BOP Program Statement 8540.03 § 7

The remote accountant and prime business manager monitor G/L expense accounts and

supporting cost centers within the Controlling Module to ensure accuracy. Additionally,

expenditures are reviewed to ensure a true representation of costs incurred during the month.

Corrections are made in a timely manner. The following are examples of the type of accounts

that must be monitored:

■ Freight Liabilities. Freight liabilities are entered by the field location into the financial

information system. Field locations continue to document the Transportation Expense

Payable account (217000) in the financial information system using the field and text data as

required. Centralized Accounts Payable (CAP) applies the payment of freight invoices

against the location’s 217000 account. CAP processes all freight invoices, during the

voucher phase, by debiting exclusively to account 217000. The remote accountant or prime

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business manager ensures that the 217000 account is properly reconciled at month’s-end.

This includes the accrual for all freight expenses as well as the reconciliation of paid freight

invoices by CAP.

■ Transportation. To ensure transportation billings are not significantly over- or understated,

a system-generated General Ledger Account Line Items Display Report for G/L Account

635500, Shipping Cost Billed to Customer, using the dynamic selection “Profit Center,” is

reviewed and corrected, if required.

■ Other. To ensure there is no value associated with Government Furnished Materials

(GFM/500 series) the General Ledger Account Line Items Display Report for G/L

Account 618200, Other Expenses, is reviewed for entries made via material movements.

Any values associated with GFM are corrected; if not, inventory will be overstated since

GFM is carried at no cost.

Central Disbursements. The Central Disbursement Section disburses funds via Intra-governmental Payment and Collection System (IPAC), Civilian Payroll Electronic Fund Transfer

(EFT), Treasury Check, etc., for the payment of expenses incurred and preparation of appropriate

journal entries. The Central Disbursement’s Section records Civilian Payroll at the cost center

level to the appropriate expense accounts. CAP processes the clearing account balances for all

IPAC’s in which a receiving report is required. All other IPAC clearing account balances must

be cleared monthly. A manual entry must be made for the reclassification of non-purchase order

related IPACs and Civilian Payroll errors. When an error occurs on the Civilian Payroll due to

an error on the accounting classification, the error posts to the expense account noted below and

to the appropriate cost center as determined by the organizational data on the Accounting Station

Posting Media (ASPM). The remote accountant or prime business manager ensures balances for

the following G/L Accounts are reclassified to the appropriate expense accounts resulting in a

zero balance, in the controlling module, on a monthly basis and before year-end closeout.

■ G/L Account, 610150, Salaries; Permanent Positions, Cent. Off. Distr.

■ G/L Account, 620150, Salaries; Permanent Positions, Sales & Admin.

■ G/L Account, 611550, IPAC Clearing Acct – Goals Disbursements.

■ G/L Account, 621550, IPAC Clearing Acct – Goals Disbursements.

The AW/SOI ensures that the signed purchase card statement and reconciliation is submitted to

CAP, so that the following G/L accounts can be properly reconciled on a monthly basis and

before year-end closeout.

■ G/L Account, 611555, Bank One Clearing Acct – Field.

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■ G/L Account, 621555, Bank One Clearing Acct – Gen. and Admin.

■ Civilian Payroll Accrual. The Central Disbursements section records the month end

Civilian Payroll accrual for the entire corporation as a single line item credit to the general

ledger account 222020 Accrual - Civilian Pay Central Office, offset by the appropriate

expenses at the cost center level. The basis of the entry is the last previously disbursed

payroll factored for the remaining work days which have yet to be disbursed. Overtime and

awards are removed from the basis and the clearing accounts are not posted. The Civilian

Pay accrual is not entered using the auto reverse option, but is manually reversed at the time

the next month’s accrual is posted. The remote accountant or prime business manager is

responsible for ensuring that overtime is accrued as appropriate and will be responsible for

monitoring the 222020 account for their respective plants. Overtime is the only appropriate

field use for Account 222020. This account must not be used to transfer balances between

plants.