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account current, but supporting papers, showing transactions in detail, when specially authorized, may be furnished only twice a year--with the June and December accounts-except upon changes of disbursing agents or bonds, when such papers must be furnished in support of fractional accounts. Disbursing agents are required to furnish with accounts for each month either copies of their individual Indian money check registers or lists in some other convenient form showing in numerical order all individual Indian money checks drawn during the month.

317. All such funds, except Liberty loan bonds for which the disbursing officer is accountable, will be carried either as cash on hand or deposited to official credit, and no funds may be shown as "in transit."

318. Collections will be entered in the "collections" column and the cash portion in the subsidiary cash account.

319. Balances reported on a voucher must agree with corresponding entries on the account current. Disbursing officers will be held strictly accountable for overdrafts and unless promptly collected the amount overdrawn must be deposited to the official credit of the officer from personal funds.

320. When a depository becomes insolvent the amount on deposit therein will be carried in the name of the depository, followed by the word "defunct" in the analysis of balances on the account current, and a similar notation will be made on the check register. In event of a change of disbursing agents the amount of such deposits will be transferred by journal voucher from the outgoing to the incoming agent.

321. When settlement for individual moneys on deposit in a defunct bank is made by the surety, an official receipt will be issued for the collection. The entire amount paid, both principal and interest, will appear in the body of the receipt, but only the amount of accrued interest will be extended to the amount paid column and taken up in the account. In the analysis of balances, the principal will be transferred by journal voucher from the defunct bank to the bank in which the collection shall be deposited.

322. The amount of Liberty loan bonds and other securities carried in the official accounts of a disbursing officer must be listed as a separate item in the analysis of balances.

323. In case of loss of individual moneys by theft or otherwise, the amount lost must be reported in the analysis of balances with a nótation explaining the cause of the loss, etc., and thus carried until a claim for reimbursement is approved or the amount has been made good from personal funds.

324. The analysis of balances must show for each bank the gross balance, outstanding checks, if any, and net balance. This information shall be compiled from the check register, if the bank's statements have not been received, and, if incorrect, a corrected analysis must be furnished when the statements shall have been received.

325. Pupils' funds.-Unless otherwise specifically ordered by the Indian Office, fund's held in trust by disbursing agents of nonreservation schools for the pupils of such schools will be disbursed under the following rules:

326. A specified day of each week will be set aside and designated as "pay day" for pupils' funds. On each of such days a check will be drawn for cash in the sum required for immediate disbursement, plus such an amount, not exceeding $100, ás is estimated to be needed to meet possible urgent demands of pupils between pay days, provided the carrying of such a cash balance is specifically authorized by the Secretary of the Treasury. (See par. 161.) The proceeds of this check will be delivered to an employee designated as "Pupils' cashier," to whom the amount will be debited on the cashbook.

327. Inasmuch as the disbursing agent will still be accountable for the money he may, in his discretion, require the pupils' cashier to furnish him with an indemnity bond.

328. Soon after the close of each fiscal quarter a report must be made to the Indian Office, showing the amount of cash kept over and above the amount required for immediate disbursement, in accordance with paragraph 161.

329. Check books containing a supply of blank checks to which serial numbers shall be assigned will be prepared and delivered to the pupils. These checks will bear the individual account numbers of the pupils. Stubs should be so arranged that the pupil may check up his balance at any given time. While the checks will not be negotiable, still the business training they afford will be valuable to the pupil.

330. On pay days, and at other times if necessary to meet urgent unforeseen needs, pupils will draw checks against their accounts for such sums as they may require, in the discretion of matrons or other employees who are charged with supervision in the premises; which checks will be paid in cash by the pupils' cashier if account balances are sufficient for the purpose. Payments may be made by disbursing officers' checks when specifically authorized by the Indian Office.

331. Paid checks, with a list thereof in the form of a journal voucher, will be delivered daily to the disbursing agent, who will examine them for completeness, etc., give the cashier due credit in the cashbook, make necessary postings in appropriation and pupils' ledgers, and retain the checks for use as subvouchers to his account. At least once a month the disbursing agent will check up the balance held by the pupils' cashier and see that the aggregate of balances shown by individual ledgers agrees with his control account.

332. When a pupil has left school and his whereabouts is known, the unexpended balance in his account will be remitted by disbursing agent's check to him or to the superintendent in whose jurisdiction he resides, as appropriate.

333. Balances due former pupils whose whereabouts are unknown will be held in accounts. of disbursing agents unless and until otherwise ordered by the Indian Office: Provided, That such of these balances as do not exceed $1 will be transferred by journal voucher to sundry receipts and deposited in the Treasury for credit to the fund entitled "Unclaimed individual Indian moneys (special fund).”

334. An itemized list of the balances so deposited must be prepared in duplicate, the original to be sent to the Secretary of the Treasury and the duplicate to the General Accounting Office for the purpose of future identification. Balances thus disposed of will be paid to owners from the fund above designated upon claims, with satisfactory proof of ownership, presented to the Indian Office for settlement through the General Accounting Office. (7 Comp. Gen. 355.) This paragraph should be cited on journal vouchers as authority for the transfers to sundry receipts.

335. Special deposits.-An individual ledger account must be kept for each payer of money taken into account as provided in paragraph 272 of these regulations. As soon as its ownership is definitely determined, each item of special deposits will be disposed of either by return to the payer or by transfer to individual Indian money or sundry receipts, as appropriate.

336. Guaranty deposits of unsuccessful bidders must not be taken up as special deposits, but returned to the remitters after making a record thereof, showing the remitter, reason for payment, description of remittance, when received and when returned. This record will be kept on file at the agency.

337. Outstanding liabilities.-All checks on local depositories which have remained outstanding and unpaid for a period of two full fiscal years, and for which no duplicates shall have been issued will be taken up as "Outstanding liabilities." This applies only to checks which have been delivered to the payees and for any reason have not been paid. (Checks drawn against individual moneys on deposit with the Treasurer of the United States are subject to the regulations of that office, which require that checks must remain outstanding for three full

fiscal years, at the expiration of which time the amounts are covered into "Outstanding liabilities" by the Treasurer and may be paid by claim.)

338. When such a check was drawn by a former disbursing agent the new disbursing agent will request the depositary to stop payment thereon and to remit the amount thereof to him by check payable to his order. Upon receipt of check he will issue an official receipt to the depositary and take up the amount as an outstanding liability.

339. In case the original check was issued by a disbursing officer who is still at the same unit, a check and official receipt will not be issued, but a journal voucher will suffice to record the amount in his current account after having a stoppage order placed against the original check. 340. The record to be made on the ledger and on the voucher will comprise the following data: Date, number, and amount of the original check, name of the payee, depositary on which drawn, issuing officer, account charged, and when taken up.

341. If the original check is presented to the bank on which drawn after the amount has been taken up as "Outstanding liabilities," the holder will be referred to the disbursing office of the issuing unit, who, if satisfied that the claimant is a bona fide holder of the check, will issue to the claimant his official check and cite this paragraph as authority for the disbursement. The outstanding check will then be canceled and transmitted to the General Accounting Office with other canceled checks.

342. Should the original check have become lost or destroyed, the applicant for reimbursement must furnish an affidavit, describing the check, and stating in what way it was lost or destroyed, indorsements thereon, if any, and establishing his title thereto. This affidavit must be acknowledged before an officer authorized to administer oath for general purposes. 343. In addition to the affidavit, if the amount of the original check exceeds $25, the applicant, unless a disbursing officer of the United States or specifically excepted therefrom by the Commissioner of Indian Affairs, will be required to furnish a penal bond for twice the amount of the original check, which may be secured by individual or corporate surety, for the protection of the Government against possible loss. Form 5-266 with suitable modifications should be used for this purpose. After the last clause in the condition on the bond form and opposite the word "witness" the following sentence should be added: "Wherever the words 'duplicate' or 'duplicate check' appear above it is hereby agreed that the words 'lieu check, are to be substituted therefor."

344. The affidavit and bond, when required, will be forwarded to the Indian Office with the recommendation of the disbursing officer. The Indian Office, if satisfied that the claim of the applicant is valid and the papers are in proper form, will grant authority for the disbursement.

345. Items amounting to $1 or less, which have been carried in this account for several years may be transferred by journal voucher to sundry receipts and deposited in the Treasury for credit to the fund entitled "Unclaimed individual Indian moneys (special fund)." A detailed report of each such deposit must be made to the Secretary of the Treasury, and also. to the General Accounting Office for the purpose of future identification. Moneys thus disposed of will be paid to owners from the fund above designated upon claims with satisfactory proof of ownership, presented to the Indian Office for settlement through the General Accounting Office. (Dec. Comp. Gen. A-25001, Nov. 8, 1928.) This paragraph should be cited on journal vouchers as authority for transfers to sundry receipts.

346. Unless and until proper space is provided on the appropriation ledger this account will be merged with special deposits but will be reported on a separate voucher.

347. Interest on individual moneys.-At the close of June 30 and December 31, of each year, each bank carrying a deposit shall credit interest thereon at the agreed rate to the account of the disbursing officer. The amount so credited shall be remitted to the disbursing officer by

draft within five days after the close of the interest period unless he has previously arranged to withdraw it by check Any bank delinquent in the payment of interest will be required to pay interest on the overdue amount. Disbursing officers will issue an official receipt for each interest collection. In the event that a deposit or any part thereof is withdrawn during an interest period by reason of the cancellation of a bond, interest which has accrued on the amount so withdrawn shall immediately be credited and promptly remitted to the disbursing officer unless included in his check or covered by separate check.

348. In computing interest the sum of disbursing officer's cash balances (ignoring fractional part of dollars) in the various appropriation ledger accounts on the 1st, 10th, and 20th of each month included in the interest period will be used as a divisor; the total of all interest collected (ignoring fractional parts of dollars), as shown by the ledger account, will be used as a dividend and the quotient, carried to the sixth decimal point, will be the rate by which the sum of the balances in each individual ledger account under individual moneys on the 1st, 10th, and 20th of each month will be multiplied to determine the amount of interest to be credited to each account. In case the balance in an account remains unchanged during a 6-month interest period, a shorter method of computing interest earned will be to multiply by 18 the rate obtained as above described and to multiply the product by the balance in the account. As an illustration, assume that interest collected totals $428.92, that the sum of the 10-day balances in the appropriation ledger accounts is $384,102, and that the sums of the 10-day balances in the various individual accounts are as follows: Account A, $61,019; account B, $87,511; account C, $58,408; outstanding liabilities account, $42,718; and special deposits account, $134,446; total, $384,102. The rate 0.001114 would be obtained by dividing $428 by $384,102. Applying this rate to the sum of the 10-day balances in each account shown above, the following interest credits result: Account A, $67.98; account B, $97.49; account C, $65.07; outstanding liabilities account, $47.59, and special deposits account, $149.77; total, $427.90.

349. Interest will be transferred by journal voucher from "Interest on individual moneys" to "Individual Indian moneys" and "Sundry receipts." The distribution should be made promptly after the close of the semi annual period and in no case later than the end of the succeeding quarter. A list of the accounts credited with interest and the respective amounts credited must be attached to the journal voucher. A small undistributed balance will remain in the interest account. This will be retained and added to the interest accumulating at the next distribution date, provided that interest may be credited on accounts closed during the next semiannual period on the basis of the rate last used for general distribution of interest if a sufficient balance is held in reserve; otherwise, interest will not be credited on closed accounts until the next general distribution date.

350. No interest will be allowed on open account if the amount earned is less than 10 cents nor on closed accounts if the amount earned is less than $1.

351. Interest on special deposits, outstanding liabilities, and pupils' funds will be transferred to sundry receipts and deposited to the credit of the United States.

352. Checks.-Disbursing officers are required to assign numbers to all blank checks on local checking depositories of individual moneys. The numbers assigned to checks and stubs must be in a series. A report must be submitted to the General Accounting Office, audit division, stating the serial numbers assigned and the name and address of the depository.

353. Before the supply of checks bearing serial numbers is exhausted, the depository should be instructed to furnish a new check book, the first serial number therein being the number immediately following the last number in the old check book. Ample notice of this requirement should be given the bank.

354. Checks shall be issued in numerical sequence. If a blank check is spoiled, mutilated, or defaced in any way it must be canceled and transmitted to the General Accounting Office, audit division. Should blank checks be lost or destroyed a complete report shall be made to that office.

355. Alteration of serial numbers is forbidden, except that when a duplicate check is to be issued, the number of the next unused blank check in the same series should be ruled out and replaced by the number of the check to be duplicated. In the check register and reports of checks drawn, the check thus used should be accounted for as "used for duplicate check No. It is not permissible for a disbursing agent to have unnumbered checks in his possession, and any that are on hand must be either returned to the depositaries or destroyed. (I. O. File 33231-29.)

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356. In addition to the information ordinarily printed on checks and the assignment of numbers, as above indicated, each depository must furnish checks which have spaces or printed legends for the ledger account number, the authority number, the name and location of the unit, the purpose for which drawn and, on the reverse, the usual instructions and blanks for witnesses to thumb-mark signatures.

357. Whenever there is a change of disbursing officers, all unused checks must be transferred to the new agent, who shall receipt to the outgoing agent therefor. All such transfers must be promptly reported by the new agent to the General Accounting Office.

358. Canceled checks.-A disbursing officer may cancel a check issued by himself for which credit has been taken and which has not been indorsed and make necessary adjustments on his records. Canceled checks must be recorded on the journal voucher used to recredit the amount involved in the accounts.

359. A disbursing officer, however, must not cancel a check issued by another disbursing officer but such checks should be forwarded to the Indian Office, which will instruct the depository to make a transfer of funds from the old to the new agent.

360. All canceled checks shall be transmitted at the close of each month directly to the General Accounting Office, audit division.

361. Undelivered checks.-The holding of checks drawn on Indian money depositories, because of difficulties in the way of delivery, or for other reasons, must be avoided as far as possible. To this end:

(a) Checks must not be drawn to the order of persons whose whereabouts are unknown, or until it is reasonably certain they can be delivered without delay, either directly to payees or through employees charged with that responsibility.

(b) When checks are drawn they must be delivered to payees as soon as practicable. If that is not done within three months from the last day of the month of issue, they must be disposed of (1) by indorsement of the superintendent as ex officio guardian and credit to accounts of payees, if drawn to the order of restricted Indians other than those whose accounts have been charged; or (2) by cancellation and recredit of accounts charged, if payees and account owners are the same or if drawn to the order of persons other than restricted Indians. (c) Unofficial checks payable to the order of restricted Indians, if undeliverable, will be indorsed by the superintendent as ex officio guardian and credited to the individual money accounts of the payees.

(d) As unofficial checks payable to the order of unrestricted Indians can not be indorsed as provided in the preceding paragraph, the superintendent, if such checks are not deliverable, should request the drawers to furnish lieu checks payable to his order for accounts of the Indians by name. When such lieu checks are received, they will be indorsed by the superintendent, the proceeds credited to the unrestricted Indian as individual money, and the original checks will be returned to drawers. (I. O. File 5323-29.)

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