 II-3 11-4 II-5 II-6 11-6 II-7 II-7 II-7 II-7 II-7 II-7 II-8 II-8 II-8 II-8 II-8 II-9 11-11 iv DOE 2200.6A 1-7-93 LWTFR III - RUIYAEUS 1. Introduction . . . . Purpose . . . . :: Background . . Appl 1 cabil ity :: Policy . . ● . ● 2. Recording . . . . . . a. Timeliness . . ● . o . . e . . . . e * O . . . e * . . * * * * * * * * * * * ,.. O . . . . . .O. . . O . . . 0 0 . . . * * * * * * * * . . . . 0 . . . 0 . . . . . 0 . . 00 . . . ...===.== . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. General Ledger and Subsidiary Records . . . . . . . . . . . . . . . . . Appropr~ation or Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Partial Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f. Effective Management and Internal Control 9. Debts Originating Under Acquisition or Finan”ciai “ “ “ “ “ “ “ “ “ “ “ Assistance Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Debt Determination . . . . . . . . . . . . . . . . . . . . . . . . . (2) Recording (3) Demand for P~y~~n\” ::: ~::: :: ~:::::::: ::::::: (4) Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h. Foreign Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Receivables That Prepayable inlJ. S. Dollars . . . . . . . . . . (2) Receivables That Are Payable in Forei9n Currency . . . . . . . e i. Long -Term Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Bi 11 i ng . . a. General” : : : : : : : : : ; : : : : : : : : : : : ~ : : : : : : : 1 : : : . . (1) Initial ”and Subsequent Demands for payment . . . . . . . . . . . (2) Amounts Due from Other Federal A9encies . . . . . . . . . . . . . b. Types of Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Actual Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Estimated Value . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Timeliness of Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . d. Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Basis and Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Right To Review . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Payment Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Aging . . . . . . Aging S;h;~uie” : : : : : ; : : : : : : : : : : : : : 1 : : : ; : . . . . . . ;: System Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . Department of the Treasury Reporting Requirements . . . . . . . . . . :: DOE Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . 5. Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Standards for Administrative Collection of Claims . . . . . . . . . . (1) Demand for Payment . . . . . . . . . . . . . . . . . . . . . . . . . (2) Personal Interview with the Debtor. . . . . . . . . . . . . . . . (3) Claims Due from Employees . . . . . . . . . . . . . . . . . . . . . (4) Administrative Review of the Debt . . . . . . . . . . . . . . . . (5) Administrative Of fset Under Title 31. Section 3716, Of the II I-1 II 1-1 II I-1 II I-1 II I-1 II I-2 11 I-2 II I-2 II I-3 II I-3 II I-3 11 I-4 II I-4 II I-4 II I-4 11 I-4 II I-5 II I-6 11 I-6 II I-6 II I-7 II I-7 11 I-7 11 I-7 11 I-7 II I-8 II I-8 II I-8 II I-8 II I-8 11 I-8 II I-8 11 I-8 II I-9 II I-9 II 1-10 II 1-10 111-10 II 1-10 111-10 II 1-11 II 1-11 II 1-15 II 1-15 II 1-15 . - . Q United -States Code . . . . . . . . . .: . . . . . . . . . . . . . . III-17 (6) Federal Tax Refund Of fset Program . . . . . . . . . . . . . . . . 111-21 (7) Useof Credit Reportin9A9encies (8) Use of CollectIon Agenctes . . . . 0 0 . 0 0 . . . 0 0 0 0 . II I-25“a” “ ***************** II I-28 v DOE 2200.6A 1-7-93 6. 7. c. d. e. All :: (9) Use of and Reporting tothe Internal Revenue Service . (10) Suspension or Revocation of License or Eligibility . . (11) Liquidation of Collateral . . . . . . . . . . (12) Collection in Installments . . . . . . . . . : : : : : : : (13) Interest. Administrative Chargeso and Penalties . . . Standards for Compromise of claims . . . . . . . . . . . . . . . (1) Factors for Consideration in Compromising aClaim. . . (2) InstallmentPayments. . .. ... o.oeeoo, ee .OO (3) Joint and Several Liability . . . . . . . . . . . . . . (4) Further Review of Compromise Offers . . . . . . . . . : : (5) Restrictions .....,. .Oeooeoceo. o.ee . . . Standards for Suspending or Terminating Collection Action . (1) Suspension of Collection Activity . . . . . . . . . . . . (2) Termination of Collection Activity . . . . . . . . . . . (3) Transfer of Claims Referral of Claims to the tie~~r~~e~t”o} ~&~{c~b~~h6 “ “ “ “ General Accounting Office for Review or Litigation . . . . . (1) Determination of Referral Point . . . . . . . . . . (2) Timing of Referrals for Litigation . . . . . . . . . : : : (3) Subsequent Debtor Contact . . . . . . . . (4) Claims Referral Methods . . . . . . , . . : ~ : ~ : ~ : : : (5) Preservation of Evidence . . . . . . . . , . . . . . . . . (6) FOllOwup .. ... ... eooooe, o .0 owancefor Uncollectibl e Receivables . . . . . : 1 : : : 1 : ~ : General Estimatio”n~~~h~d~ “ : : ~ : : : : : : : : : : : ~ : : : : : : : : : (1) Specific Identification Method . . . . . . (2) General Allowance Method . . . . . , . . . : : : : : : : : collectible Receivables . . . . , . , . . . . . . . . . . . . . . . . General . . . . . . . . . . . . Authority . . . . . . . . . . . ~ ~ ~ ~ ~ ; ~ ~ ~ ~ ~ ~ ~ ~ ~ “ “ “ “ Timeliness . . . . . . . . . . . . . . . . . . . . . . . . . : : : : Documentation . . . . . . . . . . . . . . . . . , . . . . . . , . . Writeoff Reportofl#~{t~e~~O~~ ~ek~i~~bie~” : : : : : : : : : : : : : : : Reinstatements and Collections . . . . . . . . . . . . . . . . . Attachment III-l-Format for promissory Note Containing Agreement for Judgment . . . . . . . . . . . . . . . , . . . 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . Purpose . . . . . . . . . . . . . . . . , . . . . . . .

& Applicability . . . . . . . . . . . . . . . . . . . . c. Exceptions . . . . . . . . . . . . . . . . . . . . . . Requirements . . . . . . . . . . . . . . . . . . . . . . . . :: Investment Procedures . . . . . . . . . . . . . . . . . . General . . . . . . . . . . . . . . . . . . . . . . :: Investment Procedures with the Department of~h~ (1) Responsibility for Selection of Securities (2) Investments .. .eo. o.e. e..OOO . . (3) Redemptions .. ... .e. oeeoeee . (4) Confirmation Letters . . . . . . . . . . . : : . . . . ...0 . . . 0 . 0 . . . . . . . . . . . . . . . . . . ● 0 . . . . . . . . . 0 . 0 . . . . . . . . . . . 0 . . . . . . . . . . . . 0 . . . . 0 . . . . . . . . . . . . . . * O . . . . . . . . ● . . . . . 0 . ● . . . ● . . . . 0 0 . .0.. . . 0 . . 0 . . ● . . . ..0. .0.. ● . . , . 0 . . . . . . . . . . . . . . . . . . ● . . 0 . . ● . . , 0 . . . . . . . Treasury . . . . . . . . . . ● ● ✎ ✎ ✎ ✎ ✎ . . . . . . . . . . . . . . . . .*.*. . . . . . .00.. . . . . . . . . . . . . . . . . . . . . . 0 . . 0 . . . . . . . . . . III-29 III-29 111-30 111-30 III-32 III-35 III-35 III-37 III-37 III-37 111-37 III-37 III-38 111-40 111-41 111-41 III-42 III-44 III-44 III-44 III-45 III-45 III-46 III-46 III-46 III-46 III-46 111-47 III-47 III-47 III-47 III-48 III-48 III-48 III-48 III-49 Iv-1 IV-1 Iv-1 IV-1 IV-1 IV-2 Iv-2 IV-3 IV-3 IV-4 IV-4 IV-5 vi DOE 2200.6A 1-7-93 (5) Portfolio Management Practices . . . . . . . . . . . . . . . . . . IV-5 4. Recording Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-5 Acquisition of Investments . . . . . . . . . . . . . . . . . . . . . . . IV-5 ;: Interest Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-5 co Amortization of Premiums and Discounts . . . . . . . . . . . . . . . . IV-5 d. Redemption of Investments . . . . . . . . . . . . . . . . . . . . . . . . IV-6 5. Department of the Treasury Reporting Requirements . . . . . . . . . . . . IV-6 PTFR V . IN~ (Reserved ) 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 K ;: e. f. 9. h. i. 2. Real a. b. ;: e. f. 9. h. ;: !/: Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pol i Cy Capital iz”a~ii; &i;e;~a” : : : : : : : : : : : : : : : : : : : : : : : : : Property Record Unit Concept . . . . . . . . . . . . . . . . . . . . . . Guidelines for Distinguishing PI ant and Capital Equipment Expenditures from Operating Expenditures . . . . . . . . . . . . . . . Accounting for Maintenance. Repairs, Betterments, and Replacements . . . . . . . . . . . . . . . . . . . . . . (1) Repair (2) Maintena;c~” ::::::: :::::::::::::: :::::::: (3) preventive Maintenance . 0 . . . . . . . . . . . . . . . . . . . . (4) Betterments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Plant and Equipment Changes . . . . . . . . . . . . . . . . . . . . . . . (1) Construction Work in Progress (2) M~l; [~ion, Dismantling, and Re;o;;l ”C~;t; ;n~~;l;~g~” ““”

(3) Abandone~b;oie&”:;:; :;:;:;::::::::: ;:;:;: Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Real Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Related Personal Property . . . . . . . . . . . . . . . . . . . . . Real Property Type Accounts . . . . . . . . . . . . . . . . . . . . . . . Financial Controls Over Real Property . . . . . . . . . . . . . . . . . Purchase of Real Property . . . . . . . . . . . . . . . . . . . . . . . . Leasing of Real Property . . . . . . . . . . . . . . . . . . . . . . . . . Distinguishing Construct on and Fabrication Activities from Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . (1) Research and Development Activities (Expense Type) . . . . . . (2) Construction and Fabrication Activities (Capital Type) . . . Experimental and Demonstration Projects General Plant Projects . . . . . . . . . . . : : : : : : : : : ~ : : : : : Existing Facilities Moved Because of Construction Activities . . . Closeout of Construction Projects . . . . . . . . . . . . . . . . . . . Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . Reconcillatlon of Real Property . . . . . . . . . . . . . . . . . . . . . VI-1 VI-1 VI-1 VI-2 VI-3 VI-5 VI-10 VI-10 VI-11 VI-11 VI-11 VI-12 VI-12 VI-12 VI-12 VI-13 VI-14 VI-14 VI-14 VI-14 VI-14 VI-15 VI-15 VI-15 VI-17 VI-17 VI-18 VI-18 VI-19 VI-20 V1-20 VI-21 VI-21 vii DOE 2200.6A 1-7-93 Definition . . . . . . . . . . ~. . . . . . . . . . . . . . . . . . . . . . Capital Equipment Type Accounts . . . . . . . . . . . . . . . . . . . . . Flnanclal Control s Over Capital Equipment . . . . . . . . . . . . . . Equipment Acqui red by Purchase . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Lease . . . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Construction . . . . . . . . . . . . . . . . . . . Equipment Fabricated . . . . . . . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Transfer . . . . . . . . . . . . . . . . . . . . . PI ant and Equipment Acqui red by Foreclosure Processes Property Acquired by Other Means . . . . . . . . . . . . . : : : : : ~ : Equipment Acquired for Research . . . . . . . . . . . . . . . . . . . . . Capital Equipment Acquired Through an Interagency Agreement . . . Property Belonging to Others Special Tool ing and Test Equip~e;~ : : : : : : : : : : : : : : : : : : : Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . Reconcil 1 ation Requirements . . . . . . . . . . . . . . . . . . . . . . . 3. Personal Property and Capital Equipment . . . . . . . . . . . . . . . . . . ;: c. d. !: 9. h. ;: K m. n. o. P* 4. Government-Owned, Contractor-Held Property . . . . . . . . . . . . . . . . Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Integrated Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Financial Controls . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reporting Requirements (4) Reconciliation Requireme;&” : : : : : ~ : : : : : : : : : ~ : ~ :

c. Of fslte Nonintegrated Contractors . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Financial Controls . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . (4) Reconciliation Requirements . . . . . . . . . . . . . . . . . . . 5. Conduct of Physical Inventories Introduction . . . . . . . . . : : : ~ : : : : : : : : : 1 : : : 1 : : : 1 : :: Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Reporting of Inventories . . . . . . . . . . . . . . . . . . . . . . . . . 6. Property Acquired Under Grants, Cooperative Agreements, and Special Research Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . d. Reconciliation Requirements . . . . . . . . . . . . . . . . . . . . . . . 7. Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Depreciation Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Depreciation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Unit Procedure for Computing Depreciation Expense . . . . . . (2) Group Procedure for Computing Depreciation Expense . . . . . . (3) Composite Depreciation Rates . . . . . . . . . . . . . . . . . . . d. Standard Service Lives and Field Element Depreciation Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) List of Standard Service Lives . . . . . . . . . . . . . . . . . . (2) Revision to Standard Service Lives . . . . . . . . . . . . . . . . (3) Adjustment to Accumul ated Depreciation . . . . . . . . . . . . . (4) Field Element Depreciation Committees e. Recording Depreciation . . . . . . . . . . . . . : : : ~ : : ~ : : 1 : : : (1) In Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● VI-22 VI-22 VI-22 VI-22 VI-23 VI-23 VI-26 VI-26 VI-26 VI-26 VI-26 VI-26 VI-26 VI-27 VI-28 VI-28 VI-28 VI-29 VI-29 VI-29 VI-29 VI-29 VI-30 VI-30 VI-30 VI-30 VI-31 ● VI-31 VI-31 VI-32 VI-32 VI-32 VI-32 VI-33 VI-33 VI-33 VI-33 VI-33 VI-33 VI-33 VI-34 VI-34 VI-34 VI-34 VI-35 VI-35 VI-35 VI-35 VI-36 VI-36 ● VI-36 VI-36 vii i DOE 2200.6A 1-7-93 (2) In standby . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● (3) Equipment Held fOr Future projects . . . . . . . .....=.”= (4) Excess .. ... .o=o=o ”oo=o “~= =OOOOO*Ooo OOo f. Exceptions . . . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● (1) Extraordinary Obsolescence . . . . . . . . . . . . . . . . . . . . (2) Casualties .e. ..oeoooe OOOOO “OCOOOOOOOOOOO (3) DepreclatiOn Of Improvements to Property of Others . . . . . . (4) CalculationofDePletion .. ..0000 OOOOOOOO ● 0 0 0 0 (5) Oil andGasproducers. = .. ...0000 ocoooo= ● “OCO= Attachment VI-l-Standard Service Lives . . . . . . . ● ● . c ● ● Attachment VI-2-Standard Property Record Unit Catalo9 . . . . VI-36 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-39 VI-51 PTFRVII . 11~ PTERVIII . F(IW (Reserved) IX . K. w!EMFS-AMOT~ I ix DOE 2200.6A 1-7-93 (2) Advances . ........=.=”=” ● +. ””0000=000”0 ● IX-? ● c. d. e. f. 9. h. i.

(3) Budgetary Resources ......=.~*-.000” .= ”==.”= (4) Field Element Chief Financial Officer . . . . . . . . . . . . . . (5) Cognizant Secretarial Officer . . . . . . . . . . . . . . . . . . (6) Emergency . . . . . . . . . . . . . . . . . . . = . ”=”===.=” (7) Integrated Contractor . . . . . . . . . . . . . . . . . . . . . . . (8) Management and Operatin9(MhO) Contractors . . . . . . . . . . (9) Memorandum of Understanding . 0 . . . . 0 . . 0 . (10) Miscellaneous Receipts ... :::: :::: ooooo .. .==. (11) Non-Federal . . . . . . . . . . . . . . . . .....=• OOOOOO (12) Reimbursabl e Agreement ... ... ... ..0= S-. .. ==.. (13) Reimbursable Authority . . . . . . . . . . . . . . ● . . ● ● . . “ (14) Reimbursable Work . . . . . . . . . . . . . . . . . . . . . . . . . . Responsibilities . . . . . . . . . . . . . . . . . . . . . ● . ● -O= “. (1) Cognizant Secretarial Officers . . . . . . . . . . . . . . . . . ● (2) Chief Financial Officer (CR-1) . . . . . . . . . . . . . . . . . . (3) Director of Procurement, Assistance and Program Management (PR-1) . . . . . . . . . . . . . . . . . . . (4) Director of Administrate On and Management (AD-1) . . . . . . . . . . . . . . . . . . . . . . ● . ● c (5) General Counsel /Field Counsel . . . . . . . . . . . . . . . . . . (6) Heads of Field Elements ... ... ... .. .=.0. .. ..== (7) Field Element Chief Financial Of fiber . . . . . . . . . . . . . . Policy . . . . . . . . . . . . . ● . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Description and Nature of Reimbursable WOrk . . . . . . . . . . . . . Authority for Accepting and Criteria for Establ ~ shing Reimbursabl e Agreements . . . . . . . . . . . . . . . . . . . . . ● . . . (1) Economy Act . . . . . . . (2) Atomic EnergyeA~~ ::::::::::::::: ::::~.e===c (3) Intergovernmental Cooperation Act of 1968 . . . . . . . . . . . (4) Project Order Law . . . . . . . . . . . . . . . . . ........= (5) Department of Ener9y Organization Act . . . . . . . . . . . . . . (6) Intergovernmental personnel Act . . . . . . . . . . . . . . . . . Flnan.clng of Work . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● (1) Financing Work for Other Federal A9encies . . . . . . . . . . . (2) Advances from Non-Federal Customers . . . . . . .......== Reimbursable Budgetary Resources and Obligational Authority . . . (1) Reimbursabl e8ud9etarY Resources . . . . . . .......== . (2) Reimbursabl eObli9ational Authority ... ... ... ... *o Accounting for Reimbursabl eA9reements . . . . . . . . . . . . . . . . (1) Execution and Control of Reimbursabl eA9reements . . . . . . . (2) Recording ... ... .. **.=0000 •...==~~=~”=.” (3) Billing and Collecting.. ... ... ... .o. cc. o . . . . . (4) Closeout of Reimbursabl eA9reements . . . . . . . . . . . . . . . 3. Revenue Programs . . . . . . . ● . . . . . . ● ● . ● . . ● ● ● ● ● ● ● Q ● ● ● ● General . . . . . . . . . . . . . . ● ● . ● . ● ● s ● ● “ ● ● ● s ● s ● c ● ● ;: Policy . . . . . . . . ● . . ● . ● . ● ● ● ● ● “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ Description and Nature of Revenue Producing Uork . . . . . . . . . . . ;: Authorfty To Produce and Sell Products and Servfces . . . . . . . . . e. Order Requirements . . . . . . . . . . . . . .- co ● ● ● ● ● ● “. ● ● ● (1) Criteria for Development. Review, and Acceptanceof Orders (Except Power Marketin9Admfni stratfons) . . . . . . . (2) Power Marketing Contracts ... ... ... .. ”ooo= ● **** (3) Pricing of Products, Services, or Work (Cost Recovery) . . . .

Ix-z Ix-2 Ix-2 IX-2 IX-3 IX-3 Ix-3 IX-3 IX-3 Ix-3 Ix-4 Ix-4 IX-4 IX-4 Ix-5 Ix-6 IX-6 IX-6 Ix-6 IX-7 Ix-8 Ix-9 IX-10 ● Ix-lo IX-10 Ix-lo 1X-11 IX-11 1X-11 1X-11 IX-11 IX-12 IX-13 IX-13 IX-13 IX-15 IX-15 IX-16 IX-18 IX-18 IX-18 IX-18 IX-19 IX-19 IX-19 IX-20 IX-20 IX-20 ● IX-20 x DOE 2200.6A 1-7-93 f. Basis of Budgetary Resource . . . . . . . . . . . . . . . ● ● ● ● . ● “ ● (1) General ... ... ..o*oooooo ● ooocooooooooooo (2) Advances .......~...””””” .“””””””””””””” (3) Exceptions to AdvanCespOllcY . . . . . . . . . . . . . . . . . . ~. Authority Contaln@d in Allotments . . . . . . . . . . . . ● . c . ● c ● ( 1 ) General . . . . . . . * * ..*oooo .“OOOO” OOOOOOOOO (2) Budgetary Considerations . . . . . . . . . . . . . ● ● ● . ● ● ● ● h. Accounting for Revenues .. ... ... ..cooo= cooooooooo (1) Current Period Sale Of Products and Services . . . . . . . . . . (2) Long-Term Contracts fOrSale of Products or Services . . . . . 4. Advances from Non-Federal Customers for Cosponsored Uork . . . . . . . . Policy . . . . ● . ● . . ● . ● ● ● ● ● ● ● ● ● ● ● ● “ ● “ “ “ “ “ “ “ “ “ “ “ K Description andNatureofUork . . . . . . . .....0... ● 0000 co AuthorityTo PerformWork . . . . . . . . . . . . . .= . ● . ● ● - ● . ● d. CosponsoredWorkAgreements . . . . . . . . . . . . . . . . . . . . ● ● ● (1) Requirements......*. .....*• OOOOOOOOO ● = ” ” = ( 2 ) Pricin9eo. . . . ...oo . . . . . OCOOOOOOOC= ..”OO e. Basis ofBudgetary Resources . . . . . . ........= ...=.=. (1) DOE ● .00. ..00.0 .0000. ● * * (2) Cospoiioi ”:::::::: ::.....*******” ● ****** (3) Advances . ............*.= .=..*.• S= OOOOOO f. Authority Contained in Allotments . . . . . . . . . . . . . . . . . ● . 9. Accounting for Cosponsored Work . . . . . . . . . . . . . . . . . . . . . (1) Execution and Control of Agreements . . . . . . . . . . . . . . . (2) Accounting for Advances Received for Cosponsored liork . . . . 5. Appropriation Refunds . . . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● a. Description . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● “ ● b. Accounting for Refunds . . . . . . . . . . . . . . . . . ● ● . ● ● ● ● s “ IX-20 IX-20 IX-20 IX-21 IX-21 IX-21 IX-22 IX-22 IX-22 Ix-22 IX-23 IX-23 IX-23 IX-23 IX-24 IX-24 IX-24 IX-24 IX-24 IX-24 IX-25 IX-25 IX-25 IX-25 IX-25 IX-26 IX-26 IX-26 6. ‘“Integrated Con~ractor Collections . . . . . . . . . . . . . . . . . . . ● ● ● Appropriation Reimbursements . . . . . . . . . . . . . . . . . . ● ● ● ● L ReductionsofCost . . . . . . . . . . . . . . . ● . . . ● ● ● ● ● ● ● ● ● ● (1) BudgetedCollections. . .. ... ... .o. ==000 ..0000 (2) OtherCollection s.... . . . . . . . . . . . . . . . . ● .0=00 c. General Fund Miscellaneous ReceiPts . . . . . . . . . . . . . . . . . . 7. Donatfons,Gffts. and Bequests . . . . . . . . . . . . . . . . . . . . . ● ● . a. Description . . . . . . . . . . . . . . . . . . . . . . . . ● . . ● ● ● ● ● . b. Authority . . . . . . . . . . . . . . . . . . . . ● . . ● ● . ● . ● ● ● ● ● ● c. Accounting Considerations . . . . . . . . . . . . . . . . . . . ● ● ● ● ● (1) Execution and Control ofWork . . . . . . . . . . . . . . . . . . . (2) Accountfn9 Treatment . . . .. ... .~=o *.00000 •~*0. 8. Deposit Funds . . . . . . . . . . . . . . ● cc . ● ● ● .S ● ● w ● ● ● co co ● a. Disposition . . . . . . . . . . . . . . . . . ● . ● ● . . ● . . . “ . “ ● ● “ b. Revfew . . . . . . . . . . . . . . . . ● ● . ● ● ● ● ● ● ● “ “ ● “ ● “ ● ● ● “

9. Miscellaneous Receipts .. ... ... ....o.o ● .o.OOOOO” ”00 a. Policy ● . ● ● . ● . . ● ● ● ● ● ● ● . ● ● ● ● ● ● “ S ● ● “ “ “ “ “ “ “ “ “ “ b. Exceptions . . . . . . . . ● . ● ● ● ● ● . ● ● “ ● ● “ “ ● “ “ “ ● ● ● ● “ “ (1) General .. ... ..0000 o”ooo ● 000 ”OO”OOOO” 000 K2) Proceeds of Personal Property Sales . . . . . . . . . . . . . . . c. Type of Collections . . . . . . . ● . . . . ● ● ● . s c . ● ● c ● ● ● ● ● “ d. Accounting Considerations . . . . . . . . . . . . . . . ● . ● ● . ● w “ ● 10• Reimbursable Personnel Details . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● IX-26 IX-26 IX-26 IX-27 IX-27 IX-27 IX-28 IX-28 IX-28 IX-28 IX-28 IX-28 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-30 IX-30 IX-31 xi DOE 2200.6A 1-7-93 11. Other Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-1-Guidelines for Development. Review, and Acceptance of Agreements for Reimbursable Hork or Services byDOEOfficials . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-Z-Department of the Treasury Accounts to Which Collections Are Deposited: Reimbursable Work . . . . . AttachmentIX-3-Department of the Treasury Accounts to Which Collections Are Deposited: Revenues . . . . . . . . . . . Attachment IX-4-Department of the Treasury Accounts to Wh~ch Collections Are Deposited: Cosponsored Work . . . . . . Attachment IX-5-Department of the Treasury Accounts to Which Collections Are Deposited: Donations, Gifts. and Bequests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-6-Department of the Treasury Accounts to Which Collections Are Deposited: Deposit Accounts . . . . . . Attachment IX-7-Department of the Treasury Accounts to Which Collections Are Deposited: Miscellaneous Funds to DepartmentoftheTreasury . . . . . . . . . . . . . . . . . . . . IX-31 ● IX-33 Ix-35 Ix-37 IX-41 Ix-43 Ix-45 Ix-49 xii DOE 2200.6A 1-7-93 CHAPTFR L purpose. To prescribe the policies and general procedures for handling cash and for transactions in which cashis involved. Background. Cash is actual money and instruments and claims generally used and accepted as money. The use of contractor-issued credit cards to purchase travel and related expenses is coveredin DOE 1500.4A, TRAVEL CHARGE CARD PROGRAM, of4-22-91. Public moneyis all specie, currency, or instruments having monetary value received on behalfof the United States from sales, refunds, discounts, fees. pledged deposits, collections, or other transactions. ~ilitv. The applicabilityof this chapter is specified in DOE 2200.4, ACCOUNTING OVERVIEW, Chapter I. “Introduction.’’p aragraph 1. ~. (1) Accounting forcash from its receipt tofinal disposition must include the safeguards necessary to ensure proper control as outlined in DOE 1000.3B, INTERNAL CONTROL SYSTEMS, of 7-5-88. Personnel handling cash or involved in making accounting transactions affecting cash are responsible for receiving, safeguarding. recording, depositing, and disbursing cashon a timely basis and for keeping the required records and accounts. (See18 U.S.C. 643, 652, 653.648, 1901, 2073: 31 U.S.C. 490, 521, 525.) (2) Employees handling public money must account for its receipt anddisposi- tionand are personally liable for such funds. Failure to account for public money is a violation of the Federal Criminal Code. (3) No employee shall convert to personal use, loan (with orwithout inter- est), depositin any bank, or exchange for other funds any public money, except as specifically allowed bylaw.

(4) No employee shall use public funds for the purpose of cashing checks ofany kind, whether public or private. (5) No employee shall use the funds or propertyof the United States tocarry on any trade or business nonspecifically authorized bylaw. (6) No employee shall withhold publ icfunds or any portion thereof without specific legislative authorization. 1-1 DOE 2200.6A 1-7-93 Paragraphed ● (7) Field Element Chief Financial Officers (Field CFO’s) shall followthe principles of cash management contained herein and described in detail in volume I, part6, chapter 8000, of the Treasury Financial Manual (ITFM 6-8000) . (8) Collections and’all other funds held within the finance organization, including negotiable instruments, traveler’s checks, airline tickets, and other cash instruments, whether pending regular deposit orin Imprest funds, shall be handled as cash, kept under complete control and under proper physical safeguards. At aminimum, they shall bekeptinaflre- resistant combination safeor safe-cabinet. (9) Field CFO’s shall continuously review the operations under their supervi- sion. Deficiencies shall be corrected promptly and, where required, reported to higher levels of management. e. ~. Effective cash management includes the timely collectionof receipts, prompt deposit of collections, useof appropriate disbursement methods. and the elimination of idle cash balances. The purpose of cash management isto make the most effective use of the Govern- ment’s cash resources atall times. Each Field CFO shall maintain written internal procedures for cash management and shall monitor theoffice’s cash management practices. Themonitoring shall include an annual cash management review, using the TFM supplement “Cash Management Review Guide.” If there have been significant changes to the cash flows original lydocumented for afiscal ● year, anew Cash Flow Report shall recompleted, in accordance with ITFM 6-8000. In all other instanceso the certification document appearingas Attachment I-l shall be prepared annually and sent to the Chief Financial Officer (CFO; CR-l) for review. a. Collection Me~. The most cost-effectivecol lection mechanism orcom- bination ofmechanisms shall be selected for each type of receipt that results in the earliest deposit ofcash into the Department of the Treasury. The following are specific collection and deposit mechanisms and general descrlp- tionsof when their use is appropriate: (1) ~. Electronic funds transfers (EFT’s) are methods of transferring funds by electronically exchanging information. (2) ~. Alockbox is a collection system that promptly converts checks into funds availableto the Department of the Treasury. The Federal Automated Lockbox Network consists of financial institutions selectedby the Departmentof the Treasury based on nationwide bids and located throughout the United States to provide for optional mail deliveryto accept deposits. Generally, lockboxes are used for low-dollar, high- volume receipts–for example, fees and loan repayments. I-2 1-7-93 DOE 2200.6A Paragraph 2b(2)(b) (3) Institutions. osits with Financial are cash and checks received directly by DOE that are deposited, either bymail or over the counter, with financial institutions (banks, savings and loans, or credit unions) that have been designated by Department of the Treasury as approved depositories. Deposits received by those institutions are credited tothe Department of the Treasury’s account in the Federal Reserve System for immediate creditif they are received during normal business hours.

(4) ~redit Carti. As aresult of a Government-wide initiative jointly spon- sored by the Office of Management and Budget and the Department of the Treasury’s Financial Management Service (FMS), Federal agencies may accept credit cards (VISA and Mastercard) for collection of debt. FMShas entered intoa contract with several banks to provide credit card ser- vices. Additionally, FMSwill pay for all basic costs ofimplementin9 a standard credit card services package. Site support costs and costs for any incremental services will be the responsibil ity of each DOE user. Site support costs, however, are minimal. Field offices interested in this collection mechanism must usean FMS-approved bank and should contact the Office of Financial Policy (CR-20) at Headquarters for additional information. b. Electronic Fu ds Transfer CollectionSn . (1) The Department of the TreasurY uses thefo” (FRB) EFTnetworks forcollectin9 funds. (a) ~fundstransfers are effected lowing Federal Reserve bank through an FRBtelecommunica- tions network that provides immediate (same-day) credit to the receiving party. (b) ~Clearingh.u&e (ACH) funds transfers are effected through this FRBnetwork via variOus electronic information exchanges, such as magnetic tapes or disks, computer printouts, or data transmis- sions. It generally takes20r 3daysto receive afunds transfer through ACH. (2) General procedures foruse OfEFT areas follows: (a) (b) EFT(ACHor FEDWIRE) shall be used whenever itis advantageous to the Government. Written approval to use EFTmust reobtained from the Department of the Treasury in advance for each class or typeof deposit before advising depositors onuseof EFT. Approval is also required whenever the average deposit volume ofan approved deposit activity is expected to increase substantially. These requeststo authorize EFTuse shall resubmitted tothe CFO, in accordance with ITFM 5-4500, for transmittal to the Departmentof the Treasury. Upon receiptof Department of the Treasury approval and specific instructions for EFT system use, depositors shall be notifiedby the cognizant finance office regarding procedures for EFT deposits. I-3 DOE 2200.6A Paragraph2c 1-7-93 ● (1) ~. Lockboxes should only be used when cost-effective, asthere isa charge for their use. Features of alockbox collection system include the foll~wing: (a) Remittances are sent directly toa the lockbox financial institution DOE. (b) The lockbox financial institution times throughout theday and night remittance data. (c) The lockbox financial institution post office box reserved for DOEby ~nstead ofbeing sent directlyto picks up and opens themail several and processes the funds and deDositsthe fundsto the Det)art- mentofthe Treasury’s General Account at the FRBbywiring the”funds tothe FRB either on the business dayof or the business day following receipt of the funds. (d) Remittance data are usually received by DOE onthe same day orthe next business day after receiptof remittance by the lockbox financial institution. (z) ~. (3) (a) (b) (c) ~eLo-. Awholesale lockbox service is designed to processa relatively small number of transactions representing large dollar amounts and involves themanual processing of traditional invoice documents. ~tail Lo-. Aretail lockbox service is designed to process a large number of transactions and low dollar amounts and uses machine- readable documents for automated processing through optical charac- ter recognition (OCR). Specific remittance data are captured and stored on magnetic tapes or disks and transmitted to DOE for posting accounting entries.

~lecuoniclocw. An electronic lockbox service can process both paper remittances and electronic transactions. Remitters can make payments through the ACH network, by wire transfers, or by direct check mailing. There are no specific criteri a concerning volume and dollar amount of transactions for an electronic lockbox. ~tatiou. Detailed specifications and terms of financial insti- tution compensation shall be based on Department of the Treasury guide- lines and incorporated into amemorandum of understanding that the Field CFO, the representative of the Department of the Treasury, andtherepre- tentative of the selected institutional must sign. The memorandum will be executed in accordance with DOE 1280.lA, MEMORANDI.JMS OF uNDERSTANDING, ● ofll-15-91. Prior to implementation, all details of the lockbox service I-4 1-7-93 9’ DOE 2200.6A Paragraphed shall be tested and proven. The Departmentof the Treasury and the Field CFO shall review the lockbox service after implementation to ensure that It is operatingas anticipated and within acceptable costs. d. ~. Specific regulations and criteria have been established by the Department of the Treasury (I TFM6-8000) govern- ingdeposits by Government agencies; they shall be followed. Direct collec- tlons consistof cash (currency and coins) and checks received directly by DOE for deposit into the Departmentof the Treasury. Each Field CFO shall establish procedures consistent with effective internal controls to manage and expedite the deposit of all receipts. Procedures shall incorporate the following requirements: (1) Cash and check collecti~ns shall decentralized. personnel collecting cash and checks should not reinvolved in any way with certifying vouchers, functioningas cashiers, preparing deposits, or keeping accounts, nor shall they have access to the accounting records. Special controls mustbe developed and in place ifthesize ofan organization’s staff prohibits separation of duties. (2) Independent accounting control sovercash and check collections shall be established. At a minimum, records that adequately describe the nature and amount of each cash or check receipt shall be maintained. (3) All cash items shall be listed in duplicate immedi atelyupon receipt as the envelopes are opened. Acopyof the listing shall be delivered tothe person responsible for reconciling of collections and deposits. (4) Over-the-counter cash coil ections shall be acknowledged byprenumbered receipts. A sufficient number of copies of the receipts shall be prepared to meet local needs. (5) Checks, money orders, and other cash instruments received shouldbe payable tothe U.S. Department of Energy, or so endorsed. Remittances received shall be inspected to ensure that they are properly completed and are, in fact, payments to DOE. Checks received that arepayabl etothe Department of the Treasury or bearing similar inscription shall bedepos- ited immediately. If it is subsequently determined that a deposited check was not for payment ofa DOE account, a Department of the Treasury checkin the amount of the deposited check shall be schedul ed for payment tothe remitter, and the remitter shall be notified of the action taken. (6) Negotiable instruments, such as checks, must be endorsed as prescribedin paragraph 2e(3) on receipt. (7) An erroneously prepared check that has been rejectedby DOEorthe finan- cial institution shall be returned to the payer with a letter requesting that the check be reissued correctly. Followup shall bemade to ensure that paymentis recefved.

I-5 DOE 2200.6A 1-7-93 Paragraphed (8) (9) (lo) Aremittance received that is for an amount less than the amount owed shall be deposited. Aletter or new billing shal 1 be sent to the remitter requesting paymentof the unpafd balance of the bill oran appropriate explanation of thedffference. A remittance received that isforan amount greater than the actual amount owed shall bedeposlted. The remitter shall receive credit for the over- payment on the next invoice, ora refund shall be paid. The remftter shall be promptly notifledof the action taken. Thetime valueof cash gained by prompt billfng to, and prompt payment by, non-Government entiti es is lost when the recefpts are not deposited promptly. Set forth below are DOE processing procedures that shall be followed in conjunction with Department of the Treasury and General Accounting Office (GAO) Policy and Procedures Manual for Guidanceof Federal Agencies. Modifications in these procedures maybe necessary at some finance offices due to such factors as size of staff, organization, physical arrangements, physical proximity to financial institutions, and routing of documents. Each organization should periodically review its collection options to ensure that the most cost-effective procedures are used. The frequency of deposits shall bedetermfnedby the cumulative daily dollar volume of cash received by the depositing office. The basic deposit requirements areas follows: (a) (b) (c) Receipts totalfng $1,000 or more shall be deposfteddafly withan authorized depository, except for checks and money orders received as bfddeposfts, whfch shall beheld and returned uncashed to the unsuccessful bfdders. Receipts of less than $1,000 maybe accumulated and deposited when the total reaches $1,000 or by Friday of each week, regardless of the amount collected. Department of the Treasury checks shall redepos- ited, either over the counter or bymail in the FRB or branch wftha properly completed Standard Form 215 (SF-215), “Deposit Ticket. ” Although same-day mafling or deposit fs preferred, weekly maflingis acceptable. Over-the-counter deposits withan FRBor a Federal Reserve branch, excludfng Department of the Treasury checks, shall be made as soon as practfcal, but not later than noonon the next business day after receiptor accumulation of $1,000 or more. Only offices with immedi- ateaccess toan FRBora Federal Reserve branch shall useitsfacili- ties. Ffnance offfces thatdo not have access toan FRBora Federal Reserve branch shall make arrangements to use alocal financial institution that is authorized by the Department of the Treasuryto accept deposits to Departmentof the Treasury accounts. These arrangements must be approved by the Department of the Treasury and coordinated through theCFO. If the Department of the Treasury determines that ftis notin the best interest of the Governmentto usea local financial institution, the deposits shall be mailedto I-6 1-7-93 (d) (e) (f) DOE 2200.6A Paragraph 2e(2) the appropriate FRB or Federal Reserve branch. The mailing ofdepos- its to a financial Institution must be specifically authorized by the Department of the Treasury through the CFO. For over-the-counter deposits with financial institutions, the depositing organization shall establish a cutoff time forthe prepa- ration of deposits and schedule processing of receipts to maximize funds deposited each day. DeDosits should delimited to one each da~ and timed to meet the cutoff timeto reincluded in the transactions posted for the day of the deposit.

A deposit receipt shall be retained e. ~. (1) Ml!2JW1. shall be obtained promptly from the depository and as an accounting record. (a) Cash collections shall be deposited to the proper agency location code (ALC) and shown onthe SF-215. Collections that cannot beallo- cated to any specific appropriation, fund, or receipt account at the time of receipt shall be recorded by DOE field elements in Suspense 89X6875 and by integrated contractors in the account Cash with Integrated Contractors until the correct account is determined. (b) Persons who prepare deposits shall be other than those who receive cash. They shall not record entries to accounts receivable, certify vouchers, or have access to any cashier funds or other cash records unless the conditions of paragraph 2d(l) aremet. (z) ~b Each remittance shall be examined to deter- mine whether itis acceptable. If currently datedor undated and otherwise negotiable. it shouldbe accepted: if postdated. it shall notbe accepted unless there is a preexisting agreement todoso. If postdated checks are accepted. the payments they represent shall not be posted until the dateon the check orthe date the check is clearedby a financial institution, whichever is earlier. Sound judgement mustbe usedin returning postdated checks to the sender to ensure that returning the check will not resultin receiving payment later than the date shown on the check in hand. The amount expressed in writing and the amount expressed in figures shouldbe in agreement. Ifthey are not in agreement, then the written amount deter- mlnes the monetary valueof the check. Examination shall also be madeto determine whether the remittance improperly signed and, when required, countersigned. These procedures apply to checks payable in U.S. dollars through U.S. banks. Checks payablein foreign currency preprocessed as described in paragraph 2e(6). I-7 DOE 2200.6A 1-7-93 Paragraph 2e(3) @ (3) Preparinu Ws fo r iX?DOSi t . SF-215, “Deposit Ticket, ” should be used for depositing remittances. Instructions for completing the SF-215 arein ITFM 5-2000. All Federal program agencies depositing checks with Federal Reserve banksor commercial depositories must use the payee endorsement area located 1.5 inches beginning at the trailing edge of the check. Refer to TFMBulletin 88-10. All checks deposited shall include the following: (a) The name and the address of the depositing organization. (b) The depositing office agency location code. (c) The statement ’’Pay to the order of any Federal Reserve Bank or Branch or General Depository for credit to the United States Treasury.” (d) The date of the endorsement. (4) .posits with a Federal Reserve Bank or Branti Separate cash from checks and preparea separate SF-215, “DepositTicket;” for each. Checks depos- ited withan FRBneednot be sorted but must be accompaniedby an adding machine tape or other listing showing the amount of each item and the total amountof the deposit. (5) J?eposits with Com~rcial Financial Instltutlon~. . . . Financial institu- tions’ sorting requirements are nonstandardized; therefore, the require- ments of the individual depositories shall be observed. Any checks drawn ● on the Department of the Treasury shall not redeposited in a general depository. (6) FJ?fs Pavabl e in Foreim Currency . (a) Each DOE Field CFOmay make arrangements with the regular depository for the deposit of checks drawnin a foreign currency. The Mellon Bank has been designated the depository for checks payable in foreign cur- rency ifa local de~ository is not used. Themailinu address at the Mellon Bank for checks drawn ina foreign currencyi~:

Mellon Bank U.S. Treasury Foreign P.O. Box371782M Pittsburgh, PA 15251 Collection Operations The Mellon Bank hasestabl ishedminimum values for checks thatit will accept for deposit. Those minimums, expressed inU.S. dollar equivalents, are $4.00 for checks drawn on Canadian banks and $10.00 for checks drawn on other foreign banks. However, DOE organizations I-8 1-7-93 DOE 2200.6A Paragraph 2e(6)(d) may set minimum check limitations higher in consideration of the following charges that may be incurredby the depositor: Checks less than the above minimums . . . . . $2.00 per item Returned Items . . . . . . . . . . . . . . . . . $20.00 per item Tracers . . . . . . . . . . . . . . . . . . . . . . $5.00 per item Minimum check deposit return fee . . . . . . . $2.00 per item Exchangefees . . . . . . . . . . . . . . . . . . . . . .Unknown Subsequent collecting bank charge . . . . . . . . . . Unknown (b) It is the responsibility of the depositin90r9anizati onto transmit foreign checks, accompanied byan original SF-215, “DepositTicket,” to the Mellon Bankin accordance with the following procedure: 1 J*S. -Dollar Foreiu nChec_ks Asingle SF-215 shall accompany all U.S. -dollar foreign checks;ot payable through banks in the United States that are forwarded to the depository ona single day. Com- pletethe SF-215 as prescribed in ITFM 5-3020. including the insertion of theU.S. dollar amount. Upon receipt at Mellon Bank, the SF-215 will be dated, and the confirmed copy will be returned immediatelyto the depositing organization. 2 -Foreian Currencv Foreian checks . Aseparate SF-215 must accompany each foreign currency foreign check forwarded to the depository. Complete the SF-215as prescribedin ITFM 5-3000, but leave the amount blank. Upon collection of the item, the Mellon Bank will enter the U.S. dollar valueon the corresponding SF-215 and return the dated. confirmed copyto the depositing organization. (c) In accordance with ITFM 5-2030. aphotostatic copy ofeach check must be maintained, to permit duplication if the check is lost, destroyed, or mutilated. (d) Checks returned dueto ”insuffi cientfunds’’ will be processeda second timeby the Mellon Bank before being returned to the deposi- tor. “Othern onpayment” checks (checks returned unpaid for reasons other than insufficient funds) are charged against the Department of the Treasury’s General Account after the first presentation. Mellon Bank mails a tracer each month to the collection bank ifthecollec- tionprocess is not complete within 30days. Any check that proves uncollectible after 120days is charged back tothedeposi torby Mellon Bank. The total amount of returned uncoil ectible checks. returned item fees, exchange fees, tracers, and any other charges incident to the collection of the foreign checks, assessed after the dollar credit has been posted in the Department of the Treasury’s accounts, is charged back to the depositor through Mellon Bank’s execution of SF-5515. “Debit Voucher.” Copies of the SF-5515 are forwarded tothe depositor as prescribed in ITFM 5-5000. The fees are chargedto the fundor appropriation generating the revenue. I-9 DOE 2200.6A Paragraph 2e(7) 1-7-93 (7) L!ncol Iectible Ite s-Oebit VOUche.r . Upon receipt of an unpaid check or copies of the SF-5! 15, “DebitVoucher,” from the depository, depositors shall adjust their accounts and proceed at once to collect the amount as though no check had been received.

f. Payroll Deductions. Deposits of savings bonds, taxes, and other payroll deduc- tions are made in special deposit accounts. For additional informationon payroll deductions. see DOE2200.9B. MISCELLANEOUS ACCOUNTING, Chapter I, “Payroll Accounting.” 9. portinu amcwcilina Collections and-tkposits . (1) ~posits. Large transactions affecting Department of the Treasury balances must be reported promptly. Deposits total ing$10 millionor more in one transaction, other than Department of the Treasury checks, OPAC payments, or 1081 payments, shall be reported tothe RFConthe dayof deposit. The name of the agency, the amount deposited, andthe name and location of the depository will be reported. It is not necessaryto report EFTwire deposit of$10 million to$50 million, because this informationis availableto the Department of the Treasury. However, Field CFO’s who have advance knowledge of extraordinary deposits through EFTin excess of $50 million should advise the Departmentof the Treasury ofsuch deposits. The large deposit report shall besent bywire (commercial facilities, TWX 7108229201, 02, 03, or04) to: Funds Control Branch ● Accounting Group Financial Management Service Department of the Treasury Treasury Annex No. 1, GAO Building, Room 2817 Washington, DC20226 (a) For instructions on content, preparation, and submission of SF-224, “Statemento fTransactions ,“ see ITFM 2-3300 and DOE2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.” (b) Deposit tickets shall be reconciled to records maintained bythe person receiving.cash and checks. This reconciliation shall bemade frequently, anda daily proof of cash shall be prepared where large volumes ofcasharehandl ed daily. (3) onc il i ation of Receir)t Acc~ ● (a) The Department of the Treasury consolidates all accounting data received into the Government On-Line Accounting Link System (GOALS) and each month furnishes DOEwith TFS Form 6652. “Statementof Differences.” ● I - l o DOE 2200.6A Paragraph 3b(l)(b) (b) Each organization that PrePares an SF-224, ’’Statement of Transac- tions,” shall compare records of deposits that weremailedorpre- sented tothe bank and reported onthe SF-224 with records of deposits that were reported back to DOE Field CFO’s by the banking system. Any discrepancies between the SF-224 and deposits reported through the banking system shall be adjusted by the DOE Field CFOor the Depart- mentof the Treasury, as appropriate. Correction of Department of the Treasury errors shall be coordinated with the originating Department of the Treasury office. (c) Deposit differences that have aged 6months are subjectto an adjust- mentto the Budget Clearing (Deposits) account by the Departmentof the Treasury (I_TFM 2-1500). Adjustmentsto (Deposits) account are discussedin further and 2-3300. the Budget Clearing detai 1 in I TFM 2-3100 a. ~tro~. The principal objectives of controls over disbursements areto ensure that all disbursements are legal, proper. correct. and timely and that all disbursements are recorded accurately and reported promptly. Specific detail son accounting entries for disbursements are contained in DOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES .

b. dsof Makina Disbu SWr . All disbursements, except those authorized to be madein cash. shall bemade by checks drawn on the Department of the Trea- sury orby Department of the Treasury Funds Transfer Systems. Title7. chapter 7, of the GAO Policy and Procedures Manual for Guidance of Federal Agencies (7 GA07) contains guidance relating to disbursements. As provided intitle 31. section 3321, of the United States Code, DOE funds other than payments made through the imprest fund are disbursed by the Department of the Treasury. Disbursements through letters of credit are covered in paragraph 7. (1) tofthe Trei&urv Di~eral ServlcesAlminls- . . (a) The Department of the TreasurY has the responsibility for all dis- bursement forms, except that the General Services Administration (GSA) has responsibility for forms dealing with transportation and travel expenses. Department of the Treasury disbursement forms are describedin ITFM 4-2000. (Refer to 41 CFRpart 101-141 for policies and procedures covering payment for domestic and foreign transportation services.) (b) All disbursements. whether in cash, by EFT. or by checks drawn on the the Department of the Treasury, for authorized and lawful payments shall be processedon voucher schedules prescribed by the Department of the Treasury orGSAas appropriate. 1-11 DOE 2200.6A Paragraph 3b(2) (2) tofthe Treasurv Pavrnf!.nts on Standard Form l1660CR. *6 ouCJlfX Schedule of Pavments #,. (a) ~. DOE shall use SF-l1660CR, “Voucher and Scheduleof Pay- 1-7-93 ments,” and SF-l1670CR, “Continuation Sheet,”to schedule payments through the Department of the Treasury Regional Financial Centers (RFC’S). Each basic voucher (invoice) shall be 1 isted on an SF-1166 OCRwlth all Information required for check issuance purposes. Invofces supporting each completed SF-1166 OCR shall be retainedin accordance with DOE 1324.2A, RECORDS DISPOSITION, of 9-13-88. (b) ~.Accountability records must bemain- tainedfor the purpose of control ling the stock of SF-l1660CR’s on hand and for fixing accountabil ityand responsibility for their issuance and use. To facilitate such control, each SF-11660CR and SF-11670CR is imprinted in sequence withan alphanumeric code atthe time of printing. SF-11660CR’s donot have to be submittedto Department of the Treasury RFC’S in strict alphanumeric sequence. However, each certifying officer shall be assigneda range ofpre- numbered SF-1166 OCR’s, and the range should retransmitted to the Department of the Treasury RFCon SF-210. “Signature/Designation Card for Certifying Officer.” (c) preparati~. The SF-11660CR is prepared in aboriginal and one copy. Where applicable, payment information that designates amalling address must include the ZIP Code. The original SF-l1660CRis sent to the Department of the Treasury RFC for payment processing, andone copy is retained by the originator. Submit SF-l1660CR’s to allow payments to be issuedas close to the payment due date as possible. The time required for mail to reach the RFCmustbe considered in the due date scheduling process to ensure payment by the due date. The payment date is the date of the check. The Department of the Treasury prepares check payments from SF-l1660CR’s by an optical character reading process or from computer magneti ctapes. On an exception basis, checks for individual payments of $lmillion ormore, foreign currency payments, and cashier advances are prepared manually by the Department of the Treasury.

1 _ter Maanetic T~. Computer magnetic tape is the preferred medium for submission of payment data tothe RFC. Each tape should contain a minimumof 100 separate payments. If the Field CFOis unable to meet this minimum, it is at the discretion of the Depart- mentof the Treasury RFCto accepta tape with fewer than 100 records. Each Field CFOshouldsubmi tonlyone magnetic tape per day for a particular class of payments, as noted in paragraph 3b(2)(c)~; separate SF-1166-EDP’s must be prepared forcertifl- cation of transportation and foreach ALCon a tape. Computer- generated SF-l166-EDP’s are the supporting documentation for check-issue media submitted on magnetic tape. The provisions of ITFM4-2000 generally apply to the SF-l166-EDP. However, the 1-12 1-7-93 DOE 2200.6A Paragraph 3(b)(2)(c)4hlu 2 3 . 4 SF-1166-EDP is limited to such data as tape reel number, check volume, amount. and certification. Individual payment data for check inscription are not requiredon the SF-l166-EDP. flCRForma~. Field CFO’s unableto produce computer magnetic tape and SF-1166-EDP’s must certify payments on an SF-1166 in anOCR format so that payments can reprocessed automatically onOCR equipment. foreian Currency Vouchers. Foreign currency vouchers require that an additional copy of the SF-l1660CR be prepared and sub- mitted to the RFC. The Department of the Treasury must give prior approval before the Field CFOcanmake useof the foreign disburs- ing facilities. For specific details for foreign currency payments, refer to ITFM 4-2000. Rgtailed Instructions. Guidelines for entering informationon the SF-l1660CR are foundin ITFM 4-2000. Typing requirements and guidelines for SF-l166 OCR’sto be processedby OCR equipment are contained in the OCR Voucher Preparation Manual, available from Department of the Treasury RFC’s. a JWmberina Invoices and Othe Supporting Vouc er~h Each invoice or voucher must be cross-referenced toth~ SF-11660CR bya DOE contract number, a purchase order number. or some other identification. to enable positive association between the invoice andthe SF-1166 OCR. Depending on the system used for numbering basic vouchers, invoices, or bills. the first column of the SF-1166 OCRmayormay notbe used. This column must be used on SF-11660CR’S covering transportation services. b arate Sch~ulina Of TranSDOrtiltiOt’I Vou- . Field CFO’s are required to schedule transportation charges, including certificates of settlement for transportation vouchers, sepa- rate from other payments on SF-l1660CR’s. The office autho- rizing the payment may prefix the SF-1166 OCR serial number with the letter ’’T’’ for transportation payments. Vouchers should desegregated into the following general classifications for processingon separate SF-1166 OCR’S. i ~ include the following: da Vouchers for freight and passenger transportation charges payablein U.S. dollars: ~ Vouchers for freight and passenger transportation charges payablein foreign currency; and cc “No-check’’v ouchers, requiring no action bythe RFC. 1-13 DOE 2200.6A 1-7-93 Paragraph 3b(2)(c)Ahfi H ~ include the following: ● u Payroll vouchers; M Travel vouchers; K Vouchers payable in foreign currency; M “No-check” vouchers, requiring no action by the RFC: M EFT payment vouchers; ff Vendor payment vouchers: and gg All others. c bininu Invoices into a Consol idat.ed PavW . To minimize the number of schedules prepared and checks issued bydisburs- ing officers, payments for multiple invoi cesor bills for supplies furnished or services rendered may beconsolldated intoa single paymento provided that:

i Payment is to a single office or pl ace of business of the vendor; ji Payment is for a single Government establishment; jJj The consolidated payment is agreeable to the vendor; U No loss of discount will result; or Y Payment ismade when due, in accordance with the Prompt Payment Act. 5 artment ofthe TreasurYTurnar~ . Department of the Treasury RFC’s will make every effortto adhere toa 24-hour (in today, out tomorrow) processing schedule for payments submitted on computer magnetic tapes or in an OCRformat that do not include manual enclosures. Payments that require manual enclosures may take upto72 hours for processing and mailing. (d) cellatlon of Pay- . Described below is DOE policy for pro- cessing canceled checks certified for disbursement by the Depart- ment, processing checks that are not avail able forcancellati on, and processing claimsby payeesresulting from nonreceipt, loss, theft, destruction, mutilation, or forgery of Department of the Treasury checks. 1-14 1-7-93 DOE 2200.6A Paragraph 3b(2)(d)~ A Checks drawn for cashor for advances to cashiers that are subsequently found not required shall not be processed for cancellation. The checks shall be endorsed anddeposlted as cash collections for credit to the appropriate account(s). b When a Field CFO comes into possession of a check on which an SF-1184, “UnavailableC heck Cancel lation, ’’has previously been submittedto the Departmentof the Treasuryo the check shall be annotated ’’NOT NEGOTIABLE, PREVIOUSLY TREATEDAS CANCELED, SF-1184 DATED —.” The Field CFO shall then forward the check to the Department of the TreasuryOs Division ofCheck Claims, in accordance with ITFM 7000. Checks on whichan SF-1184 has been issued shall not be releasedto the payee, canceled, or otherwise redeposited. An available check is acheckthatis in the possession ofDOE or the Department of the Treasury RFCand for which cancella- tion will bemadeby useof SF-1098, “Schedule ofCanceled or Undelivered Checks.” The Department of the Treasury will createa computer- generated SF-1098 for checks in its possession and forward the list to DOE, together with a support listing for cancellations of miscellaneous and salary payments that DOE has certified. DOE will be provided payment identification information on the support listing from information obtained from the faces of paper checks. DOE will also be provided with a facsimileof each canceled check by the Department of the Treasury. For control purposes, SF-1098 schedule numbers must increase byone for each schedule generated for aparticul arDOEloca- tion. For internal control, Field CFO’s shall maintain alog for these numbers. Transmittals of erroneously issued checks must include the name and address of the returning DOE field element; itsALC; the amount. the payee, and the date of the check: and the number of the SF-l1660CR used to generate the original disbursement. The Departmentof the Treasury will then furnish DOE witha computer-generated SF-1098 canceling these checks. ~ Upon receipt of notification of cancellation from the Depart- mentof the Treasury, the Field CFO shall credit theappropria- tionor fund originally charged for the disbursement and, if 1-15 1-7-93DOE 2200.6A Paragraph 3b(2)(d)fi necessary, certifya new disbursement. Payables shall be establishedas necessary. g Undeliverable checks shall be returned to the Department of the Treasury RFC. 3 ~.

d Acheckthat is not in the possession of aField CFO orthe Department of the Treasury RFC is considered unavailable for cancellation. ~ Field CFO*S shall prepare SF-1184, “Unavailable Check Cancel - lation,” to cancel unavailable Department of the Treasury checks, including instances where: i ji U Ii The payee initiatesa claim for the proceeds ofa check that has not been received or that has been lost, stolen, mutilated, or destroyed; AField CFO determines that the payee is not entitled tothe proceeds ofa check not in the possessionof either DOEor theRFC; The payee claims the checkwas stolen; or ● AField CFO requires aphotocopy of the check for administrative purposes. L The SF-1184must betyped and signed by unauthorized certify- ing officer. After detaching the DOE copy, the Field CFO shall forward the remaining copies of the SF-l184to the Department of the Treasury RFC. The Departmentof the Treasury will credit 89F3880, Unavail able Check Cancel lations and Overpayments–Suspense, when the checkis canceled. Whenan accomplished copy of the SF-1184 is returned from the Depart- mentof the Treasury, the actions indicated will be taken to clear the entry. ~ Detailed instructions for the preparation and use of the SF-1184are foundin TFMBulletin 83-28 andare includedin ITFM 4-7000. These instructions also contain procedures for the issuanceof checks replacing lost, stolen, destroyed, mutilated, or forged checks. (3) ~.The Departmentof the Treasury uses the Federal Reserve System’s ACHand FEDWIRE funds transfer networkto effect EFT payments. Adescription ofeach system and instructionson its use follow. ● 1-16 1-7-93 DOE 2200.6A Paragraph 3b(3)(a)~ (a) ~. FEDWIREis an FRB telecommunications network that provides foran Immediate transfer of funds. The system that pre- ceded FEDWIRE was the Standard Payment Subsystem of the Treasury Financial Communications System (TFCS), which was a computer-to- computer link between the Department of the Treasury and the Federal Reserve Communications System. FEDWIRE is only for payments over $5,000. The receiving party’s account is always credited the same day the funds transfer is processed by the Department of the Trea- sury. The requirements for processing FEDWIRE payments are provided below. 1 2 3 !4 &proval. Field CFO’s must request advance written approval from the Department of the Treasury through theCFO foreach classor type of payment activity. Because specific approval is required foreach classor type of payment activity, the Department must submitan additional request for each new class or type of payment activity thatis substantially different from those approved previously. Arequest for approval is also required at anytime that the average payment volume ofan approved payment activity is expected to increase substantially. Field CFO’s desiringto use FEDWIRE should submit alettertothe CFO requesting approval. The CFO’S staff will complete the questionnaire contained in appendix lof ITFM4-2500 and forward the questionnai re and letter request- ing approval to the Department of the Treasury Financial Manage- merit Service. FEDWIRE payment requests that are not coveredby a formal written approval will not reprocessed by the Departmentof the Treasury. Verbal approval maybe given in emergency cases by the Assistant Commissioner for Field Operations of the Financial Management Service. However. awritten request and formal approval must follow each such action.

DavPavw . EFT payment requests must be received bythe RFC in time to accomplish funds transfers before Federal Reserve Communications System closing time. To ensure same-day payment, SF-11660CR’s must be received by the RFCnot later than 1:00 p.m., eastern time. FEOWIRE will not be available tomake payments during any period oftime that the FRBof New York or the RFCis closed. Holidays. RFC’sauthorized to issue EFT payments will notify Field CFOOs of holidays observed by the RFCandthe FRB of New York. Field CFO’sareresponsibl efornotifying the RFCof holidays observed by banks that will bereceiving EFT payments. MaxiwuodJhWmum Dol 1 ar Amou . ntS. Under FEDWIRE, the maximum dollar amount that can be sent in a single payment transaction messageis $999,999,999.99. No single paymentin excess of this amount will be accepted for processingby the Department of the Treasury. The Oepartmentof the Treasury has the authorityto establish and revise the minimum doll aramount fora single payment transaction message within a particular class or typeof 1-17 DOE 2200.6A 1-7-93 Paragraph 3b(3)(a)~ payment activity. The minimum limitation is establishedby the ● Assistant Commissioner for Field Operations and ls includedin the Ietter of approval . J@ortinq. FEDWIRE payments shall be included with other DOE disbursements and reported infections Iand IIof SF224, “Statement of Transactions ,“asrequiredin ITFM 2-3000. Dan YCash Posltio~. The Departmentof the Treasury isrespon- slblefor the management of the Government’s daily cash position, and must renotified of large transactions affecting the Govern- ment’s cash position in advance of the timeof actual disburse- ment. Field CFO’s and others certifying payments of$50 millionor morein a single transaction or in multiple transactions ofa common nature that will be disbursed via FEDWIRE must report to the Department of the Treasury at least 2daysbefore the date of payment. The report will contain the nameof the Department, the intended dateof issuance, the name of the intended recipient, and theamount tobe disbursed. The information shall betransmltted by wire (commercial facilities, TWX 7108229201, 02, 03, or04) to: Funds Control Branch Accounting Group Financial Management Service Department of the Treasury Treasury Annex No. 1 ATTN: GAO Bldg., Room lOIO Washington, DC20226 Field CFO’s shall also notify the Department of Treasury Funds Control Branch if FEDWIRE disbursements of$50 millionor more will be madeon a repetitive basis or if such payments are known in advance. .Ewmi. The forms prescribed for use in scheduling payments via FEDWIRE arein ITFM 4-2500, appendix4. .Preparation and Distribution of SF-1166 OCR . A An SF-11660CR, ’’Voucher and Schedule of Payments, “isprepared in aboriginal and two copies to support and authorize payments madeby FEDWIRE. The original SF-l1660CRis forwarded to the cognizant Department of the Treasury RFC for payment process- ing, andone copyis retained. Appropriate documentation shall be retained by the preparing field elemental a site audit document in support of the SF-224, “Statementof Transactions.” b Information on individual FEDWIRE payments listed on SF-1166 OCR’smust be sufficient to permit identification of the ● 1-18 1-7-93 DOE 2200 .6A Paragraph 3b(3) (b) transaction by the receiving financial institution or final recipient. To the extent possible, multiple FEDWIRE payments shall belisted on each SF-11660CR submitted for processing. However, under no circumstances shall FEDWIRE payments be scheduled on the same SF-l1660CRas non-FEDWIRE payments. For information on completing the SF-l1660CR. see ITFM 4-2500.

9 ntsRetu rned Via FFOWIRE . jI Field CFO’s will be notified of FEDWIREpaYments that cannotbe made by the Department of the Treasury or cannot be identified by the receiving financial Institution or recipient. Field CFO’s will receive amodified SF-1098. “Scheduleo fCanceled Checks,” from the Department of the Treasury(I TFM4-2500, appendix), for the return of creditto its eight-digit ALC. Information is included in the ’’payee’’ column of the SF-1098to aid Field CFO’s in identifying the payment returned. This informationis as follows: 1 Date of payment: thedate that the original FEDWIRE payment was transmitted; jJ ALC: field element’s ALC: ti Schedule number: thenumber of the original SF-11660CR, “Vouchera ndSchedule of Payments .’’ requesting FEDWIRE payment; jy Deposit ticket number: the document control number, used by the RFC for internal purposes; and y Amount: the dollar amount of the FEDWIRE payment message returned. h Field CFO’s receivingan SF-1098 shall treat itasaminusdis- bursement document. FEDWIRE payments. less returned items. shall be reported as a net figureon the monthly SF-224, “Statemento fTransactions ,“ to the Department of the Treasury. c Anew SF-l1660CRmustbe submitted for a returned FEDWIRE payment that issent asecond time. (b) ted Clearlnu House Vendora. nd Miscellaneous Pavments . The Department of the Treasury’ sACH payment system is also called Direct Deposit EFT(DD/EFT) or Vendor Express. ACHdata are transmitted through theFRB network to the participating financial institution in the form of magnetic tapes or disks, computer printouts. orelec- tronic data transmissions. It normally takes 20r3 workdays fora 1-19 DOE 2200.6A Paragraph 3b(3)(b) financial institution to receive funds transferredby theACH system. 1-7-93 1 2 3 4 5 The following DD/EFT procedures have been condensed from Federal Agency Procedures for Vendor and Miscellaneous Payments (DD/EFT). prepared bythe Department of the Treasury Financial Manage- merit Service, Product Implementation Branch, ACH Conversion Section (10-86). That publication should be consulted for detail ed procedures concerning the establishment and operation of DDIEFT. Direct any inquiries concerning the use of DD/EFT to the CFO. To maximize DD/EFT use, the Departmentof the Treasury Financial Management Service has expanded the systemto include vendor and miscellaneous payments. Vendor payments are prepared on magnetic tape in the prescribed DD/EFT miscellaneous payments format. Administrative recovery by the Government of overpayments made under DD/EFT rests with the Department of the Treasury. To allow the Department of the Treasury RFCand the FRB sufficient processing time. payment data must be delivered tothe RFC 3work- days before the established payment date. The RFCwill document processing procedures and timeframes inan interface agreement ● between the RFCand the local FRB Reserve bank. Field CFO’s shall monitor invoice due dates and try to avoid frequent submission of low-volume tapes. c. J3eportlna a~l lina III sbursemnts with ~t of the Treiur.y . . . . . (1) Ee.portinq. SF-224, “Statemento fTransactions ,“ispreparedm onthly by each Field CFOwho has been assigned anALCto report net disbursements to the Department of the Treasury. The SF-224 shouldbe prepared by each Field CFOandtelecommuni catedto the Department of the Treasuryby the close of the5th working day after theclose of the calendar month. Power marketing administrations (PMA’s) do not report entries or records in a Financial Information System (FIS) format, but they do submit hard-copy documents (including the SF-224). which are recordedby the Departmental Accounting and Analysis Division ona summarized basis into FIS. The Bonneville Power Administration (BPA) reports directlyto the Department of the Treasury.

(a) chers-Paid BasQ . Disbursements normally shall be reportedon the SF-2240n the basis of schedules paid by Departmentof the Trea- sury RFC’s. Field CFO’s are authorized to include schedules with fixed payment dates–for example, payroll–in their monthly reports even though the paid schedule has not been received from the Depart- mentof the Treasury RFC before preparation of the SF-224. Ifa paid ● 1-20 1-7-93 L)OE 2200.6A P a r a g r a p h e d (2) SF-11660CR, “Vouchera ndSchedule of Payments,”is received too late for~nclusionin the report for the month in whichit was paidor accomplished, except as noted above for fixed payment dates, the transaction shall be reported infection Iofthe SF-224 for the sub- sequent month. The month in which the paid or accomplished document was received shall be identified in section II of the SF-224. (b) Vouchers-S@ltted Basis. . . Field CFO’s may record payments that have not been paid by the Department of the Treasury. To relieve complica- tions of reversing entries at month end caused by Departmentof the Treasury late notification of payment, Field CFO’smay report SF-224 payments on the basis of schedules submitted for disbursement. The SF-224 shouldbe prepared directly from information in the account- ing system. The SF-224 must contain the same disbursement informa- tion asis submitted toFIS, except forBPA, which does not report through FIS. f@mncilinq. The Departmentof the Treasury reports disbursement trans- actions by ALCand the month disbursement was made. Differences are sent bythe RFC toeach ALCon TFSForm 6652. “Statemento fDifferences Disburs- lng Office Transactions,” through GOALS access or on microfiche, for resolution. Each Field CFO shall work with the appropriate Departmentof the Treasury RFC to resolve differences between DOE and Department of the Treasury reports. Discrepanciesin ALC reporting shall be correctedby the reporting ALC on the SF-224 for the current month. For a comprehensive treatment of SF-224 reporting requirements, see DOE 2200.8B. ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.” and ITFM 2-3300. d. ~tra~vern.mental Bill lna ~ . m~. (a) ~. With GOALS. Field CFO’s can transmit and receive accounting data through a commercial time-sharing service via atelecommunica- tions network. The Departmentof the Treasury RFC-DOE link ofGOALS provides timely access by DOE to paid disbursement data. Thedis- bursement data arein acentral data base and available for online inquiries for60 days. Reconciliations can be accomplished through direct access to detailed data bveach ALC. All field CFO’s, includ- ingthose choosing not to access the RFC-DOE link, will receive microfiches as permanent records of detailed disbursement data. One component ofGOALS is the Online Payment and Collection (OPAC) System. The OPAC System establishes a standardized interagency billing and adjustment procedure via a telecommunications network. OPACisa menu-driven system that provides for both the billing and the adjustment aspects of the systemon one menu. As withall GOALS components, DOE bears the costsof online access. Field CFO’s using OPACwill no longer generate bill ingsby SF-1081, “VoucherandSched- ule of Withdrawals and Credit,’’ described in paragraph 3d(4). OPAC cannot be used to make payments to agencies for which the Department 1-21 DOE 2200.6A 1-7-93 P a r a g r a p h e d of the Treasury does notdlsburse funds (for example. the Department ● (b)

(c) (d) (e) of Defense). Mlllnas Be~ . . OPAC allows one Federal agency to charge anotherby entering the necessary billing data (for example, the amount, the customer ALC, and the description) into its onsiteterml- nals. The customer agency can then print bills charged toits ALCon the next day. The system _is updated overnight. Up-front edits elimi- nate the need for time-consuming adjustments to bflling information by rejecting incorrect submissions. ~. Upon consultation with the billing agency, thecus- tomer agency can access the OPAC System and enter an adjustment into the system. Computer-generated edits will be performed on several items, for example, the document reference number and the original billing ALC, to ensure that the adjustment is valid. Once the adjust- menthas been entered, the billing agency can access the systemon the next day to print the adjustment at its site. Jh?porting. New bills and adjustments must be entered by their respective cutoff dates: the24th of the month fornewbllls and the 28th of the month for adjustments. Unlike the SF-1081 system, the OPAC System requires billing agencies and customer agencies tobe responsible for reporting only their respective sides of the inter- agency transfers on SF-224 ”Statement of Transactions.” OPAC billing and adjustment data are retrievable online for the current ● month and the previous month. All reports are avail able onlinevla GOALS. TFSForm 6652, “Undisbursed/Receipt Account, Statementof Differences”; OPACand RFC/Agency Link are on microfiche. Waesfor Useof GOAIS. Each ALCusing GOALS shoul druna copyof its monthly billing statement ,whichis available around the18th workday of the followi ng month. This bill is not enteredon the SF-224, because the Department of the Treasury has already reduced DOE’s appropriation for the charge. (2) Simpljfiedmtraaoverwtal Bil 1 fna and Col 1 ection Svst em(SIBAC) was establishedby the Department of the Treasury to accomplish intragovern- mental purchases, sales, and payments in amore efficient manner. The Online Payment and Collection System was subsequently developed andis replacing SIBAC except for billings by the General Services Administration. (3) 66 oucher forTra nsfers BeWeen ADp roDriations W (a) fieneral. SF-108O, “Voucherf orTransfers Between Appropriations and/or Funds, “ is used when DOE does business with an”agency that does ● I-22 1-7-93 DOE 2200.6A Paragraph3e (4) (5) not submit an SF-224, “Statement of Transactions.” to the Department of the Treasury and requires payment or collection by check. (b) _Procedures. The SF-10801s only usedas abilling document byDOEto receive funds from agencies not using Department of the Treasury RFC’S. When billing onan SF-1080, complete the form through the “Certificateof the Office Charged” section. Send the original and two copies to the agency billed. Keep acopyofthe SF-1080 pending collection by check. When billed on an SF-108O, process the payment through the Department of the Treasury according to established disbursement procedures. For payment identification, place billing agency information on the check. As the billing agency, Field CFO’s deposit checks received according toestabl ishedcollection proce- dures. Detail ed instructions for use of the SF-1080 are foundin ITFM 2-2000. dard Form 1081. 4* oucher and Schedu leof Witlxlrawals and Credit m,.

(a) General. SF-1081, “Vouchera ndScheduleo fWithdrawal sand Credit,” is a combined billing and payment document for interagency payment transactions when both agenci es report on SF-224, “Statementof Transactions.” When an SF-1081 is used for a disbursement, the paying agency must reflect both the disbursement and the other agency ’s collection in section Iofthe SF-224. SF-11660CR, “Vouchera ndScheduleof Payments,’’ shall not beused withan SF-1081 . (b) proce@. The billing office must ensure the completeness and accuracy of billing documents to avoid disputes and errors. nciliation to the Dt2DW211fYIt of the TreasurY . After submission by Department of Energyof the monthly SF-224, “Statemento fTransactions ,“ the Department of the Treasury will furnish to DOE either TFSForm 6653, “UndisbursedA ppropriation Account,’’ orTFS Form 6655, “Unavailable Receipt Account Ledger.” The Field CFO shall use these reports to verify that customer reporting to the particular appropri ation, fund, or receipt symbol has been completed. If the reports show a discrepancy between amounts reportedby a customer ALC and the amount confirmed, the billing office shall immediately contact the customer office to determine the reason for the discrepancy. If it is determinedly the agencies that the Department of the Treasury has made the error, the billing office shall contact the Department of the Treasury. Disputed and erroneous transactions are discussed in ITFM 2-2000. e. ~.Public Law 100-86, The Competitive Equality Banking Actof 1987, was signed into law on 8-10-87. Title Xofthis law limits the time period for cashing Department of the Treasury checks, sig- nificantly reduces the time period for initiating reclamation actions and check claims, and establishes requirements for cancellations and distribution of proceedsof checks. Although the timein which to cash the checkis affected, a person or entity does not lose entitlementto the payment. Title X provisions I-23 DOE 2200 .6A 1-7-93 Paragraph 3e do not apply to DD/EFT payments or processing. The effective date for impl e- ● meriting provisionsof the law was Octoberl, 1989. Refer to TFM bulletin 90-03 and31 CFR parts 235, 240, 245, and 248 for more information on this topic. (1) .EQyabilitv is the length of time acheckcanbenegoti atedto a financial institution. Department of the Treasury checks dated on or before 9-30-89 must be cashedby 9-30-90. Treasury checks dated on or after 10-1-89 must be cashed within lyearfrom the date of issuance. (2) cl aimabl 1 ltv . . is the length of time during which a payee can present a claim of nonreceipt, loss, ortheft ofa check toan agency. (a) Before 10 1 89.- Apayee must present aclaimon a Departmentof the Treasury check;ssued before 10-1-89to the cognizant field office before 10-1-90. The Departmentof the Treasury must receivean SF-1184, “UnavailableC heck Cancellation,”or magnetic tapeof unavailable check cancellations prepared by DOE before 10-31-90. (b) Apayee must present aclaimon a Departmentof the Treasury chec~ issued on or after 10-1-89to the cognizant field office within lyear from the dateof issuance. The Department of the Treasury must receive an SF-11840r magnetic tape of unavailable check cancellations prepared by DOE within 13 months from the dateof issuance.

(3) ~tionis ademand by the Department of the Treasury forrefund of the ● amount of a check payment from the presenting bank or other endorser. Title Xreduces the period during which the Departmentof the Treasury may reclaim the amountof a check that has been paid over a forgedor unautho- rized endorsement. The Department of the Treasury considers the date of payment to be the date on which the Federal Reserve bank gives provisional credit for the item to the clearing bank. (a) Before 10 1 09- - . Asof 10-1-89, the Departmentof the Treasury cannot reclaimant checks paid by the Department of the Treasury before 4-1-88. For checks paid on or after 4-1-88, the Department of the Treasury has 18 months from the paid date to reclaim for payee claims and 12 months from the paid dateto reclaim for agency claims. (b) After 930 89- - . Asof 10-1-89, the Department of the Treasury has 12 months from the paid date to reclaim for agency nonentitlement claims and 18 months from thepaid dateto reclaim for payee nonreceipt claims. (4) L“m”1 lted PaYabilitYCance Qllatio . (a) Before 10 189- - . Not later than 4-1-91, the Departmentof the Trea- sury shall identify and cancel all checks issued before 10-1-89 that are still outstanding. No moneys shall be avail able to agencies from this cancellation. The Departmentof the Treasury will apply the ● I-24 DOE 2200.6A Paragraph 3e(6)(c) 1-7-93 a proceeds from these cancel edchecks to eliminate the balancesin accounts that represent uncollectible accounts receivable and other costs associated with the payment of checks and check claims by the Department of the Treasury on behalf of all payment-certifying agencies. Any remaining proceedswil 1 be deposited to the miscellaneous receipt accounts at the Department of the Treasury. (b) After 9 30 89- - . The Department of the Treasury will cancel all checks issued on orafter 10-l-89 that remain outstanding 12 months from the issue date. The Department of the Treasury will identify and cancel these outstanding checks during the 14th month after the issue date. The Department of the Treasury will forward the check proceeds to DOE through OPACand will provide as detail any identifying information provided by DOE in the original issue submission. The detail is also avail able monthlyon microfiche. Field CFO’s shall report the credits in section II of SF-224, “Statementof Transactions,” and shall classify the credits to the appropriation account from which the canceled check was issued or to its successor account. (5) Beve rsals of Limited Pavabil itv Cancellat ions. In some cases, the payee will negotiate the check toa financial institution within lyear from the date of issuance, but processing in the Federal Reserve System orin the Department of the Treasury’ s Check Reconciliation Branch will prevent the Department of the Treasury from applying the payment to the Check Payment and Reconciliation System before the limited playability cancellation has occurred. In these cases, the Department of the Treasury will reverse the limited payability cancellation credit previously provided to DOE and will providea copy of the paid item. This transaction will be separate from the monthly cancellation credit. (6) Accountlna for Chti Canu?led Under Titl e X . Provisions.

(a) The Field CFO shall return the proceeds from cancel edchecks tothe accounts from which the checks were issued originally or the succes- sor accounts. For annual, multiyear, and no-year appropriation accounts, the Field CFO shall treat the canceled checks as accounts payable. Ifthe Field CFO determines that the liability isnot valid, the funds then are available to the account or returned to surplus under normal yearend procedures. (b) In cases where the liability is valid, but no claim has been presented within 3years from the dateof the check. DOE shall return the funds to the Department of the Treasury through SF-2108, “Yearend Closing Statement,” for annual, multiyear, and no-year appropriation accounts. If the payee presents aclaimafter the funds have been returned, DOE shall restore the funds through the normal restoration process. I-25 (c) For deposit fund accounts and uninvested trust funds, DOE shall follow the procedures containedin ITFM 6-3000, “Paymentsof DOE 2200.6A Paragraph 3e(6)(c) 1-7-93 ● ( 7 ) (8) Unclaimed Monies and Refund of Monies Erroneously Received andCov- ered.” DOE shall retain funds from canceled checks from invested accounts. (d) The Field CFO shall keep any records necessary to recertify payments on obligations represented by the cancel ed checks. Funds from the canceled checks shall not beused to create newobligatlons exceptfn cases where the liability is determined not to be valid. ~.The Department of the Treasury will retain records of checks dated on or after 11-07-86 for 6%years, but will charge for copy or status requests made 18 months ormore after the issue date. As of 4-1-91, the Department of the Treasury will levy an annual charge for record storageon agencies. The Departmentof the Treasury expects the charge toDOEto be minimal and will allocate the charge byALC. .~j. An agency may certify anew payment upon receipt ofa claim concerning the nonreceipt, destruction, loss, mutila- tion, or defacement ofa check or upon the cancellation of acheckafter14 months. 4. CONTRACT FINAW PAYMENTS. a. Definition. “Contractf inancingpayment” means a Departmental disbursementof ● moneys to a contractor under a contract clauseor other authorization priorto acceptanceof supplies or services by the Department. Contract financing payments include advance payments: progress payments based on cost under the clause at title 48, section 52.232-16, of the Codeof Federal Regulations: progress payments based on a percentageor stage of completion (48CFR 32.102(e)(l)) other than those made under the clauseat title 48, section 52.232-5 (“Payments Under Fixed-Price Construction Contracts”), or the clause at title 48, section 52.232-10 (“Payments Under Fixed-Pri ce Architect-Engineer Contracts”), of the Code of Federal Regulations; and interim payments on cost-type contracts. Contract financing payments do not include invoice payments. b. .Due Date. The due date forsaking contract financing payments by the designated payment office will be the 30th day after the designated billing offi cehas received a proper request unless the terms of the contract specify another time period. In the event that an audit or other review ofa specific financing requestis required to ensure compliance with the terms and conditions of the contract, the designated payment officeis not compelled to make payment by the due date specifiedor to pay interestas specified in the Prompt payment Act.

c . Nonrecurring Contract Flnanclna Rew. . For advance payments, loans, or other arrangements that do not involve recurrent submission of contract financing requests, payment shall be made in accordance with theappllcable contract financing terms oras directed by the contracting officer. ● I-26 1-7-93 DOE 2200.6A Paragraph 6b(l) d. Proper contract Ffnawlng MuwW . . A proper contract financing request must comply with the terms and conditions specifiedby contract financing clauses or other authorizing terms. The contractor shall correct any defectsin requests submitted in the manner specified in the contractor as directed by the contracting officer. e. . The designated billing office and designated payment office shall annotate each contract financing request with the dates that a proper request was received in their respective offices. f. UestPW. Contract financing payments shall not be assessedan interest penalty for payment delays. 5. TSUNDFRFIWIALA~ . a. ~. The Department shall select the payment method under a grantor sub- grant with the objective ofminimizing the time elapsing between the transfer of funds from the Department of the Treasury and their disbursementby the grantee or subgrantee for grant or subgrant purposes. If the grantee or sub- grantee meets the requirements for advance payments, DOE shall make advancesby a Ietterof credit orby a Department of the Treasury check. Seeparagraph7 for information on letters of credit; Chapter II for information on advances: DOE 2200.9B, MISCELLANEOUS ACCOUNTING, Chapter IV, “Grants and Cooperative Agreements,” for informationon grants: and title lO, sections 600and 605, of the Code of Federal Regulations for information on assistance regulations, b. tit Stict to the Prompt Pavment Act . . Financial assistance instruments are not subjectto the Prompt Payment Act. Recipients of Federal assistance may pay interest penalties if so specified in their contracts with contractors. However, obligations to pay such interest penalties will not be obligations of DOE. DOE funds may not be used for this purpose. 6. AND CERTIFICATION OF INVOICFS. VOU~S. AND Cl~ . a. ~. Field CFOssandother offi cialsconcerned with the examination and paymentof invoices shall establish adequate procedures to safeguard against illegal or erroneous certifications and payments and shall implement any such measures as maybe necessary to effect recovery of amounts illegallyor erroneously paid. Refer to TFM4-2040 for informationon procedures for appointing certifying officers andtotitle 31, section 3528, of the United States Code, as amended, for the legal responsibilitiesof a certifying officer. b. -. (1) invoices are documents requesting payment for work performed. property and services delivered, or costs incurred. The terms “invoice,” “voucher,” and “bill” areused interchangeably in this chapter. I-27 DOE 2200.6A Paragraph 6b(2) 1-7-93 ● (2) Jnvoice Payments . “Invoice payment” means a Departmental disbursement of moneys toa contractor under a contractor other authorization for prop- erty or services accepted by the Department. Thfs tncludes payments of partial deliveries that have been accepted by the Government and final cost or fee payment where amounts owed have been settled between the Department and the contractor. Invoice payments also include all payments made under title 48. section 52.232-5 (“Payments Under Fixed-Price Con- struction Contracts”), andtitle 48, section 52.232-10 (“Payments Under Fixed-Price Architect-Engineer Contracts”). of the Code of Federal Regulations. Invoice payments do not include contract ffnancing payments.

(3) Lla.y. For purpose of paragraph 6, the term ”day’’ refersto a calendar day unless specffied otherwise. c. ~. The Prompt Payment Actof 1982 (Public Law 97-177) and the Prompt Payment Act Amendmentsof 1988 (Publfc Law 100-496), as implementedby OMBCir- cular No. A-125. ’’Prompt Payment,” require Federal agencies, t-o pay bills on time, pay interest penalties when payments are made late, and to take discounts only when payments aremadewithfn the discount period. Payments madeby prime con- tractors totheir suppliers are not subject to the Prompt Payment Act. However, prime contractors under construction contracts must extend prompt payment provisions to their subcontractors. The following policy statements applyto the examination and payment of invoices by DOE. ● (i) (2) (3) (4) (5) Pay all invoices as closeas possible to, but not later than. the contract specified due date or, if appropriate, the discount date. Thedate ofa Treasury checkis considered the payment date. For payments by electronic funds transfer, the date the contractor’s financial institution receives payment is considered the payment date. Refer to paragraph 6f(l) for determinationof the due date when the due date is not specifiedin the contract or purchase order. If the duedate fall son a nonworking day, then thedue dateis the next working day. Payment mustbe basedon recefpt of proper invoices and DOE acceptance of complete delivered property or services or approvals evidencing satisfac- tory performance of required work, for example, contractfngofffcer provisional payment approvals subject to later audit. Field CFO’s shall take discounts only when payments aremade within the discount period and only when economically justified, consistent with Department of the Treasury regulations (I TFM 6-8000). Under acquisition contracts, DOE must pay penaltiesin accordance with paragraph 6g when discounts are taken after the discount period has expired or payments are late. Payment shall be made onthebasis ofan original invoice. If the original invoiceis lost or destroyed, a duplicate shall be obtained from the ● contractor. I-28 DOE 2200.6A Paragraph 6c(15) (6) (7) (8) (9) (lo) (11) (12) (13) (14) (15) Vouchers must reexamined and approved for payment before they arecerti- fied for payment. Approved statistical sampling procedures may besubsti- tutedfor the examination of each individual voucher (see paragraph 6e(2)). Disbursements from theimprest fund are not subject to examination and approval priorto certification and payment unless the Field CFOso desires. Fast payment procedures, whereby paymentis made to a contractor based upon assurance that property has been shipped, rather than awaiting noti- fication that property has been received, shall be approved in advance by the CFOor Field CFOon an individual basis. See paragraph 6f(4) for details. Vouchers; SF-11660CR. “Vouchera ndScheduleof Payments”: and supporting documents shall be marked or canceledso as to prevent their bein9 pro- cessed for payment fora second time. Documents sub.ject to subsequent use unmechanical or computer systems, such as card transaction requests, shall be markedin such away as to avoid mutilation. Designated officials shall promptly inspect property or services to ensure that prompt payment schedules aremet. Progress payments shall be made on the contract-speci fied due dates: if none are specified, make payments as close as possible to. but not later than, the30th day (14th day for fixed-price construction contracts) after receipt of the contractor’s request for payment by the contract- designated billing office.

Priority shall be given copayments to minority and small businesses only to the extent that it ensures timely processing ofinvoi ceson or before payment due dates. Payments for meat, meat food products. poultry, eggs, and egg products shall be madeas closeas possible to, but not later than, the7th day after the date of delivery, unless another dateis specified in the contract. Payments for perishable agricultural commodities shall be madeas closeas possible to, but not later than, the IOth day after the date of delivery unless another dateis specified in the contract. Payments for dairy products (including, at aminimum. liquid milk, cheese. certain processed cheese products. butter, yogurt, and ice cream), edible fats oroils, and food products prepared from edible fatsor oils (includ- ing mayonnaise, salad dressings. and other similar products), shall be madeas close as possible to, but not later than, the IOthday after the date onwhich aproper invoice is received. I-29 DOE 2200.6A Paragraph 6c(16) 1-7-93 ● (16) Payment for transportation of persons or property foror on behalf of the United Statesby acarrier or forwarder shal 1 be made within 30days after receipt of bills by the designated billing office (the office designated in the contract or purchase order to receive invoices). Transportation bills may be paid before GSA performs the rate audit. (17) Certifying officers have the right toapply for and obtain decisions from the Comptroller General before certifying a payment when aquestion of law is involved on apayment or a voucher presented for certification. The contracting officer must be promptly notified of such actions. d. ~. In order to ensure that payments are properly authorized and correct the following documents are usually required: a contract, an invoice, and a receiving report or equivalent. (1) Contract. Each payment must be based on a valid contract, purchase order, or similar contractual document. To make payments to a public utility, it is not necessary tohavea contract, regardless of the amount or the number of payments to be made, when the utilities rates have been fixed or adjusted by Federal, State, or other regulatory bodies, unless a contract is in the best interest ofDOE. Apublic utility service is not requiredto furnish rate schedules if it supplies unit rates orif the invoicesor bills from the utility show the total amount of the services furnished, the unit rates charged for the services. and the total amount charged. This does not preclude the use of aDOE contract when the utility company ● requires an agreement or contract for the furnishing of services. (2) -LnYrdm. (a) J@.uired Info~. Invoices sent to DOEshoul dbe preparedin accordance with the terms and conditions of the contract or purchase order. Aproper invoice must include the following: 1 2 3 4 5 6 The name and mailing address of the contractor and the invoice date: The contract numberor other authorization for deliveryof property or services; The description, price, and quantity of property or services actually delivered or rendered, as stated in the contract; Shipping and payment terms, inapplicable; Other substantiating documentation, as required bythe contract; and The name, (where practicable), title, telephone number, and complete mailing address of the responsible offi cial to whom the payment istobe sent. 1-30 DOE 2200.6A Paragraph 6e(l)(b)

(b) ~. payment shall be made on the basis of an original invoice. Should the original invoice belost or destroyed, aduplicate should reobtained from the contractor. A full explanation of the circumstances of the loss or destruction of the original invoice and a statement that steps have been takento prevent duplication of the payment mustbe added or attached tothe duplicate invoice before it can be processed for payment. Adequate systems of internal controls shall be provided to ensure thatno duplicate payments can occur under this procedure. (3) J/eceivlna_. Receiving reports or other notifications of acceptance received by the payment office must include the following: (a) The contract orother authori zation number: (b) Description of property or services received: (c) (Mantities received and accepted, inapplicable; (d) The date(s) that property or services were delivered; (e) The date(s) that property or services were accepted: and (f) The signature, printed name, title, telephone number and mailing address of the receiving official. e. ~. (1) Actions Required Prior to Paymti . The prepayment actions specified below must take place withas little delay as possible. Proper procedures will ensure that payment officials have a valid contract that contains the required accounting data; all applicable amendments, with appropriate accounting data: and evidence that property or services have been received. inspected, and accepted or that the contracting officer or designee has approved the invoiced amount for payment. (a) The invoice shall be stamped with the dateit is received in the designated billing office, and recordedas received. DOEmaydesig- nate another agency or cognizant audit agency to receive contract invoices and may delegate to that agency the authority to approve for payment some invoices for cost reimbursement contracts. Such agen- cies must date the invoices or public vouchers to show when they were received. The date represents constructive receipt by DOE andis the date that should beused in timing payments. (b) DOE officials authorized to approve receiving reports must forward the approved documents to the appropriate DOE Field CFO for payment processing sufficiently in advance of the payment deadline to allow the documentation to be reviewed and to notify contractors of any 1-31 l— DOE 2200.6A Paragraph 6e(l)(b) (c) (d) (e) 1-7-93 ● problems detected before penalties mustbe added to the amounts payable. Invoices offering discounts should be identified early in the payment process soasto schedule the payment to meet the discount date if cost-effective. All invoices shall be examined for accuracy and completeness and con- sistency with the terms, conditions, and deliverables specifiedln the ordering document. If, on examination, the invoice is foundto be incomplete orimprop- erly prepared, the contractor mustbe notified within 7 days of its receipt (3days for meat, meat food products, poultry, eggs. and egg products and5 days for perishable agricultural commodities ordairy products, etc.). The notice maybe given orally and confirmedin writing. Local procedures shall stipulate whois responsible for providing this notification. (z) ~. Accomplishment of the above steps constitutes unofficial basis for making payment. Statistical sampling procedures may be used in the prepayment examination of disburse- merit vouchers for amounts notin excess of $2,500. Specific instructions on how to use statistical sampling procedures to examine vouchers are found in 7GA0, Appendix III, “Use of Statistical Sampling Procedures in

● Examinationof Vouchers for Payment.” Title 31 U.S.C.. SectiOn 3521(C) allows that any disbursing or certifying official relying in good faithon a statistical sampling procedureto disburse funds will not be liable for losses to theGovernment resulting from payment or certification Ofa voucher not audited specifically because of the useof a sampllng proce- dure. provided that collection actions prescribed by the Comptroller General have been diligently carried out. Field CFO’s have the primary responsibility for establishing a sampling plan consistent with theGAO instructions. The CFO has this responsibility for Headquarters. (3) . estfor Prouress Pav~tl on (lmtracts . The follow- ing information must be included in each request for a progress payment under a construction contract: (a) Substantiation of amounts requested including: 1 An itemizationof the amounts requested related to the various elements of work required by the contract covered by the payment request; Z Alisting of the amount included for work performed byeach subcon- tractor under the contract: ● I-32 1-7-93 DOE 2200.6A Paragraph 6f(l)(c) 2 Alistingof the total amount of each subcontract under the contract: 4 Alfsting of the amounts previously paid to each such subcontrac- torunder the contract: 5 Additional supporting data In a form and detail required by the contracting officer. (b) Certification by the prime contractor, tothebest of the contractor’s knowledge and belief, that: 1 The amounts requested are only for performance ln accordance with the specifications, terms, and conditions of the contract; Z Payments to subcontractors and suppliers have been made from ‘“ previous payments received under the contract, and timely pay- merits will be made from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of Chapter 39. title 31 U.S.C.; and a The application doesnot include any amounts which theprime con- tractor intends towithhol dorretain froma subcontractoror supplierin accordance with the terms and conditions of their subcontract. f. ~. (1) ~. (a) Payments should rescheduled so that they aremade as close aspossi- bleto, but not later than, the date specified in the contract. Also, payment maybe made no more than 7 days prior to the payment due date, unless the CFOor Head of Field Element or designee has determined, on a caseby<ase basis for specific paymentso that earlier payment is necessary. Ifno dateis specified in the contract. payment shall be scheduled to bemade onthe30th day after receipt of invoice. See paragraph f(2) below for further clarification. (b) When adiscount is taken, the payment shall bemadeas closeas possible to, but not later than, the discount date. (c) Payments formeator meat food products, including edible freshor frozen poultry meat, any perishable poultry meat food product, fresh eggs, and any perishable egg product shall be madeas close aspossi- bleto, but not later than, the7th day after the date of delivery, unless otherwise specified in the contract. I-33 DOE 2200.6A 1-7-93 ●Paragraph 6f(l)(d) (d) Payments for perishable agricul tural commodities shall be madeas close as possible to, but not later than, the IOth day after the date of delivery. unless another date is specified In the contract.

(e) Payments for dairy products (including, at aminimum, liquid milk. cheese, certain processed cheese products, butter, yogurt, and ice cream), edible fatsor oils, and food products prepared from edfble fats oroils, (including. at aminimum. mayonnaise, salad dressings, and other sfmilar products), shall be madeas closeas possible to, but not later than thelOth day after the date onwhich aproper invoice for the amount due has been received. (f) For construction contracts ,progress payments mustbe paid as close as possible to, but not later than, the14th day after receiptof payment request from the contractor, unless the contract specifies otherwise. (g) When an invoice is received which contains items with different payment periods, finance offices: 1 Should pay in accordance with the contractual payment provisions (which may not exceed the statutorily mandated periods specified in paragraph 6f(l)(c),(d), and (e)); 2 Must pay interest if payment is made so that some items are paid for after their due dates; 3 May spl It payments, making payment by the due date applicable to each category: q May not require contractors to submit multiple invoices for payment of individual orders by the agency; and 5 May encourage but may not require contractors to submit separate invoices for categories of products with different payment periods. (2) B.ec.eiptof Invoiu. For the purpose of determining payment due date and thedate on which interest will begin to accrue, an invoice shall be deemed to be received: (a) Onthe later of: 1 The date a proper invoice is actually received by the designated bi 11 ing office, if the bil 1 ing office annotates the invoice wfth date of receipt at the time of receipt; or 2 The 7th day after the date on which the property is actually deliv- ered or performance of the services is actually completed; unless: I-34 DOE 2200.6A Paragraph 6f(4)(c)L 1-7-93 e ~ The property orservfces are actually accepted before the7th day (in which case the acceptance date shall substitute for the 7th day after thedelfvery date), or h Alonger acceptance period is specified in thesolicitati on and included inthe contract to afford the Department apracticabl e opportunityto inspect, test, and accept the property orevalu- atetheservfces (in which case the date of actual acceptance or thedate onwhich such longer acceptance period ends shall substitute for the7th day after the delivery date); or (b) On the date placed on the invoice by the contractor, fnany casein which DOE fails to annotate theinvotce with the dateof receiptat the time of receipt (such invofce mustbe a proper invoice). (3) ~. when a receiving report is used, it mustbe recefved by the paying offfce from the approving offi- cial within 5workfng daysof acceptance of the property or services unless other arrangements are made. If a contract does not specify aperiod to accept property or services. the acceptance period shall be7 working days after delfvery of propertyor services, unless acceptance occurs sooner. Receiving reports and invofces will be stamped or otherwise annotated with the date upon recefpt in the payment office. The approving official must ensure that the invofce contains the data necessary for prompt payment processing, for example. the contractor other identffyfng number anda breakdown of bflled costs by budget and reporting code. If propertyor services have not been received orff the terms of the contract have not been met. the designated approving official shall notffy the procurement and payment offices fmmedfatelyof the problems and the corrective actfons that have been fnftiated.

(4) ~. In some situations, paymentmay bemade wfthout evfdence that property has been recefved. A contractor’s certifi- cation that property has been shipped may be used to authorize payment. This procedure may be used only when all the following condftfons exist: (a) Individual orders do not exceed $25.000. unless permfttedbythe CFO on a case-by-case basfs. (b) Property is to redelivered where there are both ageographt cal separation and a lackof adequate facilities for communications between DOEreceivfng and finance offices, making it fmpractfcable tomaketfmely payments basedon evfdence of DOE acceptance. (c) Title to the property vests in the Government: 1 Upon delivery toa post office or common carrier formailingor shipment; or I-35 I I DOE 2200.6A Paragraph 6f(4)(c)z 1-7-93 ● 2 Upon receipt by the Government, if the shlpmentls bymeans other than theU.S. Postal Service ora common carrier. (d) The contractor agreesto replace, repair, or correct property that was not received at destination, that was damaged in transit, or that does not conform to purchase requirements. 9 . J2kcmmA. (a) Take discounts only when it is cost-effective, as specifiedin paragraph 6g(3), and only after propertyor services have been accepted. (b) When discounts are offered for early payment ofinvoi ces, the invoice shall be ’’aged’’ for discount purposes from the date placedon the proper invoice by the contractor tothe discount date. To compute the discount earned, payment shall be considered to have been made on the date of the payment. All payments containing discounts shall be scheduled for issuance as close as possible to, but not later than, the last day of the discount ~eriod. (c) Adiscount must not betaken when payment is made after the discount ●period has expired. Take discounts under bids or written agreements covering purchases of property only when contractors offer such dis- counts. Discounts statedon pro forma invoices shall be takenon pur- chases madeon the open-market without special authorization from the contractors. For a trade-in-allowance, compute the discounton the total contract price, not on the trade-in-allowance. If payment is made in the gross amount, explain on the voucher why the discount offered was not taken. (d) Payment systems shall incorporate procedures that automatically take advantage of cost-effective cash discounts and, to the extent possible, eliminate the need for special handling. (2) Cdl CU1 atl on of Di s~d . . Calculate the discount period from the date placed on the invoice by t~e contractor to the discount date. (3) mination of Cost-Ffff?ctivew . Take discounts only when thedis- count rate offered is equal toor greater than the current value of funds rate in the Department of the Treasury. The Department of the Treasury issues a quarterly bulletin inthe~ral Rem and bulletins to the TFMtohelp agencies determine the discounts that should be taken. Each field element may develop itsown look-up table to help determine cost- effective discounts. Interest costs should redetermined by each Field CFO and factored into the calculation to determine the cost-effectiveness of taking a discount. (See Attachment I-2. ) ● I-36 1-7-93 0 DOE 2200.6A Paragraph 6h(l)(d)Z

(4) ~.Economically advantageous purchase dis- counts lost shall be charged to the same object class and budget and reporting classification as the original contractor purchase order. Discounts lost for contracts or purchase orders funded by multiple budget and reporting classifications or appropriations should be prorated in proportion tothe costs of goods and services acquired. Discounts lost related to plant and equipment acquisitions shall immediately be written offas anon-fund charge to cost of operations. h. J&u_alties. The following requirements for penalties areapplicabl etoall Field CFO’s. (1) ~. Interest penalties shall bepaid as required by the contract’ sspecified payment terms and conditions. Ifno payment terms are specified in the contract, penalties shall be paidas required by the Prompt Payment Act Amendments of 1988, regardless of date of contract award or modification. The previously available 15-day grace period in whichto make payments without incurring penalties was eliminated by the 1988 amendments. (a) Payments shall be considered late if not paid by thedue date and interest penalties shall bepaid. (b) Pay interest penaltiesof $1.00 ormore automatically tothe partyto which the contract, purchase order, or other contractual arrangement has been awarded. (c) Pay interest penalties outof funds made available for the procure- mentof propertyor services delivered. Penalties shall be charged to the same object class and budget and reporting classification as the original contract or purchase order. Prorate penalties for con- tracts or purchase orders fundedby more than one budget and report- ing classificationor appropriation. Penalties related to plant and equipment acquisitions shall immediately be written off as a non-fund charge to cost of operations. Interest penalties are subject to fund limitation, and fund avail ability mustbe assured. See Attachment I-3 for sample notificationof a program official that a penalty has been charged to the program. (d) Payments shall accrue interest if they meet the provisions ofpara- graph 6h(l) and ifall the following conditions have been met: 1 Avalid contractor purchase order exists for the acquisitionof property or services: Z Inaccurate, complete invoice from the contractor or specific contract authority, such as some periodic lease payments, has been received; and I-37 DOE 2200.6A Paragraph 6h(l)(d)~ 1-7-93 (e) (f) (g) a Acceptance of property or services has occurred and there is no disagreement over quantity, quality, or other contractual provisions. If timely payments are preventedby the temporary unavailability of funds, when funds become available, the contractor is entitled to payment with late payment interest penalties. If adiscount is taken after the discount period hasexpi red and the Field CFO fails to correct the underpayment by the payment due date, the underpayment and interest penaltieson the underpayment shall be paid. Interest penalty calculations shall be based ona 360day peryear in accordance with the following guidelines: Apply the appropriate interest rateas established bythe Secre- taryof the Treasury under section 120f the Contract Disputes Act of 1978 (41 U.S.C. 611). Whenevera payment is made late, include interest with the payment at the rate in effect onthe day after the due date. The rate established by the Contract Disputes Actis referred toas the “Renegotiation Board Interest Rate” and is published in the Federal-Regi ster semiannually on or about Januaryl and Julyl.

Compute interest from the day after the due date through the payment date, and state the amount separately onthe checker accompanying remittance advice. Make estimates for the timelag between the date payment is scheduled and the date of the check. Adjust time estimates as required. When an interest penalty isnot paid, accrue intereston the unpaid amount forl year or until paid. whichever occurs first. Add interest penalties remaining unpaid forany 30-day period to the principal . Interest penalties will accrue monthlyon the total of the principal and previously accrued interest. (See Attachment I-4.) When adiscount is taken after the discount period has expired and corrective action is not takenby the payment due date, calculate the interest on the amount of the improper discount taken for the period beginning theday after the end of the discount period through the expected payment date. (See Attachment I-5.) Whena contractor submits an invoice thatis deemed improper, notify the contractor within 7days (3days for meat, meat food products, poultry, and eggs and5 days for perishable agricultural commodities and dairy products) from the date the invoiceis received in the office designated in the contract to receive invoices. If the contractor isnot notified bythe Field CFO within the appropriate time period, reduce the number of days ● allowed for payment of the corrected invoiceby the number of days I-38 @ 1-7-93 (h) (1) (j) DOE 2200.6A Paragraph 6h(2)(a)Z between the7th day (3rd day for meat and meat food products. and 5th day forperfshable agricultural commodities and dairy prod- ucts) after receipt of the invoice and the day thenotificati on was transmittedto the contractor. Calculate interest penalties on the adjusted due date, reflecting the reduced number of days allowed for payment. (See Attachment I-6. ) Interest penalties are due on payments made after the payment due date for amounts retained during contract performance and released after completion of the contract. This applies to all types ofcon- tracts not excluded by paragraph 6h(5) when complete delivery and acceptance have occurred. Interest not paid within 30 days shall be compounded every30 days. Contractors shall be notified in writingof the amount of interest penalty, the interest rate used to calculate the penalty, and the period oftime towhich the penalty applies. The contract number and any invoice number should be included to assist the contractor in reconcil ing the payment. (2) tof Interest PwltlPs Under Construction Contracts. . . Interest penalties shall be paid as requiredby the contract’s specified payment terms and conditions. If no payment terms are specified in the contract, penalties shall be paid as required by the Prompt Payment Act Amendmentsof 1988, regardless of date of contract award or modification. (a) For construction contracts pay interest on: 1 A progress payment request (including a monthly percentage of completion progress payment or milestone payments for completed phases, increments, or segments of any project) that is approved aspayable by the Department pursuant to paragraph 6e(3) and remains unpaid for: A Aperiod of more than 14days after receipt of the payment request by the designated billing office or h A longer period, specified in the sol I citation, if required to afford the Government apracticable opportune ty to adequately inspect thework andto determine the adequacy of the contractor’s performance under the contract.

Z Any amounts that DOE has retained pursuant toaprtme contract clause providing for retaining a percentage of progress payments otherwise due toa contractor and that preapproved for releaseto the contractor. if such retained amounts are not paid to the con- tractor byadate specified in the contract, or, inthe absenceof such a specified date, bythe30th day after final acceptance. I-39 DOE 2200.6A Paragraph 6h(2)(a)a 1-7-93 ● a Final payments based incompletion and acceptance of all work Including any retained amounts, and payment for partial perfor- mances that have been acceptedly the Department if such payments are made after the later of: a The 30th day from the date on which the designated billing office receives a proper invoice; or D The 30th day after DOE acceptance of the completed workor services. Acceptance shall be deemed to have occurred on the effective date of contract settlement on a final invoice where the payment amountis subject to contract settlement actions. For the purposeof computing interest penalties, acceptance shall be deemed to have occurred on the7th day after workor services are complete in accordance with theterms of the contract. (b) Certification by the prime contractor is not to be construedas final acceptanceof the subcontractor’s performance. (c) DOE shall return any such payment request which is defective tothe contractor within 7days after receipt, with a statement fdentifylng the defects. (d) Acontractor isobllgatedto pay interest to the Government on ● unearned amounts in Its possession from: 1 The 8th day after receipt of funds from DOE until the date the contractor notifies DOE that the performance deficiency has been corrected orthe date the contractor reduces the amount of any subsequent payment requestby an amount equal to the unearned amountin its possession. when the contractor discovers that all or aportion ofa payment received from DOE constitutes a payment for the contractor’s performance that fails to conform to the specifications, terms. and conditions or its contract wfththe agency, under31 U.S.C. 3905(a); or Z The 8th day after the receipt of funds from DOE untfl the date the performance deficiency of a subcontractor is corrected or the date the contractor reduces the amountof any subsequent payment requestby an amount equal to the unearned amount in its posses- sion, when the contractor discovers that all ora portion ofa payment recefved from the agency would constitute apayment for the subcontractor’s performance that fafls toconform to the subcontract agreement and maybe withheld, under 31 U.S.C. 3905(e). 1-40 DOE 2200.6A Paragraph 6h(5)(b) (e) Whenacontractori so bligated to pay interest on unearned amountsto DOE under 3905(a) or 3905(e), as described in paragraph (d) above, the interest shall : 1 Be computed at the rate of average bond equivalent rates of 91-day Treasury bills auctioned at the most recent auction of such bills prior to the date the contractor received the unearned amount: z Be deducted from the next available payment tothe contractor; and 3 Revert to the Treasury. (3) Enaineer C o n _ . Interest penalties shall be paid under Architect Engineer contracts when the provisions of the contract specify that penalties apply. If no penal- ties for late payment of afinal invoice are specified, penalties shall be paid as requiredby the current provisionsof the Prompt Payment Act, as amended. Penalties for late progress payments must bespecifi edinthe contract andas such preestablished as amatter of policy in applicable procurement regulations.

(4) ~.An additional interest penalty equal to IOO%of the original late payment interest penaltyis required to bepaid to contractors under certai n conditions. The additional penalty shall not be greater than $2,500 for twoyears from 1-21-90. after which the addi- tional penalty shall not be greater than $5.000. Regardl essof the amount of the late payment interest penalty, the additional interest penalty paid shall not be less than $25. These additional penalty provisions do not apply to the payment of utility bills. A contractor is entitled to an additional interest penalty when the contractor: (a) Is owed alate payment interest penalty; (b) Receives apayment after the payment due date which does not include the interest penalty due to the contractor: (c) Is not paid the interest penalty by DOEwithin10 days after the date on which the payment is made; (d) Makes awritten requestto DOE for regular interest penal ties aswell as additional interest penalties nolaterthan40 days after the date on which the late payment is made. (5) Not S@ctto Penalti~. . The following payments are not subject to penalties: (a) Interim payments undercoat reimbursement contracts. (b) Progress payments basedon apercentage orstageofcompl etion (other than construction or architect-engineer contracts ). 1-41 DOE 2200.6A Paragraph 6h(5)(c) 1-7-93 (c) (d) (e) (f) (g) (h) (i) (j) (k) Advance payments. Payments made solely for financing purposes. Contracts for utilities (gas, watero electricity) or informal con- tracts for the purchase of utilities that include provisions for late-payment charges establ ishedby tariff or State regulatory commissions. Payments onwhich the interest penalty would belessthan$l. Payments madeto recipients of grants oriFederal assistance. Payments to Federal employees. Payments to Federal agencies. Payments of amounts withheld or deducted from invoicesby the con- tracting officer, approving official, or Field CFO’s, in accordance with contract terms. (Penalties are not applicablebefore the amounts are released. Once the contractis completed and these payments are released, interest penal ties apply. ) Payments delayed because of disagreement over the amountof payment or other issues concerning compliance with the contract. ● i. ~. OMBCircular No. A-125 requi resthat Federal agencies establish aquality control (QC) program to ensure that pay- ments are madein accordance with OMB Circular No. A-125, to providea reliable way to estimate payment performance, andto ensure the integrity of prompt payment reporting. As such, the following guidelines have been establ~shedas standards for the quality control program. (1) WUIWdii. (a) QCmustbe a systematic performance measurement system in place at each Field CFO which will provide managers information about problems and assist in targeting corrective action. (b) QCdatamust be accuratewithin the confidence level of90%witha precision of+or- 10%, (c) Data should be gatheredas frequently asneeded bythe cognizant Field CFO to identify and correct errors, but not less frequently than annually, and if only annually, at the end of each fiscal year. The annual review shall cover the entire preceding fiscal year. Frequent staff turnover, significant increasesor changes in the nature of procurement actions, changing prompt payment requirements, and prior deficiencies are situations requiring more frequent gath- ering of data. If data are gathered more frequently than annually, a

I-42 DOE 2200.6A Paragraph 6i(2)(b)~ for example, quarterly, the data shouldbe gathered basedon avalid statistical sample drawn following each quarter of the fiscal year. (d) QCreviewers must use original documents and repeat original calculations. (e) When atotal review is not possible, data should be gathered on the basis ofa statistically valid sampl esufficient to assure reliabilityof QC reviews without unduly burdening finance office resources. (f) Collection of data must be performed by persons independent from the original payment decision. (g) Analysis of QCdatamustresul tin remedial action targetedto correct objectively determined error causes. (2) Procedures for DepdMaemtal (lual ity Control Proara.m . Field CFO’s shall use the following procedures to performa quality control review. (a) Reviewers shall: Selecta statistically valid random sampleof sufficient sizeto provide a90% confidence level o+or- 10%, that sample data are representative of the overall population. See Attachment I-13for determination of sample size and Attachment I-14 for checklist of items to verify. Gather sample data generated from original documents and repeat original calculations to assess prompt payment performance. Compare data generated from sample to system generated datato determined the accuracy of system generated data. Report findingsto the Field CFO. (b) Field CFO’s shall: 1 Select persons independent of the original payment decisionto perform QC reviews. 2 Determine thecause of any deficiency in payment performance or error in the system generated data. a Implement appropriate action to correct any deficiency or any error causes. A When a significant deficiency or error is discovered (e. g., that payment due date is routinely based on receipt of invoice only), conducta follow-up review of data for the quarter following corrective actionsto ensure deficiency orerror has been I-43 DOE 2200.6A 1-7-93 Paragraph 6i(2)(b)~ eliminated. The follow-up review shall also be performed on the ● basis of avalid statistical sample. S Maintain appropriate documentation related totheforegolng activities. Such documentation shal 1 be made available upon request to the CFO or designee. (1) Field CFO’s shall submit prompt payment reports In the format and atthe frequency determined bythe CFO. At aminimum, the reports shall resub- mitted to the CFO annually to satisfy the reporting requirements contained in OMBCircular A-1250 Prompt Payment, or other requirements that may be imposed byOMB. The reason for significant changes in level of activityor performance from the prior period must be explained in the reports. Refer to DOE2200.8B, Chapter III, “External Reporting,’’ for additional information. (2) Field CFO’sshould use actual data in the reports. However, to minimize the cost of reporting. valid statistical sampling methods maybe usedto derive the required information for reports. The use of statistical sampling methods must be disclosed in the Quality Control Section of the reports. (1) Qwzal. Collection of claims owed the United States by offset is covered in 10 CFRpart1015 and in DOE 2200.6A, FINANCIAL ACCOUNTING, Chapter III, “Receivables.” (2) ies on Behalf of DOE . DOE may request another agency to withhold a payment to a contractor when that contractor owes money to DOE. The other agency will make the payment directly to DOE for credit to the proper DOE field element.

(s) ~. Offsets against employees are covered in DOE 2200.2B, COLLECTION FROM CURRENT AND FORMER EMPLOYEES FOR INDEBTEDNESSTO THE UNITED STATES. (4) Davis-Bacon Act and Contract Work Hours and Safetv St~rds Act . Under the Davis-Bacon Act (40 U.S.C. 276a), the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332(3)) DOE may withhold amounts otherwise due a contractoras amatter of ensuring that full wages will be paid its employees. Amounts withheld shall be sent to GAO Claims Division witha completed SF-1093, “Scheduleo fWithholdings Under the Davis-Bacon Act and/or the Contract Work Hours and Safety Standards Act,” in duplicate. A schedule of the underpayments withheld, showing names of employees, current addresses, social security numbers, dates and hours ofworko and classifications and rates at which paid, together with any claims received from the employees, shall be attached to SF-1093. GAOis responsible for m I-44 1-7-93 DOE 2200.6A Paragraph 7b(6) paying aggrieved employees amounts towhich they are entitled and for settling claims by contractors based upon amounts withheld. See4GA0. Claims, for additional information. 7. LmmMuwm. a. &neral. Letters of credit areused for cash advances to recipients of finan- cial assistance awards, contractors, and other organizations. A checks-paid letter of credit is used to reimburse contractors for work already performed. Before a letter of credit can be established, authority for advance payments mustbe contained in the financial assistance award, contract, orotherinstru- merit obligating DOE funds. If advance payments are authorized, lettersof credit shall be used whenever the criteria for their use aremet, as determined by the Field CFO. Letters of credit are not generally applicable to loan programs: however, they should reconsidered for applications to loans carry- Ing interest rates that are lower than Department of the Treasury borrowing rates. For additional information, refer to DOE Assistance Regul ations (1OCFR 600), Federal Acquisition Regulations (48 CFRet seq.), ITFM6-2000 and 6-2500, and OMB Circulars A-102 and A-110. (1) (2) (3) (4) (5) (6) The letter of credit shall be the financing method used whenever there is a continuing relationship with a recipient or contractor for at least lyear, involving annual advances aggregatingat least $120,000. Advances shall be limited to the minimum amounts needed and shall betimed to be in accordance with actual and immediate cash disbursement requirements to carry out the approved programor project. The timing and amountof the cash advances shall beas closeas is adminis- tratively feasibleto actual disbursements for direct program costs and for the proportionate share of any allowable indirect costs. Advances may bemade for accrued expenditures, but only to the extent that they represent immediate disbursement needs of theholder of the letterof credit. Each Field CFO shall try to consolidate all advance funding to the same recipient organization under one letter of credit. To achieve this objec- tive. all advance funding to the recipient organization shall be considered. When a contractor receiving cash advances has demonstrated an unwilling- ness or inability to establish procedures that will minimize the time elapsing between cash advances and the disbursement thereof, the DOE Field CFO shall advise the contracting offi certo terminate advance financing unless termination is prohibited by the statutes governing the pro- gram(s). Aletter of credit also may be revoked for other material finan- cial management or administrative deficiencies. Before revokinga letter of credit, the Field CFO, in consultation with the contracting official,

I-45 DOE 2200.6A 1-7-93 Paragraph 7b(6) may reject specific requests for fundsor request the Department of the e Treasury RFCto suspend the letterof credit for aspecific period of time. If these steps do not obtain compliance from the recipient or contractor, then the letter of credit maybe revoked. The recipientor contractor will then be paidon a reimbursement basis. (7) Aletter of credit is a commitment, certified by unauthorized certifying officer, specifying a dollar limit available to a designated payee. Payment on a letter of credit is by delegation of the Departmentof the Treasury at the request of DOE. Aletter of credit is irrevocable (the equivalentof cash available to the recipient or contractor organization) to the extent that the recipient or contractor organization has committed funds in good faith thereunderin accordance with the contractor other agreement. (8) Use of letters of credit shall be covered bya clausein the grant. contract. or other financing agreement. (1) ~-. The Department uses two methods offending organizationsby letters of credit. The first method is the checks-paid letter of credit, which is used to finance major contractors. Contracts authorizing the use of checks-paid letters of credit contain the contract clauses of DOE Acquisition Regulations (DEAR) Subpart 970.32, “ContractF inancing.” Cash withdrawals by this method are determined by the total of checks a issued by the contractor and presented for paymentto the financial insti- tution holding the letter of credit. This type of letterof credit requires a special contract arrangement with DOE, the contractor, and the financial institution. No new checks-paid letters of credit can be issued without the prior approval of the Department of the Treasury. Requests for such approval shall be submitted through the CFO. If the purpose of the checks-paid letterof credit remains the same but DOE changes the finan- cial institution or the contractor, DOE does not need approval from the Department of the Treasury. However, Field CFO’s should coordinate with the Cash Management and Funds Control Branch when there isa changeof contractoror financial institution. More information on this typeof letter of credit is contained in paragraph 7c(4). The second methodof letter-of-credit funding used by the Department enabl es the recipient organization to obtain cash from the Department of the Treasury concur- rently with cash disbursement needs. This is the letter of credit- Treasury Financial Communications System (LOC-TFCS) method. Financial assistance awards or contracts authorizing advance funding that may use LOC-TFCS methods must contain the provisions prescribed at title lO, section 600.112 (“Payment”), of the Codeof Federal Regulations or Federal Acquisition Regulations (FAR) subpart 32.4 (’’Advance Payments”) as amended by48CFR 932.4, “Advance Payments.” Under this methodof funding, the recipient or contractor selects a financial institution to receive SF-5805, “PaymentVoucheron Letter of Credit,” to meet current cash ● I-46 1 - 7 - 9 3 DOE 2200 .6A Paragraph 7c( 2) (c) (2) needs. Detailed instructions for this Ietterof credit type are contained in ITFM6-2000 and 6-2500.

~. The Field CFO issuing letters of creditis responsible for monitoring the cash drawdowns to ensure compliance with Federal cash management principles. This responsibilityis shared with the cognizant procurement and program officials. Funds advancedto others must be kept to the minimum amount necessary tomeet the cash-flow needsof DOE’s portion of the organization ‘liabilities. Cash advances to others should not exceed 3 workdays’ requirements or$l0,000, whicheveris greater. However, to avoid frequent requests, advances should normally be not less than $5,000. Cash needs shall be determinedly the contractor’s orreci- pient’s cash outlay requirements and shall not be based on costs incurred. Documents used to monitor thecash positi onofa recipient of a financial assistance award include SF-269, “Financial Status Report”: SF-272 and SF-272A, “Federal Cash Transactions Report”; SF-271, “Outlay Report and Request for Reimbursement for Construction Programs”: and any other reportof a recipient’s financial activity that may be required for effective cash management. (a) mitorinq. Financial reports required by the terms and conditions of a contract shall be used to monitor advances to the contractor’s cash position. The contractor’s cost reports shall be comparedto the letter-of-credit activity and balanceof Federal cash on hand periodically, but not less frequently than each quarter. This review is to provide assurance that the contract.oris drawing advances in accordance with the terms of the contract and that the contractor is making drawdowns as close as is administratively feasible to the actual disbursements by the recipient organization. Ifthecontrac- torfail s to demonstrate adequate procedures to time letter-of- credit drawdowns with actual cash needs, then the letter of credit shall be revoked. (b) Refunding. If funds are erroneously drawn in excess of a recipient organization’s immediate disbursement needs, the funds should be promptly refunded andrei ssued when needed. The only exceptionsto the requirement for prompt refunding are when the funds involved will be disbursed by the recipient organization within 7calendar daysor when they are less than $10,000 and will be disbursed within 30 calen- dar days. These exceptions to the requirement for prompt refunding should notbe construed by the recipient as approval by the Depart- mentof the Treasury or DOEfora recipient organization to maintain excessive funds. These exceptions are applicable onlyto excessive amounts of funds that are drawn erroneously. (c) interest Income. Any interest income earned by arecipient organize- tionon Federal funds must be promptly refunded unless the recipient is authorized bylaw to keep the interest earned. State governments and instrumentalities of States and their subgrantees are exempted from this policy by the Intergovernmental Cooperation Actof 1968 I-47 DOE 2200.6A 1-7-93 Paragraph 7c(2)(c) (Public Law90-577). Additionally, OMB Circular A-lIO, ’’Grants and ● Agreements with Institutionsof Higher Education,” specifies that recipients shall maintain advances of Federal funds in interest- bearing accounts. Interest earned on these accounts shall be remit- ted at least quarterly to DOE. Up to $lOOof the interest earned per year may be retainedby the recipientto cover administrative expenses.

(d) ~. The letter of credit shall be revoked, and any unused advance shall be returned, when either the contract expires or the workis completed. If additional monies are due after the letterof credit has been revoked, the final payment will be by SF-l1660CR, “Vouchera ndSchedule of Payments.” (3) letter of Credit-Tr~cial Communications Svstem . (a) The LOC-TFCS improves the control of Federal advances made under the letter-of-credit method of financing by providing both preauditsof requests for funds and fixed payment times. The LOC-TFCS also pro- vides timely and accurate accounting and reporting information on Ietter-of-credit transactions. Requirements for establishing and administering aletter of credit are containedin ITFM 6-2000 and 6-2500. (b) Each DOE field element issuing letters of credit hasthefol lowing functions: ● 1 2 3 4 5 Designate certifying offi cers forgetters of credit; Issue the necessary LOC-TFCS documents and procedures to the con- tractor or recipient organization, and forward the completed document to the Department of the Treasury servicing RFC; Ensure examination of requests for funds submitted by the con- tractor or recipient organizations for completeness and correctness; Monitor cash advances to ensure that the recipient or contractor does not maintain excessive balances; and Fulfill accounting and reporting requirements. (c) The Field CFO shall advise the recipient or contractor of the following: 1 That financial institution participation in LOC-TFCS is voluntary, Z The correct preparation and distribution of the various prescribed forms, I-48 1-7-93 DOE 2200.6A Paragraph 7c(3)(e)2d a The requirement that advances of Federal funds be limited to the minimum amounts necessary for the immediate disbursement needsof the recipientor contractor organization, and 4 That a financial institution causin9 the Department of the Trea- sury tomake an erroneous paymentto a recipient or contractor organization’s account shall be liableto the Department of the Treasury for the amount of the erroneous payment and for any interest earned to the extent allowed bylaw. (d) Information regarding parti cipation in the LOC-TFCSPro9ram maybe obtained from the CFO. (e) Review and Processlnu of ReWts for. Funds. 1 meral. When acontractor orrecipi ent requires funds, it submits an SF-5805, “Requestfor Funds,’’ to its financial institu- tion. The financial institution transmits (via the Federal Reserve Communications System) a“Requestf orFunds” (type 1031) message to the Department of the Treasury. Request for Funds roes- sages that pass the Department of the Treasury edits are routedto the DOE office responsibl efor the payment through the Office of Departmental Accounting and Financial Systems Development (CR-40). The Field CFO advises DOE Headquarters of its decision to either payer reject the “Requestfor Funds.” DOE Headquarters shall advise the Department of Treasury, via EFT terminal . of the decision topay or reject. 2 DOE Rwonsibil it ies. Upon receiptof the ’’Request for Funds” message, the Field CFO shall reviewit and ensure the following: A Correct recipient or9anizati0n name. D Payment is not inexcess of the recipient zation’s total available balance for all letter of credit. or contractor organi- awards covered by the

G Third-party information provided is acceptable andinaccor- dance with the requirements ofDOE. If a”llequest for Funds” messageis received containing a minor error in the third party information block. the DOE Field CFO shall make every effort to resolve the error directly with the contractoror recipient and therefore avoid rejecting the ’’Request for Funds’’ message. This will eliminate the administrative burden of requiring the contractor or recipient to complete another SF-5805. “Request for Funds,” and requiring the sending financial institutionto transmit another “Requestfor Funds’’ message. ~ All requi red expenditure reports are properly prepared and received from each organization funded by a letter of credit. I-49 DOE 2200.6A 1-7-93 Paragraph 7c(3)(e)fi e The Federal funds on hand with the organization funded bya ● letter of credit arenot in excess of immediate needs, and payment of the pending request will not result in excess Federal funds on hand. f Any other criteria or measurement that the Field CFO considers applicable in reviewing a “Request for Funds’’ message, provided that the requester has been notified ofthese criteria. A If the ’’Request for Funds” message is to be rejected, the DOE Field CFO should advise the Office of Departmental Accounting and Financial Systems Developmental soon as possible after the decision ismade to reject the request so that the office can enter the rejection into the Department of the Treasury system. Rejections preprocessed by the LOC-TFCS immediately, and prompt responses will avoid making recipients wait additional time for funds. The Field CFO should ensure that responses are processed as soon as possible, but not later than the Depart- mentof the Treasury established cutoff time, whichis 2:00 p.m., eastern time, on the workday following the dateof receipt of the “Request for Funds-message by DOE Headquarters. To ensure timely and proper processing, Field CFO’s should tim their responses tobe received by the Office of Departmental * Accounting and Financial Systems Developmentby noon, eastern time, of the workday after the date of the ”Request for Funds” message. If the Departmentof the Treasury isnot notifiedof DOE’s decision, the ’’Request for Funds’’ will bepaid bythe LOC-TFCS automatic pay function. Ifthe ’’Request for Funds’’ message is rejected by the Depart- mentof the Treasury due to the transmission of incorrect information by the sending financial institution but the information has been provided correctly by the requesting organizationon the SF-5805. “Requestfor Funds, ’’the sending financial institution shall be notified by the cognizant DOE Field CFOto obtain the proper information and transmita correct ’’Request for Funds’’ messageas soon as possible. G The contractor’s or recipient’ s financial institutionis responsible for notifying the contractor or recipient of the rejection and the reason(s) for the rejection. Al r)roval of Me=. If the ’’Request for Funds’’ messageis approved for payment by DOE, atype/subtype 1032 message, “Funds Transfer Honoring aRequest for Funds,”is generated onthe workday following receipt of the original message unless itisto be paid on the same day (see paragraph 7c(3) (h)). ● 1-50 1-7-93 OOE 2200.6A Paragraph 7c(3)(i)l (f) (g) (h) (i)

Automatic Pav Function. If DOE does not entera pay orrejectdeci- sion into LOC-TFCS prior tothe2:O0 p.m., eastern time. cutoff, the Department of the Treasury’s LOC-TFCS systemis programmed to pay all outstanding “Request for Funds’’ messages that were received on the prior business day. If the Field CFO wants this automatic function delayed inorder tomake abetter decision on aparticular ’’Request for Funds,” there are two actions that must be taken. First, the Office of Departmental Accounting and Financial Systems Development must renotified of the desireto delay the automatic payment func- tion. The Office will contact the Department of the Treasury and request accomplishment of the Field CFO’s request. The Field CFO, with approval of the RFC, may telecopy the request for the delay and mail the original to the RFCon the same day. The request mustbe signed by an authorized certifying officer. The automatic pay func- tioncan only be delayed for short periods of time by the Department of the Treasury. Field CFO’s are not encouraged to request delaysof the automatic pay function except in emergencies. Ifa paymentis made by the automatic pay function and the Field CFO realizes thatit should have been rejected, the Field CFO authorizing the payment is responsible for recovery of the funds. Any resulting excess balances shall be recoveredby the cognizant Field CFO. ncv Pavme nt. Ifthe Field CFO determines that an organization has an emergency need for funds, the Field CFO shall advise theser- vicing RFC accordingly. Depending on the circumstances, the RFCmay initiate emergency procedures to expedite processing ofa ”Request for Funds’’ message, or payment maybe made outside the LOC-TFCS. Payment outside the LOC-TFCS is accomplished by the submission ofan SF-11660CR, “Vouchera ndSchedule of Payments,’’ for FEDWIRE payment completed in accordance with ITFM 4-2500. Either the letterof credit mustbe amended to decrease the authorized balance by the amount of the SF-l166 OCR payment or the amount of the SF-l1660CR payment may beoffsetagai nsta pending increase in the authorized balance of the letter of credit. - Dav Pavment . Same-day payment, such as checks-paid withdrawals of cash from the Department of the Treasury. is an exception tostan- dard procedures for the LOC-TFCS. Same-day payment shall be limited to activity where itwill provide clear benefits to the requesting organization ortothe Federal Government. The Departmentof the Treasury must give its prior approval for same-day-payment requests. s Federal Funds Held bvLf&ter of Credit Recipients or Contrac- m. 1 Each Field CFO shall instruct organizations funded by letters of creditto return excess Federal funds, in accordance with DOE instructions, and redraw funds when needed. Federal cash heldby recipients should not exceed $10,000 or the amount required for the next 3 workdays’ disbursements. whichever is greater. 1-51 DOE 2200.6A 1-7-93 Paragraph 7c(3)(i)~ 2 In addition to refunding excess funds, any interest income earned ● by an organization on Federal funds shall be promptly refunded to DOE as provided by the terms of the award instrument. Field CFO’s shall deposit the portion of the amount refunded that represents the initial advance to the appropriation or fund account charged with the advance. The portion that represents interest income should redeposited into the Departmentof the Treasuryss receipt account 89X1435 General Fund, Propriety Interest, Not Otherwise Classified, or such other accountas specifically authorized by law. These transactions shall be reported on the regular SF-224, “Statement of Transactions .“

(j) If a financial institution causes the Department of the Treasuryto make an erroneous payment toan account ofan organization funded bya letter of credit, the financial institution shall beliable tothe Department of the Treasury for the amount of the erroneous payment andfora penalty. The penalty shall be calculated at the applicable Federal Funds Rate and shall be due for the entire period that the erroneous payment remains outstanding. (4) terof Credit-Federal Reserve Bati Svsw . (a) ~ral. The LOC-FRB system is limited to the checks-paid method, under which a financial institution is selected to drawon the letter of credit. The drawdowns are delayed until the checks issued by the contractor organization are presented to the selected financial ● institution for payment. Theamount of the drawdown shouldbe suffi- cient to maintain the contractor’s account balance as close to zero as administratively possi ble. Subsidiary checking accounts, such as payroll, will not be prefunded but will be included in the drawdownto cover checks cleared against the main account. The DOE Field CFO shall record drawdowns as of the dates paid. Payment vouchers shall be accumulated and used for monthly reconcile ationwith the Depart- mentof the Treasury. Restoration of the financi al institution’s reserve account is accomplishedon thesame dayby drawing on the account of the FRBthat services the letter of credit. Under the checks-paid letterof credit method, the financial institution is compensated for services performed by the most cost-effective method available as determinedly DOE and the contractor. (b) tsand Procwres for Mwina LOC-FR13 . 1 ~. Detailed requirements for establishing aletterof credit under the LOC-FRB system are contained in ITFM 6-2000. The following paragraphs summarize the principal steps followedto setup and manage checks-paid LOC-FRB’S. 2 Proc_. When the contracting officer has determined that the recipient organization is eligible for advance financing and the Field CFO has determined that a checks-paid Ietterof creditis o I-52 1-7-93 DOE 2200 .6A Paragraph 7c(4) (b)& appropriate, the Field CFO shal 1 work with the cognizant procure- merit official and the contractor to establish the letterof credit. The Field CFOwill provide the contractor with the infer- mation required to survey eligible financial institutions for interest in supporting the contractor’s letter of credit. DOE requires that financial institutions be within the same banker branch territory of a given Federal Reserve district as the con- tractor, recovered by the appropriate deposit insurance, and post collateral in accordance with Department of the Treasury regula- tions governing securing of Government accounts. On completionof the survey, the contractor shall be asked to provide alistofsug- gested bidders to the procurement officer. The procurement officer shall solicit bids from eligible institutions and, with theadvice of the Field CFO and the contractor, competitively selecta financial institution to support the contractor’s letter of credit. Acopyof the special bank account agreement signedby all parties shall be delivered to the Field CFO sothata letterof credit maybe established. Refer to Attachment 1-11 fora sample ofa special bank account agreement. A Prior to soliciting bids from financial institutions for their services, the following actions must recompleted:

i The contractor, with the Field CFO’s assistance, shall complete the “Scheduleof Financial Institution Processing Charges’’ form (Attachment I-7) by typing inthecontrac- tor’s name and the projected monthly quantities forser- vices that the institution will be required to provide. Use of this form will standardize the basis on which the institutions will bid. U When the time deposit method is selected, the Treasury Tax and Loan (TT&L) Rate shall be used for calculating the amount of the non-interest-bearing time deposit tobe placed with the financial institution (Attachment I-8). h The procurement officer shal 1 determine themethod tobe used in soliciting bids. Soliciting forbids shall bedone by the cognizant procurement officein accord with acquisition regulations. c Samples ofmaterials tobe included in thesolicitati on are Attachments I-7 through 1-12. The information containedin Attachments I-9 through I-llmay not be comprehensive and can be modified to include applicable cash management provisions contained in paragraph 7c(2) and any other warranted provi- sions. Generally, if specific requirements are not spelled out inthecontracto then the financial institution cannot be required to perform. However, there is one clear exception to this rule. Under checks-paid letters of credit the funds and I-53 DOE 2200.6A 1-7-93 Paragraph 7c(4)(b)Z the accounts held under theac!reements belong to the Government ● and will be collateralized in-accord with Department of the Treasury regulations, specifically, Department of the Trea- sury Circular 176and ITFM 6-9000. Field CFO and procurement offices shall revise current agreements as they are completed or renewed to include applicable cash management provisions contained in paragraph 7c(4)(h). (c) ~. Most financial institutions require compensation for services provided under checks-paid letters of credit. The financial institution will be compensated for its services based on the fees charged for those services. Itmaybecom- pensatedby adirect payment of the amount of the fees and those costs would rechargeable as program costs, or it maybe compensated by the placement of anon-interest-bearing time deposit, which ltcan invest. The earnings on that investment would be the financial institution’s compensation. The financial institution will notbe allowed to hold balances in the checks-paid letter of credit accounts (often referred teas ‘%hecontractor’sb ank accounts”). If DOE finds that the institution is holding balances in these accounts. the Institution will be required tofully collateral ize those balances. Prior approval bythe CFOis required for the useof any other formof compensation. 1 The compensation method selected shall always be themost cost- ● effective, taking into consideration thecost ofmoney to the Department of the Treasury and the administrative costs of monitoring the method selected. 2 Under the direct payment method, the financial institution submits amonthly invoice to the contractor’s office. The invoice will show amounts duein accordance with the per item costs specl- fiedonthe ”Scheduleof Financial Institution Processing Charges” (Attachment I-7), and for any interest charges on account overdrafts. The financial institution is compensated by a check drawn on therecipient’s account in the financial institution.

3 Under the time deposit method, the financial institution receives a non-interest-bearing time deposit sufficientto generate income for the financial institution equal to its annual service charges. These service charges are based upon annual volumes of account activity and the per item costas stated on the “Scheduleof Finan- cial Institution Processing Charges” (Attachment I-7). Specific Instructions for determining the proper time deposit balance can be found in the ”Calculation of Time Account Balance Required” form (Attachment I-8). The time account shal 1 be established before the first drawdown on the letter of credit. All Government funds in a financial institution must be protected against loss. This includes time deposi tsplaced with theinstituti onascompen- sation for services and positive balances that occur in the demand ● I-54 1-7-93 DOE 2200 .6A Paragraph 7c(4) (e)lg accounts from time to time. For each relationship that exists, the total balance held by the institution wil 1 be the amount that is to be collateralized, less the amountof the approved insurance. Deposits in approved financi al institutions are coveredby Federal or federally approved insurance uptoa set limit. Amounts Inexcess of the insurance limits must be securedby collateral pledged with an FRB. The Treasury Financial Manual ( I TFM 6-9000) describes the collateralizati on procedure. (d) Use of Financial Institutions Tha . tDo Not Maintain anAcco@ atthe mral Reserve. If the selected financial institution doesnot maintain an account at the Federal Reserve, the funds drawn are deposited to the recipient’s financial institution througha corre- spondent that maintains an account at the FRB. As funds are required under the checks-paid method, the financial institution or the FRB will prepare and process the TFS-5401. (e) Tel@onicor Wire Met~. The telephonicor wire method maybe used in those cases where afin~ncial institution operating a checks-paid letter of credit is located outsidea Federal Reserve city and cannot forward the TFS-5401 to the FRB before the FRBcutoff time for same-day payment. Ifdrawdownson the letter of credit will bemade through either thetelephoni corthe wire method, the letterof credit mustbe sent to the Department of the Treasury undera separate cover. rather than as a regular letter of credit. The steps inpara- graphs 7c(4)(b)l and zmustbe followedto ensure that thetelephoni c or wire method is properly approved and established. 1 When it is determined that the telephonic or wire method will be used, the DOE Field CFO shall submit awritten request to the Department of the Treasury approximately lmonth before the desired implementation date. The request should include the following: A Name and address of the recipient organization. b Name and address of the financial institution selectedto provide the services, G Name and telephone number of acontact at the selected financial institution, ~ Letter of credit number, R Proposed date ofimplementati on, f Proposed method of notification (wire or telephonic), and g Name of the appropriate FRB or Federal Reserve branch. 1-55 DOE 2200.6A 1-7-93 Paragraph 7c(4)(e)Z z The Department of the Treasury will obtain the Federal Reserve ● approval and notify the DOE Element of the following: d That approval has been granted, h The date on which the letter of credit can be implemented ,and c The name and address of the person at theapproprlate FRBor Federal Reserve branch who is designatedto receive the blank TFS-5401’s from DOE.

(f) Monitoring Chwks paid I etters of Cred. it. The Field CFO shall estab- Iish procedures that will result ina review of each checks-paid letter of credit account at least quarterly. Minimally, the review shall entail an analysis of the account statements to determine whether the accounts are being operated by the financial Institution correctly, whether the financial institution is being properly and adequately compensated in accord with the agreement, and whether the financial institution is maintaining the level of collateral commen- surate with the account balances. Overdrafts and excess balances shall bedealt withas detailed below; however, the primary consider- ation inthls process is to ensure that the financi al institution is paid for the services performed; that account balances aremi ni- mized; and thatif account balances are over the prescribed insurance limit, they are properly collateral ized. ● (9) ~. Although drawdowns under achecks- paid letter of credit are made with the intent of maintaining the cash balance in the hands of the recipient as close to zeroas administra- tively feasible, overdrafts andexcessbal ances may occur. In such cases, the procedures below shouldbe followed. 1 mpected Overdrafts. On the first business day followingan overdraft, the financial institution will draw down an amount equal tothenet sumof the overdraft, offsetby any receipts. 2 ~. If overdrafts frequently occur in an account or are expected to occur due to checks clearing after the established cutoff time for clearing checks. the DOE Field CFO. with the approval of theCFO, shall consider prefunding the account. Under the prefunding concept, the Field CFO requires the financial institution to estimate the average dollar valueof checks presented each day that the financial institution cannot clear in time tomakea letterof credit drawdown. The financial institution is allowed to adjust each drawdownby thepredeter- mined estimated amount plus any negative account balance or minus any positive account balance from the previous day. 3 &ess Balm. An excess balance inan account results whena financial institution makes adrawdown from the letter of credit ● I-56 DOE 2200.6A Paragraph 7c(4)(h).Z for more money than is needed to cover the netof the receipts and disbursements for the day against the contractor’ saccount. Gen- erally, this excess balanceis netted against the next business day’sactivity in the account, and the long-term effect is that the account remains atoras closeas administratively possible toa zero balance. Excess balances are generally considered when the Fteld CFO performs the monthly or quarterly account analyses to determine whether the financial institution is being properly compensated for the services performed. If the institutionis being paid ona fee basis, the excess account balances shouldbe refunded to the Department. The refund shall be made to the Field CFObycheck made payable to the Department of Energy. The finan- cial institution also shall pay a penal ty to compensate the Federal Government for the loss of availabilityof funds. Ifthe institution caused the positi veaccount balance and appears notto have made an effort to clear the balance out, the Federal Funds Rate shall be used to determine the amount of the penalty. Ifthe balances are generally routine in nature, then the TT&L Rate shall beused. In either instance, the refund shall be credited to the appropriation or fund account from which the funds originally came. The penalty amount shall be credited to account 89X1435, General Fund, Proprietary Interest. Not Otherwise Classified. or to another account specifi callyauthorized by the Departmentof the Treasury. The Field CFO shall amend the letter of credit to make the refund, but not the interest, available for future program disbursements.

(h) ~. Monthly, the financial institution calcu- latesthe average daily balance for the account netof the time deposit. This calculation shall be used as the basis for determining recovery on excess balances and, inapplicable, interest charges on account overdrafts. 1 Overdrafts. The financial institution may wantto be compensated for overdrafts that occur aspart of the normal operation ofa checks-paid letterof credit. When interest on overdrafts is paid, it is computed monthly, using the average TT&L Rate for the period of occurrence. If the calculated average daily balance for the month is negative. the financial institution, under the direct payment method, bills the recipient organization for an amount equal to the average daily balance times the applicable TT&L Rate divided by12. Under the time deposit method, the financial insti- tution provides this computation to the recipient organization, but no adjustment is made until the quarterly reviewof the time deposit. Z Wess Balances. Whenever the average daily balance for the month, as calculated in paragraph 7c(4)(g)3, results in a positive balance, the financial institution compensates DOE forthe lossof availabilityof funds. The amount calculatedis remitted to the I-57 DOE 2200.6A Paragraph 7c(4)(h)~ 1-7-93 ● I-58 Field CFOmonthly and deposited into the Department of the Trea- – sury’s receipt account 89X1435, General Fund, Proprietary Inter- est, Not Otherwise Classified, or such other account specifically authorizedby statute. All letter of credit agreements shall contain a provision for compensation resulting from loss ofavall - ability of funds to the Government because of excess balances held by the financial institution. Ifthefinanclal institution hadno control over the positive balance. the financial Institution will compensate DOE for theloss of the availabilityof funds by multi- plying the average daily balance for the month bythe TT&L Rate divided by12. If the financial institution caused the positive account balanceo it shall pay a penalty determined by multiplying the excess fund balance by the Federal Funds Rate adjusted for the proper period oftime. (5) ~. Standard forms prescribed for use under the Federal Reserve Bank System are available fromGSA stores. The TFS forms are available from the Departmentof the Treasury. Instructions for completing the required forms are containedin ITFM6-2000 and 6-2500. In accordance with ITFM6-2000 and 6-2500, forms shall be manually signed, as required, by authorized individuals. (a) QL!s. Overprinting of the DOEservi cingoffice’s name, ALC, and other recurring information on the prescribed forms is permitted. Other changesor modifications to the prescribed forms ● require prior approval of theCFO and the Department of the Treasury. (b) tofthe Treasurv Mailina Address~ Refer to ITFM 6-2500, appendix7. for the address of the Department”of the Treasury RFC processing letters of credit under the LOC-TFCS system for the region. All forms used in the LOC-FRB system shall bemailed to the following address: Letter of Credit Section Washington Regional Financial Center U.S. Treasury-FMS P.O. Box 37214 Washington, DC 20013 The street address for messenger pickup and deliveryof letter-of-credit documents is: 441 GStreet, NW Receiving 3251A General Accounting Office (GAO) Bldg. Washington, DC 20013 (6) Closeout of a Letter ofCredi~. When the balanceof the letter of credit has been completely withdrawn, the DOE Field CFO shall request the ●

1-7-93 DOE 2200.6A Paragraph 8a(4) Department of the Treasury to revoke the letter of credit. The request should be by memorandumor a letter signedby a certifying officer and forwarded tothe Department of the Treasury. (7) ~ortinu ~irem~ Each Field CFO shall record expenditures from the third copy ofeach TFSF~rm 5401, “PaymentVoucheron Letter of Credit,” received from the Department of the Treasury as of the date paid and from the copy of the type/subtype 1031 Message, “Request for Funds,’’ faxed from the Office of Departmental Accounting and Financial Systems Development based upon each SF-5805, “Requestf orFunds.” (Note that TFSform !5401is used to initiate withdrawals for an LOC-FRB.) These documents are used for reporting monthly letter of credit activityon the SF-224, “Statementof Transactions.” Aseparate SF-224 is required forgetter of credit activity of each ALC. 8. MMXIMRS. a. .MmduWn. (1) Accountability and control of cashier advances and imprest fund opera- tions were transferred from the Department of the Treasuryto Federal agencies pursuant to the Department of the Treasury Bulletin 84-21, dated 9-10-84. The transfer from the Department of the Treasury did not include authority to delegate cash disbursement authority to individual cashiers. Therefore, DOE-recommended cashier and alternate appointments and changes still must be approved by the Department of the Treasury. (2) As aresult of this transfer, DOE has direct responsibil ity for ensuring the proper use of cashier advances and establishing procedures to govern imprest fund activities. DOE must continue to effectively manage imprest funds because: (a) Cashier advances are now charged to DOE’s appropriated funds and thereby bring such advances under DOE and OMB guidelines that control appropriations. (b) DOE now has authorityto approve changes in imprest fund amounts and the numbers of funds being operated. (3) All DOE imprest funds operate under 31 U.S.C. section 3321 (formerly Executive Order 6166) and the policies and procedures contained in the Department of the Treasury Manual of Procedures and Instructions for Cashiers, dated 7-85. (4) Each imprestfundis acash fund in the form of currency. coin, or Govern- merit check. The amount of each fund has been charged toa DOEappropria- tion account. The fund is advancedby an authorized DOE official toa properly designated cashier forsaking cash disbursementsas specifically authorized. The fund may beofa revolving nature and replenished to the fixed amountas spent or used, oritmaybe ofa statutory natureo suchasa I-59 DOE 2200.6A Paragraph 8a(4) 1-7-93 ● change-making fund. The use ofmoney orders. designated charge cards, traveler’s checks. and third-party drafts must have prior approval from theCFO. (5) There are several categories ofcashfers. Each is fully descrlbed’fn Department of the Treasury Manual of Procedures and Instructions for Cashiers. b. Authorization ~. the (1) As stated above, the Department of the Treasury retains delegation author- ity for individual cashiers. All appointments and changes of principal and alternate cashiers mustbe approved by the Department of the Treasury. (2) Departmental offic~als delegated the authority to recommend cashiers must be so designated on a properly executed TFS 2958, “Delegationof Authority.”

(3) Departmental officials will recommend principal and alternate cashier designations, revocations, class changes, and other changes tothecogni- zant Department of the Treasury disbursing officers on a properly executed SF-211, “Requestf orChange or Establishmentof Imprest Fund.” Department of the Treasury disbursing officers will take action on the request and return appropriate copies of the form to DOE. Departmental officials will then submita copy of the accomplished SF-211 to the Cash Management and ● Funds Control Branch (CR-433). c. ln~ina Authorized Bal w . Each Field CFO must review the size of each imprest fund under his or her control at least once every 6 months. Based on reviews and analyses of monthly reporting and related operating data, Field CFO’s shall approve or disapprove requests to change imprest fund balances. (1) When imprest funds are increased. decreased, established, or abolished. the following procedures apply: (a) Acopyof the completed SF-211, “Requestf orChange or Establishment of Imprest Fund,” shall be sent to the Cash Management and Funds Control Branch toadvise itof the change in the fund. (b) If the change is to increase or establish anadvance, an SF-11660CR, “Voucher and Schedule of Payments,’’ shall be submitted tothe servicing RFC. (c) If the change is to decrease or abolish theadvance, the amount of the reduction may be deposited into the Department of the Treasury and credited to the appropriate accountor the reduction maybe effected by not replenishing the fund by that amount. ● 1-60 DOE 2200.6A P a r a g r a p h e d (2) The accountinci entries refl ectinqa change or establishment ofan imprest.—. fund shal 1 be ;ade in accordance ~ith DOE- 2200. lOA, ILLUSTRATIVE ENTRIES. d. ~. (1) ~. To maintain an ACCOUNTS, CODES, AND imprestfund atan authorized amount, replenishments must be madeon a periodic basis. The principal cashier may submitan SF-1129, “ReimbursementV oucher,” tothe designated certifying offici al, who shall prepare an SF-l166 or another appropriate voucher for submission to the RFCto replenish the fund. Reimbursements accomplished by magnetic tape shall proceed as directed by the Department of the Treasury. (2) Maaina Cati. Cashiers shall monitor the use of the fund to ensure that cash balances are maintained at the minimum levels needed tomeetoperat- ing requirements. Cashiers shall request replenishments in accordance with these demands. (a) Size of Re?l enl shmMQux&i . . Replenishment checks shouldbe requested for the smallest amounts practical to minimize the amount of cashon hand needed to meet normal requirements. (b) flu?ck-b.s-bina Fees . Before paying afeetoa local financial insti- tution for cashing a Department of the Treasury check. the cashier shall make every effort tohave the check cashed without a fee. Long-term arrangements to cash replenishment checks fee free should be made whenever possible. If paying check-cashing fees cannotbe avoided, they maybe paid from imprest funds. These funds mustbe reasonable and customary for the cashier’s geographical area. Fees paid should be supported as follows: 1 Prepare an SF-1165, “Receiptf orCash–Subvoucher, “oranequiva- Ient receiptin duplicate, describing the official check and its purpose. Z Have unofficial of the financial institution sign the original receipt and affix the bank’s “paid’’s tamp at the time of payment of the fee. 3 Retain the original receipt with the other imprest fund recefpts.

4 Include the feeln the next routine replenishment transaction. (c) ~. Replenishment checks should not beheld formorethan90 days without an assessment by the finance officeras to the continued need for the imprest funds represented bythe unnegotiated checks. Uncashed checks returned to thellepartment of the Treasury shall be endorsed tothe order of ’’Department of Energy, ’’not Department of the Treasury, since such funds have been 1-61 DOE 2200.6A 1-7-93 P a r a g r a p h e d e. f. chargedto a DOE appropriation. These checks shall be deposited with an SF-215, “DepositTicket.” to the appropriate eight-digit ALC. ina Facilities for Cm . Imprest fund assets, especially cash, require absolute security. Field CFO’sor designees shall ensure that adequate physical facilities and internal controls are provided for safekeepingof imprest fund assets. The cashier must maintain exclusive control of the fund, regardless of the safekeeping facilities provided. The Department of the Treasury Manual of Procedures and Instructions for Cashiers provides additional guidanceon safekeeping facilities for imprest funds. . (1) (2) (3) Perscmd L1 abil Itv . . Each cashieris personally liable (legally respon- sible) for all Government money coming into his or her possession and is obligated to faithful ly perform his or her duties. Ruration of Liabilitv . The cashier’s liability for the funds advanced continues from the time the cashier receives the funds until proper and acceptable accounting thereforis made, eitherto the officer who advanced the funds or to another officer directed to receive the accounting for the advance. ibllities. . (a) Each cashier is required by public lawtodothefol lowing: 1 Keep all imprest funds inhis or her possession safe and separate from all other funds (commingling of personal or other money with imprest funds is prohibited): 2 Respond faithfully and promptly to official orders to transferor payout funds; 3 Perform all other duties as afiscal agent of the Governmental specified bylaw, DOE guidelines. or overall guidance fssued by the Department of the Treasury: and 4 Report all facts immediately tohis or her supervisor in the event of a loss, shortage, or theft of imprest or other official funds. (b) For cash payments under the On-the-Spot Monetary Recognition Awards program (Spot Awards), the cashier irresponsible for the following: 1 Confirming that the individual presenting the utility copy of the SF50, “Notification of Personnel Action,” is the individual pictured onthe DOE badge: I-62 1-7-93 Z Recording the DOE badge ture, and verifying the badge; DOE 2200 .6A Paragraph 8g( 1) number. obtaining the individuals si gna - signature against the signatureon the DOE a Ensuring that payment is based upon the utility copy ofan approved SF 50 which includes the following code in block 5-E: “91F.” In addition, the following le9end must be included in block 5-F: “DOE 3450. 1A ON THE SPOT TO BE PAID FROM IMPREST FUND;” A Ensuring that payment isnot made prior to the effective date shown in block 40fthe SF50; s Paying spot awards in the gross amount. but ensuring that an award in excess of the maximum amount payable isnot paid; and Q Retaining the utility copyof the SF 50 as documentation of payment. (c) Cashiers are not permittedto do the following: 1 Loan official funds; Z Use funds for their own purposes; 3 Deposit public moneyin financial institutions. except where authorizedto do so; A Exchange personal or other money with other funds unless authorized todo so: s Place subcashier funds and the principal fund inthe same safe without appropriate safeguards; or Q Allow unauthorized access to the key or combination of the safe(s) containing imprest funds. 9. Transfer of Cash Betww Cashiers and&Jaieen Fmplovees and Gjishiers . (1) ~.When a principal cashier leaves theposi- tion, the official designated to appoint cashiers shall request the Department of the Treasury to designatea new principal cashier. using SF-211. “Requestf orChange or Establishment of Imprest Fund.” Funds then must retransferred to the new principal cashier.