BOP Program Statement 8540.03 § 9

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Although the accounts payable function is centralized, remote and prime business offices

continue to review the following accounts payable reports to ensure accuracy and timeliness of

the payable process.

a. Accounts Payable. The remote accountant or prime business manager generates the

Accounts Payable Aging report for their plants. This report is reviewed for open invoices 30

days past due. Open items are reported to Central Accounts Payable (CAP) to determine the

validity of each invoice and resolution of issues for payment, if applicable.

b. Review of Open Goods Receipt Invoice Receipt (GRIR). Each month, the Central

Disbursements section will send a spreadsheet listing of all GRIR items over 45 days old as of

month-end to the Prime Business Manager(s) and all Contracting Officer(s) by the second work

day of the following month.

The Prime Business Manager will provide a status of all GRIR line items on the spreadsheet to

CAP no later than the 10th calendar day of the current month. This function may be delegated,

but the response must come from the Prime Business Manager. A status code and a brief

explanation for the response will be provided for each line item. The applicable code and the

corresponding text must be included on the spreadsheet. The status will be detailed as one of the

following:

■ Code 1 – Request line item remain open (state reason)

■ Code 2 – Field request invoice from vendor

■ Code 3 – Write-off line item (state reason)

■ Code 4 – Process credit invoice against outstanding payable

■ Code 5 – Write-Off pending Deputy Controller approval.

c. Field Request for Vendor Invoice. When the field is required to request an invoice from a

vendor, the Prime Business Manager coordinates with the Contracting Officer to ensure that

proper notification and resolution occur with the vendor.

d. CAP Follow-up. By the end of each month, CAP provides the Internal Auditor with a list of

the Prime Business Manager(s) that have not responded to the 45 Day GRIR listing.

e. GRIR Write-Offs. CAP performs the GRIR write-offs each month based on the

authorization provided by the Prime Business Manager(s) on the 45 day old list. The Prime

Business Manager provides this authorization either by emailing the spreadsheet or by a signed

fax. All write-offs with a $3,000 or higher net impact per line item must be approved by a

Deputy Controller (i.e., an offsetting credit and debit on the same purchase order and line item

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does not require Deputy Controller approval if the net is less than $3,000). Prime Business

Manager(s) send requests for write-offs over $3,000 directly to the Deputy Controller, Field

Operations, for approval. These requests contain all supporting information needed to justify the

write-off decision. Prime Business Manager(s) retain supporting documentation for all write-off

requests. CAP maintains all requests for write-off, including the email request or signed

spreadsheet, for three years.

Note: Financial management staff must be aware that the write-off of GRIR line items will

impact the moving average price of inventory items. As such, all write-offs must be

thoroughly researched and will be considered only after all other options have been

exhausted.

No GRIR line items may remain open past 180 days. Each month, CAP provides the

Controller’s Office with a list of items remaining over 180 days old. This includes the status

codes and explanations as provided by the Prime Business Manager(s). The Controller’s Office,

with assistance from the Chief of Disbursements, resolves these.