Manage a Limited Depositary Account - PowerPoint Presentation

Slide1

Manage a Limited Depositary Account Slide2

Action:

Manage a Limited Depositary Account

Conditions: In a classroom environment given a two hour time frame; students will work as a member of a small group/ individual; using DoD FMR 7000.14-R, Volume 5 Chapters 1-3 & 14, FM 1-06, the slide presentation for immediate referencing, and students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors. Standard: Managed a Limited Depositary Account. Students will be assessed within 80% accuracy by demonstrating their understanding of requesting an LDA, maintaining an LDA, transferring an LDA, and closing an LDA.

Enabling Learning Objective

Slide3

Managing a Checking Accounting

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Establish a Disbursing Activity

Prepare memorandum

Submit to Director, DFAS, ATTN: DFAS- NPD/IN Receive approval and DSSN Obtain an Employee Identification Number (EIN) for the local IRS Obtain equipment, pubs, and blank forms Report the activation to Treasury FMS, Check Reconciliation Branch Execute necessary appointment ordersSlide5

What are some ways of obtaining the funds needed to keep your office in operation?Slide6

Obtain Funds

Determine currency requirements

Cash-holding authority

Procurement of fundsArmed escort during transportVerification of money Pecuniary liability Slide7

Establish a Limited Depositary Account

Solicit proposals of financial institutions (descending)

Standard operating services minimally required

Customary local banking practices Other special services that may be necessary Required services

Local payments to vendors

Checks, EFTs and deposits

Regulatory bank statements

Acceptance of DO’s funding proceduresSlide8

Request a LDA

Submit LDA request to US Treasury through DFAS

Establish the LDA in the name of the DO

Submit authorization letter from CDR to financial institution

Order checks from the bank where LDA is maintained

Request in continuous-form format

Overprinted with specific information

Procurement costs charged to disbursing activity’s

O&M

fund

Checks treated in the same manner as US checksSlide9

Maintain

a LDA

Check Preparation

Record of Check

Disbursement Vouchers

Signature on Original Vouchers

Account Statements

Interest on DepositsSlide10

Voided/Spoiled Checks

Voided Checks

DO request voiding of a check

Stamp, mark or write

Voided checks listing

Spoiled Checks

DO reports a check as spoiled

Replace a spoiled check

Stamp, mark or write

Spoiled checks listingSlide11

Un-Current Check Transfers

Open Limited Depositary Accounts

LDA’s check listing (ascending numerical order) Stop payment notice to LD Method of transfer Accounting for the transfer Distribution of documentsClosed Limited Depositary Accounts Transfer U.S. dollar equivalent to TreasurySlide12

Undeliverable Check Transfers

Never hold undeliverable LDA checks longer than 60 days from

the date of issue

Returned and Undeliverable Check/Bond Record (DD Form 2658)Protect the same as cash Disposition of Proceeds Drawn on Open Accounts Disposition of Proceeds Drawn on Closed AccountsUndeliverable Checks Un-current as to Date of Issue Slide13

Check Replacement

Payee Notifies the DO in writing

DO determines status of the check

Outstanding check, request LD stop payment against the check Outstanding check, reported on time, no question of fact or law Paid check, Forged endorsement, no question of fact or law Refer to the DoD Office of the General Counsel (Fiscal)Slide14

Check Adjustment

Record overdrafts/under drafts immediately

Overdraft

Journal Voucher Optional Form (OF 1017-G) Begin collection action One-sided Voucher and Schedule of Withdrawals and Credits Standard Form (SF 1081) for appropriation cited Under draft Journal Voucher Optional Form (OF 1017-G) One-sided Voucher and Schedule of Withdrawals and Credits Standard Form (SF 1081) for appropriation cited Public Voucher for Purchases and Services Other Than Personal Standard Form (SF 1034) and issue checkSlide15

Documentation of the LDA

Monthly Reconciliation

Statement of Designated Depositary Account Standard Form (SF 1149)

Schedule of Canceled or Undelivered Checks Standard Form (SF 1098)Journal Voucher Optional Form OF 1017-GSlide16

The Employee/DO/DA/CashierSlide17

Internal Controls

Quarterly cash count

Quality assurance reviews

Compare ID to voucher for payeeBalance out each business dayEnforce local finance policiesClear all cashiers dailySlide18

Safeguarding Funds and Related Documents

Cashier cages

Vaults and safes

Change all combinationsSpare cashier keys and combinationsAuthorized personnel onlyTest alarmsSlide19

Agents

File orders

Properly trained

Furnish written instructions Identify payees and obtain signaturesAmount limitsStatement of Agent Officer's Account (DD Form 1081)Armed guard and secure containerSlide20

Transferring the LDA

DFAS Notification

Up-to-date bank statement

Reconcile the LDA Dissemination of checksLiquidation of accountBalance verificationSlide21

Closing the LDA

DFAS notification

Final bank statement

Reconcile the LDA Dissemination of checksBalance verification 15 day notification Slide22

Close a Disbursing Activity

Designation of Settlement Office

Notify affected activities of closure

Terminate appointmentsClear all outstanding advancesDeposit all monies to the credit of The US Treasury Transfer deposit fund account balances Cancel undeliverable/destroy unused blank US Treasury checks Submit a final SF 1219 and SF 1179

Notify supporting DFAS site of useable office equipment Send all retained records to the settlement officeSlide23

Critical Thinking

How might you use this information in the future?How else could you use this information?How can you apply newly learned information in current or future duty positions?

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Group Exercise

How to establish a disbursing activity?

What is the process of obtaining funds?

How to establish and request an LDA? What are the key elements in maintaining an LDA? What are the procedures to close a disbursing activity?Slide25

Action:

Manage a Limited Depositary Account

Conditions:

In a classroom environment given a two hour time frame; students will work as a member of a small group/ individual; using DoD FMR 7000.14-R, Volume 5 Chapters 1-3 & 14, FM 1-06, the slide presentation for immediate referencing, and students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors. Standard: Managed a Limited Depositary Account. Students will be assessed within 80% accuracy by demonstrating their understanding of requesting an LDA, maintaining an LDA, transferring an LDA, and closing an LDA. Enabling Learning Objective Slide26

Appendix A

Assessment PlanSlide27

Appendix B

Presentation Outline