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48. The authority of deputy disbursing agents to act as such terminates automatically with the death, resignation, transfer or removal of their principals, except as provided in paragraph 96 hereof.


49. Special care must be taken in the disbursement of public moneys to prevent their misapplication. Each appropriation is made for a specified purpose and must not be used for any other. (Sec. 3678, R.S.)

50. Appropriations made for one fiscal year are applicable, and can be used, only for expenses of that particular year. This does not mean, however, that sufficient supplies may not be purchased in one fiscal year to last until by the exercise of due diligence, supplies can be procured for the next fiscal year from appropriations applicable thereto.

51. Supplies which are purchased and delivered in one fiscal year will be paid for from appropriations for that year, provided there is no good reason to believe they are intended for use in the following year but are procured in advance to avoid the use of the next year's appropriations.

52. Supplies purchased in good faith for delivery and use during one fiscal year but not actually received until after June 30, will be paid for from appropriations for the year in which purchased.

53. Except as provided in paragraph 50 supplies will be paid for from appropriations for the year in which they are intended to be used, regardless of when they are contracted for, ordered or delivered. This applies especially to consumable supplies.

54. Wherever the word “supplies" appears herein the rules apply, as far as consistent, to services and other items of expense.

55. Should there be any reason for doubt as to the year to which an expenditure belongs, a statement should accompany the voucher showing when the need arose, when and what steps were taken to meet it, and when it is expected that the supplies will be used,

56. At agencies where funds are provided under treaty stipulations the treaties generally prescribe the manner in which they are to be expended. Treaty funds can not be diverted from the objects for which appropriated without the consent of the tribes, expressed in general council, which consent, stated in writing, must be approved by the President or the Secretary, as appropriate, and the approval communicated to the disbursing officer, before the diversion can be made. (34 Stat. 1016.)

57. Advance payments are forbidden by law, except that subscription charges for newspapers, magazines, and other periodicals for official use may be paid in advance from appropriations available therefor. (Sec. 3648 R. S.; act June 12, 1930, Public No. 347, 71st Congress; 10 Comp. Gen., p. 32.)

58. When a disbursing officer makes an illegal or double payment on the order of a superior, he does it at his peril, and the Government reserves the right to charge it to either or both. (Treas. Cir. 13, 1877.)

59. Funds on deposit in a United States depository must be drawn out only as they are required for disbursement, and, when practicable, payment must be made by check drawn to the order of the payee. (Sec. 3620, R. S.)

60. Transfers from one appropriation to another for the purpose of charging disbursements to different appropriations from those formerly indicated in accounts can be made only in answer to letters of exception or other specific directions from the Indian Office or the General Accounting Office. If for any reason a disbursing officer believes he has charged a disbursement to the wrong appropriation in monthly accounts which have been submitted, he should report the circumstances to the Indian Office and request instructions before attempting to adjust the error by a transfer of funds. If the expenditure has been reported on the monthly trial balance but not yet on the account current, the expense should be charged directly to the proper fund on the account current but the Indian Office should be requested by letter to make necessary corrections in the trial balance.


61. Unexpended balances of appropriations made for one fiscal year can not be used to liquidate obligations incurred in another fiscal year. (Sec. 3690, R. S.)

62. As soon as possible after the 30th of September of each year, disbursing officers must deposit to the credit of the United States all unexpended balances of prior year funds remaining in their hands or to their official credit, with the exception of individual Indian money, pupils' funds, special deposits, and other funds which they may be authorized to collect and retain until expended.

63. Any part of prior year funds that have been returned to the Treasury in accordance with the last preceding paragraph, may be readvanced to disbursing agents for payment of authorized obligations for which the appropriations are applicable upon request and acceptable explanation of reasons for nonpayment prior to the 30th of September. (7 Comp. Gen. 751.)

64. No money shall be paid to any person for his compensation who is in arrears to the United States, until he has accounted for and paid into the Treasury all sums for which he may be liable. (Sec. 1766, R. S.)

65. Credit for a deposit must be claimed in the account for the month in which the check therefor is drawn on the Treasurer of the United States. The date and number of certificate of deposit, when known, should be shown on the account current.

66. Cash collections can not be deposited to the credit of the United States as “Sundry receipts" until after their deposit to the official credit of disbursing officers has been completed. Hence, it follows that if such collections are not cleared before the close of a month, checks for their deposit to the credit of the United States can not be drawn during that month. The correct procedure in this case is to carry the collections over as part of the balance to the official credit of the disbursing agent and deposit them to the credit of the United States soon after the first of the next month.

67. Failure of a disbursing officer to render accounts, or to pay over, in the manner and in the time required by law, or by the regulations of the department to which he is accountable, any public money remaining in his hands is by law constituted embezzlement, the penalty for which is imprisonment for not less than six months nor more than ten years, and a fine equal to the amount embezzled. (Secs. 3624, 3633, 3634, 5491, 5492 R. S.)

68. Funds which are subject to deposit to the credit of the United States are divided into three general classes, viz:

(a) “Unexpended balances,” which include only moneys that have been advanced from the Treasury Department upon requisitions issued by the Indian Office.

(6) “Refunds,” which include moneys collected or paid by disbursing officers to correct overpayments or other errors in their accounts under former bonds or for prior fiscal years, or in accounts of former disbursing officers. (Receipts for correction of errors in accounts of present disbursing officers for current fiscal years and under current bonds may be retained to the official credit of disbursing officers, subject to expenditure for authorized purposes during the year to which the funds are applicable.) (See par. 37.)

(c) "Sundry receipts," which include all moneys not embraced in the two other classes with the exception of individual Indian money, special deposits, and other funds which disbursing officers may be authorized to collect and retain in their accounts until expended. (See pars, 39 and 40.)

69. In making a deposit to the credit of the United States, the disbursing agent will prepare a certificate of deposit on Treasury Form 1, revised, in triplicate, showing in detail how the money is to be credited, and send all three copies to the Treasurer of the United States with a carbon copy of a report on Form 5-638, the original and duplicate of which are to be furnished the Indian Office at the same time. The analysis of appropriations should be typed on the face of the certificate of deposit if space permits; otherwise on the reverse. Certificates of deposit shall be numbered but not dated by the depositor when prepared by him. Letters of transmittal are not required. A separate check, certificate of deposit, and report on Form 5-638 are required for each class of funds described in paragraph 68. (G. A. O. Gen. Reg. 67 and J. 0. File 15507-29.)

70. Individual Indian money, special deposits, and other funds which disbursing agents may be authorized to collect and retain in their accounts until expended should never be deposited to the credit of the United States, except when specifically directed by the Indian Office.

71. The Treasurer of the United States must always be furnished with the names of disbursing officers for whose credit deposits are made. This is especially important when the deposits are for adjustment of errors in accounts of former disbursing officers.

72. Deposits of funds must not be included in schedules of disbursements. They should be shown only on the account current, with reference to numbers of certificates of deposit.

73. Deposits of cash to the official credit of a disbursing officer with the Treasurer of the United States shall be made daily through the Federal reserve bank, or a branch thereof, in his district: Provided, That if the disbursing officer is located in the same city or town with a national bank which is a general Government depository, sạch deposits may be made through such bank. ; 74. Currency or coin, unless deposited personally, with a general national bank depository, shall be remitted to the nearest Federal reserve bank, or branch by postal money order, express, or registered mail in the order named, and the necessary expenses of so doing may be paid from applicable funds. In addition to the person who prepares a remittance by express or registered mail, there must be at least one reliable witness to its preparation and dispatch and a record must be kept of the contents of each package. Postal and express money orders shall be deposited, subject to collection in the same manner as cash.

75. All checks, whether certified or uncertified, shall be forwarded for deposit each day to the Federal reserve bank of the district in which the depositors' head office is located, or the nearest branch thereof. (Treas. Cir. 176, as amended May 15, 1922.)

76. The last two preceding paragraphs do not apply to deposits of individual Indian money and special deposits, which will be made daily directly with the banks designated to receive this class of money.

77. Cash and checks forwarded for deposit to the official credit of an officer with the Treasurer of the United States shall be accompanied by Treasury Department Form 6599.

78. Checks drawn on the Treasurer for deposit of funds to the credit of the United States should be transmitted to the Treasurer of the United States direct and not through other depositories.

DEFICIENCIES 79. No department of the Government shall expend, in any one fiscal year, any sum in excess of appropriations made by Congress for that fiscal year, or involve the Government in any contract or obligation for the future payment of money in excess of such appropriations unless such contract or obligation is authorized by law. Nor shall any department or officer of the Government accept voluntary service for the Government or employ personal service in excess of that authorized by law, except in cases of sudden emergency involving the loss of human life or the destruction of property. * * * Any person violating any provision of this section shall be summarily removed from office and may also be punished by a fine of not less than one hundred dollars, or by imprisonment for not less than one month. (Sec. 3679 R. S., as amended by act of Mar. 3, 1905, 33 Stat., 1257.)

80. In order to prevent deficiencies the law requires that no expenditure shall be made or liability incurred on the part of the Government on account of the Indian Service for any fiscal year, unless in compliance with existing law, beyond the amount of money previously appropriated for said service during such year (act of Mar. 3, 1875, 18 Stat., 450).

81. Borrowing from one appropriation for the benefit of another, or making expenditures in excess of available appropriations, is prohibited by law. Hence, no expenditure must be made for any purpose in excess of the amount standing to the disbursing officer's credit under the particular appropriation to which the expense is chargeable. (Secs. 3678, 3679, 3732, R. S.)

82. No person, at his own option, can create a legal claim against the United States by advancing his own private funds, or borrowing money for disbursements.

83. Section 10 of the act of June 22, 1874 (18 Stat. L. 177), prohibits the purchasing of supplies from employees of the Indian Service. All vouchers for disbursements to employees must show the official titles of such employees, either in the body of the vouchers or immediately below the signatures of claimants.

CHANGES IN DISBURSING AGENTS 84. When a disbursing agent of the Indian Service is relieved by his successor in office the unexpended balance of funds for which he is responsible will be disposed of and accounted for in the following manner:

85. All currency, checks, and other items held as "cash” will be deposited to his official credit with the Treasurer of the United States or in a bonded individual Indian money depository, as appropriate 1 86. After meeting the requirements of the preceding paragraph the outgoing agent will transfer all unexpended balances of public and other funds to his successor by checks drawn, respectively, on the Treasurer of the United States and each solvent individual Indian money depository. As a valid check can not be issued on an insolvent depository, a journal voucher will suffice to effect the transfer of funds in such a depository from one agent to another.

87. The balances to be so transferred will be those shown by the account of the outgoing agent unless these prove to be incorrect upon verification with the latest available Treasury and bank statements as bases.

88. Credit for the funds transferred will be claimed by the outgoing agent in the blank column under "Payments" on his final account current which should be headed “Transferred to.---------."

89. The incoming agent will deposit the checks to his official credit with the Treasurer of the „United States and the individual Indian money depositories, as appropriate, and take the amounts under the various appropriations and funds into his first account current, using the blank column under “Receipts,” which should be headed “Transferred from -----

90. The incoming agent will receipt to the outgoing agent, in triplicate, for the funds transferred, listing the various appropriations involved by their titles and showing the amount under each. One copy of the receipt will be retained by the incoming agent, one by the outgoing agent, and the other attached to the final account current of the last named. (6 Comp. Gen. 290.)

91. If there'are any Liberty loan bonds of Indians in custody of the outgoing agent, they also will be transferred to his successor, and the receipts required by the preceding paragraph will include them, coupon bonds and those registered in the name of the superintendent as trustee being listed separately from those registered in the names of the Indian owners.

92. If he has sufficient funds in his hands applicable for the purpose an outgoing agent will, before being relieved, pay his own and the salaries of the employees up to and including the day preceding that upon which his successor takes charge. Should he not have sufficient funds he will prepare a pay roll for amounts due, make the required affidavit thereto, and turn it over to his successor for payment.

93. All other authorized liabilities outstanding on the date of relief of an outgoing agent may likewise be paid from applicable funds by his successor on properly completed vouchers signed by the former agent.

94. Agents after leaving the service must keep the Indian Office and the General Accounting Office, audit division, advised of their post-office addresses until their accounts are finally settled.

95. When a disbursing agent takes out a new bond without change of position, he will have the balances of funds for which he is accountable verified by at least two disinterested persons who will sign a certificate showing separately the amounts of (1) currency, (2) checks, (3) other items held as cash, described in detail, (4) United States securities, (5) balance with the Treasurer of the United States, and (6) combined Indian money depositary balances; the first four to be determined by actual count and the last two by using the latest available Treasury and bank statements as bases. This certificate will be forwarded with the final account under the old bond and the date thereof must agree with the closing date of such account. The balances so certified will appear in the account under the old bond as "Transferred to account under new bond dated ---------- per certificate herewith” and taken into the new account as "Transferred from account under old bond dated ----------." (6 Comp. Gen. 290.)

96. When a disbursing agent dies in the service, his accounts should be prepared by the agency employees and signed by his deputy if he has one, otherwise by his legal representative, In the latter case, the affidavits and certificates as to correctness will be amended so as to state that the vouchers, etc., are correct and unpaid according to the office records.

97. A deputy disbursing agent is not authorized to draw checks for any purpose against the account of his principal after the death of the latter. He should report to the Indian Office immediately the balance standing to the credit of the deceased disbursing agent with the Treasurer of the United States in each appropriation and fund, as shown by the appropria, tion ledgers. The office will, thereupon, cause such balances to be deposited to the credit of the United States, after which they may be advanced to the new agent upon requisition. The new agent should request all Indian money depositaries, by letter, to transfer the balances of his predecessor, less outstanding checks, to his own official credit. (Comp. Gen. Dec, 14, 1926, A-16413; I. O. 58209–26.)

98. When a superintendent dies without making affidavit to the services of employees who have not been paid, a roll should be prepared by the clerk in the usual manner and each employee should make affidavit to his own service. When the roll is thus completed the then disbursing agent will make payment under appropriate authorities and from applicable funds.

RETIREMENT DEDUCTIONS 99. The amendment of July 3, 1926 (44 Stat. 904), to the civil service retirement act of May 22, 1920 (41 Stat. 614), requires that a deduction of 34 per cent shall be made from the basic salary, pay, or compensation of each employee to whom the act applies. This amendment became effective as of July 1, 1926. (Gen. Regs. No. 54, G. A. O.) .

100. Such deductions are to be made by disbursing agents on the basis of gross compen“ sation actually earned. Where salaries are paid semimonthly the mid-month payment will be the amount earned in even dollars next below the amount due for the half month after deduction of 3% per cent and the remainder of the deduction will be made at the end of the month.' (Gen. Regs. No. 54, G. A. O.)

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