This chapter prescribes procedures that Non-Treasury Disbursing Offices (NTDOs) such as government departments, agencies, and others must follow when using and operating 4-digit symbol checking accounts with the Department of the Treasury (Treasury). Throughout this chapter NTDO symbol, 4-digit Disbursing Office (DO) symbol, and ALC will be used interchangeably. For NTDOs, the 4-digit DO symbol that is established functions as an ALC for the agency.

Areas covered include instructions on checking account symbol maintenance (how to request, change, close, or reopen a 4-digit DO symbol), reporting check-issue transactions to the Bureau of the Fiscal Service (BFS), processing voided checks, and adjusting check-issue discrepancies and related matters.

The authorities for this chapter are:

For terms and definitions related to this chapter, please view the TFX Glossary.

To request, change, close, or reopen a 4-digit DO symbol, the appropriate agency official from the agency's administrative office should sign and send a letter to Payment Integrity and Resolution Services (PIRS) of BFS. The requesting party must send the original, signed letter on official agency letterhead. See Contacts.

6025.10—Opening a 4-Digit Disbursing Office Symbol

Agencies that are authorized to do their own disbursing (31 U.S.C. § 3321) must submit written justification to PIRS citing their authority to do so. To request a new 4-digit DO symbol, the official must certify that no other DO can reasonably do its disbursing. In addition, the request must indicate if the agency will require Treasury check stock or will only be established to report information concerning check disbursements made by other DOs.

PIRS will notify the agency (in writing) of the 4-digit DO symbol that was assigned based on the agency's request.

6025.20—Changing Information Associated with a 4-Digit DO Symbol

It is the agency's responsibility to notify PIRS when information for a particular DO symbol changes. This includes changes in an address, a Disbursing Officer, a contact person, or a telephone number. The date the DO symbol was opened can be changed if the DO symbol was established with a future opened date and that date has not yet occurred. If the DO symbol has closed, agencies can process changes to the successor DO Symbol/Agency Location Code (ALC).

PIRS will confirm (in writing) changes made to an agency's ALC information so the agency can be assured that all of the requested changes were made.

6025.30—Closing a 4-Digit Disbursing Office Symbol

Before requesting that a DO symbol be closed, the DO must do the following:

• Destroy all unused check stock. The DO must not submit unused check stock to BFS (see section 6040.20), and
• Submit a transmittal of zero issue amounts for each check destroyed to the Payment Information Repository (PIR) or the Payment Information and View of Transactions (PIVOT) system.

The letter requesting the closure of a 4-digit DO symbol should specify a successor 4-digit ALC (which is determined by the agency) or new 8 digit ALC (if the agency is converting to a TDO) to do the following:

• Receive subsequent limited payability cancellation credits, and
• Process adjustments that may be found after the DO closes.

Closing a 4-digit DO symbol requires two steps by BFS:

• First, after receiving the close request letter, PIRS verifies that the DO has reported all check-issue information to PIVOT and closes all authorized check ranges. PIRS notifies the agency (in writing) that the authorized check ranges have been closed. PIRS also informs the agency that it has forwarded the agency's request to close the symbol to the Cash Accounting Branch (CAB).
• Second, the CAB closes the DO symbol in the Central Accounting and Reporting System (CARS) ALC Master File. Before CAB closes a 4-digit DO symbol, the DO must have a zero balance in the following three audits: deposit in transit, undisbursed, and check-issue reporting. If these conditions are met, CAB sends the agency written notification of closure. If these conditions are not met, the CAB will notify the agency that the DO symbol cannot be closed until all three audits are zero. CAB will work with the agency to help resolve these issues. Agencies must report SF 1218/1221 or SF 1219/1220 Statement of Transactions/Statement of Accountability to the CARS until CAB closes the symbol in the ALC Master File.

BFS financial centers that print and disburse checks for Treasury Disbursing Offices (TDOs) must also submit requests to close 4-digit check symbols when the range of check serial numbers has been exhausted and all check-issue information has been reported to the PIVOT.

6025.40—Reopening a 4-Digit Disbursing Office Symbol

Treasury may reopen a DO symbol if it is under the same agency name and at the same geographical location as when it was previously open. In addition, the reopened office must continue to provide the exact services as the original. If the original office both reported and disbursed Treasury checks, PIRS will not reopen the symbol if the agency intends to be only a reporting office. If the proposed reopened DO will not provide the same services as originally provided, the agency should request that PIRS establish a new 4-digit DO symbol (see paragraph 6025.10).

The DO must send the request to reopen a 4-digit DO symbol to PIRS in writing (see contacts). PIRS will notify the agency (in writing) that the 4-digit DO symbol has been reopened.

6030.10—Check-Issue Reporting Methods

PIVOT is the system that must be used by TDOs and NTDOs (collectively referred to as DOs in this section and subsequent sections) to submit their check issue information to Treasury. DOs must also submit their disbursement related transaction information through the Payment Information Repository (PIR) to the Central Accounting Reporting System (CARS). See TFM Volume I, Part 4A, Chapter 4000 for more information on Non-Treasury Disbursing Office (NTDO) file submissions.

6030.20—Delinquent Check-Issue Reporting

Treasury requires that DOs report their check-issue data in a timely manner. Until the check-issue information is received, the PIVOT will reject claims against these checks and also will not process limited payability cancellation credits. PIRS cannot complete a final reconciliation and clearance of the DO's account until it receives the check-issue data. Furthermore, until the data is received, Treasury is vulnerable to banking system errors, check alterations and counterfeits, which negatively affect the government's cash position and impact the agency's ability to obtain an unqualified audit opinion with its Fund Balance with Treasury account, as well as its efforts to combat fraud and ensure payment integrity.

PIRS provides a list of delinquent check issues for every DO at the end of each month to CARS. CARS then provides this information to the DOs along with their monthly scorecard. If habitual delinquent reporting continues, PIRS may suspend the processing of further print orders for blank Treasury check stock until all delinquent check-issue reporting has been accepted into the PIVOT.

If Treasury sustains a loss for an altered or counterfeit check as a result of delinquent check-issue reporting, PIRS reserves the right to pursue action to charge the agency for the amount of the loss and to refuse to provide new check stock.

If a check is spoiled in the check issuance process, the DO must void the check per Section 6040 and report it per paragraph 6040.10. The DO must assign a new check number to the voided payment. Treasury no longer allows the use of control checks.

DOs can void checks and render them non-negotiable by marking the face of each check with the following:

"Void - Not Negotiable. No Check 
Issued Under This Number."

DOs should not send voided checks to PIRS. They should dispose of voided checks per paragraph 6040.20.

DOs cannot void checks that were reported to PIVOT as valid checks, such as returned checks. The DO must stamp these checks as follows:

"Not Negotiable - For Deposit Only. 
Credit of Agency Location Code ______."

A DO may deposit these checks at a Financial Institution (FI), with which they have an agreement to do so. The FI will in turn use the Over the Counter Network (OTCnet) to credit the proceeds of the check to the appropriation from which it was issued, according to check cancellation procedures. See TFM Volume I, Part 4, Chapter 7000. A DO may also use OTCnet directly to receive this credit. Both processes will produce an SF 215 Deposit Ticket. For more information on OTCnet, see TFM Volume I, Part 5, Chapter 2000.

6040.10—Reporting Voided Check Issues

DOs report voided checks on check-issue transmittals as zero-dollar amount issues. Voided serial numbers are recorded sequentially with those of other checks issued. If DOs do not report checks as void on check-issue transmittals, PIRS cannot close DO symbols when requested, as described in paragraph 6025.30. DOs will be held liable for any voided checks that are cashed and processed through the banking system.

6040.20—Disposition of Voided Checks

DOs should destroy voided checks as soon as possible by shredding or incineration, on site or at an approved federal shredding facility, after which the shredding fragments may be disposed of as waste. Shredded fragments must not be larger than 1/8th inch in width and 3½ inches in length. BFS requires the use of a cross-cut shredder. The incineration method of destruction may only be used, subject to environmental regulations, when a disbursing office does not have shredding equipment. The Office of Payment Operations (see Contacts) must approve the use of alternative facilities.

PIVOT compares paid check data provided by Federal Reserve Banks (FRBs) with check-issue information transmittals reported by DOs on an item-for-item basis for each check serial number. When reconciling paid check data, PIRS issues checking account reconciliation adjustment reports.

6045.10—Adjustment of Deposit Differences

The Statement of Difference (SOD) identifies differences between the amounts reported as deposited in the Treasury General Account (TGA) and the amounts actually credited to the TGA. The SOD for deposits are generated on a monthly basis and are available via the CARS SOD application. The Deposit Ticket/Debit Voucher Support Listing is also available in CARS SOD and is updated daily.

DOs follow the procedures in this section to show proper accountability for funds when processing adjustments in their accounts. These adjustments relate to checks drawn on the TGA.

6050.10—Check-Issue Errors

DOs prepare a journal voucher for any prior month or the current month check-issue errors they detect (see paragraph 6050.20). However, DOs cannot send journal vouchers or letters requesting adjustments for check-issue errors detected more than one year from the issue month of the check. By that time, the PIVOT has canceled the checks. It passes the credit to the Treasury Receivable Accounting and Collection System (TRACS), which returns the funds to the agency through the limited payability cancellation process. TRACS will send the payment back to the ALC and the TAS/BETC that is specified in the federal agency’s Cash Flow Profile within the Shared Accounting Module (SAM); TRACS will not send the payment back to the TAS/BETC reported on the original payment. DOs correct check-issue discrepancies more than one year from the issue month of the check depending on how they received the limited payability cancellation credits. DOs must correct these discrepancies in one of two ways:

• If received through the Intra-Governmental Payment and Collection (IPAC) System, the DO reports the credit in Section I, Part A, of the SF 1220. The DO also records it on line 2.80 of the SF 1219. Then, it records and reports a journal voucher for the check amount on lines 2.12 and 4.10 of the SF 1219. It also charges the account credited from the IPAC documents or SF 1220.
• If received on a SF 1081: Voucher and Schedule of Withdrawals and Credits, the DO records the SF 1081 to its accounts. Then, the DO records and reports a journal voucher for the check amount on lines 2.12 and 4.10 of the SF 1218/1219. It also charges the account credited from the SF 1081 on the SF 1220/1221.

For further help on processing check-issue errors detected more than one year from the issue month of the check, contact the Cash Accounting Branch. See Contacts.

6050.20—Error in Issue Amount

DOs must correct a prior month's discrepancy that occurred because:

• The DO printed a check for an amount different from the amount that was reported to PIVOT and CARS on the 1219, and
• The DO reported that check amount on the check-issue transmittal.

To adjust the issues to agree with the amount of checks as drawn, the DO must submit a journal voucher or appropriate correspondence to PIRS. In addition, the DO must do the following:

• Collects any overdraft amount related to the receivable established for the adjustment, or
• Issues a new check (new issue) for any underdraft, related to the deposit fund credit established for the adjustment; and, if applicable,
• Adjusts the account charged for the related disbursement.

6050.30—Error in Disbursement

If the amount of the check, the amount on the issue transmittal, and the amount in the accounts are consistent but the "amount to be paid" on the internal voucher is different, the DO should not send a journal voucher to the Bureau of the Fiscal Service. Instead, it should adjust the amount on its books.

6050.40—Distribution of the Journal Voucher

The DO distributes the journal voucher and two copies as follows:

• Original. Keep the original to support the accounts receivable account on the SF 1218/1219 and to support the accounts payable account on the SF 1220/1221, __X6999. The journal voucher must include the check symbol, serial number, and the issue date of the check. Also, the journal voucher must explain the circumstances that caused the adjustment. For example, a DO issued a check to a payee for $359 but reported a voucher and check-issue to Treasury on the issue transmittal of $659. In this case, the journal voucher would show a credit of $300 to the accounts payable account.
• Copy 1. Attach the first copy to the clearance transaction document (for example, SF 215, schedule of collection, payment voucher or SF 1081). Report the transaction document to support the SF 1218/1219 or SF 1220/1221 when the item is cleared from the receivable account or the payable account.
• Copy 2. Keep the second copy as the subsidiary record of uncleared differences comprising the balance of accounts receivable or accounts payable, and the current operating control record for the corrective actions.

6050.50—Accounting for Check-Issue Overdrafts and Underdrafts

As part of the DO's accountability, each DO establishes an "Accounts Receivable, Check-Issue Overdrafts" account. Treasury has designated deposit fund account __X6999, "Accounts Payable, Check-Issue Underdrafts" (with the symbol prefix of the disbursing agency) to record check-issue underdrafts.

6050.60—Accounting for Collections and Payments Made to Clear Outstanding Differences

To clear outstanding overdrafts and underdrafts, as appropriate, DOs must do the following:

• Clear Accounts Receivable. Deposit cash collections received to clear the amount of overdrafts held in accounts receivable for credit in the TGA. Credit the amount of collections to the accounts receivable account. If an undercharge to an appropriation or fund account caused the overdraft and if a supplementary certified voucher charging the appropriation or fund account will clear the overdraft, credit the voucher amount to the accounts receivable account;
• Clear Accounts Payable. After determining that a payee is entitled to the amount of a check issuance underdraft, certify a disbursement voucher to charge the deposit fund account __X6999. Record the voucher and check issued in the DO's account. Report the voucher and check issued on SF 1219.

If an overcharge to an appropriation or fund account caused an underdraft, certify a SF 1081 or a comparable approved voucher adjustment form to charge the deposit fund account __X6999. Credit the appropriation or fund account involved. Provide a copy of the adjustment form to the administrative agency or office whose accounts are affected; and

• Clear Subsidiary Account Files. Based on the clearance actions described above, pull the file copy of the journal voucher (paragraph 6050.40) and annotate it with one of the cross-references shown below, as appropriate:

  "See Deposit Ticket No. ___, dated ___." 
  
  "See Check No. ___, dated ___." 
  
  "See Adjustment Voucher No. ___, dated ___."

  See paragraph 6050.40 for instructions on handling copies one and two of the journal voucher.

Direct inquiries regarding this chapter to the following addresses and indicate the 4-digit check symbol number on all correspondence.

For inquiries pertaining to paragraphs 6015.30 (sixth bullet point), 6040.20, 6040.50 and 6045.10.

Department of the Treasury 
Bureau of the Fiscal Service 
Cash Accounting Branch 
PO Box 1328 
Parkersburg, WV 26106-1328 
304-480-5106

For inquiries pertaining to paragraph 6035.20:

Department of the Treasury 
Bureau of the Fiscal Service 
Office of Payment Operations
Toni Mussorici, Director
Toni.Mussorici@fiscal.treasury.gov
816-414-2204

For all other inquiries:

Department of the Treasury 
Bureau of the Fiscal Service 
Payment Integrity and Resolution Services 
Operations Support Branch
13000 Townsend Road
Philadelphia, PA 19154
855-868-0151