Certifying Officer Legislation - Lesson 1

Certifying Officer Legislation Laws for Certifying Officers Training for Credit Card Payments Beginning of the Lesson For financial management, the rules come from the law. Financial management is required by the Constitution, public laws, and a number of authorizations and appropriation acts. The laws also spell out how it should be done. Take a look at these rules: • • • The Constitution says that money from the Treasury can't be spent unless it is specifically authorized by law. The Anti-Deficiency Act makes it illegal to use money in a bad way and has harsh penalties for people who break it. The Chief Financial Officers Act makes sure that all federal departments and agencies are good at managing money so that taxpayer dollars are spent wisely. People who work with public money, like finance officers, disbursing officers, agents, and other financial staff, are always responsible for those funds. If anyone loses money, they could be held personally and financially responsible. Goals for the Lesson Finally, you should explain what the Departmental Accountable Officials (DAOs), Certifying Officers (COs), and Disbursing Officers do and what the Certifying Officer Legislation (COL) is. When this lesson is over, you'll be able to: • • • • Find the laws, rules, and sources that are relevant to Certifying Officer Legislation. Explain what certification means when it comes to validating payment vouchers. Tell me about the different kinds of certification. List the important people who will be involved and what they are responsible for during the certification process. History of the Laws Certifying Officers Before a change in the law in 1996, only Disbursement Officers with the Department of Defense were legally responsible for financial wrongdoing. There were Certifying Officers, but they were just administrative hires. There are rules about how payments can be certified in the National Defense Authorization Act of 1996. Public Law 104 to 106. Part 193. This law set up financial responsibility as a way for people to be held accountable for their actions. Certification of Officer Legislation The Certifying Officer Legislation says that someone other than the Disbursing Officer has to be in charge of signing off on payment vouchers. That the vouchers are correct and can be paid for with the money or funds listed on them or on the supporting vouchers, and that the payments that are being suggested are legal, right, and correct. Check out "Purchase Card Certification Statement" in DoD FMR Volume 5, Chapter 33 and Volume 10, Chapter 23. Certifying Officers are financially responsible for any illegal, wrong, or improper payments that happen because of bad certification. Let's look at an example of how one Certifying Officer was found financially responsible and had to pay back the government for unauthorized use of government purchase cards. Example of Pecuniary Liability: As a certifying officer for government purchase cards at Wright-Patterson Air Force Base in Ohio's Defense Automatic Addressing Systems Center (DAASC), Mr. X did his job. Four cases of wrong payments made with government purchase cards using appropriated funds were found during an audit of the DAASC purchase card program. These funds were used to pay for two lunches at a local restaurant for DAASC employees and defense contractors, as well as disposable coffee cups and a late fee to Park University. The audit suggested that Mr. X, as the Certifying Officer, should pay back the government for all four payments that were not authorized. Cont. According to the report from the Government Accounting Office, Mr. X should have looked over and asked questions about any possible wrong payments before approving a billing statement for payment to the bank that processed the purchase card. Instead, he did not act in good faith when approving the four transactions for payment. It was turned down by the GAO, and Mr. X was charged $403. Review Before Payment Pre-payment reviews can happen at any time before payment, but only at the time that management thinks is best for them. This is based on when the voucher is being prepared. With these checks, vouchers are made sure to be backed up by proof of legal and correct payment. As part of manual processing systems, they check that the calculations are correct. Some of these requirements are making sure that: a) Payments are allowed by law and rule, but only with a credit card. This is also in line with the GSA Master Contract and the relevant Task Order. b) Payments have been authorized and are ready to be made. c) Requests for payment are backed up by simple paperwork. d) Identification of the payee is correct. e) It is correct to do calculations by hand and to enter data correctly into computer systems that do calculations. f) Correct accounting classifications are used, which are backed up by a correct document that requires them. g) There are funds available to support payments. h) The documents for disbursement come with any special certificates or receipts that are needed. i) Correct manual or automated edits and checks stop payments from being made twice. Now, we'll talk about what certification means when it comes to payment vouchers. A Certifying Officer's certification proves that a payment voucher is legal, proper, and correct, as described in 31U.S.C. Section The Certifying Officer needs to know about the following types of certification: a) Voucher Certification b) Voucher Awaiting Payment (VAP) Certification c) Certification d) Follow-up Certification e) Manual Certifications f) Certifications sent electronically g) Certificate of Voucher Voucher Certification A certificate for a single original voucher proves that the information on it is correct and valid, and gives the disbursing officer permission to make the payment that is specified on the voucher. The information on the voucher is the responsibility of the certifying officer. The bank bill, which may include more than one cardholder account, is signed off on by a Certifying Officer. Following Certification Certifying Officers are responsible for the information on the vouchers they sign off on as valid for payment. If any information on the voucher is changed after the initial certification, it needs to be recertified by a certification officer appointed by the property. It's called a successive certification when someone gets re-certified. The person who does the next certification is responsible for any illegal, wrong, or unfair payments made because of the updated information she or he certified. Certificates by Hand Certificates can be printed out or stored electronically. You can do manual certification right on the voucher of the seminary voucher. What's in the certification? a) b) c) d) e) Signature of the Certifying Officer Name, typed or printed Title Date Amount of money A voucher can be sent to the office that gives out money once it has been manually signed by a Certifying Officer. Our next step is to look at the electronic certification method. Certificates sent electronically Electronic certification can be given by the Certifying Officer if the following conditions are met: a) There are enough protections in place to stop unauthorized use. b) The Certifying Officer is the only one who can control access capabilities, such as the Common Access Card (CAC). c) Electronic certification is thrown out by the system if the data it is linked to is changed in any way. d) The Certifying Officer is the only person who can give an electronic certificate. e) The Disbursing Officer can check the electronic certification. If you need help with approved electronic systems, look at the Department of Defense Charge book. Important People and Levels of Power Centralized distributing, automated systems, more transactions, and more complicated business processes have made it harder for individuals to personally check that each payment is correct, legal, and appropriate. Certification of vouchers depends on the knowledge and information given by a number of important individuals. Their work is very important for the certifier to be able to do their job right. They are in charge of other people and provide direct support. Let's find out who these important people are and what they do to help with the certification process. Key Levels of Authority for Personnel The most important people in the certification process, from the top to the bottom, are: 1. 2. 3. 4. 5. 6. As chief of defense staff Heads of parts of the DoD Officers giving out money Supervision People who certify Officials in charge of accounts for departments We are going to talk about what each person is responsible for during the certification process. Comptroller under the Secretary of Defense The Under Secretary of Defense (Comptroller) is in charge of making sure that the payment voucher certification process is honest. Furthermore, this person gives appropriate advice for putting voucher programs into action, running them, and managing them. People in charge of DoD parts The specific rules in DoD FMR 7000.14R are carried out by the heads of the DoD components. These managers are in charge of running the day-to-day business. This includes overseeing and guiding the design, development, modification, and upkeep of the business processes and systems in their own parts. Certifying Officers and Departmental Accountable Officials are hired and supervised by the heads of DoD components or people they choose. The heads of DoD components can give appointment power to other people if it makes sense for the component. One example is the Director of the Defense Finance and Accounting Service (DFAS), who is also the Head of Component for the Defense Finance and Accounting Service. The Director of DFAS gives subordinate directors the power to appoint Certifying Officers and review officials, as well as the power to redelegate to certain levels. The Service Secretaries can give their power to organizations below them in two ways: generally or only in certain situations. Also, the heads of DoD parts: 1. Give all the rules for new and current Certification Officers and Departmental Accountable Officials. 2. Do regular inspections and reviews of the work done by Certifying Officers and Departmental Accountable Officials that they are in charge of. 3. Hold a hearing or order an investigation if a payment that is illegal, wrong, or improper is found. Cash Disbursing Officers Disbursing Officers are in charge of giving out money based on vouchers that have been properly certified. They look at the voucher to make sure it has the right form, certification, and approval from a certified officer. They also make sure that the voucher was calculated correctly based on the facts that were certified. Those in charge of disbursing money send vouchers back to the person in charge of certification when they are not complete, in the right format, or properly certified. Certain rules about appointments say that Disbursing Officers must keep their jobs separate. For instance, a Disbursing Officer usually can't be turned into a Certifying Officer or make someone else a Certifying Officer. If a certified voucher is not present or is not followed, the disbursing officer is financially responsible for the wrong payments that were made. In charge of: Supervisors are in charge of making sure that new and current Certifying Officers and Departmental Accountable Officials get both their first training and training to brush up on their skills. Supervisors must also check the work of Certifying Officers and Departmental Accountable Officials they are responsible for on a regular basis to make sure they follow policies and procedures. To cut down on the number of wrong payments, it is very important for Supervisors to keep an eye on Certifying Officers. Appointing and firing certifying officers Certifying Officers are in charge of making sure that the information on a voucher and in supporting documents and records is correct. They can use data from trustworthy automated systems that have been approved as following the rules of the Federal Financial Management Improvement Act (FFMIA). They decide if a proposed payment using the named appropriation or fund is legal and are in charge of the math on a certified voucher. Certifying Officers are financially responsible for any illegal, wrong, or improper payments that happen because of bad certification. Heads of DoD Components choose Certifying Officers and give them a DD Form 577, Appointment/Termination Record - Authorized Signature, or an approved electronic version of it. Certifying Officer must be fired using DOD Form 577, which must include the date and reason for the firing as a CO. The original DD Form 577 needs to be given to the Disbursing Officer who is doing the work. A copy should be kept in the personnel file of the Certifying Officer. The appointment and termination DOD Form 577 must be kept for 6 years and 3 months after the end of the appointment as a Certifying Officer. Departmental Officials Who Are Accountable Officials in charge of that department are accountable for giving a certifying officer information, data, or services that the certifying officer needs to make sure that payment vouchers are valid. The following are two examples of people who could be hired as Departmental Accountable Officials: • • • People who are receiving Those in charge of contracts Holders of Cards There is no presumption of negligence for DAOs, but they can be sued under 10 U.S.C. 2773a(c) for illegal, improper, or wrong payments that happened because of information, data, or services they negligently gave to certifying officers and those officers used to sign payment vouchers. About the Lesson You learned the following in this lesson: 1. The roles of Disbursing Officers and Certifying Officers are very public. They are financially responsible for what they did when a bad certification of a payment voucher leads to a wrong payment. 2. The laws and rules that make it possible to hire a professional who is independent to certify payment vouchers. 3. Getting a voucher for payment certified means that someone says it is legal, proper, and correct. 4. The things that make manual and electronic payment certification different. 5. What each person does and how they are responsible during the certification process.