244. When any irregularity in the issuance of a check drawn on the Treasurer of the United States is discovered after the check has been delivered or mailed to payee and it is not known whether payment has been made or not, a full report of the facts in the case should be made to the Treasurer, with request for stoppage of payment. If the check is outstanding, appropriate action will be taken by the Treasurer. If payment has been made the Treasurer will refer the report to the General Accounting Office for such action as may be required. When it is known that the check has been paid by the Treasurer of the United States the irregularity should be reported directly to the General Accounting Office. (Bull. 4, Comp. Gen., Aug. 15, 1923.)

245. When the payee of a check drawn on the Treasurer of the United States complains of its nonreceipt the disbursing agent should furnish him by letter with a full description thereof and date of forwarding, and instruct him that if the check is not received within a reasonable time the letter should be forwarded to the Treasurer with a statement over his own signature reciting the facts in the case and giving his correct post-office address. (Bull. 4, Comp. Gen., Aug. 15, 1923.)

246. If a Treasury check is lost, stolen or destroyed after its receipt by the payee, the latter should report the fact in writing to the Treasurer of the United States for appropriate action. If practicable without causing undue delay, information should be given as to indorsements, if any, appearing on the check. Disbursing agents should inform payees of this requirement and assist them by furnishing descriptions of checks. (Bull. 4, Comp. Gen., Aug. 15, 1923.)

247. Information pertaining to, or copies of paid checks will be furnished by the General Accounting Office only when essential to investigations or upon a sufficient showing of other necessity therefor subject to proper restrictions. Paid checks may not be returned except to the Treasurer for reclamation. (Bull. 4, Comp. Gen., Aug. 15, 1923.)

248. Investigations and other action subsequent to notice of irregularities and losses will be conducted by the Treasury Department or General Accounting Office directly with those concerned. Any claims for amount recovered and deposited in the Treasury must be forwarded with full administrative report and reference to the check involved, to the General Accounting Office for direct settlement. (Bull. 4, Comp. Gen., Aug. 15, 1923.)

249. Correspondence pertaining to the loss, theft, or destruction of official checks drawn on Individual Indian Money depositories, or any irregularities in respect to such checks will be conducted with the Indian Office.

250. Checks drawn on the Treasurer of the United States which can not be paid because of death, disqualification, or error in name of payee, should be forwarded to the General Accounting Office, Washington, D. C., without alteration or correction with the information called for in Bulletin No. 2 of the General Accounting Office, dated May 22, 1922.

251. Undelivered checks.-The holding of checks drawn on the Treasurer of the United States, 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 by disbursing agents 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) Per capita and other payments due Indians to whom checks could not be delivered without undue delay may be made by crediting individual money accounts of payees in the manner provided in paragraph 277.

(c) Checks drawn on the Treasurer of the United States if not delivered to payees within three months from the last day of the month of issue, must be disposed of either (1) by endorsement of the superintendent as ex-officio guardian and credit to accounts of payees, if drawn to the

order of restricted Indians, or (2) by forwarding to the General Accounting Office, claims division, liabilities section, if the payees thereof are other than restricted Indians. (Supp. Gen. Acct. Office Bull. No. 3, and I. O. File 1490–29.)

252. In forwarding the checks a statement should be furnished giving the name and symbol number of the disbursing officer and listing each check by number, date, amount, payee, payee's last known address, voucher reference, and statement of the nature of the payment; that is, whether for salary, reimbursement of expenses, supplies furnished, etc. (Supp. Gen. Acct. Office Bull. No. 3, May 19, 1923.)

253. All applications for undelivered checks should be transmitted to the General Accounting Office, claims division, liabilities section, with appropriate advice for attention. (Supp. Gen. Acct. Office Bull. No. 3, May 19, 1923.)

254. When a disbursing office is permanently discontinued all checks that can not be delivered should be forwarded to the General Accounting Office, for deposit to the credit of "Outstanding Obligations."

255. When a check on the Treasurer of the United States has been altered, mutilated or erroneously drawn but not delivered, such checks should be marked "void" "cancelled" or "spoiled" as appropriate, with the date of such action and forwarded to the General Accounting Office, audit division, as required by paragraph 263.

256. When the drawer of such a check is still disbursing it should be marked "void" if no credit therefor has been claimed in an account rendered; "cancelled" if credit has been so claimed, in which case the amount thereof will be taken into the current account with an explanatory note; and "spoiled" if not completely filled out and signed but rendered unfit for use. 257. When such checks have been delivered to payees and are outstanding and unpaid, any reasons for voiding or canceling them should be communicated to the General Accounting Office, audit division, and the Treasurer of the United States should be notified to stop payment thereon. Action will be taken in proper cases by the General Accounting Office to adjust the account before the amount of the warrant or check is covered into "Outstanding liabilities."

258. Any check which should be voided or canceled, the drawer of which is no longer disbursing, must be forwarded to the General Accounting Office, audit division, with a statement of the action to be taken and the reasons therefor. If it is determined that the amount of the check is not due the payee or his estate the Secretary of the Treasury will be requested to transfer the amount thereof from the depositary account of the drawer to the credit of the proper appropriation, without personal credit.

259. Where checks in the possession of the General Accounting Office are not payable as drawn they will be "canceled" if the amount is not due the payee or his estate; "indorsed" if the checks should be made negotiable on the indorsement of any person other than the payee; or "deposited" if the payee or his estate is indebted to the United States.

260. Notice of action taken by the General Accounting Office with reference to cancellation of checks will be sent to the proper administrative office and to the drawer, if still disbursing, together with notice of any adjustment in the accounts necessary to the accomplishment of the action taken.

LISTS OF CHECKS DRAWN AND STATEMENTS OF DEPOSITARY ACCOUNTS

261. On or before the 10th day of each month each disbursing agent of the Indian Service is required to furnish the General Accounting Office, audit division, with a list of checks drawn by him during the preceding month against his account with the Treasurer of the United States, together with a statement of such account. Forms 5-309 and 5-309a (with 5-3096 when necessary) will be used for the purpose, except that carbon copies of check registers (Forms

5-687 and 5-688) will be accepted in lieu thereof. In whichever form submitted, they must show the location, or station, and symbol number of the disbursing agent, and month for which rendered, and must be certified as to correctness.

262. Either lists and statements on the prescribed forms or copies of check registers must be mailed promptly to "The General Accounting Office, Audit Division, Washington, D. C." Neither they, nor copies thereof, should be sent to the Indian Office. Letters of transmittal are not required except when necessary for explanations.

263. If a check is drawn in exchange for funds the notation "Exchange for funds" should be made on the list. "Spoiled" or "voided" checks, i. e., those for which credit has not been claimed, must be included in the lists, with appropriate notations, and forwarded therewith, to the General Accounting Office, Audit Division. "Canceled" checks, i. e., those for which credit has been claimed, must be listed separately and forwarded to the General Accounting Office with the statement of depositary account upon which the disbursing agent will charge himself with the amount thereof. (Gen. Reg. No. 31, Gen. Acct. Office.)

CLAIMS

264. Unless otherwise specifically directed, vouchers in favor of common carriers for passenger and freight transportation; those for Sioux benefits, pro rata shares of tribal trust funds and unpaid shares of per capita payments; those of doubtful validity; those under indefinite contracts; those for damages of any kind; those subject to deduction for liquidated damages about which there is any controversy, or for other reasons, except discounts offered by vendors; those the payees of which are reported by the General Accounting Office to be indebted to the United States; and those which for any reasons disbursing agents are unable or unwilling to pay, will not be paid by disbursing agents but submitted to the Indian Office for settlement as claims. This rule does not apply, however, when an expense is payable from a special fund which is collected and expended without being deposited to the credit of the United States. In all such cases payment will be made by disbursing agents who, however, may submit the vouchers to the Comptroller General for advance decision as to legality if they desire to do so.

265. Every voucher forwarded to the Indian Office for payment as a claim must be accompanied by a statement of the reasons why it can not be paid by the disbursing agent, unless such reasons are obvious from the preceding paragraph. The fact that a disbursing agent has no applicable funds on hand or available balance in his allotment is not, of itself, sufficient as the incurring of indebtedness in excess of allotments, is forbidden except in emergencies involving the loss of life or property and allotted funds can be obtained upon requisition for payments by disbursing agents.

266. Disbursing agents can not escape responsibility for exceeding their allotments by sending vouchers to the Indian Office for settlement. This applies to expenses incurred in previous fiscal years as well as to those of current years.

267. Vouchers submitted for settlement as claims must be prepared with the same completeness as those for payment by disbursing agents and, in addition, the Indian Office must be advised, by the use of Form 5-647, of the fund from which payment is recommended and whether or not the disbursing agent has an available balance in his allotment.

268. One memorandum copy must always accompany the original claim to the Indian Office. Certificates of disbursing agents on vouchers submitted as claims, must be modified so as to show that the amounts claimed are due and unpaid.

269. When claims are settled in Washington, disbursing agents will be notified by the Indian Office in a manner which will show the amount charged to each appropriation or fund. Such notices will be used as journal vouchers for liquidation of encumbrances.

INDIVIDUAL MONEYS

270. Individual moneys are of five classes, viz., individual Indian moneys, special deposits, outstanding liabilities, interest on individual moneys, and invested in securities.

271. Individual Indian moneys.-Individual Indian moneys are funds the ownership of which has been determined to vest in individual Indians. Funds of the following general descriptions fall within this class:

(a) Proceeds of sales of real and personal property belonging to individual Indians.

(b) Rentals of Indian allotments, etc.

(c) Shares of per capita payments not paid direct.

(d) Voluntary deposits.

(e) Pupils' funds.

(f) Liberty loan bonds and similar securities.

(g) Interest credited to accounts.

(h) Collections from miscellaneous sources.

272. Special deposits.-Special deposits are funds carried temporarily in accounts of disbursing agents pending determination of their ownership, such as the following:

(a) Guaranty deposits of successful bidders.

(b) Payments on sales of Indian property, tribal and individual, awaiting approval.

(c) Payments on tribal and individual leases awaiting approval.

(d) Fees on sales, leases, etc., awaiting approval.

(e) Right of way damages across tribal and allotted lands.

(f) Contributed funds.

(g) Funds whose identity is unknown.

(h) Other funds of undetermined ownership.

273. Outstanding liabilities.-This represents the amounts of checks which have been delivered to payees and have remained outstanding and unpaid for more than two full fiscal years. 274. Interest on individual moneys.--Interest credited by bonded depositories on funds to the official credit of disbursing officers, and otherwise paid or credited as interest on judgments or interest on Liberty bonds, will be recorded under this caption.

275. Invested in securities.-See paragraphs 426 to 429.

276. Collections. For each collection of individual money, an official receipt must be issued to the payer and such collections must be posted daily to the cash book, appropriation ledger and individual ledgers.

277. Whenever by reason of incompetency, death, etc., of payees, shares of per capita payments or other trust funds are to be credited to the individual accounts of Indians instead of being paid to them direct, the total amount of such shares as shown on the roll will be withdrawn by issuing a check on the Treasurer of the United States in favor of the disbursing officer, who will then issue his official receipt to the Treasurer and attach thereto a schedule of the shares transferred.

278. All checks, drafts and warrants must be payable at par and any charges incident to collection of negotiable instruments, such as exchange, protest fees, etc., shall not be assessed against the Government but must be borne by the drawer of the instrument.

279. Deposits. All collections of individual moneys must be deposited daily to the official credit of disbursing officers either in local bonded depositories or with the Treasurer of the United States, provided that the Commissioner of Indian Affairs may upon application and for satisfactory reasons grant authority to make deposits of cash at less frequent intervals.

280. Disbursing officers will be held responsible for any loss sustained on account of noncompliance with this requirement or for depositing funds of this character in unauthorized depositories or to their personal credit.

281. Deposits shall be made directly in the local bank, unless it is necessary to place deposits in the Treasury or the exchange covers both individual moneys and sundry receipts. In the latter event, the exchange will be transmitted directly to the nearest Federal reserve bank or branch bank for collection and deposit to the official credit of the disbursing officer with the Treasurer of the United States and when notice of deposit is received, he will issue his check on the Treasurer payable to the local bank for the portion representing individual moneys.

282. Deposits will not be placed to the official credit of disbursing officers in the Treasury so long as local banking facilities are available. Whenever the bonded security is exceeded by the balance on deposit plus current receipts, the excess receipts will be deposited with the Treasurer of the United States until additional banking facilities are provided.

283. In no event will individual moneys be deposited to the credit of the United States unless instructions are expressly given to this effect. Accordingly, unexpended balances of individual moneys, unlike most public funds, must not be deposited to the credit of the United States at the close of the first quarter following the preceding fiscal year.

284. A cash reserve shall be maintained only when specific authority has been granted for this purpose and disbursing officers who retain an unauthorized balance of cash on hand do so at their peril.

285. As soon as deposits are completed, entries shall be made on the cash book and proper check register.

286. Disbursements.-Cash payments are prohibited, except as hereinafter provided, and all payments will be accomplished by the issuance of official checks.

287. Checks against accounts of minor or incompetent Indians may be drawn to the order of their parents or guardians and, when Indians have signed requests therefor on purchase orders (Form 5-367 f), checks against their accounts may be drawn to the order of and delivered to dealers in payment for goods furnished upon such orders. Checks will be drawn to the order of the Indians against whose accounts they are charged, except when otherwise authorized by these regulations or by letter from the Indian Office.

288. Checks payable to creditors of a restricted Indian may be issued after obtaining his consent without resort to undue influence.

289. Before a check is issued, it will be necessary to make a record of the disbursement on the individual ledger and check register.

290. While a balance remains to the official credit of a disbursing officer with the Treasurer of the United States, checks shall be issued against that account instead of drawing on balances carried in local depositories.

291. The purpose for which drawn and also the authority for the payment, where spaces are provided, will be noted on all checks.

292. Total disbursements of individual moneys will be posted daily by journal voucher reference to the appropriation ledger.

293. Checks against accounts of Indians indebted to the Government for heirship fees or sales of reimbursable property will be drawn to their order except when otherwise authorized. After such a check has been indorsed and the Indian's ledger account charged with the disbursement, an official receipt will be issued to the payer and the amount taken up in the disbursing officer's appropriation accounts as sundry receipts and deposited to the credit of the United States.

294. The aggregate of all disbursements from each class of individual moneys must be carried to the schedule of disbursements at the close of the month or other accounting period.

295. Transfers.-It has been seen that initial collections are brought into the accounts by the medium of official receipts and funds are withdrawn by the use of official checks. Occasions will arise, however, when it becomes necessary to make debit and credit entries on the records involving neither actual receipts nor disbursements.