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DoD Financial Management Regulation Volume 5, Chapter 05

CHAPTER 05

DEPOSIT AND TRANSFER OF PUBLIC FUNDS

0501 DEPOSIT OF FUNDS

050101. General. As prescribed in 31 U.S.C.3302 (reference (o)), DOs who have funds inexcess of current requirements shall depositthem for credit to the Treasury without delay.An exception to the general rule is authorizedfor those instruments which shall be returned tothe remitter in the form in which received, anexample being deposits of unsuccessful biddersfor the sale of Government property.

050102. Depositaries

A. Federal Reserve Bank (FRB). DOswho use an FRB or branch as a depositary maydo so without prior approval from the servicingDFAS Center. FRBs or branches shall be usedwhenever possible. Appendix B provides a listof FRBs and branches. All deposits to an FRB orbranch shall include a Ca$h-Link IdentificationNumber (CIN) in Block 3 of the SF 215, DepositTicket. The CIN is also required as a part of theendorsement on negotiable instruments includedin such deposits. The CIN is derived by addingfour leading zeroes to the DSSN and calculatinga check-digit for the ninth position. The CIN iscalculated as shown in table 5-1. When prepar-ing the SF 215 (and endorsements), the eight-digit CIN and the ninth digit are separated by adash.

B. General Depositaries. As pre-scribed by the Treasury Financial Manual (refer-ence (w)), banks or other financial institutionswhich are approved as general depositaries aredesignated by the Treasury. Depositaries will bedesignated only at locations where they areneeded to receive deposits of public funds forcredit to the Treasury or to furnish cash to DOsfor official disbursements. If more than onebank or a bank and credit union have beenauthorized at a base, station, installation, orcommand, the local commander, if asked, shouldgive these financial institutions equal recognitionwhen recommending designation as a depositaryto the Treasury. After approval by the Treasury,the commander should also make an effort toreasonably distribute official financial transac-

tions among the approved depositaries. Publicfunds shall not be deposited in a financial insti-tution which is not an approved general deposi-tary except as provided in subparagraph050102.E below. Deposits shall not be mailed toa general depositary unless specifically autho-rized by the Treasury.

C. Requests to Deposit With orChange General Depositary. DOs who wanteither to get initial authorization to depositcollections with a general depositary or tochange from one depositary to another shallsend a request through the servicing DFASCenter to the Financial Management Service,Department of the Treasury, Chief DepositaryReview Section, Banking Operations Branch, 3700East-West Highway, Hyattsville, MD 20782.The request should be sent at least 90 calendardays prior to the requested effective date toallow the Treasury enough time to make thenecessary arrangements and issue appropriateinstructions to the depositary. The request shallcontain the following information:

1. Name and location of thedepositary currently used.

2. Time and manner in whichdeposits are made with the current depositary.

3. Name and location of theproposed depositary (specify the name andlocation of the particular branch office, if applica-ble).

4. Time and manner in whichdeposits will be made with the proposed deposi-tary.

5. Total dollar amount depositedmonthly.

6. Total number of checks (in-cluding Treasury checks) deposited monthly.

7. Dollar amount and number ofTreasury checks deposited monthly.

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Volume 5, Chapter 05 DoD Financial Management Regulation

8. Amount of cash depositedmonthly.

9. Number of returned checksper month.

10. Number of SFs 215 permonth.

11. A brief justification statementoutlining distances involved and savings in timeand money to be gained by approval of therequest.

D. Need for General DepositaryCeases to Exist. Should the need for a generaldepositary cease to exist, the DO shall notify theservicing DFAS Center of the date on which theneed will terminate and the reason.

E. Limited Depositaries. Limiteddepositaries are designated only to receivedeposits made by or on behalf of DOs for creditto their official non-symbol checking accountsmaintained with such depositaries. Limiteddepositaries are not authorized to accept depositsfor credit to the Treasury.

0502 DEPOSIT REQUIREMENTS

050201. Frequency. The deposit of all fundsreceived for credit to the account of the Treasuryshall be made without delay. Deposits shall bemade at a time of day before the depositary’sspecified cutoff time, but as late as possible tomaximize daily deposit amounts. Receipts of$5,000 or more shall be deposited on the sameday received before the depositary cutoff time.In those instances where the disbursing officebusiness day has been advanced due to volumeof transactions and balancing requirements,deposits shall be made on the disbursing officebusiness day on which the receipts are processedinto the DO’s account. For example, today’scalendar date is September 7 but the disbursingoffice business date is September 8. If receiptsfor the DO’s business date of September 8 equalor exceed $5,000, the receipts must be depositedprior to the end of the depositary’s business dateof September 8. Where same-day deposit is notcost effective, next-day deposit shall be achieved.It may be necessary, therefore, for DOs to set acutoff time in connection with the preparation ofdeposits, and deposit on the following day all

receipts after that time. If daily deposits ofreceipts of less than $5,000 are impractical, theymay be accumulated and deposited when thetotal reaches $5,000. However, deposits shall bemade by Thursday of each week, regardless ofthe amount accumulated. DOs should limit theirtransmittals of deposits to one per day. DOsshall separate cash from checks and prepare aseparate SF 215 for each when depositing withan FRB. A cash deposit and a check deposit onthe same day constitute one deposit per day.For Navy vessels in U.S. ports, deposits shall beprepared and either delivered in person ormailed via registered mail to the nearest FRBwhen receipts accumulate to $5,000 as prescribedabove. For Navy vessels at sea when daily mailservice is not available, receipts (consisting onlyof personal checks, money orders and other non-Treasury negotiable instruments) may be accu-mulated up to $5,000 before they must be depos-ited, provided that a deposit of all receipts onhand is made at least once each week. Thisexception does not apply to U.S. Treasurychecks. The DO shall prepare the deposits formailing via registered mail and deliver them tothe Military Post Office onboard. Negotiableinstruments to be deposited shall not be held inthe DO’s accountability pending arrival at thenext scheduled port of call. Regardless of thetotal amount, the time interval since the lastdeposit, and the type of checks and negotiableinstruments on hand, DOs onboard Naval ves-sels shall make a deposit on the last regularbusiness day before leaving port and the firstregular business day after returning to port forany at-sea period in excess of one week.

050202. U.S. Dollar Deposits

A. Negotiable Instruments. Negotia-ble instruments (e.g., Treasury checks, personalchecks, travelers checks, money orders, etc.)payable in U.S. dollars shall be deposited forcredit to the account of the Treasury with thenearest FRB or branch or an approved generaldepositary. All DOs in the United States (andactivities authorized to deposit to the account ofa DO in the United States) shall deposit Treasurychecks in the sum of $5,000 or more with thenearest FRB or branch. For example: if thedeposit includes one Treasury check for $5,000 ormore, the deposit must be made to an FRB orbranch; or, if the deposit contains several Treas-ury checks, the total of which is $5,000 or more,

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the deposit must be made to an FRB or branch.When an FRB or branch is used, separate SFs 215shall be prepared for each of the followingdeposits: (1) cash; (2) checks (e.g., Treasurychecks, personal checks, money orders, travelerschecks, etc.); and (3) food stamp coupon redemp-tions. Check endorsements, SFs 215 and debit orcredit vouchers presented for deposit to an FRBor branch shall include the nine-digit CIN inBlock 3 of the SF 215 (see paragraph 050102.Aabove). Check endorsements, SFs 215 and debitor credit vouchers presented directly to a generaldepositary shall include the four-digit DSSN asthe DO identification number in Block 3 of theSF 215. DOs located outside the continentalUnited States may deposit all Treasury checkswith an established general depositary. Treasurychecks (or cash, or other negotiable instruments)cannot be mailed to a general depositary withoutthe expressed permission of the Treasury Depart-ment. (NOTE: Air Force bases in Europe,without local contract military banking facilities,currently have Treasury authority to mail depos-its to the contract banking facility at Frankfurt,Germany.) Canceled Treasury checks shall bedeposited as prescribed in chapter 08 of thisVolume.

B. Checks Drawn on Foreign Banksin U.S. Dollars Payable Through a Bank in theU.S.. Checks drawn on foreign banks in U.S.dollars, which are payable through a bank in theU.S., will have an American Bankers Association(ABA) routing and transit number in the upperright hand corner and may be magnetic inkcharacter recognition (MICR) encoded with theU.S. bank’s ABA routing and transit number atthe bottom left side of the check. These checksshall be grouped on a single SF 215 and deposit-ed as prescribed in paragraph 050202.A above.

C. Manner of Deposit

1. Deposit by DO. Depositsshall be made in person by the DO or designatedrepresentative at an FRB or branch or an ap-proved general depositary. If deposit of checks,drafts, or money orders in person is impractica-ble, deposits of these instruments may be madeby registered mail or courier, however, depositsof checks, drafts, or money orders by mail arenormally authorized only to a FRB or branch.Cash deposits by mail shall be made only to anFRB or branch. If a deposit of cash in person is

impracticable, the next most preferred method isby armored car. The least preferred method ofdepositing cash is by registered mail. The cashshould be double wrapped or placed in an innerand outer container. If an error is discoveredafter an SF 215 has been released to a depositary,that document shall not be recalled or corrected;nor will a corrected SF 215 be prepared andsubmitted to the depositary. The DO shallcontact the depositary and provide informationon the error and request the depositary to pre-pare: an additional SF 215 for the difference ifthe deposit amount is to be increased; or a SF5515, Debit Voucher for the difference if theamount is to be decreased. Upon receipt of theadditional SFs 215 or 5515, the DO shall recordand report the document as prescribed in thischapter. Deposits of damaged or mutilated cur-rency shall be made as provided in section 0505of this chapter.

2. Deposit By Other Than DO.When more time is required to personally turnin funds to the DO than the results wouldjustify, taking into account the length of journeyand other factors, agent officers or any otherofficers authorized to make collections of publicfunds may dispose of collected funds as shownin the following subparagraphs:

a. Approved DesignatedDepositary Available. Agent officers or anyauthorized collection officer may make deposits(in person) on behalf of the DO when an ap-proved designated depositary is available.Individuals making such deposits shall followthe procedures in paragraph 050301 of thischapter for preparation of the SF 215. Theconfirmed copy of the SF 215 shall be submittedto the DO on the day the deposit is made withthe appropriate collection vouchers and memo-randum copy of SF 215.

b. Approved DesignatedDepositary Not Available. When an approveddesignated depositary is not available, agentofficers or any authorized collecting officers maytransmit cash to the DO by postal money order,bank money order, or cashier’s check. The feefor purchase of the cashier’s check or post-al/bank money order shall be paid in cash at thetime of purchase and the receipt shall be at-tached to the DD Form 1131. The amount of thecashier’s check or postal/bank money order shall

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be deducted from the total amount collected.The body of the DD Form 1131 will be preparedto show the total amount collected, the fee forcashier’s check or postal/bank money order, thenet collection, and the bank and date of themoney order. Figure 5-11 is an example of acompleted DD Form 1131.

050203. U.S. Department of Agriculture FoodStamps

A. General. Food stamps shall bedeposited with the nearest FRB or branch thereofon a daily basis. In those instances where thecommissary officer makes the deposit, an agree-ment with the DO should be made to define thatresponsibility.

B. Deposits. Food stamp depositsshall be accomplished using a separate SF 215and shall be mailed registered (uninsured) mail.In addition, a properly prepared FNS Form 278,Food Stamp Redemption Certificate shall accom-pany the SF 215. Food stamps are exemptedfrom the requirement to maintain a record ofnegotiable instruments. The separation of re-deemed food stamps from other negotiableinstruments is necessary due to differences in theaudit and reconciliation process. See I TFM 5-2050.20d (reference (w)).

C. Lost, Stolen, or Destroyed FoodStamps

1. Food Stamps Lost, Stolen, orDestroyed While in the Custody of a Commis-sary Officer. Food stamps represent cash, andall security procedures for cash handling shall beobserved. Food stamps are accounted for by theDepartment of Agriculture (USDA) while othernegotiable instruments are accounted for by theTreasury. The USDA Food and Nutrition Serv-ice (FNS) is not liable for the value of any cou-pons lost, stolen, or destroyed while in thecustody of an insured financial institution or forthe value of coupons lost, stolen, or destroyedwhile in transit from an insured financial institu-tion to an FRB. USDA has interpreted that DoDDOs (including deputies, agents, cashiers andcustodians) fall within the definition of an in-sured financial institution. Food stamps in thecustody of the commissary officer which are lost,stolen, or destroyed shall be treated as a physicalloss of funds on the part of the commissary

officer in accordance with chapter 06 of thisVolume. Also, if an FRB determines that one ormore coupons are missing from a deposit re-ceived by the FRB, the FRB shall issue an SF5515. The SF 5515 shall be recorded in the DO’saccountable records in the normal manner andtreated as a physical loss of funds on the part ofthe commissary officer in accordance with chap-ter 06 of this Volume.

2. Food Stamp Deposits Lost,Stolen, or Destroyed Before Arrival at the FRB.There may be instances where an entire depositof coupons is lost, stolen, or destroyed beforearrival at the FRB. Evidence of this should bedetected through non-receipt of the confirmedcopy of the SF 215. If the lost transaction cannotbe resolved, a descriptive OF 1017-G, JournalVoucher shall be prepared and recorded in theDO’s accountable records in the same manner asan SF 5515 would be recorded. If the commis-sary officer has assumed the deposit responsibili-ty as a custodian for the DO, the deficit can onlybe cleared by treating the lost food stamp(s) as aloss of funds on the part of the commissaryofficer in accordance with chapter 06 of thisVolume. The commissary officer must eitherrecover the lost food stamps, request relief ofliability, or consider the lost stamp(s) a loss ofcommissary receipts (operating funds). The DOshall prepare a reverse DD Form 1131, CollectionVoucher citing the same accounting classificationas the stamps were originally collected into. In-clude on the DD Form 1131 an explanation tothe effect that: the FRB has claimed one or moreof the food stamps were not included in thedeposited package and that there was no evi-dence the package had been tampered with; orfood stamps were not received by the FRB. Acopy of the DD Form 1131 shall be given to thecommissary officer. The reverse DD Form 1131shall be used to clear the deficit from the DO’saccountability only after the loss of funds hasbeen properly reconciled according to chapter 06of this Volume. If the DO has assumed thedeposit responsibility, the deficit can only becleared by treating the lost food stamp(s) as aloss of funds on the part of the DO. Lost foodstamps are considered a physical loss and shallbe processed as prescribed in chapter 06 of thisVolume.

050204. Foreign Currency Deposits. See chap-ter 13 of this Volume.

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050205. Reporting Large Deposits. To permitthe Treasury to manage its balances at each FRB,DOs depositing a single check totaling $50million or more, or several checks of a similarnature (e.g., 25 checks from vendors totaling $50million or more), excluding all Treasury checks,shall notify the Treasury on the same day thedeposit is made. The report can be made bytelephone or by facsimile transmission (FAX).The commercial phone number for reportingdeposits to the Treasury is (202) 208-1500 or FTS268-1500. The FAX number for the Treasury iscommercial (202) 208-1633 or FTS 268-1633. Thereport shall state as a minimum: the name of theComponent (e.g. Air Force) and DSSN; theamount of the deposit; and the name and loca-tion of the depositary. After the deposit ismade, a memorandum for the record shall beprepared showing the above information andshall be filed with the DO’s monthly retainedfinancial records.

050206. Reporting Large Fedwire DepositSystem (FDS) Deposits. The Treasury is solelyresponsible for managing the Federal Govern-ment’s daily cash position. Deposit transactionsaffecting the cash position shall be made knownto Treasury in advance of the time of actualdeposit. DOs shall give Treasury 2 days’ ad-vance notice for deposits that are $50 million ormore in a single transaction, or in multipletransactions of a common nature that will bedeposited via the FDS. If actual data is notavailable, an estimate is considered appropriate.The following information should be provided:the name of the Component (e.g. Army) andDSSN; the DO’s name and telephone number;the date of the deposit; the amount of the depos-it ($00.00); a brief description of the transaction;the appropriation account symbol credited; andthe depositary name and location. The aboveinformation shall be transmitted via FAX (202)208-1633 or (202) 208-1820 to the Cash and DebtManagement Branch, Financial ManagementService, or by telephone to (202) 208-1771.

050207. Sorting and Listing of InstrumentsDeposited

A. General Depositaries. Checksdeposited with general depositaries need not besorted, but shall be accompanied by an addingmachine tape or other listing, unless other ar-rangements have been made with the depositary.

NOTE: As explained in the paragraph 050202.Aabove, all DOs in the United States (and activi-ties authorized to deposit to the account of a DOin the United States) shall deposit Treasurychecks in the sum of $5,000 or more with thenearest FRB or branch.

B. Federal Reserve Banks

1. Check Deposits. Checksdeposited with an FRB or branch need not besorted, but shall be accompanied by an addingmachine tape or other listing showing theamount of each check and the total amount ofthe deposit. The checks, with supporting docu-mentation, shall be delivered to the FRB separatefrom any cash which the DO may also be depos-iting with the FRB that same day.

2. Cash Deposits. Deposits ofcash shall be made on a separate SF 215. Allcurrency shall be sorted by denomination, faceand top up, and deposited in full packages (100notes) of each denomination; $1, $2, $5, $10, $20,$50, and $100. Partial packages shall be pre-pared for each denomination that does not makea full package. Each package (full or partial)shall be secured with a non-denominationalstrap. The DO can obtain these straps from acommercial supplier. The total dollar amountcontained in each package of currency and theDSSN shall be legibly indicated on each non-de-nominational strap. Coins shall be rolled when-ever possible. The SF 215 shall be accompaniedby an adding machine tape or other listingreflecting, by denomination, the total of currencyand coin being deposited.

050208. Endorsement of Negotiable Instruments

A. Area for Endorsements. With theenactment of the Expedited Funds AvailabilityAct on September 1, 1988, (reference (ac)), re-strictions were established for placement ofpayee endorsements. Negotiable instrumentsshall be endorsed on the back of the instrumentin the 1 and 1/2 inch space along the "trailingedge." When viewing the face (front) of a check,the trailing edge is the left hand edge. Normal-ly, the endorsement will consist of the name ofthe payee and other identifying informationrequired by the activity cashing the check.When the DO is preparing checks made payableto the DoD, a DoD Component, another Govern-

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ment agency, or the DO for deposit, the endorse-ment stamp required by paragraphs 050208.C or050208.D below shall appear in this space. Whenmultiple endorsements occur (or the space isused by a qualified endorsement such as forchecks endorsed over to the DO by the payee)and the DO’s endorsement will require spacebeyond the first 1 1/2 inches from the trailingedge, the DO’s endorsement shall use the as-signed space for subsequent endorsers (the backof the check in the upper right hand corner, nomore than 3 inches from the right hand edge(leading edge) of the check). Do not refuse acheck if the area assigned for the bank of firstendorsement has been used. Such checks areacceptable but will not be processed by thebanking system in the prescribed time framesunder reference (ac), which could hamper collec-tion action. Blue or black ink is preferable forendorsements.

B. Endorsement Statement. Thefollowing endorsements for negotiable instru-ments are minimum requirements. Activitieswith stamps containing additional informationmay use them so long as the endorsement can becontained within the 1 1/2 inch area assigned forpayee endorsers. Treasury has expanded theDSSN number for the disbursing or collectingofficial’s endorsement to a Ca$h-Link Identifica-tion Number (CIN) which includes four zeroes,the DSSN, a hyphen, and a check digit whendepositing to an FRB or branch. The CIN iscalculated as explained in table 5-1. Figures 5-1through 5-3 are examples of endorsements onnegotiable instruments received directly by DOs.To eliminate separate endorsements by collectingofficials and DOs, collecting officials shall en-dorse negotiable instruments as shown in figures5-4 through 5-6.

C. Endorsements on NegotiableInstruments Deposited With an FRB or Branch.DOs depositing directly with an FRB may func-tion as the bank of first deposit on behalf of theFRB. Prior FRB approval must be obtained fromthe FRB before this activity is begun. Since littleadvantage is gained by the DO’s assuming thisresponsibility, DOs shall advise the servicingDFAS Center if an FRB or the Treasury requeststhat they function as a bank of first deposit. Allchecks, drafts, and money orders in payment ofan obligation due the United States, regardless ofthe payee to which drawn (including the Treas-

ury, the DoD, and any officer of the Govern-ment), shall be endorsed on the back of theinstrument in the 1 and 1/2 inch space along thetrailing edge (see figures 5-1 and 5-4). The nine-digit number is the disbursing office’s CIN.Agencies may use a stamp, or insert the CIN byhand. The date may be filled in either manuallyor mechanically with the date on which thedeposit is made. This date shall correspond withthe bank’s business day as explained in para-graph 050201 of this section.

D. Endorsements on NegotiableInstruments Deposited With a General Deposi-tary. All negotiable instruments in payment ofan obligation due the United States, regardless ofthe payee to which drawn shall be endorsed onthe back of the instrument in the 1 and 1/2 inchspace along the trailing edge (see figures 5-2 and5-5). The blank following "U.S." shall contain theComponent name (i.e. Army, Navy, Air Force,Marine Corps). The blank following "DSSN"shall contain the four-digit disbursing activityDSSN which may be entered manually, mechani-cally, or be included as a part of the stamp itself.The blank following "Date" may be filled ineither manually or mechanically with the date onwhich the deposit is made. This date shallcorrespond with the bank’s business day asexplained in paragraph 050201 of this section.

E. Conditional Endorsements. Donot accept checks with conditional endorsementssuch as payment in full notations, when lessthan the total amount due the United States ispaid. Return these checks to the drawers andadvise them that the DoD cannot legally acceptthem.

050209. Record of Negotiable Instruments De-posited. DOs shall keep a complete descriptiverecord of all negotiable instruments mailed orpresented to depositaries. This record may bephotocopy or microfilm records of both sides ofthe instruments if the source of the instrument isshown. Where photocopying or microfilmingfacilities are not available, the record shall be atyped or written list containing the: source of theinstrument; name of the financial institution onwhich drawn; type of instrument; serial number;payee; maker; endorser (name of person fromwhom received if other than drawer); datedrawn; and amount. Copies of collection vouch-ers or other documents that show the same data

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aforementioned may be used as the record ofinstruments. If an item is lost in banking chan-nels, the DO may be held pecuniarily liable if themaker of the check cannot be identified in orderto contact that person for a replacement. There-fore, photocopied, microfilmed, or prepared listsof instruments deposited shall be kept in activefiles until receipt of the deposit is acknowledged.They may then be filed as supporting documentsto the retained copy of the SF 215 and the SF1219 which covers the period in which thedeposits were made.

050210. Lost Negotiable Instruments. When anegotiable instrument is lost, whether before orafter deposit, the DO shall adjust the effectedaccounts and immediately request that the makerof the instrument stop payment and replace itwith a new check or other form of payment.

050211. Disposition of Funds on Transfer orReassignment Without Relief. Funds in thepossession of a DO transferred or reassignedwithout being relieved by another DO shall bedeposited prior to transfer or reassignment. Allreceipts for cash funds held by deputies, agents,and/or cashiers, including imprest funds andchange funds, shall be redeemed and the fundsincluded in the final deposit. Each deposit madeduring the period, including the final deposit,shall be reported on the SF 1219 whether or notan acknowledged copy of the SF 215 is receivedprior to transfer or reassignment.

0503 DEPOSIT TRANSACTIONS

050301. SF 215, Deposit Ticket

A. General. Deposits shall be accom-panied by an SF 215 prepared by the DO inquintuplicate. The SF 215 is designed to beprocessed on optical character recognition equip-ment; therefore, it is essential that the followingrequirements be strictly adhered to. Typing inblocks two, three, four, and five (memorandumcopy) must be single-spaced horizontally andtyped with certain fonts. Typeovers, erasures,and other corrections cannot be made to entriesin these blocks. The SF 215 shall be typed withAmerican National Standards Institute OpticalCharacter Recognition A font (ANSI OCR-A) 10-pitch type. If an ANSI OCR-A is not available,PICA, 10-pitch should be used. An undesirable,but acceptable type font is ELITE, 12-pitch.

Specialty type such as Adjutant, Advocate,Artisan, Courier, Delegate, Gothic, Italic, Scribe,Script, etc., are not acceptable. An example of SF215 is shown as figure 5-7. The SF 215 shall beprepared as described below:

1. Deposit Number - Block (1).Each SF 215 contains a preprinted six-digit de-posit number used by Treasury’s central account-ing and reporting systems as the basis for gene-rating audit and reconciliation reports for depos-itor agencies. The preprinted number shall notbe altered, typed over, or changed in any man-ner. Although prenumbered, it is not necessaryto account for voided or spoiled forms.

2. Date Presented or Mailed toBank - Block (2). Type the date that the docu-ment is either mailed to an FRB or branch or, ifdelivered to a general depositary, the bankingbusiness date of the depositary at time of presen-tation. The date shall consist of 2-digit singlespaced groups in month, day, and year order;separated by hyphens and zero-filled for singledigit dates.

3. Eight-Digit Agency Account-ing Station Code or Four-Digit Disbursing OfficeSymbol - Block (3). Type the nine-digit CIN fordeposits to an FRB or branch, or the four-digitDSSN for deposits to general depositaries. En-tries shall be left justified and single spaced.

4. Amount - Block (4). Type thetotal amount of the deposit, including cents.Normal punctuation of commas and decimalpoints shall be used, however, dollar and centsigns shall be omitted.

5. Date Confirmed by Bank -Block (5) (Memorandum Copy). Leave blank.To be completed after confirmed copy is receivedfrom the depositary.

6. Agency Use - Block (6). Block6 may be used to enter descriptive date regard-ing the deposit such as: "Prepared by ";"Verified by "; and "Deposited by ";with the applicable initials of the person whoperformed these tasks. (If a commissary deposit,the commissary store number and location shallbe entered in this block. Also, if the deposit ismade with a branch bank, the name and locationof the branch shall be entered in this block.)

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7. Name and Address of Deposi-tary - Block (7). Type the name and address ofthe depositary to which the SF 215 is mailed orpresented.

8. Depositary Certification -Block (8). Leave blank. The depositary willcomplete this block.

9. Depositors Title, Departmentor Agency and Address - Block (9). Type thecomplete mailing address of the disbursingactivity in this block.

B. Distribution and Disposition. Theoriginal, depositary, and confirmed copies of theSF 215 shall be delivered or submitted to thedepositary with the funds/instruments deposit-ed. The DO shall retain the memorandum andagency copies in a suspense file to assure that alldeposits are in fact confirmed by the depositary.The DO shall take follow-up action on uncon-firmed deposits as prescribed in paragraph050403 below. When the confirmed copy is re-ceived from the depositary, the date confirmedshall be transcribed to the agency copy. Basedon the specific requirements of the servicingDFAS Center or FIPC, the confirmed copy shallbe submitted as part of the financial reports forthat month. In those instances where a depositis not confirmed in the same month as mailed,the servicing DFAS Center or FIPC may requirethe DO to submit the memorandum copy insupport of the reported deposit activity for thatmonth and to submit the confirmed copy withthe financial reports for the month in which theconfirmed copy is received. NOTE: When adeposit is presented or mailed to a depositaryand the DO receives the confirmed copy of theSF 215 in the same month (as presented ormailed), only the confirmed copy is required tobe submitted with the monthly financial reports.The agency copy is always retained by the DO aspart of the retained financial records. The sumof all deposits presented or mailed to a deposi-tary shall be reported in Column (2), Section II,Part B of the SF 1219 for the month in which thedeposit was presented or mailed.

C. Accounting for Deposits. Afternetting out all the SFs 5515 (except for EFT SFs5515) to be accounted for in the current businessday, enter the total of all the deposits to beaccounted for during the business day (including

SFs 215 received from a depositary to adjust adeposit) on line 4.2A of the DD Form 2657. Atthe end of the accounting period (month), thememorandum or confirmed copies of each SF215 (and SFs 5515, including EFT SFs 5515)applicable to the current accounting period(only) are used to prepare the detailed depositactivity report to support of the SF 1219. Thetotal of the detailed deposit activity report mustagree with the total reported on line 4.2 on theface of the SF 1219 and with the total reported inColumn (5), Section II, Part B, on the reverse ofthe SF 1219.

050302. SF 5515, Debit Voucher

A. General. When a check is re-turned unpaid to the depositary with which thecheck was originally deposited, the depositarymay prepare and execute an SF 5515 to chargethe depositing DSSN. The depositary may alsoprepare an SF 5515 charging the depositingDSSN whenever a check is lost after deposit.SFs 5515 may also be issued by depositaries andby the Treasury to establish other valid chargesagainst a DO’s account. Such charges includeexchange fees and other collection chargesassessed in connection with foreign instrumentsdeposited. The DO shall immediately record allSFs 5515 received in the DD Form 2657. The SFs5515 shall be included in the SF 1219 for themonth in which received.

B. Action by the DO

1. Non-tactical DisbursingActivities. For SFs 5515 received in connectionwith returned unpaid checks, the DO shall takeaction as prescribed in chapter 04 of this Volumefor dishonored checks. For SFs 5515 received inconnection with checks lost after deposit, the DOshall take action as indicated in paragraph050210 of this chapter. New checks receivedpursuant to action taken by the DO shall beprocessed as a new deposit. Charges for han-dling foreign checks shall be processed as pre-scribed in chapter 13 of this Volume.

2. Tactical Disbursing Activities.DOs receiving SFs 5515 shall comply with theabove provisions whenever any one of thefollowing conditions exist: the deposit (whichincluded the lost or dishonored check) was madeduring the incumbency of the current DO; the

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deposit (which included the lost or dishonoredcheck) was made during the incumbency of aDO whose account is being subjected to the 90-day local retention period; or, the maker orendorser of the lost or dishonored check islocally available for collection action. If none ofthe foregoing conditions apply, the current DOshall forward the SF 5515 by cover letter to theactivity designated to settle the former DO’saccount. A copy of the cover letter shall be sentto the issuing depositary. In addition to the SF5515, the letter shall contain either the originaldishonored check as returned by the depositaryor in the case of lost checks, a copy of the rele-vant abstract from the listing of instrumentsdeposited. In all cases, the cover letter shallcontain the most recent information concerningthe present location and status of the maker orendorser of the check in question.

C. Special Arrangement With Deposi-tary. The DO and the depositary may enter intoa special arrangement whereby unpaid checkswill be automatically returned directly to the DOto be replaced by new checks. Under such anarrangement, the depositary would not issue anSF 5515 unless the unpaid checks were notreplaced within an agreed period of time.

D. Distribution. The SF 5515 is afour-part document. Two copies are retained bythe depositary. The memorandum and theconfirmed copies are forwarded to the DO. TheDO shall forward the confirmed copy in supportof the monthly financial reports. The memoran-dum copy shall be retained with the DO’s re-tained financial records. An example of SF 5515is shown as figure 5-8.

E. Accounting. SFs 5515 are account-ed for as negative deposits. As noted in para-graph 050301.C above, all SFs 5515 (except forEFT SFs 5515) to be accounted for in the currentbusiness day are netted against all deposits to beaccounted for during the business day, and thetotal recorded on line 4.2A of the DD Form 2657.EFT SFs 5515 are recorded on line 4.2B. At theend of the accounting period (month), the mem-orandum or confirmed copies of each SF 5515(including EFT SFs 5515) and each SF 215 applic-able to the current accounting period (only) areused to prepare the detailed deposit activityreport to support Section II, Part B of the SF1219. The total of the detailed deposit activity

report must agree with the total reported on line4.2 on the face of the SF 1219 and with the totalreported in Column (5) Section II, Part B, on thereverse of the SF 1219.

0504 DEPOSIT RECONCILIATION

050401. General. All DOs are required toreport deposit activity in connection with theirfinancial reports. NOTE: Until a standarddeposit reporting and reconciliation system isimplemented, each disbursing office shall contin-ue to prepare and submit the detailed depositactivity report formerly required by the respec-tive Component. For example: Army disbursingoffices shall continue to report SF 215 and SF5515 information in the Data Ele-ment/Accounting Reporting System; Air Forcedisbursing offices shall continue to use theDeposits in Transit System (6J record); and Navyand Marine Corps disbursing offices shall contin-ue to prepare and submit the monthly Scheduleof Deposit Activity as prescribed in paragraph050417 of this section. These inputs are ulti-mately provided to the Treasury, who alsoreceives detailed reports from each depositary ofall deposits received and all SFs 5515 issued.Monthly, the Treasury compares the depositsand debit vouchers reported by DOs on state-ments of accountability to the deposits and debitvouchers reported through the banking system.When the Treasury is unable to reconcile theinformation contained in the two reportingsystems, a statement of differences will be for-warded to the applicable DFAS Center for recon-ciliation. All differences which have not beenreconciled after 6 months from the date of initialreporting are automatically charged back to theDSSN by the Treasury as a credit or debit toBudget Clearing Account (Deposits) **F3878.This action constitutes transfer to the administra-tive accounts of the DO (i.e., transfers liabilityfor the unreconciled difference to the DO).Therefore, it is imperative that DOs promptlyand properly report all SFs 215 and SFs 5515.Differences occur when: a deposit that wasmailed was not received by the depositary (e.g.,a deposit delayed or lost in transit); the DO orthe depositary fail to report an SF 215 or SF5515; the DO reports an SF 215 or SF 5515 num-ber, date, DSSN, or amount incorrectly on thedetailed deposit activity report; or the depositaryreports an SF 215 or SF 5515 number, date,DSSN, or amount incorrectly to Treasury. Once

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an SF 215 or SF 5515 has been reported, thedocuments cannot be changed, corrected, orreversed. Any differences shall be correctedthrough the reconciliation and/or Budget Clear-ing Account (Deposits), **F3878, process. Ag-gressive action must be taken to clear the charg-es and credits entered in this account as rapidlyas possible (that is, the account must be returnedto a zero balance as rapidly as possible). Trans-actions in this account must not be allowed tobecome stale or unidentifiable. An unidentifiablebalance may result in a DO loss of funds andassociated liability. To maintain control, eithera manual or mechanized subsidiary record mustbe maintained of each entry into **F3878 thatmakes up the current cumulative balance of theaccount. The DO or primary deputy shall re-view the balance of account **F3878 at least onceeach month to assure all necessary actions arebeing taken to clear these balances. Also, eachtime there is a change of DOs, balances in thisaccount shall be validated by the incoming DO.If the departing DO cannot provide the incum-bent DO with documentation supporting the**F3878 items, the departing DO shall process allunsupported items as a loss of funds as pre-scribed in chapter 06 of this Volume. The DOshall certify the balance of this account quarterlyto the servicing DFAS Center.

050402. Deposits Not Reported by DOs. If aDO fails to include a deposit transaction on theSF 1219 (and the detailed deposit report) but thedeposit is reported to Treasury by the depos-itary, the deposit will appear on the monthlystatement of differences from the Treasury. Inaddition, failure to report a deposit on the SF1219 (or detailed deposit report) should create ashortage of funds unless the DO also failed torecord collection of a receivable. Proper balanc-ing procedures will not allow this situation tooccur. Correct the discrepancy by processing thecollection and reporting both the collection andthe deposit on the SF 1219. If the discrepancy isnot corrected and the deposit reported by theDO within 6 months from the date of the origi-nal transaction (deposit), Treasury will credit**F3878 for the amount of the deposit. To cor-rect the discrepancy after Treasury has credited**F3878, prepare an SF 1081 crediting the appro-priation that should have been credited when thecollection was received and charging **F3878. Ifthe collection was for a receivable on the SF 1219that does not involve an appropriation, the SF

1081 will be a one-sided transaction charging**F3878. The offsetting entry will be a decreaseto the receivable. In either of these transactions,**F3878 will be zeroed insofar as this particulardeposit is concerned. NOTE: Once Treasuryhas credited **F3878 for an unreported deposit,the deposit cannot be reported on the SF 1219.To do so will create another deposit discrepancybecause Treasury will not receive a matching de-posit report from the depositary.

050403. Deposits Not Reported by Depositaries.SFs 215 which have been reported by DOs butnot by the depositary will also appear on themonthly statement of differences from the Treas-ury. If no confirmation copy is received fromthe depositary within a reasonable period oftime, the DO shall initiate follow-up action withthe depositary to determine the status of thedeposit. A reasonable period of time is consid-ered to be the normal mailing time from the datemailed to the depositary until the date a confir-mation copy is received based on past experi-ence. For tactical DOs, consideration should alsobe given to unit’s movement schedule andlocation when the deposit was mailed. In anyevent, follow-up action shall be initiated within45 days from the date the deposit was mailed.Follow-up requests to the depositary shouldinclude a copy of the SF(s) 215 and a descriptionor copies of the instruments included in thedeposit. The depositary should provide a confir-mation copy or confirmation information to theDO in response to the follow-up memorandum.A depositary response acknowledging receipt ofthe deposit may be used as the confirmationcopy if the actual confirmation copy cannot beprovided. If the depositary had neglected toreport the deposit and reports it within 6 monthsfrom the date of the deposit, no further action bythe DO is required. If the deposit is not report-ed by the depositary within 6 months from thedate of the deposit, Treasury will charge **F3878for the amount of the deposit. If the depositaryhad neglected to report the deposit to the Treas-ury and reports the deposit after 6 months fromthe date of the deposit, Treasury will not findthe matching report from the DO because it wasproperly reported 6 months earlier and willcredit **F3878 after 6 months. Since this actionwill bring **F3878 back to a zero balance (for thisdeposit), no further action by the DO is required.If the follow-up action does not result in confir-mation of the deposit or the depositary notifies

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the DO that the deposit was not received, thedeposit transaction shall be reversed in the DO’scurrent business. To reverse the transaction, theDO shall prepare and process a one-sided SF1081 crediting **F3878. The offsetting entry is aloss of funds in the DO’s accountability. A copyof the follow-up memorandum to the depositaryand the depositary’s response shall be attachedas supporting documents to the SF 1081. TheTreasury’s charge to **F3878 after the 6 monthperiod will offset this credit and balance the**F3878 account for this deposit. The loss offunds shall be reported and processed as pre-scribed in chapter 06 of this Volume. If negotia-ble instruments were included in the lost depos-it, the action prescribed in paragraph 050210 ofthis chapter shall be taken for those instruments.

050404. Deposit Number Reported Incorrectly.A deposit discrepancy can be caused by errone-ous reporting of the SF 215 number by either theDO or the depositary. In most instances, thisdiscrepancy should be detected upon receipt ofthe monthly statement of differences. Since theSF 215 cannot be recalled, corrected, or reversed,both a charge and a credit to **F3878 resultbecause Treasury cannot find a match betweenthe SF 215 numbers as reported. No adjustmentaction is required by the DO since the chargeand credit to **F3878 offset each other.

050405. Deposit Date Reported Incorrectly. Aswith SF 215 number discrepancies, differentrecording of the SF 215 date by the DO and thedepositary will result in a discrepancy on themonthly statement of differences from Treasuryand eventually in offsetting charges and creditsto **F3878. An SF 215 date discrepancy is usual-ly caused when a depositary makes a unilateralchange to the SF 215 date based on the date ofreceipt (a deposit that was mailed). As with SF215 number discrepancies, no adjustment actionis necessary since the charge and credit to**F3878 offset each other.

050406. Deposit Amount Reported Incorrectly.When an SF 215 amount is reported differentlyby the DO and the depositary, the discrepancywill appear on the monthly statement of differ-ences from Treasury and Treasury will (after 6months) issue a charge or credit to **F3878representing the difference between the tworeports. If the amount reported by the deposi-tary is larger than the amount reported by the

DO, a credit will be received. If the amountreported by the depositary is smaller, a chargewill be received. If the depositary made theerror, contact the depositary and request acorrection of the reported deposit amount. Acorrection by the depositary will result in anoffsetting charge or credit (as applicable) to**F3878. If the DO reported the amount incor-rectly on the SF 1219, prepare and process an SF1081 offsetting the charge or credit (as applica-ble) to **F3878. A credit to **F3878 usuallyindicates an understatement of the depositamount on the SF 1219. A charge to **F3878usually indicates an overstatement of the depositamount on the SF 1219. Record an SF 1081crediting **F3878 as a refund on line 4.1B of theDD Form 2657 and a charge to the appropriationthat was over-collected or as an increase to thereceivable that was over-credited. Record an SF1081 charging **F3878 as a gross disbursementon line 4.1A of the DD Form 2657 and as a creditto the appropriation that was under-collected oras a decrease to the receivable that was under-credited.

050407. Over and Understated Deposits.Another type of reconciliation becomes necessarywhen an SF 215 amount is over or understated.Normally, the depositary will confirm the depos-it as presented and immediately issue an SF 5515for the amount of the overage or an SF 215 forthe amount of the shortage. In either of thesesituations, the DO should have detected anoverage of funds for an overstated deposit or ashortage of funds for an understated depositupon the first balancing after the deposit wasrecorded and presented or mailed to the deposi-tary. If actions required by chapter 06 of thisVolume have been taken to record the overageor shortage of funds, receipt of the additionaladjusting SF 215 or SF 5515 from the depositarywill enable a more rapid settlement of the over-age or shortage in the DO’s accountability. If anoverage or shortage of funds was not detected,receipt and recording of the additional adjustingSF 215 or SF 5515 will create an overage orshortage, in which case action shall still be takento process the overage or shortage as prescribedin chapter 06 of this Volume.

050408. Depositing DSSN Reported Incorrectly.When a DO inserts an erroneous DSSN on an SF215, two mismatches will occur at Treasury. Thedepositing DO will report the correct DSSN on

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the SF 1219, but the depositary will report theDSSN shown on the SF 215. Neither of thesereported deposits will match and both transac-tions will appear on the monthly statement ofdifferences from Treasury for the DSSNs. TheDO (whose DSSN was cited on the SF 215)receiving the statement of differences will haveno record of the deposit since it was made byanother DSSN and erroneously cited his or herDSSN. After the 6 month period, Treasury willissue the DSSN shown on the SF 215 a credit to**F3878 and will also issue the DSSN of the DOwho reported the deposit on the SF 1219 acharge to **F3878. No action by the DO whoseDSSN was erroneously cited is required. Uponreceipt of the monthly statement of differences,the DO who made the deposit shall verify thenature of the error and shall contact the DOwhose DSSN was erroneously cited on the SF215 and advise that the deposit discrepancy wasinadvertently made and will be corrected as soonas possible. To correct the error, the depositingDO shall prepare a new SF 215 citing the properDSSN and an SF 5515 citing the same (errone-ous) DSSN cited on the original deposit. Thesame date and amount reported on the originalSF 215 shall be used on these documents topreclude another 6-month wait before the charg-es and credits to **F3878 are received. The DOshall ask the depositary to process both docu-ments. Normally, the depositary will not objectsince the documents net to zero. At month end,the depositing DO shall report both the SF 215and the SF 5515 under his or her DSSN (eventhough the SF 5515 cites an erroneous DSSN) onthe detailed deposit report and the SF 1219. TheSF 5515 will appear on the monthly statement ofdifferences because there will be no matchingreport from the DO of that DSSN. After the 6month period, Treasury will issue the DSSNshown on the SF 5515 a charge to **F3878. Thischarge will offset the credit issued for the origi-nal SF 215 which was not reported by the DSSNerroneously cited on the SF 215. Treasury willalso issue the DSSN reporting the SF 5515 acredit to **F3878 because there will be no match-ing report from the depositary for that DSSN.This credit to **F3878 will offset the charge forthe original deposit which was reported by thedepositing DSSN but could not be matchedbecause the SF 215 cited an erroneous DSSN.

050409. Debit Vouchers Not Reported by DOs.SFs 5515 issued by depositaries are automatically

reported to the Treasury. The depositary for-wards the memorandum and confirmed copiesof the SF 5515 to the DO for reporting. If the SF5515 should have been charged to a differentDSSN, follow the adjustment procedure inparagraph 050415. Unless the DSSN appearingon the SF 5515 is not the DSSN of the DO receiv-ing the document, the SF 5515 shall be recordedand reported upon receipt. This requirement torecord the SF 5515 applies regardless of whetheror not the SF 5515 is deemed erroneous or if thereason given for the charge needs further clarifi-cation. If the DSSN cited on the SF 5515 is notthe DSSN of the receiving disbursing office, thedocument shall be forwarded to the disbursingoffice whose DSSN is on the document or re-turned to the depositary if the identity andlocation of the disbursing office cannot be deter-mined. If a DO fails to report an SF 5515 on theSF 1219 but the SF 5515 is reported to Treasuryby the depositary, the SF 5515 will appear on themonthly statement of differences from the Treas-ury. If the SF 5515 is not reported by the DOwithin 6 months from the date of the originaltransaction (SF 5515), Treasury will charge**F3878 for the amount of the SF 5515. Tocorrect the discrepancy after Treasury hascharged **F3878, prepare a one-sided SF 1081crediting **F3878. Record the SF 1081 on line4.1B of the DD Form 2657 and as an increase toline 7.2B or, if appropriate, to line 7.4 as a dis-honored check. If the dishonored check was re-ceived as a collection, process a negative DDForm 1131 to reverse the earlier collection andprovide a copy of the voucher to the collectingofficer for appropriate collection action on thedishonored check. NOTE: Once Treasury hascharged **F3878 for an unreported SF 5515, theSF 5515 cannot be reported on the SF 1219. Todo so will create another discrepancy becauseTreasury will not receive a matching SF 5515report from the depositary.

050410. Debit Vouchers Not Reported byDepositaries. SFs 5515 which have been reportedby DOs but not by the depositary will appear onthe monthly statement of differences from theTreasury. If no confirmation copy is receivedfrom the depositary within a reasonable periodof time, the DO shall initiate follow-up actionwith the depositary to determine the status ofthe SF 5515. Follow-up requests to the deposi-tary should include a copy of the SF(s) 5515 anda description of the purpose or copies of the

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documents included with the SF 5515. Thedepositary should provide a confirmation copyor confirmation information to the DO in re-sponse to the follow-up memorandum. If con-firmed, the depositary response may be used asthe confirmation copy if the actual confirmationcopy cannot be provided. If the depositary hadneglected to report the SF 5515 and reports itwithin 6 months from the date of the SF 5515, nofurther action by the DO is required. If the SF5515 is not reported by the depositary within 6months from the date of the SF 5515, Treasurywill credit **F3878 for the amount of the SF 5515.If the depositary had neglected to report the SF5515 and reports it after 6 months from the dateof the SF 5515, Treasury will not find the match-ing report from the DO because it was properlyreported 6 months earlier and will charge**F3878. Since this action will bring **F3878 backto a zero balance (for this SF 5515), no furtheraction by the DO is required.

050411. Debit Voucher Number Reported Incor-rectly. A deposit discrepancy can be caused byerroneous reporting of the SF 5515 number byeither the DO or the depositary. In most instanc-es, this discrepancy should be detected uponreceipt of the monthly statement of differencesfrom Treasury. Since the SF 5515 cannot berecalled, corrected, or reversed, both a chargeand a credit to **F3878 will result because Treas-ury will not find a match between the SF 5515numbers reported. No adjustment action isrequired since the charge and credit to **F3878offset each other.

050412. Debit Voucher Date Reported Incorrect-ly. As with SF 5515 number discrepancies,different recording of the SF 5515 date by theDO and the depositary will result in a discrepan-cy on the monthly statement of differences fromTreasury and eventually in offsetting chargesand credits to **F3878. No adjustment action isnecessary since the charge and credit offset eachother.

050413. Debit Voucher Amount Reported Incor-rectly. When an SF 5515 amount is reporteddifferently by the DO and the depositary, thediscrepancy will appear on the monthly state-ment of differences and Treasury will (after 6months) issue a charge or credit to **F3878representing the difference between the tworeports. If the amount reported by the deposi-

tary is larger than the amount reported by theDO, a charge will be received. If the amountreported by the depositary is smaller, a creditwill be received. If the depositary made theerror, contact the depositary and request acorrection of the reported amount. A correctionby the depositary will result in an offsettingcharge or credit (as applicable) to **F3878 and nofurther action is required. If the DO reportedthe amount incorrectly on the SF 1219, prepareand process a one-sided SF 1081 offsetting thecharge or credit (as applicable) to **F3878. ATreasury charge to **F3878 usually indicates thatthe DO understated the reduction of deposits online 4.2A of the DD Form 2657. A Treasurycredit to **F3878 usually indicates reduction ofdeposits was over-stated.

A. If the initial recording of the SF5515 was to increase line 7.2B of the DD Form2657, and Treasury charges **F3878, record theone-sided SF 1081 crediting **F3878 as an in-crease to line 4.1B and an increase to line 7.2B.If Treasury credits **F3878, record the one-sidedSF 1081 charging **F3878 as an increase to line4.1A and a decrease to line 7.2B.

B. If the initial recording of the SF5515 was to reduce a collection previously madeto an appropriation, and Treasury charges**F3878, prepare a two-sided SF 1081 crediting**F3878 and charging the appropriation or fundinitially credited and record the SF 1081 as adecrease to line 4.1E and an increase to line 4.1B.If Treasury credits **F3878, prepare a two-sidedSF 1081 crediting the appropriation or fundinitially credited and charging **F3878. Recordthe SF 1081 as an increase to line 4.1A and anincrease to line 4.1E.

050414. Debit Voucher DSSN Reported Incor-rectly by DO. Generally, a DO only preparesSFs 5515 in conjunction with EFT payments.When a DO inserts an erroneous DSSN on an SF5515, two mismatches will occur at Treasury.The preparing DO will report the correct DSSNon the SF 1219, but the depositary will report theDSSN shown on the SF 5515. Neither of thesereported SFs 5515 will match and both trans-actions will appear on the monthly statement ofdifferences from Treasury for the DSSNs. TheDO (whose DSSN was cited on the SF 5515)receiving the statement of differences will haveno record of the transaction since it was made by

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another DSSN and erroneously cited his or herDSSN. After the 6 month period, Treasury willissue the DSSN shown on the SF 5515 a chargeto **F3878 and will also issue the DSSN of theDO who reported the SF 5515 on the SF 1219 acredit to **F3878. No action by the DO whoseDSSN was erroneously cited is required. Uponreceipt of the monthly statement of differences,the DO who made the error shall verify thenature of the error and contact the DO whoseDSSN was cited on the SF 5515 and advise thatthe deposit discrepancy was inadvertently madeand will be corrected as soon as possible. Tocorrect the error, the DO who made the errorshall prepare a new SF 5515 citing the properDSSN and an SF 215 citing the same (erroneous)DSSN cited on the original SF 5515. The samedate and amount reported on the original SF5515 shall be used on these documents to pre-clude another 6-month wait before the chargesand credits to **F3878 are received. The DOshall ask the depositary to process both docu-ments. Normally, the depositary will not objectsince the documents net to zero. At month end,the DO who made the error shall report both theSF 215 and the SF 5515 under his or her DSSN(even though the SF 215 cites an erroneousDSSN) on the detailed deposit report and the SF1219. The SF 215 will appear on the monthlystatement of differences because there will be nomatching report from the DO of that DSSN.After the 6 month period, Treasury will issue theDSSN shown on the SF 215 a credit to **F3878because there will be no matching report fromthe DO of that DSSN. This credit will offset thecharge for the original SF 5515. Treasury willalso issue the DSSN of the DO who reported theSF 215 a charge to **F3878 because there will beno matching report from the depositary for thatDSSN. This charge to **F3878 will offset thecredit for the original SF 5515 which cited theerroneous DSSN.

050415. Debit Vouchers Prepared Incorrectly byDepositaries. If a depositary prepares an SF 5515and charges an incorrect DSSN, the DO whoseDSSN has been charged in error shall, uponreceipt of the SF 5515, prepare an SF 215 to offsetthe debit. The usual copies of the SF 215 and theunpaid check shall be forwarded, to the deposi-tary with an explanation of the action beingtaken, The DO shall report the SF 5515 and theSF 215 in the normal manner on the daily and

monthly statements of accountability and thedetailed deposit activity report.

*050416. Ca$h-Link Agency Access System. TheCa$h-Link Agency Access System was developedby the Treasury Department to assist agencies inreconciling deposit transactions. Use of thesystem allows early access to deposit transactioninformation and gives the DO the opportunity totake immediate action to correct a deposit dis-crepancy (regardless of dollar value) long beforethe six month reconciliation time limit describedabove has elapsed. Deposit transactions reportedby financial institutions and Federal ReserveBanks are available in the system within one ortwo days. Use of the Ca$h-Link Agency AccessSystem is mandatory for all DFAS Centers andtheir DAOs. All DoD Component disbursingactivities are encouraged to apply for the Ca$h-link system if it is available to them. Informa-tion and application forms for the Ca$h-LinkAgency Access System can be obtained from theservicing DFAS Center or the Director, Proce-dures and Guidance Division, DFAS-KC/CBP,1500 E. 95th Street, Kansas City, MO 64197-0001.

050417. Schedule of Deposit Activity. A Sched-ule of Deposit Activity shall be prepared by allNavy and Marine Corps DOs. The primarypurpose of the schedule is to report the detaileddeposit transactions included in line 4.2 of the SF1219. The schedule also serves as a transmittalfor deposit documents and provides a detailedlisting of those which remain unconfirmed,

A. Preparation

1. General. The schedule shallbe prepared in an original and 2 copies. Theoriginal and 1 copy will be sent to the FIPC withthe SF 1219 and one copy will be retained by theDO. Marine Corps DOs shall forward the origi-nal with the financial reports and submit 1 copywith the advance reports.

2. Header Data

a. Organization. Enter thename of the ship or activity to which the DO isassigned.

b. Location. Naval vesselsshould show their homeport. Shore activities

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should show the city and either the state or theforeign country in which they are located.

c. DSSN. Enter the DSSNassigned to the disbursing office.

d. Disbursing Officer. Enterthe name of the DO.

e. Period of Report. Enterthe month and year for which the accompanyingSF 1219 is being submitted.

3. Section 20.0 - Deposits orDebit Vouchers Reported This Month. Alltransactions affecting the balance reported online 4.2 of the current month’s SF 1219 shall belisted in this section.

a. Deposit Tickets. SFs 215shall be reported in the month the deposit is pre-sented or mailed to the bank regardless of themonth the deposit is confirmed by the bank.The data shown must be exactly the same asappears in blocks (l), (2), (4), and (8) of the SF215 and those data elements may not be changedor altered even if they are erroneous. Datesshould be displayed in YYMMDD format. Themonth and year shown in the date presented ormailed column should normally be the same asthe month and year of the report being prepared.However, if the DO or other authorized agentpresented or mailed a deposit in a previousmonth but failed to report that deposit for thatmonth and the deposit was also omitted fromthe total appearing online 4.2 of the SF 1219 forthat month, the deposit should be reported inthe current month. The actual date presented ormailed as shown in block (2) of the SF 215 shallbe shown even if the date is that of the previousmonth. Commissary deposits made on a non-workday which is the last day of the month arean example of such an occurrence. Deposits willalways be shown as positive amounts

b. Debit Vouchers. SFs5515 must be reported in the month they arereceived. An SF 5515 which is charged to aparticular DSSN must be reported by that dis-bursing office even if the SF 5515 is considerederroneous or relates to the DO’s predecessor. Ifbecause of error, the SF 5515 needs to be re-versed, the reversal is accomplished by request-ing the originating activity (bank or the Treas-

ury) to issue an offsetting SF 215. Both theoriginal SF 5515 and the SF 215 are separatetransactions, and both must be reported as theyoccur. SFs 5515 will always be shown as nega-tive amounts. Negative entries are shown byplacing the amount within parentheses. The datashown will be the same as that which appears inblocks (1), (2), and (4) of the SF 5515. Since mostSFs 5515 originate from a bank or the Treasury,they are already confirmed. As such, SFs 5515must be reported in section 20.1. The dateappearing in block (2) of the SF 5515 will beentered in both the “Date Presented or Mailed”and the “Date Confirmed” columns of the sched-ule. The date will be shown in YYMMDDformat. As an exception to this procedure, DOsafloat should forward SFs 5515 relating to prede-cessor accounts to the appropriate FIPC forinclusion in the predecessor’s financial reports.

4. Section 20.1- Reported ThisMonth and Confirmed This Month or Earlier

a. General. Enter all itemsincluded in line 4.2 of the SF 1219 for the currentmonth for which a confirmation document isincluded with the schedule. A confirmationdocument is the green copy (confirmed copy) ofthe SF 215 which has been authenticated by arepresentative of the depositary or the blue copy(confirmed copy) of the SF 5515. Deposits shallbe listed before debit vouchers. Within thesetwo major subdivisions, transactions shall belisted in date presented or mailed sequence.

b. Adjustments. Adjust-ments to deposit activity are accomplished bythe issuance of separate adjusting documents.For example, if a DO overstated the value of anSF 215, the bank should confirm the original SF215 in the amount for which issued and issue anSF 5515 for the amount of the overstatement. Ifthe amount of the SF 215 was less than the valueof the deposit, the bank should issue a second SF215 for the difference. In these examples bothdocuments must be reported by the disbursingoffice. In like manner, if a bank or the Treasuryerroneously charges a DSSN with an SF 5515, theaction is reversed by issuing an SF 215 in thesame amount. Again, each document must bereported by the DO in the month received. Foran unconfirmed deposit which has been deter-mined to be lost in transit, the deposit will beremoved from section 32.0 by reporting the lost

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deposit in section 31.0 as if it was confirmed.The date confirmed will be shown as the firstday of the month for which the schedule is beingprepared. An explanation of the entry must beincluded with the schedule.

5. Line 20.1- Net of 20.1 Items.The net of all items included in section 20.1 willbe shown on line 20.1.

6. Section 20.2 - Deposits Re-ported This Month But Unconfirmed. Thissection will be used to report all items includedin line 4.2 of the SF 1219 for the current monthfor which no confirmation document is includedwith the schedule. Normally, this will consist ofdeposits which have been presented or mailedduring the current month, for which the con-firmed copy of the SF 215 has not been receivedas of the date the report is prepared. SFs 5515will not be shown in this section. Transactionswill be listed in date presented or mailed se-quence. Each entry in this section must be sup-ported by an accompanying white (memoran-dum) copy of the SF 215.

7.Enter the total of20.2.

8.

Line 20.2- Total of 20.2 Items.all items included in section

Line 20.0 - Total ReportedThis Month. Enter the sum of lines 20.1 and20.2. This amount must equal line 4.2 on the SF1219. A solid line will be drawn on the schedulebetween lines 20.0 and 30.0.

9. Line 30.0 - Total UnconfirmedDeposits Brought Forward. Enter the amountshown on line 34.0 of the previous month’sschedule.

10. Section 31.0 - Deposits Re-ported Previous Months. List SFs 215 reportedin a previous month in section 20.2 for which theconfirmed copies (green copies) are now en-closed.

11. Line 31.0 - Total of 31.0 Items.Enter the total of all items included in section31.0.

12. Line 32.0 - Deposits ReportedPrevious Months Not Yet Confirmed. Enter thedifference between lines 30.0 and 31.0.

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13. Section 32.0 - Deposits Re-ported Previous Months Not Yet Confirmed.List all items included in sections 20.2 and 32.0of the previous month’s report which have notbeen listed in section 31.0 for the current month.The total of deposits listed in this ‘section mustequal the total entered on line 32.0.

14. Line 33.0 - Deposits ReportedThis Month Not Confirmed. Enter the amountwhich appears on line 20.2 above.

15. Line 34.0 - Total DepositsReported Which Remain Unconfirmed. Enter thesum of lines 32.0 and 33.0. This amount will beentered on line 30.0 of the next month’s sched-ule.

See figure 5-9.

0505 SHIPMENT OF PUBLIC FUNDS

050501. General

A. Authority. 40 U.S.C. 721 - 726,and 729 (reference (ad)) authorizes the shipmentof valuables. DOs making shipments of itemscovered by its provisions shall follow the ship-ment procedures as described in this section.Shipments are insured under law and no supple-mentary insurance will be obtained.

B. Authorized Purposes. Shipmentsof public funds are authorized for the followingpurposes: deposit of funds to an official checkingaccount; delivery of funds to another DO as anexchange-for-cash check transaction; shipment ofdamaged or mutilated currency; deposit of foodstamps; and obtaining funds from a bank orfrom another DO by exchange of a check forcash.

C. Methods of Shipment. Publicfunds shall be shipped in a manner which willprovide the greatest possible protection againstrisk of loss and destruction of, or damage to, thefunds. Public funds may be shipped by certifiedor registered mail, courier, officer messenger,Government conveyance, railway express, con-tract armored car service, or as cargo via theMilitary Airlift Command’s signature securityservice depending upon availability of means.However, the normal methods of shipment areby registered mail and Military Airlift Command


cargo. Shipment by registered or certified mailis preferred in the case of checks, drafts, moneyorders, etc. Shipment by courier is preferred inthe case of currency and coin. Shipment byGovernment conveyance or railway express shallbe used only in the case of currency or coin ofexcessive weight or bulk. Public funds may alsobe transferred, between DOs afloat using air lift(helicopter) or high-line during underway re-plenishment at sea. In either of these methods,a buoy or other reliable flotation device shall beattached to the container to aid in recovery.

D. Record of Shipment. In additionto accounting documents required in the case oftransfers and deposits of public funds (i.e., SF215) and in order to provide the record requiredby the regulations issued by the Treasury, eachshipment of funds shall be described in detail onthe DD Form 165, Shipment of Funds.

050502. Preparation and Distribution of DDForm 165

A. General. A DD Form 165 isrequired for any shipment containing coin orcurrency regardless of amount. The DD Form165 is not required for shipments for deposit tothe Treasury or to a bank provided the shipmentconsists only of checks and money orders andthe record of instruments deposited prescribedby paragraph 050209 of this chapter is otherwisemaintained. In addition to the retained copy ofthe DD Form 165, the shipping DO shall pre-serve all registry receipts or other carriers’ re-ceipts and any other documents incidental to theshipment until assured that shipment has beencompleted and no claims action will be initiated.

B. Preparation. The DD Form 165shall be prepared in quadruplicate as describedbelow. A properly prepared DD Form 165 isshown as figure 5-10.

1 . The space “To” shall containthe complete mailing address of the consignee(intended recipient). In the case of transfers offunds to another DO, the name of the DO shouldbe included in the mailing address.

2. The space “From” shall con-tain the complete name and mailing address ofthe consignor (DO shipping the funds).

3. The space “Purpose of Shipment” shall describe the purpose of the shipmentsuch as “For deposit to Disbursing Station Sym-bol Number” or "Transfer of funds in exchangefor a U.S. Treasury check".

4. The space for “Number ofContainers” is self-explanatory.

5. The space for “Shipped Via”shall indicate the method of shipment (i.e.,registered mail, courier, messenger, etc.).

6. The space “Mail Receipt No.and Date” shall include the registry number orthe lock and rotary numbers, if any, under whichshipment is made as well as the number of theregistry receipt, or other receipt of the carrier.

7. A complete description of thecurrency and/or coin being shipped shall beshown in the spaces provided by type, denomi-nation, quantity, monetary unit total, rate ofexchange if not U.S. currency/coin, and value inU.S. dollars. Checks and other negotiable instru-ments shall be listed individually on the reverseof the form.

8. The contents of the shipmentshall be personally counted by the DO and oneresponsible witness and placed in the appropri-ate shipping container(s). Both the DO and thewitness shall date and sign the DD Form 165 inthe spaces provided under the certification “Wehave counted, verified and sealed this shipment.”The DO shall be personally responsible for deliv-ery of the shipment to the carrier.

9. The spaces: "This shipmentwas received from shipper and delivered to” and“Delivery date and hour” shall be completed onthe copy to be mailed directly to the consigneeand the copy retained by the shipping officer atthe time of release to the carrier.

10. The portions pertaining toreceipt of the shipment shall be left blank by theshipping DO. The consignee shall complete thisportion of the DD Form 165 upon receipt andverification of the shipment.

C. Distribution. The DD Form 165shall be distributed as follows.

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1. The original and duplicateshall be included with the shipment.

2. A copy shall be forwarded bymail direct to the consignee as a notice of ship-ment when the amount is equal to or greaterthan $10,000.

3. A copy shall be retained bythe shipping officer. This copy shall bear theoriginal signatures of the DO and verifyingwitness and shall be used if necessary to sub-stantiate a claim for loss in shipment.

D. Shipment by Registered Mail or asCargo via the Military Airlift Command. Whenshipment is made by registered mail or as cargovia the Military Airlift Command, the copy ofDD Form 165 forwarded by mail to the consign-ee and the copy retained by the shipping officershall show the registry number and the date theshipment was delivered to the post office orterminal. Whenever feasible, single shipmentsshall be limited to a maximum of $250,000.Registered mail and Military Airlift Commandshipments shall be properly packaged to preventbreakage in transit. Advice as to adequatepackaging can be obtained from military postoffices. The copy of the DD Form 165 retainedby the officer shipping the funds shall be signedby the appropriate postal official in the spacebeneath the block “Delivery Date and Hour.”

E. Shipment by Courier or OfficerMessenger. When shipment is made by courieror officer messenger, the DO making the ship-ment shall enclose the funds in a securely sealedenvelop, money bag, or other suitable containerbearing the name and address of the consignee.Any commissioned or warrant officer of theArmed Forces on active duty or any individualserving as a courier for the Department of Stateis authorized to act as courier for delivery offunds represented by currency, checks, drafts, ormoney orders. The courier shall take all pract-cable precautions for the protection of the ship-ment. The copy of DD Form 165 retained by theofficer shipping the funds shall be signed by thecourier in the space beneath the block “DeliveryDate and Hour” as a receipt for the shipment.When arrangements for the shipment are madethrough a message center, the registry numbershall be inserted on the copy of the DD Form 165to be retained by the shipping officer and the

space below “Delivery Date and Hour” shall besigned by an authorized official of the messagecenter. Upon receipt of the shipment, the con-signee shall sign the original of the DD Form 165in the last signature block after verification of thecontents of the shipment and return it to theshipper as a receipt. The copy shall be signed bythe consignee in the space beneath “DeliveryDate and Hour” and shall be given to the courieras receipt for the shipment. The advance copyproviding notice of shipment shall be annotatedto indicate date of receipt and shall be retainedby the consignee. If the services of an officemessenger are obtained, the messenger shall signthe DD Form 165 in the block for delivery dateand hour.

F. Shipment by Government Convey-ance. When the shipment is of such weight orbulk as to make other methods of shipmentimpracticable, shipment may be made by Gov-ernment conveyance. The DO shall make thenecessary arrangements for the shipment andreceive the bill of lading for the delivery withthe shipment. In all cases, the DO shall bedesignated as the shipper and the consigneeshall be the officer responsible for executing thereceipt for the funds. The DO shall be responsi-ble for direct delivery to the carrier and obtain-ing receipt on a copy of the bill of lading.

G. Shipments by Armored Car Ser-vice

1. General. Shipment of fundsby commercial armored car service is authorizedwhen such service is found to be both consonantwith sound economy and the greatest possibleprotection against risk of loss. The cost of suchhire shall be charged to the operations andmaintenance fund of the activity to which theDO requiring the shipment is attached.

2. Obtaining Funds From Banks.When funds are obtained from a bank other thanan FRB or branch, the DO shall accept custody ofthe funds at the bank and then personally turnthe funds over to the armored car carrier fortransporting. Since FRBs comply with the Treas-ury regulations in making shipments of money,funds may be obtained from an FRB or branchby forwarding an exchange-for-cash check to thebank with instructions for delivery of the funds

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to the armored car carrier in the desired denomi-nations.

050503. Action by Consignee. Upon receipt ofa copy of DD Form 165 as notice of shipment,the consignee (intended recipient or authorizedofficial designated by activity receiving ship-ment) shall make arrangements to receive theshipment. Upon receipt of the shipment, theconsignee shall ensure that the shipment isopened and inspected by one or more responsi-ble employees. The consignee shall sign theoriginal DD Form 165 and return it to the ship-ping officer as a receipt. If shipment was madeby courier, the consignee shall sign and deliverto the courier a copy of the DD Form 165 as anacknowledgment of receipt of the shipment.When the shipment represents funds for deposit,the consignee shall complete the SF 215 andreturn the required copies to the DO. Theconsignee shall immediately advise the shippingofficer of any difference between the amount orquantity indicated on the copy of the DD Form165 and in the actual shipment at the time ofopening. If the shipment fails to arrive in duecourse, the consignee shall immediately notifythe shipping officer, the post office, or office ofother carrier through which delivery would bemade. The consignee shall also immediatelynotify the shipping officer of any damage to theshipment. All findings of the consignee in suchcases shall be a matter of record, subject toinspection in connection with any necessaryinvestigation.

050504. Action by Consignor The consignor(the bank or the DO shipping the money) shallensure that prompt action is taken to trace ashipment of funds for which a receipted DDForm 165 is not received within a reasonabletime. Telephone or message contact with theconsignee shall be initiated in order to insure theconsignee’s compliance with the provisions ofparagraph 050503 above.

050505. Losses in Shipment. Accountability forpublic funds rests with the consignor until theconsignee has received and verified all fundslisted on the DD Form 165. If funds shipped asprescribed in this section are lost, destroyed, ordamaged, the shipping officer shall forward animmediate written report to the Bureau of PublicDebt, Division of Financial Management, Admin-istrative Accounts Branch, Washington, DC

20239. A copy of the report shall be provided tothe consignee and to the servicing DFAS Center.If the loss, destruction, or damage represents avalue equal to or in excess of $10,000, or if delayin reporting is likely to delay the Government inrecovering the value of the shipment, the reportshall be transmitted by message or telegram andpromptly confirmed in writing. The report shallstate the date of shipment; amount and charac-ter of the valuables lost, destroyed, or damaged;name and address of the consignee; method oftransportation, the name of the earner, and thelocation of the office of the carrier from whichshipment was made; registry or other receiptnumber; and cause of the loss, destruction, ordamage, if known. The consignor shall immedi-ately notify the agent in charge of the nearestU.S. Secret Service office, the appropriate investi-gative service, the local post office, or local officeof other carrier. The shipping officer shall alsoplace a tracer on the shipment and take suchother action as may be necessary to facilitaterecovery.

050506. Recovery Action

A. General. Recovery action is pri-marily the responsibility of the officer who is ac-countable for the lost or damaged funds. In thecase of funds for which an exchange-for-cashcheck has been issued, responsibility and ac-countability rests with the bank or DO whoshipped the funds (consignor). However, ac-countability for the check still rests with the DOwho issued the check (consignee) and its valueshall continue to be reported in the SF 1219 asfunds in transit. The consignee should deter-mine what action was taken by the shippingofficer and should monitor the course of investi-gative action taken. In the case of coin or cur-rency lost en route to a depositary, accountabilityrests with the DO who made the shipment fordeposit. It shall be the DO’s responsibility totake the reporting and recovery actions required.In either case, action to report the loss of fundsshall be taken as prescribed in chapter 06 of thisVolume. The DO who shipped the funds shallrecord the value of the lost shipment on line 7.3of the SF 1219 as a loss of funds. If the DO isreassigned before recovery can be effected, therelieving DO shall not receipt for the loss. How-ever, the relieving officer shall be responsible, inconjunction with the designated settlement office,for ensuring that necessary claims are properly

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filed and that the proceeds from the claims areproperly applied in liquidation of the loss.

B. Checks and Money Orders. TheDO shall take action to recover the amount ofthe lost negotiable instruments following theprocedures in paragraph 050210 of this chapter.Since this action should be sufficient to recoupthe full amount of the lost deposit, the claimsdescribed in subparagraphs 050506.C or 050506.Dbelow shall not be filed. However, in the eventthis action does not result in full recovery, theDO may request relief of liability for the uncol-lectible portion of the lost shipment. Such arequest shall be fully supported by copies of allcorrespondence pertaining to the unsuccessfulrecovery action.

C. Claim Against U.S. Postal Service.The liability of the U.S. Postal Service in the caseof lost currency shipped by registered mail isgenerally limited to shipments of $100 or less. Aclaim for a lost shipment of $100 or less can befiled only by the consignor (mailer). A claim fordamage or partial loss may be filed by theconsignor or by the consignee (addressee). Theapplicable claim form is PS Form 565, RegisteredMail Inquiry for Delivery and/or Application forIndemnity. The accountable DO should obtaina copy of the completed PS 565, and shall ensurethat he or she is listed on the form as the claim-ant. For losses exceeding $100, the PS 565 shallbe filed as a means of tracing the shipment, butthe filing will not constitute a claim.

D. Claim Against the Treasury.Claims for the value of lost currency shipmentsin excess of $100 shall be submitted by the ac-countable DO to the Secretary of the Treasuryvia the servicing DFAS Center. The Secretary ofthe Treasury will require proof of claim in suchform, and in such manner, as he deems neces-sary. Proof of claim will include satisfactoryproof of loss, destruction, or damage. The claimshall be supported by the original of the DDForm 165, which will be returned after adjust-ment of the claim. The consignor (shippingofficer) shall submit a statement concerning theloss or destruction of, or damage to, the ship-ment or any part thereof. If the shipment wasreceived by the consignee with contents notintact, the statement shall set forth all the cir-cumstances relating to the condition in which theshipment was received and the manner of in-

spection and verification of its contents. Affida-vits covering the loss, destruction, or damage tothe shipment shall be obtained from the consign-ee and the earner. The statement and recom-mendations of the investigating officers shall alsobe included. In the case of lost shipments forwhich an exchange-for-cash check was issued toan FRB or another DO, the issuing DO shallrequest that the shipping officer take the aboveactions and provide copies of all documentation.After filing of the claim, all necessary and rea-sonable steps to recover the lost, destroyed, ordamaged shipment shall continue. All recoveriesand refunds received following favorable consid-eration of the claim shall be turned over to theTreasury.

E. Restitution and Relief. The Secre-tary of the Treasury shall grant claims for lost,damaged, or destroyed shipments only if theshipping officer strictly followed the prescribedprocedures. In the event of a denial of the claim,the accountable DO may either make restitutionof the missing funds or submit a request forrelief of liability as prescribed in chapter 06 ofthis Volume. Relief will be granted only if theaccountable officer is judged to be free of fault ornegligence. Therefore, the relief request shallclearly and convincingly justify any departurefrom prescribed regulations.

050507. Damaged or Mutilated U.S. Currency

A. Fragments of U.S. Currency.Damaged or mutilated U.S. currency recoveredfrom inadvertent wartime destruction or frompeacetime catastrophes affecting DoD propertyand personnel such as aircraft crashes, shipsinkings, building explosions, or chemical spillsshall be processed as explained below.

1. Fragments shall be invento-ried by at least three disinterested persons and,where a DoD Component has jurisdiction,brought under safekeeping control by the appro-priate DO.

2. Fragments shall be packagedfollowing procedures in subparagraph 050507.Bbelow, and forwarded to the Bureau of Engrav-ing and Printing for determination of value.

3. In the event that fragmentsare contaminated, the DO or other responsible

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official shall contact the Office of CurrencyStandards, Bureau of Engraving and Printing, at(202) 874-2361 to arrange for on site review byBureau personnel or special disposition instruc-tions.

B. Packaging Mutilated Currency.Mutilated currency examiners normally candetermine the value of mutilated currency whenit has been carefully packed and boxed as de-scribed below.

1. Regardless of the condition ofthe currency, do not disturb the fragments morethan is absolutely necessary.

2. If the currency is brittle, packit carefully in cotton and box it as found, with-out disturbing the fragments, if possible.

3. If the currency was in apurse, box, or other container when mutilated, itshould be left there, if possible, in order toprevent further deterioration of the fragments orto prevent them from being lost.

4. If it is absolutely necessary toremove the fragments from the container, sendthe container with the currency and any othercontents found, except as noted in subparagraph050507.B.7 below.

5. If the money was flat whenmutilated, do not roll or fold.

6. If the money was in a rollwhen mutilated, do not attempt to unroll orstraighten.

7. If coins or any other metal aremixed with the currency, remove carefully. Donot send coins or other metal in the same pack-age with mutilated currency, as such metal mayfurther damage the currency.

8. Properly packaged currencyshould be sent to: Department of the Treasury,Bureau of Engraving and Printing, ATTN: OCS,Room 344, BEP Annex, P.O. Box 37048, Washing-ton, DC 20013.

050508. Uncurrent or Mutilated U.S. Coins

A. Worn Coins. U.S. coins that aremerely worn or reduced in weight by naturalabrasion, yet are readily and clearly recognizableand are machine countable, may be redeemed atface value at any FRB or branch.

B. Mutilated Coins. U.S. coins thatare bent, broken, not whole, or fused and meltedtogether are considered “mutilated.” Mutilatedcoins may be redeemed by the U.S. Mint asindicated below.

1. The Mint will not redeemmutilated coins if they are fused material unrec-ognizable as U.S. coins; foreign coins; counterfeitcoins; slugs; altered coins (i.e., changed to passas another denomination); or coins or lumps ofcoins that contain lead, solder, or other substanc-es that would make them unsuitable for use ascoinage metal.

2. Whenever possible, loosemutilated coins submitted for redemption shouldbe separated into the following groups: Cents (1cent, including both copper and copper-platedzinc); Nickels (5 cents); Clad Coins (10 cents, 25cents, 50 cents and Eisenhower 1 dollar); andDollars (Susan B. Anthony 1 dollar).

3. The settlement amount will bebased on coin weight and whether they havebeen sorted by denomination categories (“sep-arated”) or have been sent mixed together. Ifcoins are not separated, they will be considered“mixed” and redeemed at a lower rate as de-scribed below. For separated coins, the Mintwill redeem no less than one pound of eachdenomination category; for mixed or fused coins,the minimum is two pounds.

4. Mixed denominations of coinsor lumps of coins that have been fused togetherwill be redeemed by their weight and metalcategory (i.e., bronze, cupronickel, or clad) basedon date of receipt by the Mint and rates thatchange quarterly as of the 15th day of January,April, July and October.

5. Bent or partial coins separatedby denomination groups listed below will beredeemed by their weight and denominationcategory at the following rates:

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Denomination Rate (per lb.)

Cents $1.4585Nickels $4.5359Clad Coins $20.0000Dollars $56.0000

6. The Mint will accept no lessthan one pound of each denomination of separat-ed coins or 2 pounds of mixed or fused coins.

7. Settlement will be made bycheck approximately 12 to 14 weeks from thedate that mutilated coins are received at theMint. Coins may be mailed to: United StatesMint, P.O. Box 400, Philadelphia, PA 19105; ormay be delivered in person, or by courier to:United States Mint, Coin Redemption Branch, 5thand Arch Streets, Philadelphia, PA 19106.

8. Questions regarding thedisposition of mutilated or contaminated coinsmay be referred to the Cashier’s Office, U.S.Mint, at (215) 597-4982.

0506 TRANSFERS OF PUBLIC FUNDS

050601. Transfers Within the DoD. Transfers offunds between DOs are authorized and shouldfollow the same exchange for cash proceduresused to procure cash. Transfers of funds be-tween DOs of different Components of DoD orother Governmental agencies shall be made byan exchange-for-cash Treasury check, madepayable to the purchasing DO for the amount ofcash desired.

050602. Transfer of Funds Upon Relief. Allfunds and accountable documents in the posses-sion of the relieved DO (including currency,coin, and receipts which represent funds in thehands of authorized deputies, agents, cashiers,imprest fund cashiers, advances to contractors,salary payments, and other authorized deferredvouchered payments) which cannot be scheduledimmediately, shall be transferred to the relievingofficer. Funds in the hands of deputies, agents,cashiers, and imprest fund cashiers may beretained by the individuals if the relieving DOintends to retain these individuals in their cur-rent accountable position. Otherwise, the DObeing relieved shall recall the funds and termi-nate the accountable individual’s appointmentprior to the relief process. The total amount

transferred to the relieving DO shall be theamount of total accountability at the close of theaccounting period as shown on the final SF 1219of the DO being relieved. AS soon as possibleafter relief has taken place, the relieving DOshall issue new DD Forms 1081 to all account-able individuals who retained funds as providedin this paragraph. A certificate of transfer shallbe furnished on the bottom of the final SF 1219of the officer relieved. The certificate shall readas follows:

“I have received on (date) by transfer from(officer relieved), (total amount), an analysisof which is included in Sections I-B and I-Cabove.

(Signature and rank of relieving officer).”

In addition to the regular distribution require-ments, 2 extra copies of the SF 1219 shall beprepared. One of the extra copies shall be re-tained with the disbursing records of the reliev-ing DO, and the other shall be retained by theofficer relieved as a receipt for the funds trans-ferred. ” All deficiencies in the account of theofficer relieved shall be processed as prescribedin chapter 22 of this Volume. When the total ac-countability of the officer relieved is zero, nocertificate of transfer by the relieving officer isrequired.

050603. Merging of Disbursing Accounts Whena DSSN is to be assumed by another DSSN ofthe same DO, the cash and other assets of theDSSN to be discontinued shall be purchased bya Treasury check drawn on the receiving DSSN.The Treasury check shall be deposited to thecredit of the DSSN to be discontinued and shallbe reported on the final SF 1219.

0507 COUNTERFEIT OR ALTERED U.S.CURRENCY

050701. Detected Prior to Acceptance. Counter-feit or altered U.S. currency, if detected uponpresentation to a DO for exchange or payment ofan obligation to the United States, shall beconfiscated. A receipt indicating the type, de-nomination, and amount of the confiscatedcurrency shall be furnished to the individualpresenting the currency and information shall beobtained from the individual as to the source ofacquisition. The currency shall be delivered with

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a letter of transmittal, giving all available infor- DFAS Center. This transaction shall be reportedmation, to a representative of the appropriate on the SF 1219 as a physical loss of funds.investigative service, if available, or if not, to thenearest military security agency. A receipt shallbe obtained in either case. Because the currencywas detected before acceptance by a DO, entriesregarding the receipt and transmittal shall not bemade in the DO’s accounts.

050702. Detected After Acceptance and Reim-bursement Is Obtained. Immediately afterdiscovering counterfeit currency, the DO shallrequest reimbursement from the source fromwhich received. When reimbursement is re-ceived, the procedure outlined in the precedingparagraph shall be followed. Because reimburse-ment is obtained, no loss to the DO accrues, andno entries in the DO’s accounts are required.

050703. Detected After Acceptance and Reim-bursement Is Not Obtained. If the source ofreceipt of counterfeit currency is unknown or ifthe source is known and reimbursement isunobtainable, the currency shall be deliveredimmediately by the DO, together with a detailedreport of all known circumstances, to a represen-tative of the appropriate investigative service, ifavailable, or if not, to the nearest military securi-ty agency. A receipt for the currency shall beobtained in either case. The receipt for thecurrency, with a signed copy of the report madeby the DO, shall be forwarded with a memoran-dum via the commander to the servicing DFASCenter. The memorandum shall include thereason reimbursement was not obtained. Thistransaction shall be reported on the SF 1219 as aphysical loss of funds.

050704. Detected After Depositing by MailWith Bank. When a DO is notified that currencywhich has been deposited by mail has beendetermined to be counterfeit and is being heldby the bank, the DO shall reimburse the bank forthe counterfeit currency and shall obtain aformal receipt giving complete description of thecurrency and stating that the currency has beenfound to be counterfeit and has been withdrawnfrom circulation. The receipt from the bank shallalso state whether the currency will be or hasbeen turned over to the U.S. Secret Service. Thereceipt from the bank and a detailed report of allknown circumstances, signed by the DO, shall beforwarded via the commander to the servicing

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(a) Routine deposit confirmed during the current month. The deposit was included in line 4.2 of the SF 1219. Theconfirmed copies of the SFs 215 should be enclosed with this schedule.

(b) Routine debit voucher. The debit voucher was included in line 4.2 of the SF 1219. The confirmed COPY of the SF5515 should be enclosed.

(c) Routine deposit-not yet confirmed. The memorandum copy of the SF 215 should be enclosed with this schedule.

(d) This deposit should have been reported in January and should have been included in the total deposits reportedon line 4.2 of the SF 1219 for January. It was not. It is being reported now. The confirmed copy of the SF 215should be enclosed with this schedule.

(e) See the description for item (d). The memorandum copy of the SF 215 should be enclosed.

(f) Routine deposit, confirmed in a month later than the month in which the deposit was presented or mailed. Thisitem had already been reported on line 4.2 of a previous month. The confirmation copy of the SF 215 should beenclosed with this schedule.

(g) Deposits presented or mailed in a previous month but not yet confirmed. Aggressive followup action should betaken by the disbursing office to obtain confirmation of deposits reported here.

(h) A deposit previously reported and still unconfirmed has been determined to be lost. This entry is to remove thelost deposit from the schedule. A corresponding increase to line 7.3 or 7.4 of the SF 1219 must be made. Anexplanatory note should be enclosed with this schedule.

(i) This is a supplemental SF 215 issued by the bank to acknowledge that the total of the checks included in aparticular deposit exceeded the amount shown on the SF 215 under which the checks were deposited. Thememorandum copy of the SF 215 should be enclosed with this schedule.

This is a confirmed foreign currency deposit made in a Treasury General Account (not a limited depositary(j)account). The deposit had been carried on the SF 1219 at the disbursing officer’s valuation of those funds, $950.When the funds were accepted by the Federal Reserve Bank, New York, the U.S. dollar proceeds were credited tothe symbol in the amount of $900. The difference of $50 was vouchered as a loss by exchange transaction.

Figure 5-9 (Continued). Schedule of Deposit Activity (Entry Explanations)

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