4 FAM 390
CASHIER OPERATIONS
(CT:FIN-489; 02-27-2024)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 391 GENERAL POLICY
4 FAM 391.1 Scope and Applicability
(CT:FIN-471; 05-19-2021)
This subchapter identifies the policies for managing domestic and overseas cashiers and the funds provided for cashier activities. All Department of State cashiers, as well as other agency cashiers designated under the Department of the Treasury authorities delegated to the Department of State, must follow the provisions in this subchapter.
4 FAM 391.2 Authorities
(CT:FIN-471; 05-19-2021)
a. The Department of State conducts payment operations in accordance with the electronic funds transfer (EFT) legislation codified at 31 U.S.C. 3332(a) - (e) and 31 CFR Part 208.
b. The Department of State policies for administering cash held outside of Treasury or through the authorities extended to the U.S. disbursing officers (USDOs) are based on regulations and authorities in the Code of Federal Regulations and other U.S. Government publications. The following publications identify Department of State authorities for cashier operations.
(1) Treasury Financial Manual, Volume 1, Part 4A - Chapter 3000 and Part 6 - Chapter 8500;
(2) Manual of Procedures and Instructions for Cashiers (referred to as the Treasury Cashier’s Manual) reissued April 2001 operating under 31 U.S.C. 3321;
(3) GAO Policy and Procedures Manual for Guidance of Federal Agencies:
(a) Title 7, Sections 6.8 for guidance on the management of imprest funds; and
(b) Title 7, Sections 6.2 through 6.6 for information about disbursement forms, documentation, examination, approval and certification, and control over disbursements;
(4) Code of Federal Regulations (CFR), 48 CFR 13.305, on the uses of imprest funds for procurement.
c. Individuals using Department of State authorities or authorized designations may locate additional operational guidance for cashier operations through the Department of Treasury Financial Management Service website. The Government Accountability Office (GAO) also has a website available for guidance and information.
4 FAM 391.3 Additional Guidance for Cashiers
(CT:FIN-471; 05-19-2021)
a. Policies and regulations for handling cash advanced and managed by USDOs are found in 4 FAM 330. Accommodation exchange and collections policies are found in 4 FAM 360 and 4 FAM 320, respectively.
b. The Cashier User Guide (CUG) is also available for cashiers in foreign countries. The CUG provides detailed operational procedures for cashiers to follow.
4 FAM 391.4 Responsibility for Cashier Policies
(CT:FIN-471; 05-19-2021)
a. The Director, Office of Financial Policy, CGFS/FPRA/FP, is responsible for promulgating and publishing policies for cashier operations.
b. Policies and regulations established by law, the Treasury Department, the Government Accountability Office, and by this and other referenced FAM or FAH sections may not be changed or waived by the cashier, the cashier’s supervisor, or any employee at a foreign service post or office in the United States. Department of State policies are based on specific legislative authorities, regulations, and good management practices. Changes and exceptions to the policies for cashier operations can only be considered when they do not violate statutory authorities, Federal regulations or other governing authorities.
c. Post or bureau officials seeking a change or exception to provisions in 4 FAM 390 should contact the Director, Office of Financial Policy, CGFS/FPRA/FP.
4 FAM 391.5 Overview
(CT:FIN-471; 05-19-2021)
a. All Department of State payments are made by check or electronic funds transfer (EFT) or other noncash mechanism, except as provided for in this subchapter. This payment policy applies to all Federal payments made for the Department of State and other agencies, as well as miscellaneous payments including, but not limited to:
(1) Interagency payments;
(2) Grants;
(3) Loans;
(4) Fees and other payments related to U.S. marketable and nonmarketable securities;
(5) Overpayment reimbursements; and
(6) Payments under Federal insurance or guarantee programs for loans.
b. The Department of State authority to make imprest fund cash payments is derived from the November 1999 Department of the Treasury Imprest Fund Policy Directive. This directive required Federal agencies to eliminate the use of imprest fund unless a waiver is invoked. All overseas and domestic imprest funds are subject to the November 1999 directive and must limit payments accordingly.
c. Cash payments may be made if there is a 31 CFR 208.4 waiver and one of the following circumstances apply:
(1) Payment is less than $25;
(2) Payment is needed where the political, financial, or communications infrastructure of a foreign country does not support payment by a noncash mechanism;
(3) Payment involves national security interests, military operations, law enforcement, or national disasters; and
(4) Payment must be made to deal with an emergency situation.
d. Overseas imprest funds in existence prior to May 1, 2005 may operate under a 31 CFR 208.4 waiver. When there is a need to permanently increase or decrease an existing overseas imprest fund balance, the requesting official must identify the need for the imprest fund, the waiver authority in 31 CFR 208.4, and the specific circumstances under which the fund will operate. This requirement also applies to any request to establish a new overseas imprest fund. Temporary advances to existing imprest funds for time periods that are less than 90 days do not need to cite a waiver justification.
e. Consistent with the purpose of the Treasury Policy Directive, all existing domestic imprest funds must be reviewed and justified. Imprest funds that cannot meet the requirements in paragraphs b and c, must be terminated. All domestic imprest funds must be reviewed annually and, consistent with overseas requirements in paragraph d, officials requesting a new domestic imprest fund must justify the need for the fund, the waiver authority in 31 CFR 208.4, and the specific circumstances under which the fund will operate.
f. Only a duly designated and authorized cashier may operate an imprest fund. Principal cashiers overseas initially receive an advance by electronic funds transfer (EFT) or check payable to the cashier from a USDO. Cashiers will receive replenishment funds in the same manner. The cashier may not deposit checks or cash in a bank account or any other financial institution or operate the fund by issuing checks/electronic fund transfers without the specific approval from the USDO. Domestic cashiers receive advances from their own bureau funds, and the cash on hand must be kept to the minimum needed to meet normal requirements. Check disbursements or EFT transactions by a domestic cashier must be authorized in the designation.
g. The cashier is an accountable officer and is personally responsible and accountable for safeguarding uncashed U.S. Government reimbursement checks, cash on hand, payroll cash (when authorized), cash and checks from accommodation and reverse accommodation exchange, consular receipts received for deposit, sales slips, invoices, and other receipts for cash payments. All cashiers with a cash advance from a Department of State USDO must comply with the policies and procedures in 4 FAM 390 and 4 FAH-2 H-830. Cashiers will be held personally accountable for repayment of shortages and losses unless relief from accountability is granted.
h. All fiscal irregularities must be reported in accordance with the policies in 4 FAM 397.3 and 4 FAM 370.
i. All laws and regulations in the FAM/FAH that restrict or prohibit specific types of disbursements of U.S. Government funds apply to disbursements from the imprest fund.
j. When an EFT transaction cannot be made, an authorized imprest fund cashier may make payments for the following:
(1) To vendors for previously approved purchases of goods or services;
(2) To employees as advances for specifically authorized purposes;
(3) To employees as reimbursements for authorized expenditures; and
(4) To grantees or invitational travelers when appropriately documented and certified for payment.
k. The cashier’s supervisor at each foreign post and each domestic office must ensure that the following are displayed:
(1) Cashier’s hours of operation;
(2) List of individuals that may access the cashier office area;
(3) Current day currency exchange rate (when applicable);
(4) Privacy Act Notice;
(5) Sample OF-158 that must be issued by the cashier when a collection is made; and
(6) Post policy for cashier services should be disseminated to all post personnel and/or posted at the cashier window (see 4 FAM 399.4).
4 FAM 392 DEFINITIONS
(CT:FIN-489; 02-27-2024)
Accommodation exchange: The conversion of U.S. dollars into the currency of the host-country (local currency) or another currency. The term describes the process of the selling local currency for U.S. dollars.
Accountable officer: An officer or employee who is designated as such or in possession of official funds. This individual is personally accountable for all funds advanced to or in possession of the individual until one of the following occurs:
(1) The funds are returned to the U.S. disbursing officer (USDO), bureau, or cashier who advanced them;
(2) The funds are deposited in the proper U.S. Government depositary account.
The accountable individual may be granted relief if certain conditions are met. (See 4 FAM 370 for authorities to grant relief.)
Alternate cashier: An officer, direct-hire permanent employee, or a duly authorized personal services agreement (PSA) or personal services contract (PSC) employee hired under 22 U.S.C. 2669 or equivalent authority (see 4 FAM 393.1-1, paragraph b) of a Federal department, agency, or U.S. Government corporation who has been appropriately designated and who receives an advance from their Class A or B cashiers. An alternate cashier functions in such capacity only during the absence of a principal cashier or subcashier except where the volume of transactions requires both principal and alternate to operate at the same time. The cashier supervisor cannot be the alternate cashier, and the alternate cashier cannot be the supervisor unless authorized by the servicing USDO. All cashier policies and procedures that apply to principal cashiers also apply to their alternates. The alternate cashier is an accountable officer.
Cash management officer: The Comptroller CGFS/C is the principal cash management official at the Department of State. This officer has the responsibility for prescribing policies and procedures governing cash management; overseeing initiatives to improve cash management; prescribing the Department of State reporting requirements for fiscal irregularities; and reporting externally on cash management improvement initiatives.
Cash verification officer: An employee who verifies cashier funds and performs tasks that verifies the cashier is reporting accurate information. The cash verification officer (CVO) is generally the U.S. citizen supervisor of the cashier. However, under circumstances authorized in 4 FAM 061.16, another individual may be delegated CVO responsibilities.
Cashier: An officer, direct-hire permanent employee, or duly authorized personal services agreement (PSA) or personal services contract (PSC) employee hired under 22 U.S.C. 2669 or equivalent authority of a Federal department, agency, or U.S. Government corporation who is designated as a cashier by a delegated Department of State approving official or USDO and is authorized to perform limited cash disbursing functions or other cash operations as authorized by the official cashier designation (see 4 FAM 061.12). Contractors may not be cashiers. A cashier is an accountable officer. The following cashier designations are utilized in the Department of State and by other agencies at U.S. missions overseas:
(1) Class A cashier: An officer, direct-hire permanent employee, or PSA of a Federal department, agency, or U.S. Government corporation who has been appropriately designated and receives an advance from a USDO or domestically from bureau funds. A Class A cashier is authorized to advance funds to their own alternate but not to another cashier or subcashier. Overseas, the Class A cashier is an accountable officer who is accountable to the USDO but under the supervision of a non-USDO U.S. citizen officer. Domestically, the Class A cashier is an accountable officer who must follow instructions and guidance issued by the Office of Global Disbursing Operations (CGFS/DO) even when the employee is supervised by U.S. citizen official in a domestic bureau or consular office;
(2) Class B cashier: An officer, direct-hire permanent employee, or PSA of a Federal department, agency, or U.S. Government corporation who has been appropriately designated and receives an advance of Department of the Treasury funds from a USDO supporting overseas operations or domestically from bureau-appropriated funds. The Class B cashier is authorized to advance funds to their own alternate and to a subcashier. Overseas, the Class B cashier is an accountable officer who is accountable to the USDO but under the supervision of a non-USDO U.S. citizen officer. Domestically, the Class B cashier is an accountable officer who must follow instructions and guidance issued by CGFS/DO even when the employee is supervised by U.S. citizen official in a domestic bureau or consular office.
Cashier supervisor: A U.S. citizen direct-hire employee responsible for the cashier and cashier operation at a domestic or overseas location. The supervisor is responsible for evaluating cashier performance and performs duties and responsibilities essential for the internal control of cashier funds advanced to the cashier. The cashier supervisor is not an accountable officer for the cashier advance or under the authority of the USDO, but the supervisor may be disciplined for mismanagement of the cashier advance. The cashier supervisor must implement USDO or CGFS/DO instructions on matters related to cashier accountability.
Domestic cashier: When used in this section, a domestic cashier means a Class A or B cashier of the Department of State who has been appropriately designated by CGFS/DO and operates in the United States. A domestic cashier performs all transactions in U.S. dollars and is not authorized to make accommodation exchanges. A domestic cashier is an accountable officer under authorities delegated to CGFS/DO, even when the employee is supervised by a domestic or consular bureau officer. Advances to domestic cashiers must be charged to a Department of State appropriation when the cashier is established.
Imprest fund: A fixed-cash or petty cash fund in the form of currency, coin, or U.S. Government check that has been authorized by a Department of State official or USDO to an appropriately designated cashier for cash payments or other cash requirement purposes as specified in the designation. The fund is established with an advance to the cashier and may be a revolving type, replenished to the fixed amount as used, or a nonrevolving type, such as a change-making fund. An imprest fund is a method of payment, not an authorization for payment. Designations are processed in accordance with the procedures in 4 FAM 061.12.
Occasional money holders: An employee who is required to handle funds for a specific purpose. An employee is designated to serve as an occasional money holder overseas or domestically either by an element of the individual’s job description or by an authorizing letter or memo signed by the employee’s U.S. citizen supervisor, financial management officer (FMO), or management officer. A personal services agreement (PSA) or a personal services contract (PSC) employee of the Department of State or agency exempt from Office of Federal Procurement Policy (OFPP) Policy Letter No. 11-01 “Performance of Inherently Governmental and Critical Functions” may be designated an occasional money holder. Contractors that are not exempt PSAs or PSCs may not be occasional money holders. The occasional money holder is an accountable officer (see 4 FAM 394.4).
Overseas cashier: When used in this section, an overseas cashier means a Class A or B cashier operating outside of the United States, Alaska, or Hawaii. An overseas cashier is an accountable officer under USDO authority, supervised by an U.S. citizen officer. Advances to overseas cashiers are made at personal risk, whereby the individual is personally responsible for any loss to the funds unless relieved of this responsibility. Advances at personal risk are charged to Department of the Treasury funds available to the servicing USDO. These advances are not charged to Department of State appropriations until replenishment takes place.
Pre-paid U.S. debit card: A branded (e.g., VISA, MasterCard, American Express, etc.) debit card that is part of a U.S. Government program established to assist LE Staff travelers that require travel advances. Once an advance is loaded on the card and given to the traveler, the funds belong to the traveler for travel purposes and costs. These cards are denominated in USD and intended for local employee travel outside the country of residence and when appropriate, these cards may be used for advances to host country officials traveling on invitational orders.
Reverse accommodation exchange: The purchase of local currency for U.S. dollars.
Stored value card (SVC): An SVC is a smart card capable of storing electronic monetary value on the card’s embedded computer chip. In some cases, an SVC also contains a branded debit card feature to process retail transactions or allow the SVC holder to obtain cash at an automated teller machine (ATM) outside the closed environment of the SVC program. Federal agencies may issue SVCs capable of having value added on either a “reloadable” or “non-reloadable” basis.
Subcashier: An officer, direct-hire permanent employee, or a duly authorized personal services agreement (PSA) or personal services contract (PSC) employee hired under 22 U.S.C. 2669 or equivalent authority of a Federal department, agency, or U.S. Government corporation who has been appropriately designated by an authorizing letter or memo signed by the employee’s U.S. citizen supervisor and approved by the FMO or management officer to receive an advance from a Class B cashier (see 4 FAM 061.13). Contractors may not be subcashiers and when a subcashier advance level is U.S. dollar equivalent (USDE) 10,000 or more, the designation is valid only with the approval of the servicing USDO. The subcashier is accountable to the Class B cashier. The subcashier is an accountable officer. (See 4 FAM 061.13-2 for subcashiers of agencies other than Department of State.)
U.S. disbursing officer (USDO): A U.S. citizen employee designated to receive, disburse money, and account for all official funds entrusted to that employee. The USDO is an accountable officer operating under a Department of the Treasury delegation to disburse U.S. Government funds.
4 FAM 393 ESTABLISHING THE FUND
4 FAM 393.1 General Cashier Responsibilities and Sources of Fund Advances
(CT:FIN-471; 05-19-2021)
a. The cashier may make payments from the imprest fund cash advance only for goods and services that have been authorized in accordance with Department of State and post procurement procedures. Cashiers are authorized to advance funds to employees (e.g., travel, salary, etc.) and pay reimbursement vouchers for authorized reasons (e.g., official residence expense, representation, petty cash purchases, etc.). All transactions must be consistent with 4 FAM 391.5 and 4 FAM 394.
b. The cashier is responsible for all official funds received and for accounting for all transactions at all times. Overseas, the advance from the U.S. disbursing officer (USDO) is not charged to a Department of State appropriation or fund account; domestically, the advance is charged against a bureau’s funds.
4 FAM 393.2 Request and Designation
4 FAM 393.2-1 Designation of Cashiers
(CT:FIN-471; 05-19-2021)
See 4 FAM 061.12 for cashier designation guidance.
4 FAM 393.2-2 Request for Increase or Decrease
(CT:FIN-471; 05-19-2021)
a. All increases to a cashier advance must be approved by the servicing USDO. All requests must comply with 4 FAM 391.1, paragraph d, and instructions in the Cashier User Guide (CUG), Chapter 3.
b. When a request for an increase for a subcashier would not cause the advance to exceed USDE 10,000, the designation is handled in accordance with 4 FAM 061.13.
c. When a bureau wants to increase or decrease the advance held by its domestic cashier, the bureau must submit Form DS-4013, Request for Change or Establishment of Imprest Funds, to the Office of the Associate Comptroller (CGFS/S) for approval and follow any instructions CGFS/S requires for compliance with 4 FAM 391.5, paragraph e.
4 FAM 393.2-3 Designating Office Files
(CT:FIN-471; 05-19-2021)
The office authorized to designate cashiers is responsible for maintaining the official cashier files. The Office of Global Disbursing Operations (CGFS/DO) maintains the domestic cashier designation files. Each USDO who makes cashier designations must maintain the overseas cashier designation files and a master list of cashiers designated by that office, to include the following information:
· Complete name
· Employment status
· Location
· Maximum amount of designation
· Name of principal cashier if designee is an alternate or subcashier
· Special authorizations
4 FAM 393.2-4 Cashier Files
(CT:FIN-471; 05-19-2021)
a. Regardless of location, each Class B cashier, alternate (if designated), and subcashier must establish and maintain in a physical or electronic file:
(1) A copy of the initial request for and confirmation of designation and of the memorandum, cable, or letter of designation concerning the initial advance;
(2) A copy of all correspondence covering increases or decreases;
(3) Any other correspondence pertaining to the advance;
(4) Any exception documentation or questions about payments made by a cashier and subsequent correspondence concerning corrective action (corrective action documentation is a record that substantiates the actions taken for each adjustment or reentered transaction);
(5) The FMO is responsible for ensuring retention of copies of all cashier reconciliations and audits performed over the last 36 months;
(6) For Class B cashiers, copies of all alternate and subcashier designations, pertinent correspondence, and documents relating to the accountability of alternates and subcashiers (alternates and subcashiers are responsible for sending copies of all designations and verifications to the Class B cashier);
(7) Any voided Form OF-158, General Receipt, documents, regardless of how generated (preprinted or system) must be maintained in a separate folder or binder; and
(8) A copy of all correspondence and documents related to cashier irregularities, fiscal irregularity reports of investigation, and their disposition must be retained for 10 years after date of fiscal irregularity case closure.
b. Cashiers must file all on-hand and in-transit transactions with the source documentation within their safe separated by currencies and by folders pertaining to each line of the 365 until the transactions have processed and cleared the ACDC.013 report. The cashier must file all processed transactions by document type and ACDC.013 processed date (i.e., collections, accommodation exchange, vouchers, subvouchers). Overseas cashier files must be sufficient to show compliance with the Cashier User Guide (CUG) procedures and USDO instructions. File retention periods (5 FAM 430) may change over time and with the introduction of new technology, but the minimum time for most cashier records is 3 years. Overseas cashiers should refer to the filing instructions in the CUG, Chapter 4.
c. For domestic cashiers only, maintain domestic cashier files in accordance with the Department of State’s Records Management Handbook (5 FAH-4) procedures, and periodically review retention periods.
4 FAM 393.2-5 Cashier Forms and Guides
(CT:FIN-471; 05-19-2021)
Cashiers are responsible for ensuring that they have current cashiering forms if such forms are not system generated. All cashiers must be aware of the forms identified and required by various sections of 4 FAM 390, CGFS/DO, or the servicing USDO. Cashiers are responsible for advising supervisors of any need. Overseas cashiers must also be familiar with the CUG posted on the CGFS website. Domestic cashiers should be familiar with the instructions issued by CGFS/DO and the Treasury Cashier’s Manual.
4 FAM 393.3 Responsibilities
4 FAM 393.3-1 Cash Management Officer
(CT:FIN-471; 05-19-2021)
The Comptroller (CGFS/C) is the cash management officer (CMO) for the Department of State and:
(1) Prescribes policies and procedures for managing and reporting on cash activities domestically and overseas;
(2) Prescribes policies, procedures, and processes for resolving fiscal irregularity matters; and
(3) Promulgates initiatives and programs that will improve cash management and prompt payments in the Department of State.
4 FAM 393.3-2 Global Responsibility for Cashier Operations
(CT:FIN-471; 05-19-2021)
The CGFS Comptroller or designee is responsible for cash operations and matters related to:
(1) Delegating authority to USDOs to approve designations of cashiers worldwide;
(2) Requiring that domestic cash verifications are being made in accordance with 4 FAM 390;
(3) Providing guidance and instructions to USDOs, financial management officers, cashier supervisors, and cashiers on the conduct of and matters relating to domestic and overseas cashier operations;
(4) Monitoring the amount of each domestic cashier’s advance to determine if it is at a minimum level to meet the needs of the organization or office; and
(5) Coordinating with the Office of Financial Policy, CGFS/FPRA/FP on fiscal irregularity matters and ensuring that any audit and investigative, reporting, and accounting requirements for fiscal irregularities are being met.
4 FAM 393.3-3 Post Financial Management Officer/Cashier’s Supervisor and Domestic Bureau Budget Officer
(CT:FIN-471; 05-19-2021)
a. Although staffing arrangements vary between posts and domestic organizations, a post financial management officer (FMO), cashier’s supervisor, or domestic bureau budget officer is responsible for:
(1) Determining the need for cashier operations, including imprest fund payments and collection activities;
(2) Initiating and processing documentation for the designation, change, and revocation of cashier designations; changes in the amount of the fund to achieve the Department of State’s cash management objectives; and preparing requests to obtain or cancel special authorizations, i.e., accommodation exchange;
(3) Performing monthly, unannounced verifications of cashier activities under the officer’s supervision;
(4) Providing guidance and overall supervision to individual cashiers on the operational requirements of the cashier function and resolving operational problems; and
(5) Coordinating regional security officer (RSO) or domestic security requirements governing cashier security and the transportation of cash.
(6) Establishing a Cashier Operations Emergency Action Plan covering specific actions and instructions that must be undertaken or executed by the Class B and subcashiers during an emergency event or evacuation order (see 4 FAM 832.2 Protection of Funds and Accounting Records in 4 FAM 830 Emergency Evacuation Fiscal Policy).
b. Supervisory personnel failing to carry out or oversee the requirements cited in 4 FAM 390 may be subject to disciplinary action as determined by the Bureau of Global Talent Management, Employee Relations, Conduct and Suitability Division (GTM/ER/CSD), see 3 FAM 4377 and 3 FAM 4546.
4 FAM 393.3-4 Cashier Responsibilities
(CT:FIN-489; 02-27-2024)
a. Cashiers, when specifically authorized by their individual cashier designations, are responsible for one or more of the following:
(1) Making payments and obtaining required receipts for goods and services, such as local transportation and small purchases;
(2) Making interim advances and obtaining required receipts from occasional money holders for authorized payments and small purchases;
(3) Making travel advances to locally employed (LE) staff, personal services contractors (PSCs), and on an exception basis to U.S. direct-hire employees and obtaining required receipts;
(4) Making advances to, and obtaining required receipts from, designated alternates or subcashiers;
(5) Performing accommodation and reverse accommodation exchange in accordance with 4 FAM 362.1 and completing required documentation;
(6) Making change when a local bank is not available and the service is authorized in the post policy governing cashier services provided to post employees and/or temporary duty (TDY) visitors (see 4 FAM 399.4);
(7) Depositing a portion of the Class B cashier’s local currency cash advance in a cashier checking account (when authorized) and obtaining the required receipts supporting disbursements by check or electronic funds transfer;
(8) Receiving collections from and providing required receipts to consulate cashiers and other subcashiers and from employees, contractors, and others for official collection, such as reimbursement of telephone fees, authorized use of official vehicles, etc.;
(9) Receiving consular fees and providing required receipts;
(10) Receiving and disbursing Suspense Deposits Abroad (SDA) funds and completing required documentation as authorized and approved by the post FMO;
(11) Disbursing payrolls for locally employed staff (LE Staff) employees as authorized and approved by the servicing USDO. The cashier must verify the identity of and the authority of each payee to receive payment and must obtain a receipt for each payment. The cashier is responsible for documenting this payment to the servicing USDO and Payroll;
(12) Preparing a daily reconciliation of all funds in the possession of the cashier;
(13) Safeguarding the funds and all related documents;
(14) Depositing local currency checks drawn on foreign banks with the locally designated depositary;
(15) Operating the fund in strict and complete compliance with the regulations in 4 FAM 390, the CUG, and other official instructions;
(16) Making a daily reconciliation of the cashier account when there is daily activity in a cashier account, monthly reconciliation of any cashier maintained local bank checking account, processing interest and bank fees for the cashier account, and recording all movement of funds in official cashier software when the account is not a cashier pass through account; and
(17) Processing collections received in USDO account and processing of deposits for those funds.
b. A cashier is personally accountable for the fund and all related documents until all payment requests are certified for payment by an authorized certifying officer, paid by the cashier, and posted on the ACDC.13 report, and until all cash is deposited in the proper depositary account, or in the event of a loss, or shortage, relief of accountability is granted as provided in 4 FAM 370. The cashier must be able to account for the full amount of funds being held at any given time. Funds may consist of cash, uncashed U.S. Government checks, sales slips, invoices or other receipts for cash payments, unpaid reimbursement vouchers, or interim receipts for cash entrusted to other individuals for specific purposes.
c. A cashier is responsible for safeguarding all official funds and documents. The cashier is not authorized to commingle their own funds or any other money or documentation with U.S. Government funds and documents.
d. A cashier must not, at any time and for any length of time, loan cash from imprest funds; use the funds for personal purposes or benefit; sell United States or host country postage stamps; or deposit public money in financial institutions, unless specific authorization is provided by the servicing USDO.
e. The cashier must keep complete and accurate records of the funds held.
f. Cashiers may not perform personal banking functions for individuals, unless approved by CGFS/FPRA/FP (see 4 FAM 361.5-3k regarding accommodation exchange via EFT).
4 FAM 393.4 Advance of Funds to Cashiers
4 FAM 393.4-1 Composition of Advance
(CT:FIN-471; 05-19-2021)
a. Cashiers may be advanced funds up to the dollar amount shown on their official designation. Domestic Class B cashiers hold funds in dollars only. Overseas Class B cashiers may hold funds in dollars and/or local currency equivalent to the authorized dollar amount.
b. For overseas Class B cashiers, the ratio of U.S. dollars to local currency is based upon estimated needs. A portion may also be held in additional currencies, if necessary, when approved by the financial management officer (FMO) and the servicing USDO. The relative composition of the advance will be maintained by requesting replenishment in the currency disbursed.
4 FAM 393.4-2 Amount of Advance
(CT:FIN-471; 05-19-2021)
a. The FMO or agency supervisor at post or the responsible officer in the domestic bureau must determine the initial permanent advance amount for a new cashier operation in consultation with the USDO and state that amount in the designation request.
b. A cashier’s accountability is authorized as a maximum U.S. dollar amount, but the actual accountable amount is constantly fluctuating as a result of the cashier’s activity. For example, if a cashier with an authorized advance of U.S. dollar equivalent (USDE) 5,000 (cash on hand) receives a single collection of USDE 15,000, the cashier’s accountability is temporarily increased to USDE 20,000. If the cashier then deposited USDE 17,000 into the USDO’s account, the cashier’s accountability would be decreased to USDE 3,000, though the cashier’s maximum authorization remains at USDE 5,000.
c. The advance may not exceed the actual needs of the cashier. Normally, the amount of the advance is the amount of funds the cashier requires for one week’s activity, plus an amount sufficient to cover replenishment turnaround time. Turnaround time is considered to be from the date the cashier releases the replenishment voucher for certifying to the date the cashier receives the corresponding replenishment check/electronic funds transfer(s) (EFT(s)). Under no circumstance may the advance exceed the average cash disbursements for a 1-month period.
d. When conditions warrant, an increase or decrease in the amount of a cashier’s advance authorization or a revised official designation must be processed with justification in the same manner as initial designation. (See 4 FAM 391.5, paragraph d, or 4 FAM 391.5, paragraph e, as applicable, and 4 FAM 393.2.) The USDO provides additional cash to the cashier, or excess cash is returned by the cashier, consistent with approved requirements.
e. The USDO is responsible for determining the cashier’s advance requirement. The FMO, management officer, or domestic officer is responsible for reviewing the cashier’s advance requirement with the assistance of the USDO. The review must be conducted at least annually, and the reviewing official should consult with the USDO (CGFS/DO for domestic cashiers) for any procedures that must be followed and/or for automated software that may be available to assist in the review. At a minimum, the review must consider fluctuating exchange rates (if applicable), changing cash payment requirements for the location, and any other factors affecting the amount of the Class B cashier’s advance.
f. Overseas, the review required by paragraph e must identify whether greater use of EFT is possible. Cashiers are prohibited from using third-party networks (e.g., local post office, bank, etc.), since these payments have the appearance of a local cashier checking account. Cashiers may not transport cash, Treasury checks, other available medium (e.g., stored value card) for processing by a third party.
g. All reviews required by paragraph e must be documented and be signed by the cashier and the FMO at overseas posts, with a copy sent to the servicing USDO for overseas posts and CGFS/DO. Domestically, the review must be signed by the cashier and domestic officer/supervisor and filed in the cashier’s file with a copy sent to CGFS/DO and to the Office of Oversight and Management Analysis Directorate (CGFS/OMA). Emphasis must be placed upon reducing the advance to the minimum level required for the cashier’s needs. A request to reduce the advance must be executed by the reviewer or the official with this responsibility if the review shows that the existing advance is excessive to operational needs.
h. When the cashier requires a temporary increase to the cashier authorized advance to meet the requirements of an exceptional event or circumstance, the FMO should send a cable request for temporary increase to the USDO up to 4 weeks in advance of the event. For emergency needs, when an emergency replenishment may be required for unplanned circumstances, such as environmental emergencies, the temporary increase and emergency replenishment can be requested when the emergency arises.
4 FAM 393.4-3 Safeguarding Advances
(CT:FIN-471; 05-19-2021)
a. To the maximum extent possible, cashiers should be confined to a secure working location and should not be placed in an open office environment. Access to the cashier office should be limited and secured with a lockable solid core door. Bulletproof glass should be supplied in high-traffic or public areas and in circumstances where a non-bulletproof transaction window would negate other security measures.
b. All cashiers must safeguard their funds in a U.S. Government-approved combination safe, code lock safe, or vault (depending upon local conditions) with a manipulation-resistant lock. The storage location must be under the exclusive control of the cashier. Cashiers are prohibited from sharing the combination of their safe. All cashier safe combinations must be changed annually; or when revoking a cashier. The safe combination must be provided to the RSO in a sealed envelope for safekeeping.
c. When the advance and undeposited collections are $1,000 or less, bar-lock cabinets with manipulation-resistant locks may be used overseas. Similarly, bar-lock cabinets may be used domestically with the approval of CGFS/DO when the advance and undeposited collections are $1,000 or less. Overseas and domestic cashiers may not use a locked desk and key-lock cabinets under any circumstance to safeguard cashier funds (see 4 FAM 317).
d. When an alternate cashier has a portion of the Class B cashier’s funds or funds have been advanced to a subcashier for operational needs, these funds must be in a separate combination or code lock safe/drawer, vault, or bar-lock cabinet (see paragraphs b and c) under the exclusive control of the alternate cashier or subcashier. Similarly, the funds should be given the same care for safeguarding as outlined in 4 FAM 317. Cashiers are prohibited from sharing the combination of their safe. All cashier safe combinations must be changed annually; or when revoking a cashier. The safe combination must be provided to the RSO in a sealed envelope for safekeeping.
e. Cashiers are prohibited from safeguarding and/or disbursing personal funds or personal checks of employees, contractors, official visitors, or anyone else, unless received in authorized transactions, such as accommodation exchange or repayment of advances. Cashiers are also prohibited from safeguarding any accountable forms, such as U.S. Government travel requests, U.S. Government bills of lading, or any other money, checks, or documents that are not a part of the fund accountability.
f. Additional information and directions for safeguarding cashier funds can be found in the Cashier User Guide (CUG), Chapter 4.
4 FAM 393.4-4 Additional Guidance for Safeguarding Funds
(CT:FIN-471; 05-19-2021)
For other guidance related to safeguarding of funds, changing safe combinations, etc., see 4 FAM 317.
4 FAM 393.4-5 Payment of Advance
(CT:FIN-471; 05-19-2021)
a. Class B cashier: After receiving an approved designation (4 FAM 061.12), the Class B cashier requests funds via electronic funds transfer (EFT), or, if not available, U.S. Treasury checks (if a dollar advance is authorized) and local currency checks in the amounts needed. These amounts are normally less than the maximum amounts authorized in the designation.
b. If an increase in a cashier’s advance is subsequently authorized, the post cashier, domestic bureau, or office should request additional checks or EFT, as necessary, for the increase. If a decrease is determined, the cashier reduces the amount requested for a subsequent replenishment. An overseas cashier may also deposit local currency to the USDO local depositary, or return U.S. dollar or local currency replenishment checks to the servicing USDO.
c. Alternate cashier: For advances of funds to the alternate cashier, see 4 FAM 398.1-1.
d. Subcashier: The Class B cashier makes an advance to a subcashier in cash. The Class B cashier will issue an advance to the subcashier utilizing the Form DS-4097, Receipt for Cash, as proof of issuance. If the FMO subsequently authorizes an increase or a decrease in a subcashier advance in the fiscal-servicing post, make an adjustment in the amount of cash and in the Class B cashier and the subcashier’s receipt. However, increases must be consistent with advance limitations in 4 FAM 061.13.
4 FAM 393.4-6 Cashier Protection for Cash Movement
(CT:FIN-471; 05-19-2021)
a. The cashier’s supervisor, in collaboration with the appropriate security officer (e.g., bureau/overseas regional security officer (RSO)), is responsible for arranging adequate security to protect cashiers when transporting cash at post. The cashier supervisor and the appropriate security officer must prepare a written policy that outline procedures for trips to the bank to cash replenishment checks or to deposit collections to include guidelines for subcashiers, occasional money holders, CODEL/VIP visits, auctions and proceeds of sales (see 4 FAM 399.4-2(9)). The cashier supervisor and the RSO must conduct a review and release this policy at least annually to ensure that sufficient safeguards exist for transporting cash or to make changes in accordance with local conditions (see also 4 FAM 394.2-1, paragraph b). The policy must be maintained on file with the principal cashier and reflect the signature of the cashier supervisor and RSO as of the last review.
b. The written policy required by paragraph a should include a statement that the cashiers should not be expected to transport cash if the responsible security officer has determined that harm or robbery to the cashier may occur. The policy should provide for armored car service when the conditions and dollar amounts warrant. If armored car services are currently being used or appear to be needed, post should consider making the services bank-provided and bank-funded when bidding bank contracts. The cashier supervisor is also expected to reduce the frequency and amounts of cash being transported to the lowest level possible.
c. Cashiers must not use private vehicles to move cash to locations outside the office, post, or mission (e.g., local bank, hotel, or other facility at a public location), and when required by post security policy, escorts should accompany the cashier.
4 FAM 394 USing an OPERATING CASH ADVANCE
4 FAM 394.1 Responsibilities of Cashier
4 FAM 394.1-1 General Responsibilities
(CT:FIN-471; 05-19-2021)
a. Cashier payments from the imprest fund may be used only for goods and services authorized. All payments must be properly approved in accordance with Department of State and post procurement policies. The cashier is responsible for being familiar with all relevant 4 FAM policies, Federal Acquisition Regulation Subpart 13.305, Imprest Funds and Third Party Drafts, and the Cashier User Guide (CUG) instructions for domestic and overseas cashiers which address transactions, procedures, and documentation.
b. The cashier is responsible for all official funds received and for accounting for all transactions at all times. Overseas cashiers maintain a record of all operating cash advance transactions and collections in the CGFS-approved automated cashier system. Domestic cashiers must use a CGFS-approved automated system or Form DS-7635, Cashier Reimbursement Voucher, and/or Accountability Report, for this purpose. Domestic cashiers should contact the Office of Oversight and Management Analysis Directorate (CGFS/OMA) for guidance on manual and automated processing of this form and other domestic cashier needs. Overseas cashiers may obtain guidance on all required forms and cashiering system procedures by reviewing the CUG or by contacting the Office of Global Disbursing Operations (CGFS/DO).
c. Each cashier, domestic or overseas, is authorized and has the responsibility to refuse to make a payment if any questions cannot be resolved to the cashier’s satisfaction regarding the propriety of the payment, documentation required, or the authority of the approving or authorizing officer. Cashiers can consult with their immediate supervisor, the financial management officer, or the authorized certifying officer to resolve questions. The cashier may request prior certification by an authorized certifying officer of unresolved requests for payment prior to making the payment. Supervisors and managers should never direct or instruct a cashier to make a payment unless the cashier’s questions are resolved or the document is certified prior to payment.
d. All documentation submitted to a cashier must contain the necessary fiscal data to be charged/credited when the cashier is required to make the payment or record the collection. The approving officer is responsible for ensuring that the fiscal data is correct and that submitted transactions are properly funded.
e. Payments are not authorized from the imprest fund to:
(1) Pay personal loans or personal bills;
(2) Purchase bank, postal, telegraphic, or any other type of money order, except when specifically approved by the cashier designation;
(3) Purchase personal calling cards or holiday greeting cards;
(4) Pay traffic fines or tickets;
(5) Pay any U.S. citizen employee reimbursement over $25, unless 4 FAM 394.2-2, subparagraph (3) applies; and
(6) Pay any other charge that is not authorized by statute or regulation.
f. The cashier should not make a routine travel advance and reimbursements for travel expenses through the cashier window. However, cash advances and payments for any traveler can be made in surplus currency locations (up to $3,000 in local currency). Travel advances may also be made in local currency or in dollars, as required, when locally employed staff are not expected or required by post policy to maintain a local bank account. When travel documents cannot be processed in a timely manner for direct-hire U.S. citizens, the post management officer must individually approve the payments under the emergency payment authority. (See 4 FAM 394.2-2, subparagraph (3)).
4 FAM 394.1-2 Authorized Use of Cash Advance
(CT:FIN-471; 05-19-2021)
a. A cashier may make cash payments only in accordance with Department of State provisions in the FAM. Consistent with Federal Acquisition Regulation 13.305, procurements that are advantageous to the U.S. Government may be paid with imprest funds. These payments are limited to $500 for routine payments.
b. A cashier may make cash payments in excess of the $500 limitation only under emergencies or special circumstances authorized in 4 FAM 394.2-1.
c. A cashier should make limited value cash disbursements, in lieu of electronic funds transfer (EFT), check, or other noncash disbursements only when local conditions limit other payment options. The cashier should disburse funds to:
(1) Vendors for payment for small purchases of goods and services;
(2) Employees for advances for making specifically authorized expenditures; or
(3) Locally employed staff for reimbursement of authorized expenditures, such as local transportation and authorized small purchases.
d. A cashier is authorized to make payments to direct-hire U.S. citizen employees and other U.S. citizen employees or contractors for authorized expenditures when amounts are under $25. Payments of $25 or greater should be made via EFT, unless local conditions make such payments a hardship to the employees or contractors. Hardship conditions should be specified in the post policy (see 4 FAM 399.4-2).
e. A cashier may not make unauthorized payments from the imprest fund (see 4 FAM 394.1-1, paragraph c).
4 FAM 394.2 Cashier Payment Limitations, Exceptions, and Special Procedures
4 FAM 394.2-1 Limitation on Cash Payments for Goods and Services
(CT:FIN-471; 05-19-2021)
a. Cashiers are prohibited from personally delivering payments of any type or amount to or for anyone. Cashiers may make payments only through the cashier’s window. The only exceptions occur overseas when the cashier is authorized by the principal officer to provide accommodation exchange at a location outside the embassy for White House trips, congressional delegation (CODEL) visits, or conferences. A management officer may also authorize a cashier to support a mission auction or warehouse sale when appropriate security can be arranged by the regional security officer (RSO) and the financial management officer (FMO).
b. When the principal officer provides this authorization, post management, in conjunction with the security officer, must establish safeguards for both the cash being transported and for any cashier providing accommodation exchange off-site. Further, the safeguards must be reviewed periodically (at least annually) by the security officer and FMO or cashier supervisor. When improvements are needed, implementation must be made in an immediate or timely manner to ensure Department of State financial resources and personnel are adequately protected.
c. The maximum amount for any cash payment may be established in the official designation but may not be in excess of $500 or equivalent, except in:
(1) A bona fide emergency as authorized in 4 FAM 394.2-2; or
(2) Special circumstances related to utility bills and official residence expenses (ORE) (see 4 FAM 394.2-4).
d. In an emergency situation, certified vouchers up to $3,000 may be paid if the procedures in 4 FAM 394.2-2 are followed. The convenience of the payee is not a bona fide emergency or justification for payment in excess of the $500 limit. Payments should not be split to meet the $500 payment limitation.
4 FAM 394.2-2 Cash Payment Exceptions Under Bona Fide Emergencies
(CT:FIN-471; 05-19-2021)
To justify an exception to the limit of $500 on a cash payment, the bona fide emergency should have elements similar to the following:
(1) A crisis requiring unusual or immediate action, such as disaster relief or protection of life or property;
(2) A recurring payment normally by check cannot be made because the check does not arrive by the due date and a replacement cannot be obtained in time. Examples are payroll payments to employees and payments to lessors or contractors with contractual due dates (see 4 FAM 394.2-7); and
(3) A key post operation or a traveler will be delayed and the mission purposes cannot be achieved as a result.
4 FAM 394.2-3 Vouchering Emergency and Special Circumstance Cash Payments
(CT:FIN-471; 05-19-2021)
a. To process an emergency cash payment, each voucher or subvoucher supporting the emergency payment must have the justification written on the voucher with “Approved for emergency payment” signed by the domestic bureau executive director, or by the principal officer at a post, or a designee authorized in writing. The designated approving officer for emergency payments cannot be the FMO, the authorized certifying officer, or the cashier. The financial management office should obtain such approval before paying the voucher. Relevant documentation must accompany the voucher if necessary to support the justification.
b. Cash payments not specifically authorized in other FAM sections (e.g., 4 FAM 394.2-4) that will exceed the $3,000 emergency cash payment limitation should be approved in advance by the Office of Financial Policy (CGFS/FPRA/FP). If the payment must be made for life threatening, national security, or other emergency circumstance that precludes the ability to seek advance approval, the financial management office must forward a notification with an explanation to CGFS/FPRA/FP as soon as practicable.
c. If a cash payment is authorized that exceeds the $500 limitation on a nonemergency payment or the $3,000 limit for an emergency payment, the current authorizing approval (letter, telegram, memo, etc.) must be maintained on file consistent with 4 FAM 394.2-6. The approving officer’s signature is not required. If the authorizing instruction is sensitive but unclassified or classified, a statement to that effect with the signature of the approving officer is required on the voucher.
4 FAM 394.2-4 Special Rules for Utility and Official Residence Expense (ORE) Payments
(CT:FIN-471; 05-19-2021)
a. In those countries in which utility companies demand settlement of invoices within a timeframe too limited to process a voucher for electronic funds transfer (EFT) or check issuance by the servicing U.S. disbursing officer (USDO), the principal officer may approve the practice of paying utility bills in cash. The servicing USDO must be notified of such approval, which will require annual review and re-notification. After this notification to the USDO, each subsequent utility payment does not require the principal officer’s signature for the cash payment over $500, but a certified voucher must support each payment. When the public transportation of cash by utility or vendor personnel is not expedient, and interbank transfers are possible, the financial management office should make arrangements to pay vendors and/or utility bills with the servicing USDO. The post must submit payment data to the USDO to facilitate USDO effort to initiate an electronic bank interaccount transfer to credit the payee’s account and charge the USDO’s account.
b. When approved by the principal officer, official residence expenses (ORE), as authorized in the Department of State Standardized Regulations (DSSR) 400, may be advanced or reimbursed from a cashier’s advance. A certified voucher must support the payment by the cashier. Funds for the payment shown on the voucher may be obtained from the cashier on an interim receipt signed by the principal representative, to be replaced with paid receipts consistent with the requirements for an occasional money holder. The limit for payment of ORE expenses in cash is the amount on the certified ORE voucher. Reimbursement payments for ORE expenses may be paid only to the “Principal Representative” (as defined in Chapter 400 of the Standardized Regulations) or to vendors, not to ORE staff.
4 FAM 394.2-5 Nonemergency Cash Payments for Special Circumstances
(CT:FIN-471; 05-19-2021)
When a cash payment in excess of $500 must be made for a specific event or time period, the principal officer or designee of the fiscal-servicing post may grant approval. It may remain in effect until canceled (i.e., cash transactions to support an event such as a CODEL visit or a conference). The approval document must be referenced on the payment voucher in lieu of attaching a copy for continuing payments.
4 FAM 394.2-6 Department Cash Payment Limitation Waivers for Extraordinary Circumstances
(CT:FIN-471; 05-19-2021)
a. If a post concludes that due to unique or extraordinary circumstances (e.g., post operates in a cash-only economy), the cash payment limitations are unduly restrictive ($500 for routine payments and up to $3,000 for emergencies), the post may request an exception to 4 FAM 394.2-1, paragraph c, from CGFS/FPRA/FP. The post must document its justification (e.g., cash economy, unstable local banks, etc.). The exceptions granted are usually limited to 12 months but may be renewed if submitted with a detailed justification showing the actual number of cash payments processed during the current waiver period, payee, and a description for the payment as well as the actual payment date and dollar amount. Also required is an explanation of steps that management has taken to reduce overall cash payments during the waiver period and a statement that none of the processed cash payments violated local law. Renewals requests must be submitted at least 30 days prior to expiration.
b. When an exception is approved by CGFS/FPRA/FP, a copy of the exception must be maintained and kept on file in the cashier’s administrative folder along with the designation letter and advance information.
4 FAM 394.2-7 Funding for Emergency Payroll
(CT:FIN-471; 05-19-2021)
For overseas posts, procedures are established by the servicing USDO for funding of payments in emergency situations. The emergency procedures include funding for payment of salaries and allowances by a post cashier in the event payroll checks are not received when regularly scheduled. Arrangements are also developed for cash funding of other emergency requirements at serviced posts. The instructions for emergency funding, payment, and reporting are issued by each USDO for guidance of cashiers and other personnel concerned at the posts.
4 FAM 394.2-8 Issuing Cash Advances
(CT:FIN-471; 05-19-2021)
The cashier may give a cash advance to a person authorized to carry out U.S. Government business (e.g., make a small cash purchase in the local economy) or for other reasons. The person who receives the advance is accountable for the funds and must provide the cashier with a certified voucher payment and/or have a written designation on file from the FMO, management officer, or U.S. citizen supervisor to receive advance funds.
(1) Occasional money holders: Are employees who are designated by the FMO, management officer, or U.S. citizen supervisor. The cashier must advance cash based only on a properly approved document signed by an officer who has the authority to approve a small procurement and the required advance. The documentation for an occasional money holder must specify whether the designation is a one-time designation for a specific task (e.g., paying a voucher in cash) or a permanent designation allowing for multiple future advances (e.g., making miscellaneous small procurements). The advance extended to the occasional money holder must include the fiscal data associated with the activity (e.g., cash payment, miscellaneous small procurements, etc.) the occasional money holder will be performing. The individual will be held personally liable for the advance if a proper accounting for the funds is not made within the prescribed time limits (see 4 FAM 394.4). All occasional money holder designations must be on file and maintained in a safe or as a secure virtual record.
(2) Alternate cashier advance: A principal cashier may advance part of the imprest fund to a designated alternate cashier. When determining an adequate advance for an alternate cashier, the cashier supervisor and principal cashier should consider an amount that will allow the alternate to sustain the cashier operations in the absence of the principal cashier. This amount is generally four days’ worth of operating funds. Both the principal cashier and alternate cashier will maintain the Cash Transfer Between Cashiers document on file.
(3) Subcashier advance: The principal or an alternate acting principal Class B cashier may advance funds to a subcashier up to the amount of the subcashier’s designation and must obtain a Form DS-4097, Receipt for Cash, for the amount advanced.
(4) Certified voucher payment: Cashier may process advance payments based on a certified voucher Form DS-2076, Purchase Order Receiving Report and Voucher, and supporting documentation. The maximum amount of a cash advance is $500, except in a bona fide emergency when the limit is $3,000 (see 4 FAM 394.2-1).
(5) Travel advance payment: Cashier may process travel advance payments based on a certified voucher Form DS-2076, Purchase Order Receiving Report and Voucher, and supporting documentation.
4 FAM 394.2-9 Receipt Requirements for Subvoucher Payments
(CT:FIN-471; 05-19-2021)
a. All subvoucher payments from the imprest fund require a valid receipt. Each payment must be supported by one of the following:
(1) Form OF- 1164, Claim for Reimbursement for Expenditures on Official Business;
(2) Original bill;
(3) Sales slip;
(4) Cash register ticket;
(5) Invoice;
(6) Form DS-4097, Receipt for Cash; or
(7) A paid or equivalent receipt form from the vendor that itemizes supplies or services purchased with the respective amounts. Signed cash receipts are not required.
b. All receipts must:
(1) Be original or bear the dated signature of the person presenting the receipt with a notation that the original is not available and the copy serves as the original;
(2) Show the signature and date of the purchase from the vendor if more than $25. The receipt must be itemized and describe the item(s) purchased. A receipt for $25 or less can be a simple cash register tape. The receipt must be itemized and describe the item(s) purchased, but does not have to be signed by the vendor;
(3) Be written in English, or be translated into English in sufficient detail to identify the goods or service procured, purpose of the procurement, and show evidence that the goods or service have been received;
(4) Be administratively approved and dated with the complete signature, and full name (not initials), of an officer who has been delegated authority to approve the procurement of goods or services; and
(5) Be signed and dated by the person actually receiving the cash from the imprest fund cashier.
c. The cashier must mark all receipts and supporting documents “PAID” immediately when they are paid. These paid receipts must be sequentially numbered when paid, beginning with number 1 at the start of each fiscal year if a CGFS-approved system process is not in place to automatically perform this task.
4 FAM 394.2-10 Accommodation Exchange
(CT:FIN-471; 05-19-2021)
See 4 FAM 360 for accommodation exchange guidance.
4 FAM 394.2-11 Replenishment and Accounting for Funds
(CT:FIN-471; 05-19-2021)
a. Cashier advances should be replenished regularly to maintain adequate funding for normal cashier operations. The Class B cashier or alternate cashier acting as principal cashier at an overseas post enters regular cashier replenishment requests into the cashiering system which must be certified and submitted to the USDO for replenishment by check or EFT (the EFT option can only be selected if a cashier bank account has been established into the cashiering system). Replenishments can be requested in any currency the cashier has been authorized for. However replenishment requests cannot cause the cashier’s projected accountability to exceed authorized advance limitations.
b. Domestic cashiers and overseas principal cashiers in locations without access to the cashiering system must use Form DS-7635, Cashier Reimbursement Voucher, and/or Accountability Report to obtain replenishment for funds disbursed from the advance. The preparation and distribution of Form DS-7635 for overseas cashiers is shown in the CUG, Chapter 5. Processing Form DS-7635 vouchers for payment will be in accordance with standard post vouchering procedures. Domestic cashiers should prepare Form DS-7635 in accordance with procedures established by CGFS/OMA.
(1) The cashier must sign all Forms DS-7635 and be processed through the certifying officer, who must also sign the DS-7635. If the certifying officer questions an expenditure or documentation on the DS-7635, the receipt in question is returned to the cashier for correction or submission on the next DS-7635 until the matter is settled.
(2) The overseas FMO or domestic financial officer will review the Form DS-7635, at least quarterly, to ensure that replenishment is commensurate with actual needs and do not exceed the maximum limitations (see 4 FAM 393).
c. The principal cashier at post can request an emergency replenishment if urgent circumstances arise that prohibit post from obtaining replenishment via the normal process. The principal cashier must enter the request into the cashiering system or use Form DS-7635 if in location without access to the cashiering system and submit a cable to the USDO requesting an emergency replenishment. Based on the urgent circumstance, the USDO may approve an emergency replenishment request. Examples of urgent circumstances that may warrant an emergency replenishment request include: unanticipated absence of key personnel, system related issues with the cashiering system, country instability or regional disruptive issues, and lost or delayed mail.
4 FAM 394.3 Subcashiers and Alternate Cashiers
(CT:FIN-471; 05-19-2021)
a. The regulations in 4 FAM 394, which apply to the Class B cashier’s use of the operating cash advance, also apply to subcashiers and to alternate cashiers.
b. To obtain a replenishment from a cashier, a subcashier or an alternate cashier submits a request accompanied by receipts with either Form DS-7635 or a signed Form DS-4097, Receipt for Cash.
4 FAM 394.4 Occasional Money Holders
(CT:FIN-471; 05-19-2021)
a. An occasional money holder has the authority to receive an advance and make small purchases. The person must be a U.S. Government employee duly designated by a direct-hire U.S. citizen supervisor, FMO, or management officer, and a written copy of the designation must be on file with the Class B cashier. Locally employed staff hired under a PSA or PSC exempt from Office of Federal Procurement Policy (OFPP) Policy Letter No. 11-01 “Performance of Inherently Governmental and Critical Functions” may be occasional money holders (see 4 FAM 061.14). This designation may not be extended to contractors that are not exempt PSAs or PSCs. The employee is advanced the funds by the Class B cashier or by a subcashier on the basis of a hand receipt for cash, subvoucher, or equivalent and is held accountable to the person issuing the advance. Cashiers may never advance funds to an individual who has not been officially designated as an occasional money holder.
b. Overseas occasional money holders may hold funds for a period not to exceed 3 business days, such as a messenger or an employee in the GSO’s office who is designated to buy small amounts of supplies. While 3 business days is the maximum time limit for an outstanding advance, CGFS/FPRA/FP recommends that the FMO establish policies and procedures limiting the advance to 24 hours or less.
c. While performing the unannounced cash counts, it is the cashier’s U.S. citizen supervisor’s responsibility to review any and all outstanding advances to occasional money holders. After the verification is completed, the cashier’s supervisor should contact all holders with advances more than 3 days old. The Class B cashier maintains the documentation pertaining to the actions taken, along with the occasional money holder designation.
d. Amounts advanced to domestic occasional money holders must be charged to fiscal data associated with the task being performed and be settled by close of the cashier’s office hours on the day following the day on which the advance was provided.
4 FAM 395 CLASS B CASHIER ACCOUNTS
4 FAM 395.1 General Provisions
(CT:FIN-471; 05-19-2021)
a. Under normal circumstances, cash is deposited into accounts maintained by the U.S. Treasury or U.S. disbursing officers (USDOs). Depository accounts are used primarily to receive replenishment via electronic funds transfer (EFT) from the USDO or to make small EFT payments to local vendors. In unusual cases, the USDO may authorize maintaining cash balances in commercial bank accounts or in accounts of other financial institutions. Cashiers are not permitted to issue commercial checks or EFT payable to either employees or vendors unless granted specific authority to do so by the Department of the Treasury or by statute. Accounts may not have overdraft protection.
b. There are two types of bank accounts that can be authorized by the USDO:
(1) Pass-through Accounts (PTAs) are authorized strictly for the purpose of receiving cashier replenishment. The funds received for replenishments must be withdrawn from the account in a timely manner, generally no later than the day following the business day the credit was made to the account. This facilitates maintaining a zero or USDO-authorized minimum account balance. The USDO may authorize maintaining a small minimum balance on the account to keep the bank from closing the account or charging fees. If approved the minimum balance will be stated on the authorization cable.
(2) Cashier Checking Accounts are authorized to receive cashier replenishments and to make payments to vendors via EFT or check. All other transactions with the exception of deposits of cashier replenishments (i.e., collections, accommodation exchange, deposits from vendors) are prohibited. Cashiers are authorized to deposit proceeds of currency sales to reduce excess funds, which must be immediately swept to the USDO bank account. Balances in these accounts are part of the cashier’s overall cashier accountability. Payments made though a cashier checking account are still considered cash payments and all restrictions and limitations on cashier payments are applicable. Additional limitations may be established by the servicing USDO, the financial management officer (FMO), or the principal authorized certifying officer.
c. Signature cards must be completed for all authorized signers on a cashier bank account, to include the USDO or designee. The principal cashier must be a signatory on a subcashier bank account.
d. Establishing a cashier account is subject to prior approval of the Office of Global Disbursing Operations (CGFS/DO) for domestic cashiers and the servicing USDO for overseas cashiers. It is both the cashier and the cashier’s U.S. citizen supervisor’s responsibility to ensure that the necessary authorization has been obtained and that a record is being maintained on the decision to establish the cashier account.
e. The request for approval must contain a full explanation of the necessity for the cashier account. Unless specifically authorized, accounts for overseas cashiers are established in local currency only. If an account is established overseas, the Class B cashier and the FMO are subject to the control, reporting, and recordkeeping requirements of the servicing USDO.
f. Cashier accounts may not be opened or operated without post servicing USDO authorization. Where USDO authorization has been received, only funds advanced to the cashier by the USDO may be included or deposited to the cashier account. No other post-held funds or payments can be deposited or withdrawn from this account.
g. Cash deposited into a cashier account is part of the regular authorized advance from the USDO. The cashier must follow all regulations that are effective for any regular cashier payment. Establishing a cashier account should not be a reason for requesting an increase to the cashier’s authorized advance.
h. The cashier is responsible for a reconciliation of the account. Interest and fees should be processed at least weekly, and each transaction in the account must be recorded. The FMO or U.S. citizen supervisor is responsible for a monthly reconciliation. The cashier account reconciliation records must be included in the Class B reconciliation package submitted to the USDO under 4 FAM 397.1-2, subparagraph c(7). Any discrepancy with the cashier account must be explained and immediately reported to the USDO. Copies of the account statements for PTAs and cashier checking accounts must be signed by both the cashier and the FMO (or U.S. citizen supervisor) and be attached to the monthly cashier reconciliation.
i. Cashing checking account records must be retained in accordance with record retention policies for 6 years after final payment or cancellation, but longer retention is authorized if required for business use. See 5 FAH-4 for records management guidance. The reconciliation and all supporting documents for a cashier account are retained by the cashier supervisor (not the cashier) in accordance with Treasury Department instructions and 4 FAH-2 H-820. When the post’s record retention schedule or storage space makes this impossible, the reconciliations and/or Form DS-7629, Statement of Designated Depositary Account, are forwarded to a records center for retention for the required period.
j. Interest earned on the account is withdrawn from the bank with the purpose for which drawn, noted as: “Interest earned from (date) to (date).” The amount is to be deposited to the local depositary account of the USDO or remitted to the USDO for deposit. The amount is recorded as a collection to receipt account 20 1435. Form OF-158, General Receipt, should be completed in accordance with 4 FAM 320, and on the cashier’s accountability record, maintained for official collections in accordance with 4 FAM 396 and the Cashier User Guide (CUG), Chapter 11.
k. Service charges on the account, if any, are paid from the operating cash advance and charged to the post’s allotment by a petty cash subvoucher, which should be cross-referenced to the bank statement from which the service fee is deducted.
l. The cashier must maintain a permanent official register of all checking account transactions. This register must be retained in accordance with the Department of State Records Management Handbook. See the CUG, Chapter 11, for detailed procedures when reconciling the cashier’s checking account with the bank statement.
4 FAM 395.2 Establishing a Cashier Account
(CT:FIN-471; 05-19-2021)
a. Overseas, the account is established in a local bank or institution, which has been designated as a U.S. Government depositary, under the title “United States Cashier, Department of State” or the name of the agency if other than Department of State. The Class B cashier is designated as the principal drawer on the account. The USDO is designated as the alternate drawer, to act only in the event of disability, death, or disappearance of the Class B cashier or other emergency. The cashier may, in writing, authorize the cashier’s alternate to sign checks drawn against the accounts, as circumstances may warrant.
b. Domestically, third-party draft accounts should be utilized to the maximum extent possible, as prescribed by the Treasury Financial Manual, Volume I, Part 4A, Chapter 3000. A bureau or an office must have a very strong justification to receive approval for a new checking account, and all existing checking accounts must be reviewed annually by the Office of Oversight and Management Analysis Directorate (CGFS/OMA). Requests for new accounts from domestic bureaus and consular offices must be submitted to the Office of the Associate Comptroller (CGFS/S). If CGFS/S determines that a domestic checking account is necessary, CGFS/S must prepare a detailed written justification that the account cannot be converted to third-party draft arrangement.
4 FAM 395.3 Monthly Cashier Checking Account Reconciliation
(CT:FIN-471; 05-19-2021)
The FMO, management officer, U.S. citizen supervisor, or designated CVO must complete a monthly reconciliation for the principal cashier checking account. The verifying officer will review the supporting documentation to validate the transactions that are processed on the bank statement and the automated cashier system. All incoming and outgoing transactions that appear on the bank statement must have supporting documentation. The verifying officer signs and dates the reconciled bank statement to confirm the cashier checking account verification. Form DS-7629, Statement of Designated Depositary Account, and the bank statement are submitted to the USDO. Detailed instructions for performing the principal cashier checking account reconciliation are contained in the CUG, Chapter 13.7.6.
4 FAM 395.4 Other Electronic Funds Transfer (EFT) Issues and Account Adjustments
(CT:FIN-471; 05-19-2021)
Once the cashier has processed an EFT, it cannot be canceled. However there are steps that can be taken when an EFT is unsuccessful or when the payee does not receive payment within a specified timeframe from a cashier checking account. Cashiers should review the CUG, Chapter 10 for detailed procedures on how to process the following:
· EFT delivery problems
· Voided checks
· Undeliverable checks
· Uncurrent checks
· Cancellation of checks
· Replacement and substitute checks
4 FAM 395.5 Change in Cashier
(CT:FIN-471; 05-19-2021)
Whenever there is a change in the Class B cashier, and in order to establish definitely the accountability of each cashier, the outgoing cashier and the incoming cashier should obtain a bank statement showing the balance in the account; develop the list of outstanding checks; and reconcile the bank account.
4 FAM 396 COLLECTIONS
4 FAM 396.1 General Provisions
(CT:FIN-471; 05-19-2021)
a. The CGFS employee authorized by the CGFS Washington Liaison Office (CGFS/F/WO) and the Bureau of Consular Affairs (CA) cashiers at the passport and other domestic CA locations are authorized to accept cash collections. If a collection must be made at another domestic location, specific authorization must be granted by the Office of the Associate Comptroller (CGFS/S).
b. At overseas posts, Class B cashiers must accept all official collections with supporting documentation. Subcashiers and alternate cashiers may perform only those collection activities authorized in writing by the financial management officer (FMO). The number of employees entrusted with this function must be kept to the minimum consistent with good administrative control. Procedures for the collection and handling of consular fees are found in the Cashier User Guide (CUG), Chapter 6. Cashiers are responsible for the custody and safekeeping of all collections until they have been deposited by the cashier or remitted to the U.S. disbursing officer (USDO), as applicable. (See 4 FAM 317, 4 FAM 320, and the CUG, Chapter 6.)
c. Cashiers are prohibited from holding and/or disbursing cash or negotiable instruments unrelated to their official accountability (see 4 FAM 393.4-3, paragraph c).
d. Consular subcashiers must deliver all collection funds and supporting documents to a Class B cashier at the close of each day or as soon as possible based on local conditions but no less than weekly. The consular subcashier will use one of the following methods to deliver consular collection funds and documents to the principal cashier:
(1) Remit collected funds and negotiable instruments directly to the principal cashier;
(2) Use a contracted service for pick up and transport, if applicable; or
(3) Deposit funds directly into a specified USDO local currency bank account (this process requires USDO approval).
e. Cashiers are not authorized to accept any postdated or predated personal checks. All personal checks should be accepted only on the date presented. Cashiers are also expected to question and refuse to accept any check if the check does not have a preprinted address. However, the preprinted address requirement may be overridden by the FMO for unusual circumstances (i.e., new bank account for a Department of State employee, etc.). When a decision to override occurs, the FMO must initial the check in the presence of the cashier.
f. Cashiers must immediately endorse all local currency and U.S. dollar checks “for deposit only” and follow the USDO’s instructions to deposit the checks or to remit them to the USDO. (See 4 FAM 394.2-10, paragraphs g and h, and the CUG, Chapter 7.)
g. Collected funds, including consular fees, may be kept with the cashier’s operating cash. All collections in excess of cashier needs and/or authorized advance levels must be deposited in accordance with 4 FAM 396.5, paragraph d.
4 FAM 396.2 Exchange Rate for Collections
(CT:FIN-471; 05-19-2021)
With few exceptions, cashiers must use the prevailing rate of exchange. This is the most favorable foreign exchange rate available to the U.S. Government for acquiring foreign exchange for its official disbursements and accommodation exchange transactions. The official USDO rate of exchange for all currencies is listed on the International Currency Exchange Rates website. Class B cashiers are responsible for notifying alternate and subcashiers of the daily rate.
4 FAM 396.3 Types of Collections
4 FAM 396.3-1 Official Collections–General
(CT:FIN-471; 05-19-2021)
a. Official collections processed by cashiers are amounts received for credit to appropriation accounts (repayments, including refunds and reimbursements) when authorized by statute, or to general fund receipt accounts. Other official cashier collections may be for specific deposit accounts or include deposit amounts from employees or other parties that the Department of State will pay on behalf of the individual or party making the deposit.
b. Official collections include consular collections, medical and travel advance repayments, donations by host-country and U.S. businesses to fund 4th of July celebrations at post, general fund receipt collections (i.e., interest on public money/cashier accounts, telephone bills, or damage to property), proceeds of sale, and collections to the Treasury account for funds received that the Department of State does not have the authority to retain.
4 FAM 396.3-2 Deposits Accounts
(CT:FIN-471; 05-19-2021)
a. Cashiers deposit official collections into U.S. Government accounts. The Department of the Treasury has several accounts for official collections accepted by overseas and domestic cashiers. When domestic and overseas cashiers make official collections that must be deposited to a deposit account (Treasury X6000 series account), they must identify the correct account and follow the collection and deposit procedures identified at 4 FAM 320, 4 FAM 396.4, and 4 FAM 396.5. Cashiers should also review the procedural information available in the CUG, Chapter 6.
b. The Suspense Deposits Abroad (SDA) with fund symbol 19X6809 is for official collections that are received for payments on behalf of and as directed by the depositors. Cashiers are authorized to accept and deposit collections to this account on behalf of third parties. Similarly, cashiers are responsible for ensuring that amounts received are appropriately disbursed and/or returned. The cashier will use 19X6809 for SDA collections, corresponding payments, or transfers to other collection funds.
4 FAM 396.3-3 Budget Clearing Account (-F3875)
(CT:FIN-471; 05-19-2021)
a. When an official collection is received and the complete appropriation or account is not known, cashiers should contact the Office of Oversight and Management Analysis Directorate (CGFS/OMA) for guidance before depositing the funds to the Budget Clearing Account (—F3875) of the Department of State or agency for which the collection was received.
b. Agency representatives at the post should furnish complete accounting data to be credited for collections received for their agencies. If this cannot be provided at post, cashiers should forward all the available information and request additional guidance and assistance from the Department of State’s serviced agency liaison.
4 FAM 396.4 Recording Collections
4 FAM 396.4-1 All Collections Except Consular Fees
(CT:FIN-471; 05-19-2021)
Form OF-158, General Receipt, is used to record all domestic and overseas cashier collections. It also serves as a receipt for the person from whom the money is received. Form OF-158 is either an automated cashier system-generated form with a system generated control number, or if issued under manual operation, obtained from the Cashier User Guide (CUG), Appendix A and recorded in a master log book. The cashier must issue Form OF-158 at the time the collection transaction occurs. The preparation and distribution of Form OF-158 is illustrated in the CUG, Chapter 6.
4 FAM 396.4-2 Consular Fee Collections Overseas
(CT:FIN-471; 05-19-2021)
a. The recording of consular fee collections overseas is described in 7 FAH-1 H-730 (Consular Management Handbook). There is also procedural information on consular collections in 4 FAM 320 and the CUG, Chapter 6. Post cashiers must follow these instructions and may not establish their own. The Class B cashier must issue a Form OF-158, General Receipt, for all consular collections received from the consular subcashier.
b. In many locations, an offsite facility (bank or other fee collection entity) is used for the collections of MRV (Machine Readable Visa) fees. The MRV fees are transferred directly into the USDO accounts and a deposit notification is sent to the designated point of contact at post. The Class B cashier must issue a Form OF-158, General Receipt for offsite MRV collections received for the amount reported on the daily USDO bank collection statement and confirmed by the deposit notification.
4 FAM 396.4-3 Consolidated Record of Collections
(CT:FIN-471; 05-19-2021)
a. All cashier and subcashiers authorized to make cash collections must maintain an accountability record showing consolidated control of all collections received. This requirement applies to all overseas cashiers and subcashiers authorized to make collections and the Main State cashier. Cashier collections at the Passport offices and other domestic CA facilities may be processed through CA bank deposit channels and CA equipment designed to track collections. However, CA collection procedures must be consistent with the CGFS policies and procedures identified 4 FAM 396.1.
b. All overseas collection amounts are recorded daily as “Official Collections.” Authorized costs, which are deductible from certain collections, such as payments for advertising, may be recorded or shown on the collection document as a deduction. Procedures for preparing and maintaining official collections are illustrated in the CUG, Chapter 6.
c. The cashier responsibilities for maintaining official collection records, executing required processes, and using approved software are described at 4 FAM 394.1-1, paragraph b.
4 FAM 396.5 Disposition of Official Collections
(CT:FIN-471; 05-19-2021)
a. All official overseas collections must be credited to USDO accounts, which are noted on Form OF-158, General Receipt, for each collection.
b. Cash collected by cashiers may not be used for payments without recording the collection. If a payment from a collection is considered necessary (e.g., paying advertising expenses from a proceeds of sale), the cashier or FMO should contact the servicing USDO for specific instructions on how to process.
c. Cashiers will dispose of collections in one of the following ways:
(1) Deposit excess collections above cashier-authorized levels to the account of the USDO (local currency) or a Treasury General Account (TGA) (for dollars) or transmit them to the USDO for deposit in accordance with 4 FAM 396.5, paragraph d. In the latter case, currency itself should not be shipped;
(2) In cases where local currency collections are in excess of cash disbursement requirements (collections exceed amounts that can be used to cash replenishment checks) and local regulations do not permit the deposit of the excess local currency to a USDO account, request guidance from the servicing USDO; and
(3) In cases where U.S. currency collections are in excess of operating cash requirements (collections exceed amounts that can be used to cash replenishment checks), and local financial institutions will not sell U.S. dollar money orders or the equivalent U.S. currency, request guidance from CGFS/S and the servicing USDO. Do not ship U.S. currency by mail or pouch without specific guidance and clearance from CGFS/S.
d. Collections that exceed cashier needs or advance limitations must be deposited by means of one of the above methods on a daily basis if the collected amount is $5,000 or more. Collections of less than $5,000 may be accumulated and deposited when the total reaches $5,000. Deposits must be made by Thursday or the last workday of each week, regardless of the amount accumulated. Detailed instructions and procedures concerning the disposition of collections at post are contained in the CUG, Chapter 7.
4 FAM 396.6 Special Requirements for Suspense Deposits Abroad Collections
(CT:FIN-471; 05-19-2021)
a. Suspense deposits abroad (SDA) collections are received by posts from individuals for specified payments on their behalf. The moneys received are recorded and deposited or remitted in the same manner as other official collections. When payments are made as requested by the depositor, the amounts are paid in the same manner as other official payments. For a cashier operation, this means that the SDA moneys are received, documented with a Form OF-158, General Receipt, and recorded as collections with the moneys deposited or remitted accordingly.
b. The payments against the SDA deposits are not paid from the collected moneys themselves but from the cashier’s operating cash advance against a certified voucher chargeable to 19X6809. Payments from a SDA account must be by certified voucher. Using SDA accounts is limited to specific transactions, and cashiers must comply with the authorized use of these accounts (see 4 FAM 326). For full details of SDA transactions and for the additional control record to be maintained for SDA collections and payments, see 4 FAM 320 and the CUG, Chapter 6.
4 FAM 397 CONTROL OF FUNDS
4 FAM 397.1 Class B Cashier
4 FAM 397.1-1 Reconciliation of Funds
(CT:FIN-471; 05-19-2021)
a. Operating advance: All Class B Cashiers must reconcile daily when cashier transactions have been performed. Overseas cashiers use the automated Cashier’s Reconciliation Statement. The operating cash advance reconciliation consists of the actual physical count of all cash on hand and of ensuring that all cash advances to subcashiers, cash expenditures, accommodation exchange, and collection transactions are properly documented. The advance is in balance when the total of these documents, the amounts of any replenishment vouchers in transit, and the cash on hand equal the amount of the operating cash advance. The cash on hand must equal the balance shown for each type of currency. Detailed information for overseas cashiers is identified in the Cashier User Guide (CUG), Chapter 12.
b. Cashiers must retain electronic or hard copies of daily reconciliations for 60 days. The cashier must sign all reconciliations using an official digital signature or manual signature (see CUG, Chapter 12). If a fiscal irregularity is identified prior to disposing of the daily reconciliations, cashiers must retain all daily reconciliations pertaining to the fiscal irregularity for 6 years after fiscal irregularity case resolution and closure.
c. Detailed guidance for overseas posts for the performance of unannounced verifications is found in the CUG, Chapter 13.
4 FAM 397.1-2 Verification of Funds—General Provisions
(CT:FIN-489; 02-27-2024)
a. Unannounced verifications of a Class B cashier must be conducted monthly with the day and time varying from month to month, regardless of the advance amount. This requirement applies to domestic as well as overseas cashiers. Usually, the U.S. citizen supervisor for the overseas cashier or the bureau supervisor of the domestic cashier performs the verification. Overseas, the U.S. citizen supervisor, with the approval of the U.S. disbursing officer (USDO), can assign the responsibility to a qualified locally employed staff (LE staff) person, including an eligible family member (EFM). However, acceptance of this collateral duty by the LE staff member should be on a voluntary basis. An employee in this role is referred to as a cash verification officer (CVO). See 4 FAM 061.16 for CVO designation guidance. A U.S. direct-hire employee may perform the verification without being designated as a CVO.
b. When a verification is performed, the U.S. citizen supervisor or the CVO must complete and sign and date the verification showing the day, month, and year in which the verification was performed. The Class B cashier or U.S. citizen supervisor must submit the completed verification package to the USDO, with copy to the FMO, within 5 business days of performing the verification of funds. The USDO must receive an unannounced cash count for each of the 12 months in a calendar year.
c. CVO verification of cashier funds must be performed in accordance with the following requirements:
(1) Once the authority to perform cash verifications responsibilities is received, the CVO may perform the cashier verification when directed by the U.S. citizen cashier supervisor. However, the U.S. citizen cashier supervisor is required to perform a verification at least once a quarter or more frequent if required by the USDO;
(2) When the CVO performs the monthly verification, they must sign all required documents (i.e., Form GFS 365, the CUG verifying officer’s checklist, etc.). By signing the Form GFS 365 package, the CVO acknowledges accuracy of the verification and accepts responsibility for any incorrect information reported. In addition, the CVO should bring any operational deficiencies to the attention of the U.S. citizen supervisor;
(3) If the CVO discovers that a cashier does not balance during the monthly cashier verification, they must immediately notify the financial management officer (FMO), regional FMO (or U.S. citizen cashier supervisor), who must then perform their own verification. When neither the FMO nor the U.S. citizen supervisor is available, the management officer must be informed and must perform the required action. If the discrepancy still exists, report it to the USDO, who will advise whether the condition should be reported as a fiscal irregularity in compliance with 4 FAM 397.3.
d. The U.S. citizen cashier supervisor remains responsible for ensuring that the unannounced cashier verifications and reporting procedures are performed in accordance with the requirements in 4 FAM 397.1-2, paragraph a, and 4 FAM 397.1-2, paragraph b. In addition, the U.S. citizen supervisor is responsible for any deficiencies in the cashier operation, and failing to carry out the responsibility to protect U.S. Government funds from waste, fraud, or misuse may be subject to disciplinary action by the Department of State.
e. A “rover” or “cashier monitor” serves a function similar to a CVO. However, the rover or cashier monitor performs cash verifications at multiple locations instead of a single location. Individuals who are officially assigned “rover” responsibilities and perform Form GFS 365 verifications when visiting various posts are given a special regional authority to perform cash verifications. If the rover is hired by the regional bureau, the executive director of the bureau requests the servicing USDO to authorize the individual to perform CVO responsibilities. If the rover is hired by CGFS to perform regional responsibilities, the individual must meet the CVO qualification criteria in 4 FAM 061.16 subparagraph (1) and be approved by the USDO. The USDO reserves the right to revoke the rover/cashier monitor regional authority to perform the monthly verification of funds at any time, if the USDO determines there is cause for revocation.
f. The number of cash verifications per month by a CVO, rover, cashier monitor, or cashier supervisor may vary from location to location, depending upon the experience of the cashier, the complexity of the cashier operation, the length of time the immediate supervisor has served at the location, etc.
g. All verifications must take place in the presence of the cashier. The verifying officer must completely document, sign, and date each verification and ensure it is also signed by the cashier. The verifying officer must give the cashier a copy of each verification and all supporting documents, including Form DS-3059, List of Items on Hand and List of Transmittals in Transit, and the verification checklist shown in the CUG, Appendix A.
h. The Class B cashier or U.S. citizen supervisor must send a copy of all monthly verification documents to the servicing USDO with copy to the FMO and retain copies in the post’s files of each verification and supporting documents for 36 months. The servicing USDO or the Office of the Associate Comptroller (CGFS/S) has the authority to discontinue cashier operations at any overseas location where the cashier supervisor does not ensure verifications are submitted in accordance with this paragraph.
i. A verification of funds by a roving cashier monitor or FMO visiting a fiscal-serviced post, or a special verification by a Department of State Inspector General representative, will satisfy the unannounced verification requirements of this section. A visiting official’s verification may not serve in lieu of an unannounced verification by a cashier’s immediate supervisor for more than 2 months in succession, unless authorized by the servicing USDO.
4 FAM 397.1-3 Procedures for Verification of Operating Cash Advance
(CT:FIN-471; 05-19-2021)
a. The cashier-operating cash advance balance is verified by counting actual cash on hand and accounting for transactions that are either in transit, on-hand or not yet recorded, as well as other negotiable instruments and documents. To determine that the combined totals of cash and the other items in the cashier accountability balance and are within authorized advance levels, the verifier must review the following items:
(1) Principal Class B and Alternate Class B cashier cash on hand, including any on-hand replenishment checks and any items paid not entered in the accountability system at the time of verification;
(2) Paid receipts (subvouchers) on hand. This step requires the verifying officer to confirm that each paid receipt held by the cashier:
(a) Properly describes the goods and services purchased and is properly supported by appropriate receipts;
(b) Is supported by documentation showing that the goods and services have been received;
(c) Is approved for payment by an official who has approval authority;
(d) Is original, up-to-date, and free of alterations;
(e) Is sequentially numbered, starting with the numbers on the latest voucher submitted for replenishment; and
(f) In instances when an original receipt could not be provided, there is an American supervisor certification that is stamped and signed stating that the internal control is in place to prevent erroneous or a duplicate payments;
(3) Other transactions on-hand, i.e. not yet sent to the certifying officer for certification and processing, including collections, accommodation exchange, paid vouchers, replenishment requests, deposits, including bank credit advice slips, and checks from collection and accommodation exchange, credit card slips;
(4) Copies of all documents that are, at verification time, with the authorized certifying officer for certification and/or in–transit document, including: accommodation exchange transactions, collections, certified vouchers, batched subvouchers DS-7635, Cashier Reimbursement Voucher, deposits with any corresponding bank credit advice slips and checks from collection and accommodation exchange, credit card slips;
(5) Replenishment that has not been processed in the ACDC.013 report and that has not been credited to the cashier accountability. The verifying officer must verify the amounts on these documents, by verifying against the certified originals. The cashier supervisor must then follow up each of these in-transit documents identified during the unannounced verification to confirm that they were processed by the USDO and entered in the cashier’s accountability reports, ACDC.013;
(6) Cashier bank checking account balance, pass through account balance (see 4 FAM 395) with the corresponding bank statement, if applicable;
(7) Interim receipts for cash advances to occasional money holder(s). The verifier must confirm that each interim receipt held by the cashier is not more than 3 business days old:
(a) Properly describes the purpose of the interim advance;
(b) Is approved for payment with the correct fiscal data by an official who has approval authority; and
(c) Is dated subsequent to the date of the latest voucher submitted for replacement;
(8) Outstanding items on hand older than 7 calendar days, and in-transit items older than 14 calendar days must be explained to the satisfaction of the verifying officer.
b. The certifying officer should not certify any receipt that does not meet all of the above requirements or that cannot be resolved at the time of the verification until the problems are resolved. If the transactions have already been certified or cannot be resolved within 24 hours, list the transactions separately explaining the errors and submit them to the CGFS cashier monitor with the rest of the monthly unannounced documentation.
c. The verifier should also follow up with an e-mail or a cable to the CGFS cashier monitor or designated organization for domestic cashiers restating the problems found and request assistance in resolving the problems.
d. Additional detailed guidance for performing unannounced verifications of operating cash is found in the CUG, Chapter 13.
4 FAM 397.1-4 Verification of Funds—Official Collections
(CT:FIN-471; 05-19-2021)
a. Reconciliation of collections is an essential element of internal controls for cashiering. The FMO, management officer, or U.S. citizen cashier supervisor is responsible for ensuring that a reconciliation of all collection activity is performed monthly. The principal cashier and LE Staff CVO are not permitted to perform this reconciliation.
b. The monthly reconciliation consists of reviewing the following reports to ensure accurate and complete reporting of funds.
c. Disbursing Accountability Cashier Collection Report (ACDC.014) is provided by the USDO and reflects all collections processed during the month. The FMO, management officer, or U.S. citizen cashier supervisor must review all processed OF-158’s, voided/cancelled OF-158’s and replacement OF-158’s against the ACDC.014 (note: system generated reports i.e., COAST-reporting, etc. may be used to supplement the reconciliation but may not be used in lieu of the ACDC.014). All OF-158’s must have the required supporting documentation and voided/cancelled OF-158’s must reflect the justification.
d. Daily Accounting Summary Report (DAS) is provided by the consular section and reflects all Automated Cash Register System (ACRS) consular collections processed by the cashier during the month. The FMO, management officer, or U.S. citizen cashier supervisor must review the DAS report against the ACDC.014 (note: system generated reports i.e., COAST-reporting, etc. may be used to supplement the reconciliation but may not be used in lieu of the ACDC.014) to ensure all ACRS consular collections are reconciled.
e. Once the official collection reconciliation is complete, the FMO, management officer, or U.S. citizen cashier supervisor must sign and date the ACDC.014 report using an official digital signature or manual signature and DAS report. Both reports must be maintained by the verifying officer for a period of 18 months. A copy of the signed DAS report must be provided to the Accountable Consular Officer (see 7 FAH-1 H-744.3 and CUG Chapters 4, 13).
f. Offsite collection of machine-readable visa (MRV) fees is not accounted for through ACRS and is not included in the procedures in paragraph a of this section. In addition to the general verification of collections in paragraph a of this section, the ACO will periodically compare the cumulative number of MRV fees collected against the cumulative number of nonimmigrant visa applications as described in 7 FAH-1 H-745.2. To carry out this comparison, the class B cashier will send the ACO a copy of each Form OF-158 reflecting receipt of MRV funds from the collection agent.
4 FAM 397.2 Subcashier
4 FAM 397.2-1 Designation
(CT:FIN-471; 05-19-2021)
See 4 FAM 061.13 for subcashier designation guidance.
4 FAM 397.2-2 Reconciliation of Funds
(CT:FIN-471; 05-19-2021)
a. The subcashier should reconcile the operating cash advance daily when subcashier transactions have been performed, but not less than once a week. The reconciliation consists of an actual physical count of all cash on hand and reconciling up-to-date accountability against the on-hand cash, paid receipts, and interim advances.
b. The subcashier reconciles collections with the supporting documents immediately prior to turning collections over to the Class B cashier.
4 FAM 397.2-3 Verification of Funds―Subcashier
(CT:FIN-471; 05-19-2021)
a. An unannounced verification of the subcashier funds is required at least monthly when the advance amount is $1,000 or more (quarterly for amounts less than $1,000). However, unannounced verifications can be done at any time for any advance amount if deemed necessary by the U.S. citizen supervisor, CVO, or servicing USDO. For consular subcashiers that routinely hold collections overnight, the unannounced verification of the subcashier funds is required at least monthly, even though the authorized advance amount may be under $1,000. The ACO is the verifier for consular subcashiers.
b. The authorization to perform unannounced verifications at intervals that are less frequent than monthly for cash advance amounts under $1,000 is implemented at the discretion of the Office of Global Disbursing Operations (CGFS/DO) for domestic cashiers and the USDO for overseas cashiers. The authorization to perform quarterly verifications for cash advance amounts under $1,000 is optional and being permitted for cost and logistical reasons. CGFS/DO and USDOs have the authority to require monthly verifications if conditions warrant a more frequent schedule for a specific location, activity, or collection volume.
c. The FMO, management officer, or U.S. citizen supervisor must designate subcashier verifiers that are adequately trained in cashier operations to ensure verification standards are implemented. The qualifications for individuals performing subcashier verifications, including accountable consular officers, must be sufficient to ensure that adequate controls are in place. Whenever possible, individuals designated as CVOs should perform subcashier verification, since these individuals are familiar with and perform the more complex cashier verifications.
d. The Class B cashier may require a cash verification of a subcashier advance at any time.
e. The Class B cashier supervisor is responsible for assisting the Class B cashier with any difficulties in obtaining subcashier verifications, which includes terminating a subcashier advance if verifications cannot be conducted and submitted in a timely manner.
f. The subcashier’s U.S. citizen supervisor is responsible for ensuring that the verifications are done in a timely manner. The CUG, Chapter 13 provides detailed procedures for verification of subcashier funds.
4 FAM 397.3 Differences in Cashier Funds and Records
(CT:FIN-489; 02-27-2024)
a. Differences in cashier funds could be the basis for a fiscal irregularity. When a difference is identified, various actions should be implemented.
b. Action by the cashier: If an unreconcilable cash difference (overage or shortage) is discovered by the cashier during a normal daily reconciliation of funds and records, the cashier notifies their supervisor and acknowledges the difference in writing. (A subcashier discovering an unreconcilable difference notifies their supervisor and the Class B cashier and acknowledges the difference in writing.) This documentation and the amount of the difference are carried as part of the fund until resolved. (See also 4 FAH-2 H-832 and 4 FAH-2 H-833.)
c. Action by the verifying officer: If a cashier’s accountability does not balance when a verifying officer performs a monthly verification, the FMO, management officer, or U.S. citizen cashier supervisor are responsible for tracking and resolving the out-of-balance condition by the next monthly verification. If not resolved within 60 days, or sooner, if it is clear that there is a loss of funds, the FMO, management officer, or U.S. citizen cashier supervisor are responsible for declaring a fiscal irregularity.
d. Actions by the post financial management officer, domestic bureau budget officer, or cashier supervisor:
(1) The difference or problem in the cashier verification is reported to the post and regional security officer or designated organization for domestic cashiers. If the post FMO, domestic bureau budget officer, or cashier supervisor initially determines that the source of the loss was due to a cashier’s impropriety, the FMO, management officer, U.S. citizen supervisor and RSO must immediately conduct a cashier verification and transfer the accountability to a new or alternate cashier;
(2) When it has been determined that there is a cashier fiscal irregularity due to physical loss or deficiency of funds, the post FMO, domestic bureau budget officer, or cashier supervisor must report it in accordance with 4 FAM 372; and
(3) When it has been determined that there is a cashier overage of funds, it is not a fiscal irregularity; the post FMO, domestic bureau budget officer, or cashier supervisor must report the cashier overage and resolution actions taken in accordance with 4 FAM 376.
e. Once any difference is identified as a fiscal irregularity, it must be reflected in all reconciliation and accountability reports until resolved. Under conditions where resolution of an irregularity may be lengthy due to the investigation, the amount of the loss may be transferred by journal voucher from the current cashier accountability to the USDO “loss-relief not granted” account. This action should be conducted within 60 days after reporting the fiscal irregularity.
f. If the fiscal irregularity is a cash loss, the USDO may temporarily increase the cashier advance of the new or alternate cashier that received the fund, if cash is needed for daily cashier operations.
4 FAM 397.4 U.S. Disbursing Officer Action When a Fiscal Irregularity is Reported
(CT:FIN-489; 02-27-2024)
a. The USDO must perform the following when transferring fiscal irregularities from the cashier to the USDO or agency accounts:
(1) For Department of State cashiers: If the fiscal irregularity is not resolved within 60 days of the initial report, the USDO will transfer the fiscal irregularity from the cashier accountability to the USDO accountability and report the irregularity on line 5.1 of Form SF-1218, Statement of Accountability. This includes unresolved fiscal irregularities under $500. Post remains responsible for the irregularity until resolution and closure; and
(2) For cashiers other than Department of State: If the agency has not provided fiscal data to clear the cashier fiscal irregularity within 60 days, the USDO transfers the fiscal irregularity from the cashier to the other agency’s suspense account to be resolved by that agency. The USDO will not report other agency fiscal irregularities on their Form SF-1218, Statement of Accountability.
b. For all cashier fiscal irregularities, the USDO should perform the following:
(1) Contact the post FMO, domestic bureau budget officer, or cashier supervisor to determine if internal controls need to be strengthened to prevent a reoccurrence of the event;
(2) Provide the assistance needed by the post or bureau to identify and strengthen internal controls or improve cashiering practices; and
(3) Ensure that the proper CGFS reviews were conducted (e.g., cashier monitors notified post of unusual transactions on Form GFS 365, Cashier’s Reconciliation Statement, with verification documentation and that the cashier supervisor performed unannounced verifications).
c. Additional USDO responsibilities are identified in 4 FAH-2 H-837.
4 FAM 397.5 Decisions Required to Resolve Cashier Fiscal Irregularities
(CT:FIN-471; 05-19-2021)
a. For Department of State cashiers, the procedures for resolving cashier fiscal irregularities differ depending on the amount of the fiscal irregularity (see 4 FAM 372).
b. For cashiers of agencies other than Department of State, resolve fiscal irregularities in accordance with the agency’s own procedures. Agencies should notify the post and the USDO when the case is resolved and provide appropriate fiscal data to close the case. The cashier monitors will track the fiscal irregularity as open until the USDO is notified by the agency that the case is closed, or when the case is transferred to the agency suspense account.
4 FAM 397.6 Restoration of Shortages
4 FAM 397.6-1 Restitution from the Cashier
(CT:FIN-471; 05-19-2021)
a. Regardless of the amount, when the cashier has made restitution by restoring funds to the advance, the post FMO, domestic bureau budget officer, or cashier supervisor completes a verification of the fund to confirm it is balanced. The cashier and the verifying officer sign the record of the verification. The verifying officer acknowledges by memorandum to the cashier that restitution was made. All documents related to the shortage and restitution should be sent to the Office of Financial Policy (CGFS/FPRA/FP) and the servicing USDO. Copies of all documents pertaining to the shortage and restitution are retained in the cashier and post or domestic bureau files for 10 years (see 4 FAM 393.2-4).
b. If the cashier is not able to make restitution, the debt collection process referred to in 4 FAM 493, Collection Actions should be followed. If efforts to collect the debt fail, the post or domestic bureau should follow the procedures in 4 FAM 494 on terminating the collection.
c. After either the Department of State or Department of Justice authorizes the termination of collection activities, the post FMO or domestic bureau budget officer prepares a voucher that:
(1) References the authorization to terminate the collection effort;
(2) Authorizes a check or electronic funds transfer (EFT) payable to the cashier for the amount of the shortage to be replaced; and
(3) Charges the post or domestic bureau allotment usually the same fiscal year where the loss occurred (if the post or bureau has questions about this process, it should request clarification and assistance from the servicing USDO).
4 FAM 397.6-2 Restoration From Granting of Relief
(CT:FIN-471; 05-19-2021)
a. When relief is properly granted by the chief of mission (COM), the Committee of Inquiry into Fiscal Irregularities, or the U.S. Government Accountability Office, the decision is communicated in writing to the cashier. The shortage is charged to the post or domestic allotment. The post FMO or domestic bureau budget officer prepares a voucher that:
(1) References the decision to grant relief;
(2) Authorizes a check or electronic funds transfer (EFT) payable to the cashier for the amount of the shortage to be replaced; and
(3) Charges the post or domestic allotment (please note that this is usually the fiscal year in which the loss occurred, but if the circumstances appear unclear, the post FMO or domestic bureau budget officer should request clarification and assistance from the servicing USDO).
b. The cashier acknowledges relief in writing, stating that a check or EFT has been received and that the currency has been added to the cashier accountability. The post FMO, domestic bureau budget officer, or cashier supervisor performs a normal verification to confirm that the fund is again in balance. For the overseas cashier, the cashier and verifying officer sign Form GFS 365, Cashier’s Reconciliation Statement as verification. All documents related to the shortage and granting of relief should be sent to CGFS/FPRA/FP and the servicing USDO. Copies of all documents pertaining to the shortage and granting of relief are retained in the cashier and post or domestic bureau files (see 4 FAM 393.2-4).
4 FAM 398 CHANGE IN CASHIERS
4 FAM 398.1 Class B Cashier
4 FAM 398.1-1 Temporary Absence
(CT:FIN-471; 05-19-2021)
a. The principal Class B cashier issues an advance to the alternate cashier, which is properly safeguarded by the latter at all times for use during unanticipated brief absences of the Class B cashier. Generally, only one alternate cashier is designated for a principal cashier, however, a second alternate cashier may be designated if the main alternate cashier performs daily cashier activities.
b. For a planned temporary absence exceeding 4 workdays full transfer of accountability from the Class B cashier to Alternate cashier is obligatory. The Class B cashier transfers all moneys on hand to the alternate, including uncashed advance and replenishment checks that had previously been issued in the Class B cashier’s name. Any checks are endorsed by the Class B cashier as payable to the alternate. The Class B cashier must prepare a replenishment voucher for all of the unvouchered receipts on hand before transferring the fund to the alternate cashier.
c. Detailed procedures for the responsible individuals are found in the cashier section of the Cashier User Guide (CUG), Chapter 3.
4 FAM 398.1-2 Indefinite or Permanent Change
(CT:FIN-471; 05-19-2021)
a. Action by fiscal-servicing post or domestic bureau: The post financial management officer (FMO), domestic bureau budget officer, or cashier supervisor notifies the servicing U.S. disbursing officer (USDO) when any indefinite or permanent change is required in the Class B or alternate cashier. The FMO, domestic bureau budget officer, or cashier supervisor submits a cable to the FMO or bureau files, which includes the following information:
(1) Name of the outgoing cashier;
(2) Location of post;
(3) Effective date;
(4) Any outstanding discrepancies; and
(5) If determined, the name of a replacement Class B cashier or alternate cashier.
b. The processing for the designation of a replacement cashier is the same as for an initial designation described in 4 FAM 061.1-10.
c. Action by post or domestic location:
(1) When the duties of a Class B cashier cease, the post FMO, domestic bureau budget officer, or cashier supervisor designates in writing two objective employees to verify the cashier’s funds. Overseas, one person must be a U.S. citizen direct-hire officer, preferably from the financial management section, or otherwise trained in cashier operations. All of the verification requirements of 4 FAM 397 must be performed and documented; and
(2) If a cashier checking account is maintained at the post, the FMO informs the bank in writing of the change in personnel authorized to draw on the account.
d. Action by outgoing cashier: Detailed procedures are enumerated in the Cashier User Guide (CUG), Chapter 3, for overseas locations. Domestically, consult CGFS/DO for direction and procedures.
e. Action by verifying officers: The verifying officers verify all funds. If differences are discovered, make a report to the post FMO, domestic bureau budget officer or cashier supervisor and others in accordance with 4 FAM 397.3.
f. Action by incoming Class B cashier: Detailed procedures are enumerated in CUG Chapter 3 for overseas operations. Domestically, consult CGFS/DO for direction and procedures.
4 FAM 398.1-3 New Class B Cashier Not Yet Designated
(CT:FIN-471; 05-19-2021)
When a new Class B cashier has not yet been designated, and the current cashier must leave the post, the procedure in 4 FAM 398.1-1 is followed to transfer the funds and records to the alternate cashier.
4 FAM 398.1-4 Death, Disablement, or Disappearance of a Class B Cashier
(CT:FIN-471; 05-19-2021)
a. When a cashier’s account requires closing by another person, due to death, disablement, or disappearance, a verifying officer and at least one witness must perform a complete verification of the fund. One individual must be an U.S. citizen direct-hire employee. This procedure results in the final report for the cashier or the final report of transfer to another cashier.
b. When the verification is completed, the fund must be either turned over to a designated alternate or closed with all funds and related documents and returned to the USDO if overseas or to the bureau if domestic. The final reports of the transfer are prepared by the designated alternate, post FMO, domestic bureau budget officer or cashier supervisor, as available. The reports include an explanation for closing the accounts. The officer who prepares the reports signs them and submits them in the name of the cashier, with both names and titles shown on the reports. Uncashed replenishment checks will be processed for cancellation in accordance with the CUG, Chapter 10. The cashier’s account must be verified in accordance with 4 FAM 397. In the case of the disappearance of a cashier, the cashier’s supervisor must comply with 4 FAM 397.3, paragraph b.
c. When the cashier disappears, takes a non-cashier job, or leaves U.S. Government service, and there is an unresolved loss or shortage, the post FMO, domestic bureau budget officer, or cashier supervisor prepares a memorandum for the post or domestic bureau file that documents the following:
(1) Name of the employee;
(2) Date of disappearance or termination from the position in which funds shortage occurred;
(3) Amount of loss and efforts made to obtain restitution; and
(4) Present status of the loss after actions are taken in accordance with 4 FAM 397.3, paragraph d.
d. Differences in cashier accountability due to physical loss or deficiency of funds are fiscal irregularities and must be reported pursuant to 4 FAM 397.3, paragraph d and 4 FAM 372. Documentation for money that may be owed the U.S. Government by a departing cashier should be sent to the post accounting section to set up a formal claim. This claim should be reviewed during the final salary clearance process for the departing cashier.
4 FAM 398.2 Subcashier
4 FAM 398.2-1 Temporary Absence
(CT:FIN-489; 02-27-2024)
The cash advance of a subcashier may, in turn, be advanced to an FMO designated alternate subcashier in the situation of a planned absence on the part of the subcashier. Petty cash payments or change-making may be made from the advance during the subcashier’s absence, but only as authorized in the alternate’s official designation. The alternate subcashier must ensure that the funds for which they are responsible are properly safeguarded during their absence.
4 FAM 398.2-2 Indefinite or Permanent Change
(CT:FIN-471; 05-19-2021)
When a subcashier ceases to function, the following actions are performed:
(1) Action by Post FMO, domestic bureau budget officer, or cashier supervisor: Notifies the Class B cashier who made the cash advance of the date the subcashier will cease to function, and, if the subcashier operation is to continue at the location, the name of the successor;
(2) Action by Outgoing subcashier:
(a) Reconciles the operating cash advance account;
(b) Determines that all collections have been delivered to the Class B cashier;
(c) Submits the final Operating Cash Advance and Replenishment Voucher, or list of receipts marked “FINAL”, to the Class B cashier;
(d) Delivers the balance of cash on hand to the Class B cashier; and
(e) Retrieves the original operating cash advance receipt from the Class B cashier;
(3) Action by Class B cashier: In the presence of the subcashier, verifies all accounts and funds submitted by the outgoing subcashier. If differences are discovered, they are acknowledged by the outgoing subcashier in writing and are reported to the post FMO, domestic bureau budget officer or cashier supervisor for action (see 4 FAM 397.3). Differences in cashier accountability due to physical loss or deficiency of funds are fiscal irregularities and must be reported pursuant to 4 FAM 397.3, paragraph d and 4 FAM 372. Documentation for money that may be owed to the U.S. Government by a departing subcashier should be sent to the post accounting section to set up a formal claim. This claim should be reviewed during the final salary clearance process for the departing subcashier. An advance of funds is made to a new subcashier, if named (see 4 FAM 393.4-5, paragraph d).
4 FAM 398.2-3 Death, Disablement, or Disappearance of a Subcashier
(CT:FIN-471; 05-19-2021)
a. When a subcashier’s account requires closing by another person due to death, disablement, or disappearance, a verifying officer and at least one witness must do a complete audit of the fund in accordance with 4 FAM 397.2 and either turn the fund over to a designated alternate or return the fund to the servicing Class B cashier. One individual must be an U.S. citizen direct-hire employee. This procedure for a subcashier mirrors the procedure followed for a cashier under similar circumstances (see 4 FAM 398.1-4).
b. The final reports are prepared by the designated alternate, post FMO, domestic bureau budget officer or cashier supervisor, as available. The reports include an explanation for closing the accounts and are signed by the officer who prepares and submits them in the name of the subcashier, with both names and titles shown on the reports.
c. When a subcashier disappears, takes a noncashier job, or leaves U.S. Government service, and there is an unresolved loss or shortage, the post FMO, domestic bureau budget officer or cashier supervisor takes the same actions outlined for a Class B cashier in 4 FAM 398.1-4, paragraphs c and d.
4 FAM 399 SPECIAL CASHIER PROVISIONS
4 FAM 399.1 Subcashiers of Other Agencies
4 FAM 399.1-1 Designation
(CT:FIN-471; 05-19-2021)
See 4 FAM 061.13-2 for subcashier of other agencies designation guidance.
4 FAM 399.1-2 Advances of Funds
(CT:FIN-471; 05-19-2021)
The representative of the requesting agency determines the amount of operating cash advance, and changes thereto, to be made to the agency subcashier. The original cash advance to the subcashier, and replenishment of the advance, is made in the same manner as for the Department of State cashier (4 FAM 394.3, paragraph b).
4 FAM 399.1-3 Limitations
(CT:FIN-471; 05-19-2021)
The subcashier of an agency other than the Department of State, as defined in this subsection, may not perform accommodation exchange or receive official collections unless so indicated in the subcashier’s official letter of designation.
4 FAM 399.1-4 Employing Agency Accounts
(CT:FIN-471; 05-19-2021)
Accounts are rendered to the employing agency in the same manner as prescribed for Department of State cashiers. Normally, the Statement of Operating Cash Advance and Replenishment Voucher is used for this purpose. The employing agency is notified by either the financial management officer (FMO) or cashier supervisor when the Department of State Class B cashier is replaced by another Department of State employee who is to issue the advance to the subcashier.
4 FAM 399.1-5 Reconciliation, Verification, and Audit of Funds
(CT:FIN-471; 05-19-2021)
The requirements in 4 FAM 390 are applicable to all subcashiers of Department of State cashiers, regardless of agency affiliation, unless indicated otherwise in this subsection. Any differences concerning the funds advanced to a subcashier are the responsibility of the employing agency of the subcashier. Communications regarding such differences are addressed by the FMO of the fiscal-servicing post to the employing agency. Department of State officials, including representatives of the Office of Inspector General, have authority to verify and audit funds held by subcashiers of any agency. This authority should be understood by the requesting agency official and the subcashier as a condition of extending an advance and should be confirmed with both individuals prior to performing any subcashier duties.
4 FAM 399.1-6 Cashier Files
(CT:FIN-471; 05-19-2021)
The servicing U.S. disbursing officer (USDO) maintains files on cashiers of other agencies in the same manner as prescribed for Department of State cashiers in 4 FAM 393.2-4.
4 FAM 399.2 Mutilated, Worn, and Old Currency
4 FAM 399.2-1 U.S. Currency
(CT:FIN-489; 02-27-2024)
Cashiers should make it a point not to accept damaged U.S. currency for accommodation exchange, official collections, etc. If a cashier obtains mutilated U.S. currency, they should send the currency to the Department of the Treasury, Bureau of Engraving and Printing (BEP), and request a replacement. Detailed instructions and procedures for handling mutilated currency are identified in the Cashier User Guide (CUG), Chapter 15, and at the BEP website. The post cashier should retain all correspondence, photocopies, and mail registry receipts related to shipping mutilated currency. If replacement currency is not issued, a fiscal irregularity must be reported in accordance with 4 FAM 372. The CUG, Chapter 15 provides detailed procedures for handling mutilated U.S currency.
4 FAM 399.2-2 Foreign Currency
(CT:FIN-471; 05-19-2021)
a. Cashiers are required to take every possible precaution to prevent accepting mutilated foreign currency as a collection, payment to post, or exchange transaction. Any foreign currency that is badly soiled, marked up, or torn should be refused.
b. In the event that a cashier is holding mutilated foreign currency, every effort must be made to replace it through local banks or the host country central bank. If replacement currency is not issued, a fiscal irregularity must be reported in accordance with 4 FAM 372. The CUG, Chapter 15 provides detailed procedures for handling mutilated foreign currency.
4 FAM 399.2-3 Handling Funds During an Evacuation
(CT:FIN-471; 05-19-2021)
All post FMOs are required to maintain a Cashier Operations Emergency Evacuation Plan consistent with 4 FAM 832.2. In the event of an emergency or evacuation, the procedures in the plan for removing cashier funds must be implemented unless the evacuation order specifically identifies alternative procedures to be followed. The CUG, Chapter 4 provides detailed cashiering emergency action plan (EAP) procedures.
4 FAM 399.3 Counterfeit Currency
4 FAM 399.3-1 Fiscal Irregularity From Acceptance
(CT:FIN-471; 05-19-2021)
If a cashier or other accountable employee discovers that a counterfeit instrument has been accepted, a fiscal irregularity must be reported under the provisions of 4 FAM 370. A shortage must be reported under 4 FAM 397.3. GAO decisions have established that “A deficiency in an accountable officer’s account caused by the acceptance of a counterfeit note constitutes a physical loss for purposes of 31 U.S.C. 3527(a). Whether accepting counterfeit money is negligence depends on the facts of the particular case, primarily whether the counterfeit was readily detectable.” It is important for cashiers and other accountable officers to “exercise the requisite degree of care” in steps taken to detect counterfeit currency.
4 FAM 399.3-2 Detection Before Acceptance
(CT:FIN-471; 05-19-2021)
a. All cashiers who accept either U.S. or local currency have the responsibility of carefully examining the legitimacy of the currency. Post management also have the responsibility of training the cashiers to recognize counterfeit currency. Cashiers must also utilize counterfeit detection equipment or tools. For U.S. currency, cashiers should be familiar with the booklet Know Your Money, which is available from the Government Printing Office (GPO). The U.S. Secret Service also provides this information at its website. For local currency, contact the host-government’s central bank to determine if a similar publication exists:
(1) Visual inspection: Although many posts are extremely busy and take in great quantities of currency, take time to look at bills to see if the features are correct for that denomination (see Know Your Money). Relief cannot be granted on the basis of “press of business;”
(2) Machine verification: There is equipment available that may increase the possibility of detection. Posts should contact the Office of Global Disbursing Operations (CGFS/DO) for details if counterfeiting is suspected or additional information is needed;
(3) Training: The U.S. Secret Service is available to give training in the detection of counterfeit U.S. bills. Posts interested in organizing training during conferences or workshops should contact the U.S. Secret Service office responsible for the post area. The Office of Oversight and Management Analysis Directorate (CGFS/OMA) can supply the location of the appropriate U.S. Secret Service office; and
(4) Log of higher-denomination bills: Posts may require cashiers to maintain a log of serial numbers, names, and ID of individuals tendering bills of more than $20 to assist in tracing the source if a counterfeit bill is received.
4 FAM 399.3-3 Detecting Suspected Counterfeit Dollar Currency After Acceptance by Post
(CT:FIN-471; 05-19-2021)
a. If a cashier, FMO, MO or U.S. citizen cashier supervisor suspect the presence of counterfeit currency, the principal cashier must use the following procedure to report the counterfeit U.S. currency.
b. Notify the U.S. citizen supervisor and the USDO in writing.
c. Immediately remove the counterfeit currency from their drawer and make a photocopy (front and back) for their records.
d. Complete the Counterfeit Note Report and submit to the designated U.S. Secret Service office via the RSO along with the counterfeit currency.
e. A copy of this receipt remains a part of the cashier’s accountability records until the money is returned confirmed as negotiable. If the money is not returned due to being confirmed counterfeit, the post must follow the procedure for the restoration or relief of a loss (see 4 FAM 372).
f. If the report is sent through the open mails, the envelope in which the report is sent should mention neither the Department of State nor the subject of the memorandum. If sent through the diplomatic pouch or the APO, it should be sent registered. Post should retain photocopies of both sides of the bill(s) for reference. The U.S. Secret Service will verify the currency’s authenticity, and if it is determined to be counterfeit, will forward the post a receipt for the currency. The accountable officer must keep a copy of this receipt. If the currency is authentic, it will be returned to the post. If it is determined not to be authentic, the post must initiate the process in 4 FAM 372.
g. The CUG, Chapter 15 provides detailed procedures for handling counterfeit currency. Supplemental information, as well as the U.S. Secret Service forms for reporting counterfeit currency, is also available at the website.
4 FAM 399.3-4 Detecting Counterfeit Dollar or Local Currency by USDO or Other Local Bank
(CT:FIN-478; 06-29-2021)
If the cashier receives notification from the USDO or other local bank that counterfeit U.S. dollar or local currency was deposited, the principal cashier must follow procedures outlined in CUG, Chapter 15 for reporting counterfeit currency. Post must follow the host country’s regulations regarding the handling of counterfeit currency. In most cases the bank will not return the counterfeit currency to the cashier.
4 FAM 399.3-5 Detecting Suspected Counterfeit Local Currency
(CT:FIN-471; 05-19-2021)
If the post suspects that local currency is counterfeit, host-country regulations must be followed (see the CUG, Chapter 15).
4 FAM 399.3-6 Request for Relief
(CT:FIN-471; 05-19-2021)
a. Upon confirmation from the U.S. Secret Service, USDO bank, or host country government that currency is counterfeit, a fiscal irregularity loss of funds must be reported in accordance with 4 FAM 372. Post fiscal irregularity report must include a receipt for the counterfeit currency note. If the counterfeit was discovered upon being deposited in a bank, and the bank has held the counterfeit because of the local laws, the official receipt from the bank, including a statement that the currency is being held because of local laws, must be submitted. Post should include a photocopy of the counterfeit bill(s) in its report to allow the official(s) determining whether to grant relief to verify the quality of the counterfeit bill(s). If after review of the fiscal irregularity relief is denied, the accountable officer is held responsible. A request for relief of cashier liability for the loss of funds will be considered based on the investigation results under the 31 U.S.C. 3527 relief standard:
(1) The loss occurred while the cashier was carrying out official duties; and
(2) The loss was not the result of fault or negligence on the part of the cashier.
b. Negligence with regard to counterfeit currency turns primarily on the question of whether or not the counterfeit was readily detectable. Previous GAO decisions have held that “if the quality of the counterfeit is such that a prudent person in the same situation would question the authenticity of the bill, relief should not be granted. Also, failure to check a bill against a posted list of serial numbers (if available) will generally be viewed as negligence. Finally, failure to follow regulations is negligence.”
4 FAM 399.4 Cashier Services
4 FAM 399.4-1 Banking Services
(CT:FIN-471; 05-19-2021)
Providing banking services is not a post cashier responsibility. Because of limited personnel resources available to function as cashiers, and the many operational and reconciliation duties they are required to perform, cashiers generally have limited time and funding available to provide conveniences over and above required services. Personal banking services are not permitted, and any exceptions must be approved by CGFS/FPRA/FP.
4 FAM 399.4-2 Post Policy
(CT:FIN-471; 05-19-2021)
a. In light of Department of the Treasury restrictions on cash payments, the security required for cashier operations, and increasing availability of electronic banking services, post FMOs or their equivalent in posts without an FMO must establish a post policy for cashier operations that addresses cashier responsibilities, availability, accountability, and local conditions. The cashier hours of operations, to include separate hours for Consular services, should be clearly posted on the cashier window, along with a Privacy Act notice covering official transactions with authorized post employees, dependents, TDY visitors, and any other individual doing official business with the cashier. The policy must be reviewed annually; e-signature signed and dated by the U.S. citizen supervisor. For further detailed information, see CUG, Chapter 4.
b. This post policy should be disseminated to all post personnel and/or posted at the cashier window. The post policy should cover the following:
(1) Post-determined restrictions that may be authorized in the Department of State’s Foreign Affairs Manual or Handbook (FAM/FAH) but for post policy and management reasons cannot be made available under local conditions. This includes post policies regarding cashier services for both permanently assigned and TDY personnel;
(2) The hardship conditions under which cashiers and subcashiers are permitted to make cash payments to direct-hire Americans or contractors for amounts higher than $25 (see 4 FAM 394.1-2, paragraph d);
(3) Names or titles of individuals with the authority to approve receipts submitted to cashiers under 4 FAM 394.2-9 and a requirement for signatures on the receipts before presentation to cashiers;
(4) Documentation and time periods for addressing cashier payment errors or recording mistakes. For example, the policy statement should advise individuals doing business with the cashier to count their money before leaving the window. Similarly, the policy should remind employees that Form OF-158, General Receipt, is an official receipt; the document must be reviewed at the point it is issued; and any errors must be immediately corrected;
(5) Restrictions that state employee payments and accommodation exchange are not authorized for second- and third-party checks, including manufacturers’ rebate and refund checks. The post policy should require all post personnel to have these types of checks deposited directly into their U.S. bank accounts. Cashiers may only accept third-party checks for approved purposes and only if directly related to official business as determined by the post. For example, from health insurance companies when the checks are for health insurance reimbursements to the employee and the employee is reimbursing the post for medical services covered by the insurance;
(6) Accommodation exchange will not be conducted for small amounts (e.g., all transactions must exceed $50). At posts where it is difficult to procure U.S. currency, the post must state in the policy that it reserves the right to impose limits on the amount of cash in U.S. dollars for reverse accommodation exchange, travel advances, and other payments;
(7) Reverse accommodation exchange for the proceeds of sales of employees’ personal property before departure from post will be by EFT to the maximum extent possible. The post policy should state the criteria for making a portion of the proceeds available in cash as authorized in 4 FAM 360, as well as a reverse accommodation policy for TDY visitors;
(8) Accommodation Exchange is a privilege and the servicing USDO has the authority to instruct cashiers to suspend accommodation exchange privileges to individuals because of returned checks or ACH debits. Post policy should state that employees must take the responsibility for returned checks and ACH debits and that post reserves the right to suspend accommodation exchange privileges when personal checks or ACH debits cashed by the cashier are rejected by the bank and returned to the cashier for collection. The policy should note that rejected checks make an individual a debtor of the U.S. Government, and the cashier and servicing USDO are accountable for the funds until collected. Employees should also be aware that the procedure can be time-consuming, expensive to the post, and that the servicing USDO has the ultimate authority to decide if the accommodation exchange privileges will be reinstated and the circumstances under which this decision will be made; and
(9) If pay.gov is used, the U.S. citizen supervisor must establish guidelines for the procedure. The policy must reflect at minimum documentation requirements for collections and AE transactions and turnaround time to provide documentation to the cashier.
4 FAM 399.5 Travelers Checks
(CT:FIN-471; 05-19-2021)
a. All Department of State cashiers are prohibited from selling travelers checks.
b. Class B cashiers are authorized to accept first-party travelers checks only from employees and other persons authorized to make accommodation and reverse accommodation exchange in accordance with 4 FAM 360 and as collection for money owed the U.S. Government in accordance with 4 FAM 396.
4 FAM 399.6 Cashiering Questions or Issues
(CT:FIN-471; 05-19-2021)
Please address questions or issues with the overseas operations of the cashier function to the servicing USDO and CGFS/DO. Address questions or issues regarding domestic operations to CGFS/DO, with a courtesy copy to CGFS/OMA. Address questions regarding cashier operations policy to the Office of Financial Policy (CGFS/FPRA/FP).