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The financial policies of the Department of Veterans Affairs (VA) regarding Clearing (Suspense) Accounts and Deposit Funds. It covers the use, reporting, and accounting for these funds, as well as the roles and responsibilities of various offices in the process. The document also includes revisions and effective dates.
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Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C Section Revision Office Reason for Change Effective Date
and Responsibilities Added OFR’s roles and responsibilities for closing clearing (suspense) and deposit funds.
To add OFR’s R&R to policy. May 2022 020501 – General
Clearing (Suspense) Accounts Added policy statements indicating that OFR will close clearing (suspense) and deposit funds.
To provide guidance for closing clearing (suspense) and deposit funds. May 2022 0206 –
Refences Added 31 USC § 3513: Financial reporting and accounting system.
To add legal authority that supports policy guidance. May 2022 Various Removed hyperlinks from policy sections, minor rewording for clarity.
To align with current policy format. January 2022 020506 – Reconciliation of Clearing (Suspense) and Deposit funds Added reconciliation section for clearing (suspense) and deposit funds.
To ensure completeness of the monitoring and review process. January 2022 0206 Authorities and References Added statutes 38 U.S.C. §8504, Disposition of Other Unclaimed Property 41 U.S.C. §6705, Violations.
To support clearing (suspense) and deposit funds policy statements. January 2022 Appendix A: Clearing (Suspense) Accounts List Moved listing of Clearing (Suspense) Accounts from section 020502 to new Appendix A. Renamed section 020502.
Listing of Clearing (Suspense) Accounts. January 2022
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C Section Revision Office Reason for Change Effective Date Appendix B: Deposit Funds List Moved listing of Deposit Funds from previous section 020507 to new Appendix B.
Listing of Deposit Funds. January 2022 Various Reformatted to new policy format and completed 5-year review.
Reorganized chapter layouts. January 2018 Overall Clarified policy to match Treasury’s and OMB’s requirements and guidance.
Treasury and OMB updates. January 2018
Added the key points covered in this policy chapter. Moved detailed guidance to the Policies section.
5 - year review. January 2018 0204 Roles and Responsibilities Added Admin CFOs and Staff Office CFOs. Added FSC’s roles in the monthly monitoring and annual certification of clearing (suspense) accounts.
New role for FSC. January 2018
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C 0203 Definitions Clearing (Suspense) Account – An account that temporarily holds unidentifiable general, special, or trust fund federal government collections pending an administrative or final determination and transfer to the applicable receipt or expenditure accounts. Deposit Fund – An account established by Treasury’s Bureau of the Fiscal Service (Fiscal Service) to record monies that do not belong to the Federal Government. The criteria for deposit funds may be found in Treasury Financial Manual (TFM) Volume I Part 2 Chapter 1500, Section 15 45 , Deposit Fund Accounts. Fiduciary – A Federal entity that holds assets in trust for a non-Federal entity in which the non-Federal entity has an ownership interest that the Federal Government must uphold (based on statutory or other legal authority). Fiduciary Activity – Activity that relates to the collection or receipt, and the subsequent management, protection, accounting, investment or disposition by the Federal Government of cash or other assets in which non-Federal individuals or entities have an ownership interest that the Federal Government must uphold. Fund Balance with Treasury (FBWT) – The aggregate amount of funds on deposit with Treasury, including general funds, deposit funds, trust funds, special funds, and revolving funds. Non-appropriated Fund – A non-appropriated fund is authorized for use by statute and is used for purposes such as temporarily holding federal and non-federal collections for future disposition. A non-appropriated fund is create by statute outside of VA's annual budget submission. Refunds – The return of funds improperly collected or collected in excess of the amount owed. 0204 Roles and Responsibilities Under Secretaries, Assistant Secretaries, Other Key Officials, Chief Financial Officers, Finance Officers and Fiscal Officials are responsible for ensuring compliance with the policies set forth in this chapter. Office of Budget (OB) is responsible for preparing requests for changes in or new Treasury Account Symbols (TAS)/Treasury Appropriation Fund Symbols (TAFS) such as those used in clearing (suspense) accounts and deposit funds. Office of Financial Policy (OFP) is responsible for reviewing and approving the request for a change or creation of a TAS/TAFS received from OB. OFP is also
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C responsible for submitting the request to Treasury’s Fiscal Service, Budget and Appropriation Analysis Section (BAAS) Group. Office of Financial Reporting (OFR) is responsible for closing VA’s non-appropriated accounts, which include clearing (suspense) and deposit funds. Administration CFOs and staff office CFOs are responsible for ensuring that a process exists for clearing suspense accounts timely, responding to questions from the FSC, and ensuring that monthly reconciliations are performed. Financial Services Center (FSC) is responsible for the monthly evaluation of the balances in the clearing (suspense) accounts and contacting organizations that are not clearing (suspense) items in a timely manner. FSC is also responsible for supporting VA stations in ensuring clearing (suspense) items are properly recorded and for completing an annual certification, with Treasury’s Fiscal Service, to continue using these accounts. VA Stations, Divisions, and Organizations are responsible for clearing their respective Suspense accounts in a timely manner. Authorizing officials at these levels are responsible for approving remaining balances. 0205 Policies 020501 General Policies – Clearing (Suspense) Accounts A. VA will comply with guidance contained in:
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C responsible officials such as VA station and Administration level accounting supervisors that review and approve transfer transactions. Every effort should be made to clear these transactions within the 60 - day time limit. C. If the proper accounting treatment cannot be identified and all reasonable efforts have been exhausted to identify and properly account for a suspense transaction, finance staff at the stations will transfer the clearing/suspense account transaction to one of the following three accounts based upon the criteria listed below:
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C A. Annually, Treasury’s Fiscal Service will send an e-mail to VA’s CFO or designee to request completion of an online survey for certification of clearing (suspense) accounts. The request for certification will coincide with the annual Year-end Closing Bulletin, normally issued each year in July. B. Annually FSC will submit the requested certification statement to Treasury’s Fiscal Service. The certification statement will either attest to the fact that balances in VA’s clearing (suspense) accounts F3875 and F3885 do not include transactions older than 60 days or clearly articulate the reasons why balances were not distributed timely. C. FSC will use the same reports used for monthly monitoring to examine the balances as of the close of the fiscal year in the clearing accounts and report to Treasury. 020505 General Policies – Deposit Funds A. VA will comply with the guidance in SFFAS Numbers 1 and 31 as well as, OMB Circular A-136, when recording transactions and preparing VA’s notes to the financial statements. B. VA will adhere to TFM Volume 1 Part 2, Chapter 1500, Section 1545, Deposit Fund Accounts regarding deposit funds. C. In accordance with SFFAS No.1, VA will use deposit fund accounts to recognize liabilities for monies held on behalf of the U.S. government or other entities. For example, unpaid payroll withholdings and garnishments are held in deposit fund account 036X6278. D. VA will use separate deposit fund accounts to hold non-Government monies as authorized by individual statutes or programs. An example of a legislatively mandated deposit fund is 41 U.S.C. §6705, Violations, which requires monies be held in a deposit fund or The Rehabilitation Intervention Therapy Service (RITS) related transactions, which provides quality inpatient medical rehabilitation services for Veterans with impairments limiting normal daily function. E. VA will use a deposit fund account classification for any account that meets one of the following three criteria:
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C Federal Account Symbols and Titles (FAST) Book, Agency Identifier Codes - Treasury Financial Manual Supplement Federal Management Regulations, 41 C.F.R., Part 38, Sale of Personal Property, Subpart D, §102-38.295- 300 Federal Property and Administrative Services Act of 1949, Title II, Section 201(c) Office of Management and Budget (OMB) Circular A-11, Preparation, Submission and Execution of the Budget OMB Circular A-136, Financial Reporting Requirements – Revised The Rehabilitation Intervention Therapy Service (RITS) Statement of Federal Financial Accounting Standards (SFFAS) No. 1, Accounting for Selected Assets and Liabilities SFFAS No. 31, Accounting for Fiduciary Activities TFM Bulletin No. 2021-03 Reporting Suspense Account Activity Using F3875 and F3885 and Using Default Accounts F3500 and F3502 as a Central Accounting Reporting System (CARS) Reporter TFM Bulletin - Federal Account Symbols and Titles (FAST Book) TFM, Volume I, Part 2, Chapter 1500, Description of Accounts Relating to Financial Operations TFM Volume I Part 2, Chapter 3400, Accounting for and Reporting on Cash and Investments Held Outside of the U.S. Treasury TFM, Volume I, Part 2, Chapter 5100, Fund Balance with Treasury Accounts TFM, Volume 1, Part 4, Chapter 7000, Cancellations, Deposits, Reclamations, and Claims for Checks Drawn on the U.S. Treasury TFM, Volume 1, Part 6, Chapter 3000, Payments of Unclaimed Moneys and Refund of Moneys Erroneously Received and Covered VA Financial Policy Volume I, Chapter 6 – Reconciliations VA Financial Policy Volume II Chapter 1A, VA Journal Vouchers VA Financial Policy Volume II Chapter 2, Budget Cycle and Fund Symbols
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C VA Financial Policy Volume VI, Chapter 10 – Other Liabilities VA Financial Policy Volume V, Chapter 2 – Cash, FBWT, and Imprest Funds
VA Volume II Chapter 2C, Clearing (Suspense) and Deposit Funds, January 20 22
Questions concerning this financial policy should be directed to the following points of contact: VHA VHA 10A3A Accounting Policy (Outlook) VBA VAVBAWAS/CO/FINREP (Outlook) NCA NCA Financial Policy Group (Outlook) All Others OFP Accounting Policy (Outlook)
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C Appendix A
Clearing (Suspense) and Deposit Funds Volume II – Chapter 2C Appendix B
VA will use the following Deposit Fund Accounts that are either fiduciary or non- fiduciary, depending upon the fund's purpose, and will comply with the associated accounting and reporting standards. Deposit Funds in iFAMS will have “DP” following the four digits of the fund account symbol. An example is “6275DP.”
