- Functions and Activities
Payment Processing: Payroll Payments (FFM.030.040)
Record payroll payments generated by payroll service
Reconcile payroll service information with financial management information
Record payment adjustments
- Federal Financial Management System Requirements (FFMSR)
Establishing Payables (2.2.1)
Capture federal government unique recipient information [for example, federal vendor registration attributes, such as Data Universal Numbering System (DUNS) and the type of relationship with the U.S. Federal Government, grant recipient information] consistent with that required to support the payment management and invoice processing activities defined in 5 CFR 1315, the Federal Acquisitions Regulation (FAR), and the TFM.
Capture federal government unique payment information (for example, appropriation and fund) to support payment reports consistent with the TFM.
Provide budgetary authority and resource data required to post GL transactions consistent with USSGL transaction codes, transaction categories (for example, funding) and transaction subcategories (for example, budgetary resources other than collections) as defined in the TFM.
Provide payable data required to post GL transactions consistent with USSGL transaction codes, transaction categories (for example, disbursements and payables), and transaction subcategories (for example, payments/purchases) as defined in the TFM.
FFMSR: Making Payments (2.2.2)
Capture federal government unique invoice prompt payment information (for example, invoice receipt date, discount, applicable interest rate determined per government formula, and accelerated payment) to support payment of invoices as specified in the CFR
Determine disbursement terms and amounts in accordance with the terms of the contract or agreement, and based on determination of invoice term, payment date, interest or penalty applicable, and amount as specified in the CFR.
Provide certified payment transaction information for the disbursing office to make disbursements as specified in the TFM.
Agencies for which Treasury does not disburse (for example, the Department of Defense):
Provide payment disbursement forms that include payment transactions consistent with Government Accountability Office (GAO) policy and procedures and as specified in the TFM.
- Use Cases
Payroll TFM Guidance
For more information visit TFM Volume I, Chapter 4a, Ch 2000
- Basic Disbursement Requirements
The following requirements apply to all disbursements, whether in cash, checks, or electronic payments, issued on the U.S. Treasury or designated depositary banks for authorized and lawful payments and/or refunds of amounts collected:
- General Requirements
Agencies must support disbursements with sufficient information on the disbursement vouchers, or on documents attached to them, to enable the audit of the transactions of certifying and disbursing officers, as required by law.
Agencies should mark vouchers or voucher schedules and supporting documents systematically, or manually when applicable, to prevent duplicate payments and to avoid mutilation, overwrite, inadvertent deletion, or destruction.
If an original invoice has been lost or destroyed, the agency should obtain a duplicate from the original submitter of the invoice to support the voucher or voucher schedule. Then, the agency may process the voucher or voucher schedule through regular disbursement channels provided it places on or attaches to the duplicate invoice a full explanation as to the circumstances of the loss or destruction of the original invoice and a statement indicating that steps have been taken to prevent duplicate payment.
Note: Agencies should be particularly alert to the possibility of duplicating payments whenever they:
Have delayed payments for extended periods of time after the due date.
Have received duplicate copies of invoices from vendors as follow-up claims. (Vendors may have submitted invoices or bills to more than one agency location for payment.)
Have received adjusted invoices after they have made payments.
- Payrolls – General
Responsibilities for the head of each agency include the following:
Establishing and maintaining an adequate payroll system; or
Using a payroll service provider with a system for covering pay, leave, and allowances, as a part of the system of accounting and internal control required by the Accounting and Auditing Act of 1950 (31 U.S.C. 3513). This system must conform to the principles, standards, and related requirements prescribed by the Comptroller General.
The Office of Personnel Management (OPM), the Office of Management and Budget (OMB), and the Department of Labor (DOL) issue regulations related to payroll voucher preparation.
- Payroll Creation
A disbursing officer who knows an obligation was incurred when funds were not available may not disburse a certified payment voucher. This circumstance can arise particularly in the case of payrolls when it is obvious that the time of obligation occurred after the appropriation or continuing resolution lapsed. Therefore, when annual appropriations have not been enacted and there is no continuing resolution under which obligations can be legally liquidated, disbursing officers should not knowingly release payrolls that extend beyond the period provided for in the appropriation or continuing resolution. The inclusive dates of a pay period serve as prima facie notice to disbursing officers of the date on which the obligation was incurred. Disbursing officers should not knowingly release payrolls for any pay period extending beyond or commencing after the expiration date of an appropriation or a continuing resolution, unless the chargeable appropriation is a no-year or unexpired multiple-year appropriation.
- Payrolls Processed for the Entire Pay Period
Sometimes the expiration date of an appropriation or a continuing resolution does not coincide with the end of a pay period. Disbursing officers may not release payrolls that include salaries and wages earned beyond the expiration date of the appropriation or continuing resolution.
- Payrolls Processed for a Portion of a Pay Period through the Expiration Date
Disbursing officers should make the usual advance release of payroll payments only to cover salaries and wages earned through the expiration date of an appropriation or a continuing resolution.
- Payrolls for Pay Periods After the Expiration Date
For any partially covered pay period and all subsequent pay periods, agencies should process payrolls for salaries and wages earned beyond the expiration date of an appropriation or a continuing resolution as usual. Disbursing officers may prepare payments for such payrolls and may hold them for immediate release upon approval of an appropriation or continuing resolution.
ContactDepartment of the Treasury
Bureau of the Fiscal Service
3201 Pennsy Drive, Building E
Landover, MD 20785
This page was last updated on November 02, 2020.