This chapter addresses requirements for NTDOs.
This chapter addresses applications and payment-related processes that reside under the authority of the Department of the Treasury (Treasury), Bureau of the Fiscal Service (Fiscal Service), Payment Management, when payments are not processed by Fiscal Service. NTDOs must adhere to the letter and intent of the authorities, processes, and rules outlined in TFM Volume I, Part 4A, Chapter 4000 for the creation, issuance, and reporting of transactions.
31 U.S.C. § 3321(c)
All NTDOs must report to Treasury on a daily basis their anticipated aggregate level of planned disbursements for each disbursing method [for example, wire, Automated Clearing House (ACH), or check] for the following five day period. These reports are due to Treasury each business day by 3 p.m. Eastern Time (ET). Each entity that performs its own disbursing should submit one consolidated report each day.
Each NTDO must submit a consolidated agency disbursement report no later than 3 p.m. ET each business day. Fiscal Service has prepared a template to standardize the reporting of this information, Non-Treasury Disbursing Office Reporting.
Fiscal Service will review NTDO compliance and will report to NTDOs on the status of their compliance. Fiscal Service will provide assistance to NTDOs not in compliance or those requesting assistance with proper reporting.
In the event of a government budget year transition or debt ceiling constraint, Treasury will invoke rules for the processing of payments that flow through the Federal Reserve Banks (FRBs) and debit the U.S. Treasury’s General Account (TGA).
Rules to follow under a government budget year transition or debt ceiling constraint include:
- Be signed by an authorized signatory on file with FedACH
- Include the file ID Modifier for each file transmitted
- Include the NTDO's originating and sending point Routing and Transit Number (RTN)
- Include the total dollar amount for each file transmitted
Agencies must submit the original and one copy of the basic vouchers prepared on government standard forms or on forms otherwise specifically authorized; invoices, bills, or statements of account serving as basic vouchers, to the DO for payment processing. The DO records the payment data on both the original and the copy of the voucher. The DO submits the original voucher as accounting support for the payment transaction and retains the voucher copy for the accounting document files.
Unless required by the appropriate disbursing office, NTDOs are not required to use the Secure Payment System (SPS) for disbursements. Vendors’ invoices, bills, or statements of account may be used as vouchers to support the agency’s accounts and accountability statements, provided they show all the information required in Title 7 of the Government Accountability Office (GAO), Policy and Procedures Manual for Guidance of Federal Agencies.
If agencies are not “Central Accounting Reporting System (CARS) Reporters” because they do not report classification at initiation of the payment or through the Payment Information Repository (PIR), then they will report payment disbursements to an appropriation on the:
or one of the following:
See TFM Volume I, Part 2, Chapter 3200 for additional information on reporting foreign currency payments.
Agencies using eight-digit ALCs report foreign currency disbursements to an appropriation on their Statement of Transactions (224).
Agencies using four-digit ALCs do not report foreign currency disbursements on their Statement of Transaction (224). Instead, they report a charge to the agency appropriation indicated on SF 1166: Voucher and Schedule of Payments, for these disbursements on a SF 1221. An agency receives confirmation of the disbursement of foreign currency payments and the amounts of the U.S. dollar equivalent of those payments. These reports include:
For additional information on reporting, see TFM Volume I, Part 2, Chapter 5100.
All agencies must use CARS and submit the Treasury Account Symbol (TAS)/Business Event Type Code (BETC) reporting classification of each payment.
All federal agencies not using Treasury disbursing office services must submit disbursement related transaction information through PIR to CARS.
All agencies who have converted to CARS Payment Reporter must submit a valid TAS/BETC combination at the point of initiation. Adjustments can subsequently be made using the CARS Classification Transaction Accountability (CTA) module. Fiscal Service reference data for TAS/BETCs can be found at the Shared Accounting Module (SAM) website.
PIR is a payment reporting tool that supplies the latest information on disbursements and the detail of payment transactions for federal agencies.
Agencies that disburse their payments through FRBs must access PIR to view all payment related debit vouchers and credit vouchers. See the PIR website for enrollment procedures for accessing PIR.
PIR is the vehicle for NTDOs to report their payment TAS/BETCs to CARS. With the exception of transactions that are specifically identified by Treasury as not going through PIR, all NTDOs with payments, or other debit activities that affect the TGA, must report to Treasury payments and/or any returned payments through PIR.
NTDO agencies must report their payment TAS/BETC classifications daily on the date of the payment through PIR using the Standard Reporting Format (SRF). The PIR will report summarized TAS/BETCs to CARS.
Agencies that issue Treasury checks will no longer submit their check issues files using the current Treasury Check Information System (TCIS) format once they are reporting through PIR. NTDOs that issue checks and report them monthly on the check issues file to TCIS will move to daily reporting of checks to PIR using the PIR SRF. PIR files containing check payments will be consumed by both PIR and TCIS. The requirements and rules for check issue reporting as outlined in the PIR SRF replace the requirements in TFM Volume I, Part 4, Chapter 6000, section 6025. For information on submitting claims for nonreceipt of checks drawn on the U.S. Treasury, see TFM Volume I, Part 4, Chapter 7000.
As outlined in the PIR SRF, agencies must submit the files to PIR by 8 p.m. Eastern / 7 p.m. Central Time on the date of payment. The “date of payment” is defined below for various methods of payment.
Agencies use the PIR SRF to submit one or more files, each containing one or more batches. A batch is described below, based on the method of payment.
Note: Agencies that do not submit payments with the TAS/BETC classified on the SRF on the date of payment will have their vouchers default in CARS to the default TAS/BETC defined in SAM for payment transactions. Then, the agency must reclassify the voucher in the CARS Classification Transaction Accountability (CTA) module. Agencies must clear the default account by the third workday after month-end or it negatively impacts the quarterly scorecard that is sent to agencies’ Chief Financial Officers.
Note: Only the Department of Defense may receive a waiver from the timely reporting of payment transactions when ships or active service units are operating under “brown-out” or “silent-running” conditions, where non-mission-critical transmissions are prohibited.
In accordance with 31 U.S.C. § 3321(b), this section prescribes procedures and policies by which Fiscal Service delegates to officers and employees of other federal agencies the authority to disburse public money. It is consistent with Fiscal Service’s continuing oversight over agencies that are delegated disbursing authority.
This section does not pertain to federal agencies that are granted authority to disburse public money by statute. See 31 U.S.C. § 3321(c).
Fiscal Service delegates disbursing authority in limited cases for purposes of “economy and efficiency,” consistent with the requirements of 31 U.S.C. § 3321(b). Thus, Fiscal Service approves an executive agency’s request for delegated disbursing authority only if, among other things:
In limited cases when Fiscal Service, in its sole discretion, determines that an agency has met the requirements to be delegated disbursing authority, Fiscal Service executes a written Delegated Disbursing Authority Document. The Delegated Disbursing Authority Document sets forth specific terms, conditions, and limitations of the particular delegation.
Fiscal Service has the authority to amend the specific terms of the Delegated Disbursing Authority Document, as necessary and appropriate. Before Fiscal Service finalizes any amendment, it provides advance notice to the agency, in writing, setting forth the specific purpose and reasons for the proposed amendment. Fiscal Service gives the agency the opportunity to submit comments on any proposed amendment. However, Fiscal Service retains sole decision-making authority to finalize amendments to the Delegated Disbursing Authority Document.
When Treasury’s CDO delegates disbursing authority to an agency in accordance with 31 U.S.C. § 3321(b), the CDO:
An agency that is delegated disbursing authority by the CDO under 31 U.S.C. § 3321(b) assumes significant responsibilities and liabilities, including but not limited to:
In addition, an agency with delegated disbursing authority must practice effective security and internal control measures as prescribed by Fiscal Service (in Treasury Directive No. 71-10), GAO, and the Office of Management and Budget (OMB).
Every two years, the agency with delegated disbursing authority must conduct a review of its disbursing operations to ensure compliance with the following:
Following such reviews, agencies must submit a self-certification and questionnaire response to Fiscal Service stating whether or not they comply with these requirements. Fiscal Service advises agencies of the due date of these responses and provides them with the self-certification language to be included in the response. To the extent that an agency cannot certify that it complies with a specific requirement, the self-certification must document the agency’s planned corrective action to achieve compliance within an identified timeframe.
The self-certification focuses solely on FMFIA, Section 2 reports (internal controls) and Section 4 reports (financial management systems). See 31 U.S.C. § 3512(d)(2) and (d)(2)(B); also see OMB Circular Nos. A-123 and A-127 for further information on Section 2 and Section 4 requirements. Specifically, an agency must self-certify that its Section 2 and Section 4 reports provide reasonable assurance that the agency is in compliance with FMFIA, Section 2 and Section 4 requirements. To the extent that an agency self-certifies “noncompliance” or “qualified assurance” with Section 2 and Section 4 requirements, it must identify all material weaknesses and corrective action plans to achieve compliance within an identified timeframe.
Section 803(a), which requires each agency to “implement and maintain financial management systems that comply substantially with federal financial management systems requirements.” Specifically, the agency must certify that it complies with FFMIA, Section 803(a) requirements, if applicable, and that this determination has been verified by independent audit, as referenced under FFMIA, Section 803(b). See 31 U.S.C. § 3512, note. To the extent that an agency self-certifies “noncompliance” with Section 803(a), it must identify “resources, remedies, and intermediate target dates necessary to bring the agency’s financial management systems into substantial compliance” with Section 803(a). See FFMIA, Section 803(c)(3) discussing the requirement for a remediation plan to achieve compliance.
The self-certification allows an agency to provide information on corrective or remediation plans, if necessary. Fiscal Service provides guidance to agencies on format and procedures for submitting the agency self-certification and questionnaire response in the Agency Self-Certification Guide and Questionnaire.
When an agency’s self-certification indicates the agency is not in compliance with one or more stated requirements, Fiscal Service, in its sole discretion, may determine it is necessary that a risk assessment of the agency’s disbursing system be conducted. In making such a determination, Fiscal Service may consider such factors as the status and utility of the corrective and remedial plans identified by the agency to achieve compliance. The risk assessment is intended to evaluate, among other things, agency-identified deficiencies or material weaknesses in financial management systems, operations, and accounting and reconciliation procedures that may adversely affect the agency’s disbursing performance. The agency develops, and submits to Fiscal Service, a plan for conducting the risk assessment. The plan must identify the party who will conduct the assessment. Risk assessments are conducted in accordance with Fiscal Service’s risk assessment guide or another guide that meets Treasury’s standards and is approved by Fiscal Service. At Fiscal Service’s discretion, agencies must provide Fiscal Service with a copy of their FMFIA, Section 2 and Section 4 reports; FFMIA, Section 803(a) reports; and other audit information as part of any risk assessment.
If an agency does not comply with the review and self-certification reporting requirements provided under subsection 4040.50a, or does not respond to requests for information in connection with a risk assessment as provided under subsection 4040.50b, Treasury’s CDO notifies the agency, in writing, of a final date certain for complying with such requirements. The CDO reserves the right to revoke the agency’s disbursing authority delegation in accordance with subsection 4040.30, if the agency fails to respond adequately to the terms of this written notice by the indicated final date certain.
The CDO may terminate an agency’s delegation of disbursing authority if Fiscal Service determines, in its sole discretion, that:
In addition, the CDO periodically reviews whether the agency continues to meet the standards for delegation of disbursing authority as set forth under 31 U.S.C. § 3321(b) and subsection 4040.10. The CDO may terminate an agency’s delegation of disbursing authority when Fiscal Service determines, in its sole discretion, that the agency no longer meets such standards.
The CDO notifies the agency, in writing, that its delegation of disbursing authority is being terminated. Before any termination action is taken, Fiscal Service and the agency work together to resolve all outstanding questions and issues. If this effort is unsuccessful, Fiscal Service consults with the agency to determine an appropriate effective date for termination and the resumption of Treasury disbursement services. In determining the effective termination date, Fiscal Service and the agency consider the mission of the agency and the needs of its payees. If Fiscal Service and the agency cannot reach a mutual decision on the effective date for termination, Fiscal Service determines the effective date and notifies the agency.
Direct inquiries concerning this chapter to:
Department of the Treasury
Bureau of the Fiscal Service
Chief Disbursing Officer
3201 Pennsy Drive, Building E
Landover, MD 20785
Department of the Treasury
Bureau of the Fiscal Service
Policy and Oversight Division
3201 Pennsy Drive, Building E
Landover, MD 20785