ML20006E783
| ML20006E783 | |
| Person / Time | |
|---|---|
| Issue date: | 02/28/1990 |
| From: | David Williams NRC OFFICE OF THE INSPECTOR GENERAL (OIG) |
| To: | |
| References | |
| OIG-88A-24, NUDOCS 9002260349 | |
| Download: ML20006E783 (36) | |
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NUCLEAR REGULATORY COMMISSION x
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CFFICE OF THE INSPECTOR GENERAL 4
l'EMORANDUM FOR:
Chairman Carr i
Commissioner Roberts Commissioner Rogers i
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Commissioner Curtiss Commissioner Remick i
FROM:
David C, Williams inspector General Office of the inspector General
SUBJECT:
REVIEW OF NRC'S CASH MANAGEMENT PROGRAM The Office of the Inspector General (OIG) has completed a review of the U.S. Nuclear Regulatory Comission's (NRC) cash nianagement program. Our review focused principally on NRC's efforts to reduce cash holdings in imprest funds through better management of travel disbursements by implementation of the traveI credit card and travelers check programs to reduce cash travel advances, and the third party draft (money order) program to reduce cash travel reimbursements. However, we also evaluated NRC's payroll distribution through direct deposit by electronic fund transfer (DD/ EFT) because it, along with the travel credit card program, had been implemented by NRC as of June 30, 1989.
Our review was performed at NRC Headoucrters from October 1988 to June 1989 and was conducted in accordance with generally accepted Government auditing stendards.
RESULTS Our review showed that NRC had successfully implemented the DD/ EFT and travel credit card programs. However, the travel credit card program had not resulted in reductions in the cash levels of NRC's imprest funds and significant reductions in the cash levels will not occur until the travelers check and third party draft programs are implemented. We also found that NRC's cash requirements could be further reduced by increased utilization of U.S. Treasury checks to make travel advances, and limiting amounts which can be paia from imprest funds.
NRC also needs to reduce outstanding travel advance balances over 90 days old, including balances owed by former NRC employees.
RECOMMENDATIONS 4
Our report contains 13 recomendations to improve cash management in NRC.
In commenting on a draft of this report, the Executive Director for Operations (EDO) agreed to implement 11 of the recommendations, and stated what actions would be taken on each. The ED0's comments resolve these eleven recommendations.
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FEB I 1ppo The EDO did not agree to.implen;ent recommendation 5, in which we recommended disbursing trt. vel voucher reimbursements by U.S. Treasury check until NRC implements the third party draft program. The EDO stated that he prefers to continue cash payments of travel vouchers through the walk-up voucher examination service until the third party a
draft program goes into effect. The EDO believes this is the most timely and efficient method of payment.
The EDO also disagreed in pert with recommendation 7 in which we i
recommended that imprest fund payments be restricted to $100 or less.
The EDO agreed to restrict cash travel advances to $100 or less when the travelers check program is implemented in January 1990, but stated that cash payment of vouchers through the walk-up voucher examination service i
will continue until the third party draft program is implemented.
t On January 10, 1990, OIG representatives met with representatives of the Office of the Controller to-discuss the recommendations with which the EDO disagreed. The Controller stated that he prefers not to change the current process of cash payment of travel vouchers because the third party draft program is scheduled to go into effect in six months. We have accepted this position on the ccndition the third party draft program is implemented within six months. We are, however, leaving the two recommendations unresolved until the third party draft program is implemented.
hJW4r{ dwe David C. Williams Inspector General Office of the Inspector General
Attachment:
As stated cc w/ attachment:
J. Taylor EDO S. Chilk, SECY W. Parler, OGC R. Scroogins, OC L. Hiller, ICC J. Blaha, EDO 4
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REVIEW OF NRC'S CASH MANAGEMENT PROGRAM EXECUTIVE
SUMMARY
4 INTRODUCTION One of the first priorities of the President's Management Improver +nt Program under President Reagan's Reform 85 was to develop a comprehensive cash management system that emphasized the time value of the $2 trillion in the Government's annual cash flow. Two of the initiatives in the Government's cash management program were to increase Government payments by direct depcsit by electronic funds transfer (DD/ EFT), and reduce Government agencies' cash holdings which are used principally for officiel Government travel.
We identified five primary eash management disbursement initiatives currently being developed or implemented within NRC:
(1) payroll distribution through DD/ EFT, (2) travel crtdit carcs, (3) travelers checks for travel advances, (4) third party drafts (money orders) for reimbursing travelers, and (5) credit cards for small purchases.
Our review focused principally on NRC's efforts to reduce cash holdings in imprest funds through better management of travel disbursements by implementation of the tnvel credit card, travelers check, and third party draft initiatives.
However, we also evaluated NRC's payroll distribution through DD/ EFT because it, along with the travel credit card program, was one of two cash management initiatives implemented by NRC as of June 3D,1989.
Direct Deposit by Electronic Funds Transfer When the Federtl Government makes payments to employees, vendors, beneficiaries, or grantees by paper check, the transactions add up to a mountain of paper requiring labor-intensive processing.
DD/ EFT has reduced paper-based operating costs for Government payments by conveniently cno safely ocpositing money directly into the recipients' bank accounts.
DD/ EFT also saves moncy in that the average chcrge for an clectronic payment is three cents compared to the twenty-six cents production cost of a single paper check.
The focus of our review in this area was on how successfully NRC had implemented the DD/ EFT program for the distribution of NRC's payroll and what NRC was doing to increase participation in the program by NRC employees.
Travel Disbursements In 1981, an interagency study reported that executive agencies had almost $143 million in outstanding travel advances, of which $30 million had been outstanding ovtr 90 days. As a result, the Of fice of Management aue Budget (0MB) issued Bulletin No. 82-11 directing agencies to issue a travel advance only in conjunction with a travel authorization, and limit the amount of the advance to the minimum out-of-pocket expenses that an employee is expected to incur prior to reimbursement.
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2 On July 22, 1988, OMB issued Bulletin No. 88-17. " Limiting Travel Advances to Manage Cash More Effectively." The Bulletin noted that effective management of Federrl financibl resources requires that agencies:
(a) hold to a minimum the amounts of cash advanced for travel purposes, (b) follow-up with travelers to assure that vouchers are submitted within established deadlines, and (c) process travel vouchers in a timely manner to recover any excess amounts advanced. On September 30, 1988, NRC Manual Chapter Bulletin 1501-12 was issued to revise NRC travel advance guidelines to implement OMB Bulletin No.
88-17.
The focus of our review in this area was directed towards what NRC is doing to implenent OMB Bulletin No. 88-17. Our review was restricted to cash disbursement initiatives only since these initiatives have a direct impact on imprest fund operations.
Our review was performed at NRC Headquarters from October 1988 to June 1989 and was conducted in accordance with generally accepted Government auciting standards.
FlhDIM S Our review disclosed that: (a) the Division of Accounting and Finance (DAF),
Office of the Controller, has successfully implemented the DD/ EFT and credit card programs; however, the credit card program has not resulted in significant reductions in expenditures from imprest funds, and the travelers check and third party draft initictives require additional action before they can be put into effect; (b) DAF should be able to reduce the annual cash flow in the imprest funds by implementing additional cash management initiatives, including travelers cnecks, third party drafts, limiting cash payments from the imprest funds to $500, increased use of U.S. Treasury checks for travel voucher reimbursement, and increased utilization of U.S. Treasury checks for travel covances; cnd (c) DAF and agency managers need to reduce outstanding travel advance balances over 90 days old, including balances owed by former NRC employees.
CONCLUSION DAF has successfully implemented the DD/ EFT of salary checks; however, DAF should discontinue the delivery of salary checks to the offices of employees not participating in the DD/ EFT program as recomended by the Department of the Treasury. DAF nas also successf ully implemented the Diners Club charge card program, although NRC employees need to be reminded to keep their Diners Club charge card balances current.
NRC should continue efforts to implement l
both the travelers check and third party draft initiatives in NRC.
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In spite of NRC's successful implementation of the Diners Club charge card program NRC has not significantly reduced expenditures from the imprest I
funds. We believe with the implementation of the travelers check and third party draft programs and with changes in the processing of travel advances and travel claims, there is a potential to reduce cash expenditures from the imprest funds.
Specifically, we believe that NRC can eliminate almost all cash payments for travel advances through use of travelers checks ano most cash payments of travel vouchers through the use of U.S. Treasury checks and third party drafts for reimbursements with the resulting benefit of saving
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$21,600 in interest costs annutlly. Also. NRC managers should emphasize to their cmployecs the need to preplan travel so that U.S. Treasury checks can bc issued for advances rather than cash. DAF should change the current NRC j
travel regulations that allow rcutine payments from the imprest fund up to
$1,000 in violation of Treasury's regulations that only allow cash payments up to $500. We believe with the implementation of NRC's cash management initiatives, cash payments from the imprest funds can be restricteo to a 1
nominal amount, such as $100 or $150.
Outstanding travel advances are costing the government money. Besides the administrative ano computer costs to monitor advances, the governn4nt is incurring interest costs for funding travel advances. Assurance is needed that travel funds are properly documented in a timely manner and follow-up action is required for all outstanding travel balances over 90 days old, including balances owed by former NRC employees. Blanket travel advances should be reviewed annually and Office Directors and NRC employees should be reminded thst travel vouchers are to be submitted to DAF within five working days after completion of official travel.
RECOMMENDATIONS Our report contains 12 recommendations addressed to the Director, Division of Accounting and Finance and one recommendation addressed to the Executive Director for Operations. The recommendations are intended to improve the cash management progtam in NRC and to recover outstanding travel advances in a timely manner.
AGENCY COMMENTS In his memorandum uf December 19, 1989, the Executive Director for Operations (EDO) indicated the acticns that would be taken on the recommcndations contained in this report. A copy of the ED0's memorandum is in Appendit J U to this report.
The ED0 disagreed with Recommendation 5 in which the OlG recommended that the agency " Disburse NRC travel voucher reimbursement payments by U.S. Treasury i
check until the Third Party Draft program goes into effect." The EDO stated l
that the cash payment of travel vouchers through the walk-up voucher examination would continue "...because immediate reimbursement of travel expenses is the most timely and efficient method of payment." On January 10, l
1990, 01G representatives met with revesentatives from the Office of the l
Controller and EDO staff to discuss the ED0's response to Recommendation 5.
The Controller explained that because the Third Party Draft program is scheduled to go into effect in six months, they prefer not to change their l
current process of cash payment of travel vouchers. We accept the Controller's position on the condition that the agency does, in fact, implement the Third Party Draft program within six months. We are leaving Recommendation 5 unresolved until the Third Party Draft program is implemented.
The ED0 disagreed in part with Recommendation 7 in which the OIG recommended that NRC restrict imprest fund payments for travel and other purposes to $100 or less. The ED0 agreed to implement the recommendations for travel advances when the Travelers Check program goes into effect in January 1990.
The EDO stated that cash payments of travel vouchers in excess of $100 would continuc
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until th(; Third Party Draft program is implemented at i:RC. As with Recommendation 5 above, we.have accepted the ED0's concent on tht; condition i
the Third. Party Draft program is implemented within six months. We are else leaving Recommendation 7 unresolved.
l The EDO agreed to implement the remaining 11 reconmendations. We modified the final report to reflect a revision in interest savings associated with a i'
reduction in cash payments from NRC imprest funds.
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INTRODUCTION 1
BACKGROUND 1
8 SCOPE OF REVIEll 2
' FINDINGS 3
CASH MANAGEMENT DISBURSEMENT INITIATIVES 3
Peyroll Distribution 4
Travel Charge Cards 5
Travelers Checks 6
Third Party Drafts 8
Conclusion 9
Recometndations 9
i REDUCTION IN IMPREST FUNDS 10 Travel Payments 11 Processing Travel Claims 12 Processing Travel Advances 14 Limit On Payments From The Imprest Funds 16 Conclusion 16 Recommendations 17 OUTSTANDING TRAVEL ADVANCES OVER 90 DAYS OLD 17 v.
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Conclusion 20 l
Recommendations 20 AGENCY COMMENTS 20
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APPENDICES-e~. APPENDIX I
SUMMARY
OF': IMPREST FUND CASH 22!
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' DISBURSEMENT $'IN CY.1988 AND 1989
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BY. QUARTER tf 9
APPENDIX II:- :
SUMMARY
OF MONTHLY CASH; REIMBURSEMENTS 24
- NP.C'S' IMPREST FUNDS FOR FYs'1986 -
1987, 1968. AND 1989
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- APPENDIX III. - MEMORANDUM TO DWILLI AMS FR0t1 JTAYLOR 26 DATED DECEMBER 19, 1989 h
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REVIEW OF NRC'S CASH MANAGEMENT PROGRAM INTRODUCTION The Office cf the Inspector Genercl (OIG) has completed a review of the Nuclear Rtgulatory Commission's (NRC) cash management program.
Imprest funos in the regional offices and at Headquarters total more than $300,000, and the Department of the Treasury (Treasury) has encouraged NRC to reduce its cash holdings in imprest funds. Our overall objective was to evaluate (1) the effect of NRC's cash management policies on the level of funds needed for the imprest funds, and (2) actions teken to reduce the level of funds on hano.
We also attempted to id0ntify additional actions NRC coulo take to reduce cash holdings in the imprest funds. This area has been targeted by the President's Council on Integrity and Efficiency (PCIE) to prevent fraud, waste and misman6gement. We also evaluateo NRC's implementation of the cash management initiative of distributing employees' salary through direct deposit by electronic funds transfer to employees' bank accounts.
BACKGROUND In 1981, en interagency study reported that executive agencies had almost $143 million in outstanding trevel advances, of which $30 million had been out-standing over 90 days. As a result, the Office of Management and Budget (OMB) issued Bulletin No. 82-11 directing agencies to issue a travel advance only in conjunction with a travel authorization, and limit the amount of the advance to the minimum out-of-pocket expenses that an employee was expected to incur prior to reimbursement.
In OMB Bulletin No. 83-6, agencies were required to reduce outstanding travel advance balances as part of their cash management reforms.
As a result of these requirements, OMB noted several agencies had successfully implerrented internal prlicies ano procedures to reduce their travel advance balances.
The General Services Administration (GSA) assisted in this effort by contracting with a financial services company to provide agencies with i
travel charge cards. Agency employees can use these charge cards to reduce their cash needs by charging many of their travel expenses.
In addition.
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agencies participating in the contractor-provided travelers check program may issue advances to employees in travelers checks insteac of cash or U.S.
Treasury checks.
On July 22, 1986, OMB issued Bulletin No. 88-17 " Limiting Travel Advances to Manage Cash More Effectively," to the Heads of Executive Departments and l
Establishments. The purpose of the Bulletin was to provide guidelines to l-control travel advances and processing of travel vouchers to minimize the amounts of cash advanced, without imposing a personal finencial burden on traveling employees.
i The Bulletin noted that effective management of Federal financial resources requires that agencies:
(a) hold to a minimum the amounts of cash advanced for travel purposes, (b) follow-up with travelers to assure that vouchers are submitted within established deadlines, and (c) process travel vouchers in a timely manner to recover any excess amounts cdvanced. On September 30, 1988, d
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RRC Manual Bulletin 1501-12 was issued to revise NRC travel tdvance guidelines to implement OMB Bulletin No. 60-17.
Acccrding to ths; 1967 Joint Financial Management Improvement Program Report on Financial Management Improvements, agencies have made significant progress in improving the management of Federal dollars and saving millions through reduced interest expense. Agencies have been performing cash management reviews, using collection and credit agencies, expanding programs for the electronic transfer and direct deposit of fur.ds, and changing the procedures and systems to improve thc timeliness of payments and receipts from accounts receivable.
The Federal Government's annual combined cash flow of collections and dis-bursements is in excess of $2 trillion.
Improvements to the management and handling of these financial resources offer a significtnt opportunity for savings. Cash management improvements include both process changes, such as the use of lockboxes and credit cards and the proper timing of payments, and technological changes, such as the electronic transfer of funds.
The Department of the Treasury has mboe strides in centralizing and analyzing data on the Government's cash flow.
Fiscal Year 1987 interest savings were in excess of $1.1 billicn as a result of cash management improvements.
SCOPE OF REVIEW In our initial conversations with officials and employees in the Division of Accounting and Finance (DAF), Office of the Controller, in October 1988, we identified five primary cash management disbursemcht initiatives currently being developed or implemented within NRC: (1) payroll distribution through electronic fund transfer / direct deposit (DD/ EFT), (2) travel credit ctrds, (3) travelers checks. (4) third party drafts, and (5) credit cards for small purchases. Our review was limited to the first four initiatives.
The travel credit caro and payroll distribution initiatives were the only cash management disbursement initiatives implemented within NRC as of June 30, 1989.
In the area of payroll distribution through DD/ EFT our review was directed i
j toward the success of NRC's Division of Accounting and Finance, Office of the Controller, in implementing that cash management initiative and the steps taken to increase the number of employees participating in the program.
In the area of travel, the focus of our review was directed towards what NRC is doing to implement OMB Bulletin No. 88-17. Our review was restricted to cash disbursement initiatives only since these initiatives have a direct impact on imprest fund operations. Debt collection and prompt payment of debts will be covered in a separate audit. Specifically, we reviewed advances provided to travelers and reimbursement of travel claims because these are the largest disbursements from the imprest funds. During our review, we contacted several other Federal agencies, including the Departments of Treasury, Commerce. Agriculture, and Interior, the Environmental Protection Agency.
Office of Management and Budget, Federal Aviation Administration, and U.S.
l' Coast Guard, to discuss various aspects of their cash management initiativos.
I We also reviewed NRC's implementation of the Diners Club charge card program.
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3 Our review was performed at NRC Headquarters from October 1988 tc June 19E0
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and was conducted in eccordance with generally accepted Government auditing standards. We interviewed officials and employees in DAF regarding imprest fund operations and cash management initiatives. We reviewed and analyzed i
documentation on cash payments made through the imprest funds to determine l
whether other n690tiable instruments could be used in lieu of cash. Our review did not include a review of the controls over tbt use of travel funds, the cesh management program's internal control system or the initiatives en the use of credit cards for small purchases and vendor express payment system.
FINDINGS I
Our review disclosed that:
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DAF has successfully implemented the DD/ EFT and creoit card programs; I
although the credit card program has not resulted in significhnt reductions in expenditures from imprest funds.
o DAF should be able to reduce the annual cash flow in the imprest funds by implementing additional cash management initiatives, including:
(1) travelers checks.
(?) third party drafts, i
(3) limiting cash payments from the imprest funds to $500 (4) increased use of U.S. Treasury checks for travel voucher reimbursement, and (5) increased utilization of U.S. Trcasury checks for travel advances.
o DAF and agency managers need to reduce outstanding travel advance baltnces that are over 90 days old, including balances owed by former NRC employees.
Each of these areas is discussed in detail in the following sections of this report.
CASH MANAGEMENT DISBURSEMENT INITIATIVES We reviewed fuur cash management disbursement initiatives that are currently being developed or implemented within NRC: (1) payroll distribution through a
DD/ EFT, (2) travel charge cards, (3) travelers checks, and (4) third party drafts. We found that NRC has successfully implemented the payroll dis-l
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tribution and travel charge cara initiatives, although the charge card program r
has not resulted in significant reductions in expenditures from imprest funds.
The travelers check and third party draft initiatives requirc additional action before they can be put into Effect.
4 Payroll Distribution One of the first priorities of the President's Management Improvement Program wa:; to develop a comprehensive cash management system that emphasizeo the time value of the $2 trillion in the Government's annual cash flow. When the Federal Government makes payments to employees, vendors, beneficiaries, or grantees by paper check, the transactions add up to a mountain of paper requiring labor-intensive processing.
Direct deposit by electronic funds transfer (DD/ EFT) has dramatically reduced paper-based operating costs for these Government payments by conveniently and safely depositing the money directly into the recipients' bank accounts. The average charge for an electronic payment is just 3 cents and compares favor-ably to the 26 cents production cost of a single paper check.
Federal employees are choosing to be paid electronically in significant and increasing numbers, growing from 55 percent in 1985 to 69 percent in 1987. A goal was set by Treasury to increase the use of DD/ EFT to 70 percent of Federal salaries and 6110tments in 1988 and to 80 percent in 1989.
Within NRC, DAF has successfully promoted DD/ EFT.
In the first quarter of FY 1987, 2,656 employees received their salary by DD/ EFT. This represented over V6 percent of NRC employees. At the end of the fourth quarter of FY 1988, 2,819 employees or over 84 percent received their salary payments by DD/ EFT.
These percentages were all well over Treasury's pocls. According to DAF calculations, the use of DD/ EFT by NRC employees has resulted in cost savings to the Governncnt of over $96,000 in TY 1987 and $99,000 in FY 1988.
Treasury's 1986 Cash Flow Review Summary for NRC on Salary and Related Pay-ments, stated that:
80 percent of employees participated in DD/ EFT, which is an acceptable rate; however, NRC should consider discontinuing delivery of checks to the office for the 16 percent of employees not using DD/ EFT or receiving checks at home. The conversion of this 16 percent (560 of 3500 employ-ees) to DD/ EFT would result in annual savings of $16,000.
In an FY 1988 cash management review of NRC's cash management practices, Treasury's Financial Management Service (FMS) reconnended that NRC discontinut office delivery of sblary checks. NRC's response to Treasury's recommendation was that "less than 9% of the employees have their salary checks delivered in the office. Until Treasury makes this a mandatory reconnendation, the agency will continue this service."
For the pay period ending June 17, 1989, 2,801 salary checks were direct deposited (85 percent), 207 salary checks were mailed to the employees' homes (6 percent), and 282 salary checks were distributed in the office (9 percent).
f, If all 489 employees switched over to DD/ EFT, the cost savings would amount to almost $14,000 (489 * $1.10 (total cost per check for production and processing)
- 26 pay periods) per year. The calculation was based on Treasury's formula for determining cost savings using DD/ EFT.
The Director, DAF, told us that the Payroll Unit issues periodic notices sent from Treasury to those employees who have not signed up for DD/ EFT. Although the percentage of employees participating in DD/ EFT has increased, the increase is from employees who had their checks mailed to their homes. As a
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i result, the percentage of employees whose pay checks are oelivered in the office has not decreased. The process for dtlivering checks in the office is j
time consuming.
The Director, DAF, told us the process for distributir.g payroll checks in the office includes picking up checks from Treasury, sorting checks by time and attendance (T&A) units, mailing checks to regions for distribution, ssfeguarding checks until the distribution date, distributing i
checks to T&A units, and distributing checks in T&A units to employees.
O!G agrees with Treasury's recommendation that distribution of pay checks it, the office should be ended. DAF should require all payroll checks to either be direct deposited via electronic funds +ransfer or mailed to the employee's home, office or another location designats: by the employee.
Travel Charoe Cards Credit cards have been used by f requent travelers in the Federal Government since 1983 to pay for official travel. Under a contract with GSA, Diners Club charge cards are issued to individuals identified by their agencies as frequent travelers who could use a card to pay their travel expenses. The charge card avoids the need to issue large cash advances for travel to these employees.
The management of Federal funds spent on trasel is further enhanced by the Government Travel System (GTS) which consolidates bills for commen carriet travel. An agency contracting with Diners Club for the service will purchase tickets through a travel' agent by charging them to its GTS account. The agency receives a monthly statement along with supporting management information for all employee travel by air, rail, or bus. GTS reduces the number of vencor payments, incrcases intercst savings, reduces administrative costs, and provides expense data that can be used to negotiate discounts ano contract fares.
NRC's regulations implementing the Government Travel Charge Card Program are in NRC Manual Chapter (MC) 1501 Ptrt II, Annex B.
The program permitted the use of charge caros by NRC employees while on official travel. On July 22, 1988, OMB issueo Eulletin No. 88-17, "1.imiting Travel Advances to Manage Cash More Effectively." The Bulletin stated that " agencies must offer Government contractor-issued travel charge cards to all of their employees who are expected to travel at least twice a year (frequent travelers) and must process the application of any employee who requests a card and is authorized to travel."
On September 30, 1988, the Director, DAF, issued a memorandum to all NRC employees entitled "Dinets Club Charge Card Application Package." The Direc-tor noted that GSA had contracted with Citicorp Diners Club, Inc., for the issuance and maintenance v charge cards to be used by Government employees to cover transportation, subs,stence and other allowable expenses.
Charge cards issued under this program are to be used solely for expenses incurred for officially authorized Government travel. The employee is billed directly by Diners Club and is personally responsible for submitting full payment directly l
to Diners Club.
Under this program, the Diners Club charge card is issued without an annual l
fee and without interest and late payment fees. The card affords financial i.
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i flexibility and convenienct while traveling on official Government business, d
and f rees up the employee's own individuel lihe of credit if, in the put, the person used thuir own personal chargc cards on official travel.
Diners Club allows travelers a maximum of 25 days from their statement billing
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date to pay for the charges incurred during a trip. This allows an employee an average " float" time of 45-50 days from the trip date before actual payment j
i of the charges is cue.
Employees are to subnnt travel vouchers as usual, and i
l under normal circumstances vouchers will be processed before payment is due on the employee's Diners Club charge card.
Our review indicated that the Diners Club Charge Card program has been suc-cessfully implemented within NRC.
From February 1987 to September 1988 Diners Club charge caros had been issued to more than 450 NRC employecs. As of October 31, 1988, ovcr 830 NRC Headquarters and regional employees had been issued the Diners Club charge card, and as of April 1989, over 1,430 employees had been issued 6 Diners Club charge card, a 218 percent increast since September 1988.
From our analysis of the September 1988 Diners Club reports, there does not appear to be a problem with unof ficial us69e of the Govcrnment travel charge card by hRC employees. Howevtr, we did identify a potential problem with credit card payments by some NRC employees. As of October 17, 1988, 41 NRC employees were at least 30 days delincuent in paying their Government travel charge b61ances. The delinquent balances totaled approximately $15,400. As of June 17, 1989, 137 NRC employees had delinquent balances totaling over
$56,000.
We believe that DAF needs to remind en.pF ees of their responsibilities to 3
keep their charge card balances current. The Director, DAF, agreed that a notice could be sent to NRC employees on the need to maintain travel accounts current.
Travelers Checks On September 9, 1988, GSA awarded a contract (GS-00F-95033) to Citicorp Services Inc. (Citicorp) for the issuance of travelers checks to Government agencies. The Citicorp Travelers Check Program provides the following primary benefits for participating agencies:
- reduction of cash balances in imprest funds.
- elimination of long outstanding travel advances (when combined with the
-Diners Club charge card).
- ready availability of travel related funds in lieu of a U.S. Treasury check.
- complete protection of travel related funds against loss, theft, k.
disappearance and destruction.
- worldwide refund service and agency refunding capability.
- worldwide acceptability at airlines, hotels / motels, restaurants, shops, etc.
- availability of management information covering sales / inventories.
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The cott of the checks is 0.1 percent of the total amount of the checks issuto, (e.g., $.10 per $100 issued).
The fee is paic by NRC to Citicorp at the time of settlement.
Payment may be made to Citicorp by one of the following methods:
- Weekly Federal Wire Transfer
- Daily Automated Clearing House (ACH) Credit or Debit l
- Next Day. Treasury Check i
Citicorp offered their Travelers Check Program to NRC on October 4, 1968.
For installation of this service at hRC, Citicorp required the completion of a
" Trust Agreement", appropriate charge and remittance schedule, an estimate of the total projected annual sales, and a decision whether NRC wanted a one month or two months supply of Travelers Checks in inventory.
Citicorp would then proceed to establish a Travelers Check account with delivery of checks and related supplies within two to three weeks. Citicorp would train NRC staff on the Travelcrs Check program at a time mutually agreed upon.
NRC informed GSA on October 27, 1988, that the agency was interested in joining the Trovelers Check Program es a cash management initiative effective December 1, 1980, noting that current annual cash travel advance p6yments exceed $4,750,000. On November 25, 1988, the. Director DAF, sent a copy of the proposed " Trust Agreement" to the Director, Division of Contracts and Property Management (DCPM), requesting the Director, DCPM, to review thf.
agreement.
Implementation of the " Trust Agreement" was initially anticipated 4
to take place by January ;, 1989. The Director, DAF, indicated that the service charge should not exceed $3,500 for FY 1989.
During its review, NRC revised the standard Trust Agreement issued by i
Citicorp. On February 13, 1989. Citicorp accepted most of NRC's changes either intact or with minor modifications and/or revisions.
However, Citicorp did not agree to delett entire paragraphs on the right of Citicorp to terminate the Trust Agreement immediately if the agency fails to remit proceeds from disbursement as required, and the need for NRC to treat travelcrs check information confidentially. Discussions were held concerning the Trust Agreement with a final NRC position provided to DCPM for referral to Citicorp. The Director, DAF. stated a tentative timeframe of November 1989 had been targeted for the implementation of the travelers check initiativt at NRC. This was conditional on having a Trust Agreement signed and a policy for administering the new initiative developed.
In adoition to developing procedures for disbursing, accounting for and safeguarding travelers checks by the Imprest Fund cashiers, a threshold for issuing cash and/or travelers checks needs to be developed. Travelers checks are packaged in various denominations with the minimal package containing five
$20 travelers checks. The Director, DAF, stated that $100 is the least amount that can be issued in travelers checks. Oraf t guidelines have been developed but additional information requested from Citicorp is pending.
The Director, DAF, also noted that the agency's policy change from issuing cash to issuing travelers checks may be considered a union issue. Any change in the way NRC does business that will affect NRC employees is presented to the union.
If DAF has to go to the union to implement this cash management
8 e
g initiative, the offective date for introducing travelers checks in NRC will be 1
-delayed. A follow-up 04cussior. with the Chief, Labor Relations (OP/LR),
Office of-Personnel, on September 19, 1989, indicated that the travelers check initiative has been referred to OP for resolution and should be resolved in a matter of a few weeks. An employee working on the travelers check initiative estimated that DAF could reduce imprest fund levels by 33% to 40% with the introduction of travelers checks.
n On January 10, 1990, the Controller advised us that the travelers check program would be imolemented at NRC Headquarters in January 1990.
Third Party Drafts Third party drafts (money orders) are an acceptable alternative payment
' mechanism for imprest fund transactions. The third party draft system offers NRC improved internal management controls and provides an ef fective cash management method for reducing the outstanding imprest fund belances currently required by NRC.
.The third party payment system requires a contractor to:
. provide each imprest fund cashier, or other agency-approved official, with a supply of payment instruments drawn on the contractor's account;
. process the payment instruntnts as they are presented for payment;
. provide the agency automated or paper listings of the cleared
-instruments (those paid by the contractor's bank) for reimbursement by the agency; and
. provide the agency.with management and accounting information captured from the payment instruments.
According to the Treasury Financial Manual (TFM), Section 3040.70b, "Each agency may establish the maximum amount from which the third party drafts may be issued, however, the face value of each draft may not exceed $1,000, and this limitation must be printed on the face of the draft. Third party drafts are not to be used as a substitute for payments normally made through a Treasury Financial Center."
On September 29, 1988, the Director, DAF, requesteo Treasury's Financial Management Service (FMS) to approve NRC's proposal to implement the thiro party. draft systen, and to grant NRC authority to exceed the $1,000 limitation for a single transaction in an emergency situation by issuing more than onc draft. On October 18, 1988, Treasury's Washington Financial Center approved
(,
the basic proposal to. utilize the third party draft system for imprest fund
/. '
transactions. Treasury's Kansas City Financial Center responded to NRC's request to exceed the $1,000 limitation by stating that Treasury "will author-ize the use of more than one draft in an emeroency situation, recognizing NRC's desire to eliminate cash transactions." However, Treasury would not approve the waiver on a routine basis noting that "the limit of $1,000.00 per transaction is not to be exceeded."
'N
~
c w
m,
f.F
-9 it As of June 1989, NRC'was still accepting bios and evaluating two currtnt proposals.
In addition Treasury has been contacted for revision to the-standard wording and provisions in the third party draft payment system's contract..The Director DAF, has deferred the_ implementation of_a thira party draft system until'after the Travelers Check initiative has been introduced to.
.the Imprest Fund Cashiers. After monitoring the travelers check initiativt and determining its effectiveness, a target date will be set for the implementation of a third party draf t payment system in NRC. An employee in DAF estimated that DAF could reduce imprest fund levels by 33'l to 40% with the-introduction of third party drafts.
On January 10, 1990, the Controller advised us the third party draft program
~
was scheduled to be implemented in NRC within six months.
Conclusion DAF has successfully implemented the DD/ EFT of-salary checks. However, the l
delivery of salary checks to the small number of employees who receive their checks in the office is expensive and D should comply with Treasury's l
recommendation and eliminate this serviu. The Diners Club charge card.
program has also been successfully impinented by DAF at NRC althcugh NRC l
employees need to be reminded to keep tneir Diners Club charge card balanccs L
current.-
I L
l NRC should continue efforts to implement both the travelers check and third i"
party draf t initihtives-in NRC.
However, the Director, DAF, should ensure l
that these two initiatives are used effectively to eliminato cash payments in I
the imprest funds' and to reduce imprest fund levels.
i Recommendations We recommend that the Directur, DAF:
1.
Stop the delivery of pay checks to employees in the office by requiring bli employees to have pay checks DD/ EFT or mhiled to their home or i
office.
2.
Send an advisory to all NRC employees reminding them of their responsibilities to keep their Government charge card balances current l-and the consequences if they do not.
3.
Resolve any outstanding issues with Citicorp so the Travelers Check program can be implemented at NRC expeditiously.
4.
Expedite development of guidelines for the use of travelers checks within NRC to avoid delays in implementing the program after agreement is reached with Citicorp. Begin developing guidelines for use of the third party draft initiative so that it can be implemented as soon as possible.
These guidelines should ensure that third party drafts are not used as a substitute for payments that can be routinely /normally processed through a Treasury Financial Center.
t 10 g
.,PJOUCTIONINIMPRESTFUNDS Wi believe that the current-imprest fund levels r,re too large to effectively manage and control cash in NRC.
Imprest fund levels have sttadily risu. with i
levels as of June 1989 ranging from $30,000 in Region 5 to $100,000 in Headquarters. The following table shows the changes in imprest fund levels between January 1988 and June 1989.
IMPRESTFUNDCASHACCOUNTABILITYCURRENTLEVELS(ASOF) 4 i
LOCATION 1/88 7/88 9/88 1/89 6/89 OWFN
$ 05,000
$ 65,000
$ 80,000
$ 80,000
$ 80,000
[
MNBB
$ 40,000
$ 30,000
$ 20,000
$ 20.000
$ 70,000 H0
$105,000
$ 95,000
$100,000
$100,000
$100,000 i
REG I
$ 57,000
$ 57,000
$ 60,000
$ 60,000
$ 63,000 l-REG 11
$ 60,000
! 60,000
$ 60,000
$ 60,000
! 60,000 REG !!!
! 46,000
$ 48,000
$ 48,000
$ 48,000
$ 48,000 l
REG IV
.$ 40,000
$ 40,000
$ 40,000
$ 40,000 5 40,000 REG V
$ 26,000
$ 30,000
$ 30,000
$ 30,000
$ 30,000
(
l TOTAL
$336,000
$330,000
$338,000
$338,000
$341,000 Since implementation of NRC MC Bulletin 1501-12 on hovember 1, 1988, the total cash level for all imprest funds in NRC has risen from $338,000 to $341,000 1
as of June 1989, even though the intent of OMB Bulletin No. 88-17 was to reduce cash holdings. Our review noted a 52 percent increcsc in annual cash L
expenditures from NRC's imprest funds from $3.7 million in FY 1986 to an l
estimated $5.7 million in FY 1989 (see Appendix 11 for details).
Effective implementation of the charge card, travelers check, and third party draft programs, oiscussed in the previous section, should reducc the amount of cash NRC needs to have available in its imprest funds. However, as our analysis will show, the charge card program, the only initiative implemented 50 far, has not reduced the cash expenditures from the imprest funds. We believe NRC should be able to reduce imprest fund levels by: (a) holding to a minimum the amounts of cash advanced for travel purposes. (b) following up with travelers to assure that vouchers are submitted within established deadlines, and (c) processing travel vouchers in a timely manner to recover any excess amounts advanced.
We requested from Treasury the cost associated with financing a Government imprest fund at current market rates. Treasury's FMS in Washington, DC, stated that "A $1 million annual reduction in both NRC's imprest and travel funds held (achieved by using both Treasury assisted mechanisms and improved controls) would reduce Government interest costs by $70,000 per year at the
- (
11 current cost of funds." In a follow up conversation with Tretsury to retiro.
the interest savings associated with a reduction in cash payments from the imprest fund, we were told that "each_$1 million reduction in cash peyments would reduce Government interest costs by $7,200." We believe that NRC can eliminate in excess of $3 million annually through various cash management initiatives identified in this report with the resulting benefit of saving
$21,600 in interest costs.
Travel ?ayn r.ts l
On July 22, 1986, OMB issued Bulletin No. 88-17. " Limiting Travel Advances to a
Marage Cash More Effectively." On September 30, 1988, NRC issued NRC Manual l
Cha3ter Bulletin 1501-12. "New Travel Advance Guidelines," with the objective i
of hinimizing "the amounts of cash advanced, without imposing a personal l
financial burdtn on traveling employees." NRC's implementing guidelines were effective for til travel commencing on or after November 1,1988. We reviewed
'j imprest fund expenditures for January 1988 (prior to NRC Bulletin 1501-12) and i
January 1989 (after NRC Bulletin 1501-12 became effective) to determine tho effect Bulletin 1501-12 had on imprest fund expenditures. As the following i
table shows, our review disclosed thht cash p6yments for travel advanccs i
decreased 26 percent from $317,761 in January 1988 to $235,624 in January 1989. However, cash payments for travel voucher reimbursements increasea i
substantially from $50,511 in January 1988 to $188,833 in January 1989, a 274 percent increase.
ANALYSIS OF CASH PAYMENTS FROM THE IMPREST FUNDS FOR TRAVEL ADVANCES / REIMBURSEMENTS IN JANUARY 1988 AND JANUARY 1989-i CHANGES BETWEEN ADVANCES (1/88)
ADVANCES (1/89) 1/88 AND 1/89 HQ/
N0. OF CASH N0. OF CASH-REGION PAYMENTS AMOUNT PAYMENTS AMOUNT AMOUNT PERCENT HQ 350
$95,621 414
$63,679
($31,942)
(33%)
1 202
$60,850 248
$45,900
($14,950)
(25%)
2 218
$66,090 266
$46,150
($19,940)
(30%)
3 159
$37,300 227
$39,970 2,670 7%
4 84
$25,400 136
$24,050
($1,350)
( 5%)
5 96
$32,500 95
$15,875
($16,625) 51%)~
llB
$317,761 1W6
$235,624 (582,137)
(c %
AVERAGE CASH ADVANCE AVERAGE CASH ADVANCE PAYMENT
$286.53 PAYMENT
$170.00
($116.53)
(41%)
- Calculations have been rounded to the nearest whole number.
Although the average cash travel advance payment decreased 41 percent from
$286.53 in January 1988 to $170.00 in January 1989, cash travel voucher reimbursements increased on the average of 124 percent from $78.92 in January 1988 to $176.64 in January 1989.
p s
,t i
12 y
CHANGES BETWEEN t;
RE1MBURSEMENTS-(1/88)
REIMBURSEMENTS (1/89) 1/88 AND 1/89 7
H0/
NO. OF-CASH NO. OF CASH REGION PAYMENTS AMOUNT PAYMENTS AMOUNT-AMOUNT PERCENT HQ 113
$12,697 270
$47,379-
$34,682 273%
- 1 121'
$ 7,047 224
$37,812
$30,765 437%
2 --
152
$13,289 226
$43,244
$29,955 225%
3 93
$ 6,252 163
$25,319
,$19,067 306%
4 109
$ 7,709 123
$21.096
$13.387 174%
o 5
52
$ 3,517 63
$13,983
$10,466 298%
TOTAL ED 550,511 TOR
$188,833
$138,322 YT4Y AVERAGE CASH AVERAGE CASH REIMBURSEMENT AEIMBURSEMENT PAYMENT = 578.92 PAYMENT = $176.64
$97.72 124%
Overall, total average cash outlays for travel (adycnces and reimbursements) in January 1989 was $346.64; only a five percent decrease from.the January 1988 total of $365.45.
L Based on our analysis of changes in the use of the imprest funds from January 1980-to January 1989, it appetrs that NRC has succeeded in reducing l
- expenditures for travel advances through the use of credit cards. Although there was a 25 percent increase in thc number of advances issued (1,386 vs.
1,069), NRC was able to reduce cash travel advances by over 580,000. However, because of substantially larger payments for travel reimbursement -- a
$138,000 increase between January 1988 and January 1989 -- the total expen-ditures from the imprest funds for employee travel increased.
It appears, L
therefore, that NRC's cash mana9ement initiative has succeeded only in chang -
l-
.ing the timing of payments rather than reducing the amount paid. We believe l-
.this indicates a need to change the travel voucher payment process in NRC.
I frocessing Travel Claims OMB Bulletin No. 88-17 specifies that " agencies must establish internal policies and procedures covering the submission and processing of travel vouchers such that those vouchers are paic within 25 working days after the L
end of each trip or 30-day travel period." NRC Manual Chapter 1501, paragraph 0340, states " Directors of Offices ensure that a travel voucher with appropriate remittance is administratively approved and submitted within five working days after completion of the trip or period of travel, or every 30 days if traveler is in continuous travel status."
i L.
As indicated in the tables below, in January 1989, NRC was able to process L
travel vouchers in an average 4.8 calendar days after submission which is well within the 25 working days required by OMB guidelines. The average number of days for NRC to process a travel voucher and issue a cash payment from the imprest fund from the date signed by the Approving Official decreased from 6.8 days in January 1988 to 4.8 days in January 1989. Further, our review noteo
- Calculations have been rounded to the nearest whole number.
in
-e/
..c 13 '-
that while the average number offdays an NRC eniployee took to submit a travel
' voucher from the date travel-ended to the date signed by the Approving 4
t Official decreased from 19.8 deys in January 1988 to 12.8 days in January
'1989; travel vouchers' were not bein9. submitted by travelers within five working days after. completion-of trips as requireo.
~
CHANGE IN AVERAGE NUMBER OF DAYS FOR EMPLOYEES TO SUBMIT VOUCHER JANUARY 1988 TO JANUARY _1989 TRIP END DATE T0-V0UCHER APPROVAL DATE CHANGE
-JAN. 1988 JAN. 1989 DAYS PERCENTAGE HQ-25.6' 10.8 (14.8)
(58) 1 48.4 20.8 (27.6)
(57) 2
'12.4 14.4 2.0 16 3
6.2 6.6
.4 6
4 21.8 20.5 (1.3)
(6)
L 5
9.5 10.0
.5 5
AVERAGE 19.8-12.8 (7.0)
(35)
CHANGE IN AVERAGE NUMBER OF DAYS FOR V0UCHER TO BE PAID AFTER SUBMITTAL
' JANUARY 1988 TO JANUARY 1989 V0UCHER APPROVAL DATE TO V0UCHER PAYMENT DATE CHANGE JAN. 1988 JAN.-1989 DAYS PERCENTAGE
.HQ 8.5 2.8 (5.7)
(67)
'l 18.0 11.2 (6.8)
(38) 2 2.7 2.5
(.2)
(7)~
3 3.8 4.9 1.1 29 4
6.4 8.1 1.7 27 L
5 4.6 3.0 (1.6)
(35)
AVERAGE 6.8 4.8 (2.0)
(29)
CHANGE IN AVERAGE NUMBER OF DAYS FOR V0UCHER TO BE PAID AFTER TRIP ENDS TRIP END DATE TO V0UCHER PAYMENT DATE CHANGE JAN. 1988 JAN. 1989 DAYS PERCENTAGE HQ 34.1 13.6 (20.5)
(61) 1 66.4 32.0 (34.4)
(52) 2 15.1 16.9 1.8 12 i
3 10.0 11.5 1.5 15 4
28.2 28.6
.4 2
5 14.1 13.0 (1.1)
(8)
AVERAGE 26.6 17.6 (9.0)
(34) n
- i w
14 As thelabove table shows, the average time reevired to process travel vouchers.
- dropped in Hecdquarters, Region I, and hegion V, and increased in Regions II, O
III, and. IV between January 1988 and January 1989. We believe the reductions in voucher processing times that took place can be attributed to two NRC initiatives -- credit cards'and walk-up voucher review and payment service.
With the implementation of OMB Bulletin No. 88-17, the amount of estimated travel expenses advanced to employees has been reduced, thereby providing employees an incentive to timely file travel vouchers because NRC owes them money, According'to NRC Manual Chapter Bulletin 1501-12, the walk-up voucher review and payment service "in Headquarters'or the regions cllows for immediate payment of any' amount due to the traveler, up to $1,000. Otherwise, a completed travel voucher is processed through the Trtvel Accounts Unit, OC/F0B, ana 6 U.S. Treasury check issued within four weeks after receipt." We believe NRC's cash payment of vouchers which have been exbmined in the walk-up voucher review service is not consistent with NRC's objective of reducing cash disbursements from the imprest funds and should be changed.
The cash payment of vouchers at the walk-up service simply defers cash outlays f rom shortly before to shortly after the employee completes a trip. As we have shown, NRC's policy of advancing only the estimated out of pocket expenses for frequent travelers and requiring f requent travelers to use charge cards to pay for hotel and rental car expenses has reduceo cash advances.
Because charge card bills do not have to be paid for 25 days after the billing date, sufficient time t.xists for employees to submit vouchers, and for NRC to review the vouchers and pay employees by check or third party draft before the credit card bills are due. This should substantially reduce the need for cash-expenditures from the imprest funds. We have estimated cash travel voucher payments for CY 1969 at $3.1 million.
If U.S. Tresury checks rather than cash were used to pay the vouchers, the Government could save an estimated $21,000 in interest costs annually.
Processing Travel Advances Our review of the January 1988 and January 1989 cash travel payments showed that NRC processed travel advances an average of about three days prior to the
-start of travel. We believe this is an effective management control to minimize the time cash advances are outstanding. However, we also found that thc short averL96 time between the date the trip was approved by management and the date the travel advance was required was not effective for cash management purposes because it did not allow enough time for a U.S. Treasury check to be issued. There were no substantial differences in the data between January 1988 and January 1989.
6 Y-m
4,
(
m 15 1
i.'
- =-
AVERAGE NUMBEP 0F DAYS TO PROCESS A CASH. TRAVEL ADVAhCE FROM APPROVAL ~DATE TO TRIP STARTLDATE JANUARY 19PA 1
ADVANCE DATE TO APPROVAL DATE/
APPROVAL DATE/-
HQ/
TRIP START DATE ADVANCE'DATE TRIP START DATE REGION.
(DAYS)-
(DAYS)
(DAYS)
~
8 s.
HQ:
3.6 6.1 9.7 i
.1 2.6 2.6 5.2 2
3.7 1.4 5.1 3'
3.7 3.2 6.9 4
3.7 2.4 6.1 5
2.6 5.3 7.9 AVERAGE-3.3 3.5 6.8 AVERAGE NUMBER OF DAYS TO PROCESS A CASH TRAVEL ADVANCE g
E FROM APPROVAL TO TRIP START DATE JANUARY 1989 ADVANCE DATE TO APPROVAL DATE/
APPROVAL DATE/
HQ/
TRIP START DATE.
ADVANCE DATE TRIP START DATE REGION (DAYS)
(DAYS)
(DAYS)
T HQ 3.3
-6.4 9.7' 1
2.8 3.5 6.3 l
2 3.5 1.3 4.8 f
L 3
2.6 4.3 6.9 L
4 3.5 4.2.
7.7 5
3.1 6.8 9.9
. AVERAGE 3.1 4.4 7.5 i
NRC Manual Chapter Bulletin 1501-12, New Travel Advance Guidelines, dated September 30, 1988 on " Payment of Travel Advances" states "Every reasonable i.
effort must be made to reoucst a travel advance in sufficient time to obtain a o
U.S.' Treasury check." The same section raised the 'fimit on cash payment for a travel advance from $750 to $1,000.
In the section on " Payment for Travel Vouchers," the limit on cash payment for " walk-up" travel vouchers was d
l incrt:ased from $750 to $1,000.
L' f
According to NRC Announcement 99, dated June 3, 1988, " Processing of Official L
' Travel Documents in the Administrative Services Center at OWFN," Travel Authorizations that are submitted to the Travel and Financial Services Unit'
'(TFSU) with less than a seven day lead time are considered as " emergency authori zati".,ns. " The lead time needed by DAF to issue a U.S. Treasury check l_
was 10 working or 15 calendar days for the Regions and 7 working or
~
10 calendar days for Headquarters before the trip start date. Cash advances are issued if trips are planncd after these time frames.
1
^
7,__
}
3 16 t'
Our review noted that a majority of the trips authorized identifying the purpose of travel were for routine inspections / investigations, planntd meetings, or training, We believe these routine trips could have been planned sufficiently in advance so that a U.S. Treasury check could have been issued j
f or advanced ~ travel funds.
An employee _in DAF told.us that he believed travel orders were being held in one region so that a travel advance would be issued in cash instead of a U.S.
Treasury check. The Director DAF, told us he was aware that some offices appeared to be holding travel authorizations so that a travel advance would be issued in cash _and stated that he was not in favor of this practice. The Director indicated c U.S. Treasury check could be issued if offices would do a better job planning travel. An employee in DAF estimated that 80% to 85%,
and possibly more, of all_ travel advances are issued in cash.
We believe that a substantial number of travel advances currently disbursed in cash could be issued by U.S. Treasury check with additional advanced planning, especially in the regions.
In addition, with the implementation of the travelers check initiative, additional cash reductions can be achieved by restricting cash payments from the imprest fund to a nominal amount, such as,
$100 or $150, in CY 1989, NRC will issue an estimated $2.8 million in cash travel advances. With improved travel planning, we believe a substantial portion of that $2.8 million could have been issued in U.S. Treasury checks rather than cLsh.
Limit On Payments From The Imprest Funds The TFM, Section 3040.20, specifies " payments from the imprest funds may be made when approved by a duly authorized officiel for various types of small purchases and travel payments - primtrily travel advances. However, routine payments must not exceed $500.
Permanent exceptions or waiver requests of r
this limit will be submitted in writing to the head of the agency or designee.
Any exception or waiver must be addressed specifically to a category of transactions and may not be an across-the-board increase. The head of the agency should also seek alternatives to providing other means to effect their purchases. Copies of these approvals must be retained for post review by Treasury officials or agency inspectors general."
Our review of cash payments made to NRC employees from all imprest funds
-disclosed that 37 travel advances (2.7 percent) and 35 travel reimbursements (3.3 perct.nt) issued in January 1989 from the imprest fund exceeded $500, including cash advances for over $1,000. Treasury regulations require that routine payments may not exceed $500 unless an exception or waiver is submitted in writing to the agency head or designee specifically addressing a category of transactions.
DAF was nnable to provide us with documentation waiving Treasury's requirements.
Conclusion In spite of HRC's successful implementation of the Diners Club charge card program, NRC has not significantly reduced expenditures from imprest funds.
We believe the implementation of the travelers check and third party drtft programs, coupled with changes in the processing of travel advances and travel claims, have the potential to reduce cash expenditures from the imprest funds.
4.
17' q
Specifically, we believe NRC can eliminate cash paymtnts of travel vouchers through use of U.S. Treasury checks and third party drafts. Also, NRC managers should emphasize to their empicyecs the neeo to preplan travel so that U.S. Treasury checks can be issued for travcl advances rather than cash.
Even in cases in which sufficient time is not available to issue U.5. Treasury checks, travelers checks can be used in lieu of cash. These changes have the potential to significantly reduce the amount of cash required in the imprest-1 funds.
DAF has exceeded Treasury's $500 limitation on routine payments from the imprest funds, although the numbcr of payments that exceeded $500 was small.
DAF should change the current NRC travel regulations to allow routine payments from the imprest fund only up to $500.
We believe that with the implementation of NRC's cash management initiatives, cash payments from the imprest funds can be restricted to a nominal amount, such as $100 or $150. NRC can achieve an annual reduction of $3 million in imprest fund expenditures through increased management of imprest fund-operations resulting in reduced Government interest costs of $21,600.
Recommendations We recommend that the Director, DAF:
l 5.
Disburse NRC travel voucher reimbursement payments by U.S. Treasury check l
until the third party draft program goes into effect.
6.
Revise NRC Manual Chapter 1501 restricting routine imprest fund payments i
to $500.
-7.
Restrict imprest fund payments to local travel vouchers, small purchase requisitions and, after the travelers check program goes into efft.ct.
l cash travel advances of $100 or less.
8.
Reduce imprest fund cash levels in both Headquarters and regional offices as appropriate following implementation of the travelers check, third party draft and voucher processing recommendations in this report.
We recommended that the EDO:
9.
Require Office Directors / Regional Administrators to improve planning of travel so that travel advances can be paio by U.S. Treasury check.
Manager's accomplishnents in this regard should be considered in the preparation of the management portion of performance appraisals.
OUTSTANDING TRAVEL ADVANCES OVER 90 DAYS OLD NRC Manual Chapter 1501, paragraph 0341 and o, state that:
o Directors of Offices ensure that traveltrs under their jurisdictions are fully informed of official travel rules and regulations;
IE I
o-Ensure that a travel voucher with appropriate remittance is administratively approved and submitted within five working days after completion of-the trip or period of travel, or every 30 days it trcveler is in continuous travel status.
According to NRC Manual Chapter 1501, paragraph 033a, b, and e-g, tht.
Director, DAF, approves the issuance of blanket travel authorizations;
.provices advice and guidance on matters relating to official travel and changt of official station; controls funds authorized for travel advances; authorizes official travel for all Heaoquarters employees; authorizes official travel for all NRC employees ano transportation of their imediate families and household goods in connection with changes of official station; and authorizes cdvances of funds for cxpenses incioental to temporary duty travel and change of official station.
OMB Bulletin No. 88-17, Paragraph 7e, specifies that " Agencies must have internal financial controls for assuring that: (1) travelers with outstanding travel advances are notified of any delinquencies in filing vouchers and repaying outstanding advance balances, and (2) travelers owed amounts by the agencies are promptly paid..These controls should include procedures for reviewing outstanding travel advances and unpaid travel vouchers prior to an employee's separation and settling all outstanding amounts."
Our evaluation of.the " Listing of Open Authorization More Than 0 Days Old" for hovember 30, 1988 and March 3, 1989 disclosed a 16 percent decrease in cut-standing travel advances from $1,617,588 to $1,360,002 as follows:
DATE REGULAR TRAVEL CHANGE OF STATION BLANKET TOTAL 11/30/68
$1,005,848
$555,760
$55,980
$1,617,588 3/3/89
$ 857.518
$462,908
$39,576
$1,360.002 REDUCTION 148,330
$ 92,852
$16,404
$ 257,586 PERCENT 15t 17%
30%
16%
We attribute this reduction to the issuance of NRC Manual Bulletin 1501-12 which limited advances to the estimated out-of-pocket expenses thht an
. employee is expected to incur for authorized travel purposes prior to reimbursement. NRC has defined "out-of-pocket" expenses as those expenses that cannot be charged to an employee's Government travel charge card and must therefore be paid using cash, personal chtck or travelers check. NRC has significantly reduced the amount of travel advances issued over the first six months of 1989 (see Appenoix I).
DAF provided us with a " Listing of Open Authoritations More Than 90 Days Old" as of March 15, 1989. By comparing this listing to the " Listing of Open Authorizations More Than 0 Days Old," we found that about 68 percent of the dollar value of advances issued (see below) were over 90 days old.
,ys
&~
c, OPEN'AUTH0PIZATIONS MORE THAN 90 DAYS OLD AS OF. MARCH 15, 1989 HEADQUARTERS REGIONS
-TOTALSJ
-BLANKET
$ 31,508
$ 8,868
_$ 40,376.
i CHANGE / STATION
$379,635
$ 41,132
$420,767 REGULAR ~
$ 317.666 :
$151,901-
$469,567
-1 i
TOTAL OPEN 90 DAYS
$728,809
$201,901
$930,710-
~
' TOTAL OPEN AUTHORIZATIONS'
$937,919
$422,083 11,360,002 PERCENT OF TOTAL 78%
48%
68%
l
- D0LLAR VALUE OF ADVAllCES As the above table :> hows, 78 percent of the total outstanding Headquerters travel advances were outstanding more than 90 days in contrast to only 48 percent in thc regions.
Further analysis of the " Listing of Open Authodzations More Than 90 Days Old" disclost.d that as of March 15,1989,$474,788(51 percent) of the outstanding 3
travel advances over 90 days old were held by only 255 present cno former tiRC employees. This included $404,476 in outstanding travel' advances by 106 present NRC employees that were over one_ year old and were more than $1,000 for each employee; $54,450 in outstanding travel advances'from 149~former NRC employees;- and. $15,862 in outstanding blanket travel advances from an s
adoitional 30 current employees over one year old.
On April 11', 1989, we provided the Director, DAF, a listing of current NRC employees with outstanding travel advances over $1,000 and at least one year old; former.NRC employees with outstanding advances; and current employees with blanket travel advances over one year old. The' Director stated that i
because.other areas had been given higher priority, he did not foresee-reviewing,the outstanding travel listings until sometime early next year. The Director-recognizes there are problems and is working to improve the quality of reports on outstanding travel advances.
j; There appears to be a need for a more concerted effort by Headquarters offi-
.cials to reduce the number of travel advances outstanding. This can be accomplished with more careful monitoring of travel reports by both the Director, DAF, and Directors of Offices. From discussions with personnel in DAF and several NRC employees and our own review of OIG travel data, we have b,
determined that the " Listing of Open Authorizations More Than 0 Days Old" contains inaccuracies.
The Chief. Employee Services Section, stated that the travel reports contain errors due to travel clerks occasionally transposing
~
authorization numbers, entering inaccurate information into IFMIS or entering data to the wrong category.
The problems with these reports are not new. A January 1988 OIA report, entitled " Review of the Controls Over the Use of Travel Funds," found that tht
" Listing of Open Authorizations More Than 0 Days Old" was considered of littic
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.s value by Office Directors'who complained thct the data was unclear al.d outdated.
Further,.DAF had not established follow-up procedures to assure that overdue actions were identified and appropriate actions taken on them.
Our review of outstancing travel advances disclosed that similar conditicrs existed as of June 1989. Besides the breakdown in controls over the.
accounting for NRC travel fund allocations by NRC employees, we believe the Government is incurring unnecessary interest costs.
For example, the $474,788 outstand _ing over one year, as discussed previously, costs the Government
$33,235 in interest on an annualized basis ($474,788/$1,000,000 * $70,000 interest per million per year).
Conclusion Outstancing travel advances are costing the Government money. Besides the administrative and computer costs to monitor advances, the Government is incurring interest costs for funding travel tavances. We believe DAF needs to assure that the use of travel funds is properly documented in a timely manntr.
-NRC management has allowed NRC employees to retain travel advances which have not been used or to delay'cccounting for the use.of travel funds as requin.d by regulations.
We believe that follow-up action is required for all outstanding travel balances over 90 days old incluaing balances Wed by former NRC employees.
Blanket travel advances should be reviewed annually and.0ffice Directors and NRC employees should be reminded that travel vouchers are to be submitted to DAF within five working dcys after completion of official travel.
Recommendations We recommend that the Director, DAF:
10.
Prepare and evaluate the " Listing of Open Authorizations More Than (90)
Days Old" quarterly for _ additional follow-up work.
11.
Review and issue new travel novance blankets on a fiscal year basis and recoup any outstanding advances from the previous travel blanket.
12.
Recoup outstanding travel advances-from former NRC employees identified on the " Listing of Open Authorizations" travel report.
- 13. Recoup travel advances from current NRC employees that are over 90 days old.
AGENCY COMMENTS In his memorandum of December 19, 1989, the Executive Director for Operations (EDO) indicated the actions that would be taken on the recommendations contained in this report. A copy of the ED0's response is in Appendix III to the report. The EDO disagreed with Recommendation 5 in which the OIG recommended that the agency " Disburse NRC travel voucher reimbursement payments by U.S. Treasury check until the third party draft program goes into effcct." The EDO stEted that the cash payment of travel vouchers through walk-up voucher examination would continue "...because immediate reimbursement of travel expenses is the most timely and efficient method of payment."
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21 On Jcnuary 10, 1990, OIG representatives met with representatives from the Of fice of the Controiler and EDO staff to discuss the ED0's responsc'to Recommendation 5.
The Centroller explained that because the third party draf t program is scheouled to 90 into effect in six months, they prefer not to
' change their current process of cash payment of travel vouchers. We accept the Controller's position on the conoition that the-agency does, in fact, implement the third party draft program within six months. We are leaving Recommendation 5 unresolved until the third party draft program is implemented.
The EDO disagreed in part with Recommendation 7 in which the OIG recommended that_NRC restrict imprest fund payments for travel and other purposes to $100' or less. 'The ED0 agreed to implement the recommendation for travel advances when the Travelers Check program goes'into effect in January 1990. The EDO stated that cash payments of travel vouchers in excess of $100 would continue-until the third party draft program is implenented at NRC. As with Recommendation 5 above, we have accepted the ED0's comment on the condition the third-party draft program is implemented within six months. We ere also leaving Recommenoation 7 unresolved.
The ED0 agreed to implemcnt the remaining 11 recommendations. We modifieo the final report to reflect a revision in interest savings associated with a reduction in cash payments.from NRC imprest funds.
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APPENDIX 1 Page 1 of 2
SUMMARY
OF IMPREST FUND CASH DISBURSEMENTS IN CY-1988 and 1989 BY QUARTER TRAVEL TRAVEL-LOCAL E
QUARTER MONTH ADVANCES PAYMENTS REQUISITIONS TRAVEL TOTAL 1988 First January $ 328,616 $ 44.631
$ 5,398
$ 1,986 $ 380,631 February $ 402,355 $ 81,279
! 10,022
$ 3,087 $ 496,743 March
$ 408,265 $ 97,853
$ 11,386
$ 5,419 $ 522,923 TOTAL 51139,236 5 223,763
$ 26,806 510,492 51400,297 PERCENTAGE 81%
16%
2%
1%
100%
1988 Secone April
$ 401,977 $ 84,635 S 11,974
$ 6,142 $ 504,728 hay
$ 431,304 $ 92,295
$ 15,230
$ 3,987 ! 542,816 June S 453,187 $ 100,404
$ 13,422
$ 4,122 $ 571,135 TOTAL
$1286,468 5 277,334 5 40,626 514.251 51618,679 PERCENTAGE 79%
17%
3%
1%
100%
1988 Third July
$ 370,659 $ 82,832
$ 10,148
$ 4,836 $ 468,475 August
$ 373,266 $ 87,592
$ 14,784
$ 4,361 $ 480,003 September $ 369,100 $ 89,556
-$ 20,593
$ 3,961 $ 483,210 TOTAL 51113,025 3 259,980 5 45,525 513,158 51431.688 PERCENTAGE 78%
18%
3%
.1%
100%
1988 Fourth October S 362,448 ! 81,620
$ 13,226
$.3,803 $ 461,097-November
-$ 225,097 $ 143,634
$ 11,647
$ 3,836 $ 584,214 December
$ 164,184
$ 209,378
$ 11,994
$ 3,792 $ 389,348 1
TOTAL ~
5 751,729 5 434.632 5 36,867-511,431 51234,659 1
PERCEN_TAGE 61%
21%
3%
1%
100%
1988 TOTAL
$4290,458 -51195,709
$149,824
$49,332 $5685,323 i.
PERCENTAGE 75%
21%
3%
1%
100%
1989 First January $ 235,061 $ 161,658
$ 8,253
$ 3,134 $ 408,106 L
February $ 229,797 $ 254,853
$ 13,742
$ 4,284 $ 502,676 March
$ 256,600 S 292,268
$ 12,994
$ 3,158 $ 565,020 p.
TOTAL 5 721,458 5 708,779 5 34,989 510,576 51475,802 PERCENTAGE 49%
48%
2%
1%
100%
i 1989 Second April
$ 221,615 $ 278,610
$ 12,435
$ 5,503 $ 518,163 May
$ 201,651 $ 282,794 1 17,813
$ 5.640 $ 507,898 June
$ 234,620 $ 279,294
$ 14,749
$ 5,452 $ 534,115 TOTAL 5 657,886 5 840,698 5 44,997 516,595 51560,176 PERCENTAGE 42%
54%
3%
1%
100%
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i 23-APPENDIX 1 Pa9e 2 of 2 1
TRAVEL TRAVEL LOCAL ADVANCE. PAYMENT REQUISITION TRAVEL TOTAL 1988'(FirstQuarter)
$1139,236 $ 223,763
$26,806
$10,492 51400,297 1989 (First Quarter)
$ 721,458 $ 708,779
$34,989
$10,576
$1475,802
)
Increase /(Decrease)'
5(417,778)5-485,016 I 8,183 5
84 5 75,505 j
-PERCENTAGE (37%)
217%-
31%
1%
5%
1988 (Second Quarter) $1286,468 $ 277,334-
$40,626
$14,251
$1618,679 1989(SecondQuarter)
$ 657,886 $ 840,698
$44,997
$16,595
$1560,176 4
Increase /(Decrease) 5(628,582) ! 563,364 5 4,371 5 2,344 5( 58,503) t
~ PERCENTAGE (49%)
203t 11%
16%
(4%)
1988 (First Half)
$2425.704 S 501,097
$67,432
$24,743
$3018,970 i
1989-(First Half) 11397,344 $1549,477
$79,986
$27,171
$3035,978 Increase /(Decrease)
(51046,360)51048,380 512.554 5 2,428 5
17,T612 PERCENTAGE (43%)
209%
19%
10%
1%
i NRC travel advance guidelines were revised on September 30, 1988 to implement OMB Bulletin No. 88-17, " Limiting Travel Advances to Manage Cash tiore Effectively," dated July 22, 1988. NRC's implementing guidelines became effective for all travel commencing on or after November 1, 1988. The new guidelines eliminated the current 80% limitation on travel advances and limited a travel advance to the estimated out-of-pocket expenses that an i
employee is expected to incur for authorized travel purposes prior to reim-bursement.
L Although the intended effect of both NRC Bulletin 1501-12 and OMB Bulletin No.
88-17 were to liimit travel advances and manage cash more effectively, the impact of NRC's implementation was to shift the placement of cash travel funds i
from travel advances to travel reimbursements. There has been a direct i
correlation in the effectiveness of managing cash travel funds between the
$1,046,360 decrease in travel advances during the first half of CY 1989 over the same period in CY 1988 and the $1,048,380 increase in cash travel reim-
-bursements during the same period of time.
NRC is managing cash more effec-tively by limiting travel advances at the cost of managing cash less effec-tively by increasing cash reimbursements for travel.
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. APPENDIX Il Page-1 of 2 p,
SUMMARY
0F MONTHLY CASH REIMBURSEMENTS - NRC'S IMPREST FUNDS FOR FYs 1986, 1987, 1968, AND 1989 s
-MONTH FY-1986 FY 1987 FY 1988 FY 1989 OCTOBER-5322,289
$390,072
$473,400
$461,097 I
NOVEMBER
$313,572
$300.681
$375,000
$384,214 I
DECEMBER
$246,785
$367,969
$375,000
$389,348 JANUARY
$328,901
$340,085
$380,631
$408,106 tu FEBRUARY 5300,861
$343,832
$496,743
$502,676 MARCH
$315,094
$427,682
$522,923 5565,020 APRIL
$387,545 5411,188
$504,728
$518,163 MAY
$326,331
$442,512
$542,816
$507,897 JUNE
$286.663
$396.943
$571,136
$534,115 3
2 JULY
$292,743
$497,659
$468,475
$471,617 2
I AUGUST
$286,327
$436,637
$480,003
$483,222 2
l SEPTEMBER
$345,558
$487.100
$483,210
$486,450 TOTAL-
$3,752,670
$4,842,360
$5,674,065
$5,711,925 IWe estimated the monthly cash transactions for the month of November and December 1987 at $375,000. A DAF systems accountant modifico the Summary of Total Monthly Reimbursement Vouchers report from a Fiscal Year (FY) basis to a Calendar Year (CY) basis and retitled the report bn Accountability report.
-The monthly cash totals for these two months were not entered into the reporting system.
2We have projected the FY 1989 total cash expenditures through NRC imprest funds at $5,711,925 based on actual cash transactions for the first
.nine months at $4,270,636. This was a one percent increase from the previous
' fiscal year's first nine months total of $4,242,377. We projected the last three months cash transactions through the imprest funds at $1,441,289 (July, August and September 1988 cash totals at $1,431,688/.9933389 or $1,441,289).
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-APPENDIX 11 Pace 2 of 2 We used a systems accountant's data in OC/DAF to summarize the information on monthly cash reinbursements of all imprest funds for Fiscal Years 1986, 1987, 1988 and 1989.
The impact of minimizing the amount of cash disbursed from the imprest funds and to manage cash more effectively was not achieved during the current fiscal year with the implementation of OMB Bulletin No. 88-17. On September 30, 1988,~NRC Manual bulletin 1501-12 was issued to revise NRC travel advance guidelines to implement OMB Bulletin No. 88-17. The guidelines were intended to minimize the amount of cash aoyanced, without imposing a personal financial burden on traveling employees and in a manner that is consistent with the OMB Bulletin.
hRC's guidelines became effective for all travel commencing on or after November 1, 1988. From FY 1986 to FY 1989, total cash flows through the
.iniprest funds have increased by 52 percent from $3,752,670 in FY 1986 to e I
projected $5,711,925 in FY 1989. However,-the increase from FY 1988 to FY 1989 was only 1 percent which was a substantici reduction from previous increases between FY 1986 and FY 1987 of 29 percent and between FY 1987 anc FY 1988 of 17 percent.
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- [yo ucq[of bNITED STATES ApPENDIV lli
'g NUCLEAR REGULATORY COMMISSION
[
ht WASHING TON. D. C. 20555 -
Page 1 of 4 DE C_19 1999 MEMORANDUM FOR:
David C. Williams-Inspector General c' -
Office of the inspector General t
.FROM:
James M. Taylor.
Executive Director for Operations
SUBJECT:
REVIEW 0F NRC'S CASH MANAGEMENT PROGRAM-This responds to your November 16, 1989, memorandum transmitting the subject audit report. With. respect to your specific recommendations, I submit the following:
Recommendation 1 Stop the delivery of pay checks to employees in the office by requiring all employees to have pay checks DD/ EFT or mailed to their home or office.
Response
Agree. An announcement to all NRC employees will be issued by December 31, 1989, requiringLthat employees currently receiving pay checks in the office provide the payroll.Section with the proper documentation for joining the DD/ EFT Program or have pay checks mailed to their home or office by Treasury, effective pay. period 03/90.
Reconinendation 2 Send an advisory to all.NRC employees reminding them of their responsibilities to keep their Government charge card balances current and the consequences if they do not.
Response
Agree. An announcement will be issued to all NRC employees by January 31, 1990.
- Recommendation.3 Resolve any outstanding issues with Citicorp so the Travelers Check program can be' implemented at NRC expeditiously.
Response
Agree. The Trust Agreement with Citicorp was signed November 29, 1989.
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APPENDIX:111
~
Page 2 of 4 j
David C.: Williams,'IG--
4 J
Recommendation 4'
~
Expedite development'of guidelines for the-use of travelers checks within NRC
- to avoid delays in implementing the program after agreement is reached with
- Citicorp..Begin developing guidelines for use of the Third Party Draft
- initiative so that it can be implemented as soon as possible..
Response
- Agree. The travelers check program will be implemented in Headquarters during.
January of 1990 and in the Regions by June 30,1990. Guidelines for the use of the Third Party Draft will be developed by the Division.of Accounting and Finance in coordination with the Division of Contracts and Property Management.
1 Recommendation 5
' Disburse NRC travel voucher reitabursement payments by U.S. Treasury check until the Third Party Draft program goes into effect.
1
Response
Disagree. The cash payment of travel vouchers through the walk-up voucher examination service will continue until the Third Party Draft program goes into effect because immediate reimbursement of travel expenses is the most timely and efficient method of payment.
Recommendation.6 Revise NRC Chapter 1501 restricting routine imprest fund payments to $500.
Response
Agree. NRC Manual Chapter 1501 will be revised by January 12, 1990.
Recommendation 7 Restrict. imprest-fund payments to. local travel vouchers, small purchase requisitions and, after the travelers check program goes into effect, cash travel advances of $100 or less.
Response
Agree'in part.. Cash travel advances will be restricted to $100 3r less when the travelers check program is implemented. However, the cash payment of travel vouchers through the walk-up voucher examination service will continue until the Third Party Draf t program is implemented. Also see response to Recommendation 5.
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28
..-. c APPENDIX-111-
- David'C.LWilliams IG 4 Page 3 of 4 Recomendati_on 8 q
Reduce imprest fund cash levels in both Headquarters and regional offices as appropriate fol. owing implementation of the travelers check, Third Party Draf t l
and voucher processing recommendations in this report.
i Response-e-
Agree.
Imprest fund cash levels will be reduced in both Headquarters and
' regional offices as appropriate following the implementation of the various i
_ programs addressed in this report.
e Recommendation.9 Require Office Directors / Regional Administrators to improve planning of travel so that travel advances can be paid by U.S. Treasury check. Manager's accomplishments in this regard should be considered in the preparation of the management portion of performance appraisals.
p
Response
Agree. A memorandum will be issued to Office Directors and Regional Adminis-trators. citing.the NRC guidelines for planning and approving official travel and timely submission of travel authorizations to the Division of Accounting i
and Finance. ~The Controller will be asked to comment on the effectiveness of planning official travel by NRC officials as part of the ED0's annual review of performance in the financial management area. Estimated completion date:.
' January 31, 1990.
Recomendation 10 Prepareandevaluatethe"ListingofOpenAuthorizationsMoreThan(90) Days Old" quarterly for additional follow-up work.
j
Response
Agree. Although a report of all open authorizations has been issued to A110ttees on a monthly basis, the recomended report will also be issued to A110ttees at the end of each quarter, beginning with the first quarter of FY 1990.
. Recomendation 11 Review and issue new travel advance blankets on a fiscal year basis and recoup any outstanding advances for the previous travel blanket.
y '..
/
Response
Agree. Travel advance blankets are issued on a fiscal year basis currently.
Outstanding advances from the previous blanket will be recouped as recommended.
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- Dav'id' C. ; Williams',. IG 4
APPENDIX-i11 Page 4 of 4.
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s
' Recommendation 12 i
Recoup outstanding. travel advances from former NRC employees identified on_the-i
<" Listing of Open Authorizations" travel report.
r Response'-
Agree. The Controller will bill.or otherwise resolve outstanding travel advances of.former NRC employees by June 30, 1990.
Recommendation 13
'R' coup travel advances from current NRC employees that are over 90 days old. -
e
-Response i
Agree..This is an ongoing effort. Additional procedures to recoup travel i
advances over 90 days.old from current NRC employees will be implemented e
in January 1990.
-s N
m s M. Tay r
)
xecutive Director for 0perations l
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