1. Resolve Irregularities in a Disbursing Officer's account
U.S. ARMY SOLDIER SUPPORT INSTITUTE
NONCOMMISSIONED OFFICER ACADEMY
Show Slide 1: Resolve Irregularities in a Disbursing Officer's account
References: DoDFMR R, Vol 5, Chap 5, 1 Feb 2014
Supportive Task:
805A-36B-3500 Perform Disbursing Agent Transactions
6 hours
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise.
Learner Material: Learners should possess standard classroom supplies, course handouts, and practical exercises. All required references and technical manuals will be provided by the Schoolhouse.
Facilitator Actions:
Classroom Breakdown: 5 minutes
Testing Requirements/Assessment:
Learners will take the Conduct Accounting Support and Cost Management exam. Learners must score 80% or higher.
Resolve Irregularities in a
Disbursing Officer's account

2. Concrete Experience Scenario:
You have finished reconciling your agent’s business day, but cannot seem to match their ending cash balance on hand with their accountability documents.
1. What are some possible reason(s) the agent’s business does not match with their accountability document?
2. What steps would you take if you are the Disbursing Agent of the agent?
3. Who has experienced a similar situation? What actions did you take?
Show Slide 2: Concrete Experience
Facilitator’s Note: (Concrete Experience)
Scenario:
You have finished reconciling your agent’s business day, but cannot seem to match their ending cash balance on hand with their accountability documents.
Facilitator’s Note: (Publish and Process) the critical portion of this part of the ELM process is to force the learners to reflect. Ask the questions and facilitate discussion on the answers.
1. What are some possible reason(s) the agent’s business does not match with their accountability document?
2. What steps would you take if you are the Disbursing Agent of the agent?
3. Who has experienced a similar situation? What actions did you take?

3. Terminal Learning Objective
ACTION: Resolve Irregularities in a Disbursing Officer's account
CONDITIONS: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must demonstrate proficiency with:
Identify the three types of fiscal irregularity
Show Slide 3: Terminal Learning Objective
Action: Resolve Irregularities in a Disbursing Officer's account
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must demonstrate proficiency with:
Identify the three types of fiscal irregularity
Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to ATP Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Instructional Lead In: The definition of irregularities defined in DODFMR Volume 5 as “Any action, event, practice, or circumstance that causes an out-of-balance condition in the financial accountability to the U.S. of the DO, deputies, agents, and cashiers entrusted with public funds. May also be referred to as Fiscal Irregularity.

4. Three Types of Fiscal Irregularity
Physical Losses of Funds
Minor Loss of Funds
Loss less than $750
No evidence of theft or fraud
Major Loss of Funds
Loss of $750 or more
Any loss involving theft or fraud regardless of dollar amount
Erroneous Payments
Irregularity resulting from processed payments that are not in conformity of laws and regulations
Examples: duplicate payments, payments to incorrect payee, etc…
Overage of Funds
Funds held in a greater amount than shown on an agent’s accountability records
Show Slide 4: Three Types of Fiscal Irregularity
1. Learning Step Activity 1: Identify the Three Types of Fiscal Irregularity
Facilitator to Student Ratio: 1:16
Method of Instruction: DSL (small or large group discussion)
Time of Instruction: 1 hour / 30 minutes
Media: Power Point Presentation, Printed Reference Materials, Hand out
Facilitator's Note: Before facilitating this lesson, ask the learners which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the learners still believe their choice are the same.
For this lesson these competencies should be talked about.
Character and accountability
Comprehensive fitness
Critical thinking and problem solving
Cultural and joint, interagency, intergovernmental, and multinational competence
Tactical and technical competence (full spectrum capable)
Facilitator's Note: Throughout this lesson, Refer to DODDMR Vol. 5, Chapter 6. In DODFMR Volume 5 Glossary, Irregularity is referred to as “Fiscal Irregularity” (See Glossary page G-21 of the DODFMR Volume 5). DODMFR Volume 5, Chapter 6 covers the three specific irregularities in more detail.
Facilitator's Note: Physical losses of funds can be found in Erroneous Payments may be found in Overages is covered under 0605.
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Physical Losses of Funds
Minor Loss of Funds
Loss less than $750
No evidence of theft or fraud
Major Loss of Funds
Loss of $750 or more
Any loss involving theft or fraud regardless of dollar amount.
Erroneous Payments
Irregularity resulting from processed payments that are not in conformity of laws and regulations.
Examples: duplicate payments, payments to incorrect payee, etc…
Overage of Funds
Funds held in a greater amount than shown on an agent’s accountability records.

5. Accountable Individual’s Responsibilities
Cease operations
Prepare a DD Form 2665
Verify all cash and accountable documents
Report the irregularity
Show Slide 5: Accountable Individual’s Responsibilities
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Accountable individual’s (Deputies, Disbursing Agents, Paying Agents, Cashiers, and Collection Agents) responsibilities.
(1) Immediately cease operations.
(2) Immediately prepare a Daily Agent Accountability Summary (DD Form 2665) posting all transactions since the last balancing.
(3) Immediately verify, by conducting an actual physical count that the total of all cash and accountable documents on hand agree with the amount shown on the DD Form 2665.
(4) If the loss is not resolved, report the loss to the immediate commander and/or the DO requesting an immediate audit of all disbursing assets accountable for.

6. Disbursing Officer’s Responsibilities
Verify all transactions are properly posted
Verify all totals
Verify all cash and accountable documents
Report the irregularity
Request a cash verification team
Process the irregularity
Show Slide 6: Disbursing Officer’s Responsibilities
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: Refer learners to DODFMR R, Volume 5, paragraph B
Disbursing Officer’s responsibilities.
(1) Immediately verify that all transactions have been properly posted to the Daily Statement of Accountability (DD Form 2657) and/or each deputy’s, agents, or cashier’s DD Form 2665 since the last balancing.
(2) Immediately verify the accuracy of all totals on the DD Form 2657 and/or each deputy’s, agents, or cashier’s DD Form 2665 since the last balancing.
(3) Immediately verify, by actual count, that the total of all cash and accountable documents held by the DO and all deputies, agents, and cashiers agree with the amounts shown as on hand on the respective DD Form 2657 and DD Forms Notify the commander of the accountable individual if you suspect fraud, waste, or abuse.
(4) If the loss is not resolved within 24 hours of discovery, the DO must report the loss (in writing) to the commander and request an immediate audit of all disbursing assets by a cash verification team.
(a) If the cash verification team resolves the loss, report the finding (in writing) to the commander. No further action is required.
(b) If the cash verification team cannot resolve the loss, report the finding (in writing) to the commander and take action to process the loss of funds.
(5) If a DO has knowledge of, or reason to believe that, a deputy DO or any other person to whom funds have been entrusted has lost or misused, or may be misusing those funds, then the DO shall report such information to the commander exercising immediate jurisdiction over the alleged offender.

7. Commander’s Responsibilities
Report major losses and fraudulent, forged, or altered documents to
DFAS
Report minor losses involving fraud to DFAS
Report erroneous payments involving fraud to DFAS
Report overages involving fraud to DFAS
Show Slide 7: Commanders Responsibilities
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: Refer the learners to DODFMR R, volume 5, paragraph C
Commander’s responsibilities.
(1) Immediately report all major physical losses of funds and all payments based on fraudulent, forged, or altered documents prepared or presented by individuals who do not work in the Disbursing Section through the chain of command to the Defense Finance and Accounting Service, Disbursing and Cash Management Office, Relief of Liability Branch (DFAS-DCMO/DBD). The report must include:
(a) The specific type of loss.
(b) All known circumstances surrounding the loss.
(c) The dollar amount of the loss.
(d) The identity of all accountable individuals, to include name, rank, and position.
(e) The type of investigation that has been or will be done.
(f) The estimated date of completion of the investigation.
(g) The status of any recovery action in progress or contemplated.
Minor physical losses are not reported by the commander to DFAS, unless there is an indication that fraud was involved.
(3) Erroneous payments are not reported to DFAS unless there is an indication that fraud was involved.

8. Process a Minor Loss
Accountable individual records the loss. Accountable individual turns-In the loss. Prepare an OF 1017-G. Prepare a cumulative DD Form Prepare a minor loss of funds DD Form Record the loss on the DD Form Record the loss on the SF Investigate the loss Submit a quarterly minor loss report. Process a relief or denial of relief of liability.
Show Slide 8: Process a Minor Loss
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: Refer the learners to DODFMR R, volume 5, paragraph (Accounting for Losses) and (Investigating Physical Losses of Funds)
The accountable individual must record the loss on the DD Form 2665 prepared for the day’s business. Facilitator’s Note: Refer the learners to the training aid (TA 1), page 8
The accountable individual makes a turn-in using the DD Form 1081 to turn-in the loss. This in no way relieves the individual of responsibility for the loss. Facilitator’s Note: Refer the learners to the training aid (TA 1), page 9
Although not stated in DODFMR Volume 5, Chapter 6, it is recommended an OF 1017-G Journal Voucher is prepared and kept with the other documentation of the loss of funds as an additional record keeping tool; Note that in DDS, it will prompt you to complete an OF 1017-G when processing the loss of funds.
Prepare a DD Form 2667 as a cumulative record of losses for every day there is a loss of funds as previously explained. Facilitator’s Note: Refer the learners to the training aid (TA 1), page 10
Prepare a separate DD Form 2667 maintained specifically for minor losses of funds. Facilitator’s Note: Refer the learners to the training aid, page 11
(1) Record only minor losses that have not been recovered during the current calendar quarter.
(2) Prepare the form in the same manner as was done for a major loss, with the exception of Item 2, Purpose of Record. For Item 2, enter "Minor Loss of Funds Report" followed by the dates of the applicable quarter of the fiscal year.
f. Record the loss on the DD Form Facilitator’s Note: Refer the learners to the training aid, page 12
(1) Increase line 7.3, Loss of Funds (or line 9.3, Loss of Funds, if the loss is from the predecessor’s accountability).
(2) Decrease the appropriate cash on hand line (lines 6.1 through 6.9).
Facilitator’s Note: Refer the learners to DODFMR R, volume 5, Table 6-2 Flow Chart
g. Investigate the loss of funds.
(1) If the loss is greater than $300.00, someone outside the disbursing office must conduct an informal investigation.
(a) The commander appoints the IO.
(b) A written investigatory report must be completed IAW DoDFMR R, Volume 5, paragraph
(c) The IO will submit the completed investigation report thru the Commander to DFAS-NPD/IN (Disbursing and Debt Management Policy) within 30 days.
(d) DFAS-NPD/IN reviews the Results of the Investigation (ROI) and make appropriate recommendations of liability.
(e) DFAS-NPD/IN will notify the DO on how to proceed with the loss (grant relief or collection from the agent).
(2) If the loss is $ or less, an informal investigation must be performed by the DO.
(a) If the loss is attributable to the DO, the primary deputy DO must conduct the investigation.
(b) A written investigatory report is submitted to DFAS-NPD/IN within 30 days.
(c) DFAS-NPD/IN reviews the ROI and makes appropriate recommendations of liability.
(d) DFAS-NPD/IN will notify the DO on how to proceed with the loss (grant relief or collection from the agent).
(3) The investigatory reports are submitted in support of the Quarterly Minor Loss Report.
(a.) A minor loss of funds is completely processed when all actions directed by DFAS-NPD/IN are completed.

9. Process a Major Loss Accountable individual records the loss.
Accountable individual turns-in the loss.
Prepare an OF 1017-G Journal Voucher.
Prepare a cumulative DD Form 2667.
Record the loss on the DD Form 2657.
Record the loss on the SF 1219.
Investigate the loss.
Process a relief or denial of relief of liability.
Show Slide 9: Process a Major Loss
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: Refer the learners to the training aid (TA 1)
Facilitator’s Note: Refer the learners to DODFMR r, volume 5, paragraph
The accountable individual must record the loss on the DD Form 2665 prepared for the day’s business. Facilitator’s Note: Refer the learners to the training aid (TA 1), page 3
The accountable individual makes a turn-in using the Statement of Agent Officer’s Account (DD Form 1081) to turn-in the loss. This in no way relieves the individual of responsibility for the loss. Facilitator’s Note: Refer the learners to the training aid, page 4
Although not stated in DODFMR Volume 5, Chapter 6, an OF 1017-G Journal Voucher should be prepared as an additional tracking tool of the irregularity. Also note that you cannot process the overage in DDS without also processing the OF 1017-G. Facilitator’s Note; Refer the student to TA1, page 2.
Prepare a Subsidiary Accountability Record (DD Form 2667) to account for the loss. The DD Form 2667 is used to keep a cumulative record of losses for every day that there is a loss of funds. This form is kept on file with the DD Form 2657 as a subsidiary record. As with a minor loss, the DD 2657 will have a simultaneous decrease (Line ) and a simultaneous increase (Line 7.3). Facilitator’s Note: Refer the learners to the training aid, page 5 and 6
Record the loss on the Statement of Accountability (SF 1219). Facilitator’s Note: Refer the learners to the training aid, page 7.
(1) Prepare the SF 1219 following normal procedures.
(2) Line 7.3, Losses of Funds, will be increased.
(3) The appropriate cash on hand line (lines 6.1 through 6.9) will be decreased.
Facilitator’s Note: Refer the learners to DODFMR R, volume 5, Table 6-2
f. Investigate the loss of funds.
(1) The DO reports the loss in writing to the Commander within 24 hrs of discovery of the major loss.
Commander reports the loss to DFAS-NPD/IN within 24 hrs of notification; convenes/recommends an investigation and appoint an Investigating Officer (IO)
IO cannot have a vested interested interest in the case
Commissioned officer (O-4 and above) or civilian equivalent and higher ranking than the person under investigation
Not in the chain of command of the DO or agent
(3) The IO conducts a formal investigation and prepares a Report of Investigation (ROI) making appropriate findings and recommendations; must be completed within 90 days and submitted to DFAS-NPD/IN thru Commander.
(4) DFAS-NPD/IN reviews the ROI and makes recommendations on liability
(5) The commander reviews the ROI and makes any additional findings and recommendations deemed pertinent, including whether or not relief of liability should be granted.
The DO/Agent is notified on the recommendations of DFAS-NPD/IN and give guidance on the relief or collection of the loss.
DO takes actions based on DFAS-NPD/IN’s guidance (process relief or collection from agent). It is important to note that the case is not considered closed out and resolved until these actions have been completed and a copy of the forms are sent to DFAS.

10. Process an Illegal, Incorrect or Improper Payment
No separate accounting is required.
Take aggressive collection action.
Investigate the loss.
May request relief of liability.
Show Slide 10: Process An Illegal, Incorrect or Improper Payment
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: Show the learners to DODFMR R, Volume 5, Table 6-5
a. No separate accounting on the DD Forms 2657 and 2667, and the SF 1219 is needed as the erroneous payment has been charged to a valid appropriation and the payment already made.
b. Take aggressive action to recoup the erroneous payment from the payee.
(1) If recouped, credit the monies to the appropriation from which disbursed.
(2) If recoupment cannot be made within the time frames established by DoDFMR, Volume 5, Chapters 28, turn over to DFAS for collection action.
Facilitator’s Note: Refer the learners to DODFMR R, Volume 5,
c. Investigate the loss.
(1) Formal Investigation is required is fraud is suspected or deemed necessary by the Commander.
If no fraud is involved, an informal investigation (similar to a minor loss of funds over $300.00) must be conducted.
The ROI is then sent to DFAS-NPD/IN thru the Commander (60 days for informal/90 days for formal)
DFAS-NPD/IN then reviews the ROI and makes recommendations of liability
If liability is found, the accountable individuals may make a rebuttal within 30 days of the decision
DFAS-NPD/IN will then direct the DO on the appropriate course of action (collection or relief)
Facilitator’s Note: The beginning of the three-year statue period is generally considered to be the end of the period covered by the applicable SF 1219.

11. Process an Overage of Funds
Do not offset an overage against a loss of funds
Prepare a cash collection voucher
Prepare a DD Form 2667
Investigate the overage
Submit a Quarterly Overage Report to DFAS
Show Slide 11: Process An Overage of Funds
Facilitator’s Note: Facilitator read and facilitate discussion using the slide)
Facilitator’s Note: refer student to 0605 and Do not offset an overage against a loss of funds (060502)
exception: only if the two transactions are deemed to be related and can be documented.
Prepare a cash collection voucher (060502)
-money collected into Budget clearing account (F3875) and/or Forfeiture of Unclaimed Money and Property (R1060).
Prepare a DD Form 2667 – will be a separate DD 2667 to track overages ( and ).
Investigate the overage – no requirement to investigate, unless there is an indication of fraud/criminal activity; overages that are $750 or more are reported to the Commander.
Submit a Quarterly Overage Report to DFAS (060504).

12. LSA #1 Check on Learning Show Slide 12: LSA 1, Check on Learning
Facilitator's Note: Facilitate discussion on answers given
Q 1. What are the three types of fiscal irregularity that we covered in this LSA?
Q 2. Do you need a separate accounting on the DD Forms 2657 and 2667, and the SF 1219?

13. LSA #1 Summary Show Slide 13: LSA 1 Summary
Facilitator Note: During this lesson, we discussed the three types of fiscal irregularity and responsibilities.

14. Practical Exercise Show Slide 14: Practical Exercise
Facilitator’s Note: (Facilitator read) this practical exercise consists of 2 parts. For Part 1 you will be required to answer 14 multiple choice questions. Answer the questions by circling the letter corresponding to the best answer for each question. For Part 2 you will be given 4 cases to consider. You must determine who was responsible for the situation that occurred, what caused the situation, and what should be done to prevent the situation from happening again. You have 30 minutes to complete this practical exercise.

15. Writing Assignment Show Slide 15: Writing Assignment
Facilitator’s Note: There are 5 different scenarios to assign to learners. The learners are to complete a one page Memorandum for Record (MFR) to their Commander (listed on the scenario); MFR should state the nature of the irregularity and what course of action needs to be done to resolve the irregularity. Once the MFR has been completed and turned in, learners should break up into groups based on the scenario they completed (i.e. all learners who wrote the MFR for scenario #1 would break up into a group) and discuss with each other what they wrote about and how they came to that conclusion. Additionally, instructor may present the scenarios to the class for review/revisit to ensure learners have an understanding of the lesson.

16. TLO Check on Learning Show Slide 16: TLO Check on Learning
Facilitator's Note: At this time break class into 4 groups. Each group take out paper and as a group, write down 4 questions from the lesson that they just received. Give them about 7-10 minutes. Once all groups have 4 good questions, have each group pass their questions to another group and have them answer them. Give them about 7-10 minutes to answer. Once all questions have been answered, have each group read their questions and answers and Facilitate discussion on answers given.

17. Terminal Learning Objective
ACTION: Resolve Irregularities in a Disbursing Officer's account
CONDITIONS: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must demonstrate proficiency with:
Identify the three types of fiscal irregularity
Show Slide 17: TLO Summary
Action: Resolve Irregularities in a Disbursing Officer's account
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must demonstrate proficiency with:
Identify the three types of fiscal irregularity Or
Facilitator's Note: During this lesson, we discussed the three types of fiscal irregularity and responsibilities.
Facilitator's Note: Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.