4 FAM 400
VOUCHERS AND CLAIMS
4 FAM 410
GENERAL POLICIES
(CT:FIN-491; 03-04-2024)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 411 SCOPE, PURPOSE, AND LAYOUT
(CT:FIN-462; 04-19-2021)
Chapter 400 contains policies and regulatory information applicable to voucher and claim processing and certification. It is organized as follows:
(1) 4 FAM 410—General Policies: Provides information common to all topics in this chapter and the forms used;
(2) 4 FAM 420—Voucher Examination: Presents the work flow in the vouchering process from the receipt of invoices through the approval and prepayment examination stages;
(3) 4 FAM 430—Voucher Certification and Payment: Describes the certification process and states the Department’s prescribed procedures on certification; elaborates on liabilities of certifying officers; and describes some aspects of the disbursement process;
(4) 4 FAM 440—Vouchering of Special Items: Contains information on special or nontypical items of expenditure and describes exceptions to the rule as stated in 4 FAM 410, 4 FAM 420, and 4 FAM 430, and must be used in addition to these subchapters;
(5) 4 FAM 450—Special Voucher Processes: Contains prescribed procedures for processing and paying other vouchers such as imprest funds, other agency expenses; and purchase cards;
(6) 4 FAM 460—Travel and Travel Advance Management: Contains special procedures for processing and paying travel vouchers; issuing advances to travelers on official business; the recovery of such advances by submitting a travel voucher and/or by direct refund; the U.S. Government charge card program; and congressional travel;
(7) 4 FAM 470—Transportation of Passengers and Things: States the procedures on billings for the transportation of passengers and property by a carrier, carrier’s agent, travel agency, or transfer company, as well as the treatment and redemption of unused tickets;
(8) 4 FAM 480—Claims Against the United States: Presents the prescribed procedures for handling claims against the U.S. Government that are not supported by conclusive contractual obligations and documents. This subchapter provides an overview of the general claim settlement functions and a brief discussion of several types of claims not covered elsewhere; and
(9) 4 FAM 490—Debt Collection: Contains prescribed procedures for Department of State collection of funds owed to the United States Government and supplements the regulations contained in 22 CFR 34.
4 FAM 412 AUTHORITY
(CT:FIN-462; 04-19-2021)
Departmental policies derive their authority from statutes and regulations. Specific authorities for travel vouchers and advances, transportation vouchers, and claims are provided in a separate section within the corresponding subchapters of this volume.
4 FAM 412.1 Statutes and Regulations
(CT:FIN-462; 04-19-2021)
a. The Accounting and Auditing Act of 1950, as amended (31 U.S.C. 3511 - 3516), authorizes the U.S. Comptroller General to prescribe, in consultation with the Director of the Office of Management and Budget and the Secretary of the Treasury, the principles, standards, and related requirements for the accounting to be observed by most executive agencies. It requires the head of each U.S. agency to establish and maintain systems of accounting and internal controls.
b. The Prompt Payment Act of 1982, as amended (31 U.S.C. 3901 - 3907), requires Federal agencies to make payments in a timely manner; to pay interest penalties when payments are late; and to take discounts only when payments are made within the discount period.
c. The Anti-Deficiency Act, as amended (31 U.S.C. 1341), prohibits obligations or disbursements that exceed amounts appropriated or that involve an obligation for the payment of money before an appropriation is available, unless authorized by law. In addition, 31 U.S.C. 1517 and 4 FAM 080 prohibit obligations or disbursements that exceed amounts apportioned or amounts allotted for administrative control.
d. The Federal Managers’ Financial Integrity Act of 1982 (31 U.S.C. 3512) requires Federal agencies to establish and maintain systems of internal accounting and administrative controls. The head of each agency is to ensure that management controls are in accordance with the Comptroller General’s standards; issue a statement attesting to the adequacy of such controls; or report any weaknesses and submit plans for their correction.
e. The Federal Financial Management Improvement Act of 1996 (Public Law 104-208, 31 U.S.C. 3512 Note) requires that agency financial management systems comply substantially with Federal financial management system requirements, applicable Federal accounting standards, and the Standard General Ledger at the transaction level.
f. The United States Code (U.S.C.) Title 31 covers Money and Finance.
g. 22 Code of Federal Regulations (CFR), Chapter 1, covers Foreign Relations.
h. 41 Code of Federal Regulations covers Public Contracts and Property Management.
i. The Foreign Service Act of 1980, Chapter 9, provides guidance for Travel, Leave, and Other Benefits.
j. The Overseas Allowances and Differential Act is covered in 5 U.S.C. Chapters 55 and 59.
k. GAO Policies and Procedures Manual for Guidance of Federal Agencies (GAO), Title 7, provides Fiscal Procedures (7 GAO).
l. OMB Circular A-123, as amended, Management's Responsibility for Enterprise Risk Management and Internal Control, promulgates a U.S. Government-wide internal control policy and a system of agency responsibilities and requirements.
m. 5 CFR 1315 (superseding OMB Circular A-125) implements the Prompt Payment Act (see 4 FAM 412.1, paragraph b).
n. OMB Circular A-127, as amended, and related bulletins prescribe policies and procedures to be followed by U.S. agencies in developing, operating, evaluating, and reporting on financial management systems.
o. Treasury Financial Manual (TFM), Volume I covers:
(1) Part 1—Introduction (I TFM 1);
(2) Part 2—Central Accounting and Reporting (I TFM 2); and
(3) Part 4—Disbursing (I TFM 4).
p. OMB Policy Directive M-11-32, Accelerating Payments to Small Businesses for Goods and Services, dated September 14, 2011.
q. Debt Collection Improvement Act (DCIA) issued in 1996.
r. Payment Integrity Information Act of 2019.
s. OMB Policy Directive M-19-21, Transition to Electronic Records, dated June 28, 2019.
t. OMB Policy Directive M-15-19, Improving Government Efficiency and Saving Taxpayer Dollars Through Electronic Invoicing, dated July 17, 2015.
4 FAM 412.2 Other Sources
(CT:FIN-462; 04-19-2021)
Other relevant sources of guidance include the following:
(1) Foreign Affairs Manual (FAM)—Certain guidance related to 4 FAM 400 is covered in greater detail elsewhere in 4 FAM and in other volumes of the FAM. A partial list of these references includes:
(a) 3 FAM 000—Personnel;
(b) 4 FAM 000—Financial Management Policy, Organization and Accounting Principles and Standards;
(c) 4 FAM 300—Cash Management and Accounting; and
(d) 14 FAM 500—Travel and Transportation;
(2) U.S. Department of State Standardized Regulations (Government Civilians, Foreign Areas), which is maintained by the Department’s Allowances Staff (A/OPR/ALS); and
(3) Principles of Federal Appropriations Law, GAO Office of General Counsel, which includes such relevant chapters as:
(a) Chapter 4—Availability of Appropriations as to Purpose;
(b) Chapter 5—Availability of Appropriations as to Time;
(c) Chapter 6—Availability of Appropriations as to Amount;
(d) Chapter 9—Liability and Relief of Accountable Officers; and
(e) Chapter 12—Claims Against and By the United States.
4 FAM 413 Definitions in 4 FAM 400
(CT:FIN-491; 03-04-2024)
Accountable officer: Any U.S. Government officer or employee who by reason of their employment is responsible for or has custody of U.S. Government funds. An accountable officer is personally liable to the U.S. Government for any loss of the funds in their charge, regardless of fault, unless relief is granted or the loss is recovered. Accountable officers include such officials as authorized disbursing officers, certifying officers, collecting officers, cashiers, or consular officers and other employees who have custody of U.S. Government funds.
Approval (as distinguished from certification): The attestation by an authorized individual that the provider of goods or services for which the voucher is being prepared is entitled to payment, subject to the goods received or services performed being accepted as satisfactory. Receipt and payment approval may be reflected in a combined attestation.
Approving official: An individual with direct knowledge or a supervisory responsibility that has been authorized and officially designated by an authorizing official to approve an invoice or voucher for payment.
Authentication codes: A unique code and one that is under the holder’s sole control. The code is verifiable and allows a system to recognize another system or holder, authenticate the holder, and restrict unauthorized access.
Authorized access: An internal control processing policy established by management that requires separation of duties and controlled access to processing activities, documents, and databases. Each individual involved in electronic processing must be authorized to perform their specific duties. This includes scanning, reviewing databases and processing documents or transactions that may contain sensitive or private information.
Authorizing official: An individual who has the authority to authorize an approving official who can verify through direct knowledge or supervisory responsibility that goods or services have been received and accepted.
Cashier: An accountable officer who has been formally designated as a cashier by an authorized official and who is thereby authorized to perform limited disbursing and other cash functions. (See 4 FAM 390 for more details on cashiers and the cashiering function.)
Certification: The final authorization for payment by an authorized certifying officer. Disbursing officials may disburse funds only as provided by a voucher that has been properly certified. In the case of voucher schedules, the certifying officer’s signature applies to all the individual vouchers listed on the schedule.
Certifying officer: An accountable officer who has been charged with the responsibility for certifying vouchers for payment. A certifying officer is responsible for verifying the accuracy and propriety of all documents upon which payment is to be based and certifying that the payment is legal, correct, and proper:
(1) The certifying officer is responsible for the information stated in the certificate, voucher, and supporting records, the computation of the voucher, the legality of a proposed payment under the appropriation or fund involved, and the accuracy of transportation rates and other information provided on a U.S. Government bill of lading or transportation (absent a determination by the Administrator of General Services). The certifying officer is personally liable to repay the amount of any illegal or improper payment resulting from their certification. The conclusions and actions of a certifying officer are governed by pertinent laws and regulations and the exercise of prudent judgment; and
(2) A voucher payable to a certifying officer, other than a payroll voucher, is to be signed by another officer authorized to certify the voucher (31 U.S.C. 3528; 7 GAO, Chapter 7).
Claim: A demand for monies due or alleged to be due, based on a valid claim provided to the Department.
Deductions: Amounts subtracted from the gross voucher amount to arrive at the payment amount. Deductions are for:
(1) Cash discounts offered by vendors;
(2) Credit memos (debts) that need to be offset; or
(3) Adjustments specified in the contract.
Designated billing office (DBO): The office designated in the purchase order, agreement, or contract to receive and review invoices. The Financial Management Office is the DBO.
Digital image: Any image from a scanner, camera, computer, or other electronic device that converts an original image from paper to digitized numeric computer format. The conversion allows for the processing, storage, printing, and displaying of the original document on an electronic device or computer.
Digital record: Any data or information created and/or maintained by means of digital computer technology. It includes records that are born digital or have undergone conversion from a non-digital format. Digital records are a subset of electronic records.
Digital signature: A mathematical scheme for demonstrating the authenticity of a digital message, document, or financial transaction. A valid digital signature gives a recipient reason to believe that the message, document, or transaction was created by a known sender, such that the sender cannot deny having sent the message (authentication and non-repudiation) and that the message was not altered in transit. A digital signature should not be confused with an electronic signature. While an electronic signature can be as simple as a name entered in an electronic document, digital signatures are increasingly used in e-commerce and in regulatory filings to implement electronic signatures in a cryptographically protected way. Standardization agencies provide standards for their implementation (see definition for electronic signature).
Disallowances: Amounts subtracted from voucher amounts to reflect administrative decisions not to pay the entire amount claimed. Disallowances may result from nonperformance, improper performance, improper billings, insufficient proof of performance, offset of a debt, etc.
Electronic invoicing: Electronic invoicing (eInvoicing) is a form of electronic billing that uses the OpenNet or the Internet to electronically route, process, and approve invoices for payment. Electronic invoicing platforms streamline invoice processing by eliminating the need to manually route paper vouchers for approval. Importantly, electronic invoices can provide a document repository for all voucher documentation and maintain an audit trail of the entire approval history for a payment. Electronic invoicing may use several different methodologies from an invoice upload utility to convert electronic files, to scanning traditional paper invoices and payment vouchers into a document imaging system, to an integrated web-based system such as the Treasury’s Invoice Processing Platform (IPP) or the Integrated Logistics Management System (ILMS – eInvoicing).
Electronic signature: An electronic signature, or e-signature, refers to data in electronic form, which is logically associated with other data in electronic form and which is used by a signatory to sign. This type of signature provides the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation used to create it. Electronic signatures are a legal concept distinct from digital signatures, a cryptographic mechanism often used to implement electronic signatures (see definition of digital signature).
Electronic voucher: An electronic voucher, or e-voucher, is an electronic equivalent of an accounting document representing an internal intent to make a payment to an external entity, such as a vendor or service provider. Internal controls equivalent to those applied to manual vouchers must be applied to electronic or e-vouchers.
Financial management officer (FMO): The officer responsible for post financial operations. Some of these fiscal responsibilities include:
(1) Ensuring that post funds are not over-obligated or over-expended;
(2) Maintaining all required budgetary and accounting records;
(3) Maintaining proper controls of cash funds;
(4) Ensuring that all liabilities are liquidated promptly in accordance with prescribed regulations;
(5) Ensuring that obligating documents and vouchers are properly prepared and approved and are valid;
(6) Ensuring that budgeting and financial reports are rendered accurately and promptly; and
(7) Controlling cash funds maintained at post.
Invoice: A bill, written document, or an electronically transmitted document, such as a facsimile copy, scanned copy, email copy, or electronic data interchange, provided by a vendor requesting payment for property received or services rendered. A proper invoice or an electronically transmitted document must meet the requirements of the Prompt Payment Act. The term invoice also includes a receiving report and delivery tickets when contractually designated as invoices.
Invoice processing platform (IPP): IPP is a secure web-based electronic invoicing system that manages government invoicing from purchase order through payment notification. It is provided by the Treasury’s Bureau of the Fiscal Service to Federal agencies and their vendors to create, route, review, and approve paperless invoices for payment. Users may obtain detailed information relating to Federal payments, including information which connects those payments to specific invoices, purchase orders, and other business information.
National Archives and Records Administration (NARA): An independent U.S. Government agency charged with preserving and documenting government and historical records. This agency is also responsible for prescribing policies for managing U.S. Government records. Department of State record retention schedules are established in accordance with NARA policies and procedures.
Office of Claims: The Office of Claims is the designated billing office (DBO) for domestic payments, and the Department centralized domestic accounts payable operations. It provides domestically-based timely, flexible and accurate commercial vendor and travel voucher payments across four payment platforms (Global Financial Management System - GFMS, Regional Financial Management System – RFMS, Treasury’s Secure Payment System – SPS, Treasury’s Invoice Processing Platform – IPP). In accordance with Appropriation Law, the Prompt Pay Act and the Treasury’s regulatory guidelines, the office processes, verifies and certifies the scheduling of domestic automated and manual payments for disbursements via the Department of the Treasury, and reports revenue for 1099 eligible candidates.
Official records: Information executed in the course of official business that documents a transaction or activity by or with any officer, agency, or employee of an agency. Examples of official records include, but are not limited to, contracts, Federal assistance awards, invoices, receipts, receiving reports, vouchers, payment schedules, official authorizations, and agreements/instructions officially executed between an authorized officer and another third party or government organization. Official records may be hard copy or virtual as long as the origin and validity of the record can be verified.
Partial payment: A partial payment may occur when a vendor has delivered a portion of the goods or services and the vendor is permitted to invoice and receive payment for the portion of goods and services received and accepted. The submitted invoice must be approved prior to making the payment.
Payment: Disbursement or liquidation of an obligation by issuing a check, cash, or electronic funds transfer (EFT). Payment occurs on the settlement date for electronic funds transfers or the date of the U.S. Treasury check.
Personally identifiable information (PII) (as defined by OMB M-07-16): Information that can be used to distinguish or trace an individual's identity, such as their name, social security number, biometric records, etc., alone, or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name, etc.
Post Support Unit (PSU): Centralized voucher and payment processing locations established by the Bureau of the Comptroller and Global Financial Services (CGFS). PSU provides efficient and cost-effective voucher processing for subscribed posts that ensures consistency in the treatment of regulations and policy. The service is responsive to individual post needs, supplementing core post financial activities such as voucher processing.
Preparation: Completion of all required information on a voucher. It includes making copies, attaching statements and certificates, ensuring that foreign currency information is correct, etc. Preparation of a voucher may be done by the vendor, the claimant, the traveler, the ordering office, or the procurement office.
Prepayment examination: Examination of vouchers prior to certification. The objectives of a prepayment examination are to ensure the availability of the appropriation or fund involved, the accuracy of the payment, and the existence of supporting documentation.
Processing: Receiving, sorting, preparing, approving, and prepayment examining of vouchers. It begins with the receipt of vouchers and concludes with the prepayment examination and presentation of vouchers for certification.
Receipt: A document provided by an individual or business which acknowledges that payment for services has been received. The receipt must contain enough detail to permit determination of allowable expense claims.
Receipt of goods or services: The signature acknowledgment that goods ordered have been received or that services have been performed. This acknowledgment is the basis for approval.
Records management and retention: Procedures and practices for managing Department of State records in a manner that complies with retention periods specified by NARA and the Department of State.
Reimbursements: Payments made by one U.S. Government agency to another to liquidate accounts payable arising from purchases of goods or services by the performing agency on behalf of the reimbursing agency.
Suspensions: Amounts subtracted from voucher amounts to reflect nonperformance or nonconformance to policy, lack of information, etc. The amount is withheld from the claimant and kept in suspense until the matter is resolved.
Three-way match: The three-way match compares the description of the items, quantities, and unit price between the obligating document, receiving report, and vendor invoice.
Voucher: A document used to authorize a payment. The document can be a form prescribed by a U.S. Government agency and approved by the U.S. Treasury Department (e.g., domestically, Form SF-1034, Public Voucher for Purchases and Services Other than Personal; and overseas, Form DS-2076, Purchase Order, Receiving Report and Voucher) or an invoice, if it has all the required information. For grants and cooperative agreements, Form SF-270, Request for Advance or Reimbursement, approved by the grants officer, serves as the invoice for payment.
Voucher and Schedule of Payments: Hereafter known as “voucher schedule,” is a document used to authorize a payment. A voucher schedule might be a group of examined vouchers consolidated on the basis of the type of expense or the mode of payment. It may be preprinted or computer/machine-generated.
Voucher examination: Examination of vouchers prior to certification. The objectives of a voucher prepayment examination are to ensure the availability of the appropriation or fund involved, the accuracy of the payment, and the existence of supporting documentation.
Voucher processing: Receiving, sorting, preparing, approving, and prepayment examining of vouchers and culminating with a certification for payment.
4 FAM 414 FORMS
(CT:FIN-462; 04-19-2021)
The following are some of the major vouchering forms prescribed and referred to in this chapter. Forms may exist in hard copy or electronic format within a financial system. This list is inclusive, not exhaustive, and contains only the major forms used in the vouchering process:
(1) Form OF-1012, Travel Voucher, used to process travel expenses and allowances for claims processed domestically;
(2) Form DS-189, Travel Reimbursement Voucher, used to process travel expenses and allowances for overseas claims;
(3) Form DS-2076, Purchase Order, Receiving Report and Voucher, used to voucher purchases and services other than personal where payment is to be made by a USDO. The completed form must have an acceptance date annotated on it in addition to a receiving date. May also be used in place of special forms that are not readily available;
(4) Form SF-270, Request for Advance or Reimbursement, used to process payments for grants and cooperative agreements;
(5) Form DS-7635, Cashier Reimbursement Voucher and/or Accountability Report, used by a cashier to account and be reimbursed for imprest funds;
(6) Form DS-1088-A, Signature Card for Certifying Officers, contains the official signature of an authorized certifying officer;
(7) Form SF-1034, Public Voucher for Purchases and Services Other Than Personal, used to voucher domestic and foreign disbursements for purchases and services other than personal;
(8) Form SF-1047, Public Voucher for Refunds, used to process refunds due remitters;
(9) Form SF-1080, Voucher for Transfers between Appropriations and/or Funds, used as a charge document and disbursement voucher by the agency receiving the funds;
(10) Form SF-1081, Voucher and Schedule of Withdrawals and Credits, used by agencies within the Treasury disbursing area to conduct interagency expenditure transactions;
(11) Form SF-1113, Public Voucher for Transportation Charges, used to pay public carriers;
(12) Form OF-1164, Claim for Reimbursement for Expenditures on Official Business, used to pay for small purchases that have been preapproved by Procurement and Budget, miscellaneous expenses such as local transportation and telephone calls. Also may be used to pay allowances and benefits. The E2 local travel module may be used in lieu of Form OF-1164;
(13) Electronic Form SF-1166, Voucher and Schedule of Payments, used to schedule payments in place of transmitting individual basic vouchers and supporting documentation;
(14) Form DS-127, Receiving and Inspection Report is an automated receiving, inspection, and acceptance report that is distributed within ILMS; and
(15) Form OF-347, Order for Supplies and Services is an ILMS automated form for receiving small purchases and other simplified purchases.
4 FAM 415 documentation requirements
(CT:FIN-462; 04-19-2021)
a. In accordance with GAO Title 7 and Federal Acquisition Regulation 4.803(c), disbursements shall be supported by basic payment records which include purchase orders, contracts, receiving reports, invoices, bills, statements of accounts, etc., showing sufficient information to adequately account for the disbursements. These records may be contained within the financial system or other CGFS approved systems (i.e., ILMS, IPP). The following are examples of the records normally contained, if applicable, in the payment supporting documentation:
(1) The contract and any modification(s);
(2) Each bill, invoice, or voucher, with supporting documents related to the contract;
(3) A record of each payment or receipt, including the source of funding and the unexpended balance (obligated amount of the contract net of payments or receipts); and
(4) Other pertinent documents.
b. In accordance with 2 CFR 200 and the Federal Assistance Directive, payments for grants, cooperative agreements, and certain other Federal assistance awards are supported by the DS-1909/1909i, Notice of Award, award amendments, and the Form SF-270, Request for Advance or Reimbursement, which has been reviewed and signed as approved by the grants officer. Additional supporting documentation may include any financial and/or program reports required in the award terms and conditions, grants officer representative site visit reports and/or monitoring notes, etc. Receipts for recipient expenditures are not collected, although they may be viewed during site visits. Documentation supporting payments is maintained in the State Assistance Management System official award file.
4 FAM 416 TAX REPORTING REQUIREMENTS
(CT:FIN-462; 04-19-2021)
The Department is required to report payments made to certain contractors and grant recipients to the Internal Revenue Service (IRS) and other appropriate tax authorities in accordance with 26 U.S.C. 6041. Officers should refer to 4 FAM 426 for the authority, definitions, and reporting requirements related to tax reporting.
4 FAM 417 through 419 UNASSIGNED