Conduct Paying Agent Operations SHOW SLIDE #1: Conduct Paying Agent Operations References: DFAS-IN REG 37-1, DODFMR 7000.14-R, VOL 5 , FM 1-06 Taught : 805A-36A-6004 Conduct Paying Agent Operations Supported: 805A-36A-6001 Resolve Irregularities in a Disbursing Officer's Account 3 hours Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise, DFAS-IN REG 37-1, DODFMR 7000.14-R, VOL 5, and FM 1-06. All required references and technical manuals will be provided by the School House Learner Material: Learners should possess standard classroom supplies, course handouts, practical exercises, DFAS-IN REG 37-1, DODFMR 7000.14-R, VOL 5, and FM 1-06FM. All required references and technical manuals will be provided by the School House. Facilitator Actions: Classroom Setup 5 minutes, Classroom Breakdown 2 minutes Testing Requirements/Assessment: learners will take the Disbursing Exam #1 during the Disbursing module. learners must score 80% or higher and International officers must score 70% or higher. learners will be assessed using “Go” or “No Go” on Professional Development and Leadership during the Capstone Exercise. Motivator: Chances are you will never be a Paying Agent. However, as a Disbursing Agent you will deal with them on a regular basis. It is important that you know what their responsibilities are and what your responsibilities are towards them.

Terminal Learning Objective Action: Conduct Paying Agent Operations Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Ensure a Paying Agent is properly appointed to support the mission. Brief the Paying Agent. Advance Funds to a Paying Agent. Receive the return of funds from the Paying Agent SHOW SLIDE #2: Terminal Learning Objectives Action: Conduct Paying Agent Operations Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Ensure a Paying Agent is properly appointed to support the mission. Brief the Paying Agent. Advance Funds to a Paying Agent. Receive the return of funds from the Paying Agent Safety Requirement: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29. Risk Assessment Level: Low Environmental Consideration: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. Instructional Lead-in: When you are assigned as a Deputy Disbursing Officer or Disbursing Agent the possibility is great that you will be confronted with a Paying Agent. If proper training is not conducted and procedures not followed, pecuniary responsibility could rest on your shoulders or on the FM Officer.

Paying Agents Officer Warrant Officer Non-Commissioned Officer (SFC and above) Civilian (GS6 and above - DISB Policy MSG 87-12) SHOW SLIDE #3: Paying Agent 1. Learning Step/Activity #1: Ensure a Paying Agent is properly appointed to support the mission Method of Instruction: DSL (large or small group discussion) Facilitator to learner Ratio: 1:30 Time of Instruction: 15 minutes Media: Slides, Printed Reference Materials Facilitator's Note: Before facilitating this lesson, ask the learners which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the learners still believe their choice are the same. 1. Character and accountability 2. Comprehensive fitness 3. Adaptability and initiative 4. Lifelong learner (includes digital literacy) 5. Teamwork and collaboration 6. Communication and engagement (oral, written, and negotiation) 7. Critical thinking and problem solving 8. Cultural and joint, interagency, intergovernmental, and multinational competence 9. Tactical and technical competence (full spectrum capable) Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) Paying Agents are commissioned officers, warrant officers, non-commissioned officers (SFC or above), or civilians (GS 6 or above). Paying Agents will not be appointed as agents to a Disbursing Agent, but may be appointed as agents to the Finance Officer and utilized by the Disbursing Agent. 

Example of Paying Agent Orders SHOW SLIDE #4: Example of Paying Agent Orders Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) Appointment Document. The appointment documents are issued by the commander (usually battalion or separate company) (FM 1-06). The appointment document will specify:   (1) The grade, full name, social security number, unit, and address or station of the Paying Agent. (2) The issuing headquarters of the order. (3) The signed date of the appointment order. (4) The effective date of the appointment order. (5) The types of transactions to be made. (i.e. foreign conversions, collections, and cash payments) (6) The time period for which the Agent is appointed (a Paying Agent may be appointed for an indefinite period and continue on such duty until relieved by the appointing authority). (7) The FM Commander to whom the Paying Agent is appointed. NOTE: Stress to learners that orders are only good for the FM Officer to which appointed. (8) The installation address of the FM Office. (9) Special instructions that may be deemed appropriate. The agent is required to have a copy of his appointment document in his possession when he reports to the FM Office to receive the funds. The FM Office will maintain a file of appointment documents until expiration or replacement.

LSA #1 Check on Learning Show Slide #5: LSA #1 Check on Learning Facilitator’s Note: Ask the following Questions; (Facilitate discussion on answers given) Q: What are the components of a valid agent order? A: The grade, full name, social security number, unit, and address or station of the Paying Agent; the issuing headquarters of the order, the signed date of the appointment order, the effective date of the appointment order, the types of transactions to be made: foreign conversions, collections, and cash payments; the time period for which the Agent is appointed (a Paying Agent may be appointed for an indefinite period and continue on such duty until relieved by the appointing authority), the Finance Commander to whom the Paying Agent is appointed, the installation address of the Finance Office, and special instructions that may be deemed appropriate.

LSA #1 Summary Show slide #6: LSA #1 Summary Facilitator’s Note: In this lesson we discussed, Ensure a Paying Agent is properly appointed to support the mission

Paying Agent Instructions Safeguarding of Funds Identification of Payee Signature of Payee Return of Funds SHOW SLIDE #7: Paying Agent Instructions 2. Learning Step/Activity #2: Brief the Paying Agent Method of Instruction: DSL (large or small group discussion) Facilitator to learner Ratio: 1:30 Time of Instruction: 20 minutes Media: Slides, Printed Reference Materials Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) Paying Agent Instructions: The Disbursing Agent is responsible for briefing Paying Agents and for providing them with detailed written instructions. Failure to comply with the provisions of DoDFMR 7000.14-R and FM 1-06, concerning control of public funds, may result in the Disbursing Agent and Paying Agent being held pecuniary responsible in the event of a loss of funds. The instructions will include such items as: (1) Safeguarding of funds.   (2) Identification of payees. (3) Signature of payees. (4) Return of funds.

Paying Agent Instructions (Cont’d) Penalty Provisions for Misuse of Government Funds No Entrusting of Funds to Other Individuals Other Instructions the Financial Management Officer May Deem Necessary SHOW SLIDE #8: Paying Agent Instructions (Cont’d) Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) (5) Penalty provisions for misuse of Government funds.   (6) Prohibition against the Paying Agent entrusting funds in any manner to any person for any purpose. (7) Such other instructions as the Financial Management and Accounting Officer may deem necessary. The Paying Agent will sign a statement on the DD Form 1081 that he understands FM 1-06, and written instructions provided him from the Disbursing Agent prior to receipt of the funds. Every effort should be made to ensure that other duties assigned to the Agent Officer would not delay or complicate his performance as a Paying Agent. The Paying Agent will be provided a copy of the written instructions.

LSA #2 Check on Learning Show Slide #9: LSA #2 Check on Learning Facilitator’s Note: There is no check on learning for this LSA.

LSA #2 Summary Show slide #10: LSA #2 Summary Facilitator’s Note: In this lesson, we discussed Brief the Paying Agent.

Advance of Funds Requirements Military ID Card (DA Form 2A) Appointment Document Military Weapon and Ammunition Armed Guard Military Vehicle Show slide #11: Advance of Funds Requirements. 3. Learning Step/Activity #3 Advance Funds to a Paying Agent Method of Instruction: DSL (large or small group discussion) Facilitator to learner Ratio: 1:30 Time of Instruction: 30 minutes Media: Slides, Printed Reference Materials Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) Advance of Funds: A Paying Agent must be notified when and where funds are to be made available. He should report as scheduled and have the following:   (1) Military identification card (DA Form 2A). (2) Copy of appointment document. (3) Military weapon and ammunition. (4) At least one guard with a military weapon. (5) Military vehicle. (6) DA Form 3953, Purchase Request and Commitment (PR&C) (7) Copy of Field Ordering Officer (FOO) appointment orders signed by the head of the contracting office or his/her designee. Note: The FOO cannot be also the paying agent. (8) FOO’s DD Form 577, Signature Card, signed by the commander.

Show slide #12: Sample DD Form 1081. Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) After verification of the Agent's identity, the FM Officer (or his representative) will prepare a DD Form 1081 in original and 2 copies.   Facilitator’s Note: Refer learners to Handout pg 20, Example DD Form 1081.

(Include ZIP Code/APO number and Telephone number.) TRANSACTIONS STATEMENT OF AGENT OFFICER'S ACCOUNT 12. TOTAL FUNDS IN HANDS OF AGENT OFFICER DISBURSING OFFICER'S NAME, ADDRESS, DISBURSING STATION SYMBOL NO. INCREASE (Received by Agent) TRANSACTIONS AFFECTING AGENT OFFICER'S ACCOUNT AGENT OFFICER'S NAME, GRADE, SSN, UNIT ADDRESS DECREASE (Turned in by Agent) ENDING BALANCE (In Agent's Account) BEGINNING BALANCE 2. U.S. DOLLARS 3. FOREIGN CURRENCY 4. MILITARY PAYMENT CERTIFICATES 5. COLLECTIONS 6. DEPOSITS 7. NEGOTIABLE INSTRUMENTS: A. TREASURY CHECKS B. MILITARY PAYMENT ORDERS C. OTHER (Specify) 8. PAID VOUCHERS 9. INCORRECT VOUCHERS RETURNED 10. 11. 1. BALANCE FORWARD (Include ZIP Code/APO number and Telephone number.) a b c d e 1 2 Show slide #13: Advance of Funds Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) The identification of the Disbursing Officer and that of the agent officer shall be entered in the blocks provided for this purpose. The following lines also need to be completed for an advance:   (1) Line 1 – In the Beginning Balance column, enter the balance in the agent officer’s account before the current advance of funds. This amount should be the same as the amount shown on line 17 of the last DD Form 2665 submitted by the agent and line 12 of the last DD Form 1081 submitted by the agent. (2) Lines 2 through 4 - In the Increase column, enter on the appropriate line the amount of currency included in the current advance. (3) Lines 5 and 6 – Leave blank. These lines are not used on an advance of funds. (4) Lines 7A, 7B, and 7C - In the Increase column, enter the amount of Treasury checks and/or any other negotiable instruments included in the advance. If space permits, enter the check number(s) on the corresponding line. If more space is required, list the check numbers on the reverse of the form. (5) Line 8 – Leave blank. This line is not used on an advance of funds. (6) Line 9 - In the Increase column, enter the dollar value of incorrect vouchers returned to the agent officer. The return of incorrect vouchers to an agent officer shall be considered as funds advanced. (7) Line 10 and 11 - In the Transactions column, enter an appropriate identification of items other than those described above that are included in the advance of funds. Enter the amount of such items in the Increase column. (8) Line 12 - In the Beginning Balance column, enter the grand total of the amount entered on line 1 plus the total of the amounts entered in the Increase column on lines 2 through 11. This grand total represents the balance in the agent officer’s account as a result of the advance. Facilitator’s Note: Advances and Returns are generally done on separate DD 1081’s 3

STATEMENTS DISBURSING OFFICER OTHER ITEMS AS INDICATED IN THIS STATEMENT TO THE ABOVE NAMED AS MY AGENT OFFICER. ON ADVANCE: I HAVE INTRUSTED FUNDS AND/OR FUNDS AND/OR OTHER ITEMS AS INDICATED ABOVE. I HAVE ASSUMED PECUNIARY RESPONSIBILITY THEREFOR I WILL NOTIFY THE DISBURSING OFFICER IMMEDIATELY UPON DISCOVERY OF ANY LOSS OR SHORTAGE, AND I HAVE RECEIVED AND UNDERSTAND WRITTEN INSTRUCTIONS CONCERNING MY DUTIES AND RESPONSIBILITIES AS AN AGENT OFFICER . DISBURSING OFFICER DATE SIGNATURE OF AGENT OFFICER I, AS AGENT OFFICER, HAVE RECEIVED SIGNATURE OF DISBURSING OFFICER Show slide #14: Statements Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) The funds are advanced to the agent as specified on the DD Form 1081.   The Agent will then proceed to verify that the funds received are in agreement with the amounts stated on DD Form 1081. Any difference must be reconciled before departing the FM Office. Once the Paying Agent leaves the disbursing office, they assume all liability for discrepancies. Both the FM Officer (or his representative) and the Agent will sign the DD Form 1081 for the advance of funds. (1) Disbursing Officer. The DO shall place an "X" in the box provided opposite the “On Advance” statement to indicate that the form is to account for an advance of funds to the agent officer and shall complete the Date and Signature blocks to authenticate the statement opposite the box checked. The signed original and duplicate of the form, together with the funds, shall be delivered to the agent officer. The triplicate copy shall be retained by the DO pending return of the signed original by the agent officer. (2) Agent Officer. The agent officer shall then place an "X" in the box provided opposite the agent officer's “On Advance” statement and shall complete the Date and Signature blocks to authenticate the statement shown opposite the box checked. The original DD Form 1081 shall be returned to the DO as a receipt for the funds. The duplicate copy shall be retained by the agent officer.

LSA #3 Check on Learning Show Slide # 15: LSA #3 Check on Learning Facilitator’s Note: Ask the following Question; (Facilitate discussion on answers given) Q: What should an Agent Officer have in his possession and have access to, prior to being issued funds? A: Common Access Card (CAC), a copy of appointment document, a military weapon and ammunition, at least one guard with a military weapon, and a military vehicle.

LSA #3 Summary . Show slide #16: LSA #3 Summary Facilitator’s Note: In this lesson, we discussed Advance Funds to a Paying Agent

Verifying Returns Disbursing Office Verify correctness of endorsements on paid documents Group and total all vouchers Determine the amt of cash for turn-in Verify cash turn-in with DD Form 1081 Have paying agent endorse final DD Form 1081 SHOW SLIDE #17: Verifying Returns 4. Learning Step/Activity #4 Receive the return of funds from the Paying Agent Method of Instruction: DSL (large or small group discussion) Facilitator to learner Ratio: 1:30 Time of Instruction: 15 minutes Media: Slides, Printed Reference Materials Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) Return of Funds: Paying Agents will make every effort to complete their business and return the funds on the same day. (NOTE: This is a general rule and can be modified with the concurrence of the FM Officer to meet actual conditions found in field operations). After payments are complete, the Agent will:   (1) Ensure all paid vouchers and negotiable instruments have appropriate endorsements. (2) Total all paid/unpaid checks and vouchers by type of transaction. (3) Reconcile the remaining cash and paid transactions with the amount of funds advanced (DD Form 1081). If the agent is unable to return the funds as scheduled, the Disbursing Agent must be notified immediately. The Agent must return to the Disbursing Agent using the same precautions as when the funds were picked up. Upon arrival at the FM Office, the Disbursing Officer or designated representative will: (1) Receive the return. (2) Verify correctness of endorsements on paid documents. (3) Group and total all vouchers. (4) Determine the amount of cash turn-in.

(Include ZIP Code/APO number and Telephone number.) TRANSACTIONS STATEMENT OF AGENT OFFICER'S ACCOUNT 12. TOTAL FUNDS IN HANDS OF AGENT OFFICER DISBURSING OFFICER'S NAME, ADDRESS, DISBURSING STATION SYMBOL NO. INCREASE (Received by Agent) TRANSACTIONS AFFECTING AGENT OFFICER'S ACCOUNT AGENT OFFICER'S NAME, GRADE, SSN, UNIT ADDRESS DECREASE (Turned in by Agent) ENDING BALANCE (In Agent's Account) BEGINNING BALANCE 2. U.S. DOLLARS 3. FOREIGN CURRENCY 4. MILITARY PAYMENT CERTIFICATES 5. COLLECTIONS 6. DEPOSITS 7. NEGOTIABLE INSTRUMENTS: A. TREASURY CHECKS B. MILITARY PAYMENT ORDERS C. OTHER (Specify) 8. PAID VOUCHERS 9. INCORRECT VOUCHERS RETURNED 10. 11. 1. BALANCE FORWARD (Include ZIP Code/APO number and Telephone number.) a b c d e 2 3 SHOW SLIDE #18: Returns Facilitator’s Note: (Facilitator read and facilitate discussion using the slide) 1. Prepare and verify the balance of the DD Form 1081 for return. The agent officer (IAW DoDFMR Vol 5, Ch. 19) shall prepare a DD Form 1081 in original and 2 copies to account for a return of funds and/or cash vouchers to the DO.   (a) The identification of the DO and that of the agent officer shall be entered in the blocks provided for this purpose. (b) Line 1 – In the Ending Balance column, enter the amount from Line 12, Beginning Balance column. (c) Lines 2 through 4 - In the Decrease column, enter on the appropriate line the amount of currency included in the return. (d) Line 5 - In the Increase column, enter the amount of collections made by the agent officer in the form of cash or negotiable instruments. (e) Line 6 - In the Decrease column, enter the amount of deposits (SF 215) made by the agent officer to the credit of the Treasury Department over the DSSN of the DO. (f) Lines 7A, 7B, and 7C - In the Decrease column, enter the amount of Treasury checks and/or any other negotiable instruments being returned to the DO. (Items previously advanced by the DO, but not used). (g) Line 8 - In the Decrease column, enter the amount of vouchers paid in cash by the agent officer and included in the return. (h) Line 9 - Leave blank. This line is not used by agent officers on return of funds and/or cash vouchers to the DO. (i) Lines 10 and 11 - In the Transactions column, enter an appropriate identification of items other than those described above that are included in the return. Enter the amount of such items in the Decrease column. (j) Line 12 - In the Ending Balance column, enter the grand total of the amount entered on Line 1 minus the total of the amounts entered in the Decrease column on lines 2 through 11. This grand total represents the balance in the agent officer’s account as a result of the return. Facilitator’s Note: Advances and Returns are generally done on separate DD 1081’s 2. Verify the cash turn-in with the DD Form 1081. 3. Notify the Finance Officer of any discrepancy. 4. After verification of the funds, the Finance Officer or Deputy signs the DD Form 1081 and provides the Paying Agent with the original. The Agent should retain the DD Form 1081 for at least 1 year as proof of the return transaction. 5. Agent Officer - The agent officer shall place an "X" in the box provided opposite the agent officer’s “On Return” statement to indicate that the form is prepared to account for the return of funds and/or cash vouchers to the DO and shall complete the Date and Signature blocks to authenticate the statement shown opposite the box checked. The signed original and duplicate of the DD Form 1081, with the funds and/or cash vouchers, shall be delivered to the DO. The triplicate copy shall be retained by the agent officer pending return of the signed duplicate by the DO. 6. Disbursing Officer. The DO shall verify that the amounts reported on the DD Form 1081 are in agreement with the items received and shall then place an "X" in the box provided opposite the “On Return” statement. The DO shall complete the Date and Signature blocks to authenticate the statement opposite the box checked. The signed duplicate of the form shall be returned to the agent officer as a receipt for the items turned in. The original of the form shall be retained by the DO. 7. When not practical to return funds to the Finance Officer making the advance, the Agent will turn in all cash and paid vouchers along with DD Form 1081 on which the advance was received to the nearest Finance Officer. The Agent or nearest servicing Finance Officer will contact the Finance Officer from whom the advance was received and request the agents packet, with original documents, be sent to him. Included in that request should be the DD 577 cards on the Field Ordering Officer and Contracting Officer. Once confirmation of all documents are ascertained, the Finance Officer receiving the return would complete a DD Form 1081 to transfer funds back to the original FO, if operating from the same Disbursing Station Symbol Number (DSSN). If not operating from the same DSSN, the FO would cut a Treasury Check for the full amount of the advance and send it to the original FO. 1 4

LSA #4 Check on Learning Show Slide #19: LSA #4 Check on Learning Facilitator’s Note: Ask the following Questions; (Facilitate discussion on answers given) Q: What must an Agent Officer do prior to returning funds? A: Ensure all paid vouchers and negotiable instruments have appropriate endorsements, total all paid/unpaid checks and vouchers by type of transaction, and reconcile the remaining cash and paid transactions with the amount of funds advanced (DD Form 1081).  

LSA #4 Summary Show slide #20: LSA #4 Summary Facilitator’s Note: In this lesson, we discussed Receive the return of funds from the Paying Agent

TLO Check on Learning SHOW SLIDE #21: TLO Check on Learning Facilitator’s Note: Facilitator, have each group as a group write down one question from this lesson, give about five minutes. Once all groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.

TLO Summary SHOW SLIDE #22: TLO Summary Facilitator’s Note: Facilitator at this time, have one Learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

Practical Exercise SHOW SLIDE #23: Practical Exercise Facilitator’s Note: Have learners log into Black board to do the Practical Exercises below on their own. PE-1 Conduct Paying Agent Disbursing Operations PE-A Conduct Paying Agent Operations PE-B Conduct Paying Agent Operations PE-C Conduct Paying Agent Operations