[Payment for Supplies and Nonpersonal Services]
[From the U.S. Government Publishing Office, www.gpo.gov]
WAR DEPARTMENT TECHNICAL MANUAL
PAYMENT FOR
,■ .J;
SUPPLIES AND
NONPERSONAL
SERVICES
WAR DEPARTMENT ■ 1 DECEMBER 1943
NTS" LIBRARY.
WAR DEPARTMENT TECHNICAL MANUAL
TM 14 - 5 04
PAYMENT FOR
SUPPLIES AND
NONPERSONAL
SERVICES
W A R DEPARTMENT
DECEMBER 1943
United States Government Printing Office Washington • 1944
TM 14-504
1 Dec 43
WAR DEPARTMENT, Washington 25, D. C., 1 December 1943.
TM 14-504, Payment for Supplies and Nonpersonal Services, is published for the information and guidance of all concerned.
[A. G. 300.7 (22 Dec 43).]
By order of the Secretary of War :
G. C. MARSHALL,
Chief of Staff. Official ;
J. A. ULIO,
Major General,
The Adjutant General.
Distribution :
D(2);B(2);C14(5);X.
(For explanation of symbols see FM 21-6.)
1 Dec 43
TM 14-504
CONTENTS
paragraphs
CHAPTER 1. FISCAL FEATURES__________________________________________ 1-5
CHAPTER 2. PUBLIC VOUCHERS FOR PURCHASES AND SERVICES OTHER THAN PERSONAL______________________________________________________________ 6-8
CHAPTER 3. SUPPORTING PAPERS TO VOUCHERS_____________________________ 9-12
CHAPTER 4. PROMPT PAYMENT OF BILLS AND ACCOUNTS 13-17
CHAPTER 5. CONDITIONS AFFECTING PAYMENTS_____________________________18-23
CHAPTER 6. PAYMENTS REQUIRING SPECIAL CONSIDERATION.
Section I. Payments for telephone, telegraph, and teletypewriter service__________________________________________________________24-28
II. Payments under leases_________________________________29-31
III. Payments for coal_____________________________________32-36
IV. Payment of transportation accounts____________________37-39
V. Payment of ration and savings accounts________________40-43
VI. Remittance of taxes collected on commodities sold not for the exclusive use of the United States---------------------44-48
VII. Miscellaneous_________________________________________49-52
CHAPTER 7. FISCAL FEATURES OF INTERDEPARTMENTAL PROCUREMENT 53-67
INDEX
TM 14-504
1 Dec 43
FOREWORD
Changes to this manual will be supplied on a page basis, and will be published as required. As change pages are received they will be inserted in their proper place, and the replaced pages destroyed.
Each page of the manual bears a date in its upper inside corner. This date is the date of the publication. Pages which represent changes will carry the date and number of the change.
Paragraphs are numbered consecutively throughout the entire book. Paragraphs carrying decimal suffixes indicate newly added material; for example, a paragraph numbered 23.1 represents the first main paragraph following paragraph 23.
Pages are numbered consecutively throughout the book. If new pages are added within the book the added pages will carry alphabetical suffixes—“A,” “B,” “C,'’ and so on. For example, if a new page is added between 51 and 52, the page will be numbered 51-A. A second additional page in the same place would be numbered 51-B, and so on.
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TM 14-504
1-2
CHAPTER 1
FISCAL FEATURES
1. General. Regulations governing the actions of the various purchasing and contracting officers of the War Department are published in “War Department Procurement Regulations.” It is the duty of disbursing officers to make payment under all purchase orders and contracts entered into by purchasing and contracting officers pursuant to such regulations. As a prerequisite to payment the disbursing officer must be furnished with papers—or in certain instances, vouchers supported by such papers— which will serve as evidence that a legal disbursement of public funds has been made, Generally speaking these papers consist of— a. Contracts or purchase orders accomplished and furnished in accordance with War Department Procurement Regulations.
Z>. Invoices from vendors.
c. Receiving reports accomplished and furnished by officers receiving the property in accordance with AR 35-6560. In making payments for supplies and nonpersonal services, reference should be made to the above re-ferred-to procurement regulations whenever necessary.
2. Responsibility of procuring officers with respect to allotments of funds.
a. Allotments Not To Be Exceeded, Officers who are charged with making procurements will be held strictly responsible that obligations incurred by them do not exceed the amounts authorized in the allotment, and that such obligations include no other purpose than that authorized therein. Copies of vouchers required to be furnished by disbursing officers to obligating (fiscal) officers, under the provisions of chapter 2 will be used by those obligating (fiscal) officers as vouchers to support the entries of expenditures on the accounting records pertaining to allotments issued to them. Every contract for delivery of definite quantities of supplies on a definite date, purchase order, call on contractor, delivery order, or other instrument issued by procuring officers
to whom such allotment is given, will contain the following statement:
The supplies and services to be obtained by this instrument are authorized by, are for the purpose set forth in, and are chargeable to allotments below enumerated, the available balances of which are sufficient to cover the cost thereof.
Example'
Identification No. Amount
7-2223 P 422-08 A 212/40502_________$1, 280
8-2526 P 412-09 A 212/40905_________ 1,720
$3,000
A Identification Reference. The identification number consists of—
(1) Allotment advice number, consisting of the code number of the operating agency as published in the War Department Fiscal Code and the serial or identifying number of the allotment, preceded by a dash. This information may be obtained from the allotment advice number appearing on War Department Form No. 23, revised 2 January 1943, War Department Form No. 46, or War Department Form No. 53, as the case may be.
(2) Letter “P” followed by the project number and, where desired or required, a dash and the object classification number as published in the War Department Fiscal Code.
(a) This information may be obtained from column 2 of the allotment advice or suballotment advice, or from column 1 of the purchase authorization advice, as the case may be.
(5) The object classification number need not be shown on the allotment unless it be desired to limit expenditures for a specific purpose designated by such a number (for example, 01, personal services). The project number should be shown, wherever possible, on the allotment. Where this is impracticable, as in the case of working fund allotments, the general purpose number 99 may be used. (See (c) below.)
(. (16 Comp. Gen. 1128.)
7. Preparation of Standard Form No. 1034.
a. General. (1) When prepared by disbursing officers. Upon the receipt of purchase orders or delivery orders with corresponding vendor’s invoice in triplicate (only the original of which will be signed) and receiving reports in duplicate or in case of nonpersonal services the required certificates prescribed in chapter 3, public voucher for payment of such invoices will be prepared and the administrative certificate on the voucher will be signed by an officer of the finance office, or as prescribed in f (3) (a) below. Officers preparing the vouchers will accept from duly accredited inspectors their certificates of inspection and acceptance on receiving report as authority for executing administrative certifi
cate on Standard Form No. 1034. Officers charged with furnishing inspectors to inspect supplies at points of origin will furnish the disbursing officer designated to make payment with the names and certified specimen signatures of all inspectors authorized to inspect and accept supplies in behalf of the United States, indicating their field of operations. If the inspector is authorized to operate for all stations of his arm or service, the words “General authority” will be used in indicating his field of activity; but if he is authorized to operate only for a specific station, or stations, designation thereof will be made. (AR 35-1040.)
(2) When prepared by other than disbursing officer.—Procuring officers may initiate, prepare, and certify vouchers covering the procurement of supplies and nonpersonal services. In such cases, the original signed copy of the receiving report will not be required to be furnished to the disbursing officer. Only an unsigned copy of the receiving report will be required, as the accomplished administrative certificate attest to the receipt of the supplies. The preparation of vouchers by the procuring officers does not relieve disbursing officers of their responsibility for the correctness of expenditures requiring their audit, including examination of necessary supporting papers. The certifying officer shall be held responsible and accountable for the existence and correctness of the facts set forth on all vouchers that are prepared and certified to by any officer of the procuring agency including the correctness of computations shown on certified vouchers and on any required supporting documents. (AR 35-1010.)
b. Number and Distribution of Copies. (1) Number of copies. Standard Form No. 1034 will be prepared in original, duplicate (Standard Form No. 1034a) and generally triplicate (as indicated in (2) (6) below). Additional copies may be made where local circumstances require.
(2) Distribution of copies.— (a) Original and duplicate will be distributed as prescribed for all disbursing vouchers.
(&) Triplicate—disbursing officers will trans
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TM 14-504
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mit copies (triplicate) of paid vouchers to the respective fiscal components by which the underlying allotment or suballotment accounts are maintained with the following exceptions:
1. Vouchers chargeable to general and open allotments.
2. Vouchers covering ration and savings accounts; armory drill pay; National Guard; and accounts of common carriers for transportation of persons and things.
(3) Preparation of triplicate. In the preparation of vouchers (either by disbursing officers or by other War Department components) of which paid copies are required to be returned to fiscal components as provided in (2)(Z>) above, a blank sheet of paper may be used as an insert in order to obtain a carbon copy of the voucher. After payment of the voucher has been made, the insert copy will be completed by the disbursing officer to show voucher number, date of payment, name and symbol number of the disbursing officer by whom paid, and his station identification. Promptly thereafter, the completed insert copy will be transmitted to the fiscal component concerned. In order to insure that paid voucher copies will be transmitted to fiscal components as required, the insert copy of all such vouchers as are prepared by disbursing officers or procuring officers will be stamped: “Forward copy of voucher to (name, address, and station number of fiscal component).”
Note. Alternate method of furnishing paid voucher information. In lieu of the insert copy method of transmitting paid voucher information to fiscal components a card report method may be used in cases where this method is more feasible and practicable, such as for reimbursement for transportation of dependents or complicated vouchers covering reimbursement of per diem. Such card report will cite the allotment number, order number, source, date, name of the traveler or payee and the amount, together with the name, station identification, and voucher number of the disbursing officer. (AR 35-1040.)
c. Heading. The heading will be filled in to show “War Department” which may be followed by the name of the arms or service preparing the voucher, that is, Finance Department, Ordnance Department, etc., giving the place and date at which the voucher is prepared. The name and address of the corporation, firm, or person rendering the services or furnishing the articles for which payment is made will be shown and the number of the payee’s invoice when available may be shown in order to identify the account being paid.
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d. Body. (1) First column will show number and date of preparation of purchase order or delivery order.
(2) Second column will show date or dates of delivery of supplies or performance of services.
(3) Third column will include in the heading the terms of discount if applicable to payment. Description of supplies or services will be shown unless the invoice showing this data is attached to the voucher in which event appropriate reference may be made in the third column to the invoice, such as: “Per detailed bill herewith.” Special notations (see par. 8) will normally be made in this column.
(4) Columns four, five, and six need not be used in the event invoice or invoices are attached as explained in (3) above, otherwise column four will show for each item quantity in terms of the unit of measurement shown in the sixth column. Column five will show for each item the price in terms of unit of measurement shown in column six. Column six will show the unit of measurement for each item.
(5) Column seven “Amount” will show extended value for each item. Where reference is made to the supplies or services itemized on the invoice, the total for each individual invoice will be shown in this column and where continuation sheets are used (Standard Form No. 1035), the total for each sheet will be brought forward to this column.
(6) Where payment is made for supplies or nonpersonal services procured on a numbered contract, the number and date of the contract will be entered in the space provided. Also to be entered in this block are the requisition number (if any), date, and the date of receipt of invoice by the officer preparing the voucher.
e. Vendor’s Certificate. The certificate which reads as follows:
“I certify that the above bill is correct and just; that payment therefor has not been received; that all statutory requirements as to American production and labor standards, and all conditions of purchase applicable to the transactions have been complied with; and that state or local sales taxes are not included in the amounts billed.”
is to be signed by the payee or his duly authorized agent and is commonly known as the Vendor’s Certificate. This certificate must be signed in ink or indelible pencil, showing the title of the signator. In lieu of completion of the Vendor’s Certificate on the voucher, this certificate may be executed (in full) on the
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pertaining invoice in accordance with the limitation described in paragraph 11. Where the Vendor’s Certificate is accomplished on the invoice, reference should be made in the certificate space on the voucher, such as “See certified bill attached.” (AR 35-1040.)
/. Administrative Certificate. (1) Definition. The administrative certificate on the voucher is a receiving certificate; that is, it is evidence of the receipt and acceptance of the articles purchased or services performed, either under some form of written agreement relative to which the contracting officer has certified, or without written agreement under the circumstances stated in the certificate. For supplementing administrative certificates that are required in addition to the one as stated on the voucher see chapters 3 and 6. (AR 35-1040.)
(2) Certifying officers. The term “Certifying officer” means a person duly authorized to attest to the correctness and justness of the account for services rendered or supplies furnished as set forth on pay rolls or vouchers to be submitted for payment. Certifying officers will furnish disbursing officers with authenticated specimen signatures on War Department Form No. 35 (War Department Signature Card). (AR 35-1040.)
(3) By whom signed, (a) By officers. The correctness of the facts stated on a' voucher and the justness of the account must be certified by a commissioned officer, a warrant officer, or any person authorized by the Secretary of War, except when some other mode of authenticating the same is authorized in Army Regulations. (See a above.)
(&) By Civilian officials and/or employees. Certification of vouchers as prescribed in (a) above may be made by civilian officials of the War Department who have been designated as contracting officers or a contracting officer’s representative in accordance with Procurement Regulations No. 3, and are authorized to execute the administrative certificate on vouchers. Other civilian officials and employees of the War Department may be specifically desig
nated by the Secretary of War under the provisions of (a) above to execute the administrative certificate. (AR 35-1040.)
g. Accounting Classification Block. (1) How prepared. The accounting classification block on Standard Forms will be filled in by administrative officers as follows:
Under the heading “Accounting classification” in column “Appropriation, limitation or project symbol” will be entered the appropriation symbol and the suffix of the limitation, if any is involved, to be charged. In the column “Appropriation title” will be entered the appropriation title in abbreviated form and the allotment chargeable, that is, FSA 1942-44, 1-71 P 411-01. In the column “Limitation or project amount” will be entered the amounts chargeable to appropriations which have limitations, listing separately the amounts chargeable to each limitation suffix number including portions of such appropriations for which indication of limitation suffix numbers is not required to be shown (this portion being entered only when payment from the same appropriation with and without a suffix number is made on the same voucher). In the column “Appropriation amount” will be entered the total amount chargeable to each appropriation which has limitations (including the amounts chargeable to suffix numbers and to the portion of such appropriation for which indication of limitation suffix numbers is not required to be shown), and amounts chargeable to appropriations which have no limitations. If sufficient spaces are not available on vouchers for accounting data, W. D., F. D. Form No. 35 or 35A (Analysis of Vouchers) will be used. Appropriations assigned limitation numbers .002, .003, etc., indicates that all other expenditures under such appropriations are chargeable to limitation .001. However, by mutual understanding with the General Accounting Office, it is unnecessary to show .001 on accounting papers, the absence of the limitation indicating that the amount pertains to “.001 all other.”
For example:
ACCOUNTING CLASSIFICATION (FOR COMPLETION BY ADMINISTRATIVE OFFICE)
Appropriation, limitation or project symbol Appropriation title Limitation or project amount Appropriation amount
(212/40905) .406 212/40502 212/40705.003 212/40705 ESA 1942-44, 8-234 P 110-06 S&TA 1942-44, 7-283 P 452-03 ACA 1942-44, 2-633 P 122-09 ACA 1942-44, 2-635 P 423-09 $53. 46 455. 00 333. 50 $53. 46 217. 50 788. 50
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(2) Reports of changes subsequent to payment. Whenever, subsequent to payment, it becomes necessary for a disbursing officer to make a change on a voucher which affects an allotment serial number, purpose number, appropriation number, or the amounts chargeable to each as originally stated in the voucher, he will notify the fiscal component to which a copy of the voucher or other notice of payment was forwarded in accordance with 5(3) above, as to the change made. (AR 35-1040.)
h. Check Notation and Cash Receipts. (1) General. If a voucher is paid by check no receipt will be required, but if paid in cash a receipt will be obtained. A voucher for a payment made will have noted thereon the number, date, and amount of checks given and the depositary on which drawn. If payment is made in currency, wholly or in part, the facts will be stated and a receipt given for the currency. (14 Comp. Gen. 382.) (AR 35-1040.)
(2) Payment by check, (a) In person. If payment is made by check to the order of any company (incorporated or unincorporated) or firm or individual by name, and the fact that the check has been so drawn is stated on the voucher, giving its number, date, amount, and United States depositary on which drawn, the certificate to the voucher may be signed by an officer, attorney, or agent of the company, or by an attorney or agent of the firm or individual, stating the capacity in which he signs, without filing with the voucher evidence of his authority to sign. In all such cases the disbursing officer will deliver the check to such person only who, to his satisfaction and by positive identification, is authorized by the principal to certify to the voucher and receive the check. (2 Comp. Dec. 295.) (AR 35-1040.)
(5) By mail. Checks covering all classes of payments will be mailed, where it is impossible to make positive identification of the payees, to the payees’ mail address on record. (AR 35-120.)
(c) Delivery to third, party. Where it is impracticable to deliver checks drawn on pay rolls or other vouchers to the individual payees in person or to mail such checks to individual payees, disbursing officers are authorized to deliver or mail such checks to an official designated by post commanders in writing or an official of similar authority, for distribution to payees. (AR 35-120.)
(<7) Order in which, checks drawn. Checks of disbursing officers will, so far as possible, be
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drawn in numerical order with the vouchers, so that the lowest number check will pay the first voucher, the next number the second voucher, and so on throughout the account. No more than one voucher will be paid by the same check unless the vouchers paid on such check follow each other in sequential order. Check numbers will be shown on vouchers and voucher numbers or object for which drawn will be shown on checks.
(e) Preparation of checks. If the voucher (Standard Form No. 1034) covers a payment for nonpersonal services or supplies, the payee’s account number will be stated in the space “object for which drawn” if such information is available on the payee’s invoice or bill, or in the absence of the payee’s account number, if the voucher covers a payment under a contract, the contract number will be stated. Where numerous invoices are paid by one check, and it is therefore impracticable to list the payee’s account or contract numbers in the space, “Object for which drawn,” the check will be accompanied by copies of the invoices, if available, or an identifying list thereof.
(3) Payment in cash, (a) Power of attorney. Payment in currency will not be made to the holder of a power of attorney or to a holder of an instrument operating as a transfer or an assignment. (AR 35-1040.)
(5) Payments to companies. If payment in currency is made to an incorporated or unincorporated company, the money will be delivered to, and the voucher certified to and receipted by a duly authorized officer or agent of the company, the certificate and receipt to be signed with the company name, followed by the autograph signature of the officer, with his title, or of the agent to whom the money was delivered, and except as prescribed in (c) below the receipted voucher will be accompanied by evidence showing his authority. This evidence will consist of extracts from the articles of incorporation or association, the bylaws, or the minutes of the board of directors duly certified by the custodian of such records (under the company seal, if there be one), showing that the signer is properly vested with authority to receive and receipt for money due the company. (AR 35-1040.)
(c) Payment of small sums to corporations. Receipts for small sums paid in currency to a corporation, such as a railroad, telegraph, turnpike, transfer, express, steamboat, hotel, newspaper, or ice company, for an occasional
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service rendered may be signed and the vouchers certified by the local agent in charge of the business of the company at the place where the service is rendered or where it begins or terminates. The certificate of the officer who made the payment that the person to whom payment was thus made was then the local agent of the company in charge of its business at the place designated will be sufficient evidence of the agent’s authority to certify to the vouchers and to receipt for the money paid. (AR 35-1040.)
((5) (c)£ above.
(2) Notation “Negotiated Contract” or statement of authority for negotiation. See f above.
(3) Purchase from contingent funds. The following supplemental certificate is prescribed for vouchers involving payment for articles
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purchased from the contingent fund appropriated to the Army Air Forces, or to any supply arm or service:
It is further certified that the above articles chargeable to contingent appropriations were procured after direction given as required by section 3683, revised statutes (31 U. S. C. 675; M. L., 1939, sec. 1742).
(4) Supplies, etc., for 'motor-propelled passenger-carrying vehicles. In order to enable disbursing officers to furnish the General Accounting Office with information required by that office in connection with payments from appropriations covering supplies, equipment, spare parts, accessories or services for motor-propelled passenger-carrying vehicles, all procuring instruments covering the purchase of such supplies, equipment, spare parts, accessories, or services for use in the operation, maintenance, or repair of motor-propelled passenger-carrying vehicles will bear the following certificate:
None of the supplies .or services covered by this instrument is to be used in violation of legal restrictions quoted in War Department Circular No 175 1943. ' ’
(5) Long-distance telephone tolls. See paragraph 26 have clone elsewhere than in the District of Columbia for the exclusive use of a field office of this department (or establishment), and that same is of the class and within the limitation specified in paragraph_of the regulations
of the Joint Committee on Printing or in the special authorization of the committee, a copy of which authorization is attached hereto or to voucher
(Describe, giving number, etc.)
(See Procurement Regulation No. 6, and AR 35-1040.)
10. Delivery orders.
a. Contracts for Supplies. Delivery orders are usually used to request delivery of supplies under contracts which provide for delivery from time to time as required.
b. Contracts for Services. When a contract provides for the furnishing of services as required from time to time, the services will be confirmed periodically, or after the services have been furnished, by means of a delivery order, upon which the services furnished will be enumerated and covered by the following certificate:
I certify that the services covered by this delivery order have been rendered in accordance with the terms of the contract and the specifications covering same. (See par. (6).)
c. Copies Required by Disbursing Officer and Disposition Thereof. When a delivery order is used under a and b above, the disbursing officer will be furnished with the original and one copy thereof. The original will be attached to the original voucher and the duplicate to the duplicate voucher.
TM 14-504 9-11
11. Vendor’s invoices.
a. General. If a vendor submits for payment an invoice or bill on which is shown the required certificate duly signed (see ) For “cost-plus-a-fixed-fee” contractors’ and subcontractors’ invoices or vouchers covering transactions in States or municipalities which do not exempt the United States from taxation, the general certificate prescribed in (1) above will be used with the deletion, or noninclusion, of the statement “that State or local sales taxes are not included in the amounts billed.” (See MS. Comp. Gen. A-51607, A-49009, 9 February 1942.)
(4) Vouchers in favor of the Defense Plant Corporation, covering surplus machine tools and other equipment, may be accepted for payment with a portion of the payee’s certificate on Standard Form No. 1034 deleted, so that the certificate will read as follows:
I certify that the above bill is correct and just; and that payment therefor has not been received.
(5) Posted tank wagon prices. Where a contract provides for the purchase of gasoline, kerosene, fuel oil, etc., at posted tank wagon, barge or service station price (not to exceed a stated maximum), a certificate substantially as follows will be added to the invoice or voucher in addition to the certificate prescribed in (1) above:
I certify that tank wagon (or barge, service station, etc.) price, at date and point of delivery, is as stated herein. (See MS. Comp. Gen. B-33371, 29 May 1943.)
(6) Form in which, vendor's certificate will be furnished. The certificate prescribed in (1) above may be printed, stamped, typed, or written on vendor’s bill of sale or invoice and must be signed (in original only) by the vendor or its duly authorized representative. The duly authorized representative should include his title in signing the certificate. Such title need not be that of an officer of a corporate vendor, but may be that of any authorized representative, that is, “Chief Clerk.” (See MS. Comp. Gen., A-51607,26 August 1937, and A-^1607, A-49009, 15 August 1941.) In cases where it is physically impossible to include the additional certificate on the face of the voucher or invoice, the certificate will be placed on the reverse of the voucher or invoice. Additional (separate) sheets for, duplicates, or copies of certifications only, will not be accepted by the General Ac-counting Office. (See MS. Comp. Gen., A-51607, A-49009, 2 April 1938.) Under no conditions will the certificate on Government vouchers or on invoice forms to be attached to such vouchers be signed in blank or at any time prior to the submission of the voucher or invoice, but only after delivery or performance by the claimant. To do so may result in the submission of a false claim against the Government for which the person signing the certificate may be held liable under the law. (See MS. Comp. Gen., A-51607, A-49009, 2 April 1938, 2 June 1938, and 15 August 1941.)
d. Number of Copies and Disposition. Invoices will be submitted by vendors in triplicate (only the original of which will be signed) and disposition will be made as follows:
(1) Original. The original with the certificate of the vendor will be fastened securely to the original voucher and fully identified therewith. (See a above.)
(2) Duplicate. The duplicate copy will be attached to the duplicate copy of the voucher to be retained in the files of the disbursing officer.
(3) Triplicate. The triplicate will be forwarded by the disbursing officer, as desired by the supply agency concerned, to the officer accountable for the supplies covered thereby.
12. Receiving reports.
a. General Procedure. (1) Property procured under contract or purchase order will be listed on receiving report prepared on W. D.,
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Q. M. C. Form No. 431 (Receiving report) or, if received by a sales store, W. D., Q. M. C. Form No. 393. (AR 35-6560; 35-6660.)
(2) Certification. The original of the receiving report will be duly certified by the person who inspects and accepts the property for the Government. Such person may be the contracting officer or his duly accredited inspector or the officer who will assume accountability or his representative. (AR 35-6560.)
(3) Copies to be furnished disbursing officer. The original certified receiving report and one unsigned carbon copy will be forwarded to the disbursing officer designated by the contract or purchase order to make payment to the vendor, except that when a receiving report lists only articles exempted from property accountability under the provisions of AR 35-6520 and/or expendable property covered by a certificate of expenditure for immediate consumption (see AR 35-6620), only the original signed receiving report is required by the disbursing officer and a carbon copy need not be forwarded to him. When the voucher is certified by the procuring officer, it is not necessary that the original receiving report be furnished the disbursing officer, the signature of the procuring officer to the administrative certificate on the voucher being sufficient to establish the fact that the supplies have been duly inspected and accepted. However, the carbon copy of the receiving report will be furnished in accordance with (3) above for property audit purposes. (See par. 7 (2).)
b. Disposition by Disbursing Officer. (1) Original. The certified original will be retained by the disbursing officer with the duplicate copy of the voucher as evidence of his authority for accomplishing the voucher and executing the administrative certificate thereon.
(2) Carbon copy. When payment has been made, the disbursing officer will have this copy notated to give the following data, and forwarded to the fiscal officer of the service command in which the property will be accounted for: Paid on Voucher________________________,
(station)
accounts of _______________, for_______________
(See c below.)
c. Disposition by Disbursing Officer When Receiving Report Covers Supplies Received by a Sales Store. When this type of receiving report is received the following procedure will
TM 14-504 ■12 be followed in lieu of that prescribed in b above:
(1) Upon receipt of the receiving report the disbursing officer will have the prices shown thereon checked against those shown on the contract or purchase order. If there is a disagreement he will take steps immediately (through direct correspondence with the purchasing and/or receiving officer) to have the discrepancies corrected. When the necessary corrections have been made and the report returned the disbursing officer will have the unsigned copy stamped with the designation of his office and the date, authenticated by his initials or those of his authorized representative and forwarded at once without letter of transmittal to the fiscal officer of the service command in which the post, camp, or station concerned is located. The signed original receiving report showing the date upon which the unsigned copy was forwarded to the service command fiscal officer will be retained as authority for executing the administrative certificate on the pavment voucher. (AR 35-6660.)
(2) When the account is paid, if there is a material difference between the amount paid and the amount shown on the receiving report (disregarding trade discounts) the service command fiscal officer will be advised accordingly. Corrected copies will be processed and transmitted in the same manner as the original copies and if payment has already been made on the original copy, a full statement of the circumstances will be forwarded to the service command fiscal officer with the corrected copy. (AR 35-6660.)
d. Procurement of Nonpersonal Services. In case of procurement of nonpersonal services rather than supplies, certification will be made on the contract, purchase order, or delivery order in accordance with paragraph §b (6) or 10Z> in lieu of a receiving report.
e. Property Procured by Organizations Away From Home Station. See chapter 3, TM 14-505.
/. Property Procured Under Exceptional Conditions. Special procedures (differing from that described in a, &, and c above) have been prescribed for receiving property procured under exceptional conditions such as cost-plus-a-fixed-fee contracts and property procured for defense aid. (AR 35-6560.)
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1 D
PROCURING INSTRUMENTS I. PURCHASE ORDER
2. RO. and BID 3. CONTRACT
INVOICES
RECEIVING REPORTS
NUMBERED PROCURING INSTRUMENTS
RECEIVING REPORTS INVOICE
FILE CLERK
STAMPS PAPERS BILLS REG. ENTRIES RECORDS DISCOUNTS AND DISBURSEMENTS
TRI. VOUCHER FOR BILLS REGISTER ENTRY
PRINCIPLE CLERK SUPERVISES FINAL AUDITS
VOUCHERS
1
ACCOUNTING
UN-NUMBERED PROCURING INSTRUMENTS
PAID BY CASH .............
VOUCHERS
| CASHIER |
CASH VOUCHERS
ORIG. VOU.
TO ARMY REGIONAL ACCOUNTING OFFICE
DUP. R.R. TO S.C.FD.
FINANCE OFFICER
SIGNS NO. 1034
[PAID BY CHECK
■■■■■■■HsaMaBBas
SECTION
PAID BY CHECK
DUP VOU. TO
OFFICE
FILES
Fiffure 1. Commercial accounts.
CLERK AUDIT , TYPE AND ASSEMBLE VOUCHERS
CHECK
SECTION
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ALL PAPERS FROM INCOMING MAIL TO OUTGOING MAIL
Figure 2. Work flow chart, commercial accounts.
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CHAPTER 4
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PROMPT PAYMENT OF BILLS AND ACCOUNTS
13. General. Finance officers will not pay an account until clue, but payments will be made promptly of all accounts as they become due and payable. When it becomes evident that payment of invoices will be delayed because of the necessity for advance decisions, advice of higher authority, correspondence with procuring officers, or other similar causes, the vendor will be notified by letter, which may be a form letter, advising him of the prospective delay, the reason therefor, and the probable date of settlement. (AB, 35-6200.)
Note. Payment of invoices covering perishable subsistence stores. Immediate action is to be taken by all finance officers to insure payment of invoices covering perishable subsistence stores within 48 hours after receipt. Finance officers will adopt vigorous and positive means to accomplish this purpose and any difficulty in meeting the 48-hour objective will be reported to the Office of the Fiscal Director through the service command.
14. Discounts.
a. No Consideration To Be Given Discount in Awarding Contracts. Offers of prompt payment or cash discounts will not be considered in the award of contracts or purchase orders, but if such an offer is made, the Government reserves the right to take advantage of the same according to its terms in making pavment. (See PR 1180; PR 3.)
&. Payment To Be Made Within Discount Period Where Possible. In all cases of bills for the payment of which on or before a certain date or within a certain time a cash discount is offered, advantage will be taken of the offer of such discount and payment made on or prior to the date on which the discount feature expires, if possible to do so. (AR 35-6200.)
c. Character of Offer of Discount. In general, the deduction of discounts under agreements by the Government to purchase supplies is authorized only when the vendor has made an express offer of such discounts, and a mere statement as to discounts, shown on the printed commercial bill of the vendor submitted for payment, is not generally to be regarded as such an
express offer. (23 Comp. Dec. 141; 2 Comp. Gen. 83; 5 Comp. Gen. 739.)
Note. The decisions cited above pertain to formal contracts only. In cases of informal purchases, a statement as to cash discount appearing on a dealer’s invoice should be considered an offer of cash discount of which advantage should be taken, and any protest by a dealer against deduction of such discount, on the ground that his bid or the procuring instrument was silent as to cash discount, or that the procuring instrument showed the price to be net, should be considered as a claim to be submitted to the General Accounting Office for direct settlement. (AR 35-6200.)
d. Where Question of Propriety, Discount To Be Taken. In cases in which there is involved any question, as between the Government and the payee, of the right to deduct the discount, in the interest of making prompt payments, and to save the right of the Government to the discount if it subsequently should be determined to have been properly deductible at the time of payment, the discount should be deducted and payment of the balance tendered the payee, who, if not satisfied, may accept the payment under protest and file claim in the General Accounting Office, either direct or through military channels for a refund of the amount deducted. (AR 35-6200.)
e. Where Discount Erroneously Taken, Finance Officer To Make Settlement. Vouchers for repayment of discounts erroneously deducted should be paid by finance officers without being referred to the Office of the Fiscal Director for settlement by the General Accounting Office where the facts clearly show that the vendor is properly entitled thereto.
/. Loss of Discount no Cause To Delay Payment. Request for advance decision of the Comptroller General as to the propriety of payment, or submission of an account to the General Accounting Office for direct settlement, solely because of loss of discount, is not necessary. In no case should payment be further delayed because a discount has been lost through delayed payment. (AR 35-6200.)
g. Responsibility for Loss of Discount. There is no obligation upon the disbursing officer to justify failure or to obtain waivers for
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failure to take advantage of discounts in those cases where payment is made after the expiration of the discount period. (AR 35-6200.)
Note. The General Accounting Office has no alternative but to disallow credit in the accounts of the disbursing officer for the amount of offered discounts not deducted where it is determined that they were deductible at the time of payment. (See MS. Comp. Gen., B-31627, 23 June 1943.)
15. Discount period.
a. Definition. In the absence of specific stipulations to the contrary, the discount period is generally to be considered to begin on the date of delivery of the supplies (to carrier when final inspection and acceptance are at point of origin, or from date of delivery at destination or port of embarkation when final inspection and acceptance are at these points), or the date correct bill or voucher properly certified by the contractor is received if the latter date is later than the date of delivery. (14 Comp. Gen. 721; 9 Comp. Gen. 161.)
5. Receipt by Proper Officer. Date of receipt of invoice is held to be the day on which the invoice is received in the office of the Government specified in the contract. Should the contractor fail to forward invoices to the proper office, any delay in receipt by the proper office is the direct result of the contractor’s error in submission. (See MS. A-53305 20 February 1934.)
c. Responsibility for Prompt Rendering of Invoices. The responsibility for promptly furnishing a correct invoice, or bill, for deliveries under a contract is that of the contractor and the Government is entitled to discount offered for prompt payment, if payment is made within the discount period, after receipt of a correct invoice. Date of receipt of invoice will be shown thereon.
d. Date of Payment. Date of payment for discount purposes must be considered as the date of mailing of the check. Care should be taken to see that checks are mailed the same day they are dated where there is a question of discount involved and that the date of mailing of the checks in such cases be made a matter of record. (MS. A 39516 30 November 1931; MS. B 30491 21 January 1943.)
e. Last Day of Discount Period Falling on Sunday. Where the last day of the discount period falls on Sunday, the following business day is considered as being within the discount period. (See 20 Comp. Gen. 310.)
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/. Computation of Final Date for Payment. As set forth above, the discount period is established by the date of receipt of the supplies or date of receipt of a proper invoice, whichever is later, and the final date for payment. In determining the actual final date on which payment must be made, to come within the discount period, the date beginning the period, is the day following the actual day of receipt of supplies or day of receipt of invoice, whichever is later, for example—
Goods delivered________ 1 March 1943
Invoice received_______ 4 March 1943
Terms------------------ 2%, 10 days
Final date payment must be made to come with-
in discount period___14 March 1943
(20 Comp. Gen. 310)
16. Invoice discrepancies.
a. Failure of Vendor to Submit Invoices. When invoices have not been received, disbursing officers and procuring officers are authorized to request vendors or contractors to submit invoices for supplies or services, provided the supplies or services actually have been received or rendered in accordance with the terms of the purchase order or contract. Where a vendor fails to present a claim and the appropriation becomes lapsed, the purchase order or other procuring instrument, receiving report, and any other papers connected with the claim will be forwarded to the General Accounting Office, Records Division, through the Office of the Fiscal Director, for consideration in connection with any claim which may be filed by the claimant.
b. Errors in Bills in Favor of the Government. In cases where there is an error in calculation, apparent on the face of the invoice itself, or where there are factual discrepancies between the invoice and the contract, purchase order, or receiving report, as to price, quantity, etc., and such error operates in favor of the Government, the invoice submitted will be approved by procuring officers or disbursing officers and payment will be made by disbursing officers without adjustment. Disbursing officers and contracting officers will, however, advise the vendor or contractor of such error or discrepancy and state that no further payment can be made until a properly executed invoice has been submitted for such additional amount, if any, as may be due.
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c. Errors in Bills in Favor of the Vendor. Where the error is in favor of the vendor, in ordinary cases invoices will be returned by contracting officers or disbursing officers for correction. However, in the case of obvious errors in extensions or footings where the amount is less than $1.00, procuring officers or disbursing officers will make the necessary reduction on the face of the invoice or voucher, and payment will be made of the reduced amount. Notification of vendors will be made by disbursing officers of any changes made.
d. Reduced Prices. The disbursing officers or procuring officers will accept invoices intentionally submitted for less than the contract prices, as in those cases where the vendor reduces unit prices for deliveries in large quantities.
17. Special cases.
a. Where an excise tax imposed upon a producer is properly payable by the United States as part of the purchase price of supplies, even though it is invoiced as a separate item, the discount should be taken on the entire price including tax.
Z>. Where a contract for supplies provides that, as consideration for furnishing the articles involved, the contractor should be paid the total sum specified therein, subject to a discount for prompt payment, but the contract price itself is subject to reduction with respect to such of the articles as are consigned for export shipment, the discount with respect to articles so consigned may be computed on the reduced contract price, that is, after deduction of the export differential, rather than on the full contract price, even though there is no provision to that effect in the contract. (See B-32254 1 March 1943.)
c. Where a contract for furnishing water provided for payment therefor at certain specified meter rates, with discount for prompt payment, the contractor is entitled to the full specified meter rates upon failure of the Government to make payment within the time specified for the allowance of discount. (12 Comp. Dec. 274; 16 Comp. Gen. 151.)
d. Unnecessary Withholding of Final Payments. The fact that Notices of Exception are outstanding which can be cleared by furnishing certain information or supporting papers or that the General Accounting Office has not audited prior payments is no reason for withholding subsequent or final payments, and such
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action should in no instance be taken when it is apparent that the Notices of Exception can be cleared or there are other current contracts in existence with the contractor involved from which recoupment can be made in case the Notices of Exception finally result in disallowances by the General Accounting Office. In cases of outstanding Notices of Exception (as distinguished from actual disallowances), whether or not replied to when a final payment is ready for presentation to a finance officer, payment of the final voucher may be made upon the following certificate from the certifying officer:
“Notices of Exception received on Contract No._____
can and will be replied to, giving the information required by the General Accounting Office, and I further certify that to the best of my knowledge and belief the interest of the United States will not be jeopardized by the making of this final payment
(signed)
Contracting officer or his representative.”
Such certificate will be held by the finance officer in his files attached to the duplicate voucher presented for payment.
e. Certain cost-plus-a-fixed-fee contracts issued in connection with construction projects require as a condition to final payment that the contractor execute a release of all claims against the Government arising under the contract other than such claims as are specifically excepted from the release in stated amounts set forth therein. Contracting officers, however, have been authorized to waive the contractual requirement that claims excepted from the operation of the release be in stated amounts where the claims involved are claims for reimbursement under the contract of payments arising out of any employment by the contractor in connection with the contract work and based on the maximum hour and overtime provisions of the Fair Labor Standards Act, or are claims in connection with any proceedings for the enforcement thereof. Finance officers will accept such releases, when accepted by the contracting officer, as being in full compliance with the contract provisions, and will make final payment thereagainst when otherwise proper.
f. Finance officers receiving invoices for supplies furnished during troop movements will return them direct to the railroad companies and others concerned with the advice that payment for all transactions arising during the move
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ment of troops must be obtained from the train and detachment commander at the time the supplies are furnished.
g. Canadian Firms. (1) Payments to carriers will be made by the Finance Officer, United States Army, Washington 25, D. C., for obligations incurred by the issuance of government transportation requests or bills of lading.
(2 ) Purchasing and contracting officers in the United States who make purchases in Canada will designate on the procuring instruments the usual local disbursing officers in the United States to make payment of such obligations.
(3 ) If the purchasing and contracting officer
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prepares and certifies the voucher, he will forward the completed voucher, with supporting papers, to the local disbursing officer. Upon receipt of such completed voucher, or (if the disbursing officer is to prepare the voucher) upon receipt of the necessary supporting papers, the local disbursing officer will take necessary action to make settlement of the account, where payment is to be made in United States funds. However, where payment is to be made in Canadian funds, the local disbursing officer will forward the completed voucher, with supporting papers, by franked envelope, to the Finance Officer, U. S. Army, Edmonton, Alberta, Canada, for payment. (W. D. Cir. No. 311, 1943.)
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CHAPTER 5
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CONDITIONS AFFECTING PAYMENTS
18. Restrictions on payments.
a. Payment to Other Than Original Contractor. (1) Assignment of claim. All transfers and assignments made of any claim upon the United States, or any part or share thereof, or interest therein, whether absolute or conditional, and whatever may be the consideration therefor, and all powers of attorney, orders, or other authorities for receiving payment of any such claim, or of any part or share thereof, shall be absolutely null and void, unless they are freely made and executed in the presence of at least two attesting witnesses, after the allowance of such a claim, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. Such transfers, assignments, and powers of attorney, must recite the warrant for payment, and must be acknowledged by the person making them before an officer having authority to take acknowledgments of deeds, and shall be certified by the officer; and it must appear by the certificate that the officer, at the time of the acknowledgment, read and fully explained the transfer, assignment, or warrant of attorney to the person acknowledging the same. (R. S. 3477; 31 U. S. C. 203; M. L., 1939, sec. 701.)
(2) Transfer of contract. No contract or order, or any interest therein, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall cause the annulment of the contract or order transferred, so far as the United States are concerned. All rights of action, however, for any breach of such contract by the contracting parties, are reserved to the United States. (R. S. 3737; 41 U. S. C. 15; M. L., 1939, sec. 739.)
(3) Exceptions, (a) Assignment to a hank, trust company, or other financing institution. That sections 3477 and 3737 of the Revised Statutes be amended by adding at the end of each such section the following new paragraph : “The provisions of the preceding paragraph shall not apply in any case in which the moneys due or to become due from the
United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more, are assigned to a bank, trust company, or other financing institution, including any Federal lending agency: Provided,
“1. That in the case of any contract entered into prior to the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned without the consent of the head of the department or agency concerned;
“2. That in the case of any contract entered into after the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned if it arises under a contract which forbids such assignment;
“3. That unless otherwise expressly permitted by such contract any such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing;
“4. That in the event of any such assignment, the assignee thereof shall file written notice of the assignment together with a true copy of the instrument of assignment (see par. 19) with—
“(a) the General Accounting Office.
“ (&) the contracting officer or the head of his department or agency.
“() Procedure for complying with requirement of the Assignment of Claims Act of 1940. (See par. 19.)
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() Completed transactions.
1. When payment has been made and accepted under an agreement shown to be reasonable, but informally executed, the transaction is complete and both parties are bound thereby. (See 24 Comp. Dec. 226.)
2. Where certain materials were supplied to the Government under a procurement order and subsequently a formal contract was drawn fixing the place of deliveries and the price to be paid, in which agreement certain alterations and interlineations from the printed text were made upon dates which were subsequent to the date appointed for completion of deliveries under the procurement order, such agreement is not binding because not made in compliance with law, and the dealer having been paid as
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provided in the order is not entitled to further payment. (See 25 Comp. Dec. 406.)
(c) Quantum meruit.
1. Accounts covering supplies furnished or services rendered before the making of a contract, without a valid contract, or where otherwise settlement is on a quantum meruit basis, should be transmitted through the Fiscal Director to the General Accounting Office. (See MS Comp. Dec. A. D. 4997, 6 August 1920.) For exception see 3 below.
2. The agreed price, if any, is prima facie but not conclusive evidence as to the correct price. (See 8 Comp. Dec. 526; 20 id. 437.)
3. Notwithstanding the provisions of 1 above, a cost-plus-a-fixed fee contractor may be reimbursed for proper expenses which were not included in the fixed fee and which were incurred in connection with expediting performance of work under the contract prior to its formal execution, but after verbal notification that the contract would be awarded. (See 21 Comp. Gen. 462.)
(d) Payment of taxes and duties on purchases by Government.
1. Customs duties on foreign purchases. In the absence of specific legislation authorizing purchases made by the Government to come into the United States free of customs duty, the particular appropriation for a purchase is properly chargeable with the amount of the customs duty assessed thereon by the United States, and the fact that the importation came through in a certain fiscal year does not require it to be considered as a service rendered in that fiscal year to be charged against an appropriation in the fiscal year in which the importation was made instead of the appropriation involved in the particular purchase. (See 26 Comp. Dec. 610.) Checks issued in payment of customs duties on imported merchandise
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will be drawn payable to and forwarded to the collector or deputy collector of customs at the port where entry was made.
2. Philippine export tax. Appropriated funds may not be used to pay an export tax on property of the United States shipped from the Philippines sought to be imposed pursuant to the authority granted in the Philippine Independence . Act of 24 March 1934 (48 Stat.
456), as amended by the Act of 7 August 1939 (53 Stat. 1226), to lay an export tax on “every Philippine article shipped from the Philippines to the United States.” (See 21 Comp. Gen. 226.)
19. Procedure for complying with requirements of the Assignment of Claims Act of 1940 (see 18a (3) (a) above).
a. General. Extract from Circular Letter 447, Treasury Department, Procurement Division, December 3, 1940 (see 20 Comp. Gem 306), is quoted as follows:
In the event that any moneys due or to become due from the United States under any contract are assigned pursuant to the terms of the Assignment of Claims Act of 1940, the assignee is required to forward a true copy of the assignment, together with written notice thereof, to each of the parties specified in proviso 4 of the Act. This notice of said assignment in the form attached hereto should be furnished to each of such parties in quadruplicate. Three of the four copies of each notice of assignment should be returned to the assignee under the contract with the receipt form at the end thereof properly executed. One of these copies is for the assignee. The other two copies should be attached to the first voucher, invoice, or other similar document submitted for payment. One copy of each receipt should be furnished to the General Accounting Office with the first voucher and the other copy of each receipt retained by the appropriate officer of the department making payment Reference as to the previously filed receipts should be made on subsequent vouchers.
This procedure is designed to afford the assignee and the appropriate officers of the Government convenient evidence that there has been compliance with the requirements of the statute with the reference to the filing of notice of such assignments. However, rigid adherence to this procedure should not be insisted upon if satisfactory evidence of compliance with the statute is provided by other means.
*******
b. Alternate Method to That Suggested in a Above. (1) Affidavit of assignee that notices of assignment home been furnished. While a disbursing officer making payment to an as
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signee under a Government contract may accept assignee’s affidavit that notice and true copy of assignment have been furnished each person and agency specified in section 4, Assignment of Claims Act of 1940, and General Accounting Office will require no additional evidence unless affidavit proves false, acceptance of such affidavit will not relieve disbursing officer of his responsibility, but the procedure outlined by Director of Procurement, a above, which provides for giving receipts to assignees for notices and assignments and for production of such receipts as evidence of compliance with section 4, should afford ample protection to disbursing officers so far as concerns said section (20 Comp. Gen. 306.)
(2) Caution in case surety is involved. Should the disbursing officer make a payment based on an affidavit ((1) above) under a voucher which shows that the contractor recognizes the assignment, its validity, and the right of the assignee to receive the payment, the Government might have a valid defense to any subsequent claim from the contractor for the said amount should the contractor base such claim on the fact that notices and copies had not been furnished as required by the act. However, should the payment be made in connection with a contract supported by bonds the interests of the Government might be unduly prejudiced in the event the surety had not been furnished a notice and copy of assignment. Consequently, it would appear advisable in such cases, for the protection of the disbursing officer, that no payment be made to the assignee until it be established that the surety had received a notice and copy of the assignment. (20 Comp. Gen. 306.)
c. Voucher to Indicate That Contractor Recognizes Assignment. The voucher, invoice, or other data in support of a payment direct to the assignee should clearly indicate that the contractor recognizes the assignment, its validity, and the right’of the assignee to receive payment. The contractor’s certification of a voucher on which the name of the assignee is shown is sufficient to give effect to this requirement. (See 20 Comp. Gen. 295.)
d. For further information see 20 Comp. Gen. 306 and 20 id. 295.
20. War emergency exceptions to advance payments.
a. Statutory Provision. The President may authorize any department or agency of the Gov-
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eminent exercising functions in connection with the prosecution of the war effort, in accordance with regulations prescribed by the President for the protection of the interests of the Government, to enter into contracts and into amendments or modifications of contracts heretofore or hereafter made and to make advance, progress and other payments thereon, without regard to the provisions of law relating to the making, performance, amendment, or modification of contracts whenever he deems such action would facilitate the prosecution of the war: Provided, That nothing herein shall be construed to authorize the use of the cost-plus-a-percentage-of-cost system of contracting: Provided further, That nothing herein shall be construed to authorize any contracts in violation of existing law relating to limitation of profits: Provided further, That all acts under the authority of this section shall be made a matter of public record under regulations prescribed by the President and when deemed by him not to be incompatible with the public interest. (Sec. 201, title II, act 18 December 1941 (Bull. No. 36, W. D., 1941).) Titles * * * II of this Act shall remain in force during the continuance of the present war and for 6 months after the termination of the war, or until such earlier time as the Congress by concurrent resolution or the President may designate. (Sec. 401, title IV, First War Powers Act, 18 December 1941 (Bull. No. 36, W. D., 1941).)
b. Provision by Executive Order. Executive Order No. 9001, dated 27 December 1941, issued pursuant to title II of the First War Power Acts, 1941 (Public No. 354, 77th Congress), approved 18 December 1941, authorizes the War Department to make advance, progress and other payments upon contracts of any percentum of the contract price and to enter into amendments or modifications of contracts heretofore or hereafter made without regard to the provisions of law relating to the making, performance, amendment, or modification of contracts. The order permits the exercise of such authority by the Secretary of War or at his discretion by any other officer or officers or civilian officials of the War Department and further permits the Secretary of War to confer upon any officer or officers of the War Department or civilian official thereof power to make further delegations of such power within the War Department. The order provides that the War Department may make advance, progress, and other payments upon contracts whenever in
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the judgment of the War Department prosecution of the war is thereby facilitated and directs that advance payments shall be made under such authority only after careful scrutiny to determine that such payments will promote the national interest and under such regulations to that end as the Secretary of War may prescribe.
c. Certain Provisions by Secretary of War. See Procurement Regulations, paragraph 321 for policies and provisions for advances, interest, etc., under authority of title II First War Powers Acts 18 December 1941, Executive Order No. 9001 dated 27 December 1941, etc.
d. Code Used in Case of Informal Contracts. Whenever funds are to be advanced under a contract which is not a formal contract, the disbursing officer will require the use of a code which will furnish the same basic information that is contained in the formal contract designation. This code will show in abbreviated form—
(1) The type of fund (War, Defense Aid-War, etc.).
(2) Service (Engineers, Ordnance, etc.).
(3) Procuring station number.
(4) An assigned agreement number.
This number will be stated on each report of advances and recoupments, and each disbursing and collection voucher used in connection therewith. An example of the desired code number is shown below:
Fund Station Service Agreement No.
w 535 AC 999
Care will be taken that the “Agreement No.” does not coincide with an actual formal contract designation.
e. Vouchers for Advance Payments. Advance payments will be made only upon receipt of properly certified vouchers (Standard Form No. 1034) on which the number of the related contract is clearly indicated. Such vouchers will be conspicuously marked “Advance payment” and will reflect all pertinent accounting data such as: Contract number and date; appropriation symbol (limitation code, if any) and the allotment number. If subsequent advance payments are made under the same contract the second voucher will be conspicuously marked “2nd advance payment”; the third voucher will be marked “3rd advance payment”; etc.
/. Recoupment. Recoupment of funds ad
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vanced to contractors will be accomplished by deductions from disbursement vouchers for amounts otherwise due, or by cash refunds, in accordance with the provisions of the contract, and the prevailing conditions of performance in each case.
(1) By deduction from voucher. When recoupment of advances is by deduction from disbursing vouchers, each disbursing voucher prepared for payment to the contractor for completed work, and from which a deduction on account of an advance should be made, will reflect the gross amount due for the work completed, the same as though there was no deduction on account of an advance involved, and such gross amount will be indicated as a charge against the appropriation symbol (and limitation, if any) and the allotment serial and purpose numbers involved. The voucher will also reflect the amount of the deduction on account of the advance according to the terms of the contract and the contractor will be paid the net amount of the voucher. The voucher deduction will be immediately scheduled on W. D., F. D. Form No. 52 (Schedule of Collections), and care will be exercised to indicate the related advance payment contract number on both the disbursement voucher (Standard Form No. 1034) and the Schedule of Collections (W. D., F. D. Form No. 52).
(2) By cash repayment. In cases where cash repayments are required pursuant to the provisions of the contract under which the advance payment was made, such cash repayments will be listed on a Standard Form No. 1044 by the contracting officer or his authorized representative to the disbursing officer. Such collections will be reported in the usual manner on W. D., F. D. Form No. 52 (Schedule of Collections), by the disbursing officer. Care will be exercised in such cases to indicate the number of the related contract on the Standard Form No. 1044.
g. Report of Advances and Recoupments. Whenever disbursing officers make advance payments on contracts, or effect voucher deductions, or receive repayments of such advances, W. D., F. D. Form No. 55 (Advice of , Contract Advances and Recoupment Thereof), will be prepared and submitted with the accounting papers for that day or period. The information indicated by the columnar headings will be shown in detail for each transaction. In the column headed “Voucher Number and Schedule Sheet Number” will be shown the related disbursing voucher numbers for
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advances or vouched deductions, and the related collection voucher numbers of the Standard Forms No. 1044 for repayments received from the contractors, as well as the sheet number of Form No. 51 or No. 52 upon which the transactions are scheduled; for example, “1069 sheet 7.” Amounts entered on statements will reflect all such transactions during the current day or period. Each statement will be consecutively numbered by the disbursing officer through the fiscal year beginning with number 1 for the initial statement submitted. The forms will be listed on the W. D., F. D. Form No. 29 (Letter of Transmittal).
COMPUTATION OF INTEREST AT 2^%
h. Computation of Interest. (1) The following table sets forth the method to be followed in the computation of interest payable, in monthly installments on advance payments, as prescribed in decision of the Comptroller General of the United States. (See 22 Comp. Gen. 656.)
(2) Alternative method. The following table sets forth an alternative method which may be followed in the computation of interest payable in monthly installments on advance payments, as prescribed in decision of the Comptroller General of the United States. (See 22 Comp. Gen. 656.)
PER ANNUM ON ADVANCE PAYMENTS
Date Details Debit Credit Balance Formula Interest
Apr. 2 Apr. 4 Apr. 7 Apr. 15 Apr. 28 To cash By credit do __ do__ do__ $100, 000 $465. 20 1, 255. 75 10, 540. 15 9, 872. 99 $100, 000. 00 x %oXK2XO. 025 99, 534. 80 X %oX/i2X . 025 98, 279. 05X %oX/i2X .025 87, 738. 90Xl%oXX2X .025 77, 865. 91X %oX)<2X .025 $13. 888 20. 736 54. 599 79. 209 10. 815
179. 247
Note. The above computations are correct for a 30-day month. Computations for a fractional part of a month should be based on the actual number of days in the month.
COMPUTATION OF INTEREST AT 2%% PER ANNUM ON ADVANCE PAYMENTS (30-DAY MONTH)
Date Details Debit Credit Unpaid balance Number of days during a 30-day month Equivalent amount for 1 day
Apr. 2 Apr. 4_ To cash By cash $100, 000 $465. 20 $100, 000. 00 99, 534. 80 98, 279. 05 87, 738. 90 77, 865. 91 2 3 $200, 000. 00 298, 604. 40 786, 232. 40 1, 140, 605. 70 155, 73L 82 2, 581, 174. 32 64, 529. 36 179. 25
Apr. 7 do 1, 255. 75 10, 540. 15 9, 872. 99 8
Apr. 15 _do 13
Apr. 28 _ do__ ______ 2
$2,891,174.32 X .025 $64,529.36-4-360 (Ini (Annual interest rate erest charge for the 0 28
month based on 1 day equivalent)
COMPUTATION OF INTEREST AT 2%% PER ANNUM ON ADVANCE PAYMENTS (31-DAY MONTH)
Date Details Debit Credit Unpaid balance Number of days during a 31-day month Equivalent amount for 1 day
Aug. 2 Aug. 4 Aug. 7 Aug. 15 Aug. 28 $2, 659, 040. 23 X .0 $66,476.01-4-372 (Int To cash By cash _ _do _ _do_ do 25 (Annual interest r erest charge for the $100, 000 ate) month based o $465. 20 1, 255. 75 10, 540. 15 9, 872. 99 n 1 day equiv $100, 000. 00 99, 534. 80 98, 279. 05 87, 738. 90 77, 865. 91 alent) 2 3 8 13 3 29 $200, 000. 00 298, 604. 40 786, 232. 40 1, 140, 605. 70 233, 597. 73 2, 659, 040. 23 66, 476. 01 178. 70
Note—The above computations are based on the actual number of days within the periods involved and computations should include either the beginning or ending date of the period, but not both. For a 29-day month, the interest equivalent for 1 day will be obtained by dividing the interest for 1 year by 348; for a 28-day month by 336.
(3) Copies of computations will be attached to all vouchers upon which interest charges are deducted.
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21. Damages.
a. General. (1) Sources of damages. (a) Default. Default is the refusal or the failure of a contractor to carry out the terms of a contract. (See PR 302.)
(6 ) Delay. Delay is the failure or the refusal of the contractor to deliver supplies or make performance within the time limit fixed in the terms of the contract.
() Accounting responsibility for Reserve for Settlement of Claims. The accounting records pertaining to account No. 1-970 P 970-13— Reserve for Settlement of Claims will be maintained for each appropriation involved by the Fiscal Director, and not by other components of the War Department. Responsibility of such other components in respect to accounting transactions affecting the Reserve for Settlement of Claims in any appropriation will be limited to designation and verification of the allotment number and project account code, when applicable, on accounting documents originated or handled by them without, however, maintaining any accounting for balances,
total credits, or total charges affecting this account.
(c) Procedures for liquidated damages. The following requirements will be observed in the preparation and processing of all disbursement vouchers which require deductions for liquidated damages:
1. The gross amount of the voucher (before deduction of liquidated damages) will be shown in the space provided for the total.
2. The deduction for liquidated damages will be identified on the voucher as such and will be entered as a deduction in determining the net amount to be certified, approved, and paid.
3. The accounting classification block will be completed to indicate— (a) A charge of the gross amount of the voucher to the appropriation, allotment, project account, and object classification to which the underlying obligating instrument pertains.
(Z>) A credit of the deduction for liquidated damages to the open allotment and project account No. 1-970 P 970-13—Reserve for Settlement of Claims under the same appropriation.
4- Following is an example of the accounting classification requirements under (3) above based on a hypothetical voucher in the gross amount of $8,375 from which $250 is deducted for liquidated damages, resulting in a net payment of $8,125 to the contractor:
Appropriation limitation, etc. Appropriation title Appropriation amount
212/40502___ S. and T., A. 1942-44 7-2526 P 121-08. 1-970 P 970-13 $8, 375 $250 Cr. $8,125
The disbursing officer will make payment in the net amount of the voucher, taking credit for net amount of the disbursement on W. D., F. D. Form No. 51 (Schedule of Disbursements).
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() The claimant should be notified of the transmittal of the claim to the Claims Division, General Accounting Office, Washington 25, D. C., and also should be informed that any future correspondence regarding the claim should be addressed to that office.
() Disposition of amounts collected. Amounts collected on account of actual damages or excess costs charged to defaulting contractors should be credited to Miscellaneous Receipts. (See MS. Comp. Gen. A-26073, 20 March 1929, 8 August 1929; 10 Comp. Gen. 510.) (AR 35-6040.)
() Receipt from contractor.
(2) Disposition of amounts collected—classified as Expenditure Refund. (W. D. Cir. 117, 1943.) Moneys consisting of collections from contractors for supplies purchased, which, upon inspection, proved unfit for use, should be deposited and covered into the Treasury to the credit of the appropriation erroneously charged therewith. (8 Comp. Gen. 103.)
e. Set-Offs. (1) It is well settled that the United States has always the right to set off against an amount due a claimant any sum the same person, company, or corporation owes to the Government, either under the same or other contracts or obligations. The common-law right of every creditor to apply the moneys of his debtor in his hands in the extinguishment of claims due him from the debtor is equally as applicable to the Government as to individuals. Where a claimant is both debtor and creditor of the United States in any form, the General Accounting Office, in settling the accounts within its jurisdiction, not only has the authority but is required in the proper discharge of its duties—to consider both debits and credits and to allow and certify for payment or collections only the balance due. (See MS A-8’8558 16 Nov 37.)
(2) Any contract entered into by the War Department or the Navy Department may provide that payments to an assignee of any claim arising under such contract shall not be subject to reduction or set-ofi, and if it so provided in such contract, such payments shall not be subject to reduction or set-off for any indebtedness of the assignor to the United States arising independently of such contract. (Assignment of Claims Act, 1940; RS 3477, Act of 9 Oct 1940 (54 Stat. 1029); 31 U. S. C. 203.)
(3) For list of contractors indebted to the United States see Finance Bulletins. Vouchers in the amounts stated therein, or less, until such amounts are equaled, will be forwarded to the Office of the Fiscal Director for transmission to the General Accounting Office for direct settlement and set-off.
/. Rights of Sureties. Settlement with the contractor and surety is made by the General
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Accounting Office in accordance with the following. A surety which completes work under a contract on which it is surety is subrogated to the rights of the contractor against the Government for the unpaid balance due from the United States on that contract and also to the rights of the Government against the contractor for the excess cost of completing the work or furnishing the materials and supplies, and, therefore, the surety is entitled to be paid by the Government the cost to the surety of completing the work but no profit. The contractor is entitled to be paid for work performed by it, if any funds are available for such payment after reimbursing the surety. The total payments by the Government must not exceed the contract price. (See 16 Comp. Dec. 351,490; 26 Comp. Dec. 467; 5 Comp. Gen. 995 ; 8 Comp. Gen. 36, 58, 266, 318, 435.) It is the practice to require releases from the contractor and the surety. (See 5 Comp. Gen. 995, 999; 8 Comp. Gen. 266, 272.) Payment into court of the balance should not be made. (See 14 Comp. Gen. 567.) The amount remaining due may be paid to the assignee of a receiver where the court orders the receiver to accept the assignee’s offer to complete the work in consideration of receiving all the payments and retained percentages due. (See 3 Comp. Gen. 623; sec. Ill, ch. 6.)
22. Other adjustments.
a. Mistakes in Bids. Where a contractor claims payment in addition to the contract price on the ground of a mistake in bid, the contract price only will be paid and any protest on the part of the contractor will be forwarded through the Office of the Fiscal Director to the General Accounting Office. (8 Cornu Gen. 397.)
&. Transportation Costs. (1) Savings in freight charges. Shipment from a point nearer destination than the fob point named in a contract does not entitle the contractor to the saving in freight charges. (See 3 Comp. Gen. 56.) Where a contract provides for delivery fob destination, and shipment is made on Government bill of lading, which entitles the Government to certain land-grant deductions from the regular commercial rates, the contractor is not entitled to the benefits obtained by the Government on account of said land-grant deductions. (MS. Comp. Gen A-30249, 8 April 1930.)
(2) Adjustments hy General Accounting
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Office. Where contractors are permitted to make shipments of supplies from points other than those named in the contract, which contract, in pursuance of advertisement for bids to that effect, permits such procedure and provides an apportionment feature for excess transportation costs, and the contractor is not willing to allow deductions for freight charges from the actual shipping point to destination, or claims an additional amount on account of paying freight or other delivery charges that should have been borne by the Government, disbursing officers will submit vouchers in question to the General Accounting Office for direct settlement. (See 8 Comp. Gen. 500.)
c. Coal Contracts. (1) Changes in wage scale. Standard Government forms of coal contracts provide for adjustment of prices on account of increases or decreases in cost of production due to changes in wage scale. (See 8 Comp. Gen. 671; 16 Comp. Gen. 805.)
(2) Ash content. Standard Form No. 43 (Standard Government Purchase Conditions (Coal)), which forms a part of contracts for coal, provides for adjustment of prices where coal is sampled and found to contain excess ash content.
d. Inferior Goods. Acceptance of inferior goods does not entitle the contractor to other than payment on the basis of the reasonable value of the goods. (See 5 Comp. Gen. 993; 15 Comp. Gen. 612.) Disbursing officers will submit vouchers in such cases to the Office of the Fiscal Director for instructions as to payment.
e. Violations of the 8-Hour Law. (1) Disposition of amou/nts collected. Amounts withheld from a contractor as a penalty for violation of the 8-hour law of 19 June 1912 (37 Stat. 137; 40 U. S. C. 324; M. L., 1939 sec. 743), are moneys collected for the use of the United States as specifically provided in said law,
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and, accordingly, are for depositing and covering into the Treasury as miscellaneous receipts as provided by sections 3617 and 3618, Revised Statutes. (AR 35-780.) Such amounts, however, may be permitted to remain to the credit of the appropriation involved until such time as the right of appeal to the head of the department, as provided in the act of 19 June 1912, has expired (6 months), or until final action on such appeal in case same is duly filed. (See 10 Comp. Gen. 504.)
(2) Suspension of law. During the national emergency declared by the President on 8 September 1939, to exist, the provisions of the law prohibiting more than 8 hours’ labor in any one day of persons engaged upon work covered by Army * * * contracts shall be suspended. (Sec. 5 (b), Act 28 June 1940 (54 Stat. 679; M. L., 1939, Supp. I, sec. 745).)
23. Adjustments after final payment.
a. Claim by Contractor. A claim arising under a contract after final payment has been made, which claim is occasioned by deduction made on the voucher for final payment, should be forwarded through the Office of the Fiscal Director to the General Accounting Office. (See 23 Comp. Dec. 490.)
b. Claim by Government. Where a contractor is indebted to the Government under one contract, the Government may offset, without separate action, an amount owing to the contractor under another contract. (Barry v. United States (1913)), 229 U. S. 47. (See 7 Comp. Gen. 186.) The right of set-off does not apply to unliquidated demands, but the Government has the equitable right to withhold payment of moneys due under one contract to a contractor who is in default under another contract until his indebtedness thereunder can be liquidated. (See 7 Comp. Dec. 213.) (AR 35-6040.)
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CHAPTER 6
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PAYMENTS REQUIRING SPECIAL CONSIDERATION
SECTION I
PAYMENTS FOR TELEPHONE, TELEGRAPH, AND TELETYPEWRITER SERVICE
24. Bills, general. Monthly bills for all telephone, telegraph, and electric time service will be certified by the officers concerned in the use of such service, and disposed of as directed by the commanding general of the service command in which the service is rendered. Where private branch exchange or other service is furnished, the commanding officer will check and certify toll bills and monthly statements. This officer will see that, according to the terms of the contract, the Government is not being charged excessively, likewise that due credit is being obtained for all equipment and service that has been discontinued. Whenever such an officer is relieved he will turn over to his successor the necessary data to check and certify all accounts. Officers certifying bills are enjoined to assure themselves that no services are charged against the Government other than those required in the handling of official business. The payment for all telephone and telegraph service furnished under a written or implied agreement or contract and for which the Government is responsible will be paid by the disbursing officer designated by competent authority to make payment.
25. Collection and disposal of funds for personal services.
a. General. Where commercial communication service, furnished through an Army telephone system, or other communication facility provided primarily for the transaction of official business of the Army, is used for personal or other than official business, as contemplated in AR 105—30, funds to cover the determined cost of such commercial service for unofficial use, including tax thereon, will be collected from the user by the commanding officer of the post, camp, or station and transmitted promptly, as and when received, to the disbursing officer
designated to make payment, who will account for them as special deposit funds.
b. Form used in turning overfunds. Standard Form No. 1044 (Schedule of Collections), will be prepared by the officer making collections, listing all collections received on account of personal telephone calls and the Federal tax thereon and forward promptly to the disbursing officer for deposit, in accordance with AR 35-780.
c. Foreign countries. Government telephone facilities, owned or subscribed for, should not be used for private or personal purposes, but, when so used under emergent conditions, the collection for their use in foreign countries should be in sufficient amount to permit payment of the bills in terms of United States currency without any loss to the Government. (See 13 Comp. Gen. 483.)
26. Telephone service.
a. Bills. The commanding officer of the post or station concerned will indicate on the telephone company’s monthly bill for telephone service and facilities the amounts due for official and for unofficial service, including tax on unofficial service. In order that the disbursing officer may be informed of collections which have been made for personal calls in the amounts chargeable to special deposit funds, the following statement will be submitted with the bill in favor of the telephone company:
Personal messages
Total
amount Memo of Date due Federal tax
telephone company
Upon receipt of these bills for telephone service in the finance office, the amount stated as due for unofficial charges will be checked against the amounts received and deposited to special
Schedule of collection number
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deposit funds for the period covered by the bill, and if these amounts agree, payment will be made by one check in the amount due for official and unofficial charges. The total amount of the voucher will be recapitulated to show separately the amount payable from the proper appropriation or appropriations and from special deposit funds.
5. Disposition of Federal Taxes Collected on Account of Personal Telephone Calls and Telegraph Messages. (1) A finance officer receiving collections representing Federal taxes will take up such collections in special deposit funds and will, on or before the last day of each month, make a return on Treasury Department, Internal Revenue Service, Form No. 727, for the preceding month, and pay the taxes so collected to the Collector of Internal Revenue using for this purpose Standard Form No. 1034.
(2) The finance officer preparing the voucher in favor of the Collector of Internal Revenue will show thereon in the body of the form the Schedule of Collection number, date, and amount for the collections made representing the Federal tax on the unofficial calls (or messages), the total of which is to be paid from “Special Deposits-Federal Taxes.”
(3) In lieu of transmitting the voucher to the Collector of Internal Revenue for his signature to the claimant’s certificate, the finance officer will forward Treasury Department, Internal Revenue Service, Form No. 727 to the Collector of Internal Revenue, together with his official check in payment thereof. Upon the subsequent receipt by the finance officer of the signed return, Form No. 727, it will be attached to, and made a part of, the completed voucher for which credit is claimed by the disbursing officer. Usually when this receipted Form No. 727 is received by the disbursing officer, the voucher it is to support will have already been forwarded with his accounts to the Army Regional Accounting Office. In this case the Form No. 727 should be forwarded to the Army Regional Accounting Office with letter of transmittal requesting attachment to the proper voucher.
c. Long-distance tolls. (1) Payment. In cases of urgent and imperative necessity, where long-distance telephoning is practicable, accounts are payable from funds of the Signal Corps, or such other funds as are applicable to the payment of charges for the service in
TM 14-504
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volved and which are made available to the Signal Corps.
(2) Supplemental certificate. In compliance with the act of 10 May 1939 (see AR 35-6100), a certificate will be required to support payments of official long-distance telephone tolls, and for uniformity in such certifications the following is prescribed for each public voucher and for each travel or station-expense reimbursement voucher that includes toll charges for official long-distance telephone calls:
Pursuant to section 4 of the act approved 10 May 1939 (53 Stat. 738), I certify that the use of the telephone for the official long-distance calls listed herein was necessary in the interest of the Government. (MS. Comp. Gen. A-13067, 24 May 1939.)
(3) Copies of orders designating certifying officers to be furnished General Accounting Office. In order to give full effect to the law it is required that each department, establishment, or agency concerned shall furnish the General Accounting Office with a certified copy of each order designating a Government officer so to certify pursuant to the above-mentioned act. (See MS. Comp. Gen. A-13067, 24 May 1939.)
(4) Certifying officers designated by Secretary of ~War. In compliance with (3) above, the General Accounting Office has been furnished with copies of orders of the Secretary of War designating commanding generals of service commands or their adjutants, or other officers, exercising independent command, including commanding officers of troops in transit, troops engaged in actual or simulated combat, and commanding officers of military organizations which are not a part of the garrison of a post, camp, or station, and the executive officer, administrative assistant, or chief clerk of each bureau or service to furnish the certificate required in (2) above, except that the Director of Communications, Office of the Secretary of War, will furnish such certificate with respect to all official long-distance telephone calls made through the War Department switchboard serving War Department activities in Washington, D. C., and its environs.
(5) Inter zone messages. Interzone messages can ordinarily be made by calling the same telephone operators who serve the metropolitan areas, while special operators must be utilized for long-distance calls beyond the established telephone zones. Interzone messages need not
33
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be classed as long-distance toll messages with respect to the requirement as to special certification of telephone invoices. Local and interzone charges need not be specially certified. (See MS. Comp. Gen. A-13067, 17 June 1939.)
(6) Flash calls mujude by ground observers. Flash calls made by ground observers in connection with Aircraft Warning Service may be billed as a group from a given point to a filter center, if such calls do not consume more than the minimum talking period. Where such calls consume more than the minimum talking period, they will be listed separately. The special certificate set forth in (2) above is not required. (See MS. Comp. Gen., B-25280, 28 April 1942.)
(7) Private residences. Payment is unauthorized for public funds for the installation or rent of a telephone installed in a private residence irrespective of its use for official business, but long-distance tolls for messages received or transmitted over such telephone, strictly for the public business, may be so paid. (See 15 Comp. Gen. 885.)
27. Telegraph service.
a. Charge Accounts. Service commanders, chief of operating agencies, and the National Guard Bureau, and commanding officers of posts, camps, and stations not under the jurisdiction of a service commander will have charge accounts with the local telegraph offices opened and maintained for their respective headquarters, and will authorize commanding officers of posts, camps, or stations, under their jurisdiction, where there is sufficient telegraphic business to warrant, likewise to open and maintain a charge with their respective local telegraph offices, except that no charge account will be opened or maintained at any station until a specific procurement subauthorization to provide for telegraph service thereat has been received. Against such charge accounts will be charged all Government messages sent from the station, under authority of the commanding officer thereof, and all messages received at the station, “Government collect,” from absent officers or agents of the military service authorized to send such messages to their respective stations “Government collect.” In such cases a copy marked “Duplicate” will be mailed to the commanding officer of his station.
b. Submission of Monthly Bills. In general, all official telegrams will be charged to and paid for at the sending office on monthly bills,
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which will be submitted by the local telegraph office directly to the local commanding officer.
c. Bills To Be Forwarded to Disbursing Officer for Payment. After the allotment numbers for the fiscal years involved are entered on monthly bills, and after certifications, they will be forwarded in the most expeditious manner, together with all supporting telegrams, to the disbursing officer designated to pay the accounts of that station.
d. Bills To Be Paid Within 5 Days. Disbursing officers to whom bills are submitted for payment will settle such accounts within 5 days after receipt, making payment to the local telegraph office rendering the account. This will not be construed as authorizing payment when papers necessary to support the voucher are not in the possession of the disbursing officer.
e. Payment to Initial Company. In settling accounts for telegrams which pass over the lines of more than one company (bond-aided excepted), payment may be made on the original telegram to the initial company for the entire service.
/. Bills Involving Charges for Personal Telegraph Service. Commercial telegraph companies will be required to render separate bills for official messages and for unofficial messages. Bills for official telegraph service will show charges at Government rates without tax, and bills for unofficial telegraph service will show charges at regular commercial rates with the amount of tax indicated. If charges for unofficial service are included in the official telegraph bill, administrative offices may increase amounts claimed for telegraph services by the difference between the Government rate billed and the commercial rate for messages of a personal nature where collection at the commercial rate, plus tax, has been made from the individual for whose benefit the services were rendered, and deposited in special deposit funds, provided the voucher shows the full cost of the telegrams at commercial rates is being charged to the special deposit funds. (See 17 Comp. Gen. 873.) Signed statement by the local commanding officer should be made on bills for personal telegraph services to indicate that charges are properly payable from special deposit funds and such bills, together with properly certified bills for official telegraph service and for telephone service, will be forwarded to to the disbursing officer designated to make payment. The commanding general of the service command may require that such bills be trans
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mitted to the disbursing officer through his office. For disposition of taxes see paragraph 26&.
g. Supporting Evidence to Telegraph Bills. (1) Telegraph bills will be supported by proofs of service which, except “Government collect” messages or telegrams of a confidential nature, will be the original telegrams bearing the operator’s original pencil notations or indorsement of transmission showing actual performance. (See 14 Comp. Gen. 825, 16 Comp. Gen. 217.) As to what constitutes an original within this rule, the basic reason for the requirement that the original be filed is to insure that the charges for transmission were correctly computed for the services actually rendered and to prevent duplicating payment of such charges. This is best accomplished by accompanying the voucher with the copies of the telegrams used for the transmission, showing thereon the company notations with respect to the time filed, the number of words paid for, etc., such copies being commonly referred to as transmission or wire copy. It is immaterial for audit purposes whether the transmission or wire copies be written in long hand or consist of carbon copies; on the other hand, a ribbon copy not showing the transmission data would be of little, if any, use in auditing the charges. (See 21 Comp. Gen. 364.)
(2) If charges are included in monthly bills for messages received “Government collect,” carbon copies will be accepted in support of the charges. (See MS. Comp. Gen. A—13067, 18 December 1935.)
(3) (a) Vouchers for telegraph services furnished by a foreign government in transmitting alleged confidential messages in code may not be passed by the General Accounting Office upon a blanket certification that they were confidential, but copies of the telegrams in code and untranslated will be submitted in support of the account. (See 4 Comp. Gen. 860.)
(Z>) In the case of coded messages from foreign representatives of the War Department the Comptroller General in decision of 23 June 1942 (B-24959) stated that the General Accounting Office would accept the following skeleton information concerning these messages in lieu of the copies of the coded texts:
1. Addressee and destination.
2. Number and date.
3. Total number of five letter word groups.
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4. Rate per letter word group charged by the foreign agency.
5. Sender and address.
In order to safeguard the cryptographic systems in which coded messages are transmitted, finance officers in the field will submit the above skeleton information in lieu of copies of the coded texts of classified messages in support of vouchers for telegraphic services furnished by the foreign agencies. In addition to the above listed skeleton information, the name or suitable symbpl that will readily identify the communications company to which the message is delivered for transmittal and, if known, the company by which delivery of the message in the United States is made will be furnished. (See MS. Comp. Gen. B-24959, 22 May 1942, 23 June 1942.)
(4) While the general rule is that claims for telegraphic services not of a confidential nature must be supported by the originals of the outgoing messages when presented for payment, (1) above, where the messages originate in a foreign country in which the transmitting company is not permitted by its regulations to surrender the originals, copies of the originals will be accepted in support of vouchers, provided appropriate steps are taken by the administrative office to prevent a duplicate payment for the same services. (See 21 Comp. Gen. 94.)
(5) (. Copies of Teletypewriter Messages Not Required. Accounts for teletypewriter service need not be supported by the originals or copies of messages prescribed in paragraph 27 for official telegrams.
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TM 14-504
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SECTION 11
PAYMENTS UNDER LEASES
29. General.
a. Regulations Applying. Regulations governing the leasing of real estate are published in AR 100-61. Reference should be made thereto with regard to the preparation and execution of leases and similar instruments, authority therefor, and other detailed information.
5. Numbering and Distribution. Leases are required to be numbered and originals and/or copies furnished the disbursing officer in the same manner as is set forth for other type contracts in chapter 3. (AR 100-61.)
c. Name of Disbursing Officer To Be Shown and Certification as to Availability of Funds To Be Made. The provisions of chapter 1, requiring the name of the disbursing officer who is to make payment to be shown on contracts and that certification as to availablity of funds be made to apply also to leases. (AR 100-61.)
30. Computation of rent. The provision in the act of 28 April 1904 (33 Stat. 513), for computing payments of annual or monthly compensation of officers, agents, and employees of the United States, has no application to contracts for the payment of monthly rental for leased premises, and payments for fractional parts of a month should be on the basis of the actual number of days in the month. In computing the time between two specified dates the general rule is to exclude the first and include the last date. (11 Comp. Dec. 494.)
31. Decision affecting payment.
a. Who Entitled to Rental. (1) The United States, having occupied land under a lease, cannot avoid the payment of rent therefor by reason of any defect in the title of the lessor at the time the lease was made. (9 Comp. Dec. 593.)
(2) The United States having occupied land owned by several tenants in common under an agreement with one of them, and without objection by the others, such tenant in common is entitled to receive the rent therefor. (9 Comp. Dec. 593.)
(3) When property leased to the United States is sold on one day and the deed of conveyance is executed on another day, the grantee is entitled to receive the rental from said property only from and after the date
of execution of the deed. (15 Comp. Dec. 195.)
(4) Where leased premises, under the lease of which the annual rental was payable in quarterly installments on the first days of October, January, April, and July, were sold under a mortgage foreclosure and the new owner took title 23 November, the new owner is entitled to the rent for the whole quarter under the well-settled common-law rule that in such cases the apportionment of rent is not allowable, as the rent does not accrue from day to day but only accrues at the time it becomes due under the terms of the lease and is indivisible. (Ct. Cis. 28 May 1917.)
Z>. Written Agreement Required. A disbursing officer who charges in his accounts a payment for rent, unsupported by evidence of a contract fixing the rent to be paid, is not entitled to a credit therefor. (5 Comp. Dec. 701.) The General Accounting Office will refuse credit for vouchers paid for rent unless supported by a written agreement signed by both parties. (Letter, Auditor, 19 January 1905.)
c. Payment of Rent in Advance. Payment of rent in advance, by the month, year, or quarter for naked lands leased to the Government, of which it has been placed in possession by the lessor, is in violation of section 3648, Revised Statutes, and will not be recognized by the General Accounting Office. (23 Comp. Dec. 653.)
d. Payment of Rent Under Improperly Executed Lease. Where a writing in the form of a lease purporting to be entered into between the lessor and an officer of the Army on behalf of the Government, as lessee, was not signed on behalf of the Government or deposited in the General Accounting Office, as provided by sections 3743, 3744, and 3745, Revised Statutes, a stipulation therein contained that liquidated damages should be paid for all claims, costs of labor and materials, etc., reconstructing the premises as they were at the commencement of the tenancy, imposed no valid obligation upon the Government, and payment of the amount stipulated is not authorized. (26 Comp. Dec. 232.)
e. Payment for Cost of Improvement of Rented Premises. The laying of conduits and wires in premises occupied by the United States under a lease from the owner is an improvement
37
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of the premises, and unless provision has been made in the lease for the making of such an improvement by the United States as a consideration in whole or in part for the use thereof, payment of the cost of such an improvement is not authorized. (6 Comp. Dec. 943.)
/• Payment of Taxes on Property. Although taxes are not payable by the Federal Government as the owner of real property, they are properly payable as part of the rent when
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specifically included in the terms of the lease. (24 Comp. Dec. 705.)
g. Payment of Rent in Connection With Termination of Lease. Under a lease for a year, where the rent was payable monthly, which provided that the tenancy might be terminated by giving 30 days’ notice, a notice given on the 10th of a month does not become operative until the end of ensuing month. (9 Como Dec. 366.)
SECTION III
PAYMENTS FOR COAL
32. Basis for contract price of coal. In accordance with paragraph 3, Standard Form No. 43 (Standard Government Purchase Conditions (Coal)) the contract price of coal is based upon the wage scales in effect with mine employees on the date of opening of bids and, when there has been no change in the wage scales, the contractor w ill certify to that effect on invoices or vouchers submitted for payment.
33. Evidence required upon increase in cost of coal. When there has been an increase in the cost of production of coal on account of changes in wage scales, the following evidence will be required.
a. Action by Contractor. The contractor will furnish an affidavit of the superintendent or corresponding officer of the mine or mines from which the coal was produced, and a report of a certified public accountant showing the following information:
(1) The cost of mining the coal before the increase in wage scale.
(2) The amount of the increase in the wage scale after the date of opening of bids.
(3) The amount of such increase applicable to the coal delivered under contract after the date of such increase.
The above evidence, with the exception of the report of a certified public accountant, will be required when there has been a decrease in the cost of production of coal due to decrease in wage scales.
b. Action by Disbursing Officer. When the account is submitted to the disbursing officer, he will add the following information to the file:
(1) Contract number.
(2) Quantity of coal settled for at the contract price.
(3) Quantity of coal not yet settled for under the contract.
(4) Quantity of coal on which increase is due or decrease has been deducted, unit increase or decrease, and total increase or decrease.
(5) Voucher reference of copies of vouchers involved.
34. Disposition of claims involving increase or decrease in cost.
a. Involving Increased Cost. In the event of an increase in the cost of production, the procedure will be as follows:
(1) The disbursing officer will, if the claim is otherwise proper, make payment at the conti act price, taking advantage of any discounts offered, will prepare a voucher covering the additional amount claimed, and will for* ward the same, accompanied by the evidence set forth in paragraph 25, to the Fiscal Director for transmission to the General Accounting Office for settlement as a claim.
(2) Upon receipt of the claim, the Fiscal Director will refer the file to The Quartermaster General for verification of the new wage scale and his recommendation in the premises.
(3) The Fiscal Director, upon receipt of the information from The Quartermaster General, will, after taking any steps which may be neces-’ sary to complete the file, transmit the claim to the General Accounting Office for settlement.
b. Increased mining costs resulting from overtime payment. The payment of time and one-half overtime pay to coal mine employees pursuant to a labor union-mine operator’s agreement permitting, but not requiring, the working of mine employees in excess of 35 hours per week with time and one-half pay
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for the excess hours’ work does not constitute a wage rate change, even though resulting in increased labor costs of mining, within the meaning of a contract for the purchase of coal providing for a change in the contract price if the wage scales of mine employees be changed during the term of the contract. (MS Comp. Gen., B-33617, 1 May 1943.)
c. Involving decreased cost. In the event of a decrease in cost of production, the procedure will be as follows:
(1) When there is a performance bond covering the contract, the disbursing officer will, if he can satisfy himself as to the amount due in view of the decreased cost of production, make payment thereof, taking advantage of any discounts offered.
(2) When no performance bond has been furnished, the disbursing officer will, in every case of decreased cost of production, make payment of 90 percent only of the amount determined by him to be due, taking advantage of discounts offered, and retaining 10 percent for settlement as a claim.
(3) When the disbursing officer finds it necessary, under (1) or (2) above, to retain the whole or any part of the amount claimed by the contractor, he will prepare a voucher covering the amount withheld and forward the same, accompanied by the evidence set forth in paragraph 25 to the Fiscal Director for transmission to the General Accounting Office for settlement as a claim.
(4) Upon receipt of the claim, the Fiscal Director will refer the file to The Quartermaster General for action similar to that set forth in a (2) above.
(5) The Fiscal Director, upon receipt of the information from The Quartermaster General, will, after taking any steps which may be necessary to complete the file, transmit the claim to the General Accounting Office for settlement.
35. Payments made under special provisions in coal contracts.
a. General. Where contracts provide for the deletion of paragraph 3, Standard Form No. 43 (Standard Government Purchase Conditions (Coal).) (See par 32.) and the substitution of a mathematical percentage formula for determination of adjustments in contract prices because of changes in wage scales under Circular Letter No. 166, Treasury Department, Procurement Division, dated 22 May 1936, as amended, claims of contractors thereunder are
TM 14—504
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required to be submitted to the contracting officer. Such claims will be supported by authenticated copies of wage scales in effect on the date of the opening of bids and the new wage scales, and an affidavit showing whether any such changes other than those involved in the claim were effected between the opening of the bids and the dates of coal deliveries, in addition to the name of the mine from which each carload, identified by car initials, number, date of shipment and weight, was produced. The computation will be in accordance with the contract formula. (16. Comp. Gen. 805.)
A Action by Disbursing Officer. Where under such contracts, an administrative determination based upon findings of fact has been made of the new contract price by the contracting officer, payment may be made by the disbursing officer, if he can satisfy himself as to the correct amount due. (See Supplement No. 1, Circular Letter No. 166, Procurement Division, Treasury Department, 5 March 1937.)
c. Application for Advance Decision. Should there be, in particular cases, circumstances rendering it necessary or advisable to apply for a decision of the Comptroller General of the United States as to a payment to be made under the provisions of a and & above, such application may be made in the manner set forth in chapter 3, TM 14-500.
36. Withholding of 10 percent of amount of invoices pending analysis of sample.
a. Receiving Reports. (1) In order to effect prompt payment for shipments of coal, receiving reports therefor will be accomplished by the consignee or commissioned assistant within 3 days after the date of delivery and acceptance of shipment at destination.
(2) When coal is sampled, the receiving reports therefore will be marked: “The quantity of coal covered by this receiving report has been sampled and 10 percent of the invoices are to be withheld pending the outcome of the analysis.”
(3) If the coal is not sampled, the receiving report therefor will be marked: “The quantity of coal covered by this receiving report was visually inspected and found to be the grade and size contracted for, and found not to contain excessive visible impurities; no sample was taken and 10 percent of the invoices need not be withheld.” (Cir. 94, 1943.)
&. Vouchers Covering Payments of Amounts Previously Withheld. When payment is made
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of amounts previously withheld in accordance with a (2) above, vouchers covering such payments should bear reference, voucher number, name of disbursing officer, etc.) to the
voucher (s) on which the original 90 percent payment was made, and should be supported by evidence that the outcome of the analysis justifies such payment.
SECTION IV
PAYMENT OF TRANSPORTATION ACCOUNTS
37. By whom paid.
a. Bills of Lading and Transportation Requests. (1) 'Within continental limits of United States. All transportation accounts pertaining to War Department bills of lading and transportation requests issued for service to and from and within the continental limits of the United States and Alaska (except those payable from appropriations for river and harbor work) will be paid by the Finance Officer, U. S. Army, Washington 25, D. C.
(2) Outside continental limits of United States. Transportation accounts pertaining to War Department bills of lading and transportation requests issued for service within the Panama Canal, Hawaiian, Philippine, or Puerto Rican Departments, and in foreign countries will be paid by a disbursing officer in the department or area concerned.
&. For River and Harbor Work. Accounts covering transportation payable from appropriations for river and harbor work will be paid by district officers of the Engineer Department specially designated to settle the accounts for the specific project.
c. Toll and Ferriage Charges. Payment for toll and ferriage charges will be made by the finance officer designated to settle acccounts for the headquarters of the service command authorizing the travel (when the finance officer is not known, forward account to service command fiscal officer) on a certificate of the officer or person in charge of the party, prepared in accordance with the provisions of AR 55-120. Payment may be made at the authorized or usual rates, unless more favorable terms can be obtained.
d. Shipments of Authorized Baggage of Military and Civilian Personnel by Commercial Van Carrier. Whenever transportation and other types of services of motor van carriers are to be used for shipments of personal property of military and civilian personnel involving expense to the Government, the services will be obtained generally by means of contracts entered into as provided in Procurement
Regulations and other pertinent regulations and instructions. The disbursing officer best situated to make prompt and expeditious payment should be designated to make payment under such contracts. (See AR 55-105.)
38. Payment for shipment of authorized baggage of military and civilian personnel by commercial van carrier.
a. Regulations Governing Shipment. Regulations governing the shipment of authorized baggage of military and civilian personnel on change of station are contained in AR 55-160. In making payment for the costs of such shipments reference should be made to those regulations.
b. Conditions. AR 55-160 imposes—among others—the following conditions with respect to shipments of authorized baggage:
(1) Weight allowances. Maximum weight allowances are prescribed according to grade of the owner with the provision that baggage in excess of the weight allowance may be shipped under the same bill of lading or contract provided that the owner will bear any excess cost occasioned thereby.
(2) Shipment by commercial van. Shipment by commercial van carrier is an optional service which can be furnished, when practicable, on specific request of the owner in writing. The owner must agree to pay any excess of cost of shipment by commercial van carrier over cost of shipment by means cheapest to the government.
(3) Special services. In some instances special service, specific routing, specific loading, or any other service which involves additional expense may be obtained provided the owner bears any additional expense occasioned thereby.
c. Method of Payment of Excess. The finance officer who settles the account will determine, in accordance with AR 55-160, any excess costs to be collected and notify the owner who, upon receipt of such notification, will promptly remit the amount so determined. If, after making remittance as required, the
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owner for any reason considers the amount remitted as excessive, it is his privilege to file a claim with the General Accounting Office, Washington 25, D. C., for refund of such amount as he may consider to be due him.
d. Additional Evidence Required in Support oe Vouchers for Commercial Van Shipments. (1) W. D., T. C. (Q. M. C.) Form No. 219 (Certificate of Personal Property Shipped). (See AR 55-160.)
(2) Travel orders
(3) Computations furnished by the transportation officer, showing amount of excess costs, or, if no excess costs exist, computations to indicate that fact. (See W. D. Cir. 174, 29 July 1943.)
e. Reimbursement When Shipped at Personal Expense not Ordinarily Authorized. The reimbursement to persons who have had their authorized baggage shipped at their personal expense is not ordinarily authorized unless due to an emergency or other good and sufficient reason existed for failure to have the transportation officer ship the household goods, in which case the Chief of Transportation may ratify the shipment and direct reimbursement of freight charges to such persons, not to exceed the cost of transportation of authorized allowance had shipment been made by the transportation officer, provided that where the temporary change of station allowance or part thereof of authorized baggage was shipped by railway or air express at the personal expense of such persons without prior authority of the Chief of Transportation, he may direct reimbursement of express charges to such persons in an amount not exceeding that which would have been authorized had shipment been made by the transportation officer, if, in his judgment, the necessities of the case required such method of shipment. In such cases, claims for reimbursement will be submitted through military channels, through the Chief of Transportation to the Finance Officer, U. S. Army, Washington 25, D. C., supported by copies of travel orders, in duplicate, original “paid” receipts for amounts expended, and other pertinent and necessary supporting papers. (See AR 55-160.)
39. Payment for packing, crating, and uncrating of authorized baggage in connection with shipment.
a. Regulations Governing Packing, Crating, and Uncrating of Authorized Baggage.
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Regulations governing the packing, crating, and uncrating of authorized baggage at government expense in connection with shipment are contained in AR 55-160. Reference should be made to those regulations in making payment for such services.
b. Conditions. AR 55-160 imposes—among others—the following conditions with respect to packing, etc., of authorized baggage:
(1) Weight allowance. Authorizes packing, crating, and uncrating at government expense of baggage authorized to be shipped at government expense on charge of station. Baggage in excess of the maximum weight allowance may be included provided the owner bears any additional expense occasioned thereby. (See 386 (I)-)
(2) Commercial contracts. Where any existing facilities under the jurisdiction of the commanding general of the service command are available and are adequate to perform the required services, such facilities will be utilized; otherwise commercial contracts will be used.
c. Collection of Excess Costs. In case a charge is to be made against the owner by reason of excess weight, a statement of account will be furnished the owner of the property prior to his departure from the post by the quartermaster or other officer in charge of furnishing the packing and crating services. If for any reason this cannot be done, such statement of account will be mailed to the owner within 10 days after completion of work. Payment must be made to the officer rendering the account not later than the 10th of the succeeding month unless the account is protested. If protest is made, it will be submitted to the commanding officer of the station from which the statement of account was received within 10 days from the date of receipt of such statement.
d. Additional Evidence Required in Support of Vouchers for Packing, Crating, and Uncrating Services.
(1) Travel orders.
(2) Certificate to the effect that the person named in the order is owner of the property actually packed.
(3) Statement showing weight of property packed separately:
(a) Property other than professional books and papers.
(&) Professional books and papers.
(4) Statement showing authorized allowance as prescribed in AR 55-160.
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(5) When the maximum weight allowance has been exceeded, evidence will be furnished by the quartermaster (or other officer handling such services) showing that the excess cost has
been collected and the disposition which has been made of such collection, or a statement as to the steps which have been taken to offset the weight overage. (AR 55-160.)
SECTION V
PAYMENT OF RATION AND SAVINGS ACCOUNTS
40. For organizations on the garrison ration system.
a. General. At the end of the month or when the account is closed under the provisions of AR 30-2210, the sales officer will prepare a ration and savings account on War Department Form No. 373 and three memorandum copies on War Department Form No. 373a, showing for each organization, the period covered, number of rations due, amount of credit due, value of stores purchased, and the balance due the organization or the United States as the case may be. (AR 30-2210.)
b. Certification and Approval. The original only of the account will be signed by the sales officer and approved by the commanding officer. The certificate of availability of funds as prescribed for contracts, etc., in chapter 1, will be stated thereon in addition to the certificate already appearing on the W. D. Form No. 373.
c. Disposition. The original and two copies will be forwarded to the disbursing officer, who will pay the amount due each organization and forward one copy to the service command fiscal officer, certified as to payment. The fourth copy will be retained by the sales officer. (AR 35-6660.)
d. Computation of Value of Garrison Ration Not To Be Shown. Computation of the value of the garrison ration need not be shown on reverse of W. D. Form 373. The value of the garrison ration for each station will be announced monthly by The Quartermaster General, through quartermaster regional depots, and the certificate of the quartermaster as approved by the commanding officer on face of the form may be accepted as guarantee of correctness of cost of the ration as shown in appropriate column. (AR 30-2210.)
41. Patients in hospital.
a. Rate of Commutation. The ration of
patients in hospitals, dispensaries, hospital ships, Army transports, hospital trains, or convalescent camps, pertaining to the Army, will be commuted as follows:
(1) For tuberculous patients at all establishments, at the actual cost of the garrison ration plus 90 percent.
(2) In all other cases, at the actual cost of the garrison ration plus 50 percent.
b. Vouchers. Vouchers covering the commutation referred to above will be prepared on War Department Form No. 351 (Voucher for Commutation of Rations in Hospital) by the custodian of the fund of the Medical Department unit concerned, and after approval by the commanding officer of the hospital will be submitted to the quartermaster.
After completing his records, the quartermaster will forward the vouchers to the disbursing officer for payment direct to the custodian of the fund of the Medical Department unit concerned. (AR 40-590.)
c. Evidence as to Value of Garrison Ration. The space on the IV. D. Form 351 providing for a reference to a voucher on which the value of the garrison ration is computed may be disregarded. (See par. 40$■. iq-S0<4 /fick-l 2
TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes! WAR DEPARTMENT,
No. 1 j Washington 25, D. C., 8 May 1944.
TM 14-504, 1 December 1943, is changed as follows:
Paragraph Ila, line 3, page 11, change reference, (see c (5) to read “ (see c (6).”
Paragraph 12d, line 5, page 13, change reference 9& (6) to read “9h (6).”
Paragraph 17d, page 18, delete subhead, “Unnecessary Withholding of Final Payments.” Delete, beginning with eighth line, second column, “In cases of outstanding Notices of Exception,” to end of subparagraph d.
Paragraph 25, page 32, change “disposal” in subhead to read “disposition.”
Paragraph 34c (3), line 7, page 39, change “25” to read “33.”
Paragraph 37a (2), lines 5 and 6, page 40, change “the Panama Canal, Hawaiian, Philippine, or Puerto Rican Departments”, to read“ the Central Pacific Area, Panama Canal, Philippine, or Antilles Departments,”
Paragraph 51a (3) (a), fine 2, page 45, insert period after “procurements” and delete “quoting these regulations as authority.”
Change Index, pages 50 and 51 to read as follows:
Coal:
*******
Payments made under special provisions in contract______________________ 33 38
Withholding 10 percent of amount of invoices pending analysis of sample_ 35, 36 39
*******
Forms:
*******
Standard Form No. 1064, revised (Schedule of Disbursements)_ 53-66 48
[A. G. 300.7 (26 Apr 44).]
By order of the Secretary of War:
Official:
J. A. ULIO, Major General, The Adjutant General.
G. C. MARSHALL, Chief of Staff.
Distribution:
As prescribed in paragraph 9a, FM 21-6 except Army Fin Sch (250); B (2); C 14 (5); T of Opns (10); Base Comds (10).
For explanation of symbols, see FM 21-6.
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•. H'So4/(ck.
TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes! WAR DEPARTMENT,
No. 2 j Washington 25, D. C., 16 August 1944.
TM 14-504, 1 December 1943, is changed as follows:
Remove pages 3 and 4 and substitute revised pages 3 and 4, and page 4A herewith.
Remove pages 7 through 16 and substitute revised page 7, page 8, revised pages 9,10,11,12, 13, pages 13A and 13B, revised pages 14, 15,16, and page 16A herewith.
[A. G. 300.7 (16 Aug 44).]
By order of the Secretary of War :
G. C. MARSHALL, Chief of Staff.
Official :
J. A. ULIO, Major General, The Adjutant General.
Distribution :
As prescribed in paragraph 9a, EM 21-6; D (2); B (2); C 14 (5); T of Opn (10) ; Base Comd (10).
For explanation of symbols, see FM 21-6.
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CHAPTER 2
PUBLIC VOUCHERS FOR PURCHASES AND SERVICES OTHER THAN PERSONAL
6. Voucher forms.
a. Standard Form Required. Standard Form No. 1034 amended 15 August 1941 (Public Voucher for Purchases and Services Other Than Personal) is prescribed for use generally in vouchering all demands against the Government involving expenditures other than for personal services and kindred expenditures, such as allotments, allowances, pensions, refunds, etc., excepting those demands for which special forms of vouchers have been or may hereafter be approved by the Comptroller General of the United States. This form or Standard Form No. 1047 or 1049, will be used also for vouchering disbursements from special deposit funds. For other forms used in making payment for supplies and other nonpersonal services see chapter 6. (AR 35-1040.) For use of W. D. Form No. 383 see Army Service Forces Manual M 403, Station Supply Procedure.
Z>. Standard Form No. 1035. Standard Form No. 1035 is a first and follow sheet to be used with Standard Form No. 1034. This form will be used when the space for description of articles or services on Standard Form No. 1034 is not sufficient to contain the itemization of the payee’s bill or bills, or other desired information. The total amount of all sheets will be summarized on the Standard Form No. 1034. Preparation and distribution will be the same as that prescribed in paragraph 76. (16 Comp. Gen. 1128.)
7. Preparation of Standard Form No. 1034.
a. General. (1) When prepared by disbursing officers. Upon the receipt of purchase orders or delivery orders with corresponding vendor’s invoice in triplicate (only the original of which will be signed) and receiving reports in duplicate or in case of nonpersonal services the required certificates prescribed in chapter 3, public voucher for payment of such invoices will be prepared and the administrative certificate on the voucher will be signed by an officer of the finance office, or as prescribed in f (3) (a) below. Officers preparing the vouchers will accept from duly accredited inspectors their certificates of inspection and acceptance on receiving report as authority for executing administrative certificate on Standard Form No. 1034. Officers
charged with furnishing inspectors to inspect supplies at points of origin will furnish the disbursing officer designated to make payment with the names and certified specimen signatures of all inspectors authorized to inspect and accept supplies in behalf of the United States, indicating their field of operations. If the inspector is authorized to operate for all stations of his arm or service, the words “General authority” will be used in indicating his field of activity; but if he is authorized to operate only for a specific station, or stations, designation thereof will be made. (AR 35-1040.)
(2) When prepared by other than disbursing officer. Procuring officers may initiate, prepare, and certify vouchers covering the procurement of supplies and nonpersonal services. In such cases, the original signed copy of the receiving report will not be required to be furnished to the disbursing officer. Only an unsigned copy of the receiving report will be required, as the accomplished administrative certificate attest to the receipt of the supplies. The preparation of vouchers by the procuring officers does not relieve disbursing officers of their responsibility for the correctness of expenditures requiring their audit, including examination of necessary supporting papers. The certifying officer shall be held responsible and accountable for the existence and correctness of the facts set forth on all vouchers that are prepared and certified to by any officer of the procuring agency including the correctness of computations shown on certified vouchers and on any required supporting documents. (AR 35-1040.)
Z>. Number and Distribution of Copies. (1) Number of copies. Standard Form No. 1034 will be prepared in original, duplicate (Standard Form No. 1034a) and generally triplicate (as indicated in (2)(&) below), except for vouchers covering accounts for travel and transportation of things, where Standard Forms Nos. 1113 and 1113a may be used. (22 Comp. Gen. 1172). Additional copies may be made where local circumstances require.
(2) Distribution of copies, (a) Original and duplicate will be distributed as prescribed for all disbursing vouchers.
(Z>) Triplicate—disbursing officers will trans
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mit copies of paid vouchers to the respective fiscal components by which the underlying allotment or suballotment accounts are maintained, with the following exceptions:
1. Vouchers chargeable to general allotments or open allotments as defined in AR 35-840.
2. Vouchers covering accounts of common carriers for travel and transportation of things. (Cir. No. 163, W. D., 1944.)
(3) Station number and location of fiscal component to be shown on disbursement vouchers and certain obligating documents.
(a) The original and all copies of disbursement vouchers, whether submitted to or prepared by disbursing officers, will include the station number on the face of the voucher immediately following the appropriation, service, allotment, project and object coding. The letter “S” will be prefixed to the station number. The following accounting symbols illustrate the manner in which the station number will appear on the voucher:
212/50502 QSA 1942-45 507-6129 P 131-07 S 36-030
Only station numbers listed in chapter 8, TM 14-700, War Department Fiscal Code, except as provided below, will be used to designate the fiscal station locations.
All disbursement vouchers which are transmitted by disbursing officers to Army Regional Accounting Offices, and which are chargeable to general or open allotments or cover accounts 'of common carriers for travel and transportation of things will reflect the following arbitrary station number:
S 99-999
Disbursement vouchers submitted by disbursing officers to foreign theater fiscal offices will not show a station number. (Cir. No. 163, W. D., 1944.)
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The station number of the disbursing officer will be placed in the upper right-hand corner of each disbursement and collection voucher directly below the disbursing officer’s symbol number.
(6) With respect to vouchers prepared by other than disbursing officers, and copies of which are required to be returned by the disbursing officers, after payment, to the fiscal components maintaining the underlying allotment or suballotment accounts, as provided in (2) (&) above, the copy of each voucher which is to be returned wTill bear the notation, “Forward copy of voucher to (name and address of the fiscal component which is to receive the copy of the paid voucher and maintain the allotment or suballotment account to which it pertains).”
(c) With respect to vouchers prepared by disbursing officers, each purchase order, delivery order, contract, or other obligating instrument underlying the vouchers, of which paid copies are required to be transmitted, after payment, to the fiscal components being charged with the expenditures, also will bear the notation, “For-ward copy of voucher to (name, address, and station number of fiscal component).” (Cir. No. 163, W. D., 1944.)
(d) Promptly after payment of the voucher, the triplicate copy thereof or insert sheet will be transmitted to the fiscal component concerned not later than the close of the first business day following that in which payment has been made.
Note. Alternate method of furnishing paid voucher information. In lieu of the insert copy method of transmitting paid voucher information to fiscal components, a card report method may be used in cases where this method is more feasible and practicable, such as cases covering vouchers for reimbursement for transportation of dependents or complicated vouchers covering reimbursement of per diein. Such card report will cite the allotment number, order number, source, date, name of the traveler or payee, and the amount, together with the name, station identification, and voucher number of the disbursing officer. (AR 35-1040.)
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c. Heading. The heading will be filled in to show “War Department,” which may be followed by the name of the arm or service preparing the voucher, that is, Finance Department, Ordnance Department, etc., giving the place and date at which the voucher is prepared. The name and address of the corporation, firm, or person rendering the services or furnishing the articles for which payment is made will be shown and the number of the payee’s invoice when available may be shown in order to identify the account being paid.
d. Body. (1) First column will show number and date of preparation of purchase order or delivery order.
(2) Second column will show date or dates of delivery of supplies or performance of services.
(3) Third column will include in the heading the terms of discount if applicable to payment. Description of supplies or services will be shown unless the invoice showing this data is attached to the voucher in which event appropriate reference may be made in the third column to the invoice, such as: “Per detailed bill herewith.” Special notations (see par. 8) will normally be made in this column.
(4) Columns four, five, and six need not be used in the event invoice or invoices are attached as explained in (3) above, otherwise column four will show for each item, quantity in terms of the unit of measurement shown in the sixth column. Column five will show for
TM 14-504
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each item the price in terms of unit of measurement shown in column six. Column six will show the unit of measurement for each item.
(5) Column seven, “Amount,” will show extended value for each item. Where reference is made to the supplies or services itemized on the invoice, the total for each individual invoice will be shown in this column and where continuation sheets are used (Standard Form No. 1035), the total for each sheet will be brought forward to this column.
(6) Where payment is made for supplies or nonpersonal services procured on a numbered contract, the number and date of the contract will be entered in the space provided. Also to be entered in this block are the requisition number (if any), date, and the date of receipt of invoice by the officer preparing the voucher.
e. Vendor’s Certificate. The certificate which reads as follows:
“I certify that the above bill is correct and just; that payment therefor has not been received; that all statutory requirements as to American production and labor standards, and all conditions of purchase applicable to the transactions have been complied with; and that state or local sales taxes are not included in the amounts billed.”
is to be signed by the payee or his duly authorized agent and is commonly known as the Vendor’s Certificate. This certificate must be signed in ink or indelible pencil, showing the title of the signer. In lieu of completion of the Vendor’s Certificate on the voucher, this certificate may be executed (in full) on the
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service rendered may be signed and the vouchers certified by the local agent in charge of the business of the company at the place where the service is rendered or where it begins or terminates. The certificate of the officer who made the payment that the person to whom payment was thus made was then the local agent of the company in charge of its business at the place designated will be sufficient evidence of the agent’s authority to certify to the vouchers and to receipt for the money paid. (AR 35-1040.)
(tZ) Payments to individuals or copartnerships doing business under company titles. If payment in currency is made to an individual or to a copartnership doing business under a company title, the certificate and receipt will be signed with the company name, followed by the autograph signature of the individual proprietor or of one of the members of the firm with the words “Proprietor” or “one of the proprietors” affixed thereto. (AR 35-1040.)
(e) Payment to copartnership doing business as such. If payment in currency is made to a copartnership doing business as such, the certificate and receipt will be signed with the firm’s usual signature by one of the members of the firm, who will be required to affix his own signature as “one of the firm.”
(/) Payment to individuals. If payment in currency is made to an individual creditor, the certificate and receipt will be signed by him in person. (AR 35-1040.)
i. Spaces Not Used by War Department. The spaces on voucher forms providing for “General Accounting Office Pre-Audit,” “Allotment symbol,” “Amount,” “Obligations liquidated,” “Cost Account,” and “Objective Classification” are not applicable to the War Department. (AR 35-1040.)
8. Special voucher notations.
a. Partial Payment. Vouchers prepared by disbursing officers covering partial deliveries of supplies or partial payments under contracts will include the notation “Partial payment” entered on the face of each voucher and all copies thereof, partial payment vouchers prepared by other than disbursing officers need not
TM 14-504
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include such notation. The notation “Final payment” will be placed on the voucher and all copies thereof, on which final payment is made, regardless of whether the voucher is or is not prepared by a disbursing officer. It will not be necessary to prepare a recapitulation of previous payments on final payment vouchers.
b. Demurrage on Empty Cylinders. Vouchers covering demurrage charges on gas cylinders or drums retained beyond the contract free period may be submitted on the quantity basis, that is, on the basis of a number of cylinders, where contracts provide for demurrage payments upon such quantity basis, but in such cases there should be submitted an explanation of the method of calculating demurrage, proper citation to the disbursing officer’s voucher covering the preceding demurrage payment, and other identifying data, such as the cylinder number, date cylinder was delivered, date rental starts, date cylinder was returned, and the actual number of days and rate per day on which the charges were computed, in order to meet the audit requirements of the General Accounting Office. There will also be shown the disbursing officer’s voucher upon which payment was made for the filled containers. (19 Comp. Gen. 53.) (AR 35-1040.)
c. Payments on Supplemental Vouchers. Where payment is made on supplemental voucher, a reference to the voucher on which the first payment was made will be noted on the supplemental voucher.
d. T. P. S. Gasoline Zones. The zone in which delivery was made will be stated on vouchers covering payments for gasoline under Treasury Procurement Schedules contracts, where such zone deliveries are specified in such contracts and noted on purchase orders or other procuring instruments. (AR 35-1040.)
e. Cost-Plus-a-Fixed-Fee Notations. In order to expedite the segregation of vouchers in disbursing officers’ accounts upon receipt thereof in the General Accounting Office, all cost-plus-a-fixed-fee vouchers will be so designated by placing the notation “CPFF” at the top of each Standard Form No. 1034.
f. Miscellaneous Notations. See chapter 6.
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CHAPTER 3
SUPPORTING PAPERS TO VOUCHERS
9. Contracts and purchase orders.
a. General. Reference should be made to Procurement Regulation Number 3 for detailed information with respect to—
(1) Authority to make awards, contracts, and modifications thereof; required approvals.
(2) Formalities in connection with the execution of contracts and modifications thereof.
(3) Distribution of contracts and orders thereunder.
(4) Contract procedure within the Service Commands.
(5) Standard forms of contracts.
(6) Procurement policies, etc.
1). General Requirements for Contracts.
(1) Every purchase transaction except those where payment is made coincidentally with receipt of supplies will be evidenced by a written contract.
(2) Contracts may be either formal or informal.
(3) A formal contract is one which is contained in one instrument executed by both parties. Formal contract may be used for any purchase transaction, regardless of amount and vnll be used for all purchase transactions, the contract price of which exceeds $500,000.
(4) For any purchase transaction, the contract price of which does not exceed $500,000, an informal contract consisting of two separate instruments, one signed by the contractor and the other signed by the contracting officer on behalf of the United States, may be used.
(5) (a) When a purchase order is preceded by a written quotation or is followed by a written evidence of acceptance executed by the contractor, it is to be regarded as an informal contract consisting of two instruments; and accordingly, may be used, in accordance with (4) above, for any purchase transaction the contract price of which does not exceed $500,000. If the contractor’s assent is not evidenced either by a written quotation or by acceptance of the purchase order in writing, the purchase order may nevertheless be used for any purchase transaction the contract price of which does not ex
ceed $500,000 provided that the purchase order is preceded by an oral quotation or is based upon a price list.
(J) When the contractor furnishes no evidence of his assent either by a written or oral quotation, by a written acceptance, or by the publication of a price list, the purchase order may not be used for any transaction the contract price of which exceeds $5,000; but may be used for any transaction the contract price of which does not exceed $5,000.
(c) As pointed out in (Z>) above, it is not necessary that a purchase order which does not exceed $5,000 in amount be preceded by a quotation. If the contract price exceeds $5,000, however, the following rules shall apply:
1. If the purchase order was preceded by a written quotation signed by the contractor, or if the contractor delivered some written instrument evidencing the contractor’s assent, such written quotation or instrument should be forwarded to the General Accounting Office.
2. If the contractor did not furnish a written quotation or written evidence of its assent and the purchase order merely accepted an oral quotation or was based on a price list, the purchase order, as forwarded to the General Accounting Office, should contain a reference to the oral quotation or price list. This may consist of a simple statement such as “Pursuant to oral quotation of_____________,
194_ or “Pursuant to_____________
(Name of contractor or other identification)
price list, dated_______________?
194—” (See par. 303, Procurement Regulations.)
c. Numbering Contracts. (1) When required. Every contract involving the receipt
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or expenditure of public moneys will be numbered when—
(a) The actual or estimated amount involved is $5,000 or more.
(b) When more than one payment (or receipt) is involved, regardless of the amount involved. (See par. 309.1, Procurement Regulations.)
(2) System. See paragraph 309, Procurement Regulations.
d. Numbered Contracts (and Purchase Orders). The disbursing officer must require for his files an authenticated copy of each contract required by c above to be numbered. Procurement Regulations provide that the original signed numbers be forwarded directly to the proper Army Audit Branch of the General Accounting Office by the purchasing and contracting officers. In making payments under numbered contracts it is not necessary that any of the original vouchers be supported by such contracts or copies thereof. (See par. 316, Procurement Regulations.)
e. Unnumbered Contracts (and Purchase Orders). The disbursing officer must require the signed original contract and an authenticated copy. The original signed number will be attached to the voucher on which payment is made and will accompany such voucher to the proper Army Audit Branch, General Accounting Office. The authenticated copy will be attached to the duplicate copy of the voucher to be retained in the disbursing officer’s files. (See par. 317, Procurement Regulations.)
/. Statement and Certificate of Award (Standard Form No. 103b). (1) When con
tracts are negotiated in accordance with the authority referred to in paragraph 204 "(Procurement Regulations), Standard Form No. 1036 need not be executed. (General Regulations of Comptroller General No. 51, Supp. No. 8, 1 June 1942.) However, when Standard Form No. 1036 is not executed either—
(a) the notation “Negotiated Contract,” signed by the officer negotiating the contract, should appear under or in close proximity to the contract symbol and number on the cover sheet of the contract or,
(b) the contract should show in the wording thereof that it was negotiated under the authority referred to in paragraph 204 of Procurement Regulations (Decision of Comptroller General, dated 11 July 1942 (A-51607), rendered in response to letter of Acting Judge Advocate General of Navy dated 27 June 1942).
(2) If in exceptional cases contracts are awarded pursuant to formal advertising, Standard Form No. 1036, properly executed in accordance with instructions contained on the form, will be attached to the copy of the agreement which is furnished the General Accounting Office. (See par. 312, Procurement Regulations.)
g. Special Certificates or Notations Required on Procuring Instruments (or on the Related Vouchers).
(1) Reference to oral quotation or price list. See paragraph b (5) (c) 2 above.
(2) Notation “Negotiated Contract'1'1 or statement of authority for negotiation. See 10<7.
(3) Purchase from contingent fv/nds. The following supplemental certificate is prescribed for vouchers involving payment for articles
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purchased from the contingent fund appropriated to the Army Air Forces, or to any supply arm or service:
It is further certified that the above articles chargeable to contingent appropriations were procured after direction given as required by section 3683, Revised Statutes (31 U. S. C., 675; M. L., 1939, Supp. II, sec. 1742).
(4) Supplies, etc., for motor-propelled passenger-carrying vehicles. In order to enable disbursing officers to furnish the General Accounting Office with information required by that office in connection with payments from appropriations covering supplies, equipment, spart parts, accessories or services for motor-propelled passenger-carrying vehicles, all procuring instruments covering the purchase of such supplies, equipment, spare parts,. accessories, or services for use in the operation, maintenance, or repair of motor-propelled passenger-carrying vehicles will bear the following certificate:
None of the supplies or services covered by this instrument is to be used in violation of legal restrictions quoted in War Department Circular No. 340, 1944.
(5) Long-distance telephone tolls. See paragraph 26c.
(6) Nonpersonal services. When the voucher covers nonpersonal services rather than supplies, in lieu of the, receiving report, the following certificate may be used on a copy of the purchase order, or it may be furnished on ' an additional copy of work orders, invoices, or on a separate sheet if the language used in the certificate is modified to show the purchase order under which the services were authorized:
I certify that the services called for in this purchase order have been rendered in accordance wtih the terms of the order and the specifications governing same. (See par. 10.)
(7) Mandatory items under contracts of the Procurement Division, Treasury Department {General Schedule of Supplies') purchased elsewhere. (a) Requirement. Purchases will be made from contracts of the Procurement Division, Treasury Department (General Schedule of Supplies), when so directed by the chief of the technical service concerned or when required by the terms of the contracts unless the items can not be furnished under such contracts within the time that the item is required by the technical service concerned.
(Z>) Emergency Purchases. In any case where, pursuant to the provisions of (a) above, purchase of an item listed in the General Sched
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ule of Supplies is not made under a General Schedule of Supplies Contract because the item could not be furnished under such a contract within the time that the item is required by the voucher submitted to the disbursing officer for payment shall contain a finding that—
1. The purchase was justified because the item could not be furnished under the General Schedule of Supplies Contract within the time in which the item was required.
2. The purchase outside the General Schedule of Supplies Contract was necessary to facilitate the prosecution of the war and was authorized under the First War Powers Act and Executive Order No. 9001. Such finding shall be final and conclusive. The authority to make such a finding is vested in the chiefs of the technical services and may be delegated to any officer or civilian official under their jurisdiction, including the contracting officer. It is to be emphasized that this authority is only to be used when necessary, and that it should not be construed to authorize disregard of the requirements of the General Schedule of Supplies. In all cases, the finding should consist of more than a mere conclusion. It should set forth the specific reasons why the time element made the purchase necessary. (See par. 606, Procurement Regulations.)
(c) For further detailed information, refer-erences should be made to Procurement Regulation No. 6.
(8) Blind-made products. The law requires that Federal Agencies purchase all brooms, mops, and certain other articles from nonprofit making agencies for the blind; however, a general clearance has been granted for the purchase of these items, under certain conditions, from commercial sources, such clearance being published in Procurement Regulation No. 6. When such items are purchased commercially, reference to this clearance must be made on contracts or vouchers. (See Procurement Regulation No. 6.)
(9) Products of the Federal Prison Industries, Inc. The law requires that Federal
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Agencies purchase certain items from the Federal Prison Industries, Inc. General clearance is granted from time to time for the purchase of these items, or a portion thereof, from commercial sources, and when such items are purchased commercially reference to the clearance must be made on the contract or voucher. These clearances are published in Procurement Regulation No. 6, which also lists the articles that are available and can be furnished by the Federal Prison Industries, Inc. (Procurement Regulation No. 6.)
(10) Printing, binding, and blank book work. The following supplemental certificate is prescribed for use on vouchers involving payments for all printing, binding, and blank book work accomplished or procured elsewhere than at the Government Printing Office in Washington:
I hereby certify as responsible officer in the field that the printing and/or binding covered by this voucher was, in my opinion, urgent or necessary to have done elsewhere than in the District of Columbia for the exclusive use of a field office of this department (or establishment), and that same is of the class and within the limitation specified in paragraph_of the regulations
of the Joint Committee on Printing or in the special authorization of the committee, a copy of which authorization is attached hereto or to voucher
(Describe, giving number, etc.)
(Procurement Regulation No. 6, and AR 35-1040.)
10. Delivery orders.
a. Contracts for Supplies. Delivery orders are usually used to request delivery of supplies under contracts which provide for delivery from time to time as required.
b. Contracts for Services. When a contract provides for the furnishing of services as required from time to time, the services will be confirmed periodically, or after the services have been furnished, by means of a delivery order, upon which the services furnished will be enumerated and covered by the following certificate:
I certify that the services covered by this delivery order have been rendered in accordance with the terms of the contract and the specifications covering same. (See par. Qg (6).)
c. Copies Required by Disbursing Officer and Disposition Thereof. When a delivery order is used under a and b above, the disbursing officer will be furnished with the original and one copy thereof. The original will be attached to the original voucher and the duplicate to the duplicate voucher.
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d. Delivery Orders Issued Under Contracts of Procurement Division, Treasury Department; Navy Department; Post Office Department ; Etc. (1) The disbursing officer must require the original and an authenticated copy of each delivery order issued under the above referred to contracts. The original will be attached to the voucher on which payment is made and will accompany such voucher to the Army Audit Branch of the General Accounting Office. The authenticated copy will be attached to the duplicate copy of the voucher to be retained in the disbursing officer’s files. Vouchers submitted to the Army Audit Branch of the General Accounting Office may relate to less than all of the items covered by the delivery order. The original signed number of the delivery order will be submitted to the Army Audit Branch of the General Accounting Office with the first voucher. When vouchers are submitted to the Army Audit Branch of the General Accounting Office covering subsequent payments, a reference will be made to the first voucher. The reference should contain the date on which the invoice covered by the first voucher was paid and the name of the disbursing officer by whom such payment was made. (Procurement Regulation No. 3.)
(2 ) Chiefs of technical services (and commanding generals of service commands) are responsible for advising installations under their jurisdiction as to the terms and conditions of such contracts. Request for the General Schedule of Supplies (contracts, Procurement Division, Treasury Department) should be forwarded through military channels to the appropriate headquarters. (Procurement Regulation No. 6.)
11. Vendor’s invoices.
a. General. If a vendor submits for payment an invoice or bill on which is shown the required certificate duly signed (see c(5) below), such invoice or bill may be accepted if it constitutes a valid claim against the Government, and will be fastened securely to the voucher in lieu of stating the invoice or bill in detail on the voucher form and securing the vendor’s certificate thereon. More than one invoice or bill of the same vendor may be attached to and paid on a single voucher, provided the transactions are under the same
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agreement and/or under the same conditions as to method or absence of advertising, etc. In such case each invoice or bill should be described on the voucher sufficiently to identify it and the amount of each carried to the “Amount” column. The words “per detailed bill herewith” or words of like import may be used to describe the invoice or bill in cases where only one invoice or bill is paid on a voucher. The voucher will be otherwise completed in due form. Original bills need not be attached to vouchers when a bill of lading or transportation request accompanies a voucher for transportation services performed under public tariffs. Where the vendor does not make use of a printed invoice form or is otherwise unable to state his account as prescribed herein, Standard Form No. 1034 may be prepared and forwarded to the payee for certification prior to payment (MS. Comp. Gen. A-78922, A-51624, 28 October 1936, and MS. Comp. Gen. A-95162, 12 October 1938.)
b. Form in Which Furnished. The invoice when containing the executed certificate constitutes the principal part of the voucher and should not be a copy or a duplicate. Disbursing officers when supporting their vouchers with payee’s certified invoices should use only the originals. Payment will not be made on invoices which are marked “copy,” “duplicate,” “duplicate invoice,” or other similar markings. Payment may be made on vouchers to which are attached CORRECTED invoices issued to replace erroneous invoices, provided that, in order to avoid duplicate payments, such invoices are marked “corrected” and are supported by the original erroneous invoices marked “void.” (MS. Comp. Gen. A-51601, 17 Feb. 1934; Cir. No. 145, W. D., 1944.)
c. Certification by Vendor. (1) The following certificate will be furnished by the vendor :
I certify that the above bill is correct and just; that payment therefor has not been received; that all statutory requirements as to American production and labor standards, and all conditions of purchase applicable to the transactions have been complied with; and that State or local sales taxes are not included in the amounts billed.
(MS. Comp. Gen. A-51607,15 August 1941, and MS. Comp. Gen. A-49009,12 December 1941.)
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(«) Where a contract for supplies is awarded on the basis of including State and local sales taxes in the purchase price without the deduction of an amount representing such taxes, the general certificate for vouchers and invoices prescribed in (1) above may be modified by eliminating therefrom the phrase “and that State or local sales taxes are not included in the amounts billed,” provided that, in all cases where the legal incidence of such taxes is upon the vendee, appropriate steps are taken to obtain appropriate tax exemption certificates from the dealers. (21 Comp. Gen. 719.)
(Z>) As of 13 March 1942, the restrictions imposed by the Act of 3 March 1933 (47 Stat. 1520) were suspended, except for certain articles of food and clothing, by the Secretary of War. (P. R. 503.)
(c) In those cases where vouchers are presented to disbursing officers covering foreign-made products and the local or foreign vendor cannot give certificate as prescribed above, the disbursing officer may make payments without requiring that part of the certificate which reads “that all statutory requirements as to American production and labor standards,” provided that the articles for which payment is claimed are not barred by the Act of 3 March 1933 as suspended.
(2) The following procedure is prescribed for the certification of vouchers and invoices of contractors and their subcontractors, under contracts with the United States on a cost-plus-a-fixed-fee basis:
(a) The general certificate prescribed in (1) above will be used on “cost-plus-a-fixed-fee” contractors’ and subcontractors’ vouchers and invoices covering material or equipment which is exempt from taxation by the laws of States or ordinances of municipalities in which the material or equipment was procured.
(Z>) For “cost-plus-a-fixed-fee” contractors’ and subcontractors’ vouchers or invoices covering transactions in States or municipalities which do not exempt the United States from taxation, the general certificate prescribed in (1) above will be used with the deletion, or noninclusion, of the statement “that State or local sales taxes are not included in the amounts billed.” (MS. Comp. Gen. A-51607, A-49009, 9 February 1942.)
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(3) Vouchers in favor of the Defense Plant Corporation, covering surplus machine tools and other equipment, may be accepted for payment with a portion of the payee’s certificate on Standard Form No. 1034 deleted, so that the certificate will read as follows:
I certify that the above bill is correct and just; and that payment therefor has not been received.
(4) Where a contract provides for the purchase of gasoline, kerosene, fuel oil, etc., at posted tank wagon, barge, or service station price (not to exceed a stated maximum), a certificate substantially as follows will be added to the voucher or invoice in addition to the certificate prescribed in (1) above:
I certify that tank wagon (or barge, service station, etc.) price, at date and point of delivery, is as stated herein. (MS. Comp. Gen. B-33371, 29 May 1943.)
(a) In some cases vendors have not been required to state “posted” prices and transportation costs separately on invoices submitted. Such vendors have billed the Government at the maximum contract price, which results in overpayments of amounts due vendors. In order to eliminate suspensions, invoices should be checked for the information required by Procurement Division, Treasury Department, Schedule No. 1, Class 7—Gasoline, Special Conditions, as follows:
“Invoices, submitted at stated times (weekly or monthly) as requested by the ordering activity, shall cover all deliveries to that activity during the named period of time. Each invoice shall show all applicable invoice data, the TPS contract number, item number and, for
“() Tank car and transport truck items.— The contractor’s certified open-market price on date of shipment, publicly ‘posted’ at the bulk plant from which shipment was made. Invoices for items awarded f. o. b. destination with shipment by common carrier shall also show all transportation costs.
“(, c, and d below, property procured under contract or purchase order will* be listed on receiving report prepared on W. D., Q. M. C. Form No. 431 (Receiving re
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port) or, if received by a sales store, W. D., Q. M. C. Form No. 393. (AR 35-6560; 35-6660.)
(2) Certification. The original of the receiving report will be duly certified by the person who inspects and accepts the property for the Government. Such person may be the contracting officer or his duly accredited inspector or the officer who will assume accountability or his representative. (AR 35-6560.)
(3) Copies to be furnished disbursing officer. The original certified receiving report and one unsigned carbon copy will be forwarded to the disbursing officer designated by the contract or purchase order to make payment to the vendor, except that when a receiving report lists only articles exempted from property accountability under the provisions of AR 35-6520 and/or expendable property covered by a certificate of expenditure for immediate consumption (see AR 35-6620),-only the original signed receiving report is required by the disbursing officer and a carbon copy need not be forwarded to him. When the voucher is certified by the procuring officer, it is not necessary that the original receiving report be furnished the disbursing officer, the signature of the procuring officer to the administrative certificate on the voucher being sufficient to establish the fact that the supplies have been duly inspected and accepted. However, the carbon copy of the receiving report will be furnished for property audit purposes. (See par. 7a (2).) _
(4) Disposition by disbursing officer. (a) Original. The certified original will be retained by the disbursing officer with the duplicate copy of the voucher as evidence of his authority for accomplishing the voucher and executing the administrative certificate thereon.
(&) Carbon copy. When payment has been made, the disbursing officer will have this copy notated to give the following data, and forwarded to the fiscal director of the service command in which the property will be accounted for: Paid on Voucher________________________-
(station)
accounts of________________, for_______________
(See (5) below.)
(5) Disposition by disbursing officer when receiving report covers supplies received by a sales store. When this type of receiving report is received the following procedure will
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be followed in lieu of that prescribed in (4) above•
(a) Upon receipt of the receiving report the disbursing officer will have the prices shown thereon checked against those shown on the contract or purchase order. If there is a disagreement he will take steps immediately (through direct correspondence with the purchasing and/or receiving officer) to have the discrepancies corrected. When the necessary corrections have been made and the report returned the disbursing officer will have the unsigned copy stamped with the designation of his office and the date, authenticated by his initials or those of his authorized representative and forwarded at once without letter of transmittal to the fiscal director of the service command in which the post, camp, or station concerned is located. The signed original receiving report showing the date upon which the unsigned copy was forwarded to the fiscal director of the service command will be retained as authority for executing the administrative certificate on the payment voucher. (AR 35-6660.)
(5) When the account is paid, if there is a material difference between the amount paid and the amount shown on the receiving report (disregarding trade discounts) the fiscal director of the service command will be advised accordingly. Corrected copies will be processed and transmitted in the same manner as the original copies and if payment has already been made on the original copy, a full statement of the circumstances will be forwarded to the fiscal director of the service command with tire corrected copy. (AR 35-6660.)
5. Procurement of Nonpersonal Services. In case of procurement of nonpersonal services rather than supplies, certification will be made on the contract, purchase order, or delivery order in accordance with paragraph 9y (6) or 105 in lieu of a receiving report.
c. Property Procured by Organizations Away From Home Station. See chapter 3, TM 14-505.
d. Property Procured Under Exceptional Conditions. Special procedures (differing
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from that prescribed in a above) have been prescribed for receiving property procured under exceptional conditions, such as under cost-plus-a-fixed-fee contracts, supplies, the unit price of which does not exceed $10, and property procured for defense aid. (AR 35-6560.)
12.1. Recording of commercial accounts.
a. Commercial vouchers submitted by components of the War Department to disbursing offices for payment should be processed promptly. Where posting to Bills Registers prior to payment is a prime cause of payment delay, such posting should be made after payment.
5. W. D., F. D. Form No. 1 (Bills Register) was designed for the recording of related papers received from three or more independent sources, which are necessary to complete a voucher. In the case of prepared vouchers (usually Standard Form No. 1034) certified and submitted by agencies and installations, all necessary papers are presented at one time, hence the need for posting detailed data to the Bills Register does not exist. In posting to Bills Registers data relating to this class of vouchers, at least six columns under four separate headings may be disregarded and posting should be limited to the following:
(1) Name and address of firm.
(2) Contract number, if any, or purchase order number, where more than one payment is involved.
(3) Bureau or agency voucher number, if shown on the voucher.
(4) Date of receipt of voucher.
(5) Net amount of voucher.-
(6) Voucher number.
(7) Date check mailed.
(8) Register or “Block” numbers, if considered necessary or desirable, and, where appropriate, remarks.
c. Normally, vouchers of the class referred to herein should be audited and paid within 72 hours after receipt, and disbursing officers are urged to make every effort to reduce the time of processing these vouchers to a minimum.
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PROCURING INSTRUMENTS I. PURCHASE
ORDER 2. RO. and BID 3. CONTRACT
INVOICES
RECEIVING REPORTS
TRI. VOUCHER FOR BILLS REGISTER ENTRY
DLLR
FILE CLERK STAMPS PAPERS BILLS REG. ENTRIES RECORDS DISCOUNTS AND DISBURSEMENTS
NUMBERED PROCURING INSTRUMENTS
UN-NUMBERED PROCURING INSTRUMENTS
RECEIVING REPORTS INVOICE
PRINCIPLE CLERK SUPERVISES FINAL AUDITS
VOUCHERS
VOUCHERS
FINANCE OFFICER
SIGNS NO. 1034
PAID BY CASH
—1 1 <
PAID BY CHECK
| CASHIER |
1
ACCOUNTING
SECTION
CASH VOUCHERS^
PAID BY CHECK
CLERK AUDIT , TYPE AND ASSEMBLE “ VOUCHERS
ORIG. VOU. TO ARMY
REGIONAL ACCOUNTING OFFICE
DUP VOU. TO
OFFICE
FILES
CHECK SECTION
DUP. R.R. TO S.C.FD.
/
Figure 1. Commercial accounts.
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14-504
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TM
ALL PAPERS
FROM INCOMING MAIL TO
OUTGOING MAIL
Figure 2.
Work flow chart, commercial accounts.
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CHAPTER 4
PROMPT PAYMENT OF BILLS AND ACCOUNTS
13. General.
Disbursing officers will not pay an account until due, but payments will be made promptly of all accounts as they become due and payable. A vigorous follow-up will be maintained by disbursing officers to secure documents needed to complete payment of all commercial accounts, This action will consist of correspondence or other communication with the procuring or receiving agency involved, requesting the documents needed to support final payment. If, after proper follow-up has been made and sufficient time has elapsed for the required supporting documents to be submitted, the documents have not been received, a report of the matter will be made, through channels, to the commanding officer of the installation which has failed to provide the necessary supporting documents. This report will include a brief statement of facts, a list of the missing documents, the amount of cash discount involved, if any, and the steps that have been taken by the disbursing officer to secure the necessary supporting papers. When it becomes evident that payment of invoices will be delayed because of the necessity for advance decisions, advice of higher authority, correspondence with procuring officers, or other similar causes, the vendor will be notified by letter, which may be a form letter, advising him of the prospective delay, the reason therefor, and the probable date of settlement. (AR 35-6200.)
Note. Payment of invoices covering perishable subsistence stores. Immediate action is to be taken by all disbursing officers to insure payment of invoices covering perishable subsistence stores within 48 hours after receipt. Disbursing officers will adopt vigorous and positive means to accomplish this purpose and any difficulty in meeting the 48-hour objective will be reported to the Office of the Fiscal Director through the service command.
14. Cash discounts.
a. No Consideration To Be Given Cash Discounts in Awarding Contracts. Offers of prompt payment or cash discounts will not be considered in the award of contracts or purchase orders, but, if such an offer is made, the Government reserves the right to take advantage of the same according to its terms in making payment. (PR 3; PR 1180.)
b. Payment To Be Made Within Discount Period Where Possible. In all cases of bills for the payment of which on or before a certain date or within a certain time a cash discount is offered, advantage will be taken of the offer of such discount and payment made on or prior to the date on which the discount feature expires, if possible to do so. To accelerate the processing of the document involved, purchasing and contracting officers are required (by paragraph 1180.4, Procurement Regulation No. 11) to enter on each purchasing instrument involving cash discount the words Discount-Expedite. (PR 3; PR 11; AR 35-6200.)
c. Character of Offer of Discount. In general, the deduction of discounts under agreements by the Government to purchase supplies is authorized only when the vendor has made an express offer of such discounts, and a mere statement as to discounts, shown on the printed commercial bill of the vendor submitted for payment, is not generally to be regarded as such an express offer. (23 Comp. Dec. 141; 2 Comp. Gen. 83; 5 id 739.)
Note. The decisions cited above pertain to formal contracts only. In cases of informal purchases, a statement as to cash discount appearing on a dealer’s invoice should be considered an offer of cash discount of which advantage should be taken, and any protest by a dealer against deduction of such discount, on the ground that his bid or the procuring instrument was silent as to cash discount, or that the procuring instrument showed the price to be net, should be considered as a claim to be submitted to the General Accounting Office for direct settlement. (AR 35-6200.)
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d. In Case of Doubt, Discount To Be Taken. In cases in which there is involved any question, as between the Government and the payee, of the right to deduct the discount, in the interest of making prompt payments, and to save the right of the Government to the discount if it subsequently should be determined to have been properly deductible at the time of payment, the discount should be deducted and payment of the balance tendered the payee, who, if not satisfied, may accept the payment under protest and file claim in the General Accounting Office, either direct or through military channels for a refund of the amount deducted. (AR 35-6200.)
e. Where Discount Erroneously Taken, Disbursing Officer To Make Settlement. Vouchers for repayment of discounts errone
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ously deducted will be paid by disbursing officers without being referred to the Office of the Fiscal Director for settlement by the General Accounting Office where the facts clearly show that the vendor is properly entitled to payment.
/. Loss of Discount no Cause for Further Delay in Payment. Request for advance decision of the Comptroller General as to the propriety of payment, or submission of an account to the General Accounting Office for direct settlement, solely because of loss of discount, is not necessary. In no case should payment be further delayed because a discount has been lost through delayed payment. (AR 35-6200.)
g. Responsibility for Loss of Discount. There is no obligation upon the disbursing officer to justify failure or to obtain waivers for
U. S. GOVERNMENT PRINTING OFFICE: 1944
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LIBRARY
TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes 1 WAR DEPARTMENT,
No. 3 j Washington 25, D. C., 6 September 1944.
TM 14-504, 1 December 1943, is changed as follows:
Paragraph 51a (2), line 1, page 45, delete “together with a certificate setting forth the facts which made the procurement necessary,”.
Paragraph 52, line 15, page 45, delete “manual for” and insert “TM 14-1000,”.
Page 45, add paragraph 52.1. “Payment of costs incident to shipment of funds (see chap-
ter 1, TM 14-505).”
Remove pages 39 through 44 and substitute revised pages 39 through 44, and pages 44A, 44B, and 44C herewith.
[AG 300.7 ( 6 Sep 44).]
By order of the Secretary of War :
G. C. MARSHALL, Chief of Staff.
Official :
J. A. ULIO, Major General, The Adjutant General.
Distribution :
As prescribed in paragraph 9a, FM 21-6; D (2) ; B (2); C 14 (5); T of Opns (10) ; Base C (10).
For explanation of symbols, see FM 21-6.
AGO310A 610301'—44
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for the excess hours’ work does not constitute a wage rate change, even though resulting in increased labor costs of mining, within the meaning of a contract for the purchase of coal providing for a change in the contract price if the wage scales of mine employees be changed during the term of the contract. (22 Comp. Gen. 1013.)
c. Involving decreased cost. In the event of a decrease in cost of production, the procedure will be as follows:
(1) When there is a performance bond covering the contract, the disbursing officer will, if he can satisfy himself as to the amount due in view of the decreased cost of production, make payment thereof, taking advantage of any discounts offered.
(2) When no performance bond has been furnished, the disbursing officer will, in every case of decreased cost of production, make payment of 90 percent only of the amount determined by him to be due, taking advantage of discounts offered, and retaining 10 percent for settlement as a claim. (
(3) When the disbursing officer finds it necessary, under (1) or (2) above, to retain the whole or any part of the amount claimed by the contractor, he will prepare a voucher covering the amount withheld and forward the same, accompanied by the evidence set forth in paragraph 33 to the Fiscal Director for transmission to the General Accounting Office for settlement as a claim.
(4) Upon receipt of the claim, the Fiscal Director will refer the file to The Quartermaster General for action similar to that set forth in a (2) above.
(5) The Fiscal Director, upon receipt of the information from The Quartermaster General, will, after taking any steps which may be necessary to complete the file, transmit the claim to the General Accounting Office for settlement.
35. Payments made under special provisions in coal contracts.
a. General. Where contracts provide for the deletion of paragraph 3, Standard Form No. 43 (Standard Governmnet Purchase Conditions (Coal)) (see par. 32) and the sub
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stitution of a mathematical percentage formula for determination of adjustments in contract prices because of changes in wage scales under Circular Letter No. 166, Treasury Department, Procurement Division, dated 22 May 1936, as amended, claims of contractors thereunder are required to be submitted to the contracting officer. Such claims will be supported by authenticated copies of wage scales in effect on the date of the opening of bids and the new wage scales, and an affidavit showing whether any such changes other than those involved in the claim were effected between the opening of the bids and the dates of coal deliveries, in addition to the name of the mine from which each carload, identified by car initials, number, date of shipment and weight, was produced. The computation will be in accordance with the contract formula. (16 Comp. Gen. 805.)
Z>. Action by Disbursing Officer. Where under such contracts, an administrative determination based upon findings of fact has been made of the new contract price by the contracting officer, payment may be made by the disbursing officer, if he can satisfy himself as to the correct amount due. (Supplement No. 1, Circular Letter No. 166, Procurement Division, Treasury Department, 5 March 1937.)
c. Application for Advance Decision. Should there be, in particular cases, circumstances, rendering it necessary or advisable to apply for a decision of the Comptroller General of the United States as to a payment to be made under the provisions of a and b above, such application may be made in the manner set forth in chapter 3, TM 14-500.
36. Receiving reports.
a. How executed. (1) Receiving reports are to be executed as provided for in AR 35-6560 within 3 days after the date of delivery and acceptance at destination without further notation regarding sampling or nonsampling of the quantity of coal, coke, or briquettes, unless the contract under which such quantities have been purchased specifically states that penalty deduction will be based upon results of analysis of samples thereof.
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(2) Receiving reports for deliveries which are sampled for purposes of penalty deductions only will contain the following notation:
“The quantity of coal covered by this receiving report has been sampled and 10 percent of the invoice is to be withheld pending the receipt of report of analysis.”
(3) Receiving reports will be prepared and distributed to the purchasing depot in the manner prescribed by that office. Additional copies
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will be prepared and distributed as may be required by the chiefs of technical services.
&. Vouchers Covering Payments of Amounts Previously Withheld. When payment is made of amounts previously withheld in accordance with a (2) above, vouchers covering such payments should bear reference (voucher number, name of disbursing officer, etc.) to the voucher (s) on which the original 90 percent payment was made, and should be supported by evidence that the outcome of the analysis justifies such payment.
SECTION IV PAYMENT OF TRANSPORTATION ACCOUNTS
37. By whom paid.
a. Bills of Lading and Transportation Requests. (1) Within continental limits of United States. All transportation accounts pertaining to War Department bills of lading and transportation requests issued for service to and from and within the continental limits of the United States and Alaska (except those payable from appropriations for river and harbor work) will be paid by the Finance Officer, U. S. Army, Washington 25, D. C. Payment will be made on the original Government bill of lading (Standard Form 1103) or, if lost, on certificate in lieu of lost bill of lading (Standard Form No. 1108) attached to the invoice or bill. Payment will never be made on memorandum copies or shipping orders. After payment has been made, the bill of lading will be attached to the original voucher and become a part thereof.
(2) Outside continental limits of United States. Transportation accounts pertaining to War Department bills of lading and transportation requests issued for service outside the continental limits of the United States will be paid by the disbursing officer in the department or area concerned.
b. Goods Accepted After Rejection. (1) Chargeable to contractor. When goods have been rejected at destination by reason of the goods not being in accordance with the terms of the contract or purchase order, and are subse
quently accepted by the Government under a reduced price or other adjustment, they may be accepted only under the terms of new or amended contract entered into by and between the contracting officer and the contractor. The payment to the contractor in this latter case would depend upon the terms of that contract and, in arriving at the price to be paid for the goods, consideration will be given to whatever charges may have been incurred or may have accrued at destination because of the prior rejection of the goods. While the new contract may provide for a total consideration without mentioning these charges specifically, it will refer to them in order to obviate any misunderstanding as to whether or not they are included in the consideration for the new agreement. In these cases all bills covering such charges will be certified by the destination transportation officer to show that payment will be made by the Government and adjustment thereof will be made by the contracting officer in entering into the new contract. The destination transportation officer will furnish to the contracting officer, with copies to the disbursing officers concerned, a statement showing the character and amounts of such bills, together with the names of the disbursing officers by whom the bills will be settled. When adjustment has been made, the contracting officer will advise the disbursing officers concerned in order that they may take action toward crediting the appropriations from which payments are made.
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(2) Chargeable to the Government. If, through error on the part of the Government, goods are rejected at destination and are subsequently accepted, they can be accepted under the original contract only, in which case the Government becomes t liable for all charges. (AR 55-150.)
c. Claims for Shortages or Damages. Claims against carriers for shortages in or damages to shipments of Government property will be made by the Finance Officer, U. S. Army, Washington 25, D. C., or other disbursing officers designated to settle such transportation accounts, as the case may be. (AR 35-6120.)
d. Settlement of Claims of Vendors for Prepaid Transportation Costs. The Finance Officer, U. S. Army, Washington 25, D. C., is designated as the paying officer for transportation accounts only in those cases where shipment moves on Government bill of lading, or there is a conversion to Government bill of lading prior to payment and a properly certified bill supported by such document is submitted by a carrier. It is not the function of the Finance Officer, U. S. Army, to make reimbursement, either in the full amount, or in part, of a claim arising out of prepayment of transportation costs by a commercial concern under a procurement instrument which provides directly or indirectly for shipment at the expense of the United States. Such reimbursement may be made by the disbursing officer designated to make payment under the procurement instrument in question to the extent of the constructive transportation cost for shipment on Government bill of lading, which cost may be ascertained from the Finance Officer, U. S. Army. In doubtful cases, such claims may be prepared for transmission to the General Accounting Office and submitted to the Fiscal Director, Army Service Forces, Attention: Receipts and Disbursements Division, Temporary Building T-7, Gravelly Point, Washington 25, D. C., for consideration. In no event will the disbursing officer forward, or instruct a vendor to forward, such a claim to the Finance Officer, U. S. Army, Washington 25, D. C., for settlement.
TM 14-504
37-38
e. For River and Harbor Work. Accounts covering transportation payable from appropriations for river and harbor work will be paid by district officers of the Engineer Department specially designated to settle the accounts for the specific project.
f. Toll and Ferriage Charges. Payment for toll and ferriage charges will be made by the finance officer designated to settle accounts for the headquarters of the service command authorizing the travel (when the finance officer is not known, forward account to the commanding general of the service command, Attention: Fiscal Director), on a certificate of the officer or person in charge of the party, prepared in accordance with the provisions of AR 55-120* Payment may be made at the authorized or usual rates, unless more favorable terms can be obtained.
38. Payment for shipment of authorized baggage of military and civilian personnel by commercial van carrier.
a. General. Whenever transportation and other types of services of motor van carriers are to be used for shipments of personal property of military and civilian personnel involving expense to the Government, the services will be obtained generally by means of contracts entered into as provided in Procurement Regulations and other pertinent regulations and instructions. The disbursing officer best situated to make prompt and expeditious payment should be designated to make payment under such contracts. (AR 55-105.)
b. Regulations Governing Shipment. Regulations governing the shipment of authorized baggage of military and civilian personnel on change of station are contained in AR 55-160. In making payment for the costs of such shipments, reference should be made to those regulations.
c. Conditions. AR 55-160 imposes, among others, the following conditions with respect to shipments of authorized baggage:
(1) Weight allowances. Maximum weight allowances are prescribed according to grade of the owner with the provision that baggage
AGO 810A
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TM 14-504
38-39
in excess of the weight allowance may be shipped under the same bill of lading or contract provided that the owner will bear any excess cost occasioned thereby.
(2) Shipment by commercial van. Shipment by commercial van carrier is an optional service which can be furnished, when practicable, on specific request of the owner in writing. The owner must agree to pay any excess of cost of shipment by commercial van carrier over cost of shipment by means cheapest to the Government.
(3) Special services. In some instances special service, specific routing, specific loading, or any other service which involves additional expense may be obtained provided the owner bears any additional expense occasioned thereby.
d. Method of Payment of Excess. The finance officer who settles the account will determine, in accordance with AR 55-160, any excess costs to be collected and notify the owner who, upon receipt of such notification, will promptly remit the amount so determined. If, after making remittance as required, the owner for any reason considers the amount remitted as excessive, it is his privilege to file a claim with the General Accounting Office, Washington 25, D. C., for refund of such amount as he may consider to be due him.
e. Additional Evidence Required in Support of Vouchers for Commercial Van Shipments. (1) W. D. T. C. (Q. M. C.) Form No. 219 (Certificate of Personal Property Shipped). See AR 55-160.
(2) Travel orders.
(3) Computations furnished by the transportation officer, showing amount of excess costs, or, if no excess costs exist, computations to indicate that fact.
38.1 Reimbursement when shipped at personal expense not ordinarily authorized. Reimbursement to persons who have had their authorized baggage shipped at their personal expense is not ordinarily authorized unless an emergency or other good and sufficient reason existed for failure to have the transportation officer ship the household goods, in which case the Chief of Transportation may ratify the shipment and direct reimbursement of freight charges to such persons, not to exceed the cost of transportation
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of authorized allowance had shipment been made by the transportation officer, provided that where the temporary change of station allowance or part thereof of authorized baggage was shipped by railway or air express at the personal expense of such persons without prior authority of the Chief of Transportation, he may direct reimbursement of express charges to such persons in an amount not exceeding that which would have been authorized had shipment been made by rhe transportation officer, if, in his judgment, the necessities of the case required such method of shipment. In such cases claims for reimbursement will be submitted through military channels, through the Chief of Transportation to the Finance Officer, U. S. Army, Washington 25, D. C., supported by copies of travel orders, in duplicate, original “paid” receipts for amounts expended, and other pertinent and necessary supporting papers. (AR 55-160.)
39. Payment for packing, crating, and uncrating of authorized baggage in connection with shipment.
a. Regulations Governing Packing, Crating, and Uncrating of Authorizd Baggage. Regulations governing the packing, crating, and uncrating of authorized baggage at Government expense in connection with shipment are contained in AR 55-160. Reference should be made to those regulations in making payment for such services.
b. Conditions. AR 55-160 imposes—among others—the following conditions with respect to packing, etc., of authorized baggage:
(1) Weight allowance. Authorizes packing, crating, and uncrating at Government expense of baggage authorized to be shipped at Government expense on change of station. Baggage in excess of the maximum weight allowance may be included provided the owner bears any additional expense occasioned thereby. (See 38c (1).)
(2) Commercial contracts. Where any existing facilities under the jurisdiction of the commanding general of the service command are available and are adequate to perform the required services, such facilities will be utilized; otherwise commercial contracts will be used.
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c. Collection of Excess Costs. In case a charge is to be made against the owner by reason of excess weight, a statement of account will be furnished the owner of the property prior to his departure from the post by the quartermaster or other officer in charge of furnishing the packing and crating services. If for any reason this cannot be done, such statement of account will be mailed to the owner within 10 days after completion of work. Payment must be made to the officer rendering the account not later than the 10th of the succeeding month unless the account is protested. If protest is made, it will be submitted to the commanding officer of the station from which the statement of account was received within 10 days from the date of receipt of such statement.
d. Additional Evidence Required in Support of Vouchers for Packing, Crating, and Uncrating Services. (1) Travel orders.
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39-41
(2) Certificate to the effect that the person named in the order is owner of the property actually packed.
(3) Statement showing weight of property packed separately:
(«) Property other than professional books and papers.
(Z>) Professional books and papers.
(4) Statement showing authorized allowance as prescribed in AR 55-160.
(5) When the maximum weight allowance has been exceeded, evidence will be furnished by the quartermaster (or other officer handling such services) showing that the excess cost has been collected and the disposition which has been made of such collection, or a statement as to the steps which have been taken to offset the weight overage. (AR 55-160.)
SECTION V PAYMENT OF RATION AND SAVINGS ACCOUNT
40. For organizations on the garrison ration system.
a. General. At the end of the month or when the account is closed under the provisions of AR 30-2210, the sales officer will prepare a ration and savings account on War Department Form No. 373 and three memorandum copies on War Department Form No. 373a, showing for each organization, the period covered, number of rations due, amount of credit due, value of stores purchased, and the balance due the organization or the United States as the case may be. (AR 30-2210.)
&. Certification and Approval. The original only of the account will be signed by the sales officer and approved by the commanding officer. The certificate of availability of funds as prescribed for contracts, etc., in chapter 1, will be stated thereon in addition to the certificate already appearing on the W. D. Form No. 373.
c. Disposition. The original and two copies will be forwarded to the disbursing officer, who will pay the amount due each organization and forward one copy to the service command fiscal
director, certified as to payment. The fourth copy will be retained by the sales officer. (AR 35-6660.)
^..Computation of Value of Garrison Ration Not To Be Shown. Computation of the value of the garrison ration need not be shown on reverse of W. D. Form 373. The value of the garrison ration for each station will be announced monthly by The Quartermaster General, through quartermaster regional depots, and the certificate of the quartermaster as approved by the commanding officer qn face of the form may be accepted as guarantee of correctness of cost of the ration as shown in appropriate column. (AR 30-2210.)
41. Patients in hospital.
a. Rate of Commutation. (1) 'Within United States. At all installations within the continental limits of the United States, the ration of patients will be commuted at a fixed rate (stated in dollars or cents) established from time to time by the War Department.
(2) Outside United States. At all installations outside the continental limits of the
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United States, the ration of patients will be commuted as follows:
(«) For tuberculous patients, at the actual cost of the ration plus 90 percent.
(Z>) In all other cases, at the actual cost of the ration plus 50 percent.
(c) The term ration, as used above, refers to the “garrison ration” unless otherwise directed by proper authority in time of war. (AR 40-590; Cir. No. 218, W. D., 1944, as amended by section VI, Circular No. 368, War Department, 1944, and AR 40-590.)
1). Vouchers. Vouchers covering the commutation referred to above will be prepared on War Department Form No. 351 (Voucher for Commutation of Rations in Hospital) by the custodian of the fund of the Medical Department unit concerned, and after approval by the commanding officer of the hospital will be submitted to the quartermaster.
After completing his records, the quartermaster will forward the vouchers to the dis
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bursing officer for payment direct to the custodian of the fund of the Medical Department unit concerned. (AR 40-590.)
c. Evidence as to Value of Garrison Ration. The space on the W. D. Form 351 providing for a reference to a voucher on which the value of the garrison ration is computed may be disregarded. (See par. 40
Figure 1
14 A
AGO 369A
TM 14-504
PROCEDURE FOR PAYMENT OF
(WHERE VOUCHER PREPARED
■f y.- ■ FORM ■■ VOUCHERING DIVISION
COMMERCIAL ACCOUNTS BRANCH
FILE AND EXAMINATION SECTION BRANCH CHIEF
CONTRACT
BILLS REGISTER WD AGO FORM NO. 14-1 (Old WD FD Form No. 1).
PUBLIC VOUCHER FOR PURCHASES AND SERVICES OTHER THAN PERSONAL STANDARD FORM NO. 1034
INVOICE
RECEIVING REPORT
WD AGO FORM NO. 10-113 (Old WD OMC Form No. 431) or
SUBSISTENCE-RECEIVING
REPORT
WD AGO FORM NO. 10-91 (Old WD QMC Form No. 393)
DELIVERY ORDER
WD AGO FORM NO. 10-52 (Old WD QMC Form No. 307)
REMITTANCE ADVICE
Receives copy of contract, analyzes and notes salient features.
Receives prepared voucher and supporting documents.
Segregates vouchers involving discounts for expeditious handling.
Examines documents for correctness.
Verifies signature and certification.
UNITED STATES
TREASURY CHECK
7. Prepares remittance advice identifying payment when necessary; otherwise writes information on check.
8. Assembles and forwards vouchers.
9. Makes final audit including a check against contract.
10. Records invoice data for Report of Operations.
16. Returns to branch file if contract has not been completed; otherwise sends to general file. '
17. Posts Bills Register.
Figure 2
15
AGO 3G9A
STANDARD FORM NO. 1034
OUTSIDE DISBURSING OFFICE)
1 DEC 44 C4
PAYMENTS DIVISION '■Vi *■. ACCOUNTING DIVISION
CHECK-WRITING BRANCH
Processes in accordance with standard operating procedure
Forwards for auditing purposes
--------------------------1
To vendor
—F
11. Assigns voucher number from block of numbers obtained from Accounting Division.
12. Posts voucher number to voucher.
13. Prepares check.
14. Posts check number to voucher.
15. Obtains disbursing officer's signature on check.
NOTES
A. Other commercial vouchers including WD Form No. 383 (Purchase Order or Delivery Order and Voucher for Purchases and Services Other Than Personal) are processed in a similar manner to Standard Form No. 1034.
B. Check copies (WD FD Form Nos. 48a, 48) are prepared with U. S. Treasury check. Distribution shown on chart "Procedure for Preparation and Control of Checks" TM 14-500.
To appropriate fiscal officer
--------------------------->
Figure 2
ISA
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CHAPTER 4
PROMPT PAYMENT OF BILLS AND ACCOUNTS
13. General.
Disbursing officers will not pay an account until due, but payments will be made promptly of all accounts as they become due and payable. A vigorous follow-up will be maintained by disbursing officers to secure documents needed to compete payment of all commercial accounts. This action will consist of correspondence or other communication with the procuring or receiving agency involved, requesting the documents needed to support final payment. If, after proper follow-up has been made and sufficient time has elapsed for the required supporting documents to be submitted, the documents have not been received, a report of the matter will be made, through channels, to the commanding officer of the installation which has failed to provide the necessary supporting documents. This report will include a brief statement of facts, a list of the missing documents, the amount of cash discount involved, if any, and the steps that have been taken by the disbursing officer to secure the necessary supporting papers. When it becomes evident that payment of invoices will be delayed because of the necessity for advance decisions, advice of higher authority, correspondence with procuring officers, or other similar causes, the vendor will be notified by letter, which may be a form letter, advising him of the prospective' delay, the reason therefor, and the probable date of settlement. (AR 35-6200.)
Note. Payment of invoices covering perishable subsistence stores. Immediate action is to be taken by all disbursing officers to insure payment of invoices covering perishable subsistence stores within 48 hours after receipt. Disbursing officers will adopt vigorous and positive means to accomplish this purpose and any difficulty in meeting the 48-hour objective will be reported to the Office of the Fiscal Director through the service command.
14. Cash discounts.
a. No Consideration To Be Given Cash Discounts in Awarding Contracts. Offers of prompt payment or cash discounts will not be considered in the award of contracts or purchase orders, but, if such an offer is made, the Government reserves the right to take advantage of the same according to its terms in making payment. (PR 3; PR 1180.)
A Payment To Be Made Within Discount Period Where Possible. In all cases of bills for the payment of which on or before a certain date or within a certain time a cash discount is offered, advantage will be taken of the offer of such discount and payment made on or prior to the date on which the discount feature expires, if possible to do so. To accelerate the processing of the document involved, purchasing and contracting officers are required (by paragraph 1180.4, Procurement Regulation No. 11) to enter on each purchasing instrument involving cash discount the words Discount-Expedite. (PR 3; PR 11; AR 35-6200.)
c. Character of Offer of Discount. In general, the deduction of discounts under agreements by the Government to purchase supplies is authorized only when the vendor has made an express offer of such discounts, and a mere statement as to discounts, shown on the printed commercial bill of the vendor submitted for payment, is not generally to be regarded as such an express offer. (23 Comp. Dec. 141; 2 Comp. Gen. 83; 5 id. 739.)
Note. The decisions cited above pertain to formal contracts only. In cases of informal purchases, a statement as to cash discount appearing on a dealer’s invoice should be considered an offer of cash discount of which advantage should be taken, and any protest by a dealer against deduction of such discount, on the .ground that his bid or the procuring instrument was silent as to cash discount, or that the procuring instrument showed the price to be net, should be considered as a claim to be submitted to the General Accounting Office for direct settlement. (AR 35-6200.)
16
AGO 869A
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TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes) WAR DEPARTMENT
No. 5 f Washington 25, D. C., 1 January 1945
TM 14-504, 1 December 1943, is changed as follows:
Remove pages 19 through 31 and substitute revised pages 19 through 31, 31A, 31B 31C 31D and 31E.
[AG 300.7 (30 Dec 44)]
By order of the Secretary of War:
Official:
J. A. ULIO
Major General
The Adjutant General
G. C. MARSHALL
Chiej oj Staff
Distribution:
AAF (10); AGF (10); ASF (2); T of Opns (10); Dept (10); Base Comds (10); AAF Comds (2); Arm & Sv Bd (2); S Div ASF (1); Tech Sv (2); SvC (10); PC&S (1); Gen & Sp SvSch (10); USMA (2); ROTC (1); ROTC Lib (1); A (10); CHQ (10); D (2); B (2); C 14 (5); AF (2).
For explanation of symbols, see FM 21-6.
. i
.A'/
AGO 171A 622601*—46-----1
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ment of troops must be obtained from the train and detachment commander at the time the supplies are furnished.
g. Canadian Firms. (1) Payments to carriers will be made by the Finance Officer, United States Army, Washington 25, D. C., for obligations incurred by the issuance of government transportation requests or bills of lading.
(2) Purchasing and contracting officers in the United States who make purchases in Canada will designate on the procuring instruments the usual local disbursing officers in the United States to make payment of such obligations.
(3) If the purchasing and contracting officer
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prepares and certifies the voucher, he will forward the completed voucher, with supporting papers, to the local disbursing officer. Upon receipt of such completed voucher, or (if the disbursing officer is to prepare the voucher) upon receipt of the necessary supporting papers, the local disbursing officer will take necessary action to make settlement of the account, where payment is to be made in United States funds. However, where payment is to be made in Canadian funds, the local disbursing officer will forward the completed voucher, with supporting papers, by franked envelope, to the Finance Officer, U. S. Army, Edmonton, Alberta, Canada, for payment.
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CHAPTER 5
CONDITIONS AFFECTING PAYMENTS
18 . Restrictions on assignments or transfers.
a. Assignments of Claims.—All transfers and assignments made of any claim upon the United States, or any part or share thereof, or interest therein, whether absolute or conditional, and whatever may be the consideration therefor, and all powers of attorney, orders, or other authorities for receiving payment of any such claim, or of any part or share thereof, shall be absolutely null and void, unless they are freely made and executed in the presence of at least two attesting witnesses, after the allowance of such a claim, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. Such transfers, assignments, and powers of attorney, must recite the warrant for payment, and must be acknowledged by the person making them before an officer having authority to take acknowledgements of deeds, and shall be certified by the officer; and it must appear by the certificate that the officer, at the time of the acknowledgement, read and fully explained the transfer, assignment, or warrant of attorney to the person acknowledging the same (R. S. 3477; 31 U. S. C. 203; M. L. 1939, Sup. II, sec. 701).
b. Transfers of Contracts. No contract or order, or any interest therein, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall cause the annulment of the contract or order transferred, so far as the United States are concerned. All rights of action, however, for any breach of such contract by the contracting parties, are reserved to the United States (R. S. 3737; 41 U. S: C. 15; M. L. 1939, Sup. II, sec. 739).
c. Exceptions. (1) Transfer of entire business. Where the entire business of a contractor is sold, the transfer is not such an assignment as is prohibited by sections 3477 and 3737, Revised Statutes, and payment to the transferee is au
thorized upon compliance with contract terms and the furnishing of a waiver from the original contractor (9 Comp. Gen. 72).
(2 ) Merger. The merger of a corporation or a change in the corporate name does not operate to annul existing contracts between such corporation and the Government and is not of itself a change in the contractor’s responsibility (4 Comp. Gen. 184).
(3 ) Assignment to a bank, trust company, or other financing institution. The provisions of a and b above shall not apply in any case in which the moneys due or to become due from the United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more, are assigned to a bank, trust company, or other financing institution, including any Federal lending agency: Provided,
(«) That in the case of any contract entered into prior to the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned without the consent of the head of the department or agency concerned;
(6 ) That in the case of any contract entered into after the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned if it arises under a contract which forbids such assignment;
() Deductions. Whenever, under a contract containing a liquidated damages clause, the contractor fails to perform within the stipulated period and the time is not extended or the liquidated damages waived, the disbursing officer will deduct the maximum amount of liquidated damages for which the contractor may be liable and claim credit for the net amount only, crediting the amount so deducted to the open allotment and project account No. 501-970 P 970-13—Reserve for Settlement of Claims (see (c) below), subject to a determination whether all or part of the amount of liquidated damages withheld is due to the contractor and, if appropriate, the taking of action set forth in (/) below. Except as provided in (/) below, amounts withheld on account of liquidated damages will not again become available for obligation or for payment by disbursing officers and any protests made by the contractor
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against the deduction of liquidated damages will be forwarded, together with a statement of all payments made, citations to all vouchers, and a detailed statement from the contracting officer, through Army Service Forces, Office of the Fiscal Director, The Pentagon, Washington 25, D. C., to the General Accounting Office (16 Comp. Gen. 374; PR 308-E; AR 35-6040).
(c) Proceduresfor liquidateddamages. The following requirements will be observed in the preparation and processing of all disbursement vouchers which require deductions for liquidated damages:
1. The gross amount of the voucher (before deduction of liquidated damages) will be shown in the space provided for the total.
2. The deduction for liquidated damages will be identified on the voucher as such and will be entered as a deduction in determining the net amount to be certified, approved, and paid.
Appropriation limitation etc. 212/50502
Appropriation title
507-2526 P 131-08 S 12-036) 501-970 P 970-13 S 99-99y)
3. The accounting classification block will be completed to indicate— (a) A charge of the gross amount of the voucher to the appropriation, allotment, project account, and object classification to which the underlying obligating instrument pertains.
(b) A credit of the deduction for liquidated damages to the open allotment and project account No. 501-970 P 970-13—Reserve for Settlement of Claims under the same appropriation.
II. Following is an example of the accounting classification requirements under 3 above based on a hypothetical voucher in the gross amount of $8,375 from which $250 is deducted for liquidated damages, resulting in a net payment of $8,125 to the contractor:
Appropriation amount
$8, 375. 00
250. 00 Cr. $8, 125. 00
The disbursing officer will make payment only in the net amount of the voucher.
(d) Requirements in accounting for vouchers. The following requirements will be observed in accounting for such vouchers in the underlying allotment and project accounts:
1. The gross amount of the voucher ($8,375 in the example cited) will be charged as an expenditure to the designated allotment and project accounts by the agency which maintains the underlying allotment account and by the Fiscal Director, Army Service Forces. The agency by which the underlying allotment account is maintained also will make any required adjustment in the previously recorded obligation on the basis of the gross amount of the voucher and not the net amount.
& The Fiscal Director, Army Service Forces, also will record under the open allotment and project account No. 501-970 P 970-13 of the applicable appropriation the credit resulting from deduction for liquidated damages ($250 in the example cited). This will have the effect of reserving a sufficient amount of the applicable appropriation in the accounts maintained by the Fiscal Director, Army Service Forces, to cover the gross amount of liquidated damages withheld.
3. The agency by which the underlying allotment account is maintained will disregard the credit resulting from deduction for liquidated
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damages appearing on the paid voucher copy returned by the disbursing officer and will make no accounting entries in respect to such credit or in respect to account No. 501-970 P 970-13.
<(e) Submission of claims.
1. Except in those cases where appeals are made to higher authority, under specific contractual provisions, against determinations of fact by contracting officers, the claims or protests of contractors and vendors arising from the deduction of amounts for liquidated damages will be forwarded through the Office of the Fiscal Director, Army Service Forces, to the General Accounting Office. The claim or protest will be accompanied by a statement of all payments made, citations to all vouchers, and a detailed statement from the contracting officer, and by citations to the symbols and titles of the appropriations against which funds are reserved for settlement.
2. Upon receipt of evidence from the General Accounting Office that a claim has been settled direct or upon payment of a claim by a disbursing officer pursuant to proper authorization by the General Accounting Office, the Fiscal Director, Army Service Forces, will charge the amount of the settlement or payment to account No. 501-970 P 970-13—Reserve for Settlement of Claims under the applicable appropriation.
(/) Payments of amounts erroneously withheld, or otherwise due contractors. In the event that liquidated damages are withheld and credited to account No. 501-970 P 970-13 and subsequently it is determined that such amount (s) were withheld erroneously or are otherwise found to be due to the contractor, by reason of changes in the contract terms or by reason of any other procedures approved by
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appropriate authority providing for repayments of amounts so withheld, the amounts so determined to be payable may be certified on a payment voucher and charged to account No. 501-970 P 970-13 under the applicable appropriation. Vouchers paid under the provisions of this paragraph will include a reference to the voucher on which the deduction was made and will be accounted for in the same manner as other vouchers paid from open allotment accounts.
( •. id -5od/CcU- “
TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes! WAR DEPARTMENT
^°- 6 J Washington 25, D. C., 10 March 1945
TAI 14-504,1 December 1943, is changed as follows:
Remove pages 17 through 20 and substitute revised pages 17, 18, and 19, and page 20.
[AG 300.7 (21 Mar 5)]
By order of the Secretary of War:
Official :
J. A. ULIO
Major General
The Adjutant General
G. C. MARSHALL Chief of Staff
Distribution :
AAF (10) ; AGF (10) ; ASF (2) ; T of Opus (10) ; Dep (10); Base Comd (10) ; AAF Comd (2) ; Arm & Sv Bd (2) ; S Div ASF (1); Tech Sv (2) ; Sv C (10); PC & S (1); Gen & Sp Sv Sch (10) ; USMA (2); ROTC (1); ROTC Lib (1); A (10); CHQ (10); D (2) ; B (2); C 14 (5); AF (2).
Refer to FM 21-6 for explanation of distribution formula.
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failure to take advantage of discounts in those cases where payment is made after the expiration of the discount period. (AR 35-6200.)
Note. The General Accounting Office has no alternative but to disallow credit in the accounts of the disbursing officer for the amount of offered discounts not deducted where it is determined that they were deductible at the time of payment. MS. Comp. Gen., B-31627, 23 June 1943.)
15. Discount period.
a. Definition. In the absence of specific stipulations to the contrary, the discount period is generally to be considered to begin on the date of delivery of the supplies (to carrier when final inspection and acceptance are at point of origin, or from date of delivery at destination or port of embarkation when final inspection and acceptance are at these points), or the date correct bill or voucher properly certified by the contractor is received if the latter date is later than the date of delivery. (14 Comp. Gen. 721; 9 id 161.)
5. Receipt by Proper Officer. Date of receipt of invoice is held to be the day on which the invoice is received in the office of the Government specified in the contract. Should the contractor fail to forward invoices to the proper office, any delay in receipt bv the proper office is the direct result of the contractor’s error in submission. (MS. Comp. Gen. A-53305, 20 February 1934.)
c. Responsibility for Prompt Rendering of Invoices. The responsibility for promptly furnishing a correct invoice, or bill, for deliveries under a contract is that of the contractor and the Government is entitled to discount offered for prompt payment, if payment is made within the discount period, after receipt of a correct invoice. Date of receipt of invoice will be shown thereon.
d. Date of Payment. Date of payment for discount purposes must be considered as the date of mailing of the check. Care should be taken to see that checks are mailed the same day they are dated where there is a question of discount involved and that the date of mailing of the checks in such cases be made a matter of record. (MS. Comp. Gen. A-39516, 30 November 1931; MS. Comp. Gen. B-30491, 21 January 1943.)
1 March 1945 4 March 1945 2%, 10 days
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TM 14-504
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e. Last Day of Discount Period Falling on Sunday. Where the last day of the discount period falls on Sunday, the following business day is considered as being within the discount period. (20 Comp. Gen. 310.)
f. Computation of Final Date for Payment. As set forth above, the discount period is established by the date of receipt of the supplies or date of receipt of a proper invoice, whichever is later, and the final date for payment. In determining the actual final date on which payment must be made, to come within the discount period, the date beginning the period is the day following the actual day of receipt of supplies or day of receipt of invoice, whichever is later, for example—
Goods delivered________
Invoice received_______
Terms__________________
Final date payment must be made to come within discount period______
(20 Comp. Gen. 310.)
16. Invoice discrepancies.
a. Failure of Vendor to Submit Invoices. When invoices have not been received, disbursing officers and procuring officers are authorized to request vendors or contractors to submit invoices for supplies or services, provided the supplies and services actually have been received or rendered in accordance with the terms of the purchase order or contract. Where a vendor fails to present a claim and the appropriation involved becomes lapsed, the purchase order or other procuring instrument, receiving report, and any other papers connected with the claim will be forwarded to the General Accounting Office, Records Division, through the Office of the Fiscal Director, for consideration in connection with any claim which may be filed by the claimant.
b. Errors in Bills in Favor of the Government. In cases where there is an error in calculation, apparent on the face of the invoice itself, or where there are factual discrepancies between the invoice and the contract, purchase order, or receiving report, as to price, quantity, etc., and such error operates in favor of the
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Government, the invoice submitted will be approved by procuring officers or disbursing officers and payment will be made by disbursing officers without adjustment. Disbursing officers and contracting officers will, however, advise the vendor or contractor of such error or discrepancy and state that no further payment can be made until a properly executed invoice has been submitted for such additional amount, if any, as may be due.
c. Errors in Bills in Favor of the Vendor. Where the error is in favor of the vendor, in ordinary cases invoices will be returned by contracting officers or disbursing officers for correction. However, in the case of obvious errors in extensions or footings where the amount is less than $1.00, procuring officers or disbursing officers will make the necessary reduction on the face of the invoice or voucher, and payment will be made of the reduced amount. Notification of vendors will be made by disbursing officers of any changes made.
d. Supplies in Excess of Amounts Called for by Purchase Order. Where a vendor or contractor has delivered goods or supplies in excess of the amounts called for by the purchase order or contract, disbursing officers and contracting officers will advise the vendor or contractor of such excess deliveries.
e. Reduced Prices. The disbursing officers or procuring officers will accept invoices intentionally submitted for less than the contract prices, as in those cases where the vendor reduces unit prices for deliveries in large quantities.
17. Special cases.
a. Discount—Computation Where Excise Tax is Involved. Federal excise taxes imposed upon items which are subject to cash discount will be included in the amount on which discount is computed, except in those cases
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where the contract or other instrument governing the taking of discount specifically provides otherwise and the tax is itemized separately on the invoice.
b. Discount Taken After Deduction of Export Differential. Where a contract for supplies provides that, as consideration for furnishing the articles involved, the contractor should be paid the total sum specified therein, subject to a discount for prompt payment, but the contract price itself is subject to reduction with respect to such of the articles as are consigned for export shipment, the discount with respect to articles so consigned may be computed on the reduced contract price, that is, after deduction of the export differential, rather than on the full contract price, even though there is no provision to that effect in the contract. (22 Comp. Gen. 846.)
c. Discount, Water Bills. Where a contract for furnishing water provided for payment therefor at certain specified meter rates, with discount for prompt payment, the contractor is entitled to the full specified meter rates upon failure of the Government to make payment within the time specified for the allowance of discount. (12 Comp. Dec. 274; 16 id. 151.)
d. Postal Charges. Where a procuring instrument provides for payment by the Government of transportation charges and the vendor is directed by proper authority, either in the procuring instrument or by separate instructions, to ship via parcel post, postal charges are reimbursable and will be included in the vendor’s invoice as a separate item. The vendor’s certificate on the invoice will be accepted as sufficient evidence of the correctness of such charges and it will not be required that any additional certificate or other supporting evidence, such as verification by weight or postal zone, be furnished.
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e. Withholding Final Payment Due to Notices of Exceptions. The fact that Notices of Exceptions are outstanding which can be cleared by furnishing certain information or supporting papers or that the General Accounting Office has not audited prior payments is no reason for withholding subsequent or final payments, and such action should in no instance be taken when it is apparent that the Notices of Exceptions can be cleared or there are other current contracts in existence with the contractor involved from which recoupment can be made in case the Notices of Exceptions finally result in disallowances by the General Accounting Office.
/. Waiver of Contractual Claims. Certain cost-plus-a-fixed-fee contracts issued in connection with construction projects require as a condition to final payment that the contractor execute a release of all claims against the Government arising under the contract other than such claims as are specifically excepted from the release in stated amounts set forth therein. Contracting officers, however, have been authorized to waive the contractual requirement that claims excepted from the operation of the release be in stated amounts where the claims involved are claims lor reimbursement under the contract of payments arising out of any employment by the contractor in connection with the contract work and based on the maximum hour and overtime provisions of the Fair Labor Standards Act. or are claims in connection with any proceedings for the enforcement thereof. Disbursing officers will accept such releases, when accepted by the contracting officer, as being in full compliance with the contract provisions, and will make final payment thereagainst when otherwise proper.
TM 14-504
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g. Subsistence Claims—Railroad Companies and Others. Claims received from railroad companies and others concerned covering incidental expenses of subsistence incurred by troops while en route, where reimbursement by train commanders is impossible because the organizations have departed for oversea destinations, will be forwarded to the Office of the Fiscal Director, Army Service Forces, Attention: Receipts and Disbursements Division, Washington 25, D. C.
17.1. Payment to Canadian firms.
a. Purchasing and contracting officers in the United States who make purchases in Canada will designate on the procuring instruments the usual local disbursing officers in the United States to make payment of such obligations.
&. When payment is to be made to a Canadian vendor in United States funds the purchasing and contracting officer preparing and certifying the voucher, will forward the completed voucher, with supporting papers, to the local disbursing officer. Upon receipt of such completed voucher, or (if the disbursing officer is to prepare the voucher) upon receipt of the necessary supporting papers, the local disbursing officer will take necessary action to make settlement of the account.
c. When payment is to be made to a Canadian vendor expressed in terms of Canadian dollars the local disbursing officer will forward the completed voucher, with supporting papers, by franked envelope, to the Finance Officer, U. S. Army, Edmonton, Alberta, Canada, for payment. All pertinent certifications on the vouchers and supporting documents should be accomplished and the voucher presented in such form that payment can be made without further correspondence.
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CHAPTER 5
CONDITIONS AFFECTING PAYMENTS
18. Restrictions on assignments or transfers.
a. Assignments of Claims. All transfers and assignments made of any claim upon the United States, or any part or share thereof, or interest therein, whether absolute or conditional, and whatever may be the consideration therefor, and all powers of attorney orders, or other authorities for receiving payment of any such claim, or of any part or share thereof, shall be absolutely null and void, unless they are freely made and executed in the presence of at least two attesting witnesses, after the allowance of such a claim, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. Such transfers, assignments, and powers of attorney, must recite the warrant for payment, and must be acknowledged by the person making them before an officer having authority to take acknowledgments of deeds, and shall be certified by the officer; and it must appear by the certificate that the officer, at the time of the acknowledgment, read and fully explained the transfer, assignment, or warrant of attorney to the person acknowledging the same (R. S. 3477; 31 U. S. C. 203; M. L. 1939, Sup. II, sec. 701).
b. Transfers of Contracts. No contract or order, or any interest therein, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall cause the annulment of the contract or order transferred, so far as the United States are concerned. All rights of action, however, for any breach of such contract by the contracting parties, are reserved to the United States (R. S. 3737; 41 U. S. C. 15; M. L. 1939, Sup. II, sec. 739).
c. Exceptions. (1) Transfer of entire business. Where the entire business of a contractor is sold, the transfer is not such an assignment as is prohibited by sections 3477 and 3737, Revised Statutes, and payment to the transferee is au
thorized upon compliance with contract terms and the furnishing of a waiver from the original contractor (9 Comp. Gen. 72).
(2) Merger. The merger of a corporation or a change in the corporate name does not operate to annul existing contracts between such corporation and the Government and is not of itself a change in the contractor’s responsibility (4 Comp. Gen. 184).
(3) Assignment to a bank, trust company, or other financing institution. The provisions of a and b above shall not apply in any case in which the moneys due or to become due from the United States or from any agency or department thereof, uno er a contract providing for payments aggregating $1,000 or more, are assigned to a bank, trust company, or other financing institution, including any Federal lending agency: Provided,
(a) That in the case of any contract entered into prior to the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned without the consent of the head of the department or agency concerned;
(5) That in the case of any contract entered into after the date of approval of the Assignment of Claims Act of 1940, no claim shall be assigned if it arises under a contract which forbids such assignment;
(c) That unless otherwise expressly permitted by such contract any such assignment shall cover all amounts payable under such contract and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in such financing;
(<7) That in the event of any such assignment the assignee thereof shall file written notice of the assignment together with a true copy of the instrument of assignment (see par. d} with—
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TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes I WAR DEPARTMENT
No. 7 | Washington 25, D. C., 25 April 1945
TAI 14-504, 1 December 1943, is changed as follows:
Remove pages 1 through 13C and substitute revised pages 1 through 131.
Renumber figures 1 and 2, pages 14, 14A, 15 and 15A, to figures 2 and 3. [AG 390.7 (18 Jun 45)]
By order oe the Secretary oe War:
Official, :
J. A. ULIO
Major General
The Adjutant General
G. C. MARSHALL
Chief of Staff
Distribution :
AAF (Budget# Fiscal) (10); AGF (Budget & Fiscal) (10); ASF (Control Div) (2); T of Opn (Fiscal Dir) (10) ; Dept (10) ; Base Comd (10) ; AAF Comd (2); Arm & Sv Bd (1); S Div ASF (Except Fiscal Dir) (1); Tech Sv (2); SvC (Fiscal Dir) (Cont) (10); AIDW (fiscal Dir) (10); PC&S (1); Gen & Sp Sv Sch (Except Finance) (10); USMA (2) ; ROTC (1); ROTC Lib (1); A (10); CHQ (10); D (2); B (2); C 14 (Finance Disbursing Sec) (5); AF (2).
Refer to FM 21-6 for explanation of distribution formula.
AGO 54A—July 657607’—45-----1
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TM 14-504
CHAPTER 1
FISCAL FEATURES
1. General. Regulations governing the functions of the various purchasing and contracting officers of the War Department are published in War Department Procurement Regulations. It is the duty of disbursing officers to make payment under all purchase orders and contracts entered into by purchasing and contracting officers pursuant to such regulations. As a prerequisite to payment the disbursing officer must be furnished with papers—or in certain instances, vouchers supported by such papers— which will serve as evidence that a legal disbursement of public funds has been made. Generally speaking these papers consist of—
a. Contracts or purchase orders accomplished and furnished in accordance with War Department Procurement Regulations.
b. Invoices from vendors.
c. Receiving reports accomplished and furnished by officers receiving the property in accordance with AR 35-6560. In making payments for supplies and nonpersonal services, reference should be made to the procurement regulations whenever necessary.
2. Responsibility of procuring and of fiscal officers with respect to allotment of funds.
a. Allotments Not To Be Exceeded. (1) Officers who are charged with making procurements will be held strictly responsible for assuring that, prior to the incurring of obligations, the fiscal officer maintaining the underlying allotment account which it is proposed to obligate, has certified that the equipment, supplies, and services being procured are properly chargeable to the allotment, appropriation and project account designated on the appropriate document and that the available balance of the allotment is sufficient to cover the cost of such equipment, supplies or services.
(2) In order to discharge this responsibility, officers charged with procurement will submit, prior to the incurring of obligations, an appropriate form to the fiscal officer maintaining the
underlying allotment account being charged, for the certification discussed in (1), above. The form thus submitted for certification will either be a Purchase Request and Commitment Form (WD AGO Form 14-115), used under the circumstances outlined for that form in TM 14-702 and TM 38-403, or, in other circumstances, a different purchase request form devised locally or a copy of the obligating document.
(3) Fiscal officers, in certifying pursuant to (1) above, will be held strictly responsible that obligations proposed on the basis of documents submitted for certification do not exceed the amounts authorized and remaining available, are properly chargeable to the allotment appropriation and project account shown on the document, and that the obligations do not include any purpose prohibited by the terms of the allotment or by existing regulations. This responsibility is in addition to his responsibility for approving the obligation for propriety, as outlined in TM 14-702.
(4) No obligating document will be released to a contractor without the above certification having been obtained. Each obligating document, when released to the contractor, will contain a certificate as to the sufficiency of the funds being charged. If, under the provisions of this paragraph, this certification on the obligating document is signed by other than a fiscal officer, such signature will be considered as having been based on the certification.of the appropriate fiscal officer on the related purchase request document discussed in (2), above.
b. Identification Reference. The identification number consists of—
(1) The official General Accounting Office and Treasury sumbol number of the applicable appropriation as published in the War Department Fiscal Code, TM 14-700. This information may be obtained from WD FD Form 402 (Procurement Allotment), WD FD Form 403 (Administrative Allotment), WD AGO Form
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14-106 (Suballotment), WD AGO Form 14-114 (Obligation Authority) or from a requisition containing a citation of funds, as the case may be.
(2) Allotment advice number, consisting of the code number of the operating agency as published in TM 14-700 followed by a dash and the serial or identifying number of the allotment. This information may be obtained from the appropriate form referred to in (1), above.
(3) The letter “P” followed by the project account number, a dash and the object classification number as published in TM 14-700.
(«) This information may be obtained from the appropriate form referred to in (1) above.
(&) The object classification number need not be shown on the allotment unless it is desired to limit expenditures for a specific purpose designated by such a number (for example, 01, personal services). The project account number should be shown, whenever possible, on the allotment. Where this is impracticable, as in the case of working fund allotments, the general purpose number 99 may be used. (See (c) below.)
(c) The purpose number 99 when used on allotments is defined as “general purpose,” meaning all purposes covered by the applicable appropriation as shown in TM 14-700, and TM 14-707 (Explanation of Appropriation and Project Accounts). The procuring agency which actually makes the procurement under an allotment which recites the general purpose number will not use the general purpose number in defining the purpose of the procurement, but will indicate on the procuring instrument the specific applicable project and object classification numbers.
(<7) Even though not shown in the allotment, the project number will, and the object classification number should, be shown on each obligating instrument. Both numbers will be shown on each voucher.
c. Contracts for Indefinite Quantities. (1) Contracts for indefinite quantities of supplies, deliveries to be made during a stipulated period in such quantities and at such times as required, need not contain a citation of the allot
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ment properly chargeable but will contain in lieu thereof a statement to the effect that the contract is for general utilization by all operating agencies and that all calls on contractors or orders for delivery for supplies thereunder issued either by the contracting service or by a service other than the contracting service will contain a certification of availability of funds, together with a citation of the proper allotment account to be charged in making payment.
(2) Whenever contracts of this character are entered into and it is known that two or more disbursing officers may be called upon to make payments thereunder, an authenticated copy of the contract will be furnished to each of the disbursing officers.
3. Contracts, etc., to show disbursing oCcer who is to make payment. Each procuring instrument (including contracts, leases, purchase orders, calls on contractors, delivery orders, etc.) issued will show the official designation and location of the disbursing officer who is to make payment, for example, Finance Officer, U. S. Army, Washington 25, D. C. The disbursing officer best situated to make prompt and expeditious payment should be designated as the paying officer; if there is any doubt as to the disbursing officer who should be designated, the fiscal director of the service command will be consulted.
4. Disbursing officer to be advised of completion of deliveries. Upon completion of deliveries or of services to be rendered under any instrument of procurement, the disbursing officer designated to pay the account will be promptly advised of such completion.
5. Responsibility of disbursing officers with respect to allotments of funds.
a. Use of Allotment Numbers. Disbursing officers of the War Department will not be furnished allotments except in cases where they are to be the obligating (fiscal) officers. They will recognize contracts, calls on contractors, delivery orders, purchase orders, b’ills of lading, transportation requests, and other procurement instruments which bear allotment numbers and a statement from the procuring officer
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that the allotment quoted has a sufficient balance to cover the amount of the vouchers, etc. (par. 2), as establishing the fact that sufficient funds of the appropriation or appropriations indicated by such allotment numbers have been set aside to meet the procurement. Disbursing officers of the War Department will not make payments on procurements unless allotment numbers are given on the supporting papers or vouchers, and will be careful to ascertain by reference to TM 14-700, and if necessary, to the
TM 14-504
current appropriation acts, that the purpose number or numbers cited on the procuring instrument or vouchers pertain to the appropriation properly chargeable.
1) . Definition. The term “disbursing officers of the War Department” as used in a above will be construed as including not only officers of the Finance Department but all other officers and agents of the War Department intrusted with funds of the War Department for disbursing purposes.
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CHAPTER 2
PUBLIC VOUCHERS FOR PURCHASES AND SERVICES OTHER THAN PERSONAL
6. Voucher forms.
a. Standard Form Required. Standard Form 1034 amended 15 August 1941 (Public Voucher for Purchases and Services Other Than Personal) is prescribed for use generally in vouchering all demands against the Government involving expenditures other than for personal services and kindred expenditures, such as allotments, allowances, pensions, refunds, etc., excepting those demands for which special forms of vouchers have been or may hereafter be approved by the Comptro ier General of the United States. Standard Form 1049 (Public Voucher for Refunds) will be used also for vouchering disbursements from special deposit funds. For other forms used in making payment for supplies and other nonpersonal services see chapter 6. (See AR 35-1040.)
b. Standard Form 1035. Standard Form 1035 is a first and follow sheet to be used with Standard Form 1034. This form will be used when the space for description of articles or services on Standard Form 1034 is not sufficient to contain the itemization of the vendor’s bill or bills, or other desired information. The total amount of all sheets will be summarized on the Standard Form 1034. Preparation and distribution will be the same as that prescribed in paragraph 1b (16 Comp. Gen. 1128).
7. Preparation of Standard Form 1034.
a. General. Vouchers (if for supplies or nonpersonal services) will show the vendor’s account number and/or the number and date of the contract or purchase order, date of delivery or rendition of services, description of the supplies or services, and/or the quantity and unit price of each article, unless the invoice showing these data are attached, and the amount, and, if shipped on Government bill of lading, the points of origin and destination, weight of the shipment, and bill of lading number. If for nonpersonal services, the character of the services, the date or dates on which they were ren
dered, and the amount will be stated. In addition to the date of receipt of contract or requisition, the date of receipt of invoice will be shown in order that advantage may be taken of discounts offered by vendors. (See AR 35-1040; fig. 1.)
(1) When prepared by disbursing officers. Upon the receipt of purchase orders or delivery orders with corresponding vendor’s invoice in triplicate (only the original of which will be signed) and receiving reports in duplicate or in case of nonpersonal services the required certificates prescribed in chapter 3, public voucher for payment of such invoices will be prepared and the administrative certificate on the voucher will be signed by an officer of the finance office, or as prescribed in f (3) (a) below. Disbursing officers preparing the vouchers will accept from duly accredited inspectors their certificates of inspection and acceptance on receiving report as authority for executing administrative certificate on Standard Form 1034. Officers charged with furnishing inspectors to inspect supplies at points of origin will furnish the disbursing officer designated to make payment with the names and certified specimen signatures of all inspectors authorized to inspect and accept supplies in behalf of the United States, indicating their field of operations. If the inspector is authorized to operate for all stations of his arm or service, the words “General authority” will be used in indicating his field of activity; but if he is authorized to operate only for a specific station, or stations, designation thereof will be made. (See AR 35-1040.)
(2) ~When prepared by other than disbursing officer. Procuring officers may initiate, prepare, and certify vouchers covering the procurement of supplies and nonpersonal services. In such cases, the original signed copy of the receiving report will not be required to be furnished to the disbursing officer. Only an unsigned copy of the receiving report will be required, as the accomplished administrative certificate is evidence of the receipt of the
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supplies. The preparation of vouchers by the procuring officers does not relieve disbursing officers of their responsibility for the correctness of expenditures requiring their audit, including examination of necessary supporting papers. The certifying officer shall be held responsible and accountable for the existence and correctness of the facts set forth on all vouchers that are prepared and certified to by any officer of the procuring agency including the correctness of computations shown on certified vouchers and on any required supporting documents.
&. Number and Distribution of Copies. (1) Number of copies. Standard Form 1034 will be prepared in original, duplicate (Standard Form 1034a) and generally triplicate. (See (2) (&) below.) Additional copies may be made where local circumstances require.
(2) Distribution of copies. () above, it is not necessary that a purchase order which does not exceed $5,000 in amount be preceded by a quotation. If the contract price exceeds $5,000, however, the following rules shall apply:
1. If the purchase order was preceded by a written quotation signed by the contractor, or if the contractor delivered some written instrument evidencing the contractor’s assent, the original of such written quotation or instrument should be forwarded to the appropriate Army Audit Branch of the General Accounting Office and a copy thereof attached to the copy of the purchase order furnished the disbursing officer.
If the contractor did not furnish a written quotation or written evidence of its assent and the purchase order merely accepted an oral quotation or was based on a price list, the purchase order, as forwarded to the Army Audit Branch of the General Accounting Office, should contain a reference to the oral quotation or price list. This may consist of a simple statement such as “Pursuant to oral quotation of___________________,
194__” or “Pursuant to_______________
(Name of contractor or other identification) price list, dated____________________
194__.” (See PR 303.)
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c. Numbering Contracts. (1) When required. Every formal contract involving the receipt or expenditure of public moneys will be numbered. Every informal contract involving the receipt or expenditure of public moneys will be numbered when—
(a) The actual or estimated amount involved is $5,000 or more.
(&) When more than one payment (or receipt) is involved, regardless of the amount involved. (See PR 309.)
(2) System. See paragraph 309, Procurement Regulations.
d. Numbered Contracts. The disbursing officer must require for his files an authenticated copy of each contract required by c above to be numbered. The signed original contract will be forwarded directly to the proper Army Audit Branch of the General Accounting Office by the purchasing and contracting officers. In making payments under numbered contracts it is not necessary that any of the original vouchers be supported by such contracts or copies thereof. The signed duplicate will be filed with the contracting officer or as directed by the chief of the technical service concerned. The signed triplicate will be forwarded to the contractor. (See PR 316.)
e. Unnumbered Contracts. The disbursing officer must require the signed original contract and an authenticated copy. The signed original will be attached to the voucher on which payment is made and will accompany such voucher to the proper Army Audit Branch, General Accounting Office. The authenticated copy will be attached to the duplicate copy of the voucher to be retained in the disbursing officer’s files. The signed duplicate will be forwarded to the contractor. Additional copies will be prepared and distributed as directed by the chief of the technical service concerned. (See PR 317.)
f. Payments Under Federal Surplus Commodity Contracts. In order to comply with the audit requirements of the General Accounting Office, vouchers citing Federal Surplus Commodity contract symbol numbers (FSC) will be supported by authenticated copies of such contracts. Where a particular contract has been
TM 14-504
filed with a previous voucher, reference to such voucher will be made on vouchers covering subsequent payments. These copies are necessary since the original of FSC contracts are generally not required to be filed in the General Accounting Office.
g. Statement and Certificate of Award (Standard Form 1036). (1) When contracts are negotiated in accordance with the authority referred to in paragraph 204, Procurement Regulations, Standard Form 1036 need not be executed (General Regulations of Comptroller General No. 51, Supp. No. 8, 1 June 1942). However, when Standard Form 1036 is not executed either—
(«) the notation “Negotiated Contract,” signed by the officer negotiating the contract, should appear under or in close proximity to the contract symbol and number on the cover sheet of the contract or,
(6) The contract should show in the wording thereof that it was negotiated under the provisions of paragraph 204, Procurement Regulations (MS Comp. Gen. A-51624, A-51607, 26 June 1942).
() Emergency Purchases. In any case where, pursuant to the provisions of (a) above, purchase of an item listed in the General Schedule of Supplies is not made under a General Schedule of Supplies Contract because the item could not be furnished under such a contract W’ithin the time that the item was required, the voucher submitted to the disbursing officer for payment shall contain a finding that—
1. The purchase was justified because the item could not be furnished under the General Schedule of Supplies Contract within the time in which the item was required.
2. The purchase outside the General Schedule of Supplies Contract was necessary to facilitate the prosecution of the war and was authorized under the First War Powers Act and Executive Order No. 9001. Such finding shall be final and conclusive. The authority to make such a finding is vested in the chiefs of the technical services and may be delegated to any officer or civilian official under their jurisdiction, including the contracting officer. It is to be emphasized that this authority is only to be used when necessary, and that it should not be construed to authorize disregard of the requirements of the General Schedule of Supplies. In all cases, the finding should consist of more than a mere conclusion. It should set forth the specific reasons why the time element made the purchase necessary. (See PR 606.)
For further detailed information, reference should be made to Procurement Regulation No. 6.
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(8) Blind-made products. The law requires that Federal Agencies purchase all brooms, mops, and certain other articles from nonprofit making agencies for the blind; however, a general clearance has been granted for the purchase of these items, under certain conditions, from commercial sources, such clearance being published in Procurement Regulation No. 6. When such items are purchased commercially, reference to this clearance must be made on contracts or vouchers. (See PR 6.)
(9) Products of the Federal Prison Industries, Inc. The law requires that Federal Agencies purchase certain items from the Federal Prison Industries, Inc. General clearance is granted from time to time for the purchase of these items, or a portion thereof, from commercial sources and when such items are purchased commercially reference to the clearance must be made on the contract or voucher. These clearances are published in Procurement Regulation No. 6, which also lists the articles that are available and can be furnished by the Federal Prison Industries, Inc. (See PR 6.)
(10) Printing, binding, and blank-book work. The following supplemental certificate is prescribed for use on contracts and/or purchase orders involving payments for all printing, binding, and blahk-book work accomplished or procured elsewhere than at the Government Printing Office in Washington :
I hereby certify as responsible officer in the field that the printing and/or binding covered by this contract or purchase order was, in my opinion, urgent or necessary to have done elsewhere than in the District of Columbia for the exclusive use of a field office of this department and that same is of the class and within the limitation specified in the regulations and/or the special authorization of the Joint Committee on Printing. ’ (MS Comp. Gen. A-51607, A-51624, 11 July 1944; PR 6; AR .35-1040.)
10. Delivery orders.
a. Contracts for Supplies. Delivery orders are usually used to request delivery of supplies under contracts which provide for delivery from time to time as required.
b. Contracts 'or Services. When a contract pro ides for the furnishing of services as required from time to time, the services will be confirmed periodically, or after the services have
TM 14-504
been furnished, by means of a delivery order, upon which the services furnished will be enumerated and covered by the following certificate:
I certify that the services covered by this delivery order have been rendered in accordance with the terms of the contract and the specifications covering same. (See par 9/t (6).)
c. Copies Required by Disbursing Officer and Disposition. When a delivery order is used under a and b above, the disbursing officer will be furnished with the original and one copy thereof. The original will be attached to the original voucher and the duplicate to the duplicate voucher.
d. Delivery Orders Issued Under Contracts of Procurement Division, Treasury Department; Navy Department; Post Office Department; Etc. (1) The disbursing officer must require the original and an authenticated copy of each delivery ord?r issued under the above referred to contracts. The original will be attached to the voucher on which payment is made and will accompany such voucher to the Army Audit Branch of the General Accounting Office. The authenticated copy will be attached to the duplicate copy of the voucher to be retained in the disbursin' officer s files. Vouchers submitted to the Army Audit Branch of the General Accounting Office may relate to less than all of the items covered by the delivery order. The signed original of the delivery order will be submitted to the Army Audit Branch of the General Accounting Office with the first voucher. When vouchers are submitted to the Army Audit Branch of the General Accounting Office covering subsequent payments, a reference will be made to the first voucher. The reference should contain the date on which the invoice covered by the first voucher was paid and the name of the disbursing officer by whom such payment was made. (See PR 3.)
(2) Chiefs of technical services (and commanding generals of service commands) are responsible for advising contracting officers under their jurisdiction as to terms and conditions of such contracts. (See PR 6.) The
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General Schedule of Supplies is furnished disbursing officers by the Office of the Fiscal Director, Army Service Forces, Washington 25, D. C.
11. Vendor’s invoices.
a. General. If a vendor submits for payment an original invoice or bill on which is shown the required certificate duly signed (see c below), such invoice or bill may be accepted if it constitutes a valid claim against the Government, and will be fastened securely to the voucher in lieu of stating the invoice or bill in detail on the voucher form and securing the vendor’s certificate thereon. More than one invoice or bill of the same vendor may be attached to and paid on a single voucher, provided the transactions are under the same agreement and/or under the same conditions as to method or absence of advertising, etc. In such case each invoice or bill should be described on the voucher sufficiently to identify it and the amount of each carried to the “Amount” column. The words “per detailed bill herewith” or words of like import may be used to describe the invoice or bill in cases where only one invoice or bill is paid on a voucher. The voucher will be otherwise completed in due form. Original bills need not be attached to vouchers when a bill of lading or transportation request accompanies a voucher for transportation services performed under public tariffs, or where, under a contract, quantities delivered or amounts due are determined by a duly authorized inspector and his certificate as to the facts is filed with the voucher to which it pertains. Where the vendor does not make use of a printed invoice form or is otherwise unable to state his account as prescribed herein, Standard Form 1034 may be prepared and forwarded to the vendor for certification prior to payment. (See AR 35-1040.)
6. Form in Which Furnished. (1) Original. The invoice when containing the executed certificate constitutes the principal part of the voucher and should not be a copy or a duplicate. Payment will not be made on invoices which are marked “copy,” “duplicate,” “duplicate invoice,” or other similar markings; except as provided in (4) below.
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(2) Certified invoices. If certified invoices are prepared on automatic or mechanical machines of the type using an original which is ordinarily discarded, the invoice submitted will be designated as the ORIGINAL and used as such. Except as provided in (3) below disbursing officers when supporting their vouchers with vendor’s certified invoices should use only the originals and/or invoices as described above (MS Comp. Gen. A-51601, 17 February 1934).
(3) Corrected invoices.—Payment may be made on vouchers to which are attached CORRECTED invoices issued to replace erroneous invoices, provided that, in order to avoid duplicate payments, such new invoices are marked “corrected” and are supported by the original erroneous invoices marked “void.”
(4) Original lost, (a) Where an original invoice has been lost, payment to the vendor may be made on the basis of a duplicate (not carbon) invoice, provided such duplicate invoice bears the vendor’s certificate signed by the creditor or by his duly authorized agent in the same form as the original, and provided further that the underlying purchasing instrument (that is, purchase order or contract) establishes clearly the designation of the particular disbursing office which is to make payment under such purchase order or contract. The foregoing conditions having been met, payment may be made only by the designated disbursing office, in order to prevent any possible duplicate payment, and the officer who prepares and certifies the voucher will make a statement on the face of the voucher, that adequate precautions have been taken to prevent duplicate payment, should the original invoice be found. This paragraph does not apply to documentary evidence requirements in connection with ccst-plus-a-fixed-fee contracts, which are set forth in TM 14-1000.
(&) The provisions of («) above apply equally to WD, AAF Form 15 (Combination Invoice and Receiving Report), with the following exceptions:
1. Payment of an original WD, AAF Form 15 or a duplicate invoice prepared in lieu thereof, where the original Form 15 has been lost, will be made only by the officer disburs
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ing for or at the home station of the airplane.
0. Where the original invoice has been lost (WD, AAF Form 15), the purchasing and contracting officer at the home station of the airplane, to whom the original of the form should have been submitted, will be required to make a statement on the duplicate invoice, which is prepared in accordance with («) above, that adequate precautions have been taken to prevent duplicate payment should the original form be found and presented for issuance of a purchase order.
3. In order to support the administrative certificate on payment vouchers in connection with 2 above, the vendor will be required to furnish, in addition to the properly executed invoice set forth in (a) above, his copy (quadruplicate) of the WD, AAF Form 15, or a photostatic copy thereof, bearing the signature of the officer or other properly authorized person accepting delivery of the supplies. However, where such evidence cannot be obtained from the vendor, the pilot responsible for the aircraft on the date of purchase should be requested to furnish report as to receipt of supplies for which invoicing is made. These documents or evidence will be retained in the files of the disbursing officer with the duplicate copy of the payment voucher.
Vote. The home station of the airplane will be overprinted or stamped on WD, AAF Form 15.
c. Certification by Vendor. The following certificate will be furnished by the vendor:
I certify that the above bill is correct and just; that payment therefor has not been received; that all statutory requirements as ta American production and labor standards, and all conditions of purchase applicable to the transactions have been complied with; and that State or local sales taxes are not included in the amounts billed.
TM 14—504
(MS. Comp. Gen. A-51607, A-49009,15 August 1941; MS. Comp. Gen. A-49009, 12 December 1941.)
(1) General. The general certificate prescribed above may be printed, stamped, typed, or written on vendor’s bill of sale or invoice and must be signed (in original only) by the vendor or its duly authorized representative. The duly authorized representative should include his title in signing the certificate. Such title need not be that of an officer of a corporate vendor, but may be that of any authorized representative, such as “Chief Clerk.” (MS. Comp. Gen., A-51607, 26 August 1937, and A-51607, A-49009, 15 August 1941.) In cases where it is physically impossible to include the additional certificate on the face of the voucher or invoice, the certificate will be placed on the reverse thereof. Additional (separate) sheets for, or duplicates, or copies of certifications only, will not be accepted by the General Accounting Office (MS. Comp. Gen., A-51607, A-49009, 2 April 1938). Under no conditions will the certificate on Government vouchers or on invoice forms to be attached to such vouchers be signed in blank or at any time prior to the submission of the voucher or invoice, but only after delivery or performance by the claimant. To do so may result in the submission of a false claim against the Government for which the person signing the certificate may be held liable under the law. (MS. Comp. Gen., A-51607, A-49009, 2 April 1938,2 June 1938, and 15 August 1941.)
(«) Carbon impressions of the vendor’s general certificate signed in ink or indelible pencil, may be accepted on vendors’ invoices or bills of sale, provided necessary precautions are taken to line out any signatures which might appear on other copies of such instruments submitted, thereby precluding the possibility of duplicate payments (MS. Comp. Gen. A-49009, 16 July 1943).
(b) Where a contract for supplies is awarded on the basis of including State and local sales taxes in the purchase price without the deduction of an amount representing such taxes, the general certificate for vouchers and invoices may be modified by eliminating therefrom the phrase “and that State or local sales taxes are not in
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TM 14-504
eluded in the amounts billed,” provided that, in all cases where the legal incidence of such taxes is upon the vendee, appropriate steps are taken to obtain appropriate tax exemption certificates from the dealers (21 Comp. Gen. 719).
() For “cost-plus-a-fixed-fee” contractors’ and subcontractors’ vouchers or invoices covering transactions in States or municipalities which do not exempt the United States from taxation, the general certificate will be used with the deletion, or noninclusion, of the statement “that State or local sales taxes are not included in the amounts billed” (MS. Comp. Gen. A-51607, A-49009, 9 February 1942).
(3) Vouchers for surplus machine tools, etc. Vouchers in favor of the Defense Plant Corporation, covering surplus machine tools and other equipment, may be accepted for payment with a portion of the vendor’s certificate on
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Standard Form 1034 deleted, so that the certificate will read as follows:
I certify that the above bill is correct and just; and that payment therefor has not been received.
(4) Invoice or voucher for gasoline, kerosene, fuel oil, etc., purchased at posted tank wagon, barge, or service station prices. Where a contract provides for the purchase of gasoline, kerosene, fuel oil, etc., at posted tank wagon, barge, or service station price (not to exceed a stated maximum), the posted prices and transportation costs will be stated on the invoice or voucher and in addition, to the general certificate the following certificate will be furnished :
I certify that tank wagon (or barge, service station, etc.) price, at date and point of delivery, is as stated herein (MS. Comp. Gen. B-33371, 29 May 1943).
In some cases vendors have not been required to state “posted” prices and transportation costs separately on invoices submitted. Such vendors have billed the Government at the maximum contract price, which results in overpayments of amounts due vendors. In order to eliminate suspensions, invoices should be checked for the information required bj- paragraphs 10 and 11, Procurement Division, Treasury Department, Schedule No. 1, Class 7— Gasoline, Special Conditions, dated 27 March 1944, quoted below:
“10. Invoices and prices to be paid.
“(a) Invoices, submitted at stated times (weekly or monthly) as requested by the ordering activity, shall cover all deliveries to that activity during the named period of time. Each invoice shall show all applicable invoice data, the TPS contract number, item number, and:
“(1) For tank wagon and drum delivery (zone) items: The contractor’s certified commercial consumer tank car or tank wagon (as the case may be) publicly ‘posted’ price for the place and time of delivery, less such amount as may be specified in the contract as deductible, and less the amount of all taxes which have been excluded from the quoted maximum price in accordance with paragraph H hereof;
“ (2) For tank car and transport truck items: The contractor’s certified open market price on date of shipment, publicly ‘posted’ at the bulk
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plant from which shipment was made, less the amount of all taxes which have been excluded from the quoted maximum price in accordance with paragraph 11 hereof. Invoices for items awarded f. o. b. destination, shall also show all transportation costs.
“(3) For marine delivery items: The contractor’s certified publicly ‘posted’ price for the place and time of delivery less the amount of all taxes which have been excluded from the quoted maximum price in accordance with paragraph 11 hereof.
“(Z>) The price payable shall be the price stated in accordance with (a) hereof or the quoted maximum price, whichever is lower, subject in either case to applicable time discounts and to the provisions of 11 (c) (2) and 11 (c) (3) hereof.
“11. Taxes.
“(«) Form of bid permissible: Method of evaluation. Bidders are requested to exclude from their bid prices the amounts of all applicable Federal, state, and local taxes, and to set forth, in detail, the amounts of tax thus excluded, as follows: (1) With respect to tank wagon and drum delivery items, in the Price Bidding Sheets, where indicated, and (2) With respect to tank car and transport truck items in the separate ‘Tax Data Sheets,’ attached for that purpose.
However, with respect to Federal excise taxes, this request applies only to bids to be opened prior to June 1, 1944, the Revenue Act of 1943 having eliminated the exemption of sales to the Federal Government except as to deliveries under contracts entered into before that date.
For the purpose of evaluating bids involving state or local taxes bid prices will be used in all cases.
“(&) Interpretation of bids; prices deemed to include all applicable taxes, unless otherwise specifically shown. Bid prices will be deemed to include all applicable Federal, state, and local taxes imposed prior to the date set for the opening of bids, and no tax exemption certificates will be issued with respect to any such tax, unless the amount of the tax is excluded from the bid price and is set forth in
TM 14-504
detail, in the manner indicated in («) hereof. “(c) Tax exemption certificates.
“(1) Subject to the provisions of subparagraphs (2) and (3) hereof, tax exemption certificates will be issued to the contractor with respect to all taxes excluded from prices payable under the contract. Where such certificates are issuable hereunder with respect to Federal excise taxes, contractors may, pursuant to Treasury Department, Procurement Division, Circular Letter No. 544, Supplement No. 1, request departments and establishments placing orders under the contract to issue blanket tax exemption certificates covering such taxes.
“(2) If on or after the date set for the opening of bids the appropriate ta^ official of any state or local government should authoritatively refuse to accept, in lieu of the payment of any applicable tax, exemption certificates issuable to the contractor hereunder with respect to such tax, on the ground that any or all sales to the Government are not, as such, exempt from the tax, then and in that event the amount otherwise payable to the contractor with respect to the sales affected thereby shall be increased by the amount of the tax. In consideration of such increase, the bidder agrees fully to cooperate with the Government, to execute such forms or documents as may be required by the Government, and to take such steps as may be requested by the Government in order to preserve to the Government any and all rights to the refund of such taxes, and to assist tin Government in any proceedings brought for the recovery thereof by litigation oi otherwise.
“(3) With respect to any ana all contracts awarded on and after June 1, 1944, no exemption certificates may be issued to cover Federal excise taxes. Where bids exclusive of such Federal excise taxes are submitted for opening prior to June 1, 1944, and are accepted on or after that date, the amount otherwise payable to the contractor shall be increased by the amount of the Federal excise taxes so excluded.
“ (4) Where a bid is inclusive of state or local taxes the bidder shall be obligated, whenever requested by the Government, to execute such
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TM 14-504
forms or documents as may be required by the Government for the purpose of evidencing the payment of such taxes by the Government.”
(5) C ertificate on invoices covering surplus property obtained from Government disposal agencies. Disbursing officers are authorized to accept the certificate set forth below, when properly executed by the contractor, in lieu of the one now required on Standard Form 1034, when used by contractors on their invoices covering property delivered by the contractor which has embodied therein surplus property obtained from Government disposal agencies:
I certify that the’above bill is correct and just; that payment therefor has not been received; that all statutory requirements as to American production and labor standards, and all conditions of purchase applicable to the transactions have been complied with (except as pertaining to surplus property obtained from the government disposal agencies) ; and that State or local sales taxes are not included in the amount billed (MS ■Comp. Gen. B-49009, 3 March 1945).
d. Number of Copies and Disposition. Invoices will be submitted by vendors in triplicate (only the original of which will be signed) and disposition will be made as follows:
(1) Original. The original with the certificate of the vendor will be fastened securely to the original voucher and fully identified therewith. (See c above.)
(2) Duplicate. The. duplicate copy will be attached to the duplicate copy of the voucher to be retained in the files of the disbursing officer.
(3) Triplicate. The triplicate together with the check will be forwarded by the disbursing officer to the vendor.
12. Receiving reports.
a. WD AGO Forms 10-91 (Subsistence-Receiving Report) and 10-113 (Receiving Report). (1) Certification. The original of the receiving report will be duly certified by the person who inspects and accepts the property for the Government. Such person may be the contracting officer or his duly accredited inspector or the officer who will assume accountability or his representative. (See AR 35-6560.)
(2) Copies to be furnished disbursing officer. The original certified receiving report and one unsigned carbon copy will be forwarded to the
disbursing officer designated by the contract or purchase order to make payment to the vendor, except that when a receiving report lists only articles exempted from property accountability under the provisions of AR 35-6520 and/ or expendable property covered by a certificate of expenditure for immediate consumption (see AR 35-6620), only the original signed receiving report is required by the disbursing officer and a carbon copy need not be forwarded to him. When the voucher is certified by the procuring officer, it is not necessary that the original receiving report be furnished the disbursing officer, the signature of the procuring officer to the administrative certificate on the voucher being sufficient to establish the fact that the supplies have been duly inspected and accepted. However, the carbon copy of the receiving report will be furnished for property audit purposes. (See par. 7a (2).)
(3) Disposition by disbursing officer, (a) Original. The certified original will be retained by the disbursing officer with the duplicate copy of the voucher as evidence of his authority for accomplishing the voucher and executing the administrative certificate thereon.
(J) Carbon copy. When payment has been made, the disbursing officer will have this copy notated to give the following data, and forwarded to the fiscal director of the service command in which the property will be accounted for:_____________ Paid on Voucher_____________,
(Station)
accounts of-------------------, for-------------
(See (4) below.)
(4) Disposition by disbursing officer when receiving report covers supplies received by a sales store. When this type of receiving report is received the following procedure will be followed in lieu of that prescribed in (3) above:
(a) Upon receipt of the receiving report the disbursing officer will have the prices shown thereon checked against those shown on the contract or purchase order. If there is a disagreement he will take steps immediately (through direct correspondence with the purchasing and/ or receiving officer) to have the discrepancies corrected. When the necessary corrections have been made and the report returned the disburs-
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ing officer will have the unsigned copy stamped with the designation of his office and the date, authenticated by his initials or those of his authorized representative and forwarded at once without letter of transmittal to the fiscal director of the service command in which the post, camp, or station concerned is located. The signed original receiving report showing the date upon which the unsigned copy was forwarded to the fiscal director of the service command will be retained as authority for executing the administrative certificate on the payment voucher. (See AR 35-6660.)
(Z>) When the account is paid, if there is a material difference between the amount paid and the amount shown on the receiving report (disregarding trade discounts) the fiscal director of the service command will be advised accordingly. Corrected copies will be processed and transmitted in the same manner as the original copies and if payment has already been made on the original copy, a full statement of the circumstances will be forwarded to the fiscal director of the service command with the corrected copy. (See AR 35-6660.)
b. Other Forms. When other forms of receiving reports are used such as WD Form 383, specific instructions for their preparation, etc. will be followed. For example instructions relative to the preparation of WD Form 383 are contained in TM 38-403, Station Supply Procedure.
c. Procurement of* Nonpersonal Services. In case of procurement of nonpersonal services rather than supplies, certification will be made on the contract, purchase order, or delivery order in accordance with paragraph 97t (6) or 10 in lieu of a receiving report.
d. Property Procured by Organizations Away From Home Station. See chapter 3, TM 14-505.
e. Property Procured Under Exceptional Conditions. Special procedures (differing from that prescribed in a above) have been prescribed for receiving property procured under exceptional conditions, such as under cost-plus-a-fixed-fee contracts, supplies, the unit price of .which does not exceed $10, total cost of sup
TM 14-504
•
plies delivered was not in excess of $500, and property procured for defense aid. (For further details see AR 35-6560; TM 38-403.)
12.1. Recording of commercial accounts.
a. Commercial vouchers submitted by components of the War Department to disbursing offices for payment should be processed promptly. Where posting to Bills Registers prior to payment is a prime cause of payment delay, such posting should be made after payment.
b. WD, AGO Form 14-1 (Bills Register) was designed for the recording of related papers received from three or more independent sources, which are necessary to complete a voucher. In the case of prepared vouchers (usually Standard Form 1034) certified and submitted by agencies and installations, all necessary papers are presented at one time, hence the need for posting detailed data to the Bills Register does not exist. In posting to Bills Registers data relating to this class of vouchers, at least six columns under four separate headings may be disregarded and posting should be limited to the following:
(1) Name and address of firm.
(2) Contract number, if any, or purchase order number, where more than one payment is involved.
(3) Bureau or agency voucher number, if shown on the voucher.
(4) Date of receipt of voucher.
(5) Net amount of voucher.
(6) Voucher number.
(7) Date check mailed.
(8) Register or “Block” numbers, if considered necessary or desirable, and where appropriate, remarks.
c. Normally, vouchers of the class referred to herein should be audited and paid within 72 hours after receipt, and disbursing officers are urged to make every effort to reduce the time of processing these vouchers to a minimum.
12.2. Flow charts.
a. Figure 2 indicates the procedure to be followed for payment of Standard Form 1034
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TM 14-504 UJ-L
•
where it is prepared in the Finance office and also shows the standard flow of related documents. However, there are numerous variations depending on the type of contract and the size of the disbursing office.
b. Figure 3 indicates the procedure to be followed for payment of Standard Form 1034 where it is prepared outside the Finance office and how it is processed. Normally, all vouchers prepared outside of the Finance office are processed in a similar manner.
~ ~ 25 Apr 45
c. When a new contract is received, it is analyzed and the salient features are often posted to a contract analysis sheet which is placed on the face of the contract for quick reference.
d. Receiving Report, either WD AGO Form 10-113 or WD AGO Form 10-91 is normally used except where War Department shipping documents WD AGO Form 450-1, etc., series or Vendors’ Shipping document WD AGO Form 450-60 series, applies.
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TECHNICAL MANUAL
PAYMENT FOR SUPPLIES AND NONPERSONAL SERVICES
Changes!
No. 8 J
WAR DEPARTMENT Washington 25, D. C., 25 September 1945
TM 14-504, 1 December 1943, is changed as follows:
Remove pages 49, 50, 51, and 52 and substitute page 49 and revised pages 50 through 64.
[AG 300.7 (20 Sep 45)]
By order of the Secretary of War:
Official:
EDWARD F. WITSELL
G. C. MARSHALL
Chiej oj Staff
Major General
Acting The Adjutant General
Distribution:
AAF (Budget & Fiscal) (10); AGF (Budget & Fiscal) (10); ASF (Control Div) (2); T of Opn (Fiscal Dir) (10); Dept (10); Base Comds (10); Tech Sv (Fiscal Br) (2); AAF Comds (2); Arm & Sv Bd (1); S Div ASF (except Fiscal Dir) (1); Sv C (Fiscal Dir) (10); FC (1); Class III Instls (1); Gen & Sp Sv Sch (10); ROTC (1); ROTC Lib (1); A (10); CHQ (10); D (2): B (2); C 14 (Finance Disbursing Sec) (5); AF (2).
Refer to FM 21-6 for explanation of distribution formula.
lU m 'A ! ) I
AGO 2008A—Sept. 663734°—45 a i ii %
1 Dec 43
executive departments or independent agencies of the Government, payment will, as a general rule, be made to the officer furnishing the supplies or services at the station where the transaction occurs. Payment for subsistence stores will, in all cases, be made direct to the station quartermaster. Departments or agencies to which supplies or services are billed will be requested to remit by check drawn in favor of the Treasurer of the United States. Checks received in payment for supplies and services will be turned over on War Department Form No. 346 (Daily Report of Charge and Cash Sales and Receipt for Funds Turned Over to Finance Officer), or for quartermaster (see AR 35-6660) on W. D., Q. M. C. Form No. 389 (Report of Sales), to the nearest disbursing officer or agent officer, who will account for the same in accordance with AR 35-780. In such cases the disbursing officer will place upon the voucher on which funds are received a notation of the date, check number, symbol number, amount, and name of the disbursing officer who issued the check. When collections are to be made locally, the officer furnishing the supplies will request the receiving agent of the executive department or independent agency concerned to receipt two copies of W. D., Q. M. C. Form No. 432 or 434 (Shipping Ticket). Except in the case of supplies pertaining to the Quartermaster Corps (see (2) below), a receipted copy of the shipping ticket supported by a copy of War Department Form No. 346 showing the disbursing officer’s receipt for check will be authority for dropping the supplies from the stock record account. The other receipted copy of the shipping ticket will be used for billing purposes.
(2) Supplies and services pertaining to Quartermaster Corps. When collections for sales of supplies and services pertaining to the Quartermaster Corps are to be made locally, the supplies or services sold will be transferred on
TM 14-504
67
shipping ticket to the sales officer, collection and disposition of funds to be made as in the case of sales to an individual. (AR 35-6660.)
b. Settlement by the Fiscal Director. In cases other than under a above where payment cannot be made promptly by the receiving agent of the executive department or independent agency requesting the supplies or services, or where so directed by the chief of the supply service, the officer furnishing the supplies or services will execute W. D., Q. M. C. Form No. 434 or bills in sextuplicate. Three copies will be filed temporarily and three copies will be forwarded to the receiving agent of the executive department or independent agency requesting the supplies or services, with request that they be certified as to the receipt of the supplies or services and returned to the issuing officer. Upon return of the three copies receipted as above indicated, the issuing officer will file one receipted copy as a voucher to his stock record account. He will enter upon the other two receipted copies and upon the three unsigned copies previously temporarily filed the designation of the appropriation and allotment, if any, to be credited, and will forward these five copies to the chief of his supply service. The supply service furnishing the supplies or services will then forward the two signed copies and two unsigned copies of the shipping tickets or bills to the Fiscal Director for necessary action toward securing reimbursement from the executive department or independent agency which received the supplies or services. Upon receipt of settlement of the account, the Fiscal Director will advise the chief of the supply service concerned. The Fiscal Director will furnish the proper service command fiscal officer with a validated copy of shipping ticket in which property is involved, for use of the property auditor. Additional copies of the shipping ticket are not required for property auditing purposes.
49
TM 14-504 25 Sep 45
' C8
INDEX
Paragraph Page
Acceptance of inferior goods________________________________________________________________ 23 31D
Accounting:
Actual damages_____________________________,____________________________________________ 22 28
Classification block—commercial voucher________________________________________________________ 7 4
Liquidated damages___________________________________________________________________________ 22 28
Reserve for Settlement of Claims, responsibility______________________________________________ 22 28
Taxes--------------------------------------1-------------------------------------------- 45 44 A
Accounts:
Advance payments made to contractors____________________________________________________ 19 22
Charge—telegraph bills____________________________________________________;_____________ 27 34
Disbursing officer to be advised of completion of deliveries___________________________________ 4 2
Organizations on the garrison ration system___________________________________________________ 40 43
Posted to Bills Register____________________________________________________________________ 12.1 13H
Prompt payment_________________x________________________________________________________ 13 ig
Quantum meruit basis________________________________________________________________________ 21.1 28
Reserve for Settlement of Claims______________________________________________________________ 22 28
River and harbor work________________________________________________________________________ 37 40
Telegraph bills to be paid within 5 days______________________________________________________ 27 34
Transportation________________________________________________________________________________ 37 40
Vendor’s account number, date of delivery, etc., shown on voucher__________________________ 7 4
Actual damages___________________________________________________________________________________ 22 28
Additional evidence required in supporting vouchers for packing, crating, and uncrating services._ 39 42
Adjustments:
After final payment_____________________________________________________________________ 23. 1 31E
Contract provisions for price adjustment______________________________________________________ 23 31D
Inferior goods________________________________________________________________________________ 23 31D
Mistakes in contract price__________________________________________________________________ 23 31D
Transportation costs. _____________________________________________________________________ 23 31D
Violation and suspension of the 8-hour law---------------------------------------------------- 23 31D
Administrative certificate_________________________________________________________________________ 7 4
Advance decisions involving coal contracts------------------------------------------------------ 35 39
Advance payments:
Authority for____________--------------------------------------------------------------- 19 22
Code used on informal contracts_______________________________________________________________ 19 22
Computation of interest----------------------------------------------------------------------- 19 22
Interdepartmental procurement----------------------------------------------------------------- 57 46
Recoupment—deduction from vouchers or by cash------------------------------------------------- 19 22
Rent, not authorized-,______________________________________________________________________ 31 37
Report. ____________________________________________________________________________________ 19 22
Vouchers for_________________________________________________________________j__________ 19 22
War emergency exceptions---------------------------------------------------------------------- 19 22
Advances of public money prohibited-------------------------------------------------------------- 19 22
Agreement calls for payment in foreign currency--------------------------------------------------- 7 4
Allotment of funds:
Accounting for vouchers involving liquidated damages----------------x___________________ 22 28
Advance payments made to contractors. -------------------------------------------------------- 19 22
Not to be exceeded_____________________________________________________________________________ 2 1
Rations of patients in hospital--------------------------------------------------------------- 41 43
Reserve for settlement of claims-------------------------------------------------------------- 22 28
Responsibility of disbursing officer----------------------------------------------------------- 5 2
Applicability of procurement regulations—liquidated damages------------------------------------- 22 28
Appropriations:
Accounting classification block, example------------------------------------------------------- 7 4
Identification reference and numbers__________________________________________________________ 2 1
Payment of customs duties_____________________________________________________________________ 21 27
River and harbor work_________________________________________________________________________ 37 40
Transfers—interdepartmental procurements______________________________________________________ 63 48
50
25 Sep 45 TM 14-504
C 8
Appropriations—Continued. Paragraph Page
Use of allotment members, care exercised_____________________________________________________ 5 2
WD Fiscal Code, TM 14-700____________________________________________________________________ 2 1
Assignment of claims conditions affecting payments______________________________________________ 18 20
Assignment of contract to bank, trust company, or other financing institutions__________________ 18 20
Authenticated specimen signatures of inspectors__________________________________________________ 7 4
Baggage:
By commercial van carrier___________________________________________________________________ 38 41
Payment for packing, crating, uncrating for shipment________________________________________ 39 42
Shipped at personal expense, reimbursement not ordinarily authorized____________________ 38. 1 42
Bill of lading number shown on vouchers__________________________________________________________ 7 4
Bills:
Cablegrams sent from foreign countries______________________________________________________ 27 34
Charges for personal telegraph service____________________________________________________ 27 34
Errors in favor of the Government___________________________________________________________ 16 17
Errors in favor of the vendor_______,___________________________________________________ 16 17
Prompt payment______________________________________________________________________________ 13 16
Reduced prices______________________________________________________________________________ 16 17
Submission of, monthly, telephone_______________________________________________________ 24, 26 32
Supplies in excess of amounts called for____________________________________________________ 16 17
Supporting evidence, telegraph______________________________________________________________ 27 34
Telephone_______________________________________________________________________________ 24, 26 32
Teletypewriter______________________________________________________________________________ 28 36
Water—discounts_____________________________________________________________________________ 17 18
Bills of lading_________________________________________________________________________________ 37 40
Bills register—use__________________________________________________________________________ 12. 1 13H
Blind-made products purchased by Federal Agencies________________________________________________ 9 12
Burial expenses-—reimbursement to individuals___________________________________________________ 49 44B
Buy American Act suspended______________________________________________________________________ 11 13C
Cablegrams from foreign countries_______________________________________________________________ 27 34
Canadian firms, payments to_________________________________________________________________ 17. 1 19
Cash discounts. (See Discounts.)
Cash payments—to companies, individuals, corporations, copartnerships etc___________________7, 7. 1 4, 8
Cash receipts____________________________________________________________________________________ 7 4
Certificates:
Administrative_______________________________________________________________________________ 7 4
Contingent funds_____________________________________________________________________________ 9 12
Defense Plant Corporation___________________________________________________________________ 11 13C
Delivery orders_____________________________________________________________________________ 10 13B
Form, in which furnished on invoice_________________________________________________________ 11 13C
Inspection and acceptance_________________________________________________________________ 7 4
Leases______________________________________________________________________________________ 29 37
Long distance tolls_________________________________________________________________________ 26 32
Modification of vendor’s certificate________________________________________________________ 11 13C
Motor-propelled passenger-carrying vehicles__________________________________________________ 9 12
Negotiated settlement agreements_____________________________________________________________ 7 4
Nonpersonal services_________________________________________________________________________ 9 12
Posted tank wagon prices____________________________________________________________________ 11 13C
Printing and binding_______________________________________________________________________ 9 4
Ration and savings account__________________________________________________________________ 40 43
Receiving reports_________________________________________________________________________ 12 13G
Required on procuring instruments___________________________________________________________ 9 12
Statement and certificate of award (Standard Form 1036)______________________________________ 9 12
Supplemental_________________________________________________________________________________ 9 12
Teletypewriter service—not required_________________________________________________________ 28 36
Vendor’s, general_______________________________________________________________________ 7, 11 4, 13C
Certified invoices. (See Invoices.)
Certifying officers:
Copies of orders furnished General Accounting Office long distance tolls________________ 26 32
Designated by Secretary of War—long distance tolls______________________________________ 26 32
51
TM 14-504
25 Sep 45
C8
Changes in specifications in contracts, liquidated damages
Changes and corrections made on vouchers and supporting papers Character of offer of discounts___________________________
Charge accounts, telegraph___________________________________________
Charge for personal telegraph service________________________________
Check payments____________________________________________
Citizen’s outer clothing, payment____________________________________
Civilian officials and/or employees authorized to certify vouchers___
Civilian witness fees, advance payment_______________________________
Claims:
Assignment______________________________________________________
Increase or decrease in cost of coal____________________________
Reserve for settlement of claims, allotment and project accounts Restriction on assignments or transfers_________________________
Set-offs________________________________________________________
Settlement of prepaid transportation costs______________________
Shortages or damages in shipments____________________,__________
Submission of, liquidated damages_______________________________
Subsistence—railroad companies____________________
Waiver of contractual claims____________________________________
Classes of transactions—interdepartmental____________________________
Clearances:
Blind-made products_____________________________________________
Federal Prison Industries, Inc__________________________________
Coal:
Basis for contract price________________________________________
Claims involving increase or decrease in cost___________________
Evidence required upon increase in cost_________________________
Payments made under special provisions in contracts_____________
Receiving reports_______________________________________________
Vouchers covering payments of amounts previously withheld_______
Code used in case of advance payments on informal contracts__________
Collections:
Actual damages__________________________________________________
Disposition of amounts collected by reason of contractor’s default.
Excess costs for packing and crating services___________________
Federal or state taxes__________________________________________
Personal telephone service—disposition__________________________
Sales by War Department, accounting procedure___________________
Unsatisfactory supplies_________________________________________
Violations of 8-hour law________________________________________
Commercial van shipments, evidence required to support vouchers Communication services of foreign communications companies Commutation of rations of patients in hospitals______________________
Completed transactions, payment______________________________________
Computation of:
Interest on advance payments____________________________________
Rent____________________________________________________________
Value of garrison ration not to be shown on voucher_____________
Contingent funds, certificate covering payments______________________
Contractors:
Paragraph Page
22 28
7 4
14 16
27 34
27 34
- 7, 7. 1 4, 13C
50 44B
7 4
19 22
18 20
34 38
22 28
18 20
22 28
37 40
37 40
22 28
17 18
17 18
57 46
9 12
9 12
32 38
34 38
33 38
35 39
36 39
36 39
19 22
22 28
22 28
39 42
. 44—48 44A, B
25 32
67 48
22 28
23 31D
38 41
19 22
41 43
21. 1 28
19 22
30 37
40 43
9 4
* Abandons contract causing termination__________________________________________ _ _________ 22 28
Action taken on increased costs—coal contracts_____________________________________________• 33 33
Certification of invoices covering surplus property obtained from Government disposal agencies, 11 " 13C
Disposition of amounts collected by reason of default__________________________________________ 22 28
Goods accepted after rejection, chargeable to__________________________________________________ 37 4Q
Indebtedness published in Finance Bulletins________________;___________________ __ _ 22 28
Mistakes in contract price—adjustments_________________________________________________________ 23 31D
52
25 Sep 45 TM 14-504
C 8
Contractors—Continued.
Payment: Paragraph Page
Of amounts of liquidated damages erroneously withheld___________________________________ 22 28
Of excess freight rate (CPFF)___________________________________________________________ 23 31D
To other than original___,_____■_____________________________________________________ 18 20
Prompt rendering of invoices_________________________________________________________________ 15 17
Right of sureties____________________________________________________________________________ 22 28
Voucher to indicate recognition of assignment________________________________________________ 18 20
Contracts:
Actual damages_______________________________________________________________________________ 22 28
Adjustments__________________________________________________________________________________ 23 31D
Advance payments_____________________________________________________________________________ 19 22
Assignment of claims—restrictions____________________________________________________________ 18 20
Basis for contract price of coal_____________________________________________________________ 32 38
Code used in case of informal contracts, advance payments____________________________________ 19 22
Completed transactions, payment__________________________________________________________ 21. 1 28
Cost-plus-a-fixed-fee:
Certification on invoices_______________________________________________________________ 11 13C
Execution of release____________________________________________________________________ 17 18
Notations on vouchers----------------------------------------------------------------- 8 10
Partial payments_____________________________________________________________________ 20 26
Damages_________________________________________:________________________________________ 22 28
Default_____________________________________________________________________________________ 22 28
Delivery orders issued under________________________________________________________________ 10 13B
Disbursing officer making payment to be shown..______________________________________________ 3 2
Discounts_______________________________________________________i________________________ 14 16
Exceptions to restrictions on assignments or transfers___________________________________ 18 20
Federal surplus commodity_____________________________________________________________________ 9 12
Fiscal features____________________________________________________________________•_____ 1 1
Formal—when used______________________________________________________________________________ 9 12
General requirements__________________________________________________________________________ 9 12
General Schedule of Supplies__________________________________________________________________ 9 12
Guarantee deposits__________________i____________________________________________________ 22 28
Indefinite quantities allotment chargeable___________________________________________________ 2 1
Indefinite quantities and unlimited amounts___________________________________________________ 21 27
Informal—definition___________________________________________________________________________ 9 12
Invoices accepted at reduced prices_._________________________________________________________ 16 17
Leases_______________________________________________________________________________________ 29 37
Liquidated damages___________________________________________________________________________ 22 28
Lost------------------------------------------------------------------------------------- 21. 1 28
Negotiated____________________________________________________________________________________ 9 12 *
Numbered—when required, disposition___________________________________________________________ 9 12
Partial payments_____________________________________________________________________________ 20 26
Posted tank wagon prices, certificate. (See Certificates.)
Printing, binding and blank-book work, certificate____________________________________________ 9 12
Procedure under Assignment of Claims Act of 1940___________________________________________ 18 20
Procurement Division, Treasury Department, Navy Department, etc.—delivery orders_________ 10 13B
Purchase orders issued under_________________________________________________________________ 9 12
Quantum meruit___________________________________________________________________________ 21. 1 28
Receiving reports____________________________________________________________________________ 12 13G
Restrictions_________________________________________________________________________________ 18 20
Rights of sureties__________________________________________________________________________ 22 28
Services—delivery orders_____________________________________________________________________ 10 13B
Set-offs_________________________________________________________________________________ 22 28
Special provisions in coal contracts_________________________________________________________ 35 39
State and local taxes included in purchase price_____________________________________________ 11 13C
Statement of payments involving liquidated damages___________________________________________ 22 28
Supplies—delivery orders_____________________________________________________________________ 10 13B
Supporting evidence to vouchers—general provisions_______________________________________ 1, 9 1, 12
Transfers___________________________________________________________________________________ 18 20
Transportation costs_____________________________________________________________________ 23 31D
53
0.00
m CM
TM 14-504 25 Sep 45
C 8
Contracts—Continued. Paragraph Page
Unnumbered_______________________________________________________________________________ 9 12
Unsatisfactory performance___________________________________________________________________ 22 28
Unsatisfactory supplies—methods of collection______________________________________________ 22 28
Copartnerships, payment______________________________________________________________________ 7. 1 8
Corporations, payment________________________________________________________________________ 7. 1 8
Corrected invoices_______________________________________________________________________________ 11 13c
Corrections made on vouchers and supporting papers________________________________________________ 7 4
Cost-plus-a-fixed-fee contracts:
Notations on vouchers_________________________________________________________________________ 8 10
Partial payments_____________________________________________________________________________ 20 26
Cost of improvement of rented premises___________________________________________________________ 31 37
Crating authorized baggage_______________________________________________________________________ 39 42
Cross-country flights, supplies and services_____________________________________________________ 51 44C
Custom duties on foreign purchases_______________________________________________________________ 21 27
Cylinders—demurrage charges_______________________________________________________________________ 8 10
Damages:
Actual_______________________________________________________________________________________ 22 28
Liquidated___________________________________________________________________________________ 22 28
Transportation______________________________________,_____'______________________________ 37 40
Decrease in cost of coal_________________________________________________________________________ 34 38
Deductions:
Land-grant___________________________________________________________________________________ 23 31D
Liquidated damages___________________________________________________________________________ 22 28
Defense Plant Corporation, certification of vouchers. {See Certificates.)
Definitions: Administrative certificate------------------------------------------------------------------------ 7 4
Certifying officers. _________________________________________________________________________ 7 4
Cost-plus-a-fixed-fee contracts______________________________________________________________ 52 45
Default______________________________________________________________________________________ 22 28
Delay________________________________________________________________________________________ 22 28
Disbursing officers of the War Department----------------------------------------------------- 5 2
Discount period______________________________________________________________________________ 15 17
Formal contracts______________________________________________________________________________ 9 12
Financing institutions______________________________________________________________________ 18 20
Identification number of appropriations_______________________________________________________ 2 1
Informal contracts____________________________________________________________________________ 9 12
Liquidated damages___________________________________________________________________________ 22 28
Transfers—•interdepartmental procurements____________________________________________________ 54 46
Unsatisfactory supplies-------------------------------------------------------------------- 22 28
Delivery of checks to third party for distribution___________________________________________ 7. 1 8
Deliveries—disbursing officer to be advised of completion_________________________________________ 4 2
Delivery orders—copies required by disbursing officer and disposition thereof____________________ 10 13B
Demurrage charges on empty cylinders______________________________________________________________ 8 10
Deposits—guarantee, disposition__________________________________________________________________ 22 28
Description of supplies and services shown in body of voucher_____________________________________ 7 4
Disbursing officers:
Acceptance of releases—cost-plus-a-fixed-fee contracts_______________________________________ 17 18
Accounting for Federal and State taxes----------------------------------------------------- 45 44A
Advised of completion of deliveries___________________________________________________________ 4 2
Coal accounts, action________________________________________________________________________ 33 38
Contracts, etc., to show official designation and location of paying office___________________ 3 2
Definition____________________________________________________________________________________ 5 2
Delivery orders, copies required and disposition_____________________________________________ 10 13B
Disposition of receiving reports_____________________________________________________________ 12 13G
Disposition of receiving reports when supplies received by sales store_______________________ 12 13G
Leases_______________________________________________________________________________________ 29 37
Name to be shown on leases. ----------------------------------------------------------------- 29 37
Payments made under special provisions in coal contracts_____________________________________ 35 39
Preparation of Standard Form 1034 (fig. 1)----------------------1------------------------z 7 4
54
25 Sep 45
C 8
JO CO to
STATE COLLEGE FOB *»*» LIBRARY
Disbursing officers—Continued.
Processing of transfer vouchers______________________________
Prompt payment of bills and accounts_________________________
Rent, written agreement required_____________________________
Responsibility with respect to allotment of funds____________
Station number shown on voucher______________________________
Telegraph bills forwarded to, for payment____________________
Vendor’s invoices—copies and disposition_____________________
Discounts:
Character of offer______________•____________________________
Coal contracts—commencement of discount period_______________
Computation of final date for payment________________________
Contracts contain liquidated damages clause__________________
Date of payment______________________________________________
Doubtful cases_______________________________________________
Erroneously taken____________________________________________
Excise tax, computation______________________________________
Export differential involved_________________________________
Express offer________________________________._______________
Last day of discount falling on Sunday_______________________
Loss_________________________________________________________
No consideration given in awarding contracts_________________
Payment to be made within discount period where possible_____
Period, defined______________________________________________
Responsibility for loss_________: _ _ _______________________
Special cases________________________________________________
Terms shown in body of voucher_______________________________
Water contracts, failure to make payment within specified time. Duty free purchases_____________________________________________
Eight-hour law—violation and suspension________;_________________________________
Emergency purchases________________________________________________________
Enlisted personnel, whose organizations are on field rations, authorized to mess separately
Erroneous invoices. (See Invoices.)
Excise tax, how computed_________________________________________________________
Executive Order No. 9001—Advance payments________________________________________
Exemptions from certain Federal tax______________________________________________
Expenses—burial__________________________________________________________________
Export differential—’computation of discbunt_____________________________________
TM
Paragraph
61
13
31
5
7
27
11
14
15
15
22
15
14
14 ,17
17
14
15
14
14
14
15
14
17
7
17
21
23
9
42
17
19
48
49
17
14-504
Page
48
16
37
2
4
34
13C
16
17
17
28
17
16
16
18
18
16
17
16
16
16
17
16
18
4
18
27
31D
12
44
18
22
44B
44B
18
Federal Prison Industries, Inc. products_____________________________________________________
Federal surplus commodity contracts (FSC)______________________________________________________
Federal taxes, disposition_____________________________________________________________________
Final payments not to be withheld because of outstanding Notices of Exceptions_________________
Financing institutions_________________________________________________________________________
First War Powers Act 1941, Title II____________________________________________________________
Fiscal features governing payments__________________________________________________
Fiscal officers responsibility—allotment of funds______________________________________________
Flow charts showing procedure followed for payment of Standard Form 1034 when prepared in or outside disbursing office, (figs. 2 and 3)_____________________________________________________
Foreign currency payments, preparation of vouchers____________________•_____________
Foreign made products, certification of vouchers_______________________________________________
Formal contracts, definition___________________________________________________________________
Forms:
Standard Form 43 (Standard Government Purchase Conditions (Coal))__________________________
Standard Form 1034 (Public Voucher for Purchases and Services Other than Personal) (fig. 1)__ Standard Form Standard Form Standard Form Standard Form Standard Form
1035
1036
1044
1049
1064
(follow sheet of 1034)________________________
(Statement and Certificate of Award)__________
(Schedule of Collections)_____________________
(Public Voucher for Refunds (tabular form)) (Schedule of Disbursements)___________________
9
9
46
17
18
19
1
2
12
12
44A
18
20
22
1 1
12. 2
7
11
9
13H
4
13C
12
32
6, 19
6
9
19, 25
6 53-66
38
4, 22
4
12
22, 32
4 46-48
55
Q.CO