U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
This Directive was Canceled June 23, 1999.
|Classification Code||Date||Office of Primary Interest|
|2770.1||December 16, 1982|
(1) Bills will be paid when due. The issuance and mailing of checks will be made for receipt by the payee as close as administratively possible to the due date specified in the invoice, contract, or other agreement.
(2) If the goods or services are not received by the 15th day before the due date of an invoice, payment will be made no later than 15 days from the receipt of goods or services, but not prior to the due date.
(3) If no due date is specified, the due date will be considered to be on the 30th day from receipt of the invoice, and payment will be scheduled to be made on that date.
(4) Payments will not be made on invoices prior to the receipt of the related goods or services, except as specifically provided by contract or other agreements executed pursuant to law. With the exception of payments involving disputed invoices, late receipt, or the nonreceipt of goods or services, payment not made within 30 days of receipt of an invoice, or by the specified due date, will be considered a late payment.
(5) Regional disbursing offices shall forecast and request disbursing authority weekly based on bills on hand required to be paid during the following week. The Office of Fiscal Services, Finance Division, shall ensure that appropriate measures are taken with the U.S. Treasury in Washington, D.C., to make available sufficient funds.
(6) The Office of Fiscal Services shall conduct a review of balances of unused disbursing authority at the end of each month to ensure the ongoing monitoring of cash balances under FHWA control not earning interest.
(1) Bills for goods or services provided to FHWA will not be paid until receipt ha been acknowledged. Every effort will be made to make all payments in a timely manner and in a manner that most favorably reflects on the cash position of the U.S. Treasury. It should be noted that in order for a payment to qualify for a discount, unless a specific written agreement exists otherwise between FHWA and the supplier. Payment data must consequently be submitted sufficiently in advance of the discount date to allow for processing by the U.S. Treasury and subsequent mailing and delivery by the U.S. Postal Service.
(2) Payments will not be made to achieve discounts unless the related goods or services have been received, except as specifically provided by contract or other agreements executed pursuant to law.
(3) Determination as to whether prompt payment discounts are cost effective will be made in accordance with I TFRM 6-8040.30, which provides a formula for converting sales discount terms to an effective annual interest rate to be used as a comparison against the percentage are based on the current value of funds to the U.S. Treasury. Discounts will only be taken when the discount terms applied in the conversion formula yield an effective interest rate equivalent to or greater than the percentage rate based on the current value of funds to the Treasury.
Federal funds advanced by FHWA shall be limited to the minimum amount of cash required to carry out the purpose of the approved advance and careful consideration shall be given to timing the advance to coincide with the actual cash need. Amounts advanced to employees for travel, other Government agencies for services, working capital funds and other recipients shall be closely monitored (at least monthly) to insure that advances are not in excess of immediate needs and that balances arereturned immediately when determined to be in excess or no longer needed.
(1) All bills for collection are required to be issued with information that established a due date for payment, providing for an interest penalty for payments received after the established due date. Source documents will be updated, insofar as possible, to include provisions for a penalty charge if the FHWA is required to bill for nonperformance under the terms of the agreement, as provided by I TFRM 6-8020.20. Agreements for periodic payment of an indebtedness will have a provision for interest charges at the Treasury rate current at the time the payment schedule is approved. All charges for late payments of bills for collection are to be deposited to miscellaneous receipts of the U.S. Treasury, Account 1499.
(2) Invoices for goods and services furnished to individuals and organizations outside the Government will be prepared and dispatched within one working day after the day the billing office is advised that the goods have been shipped or released or the services completed. The payment due date will not be more than 30 days from the date of the invoice. However, if the actual value of the goods or services cannot be determined on the day the invoices are to be prepared, the procedures provided in I TFRM 6-8020.10 will be followed.
(3) When the FHWA office responsible for collection determines that the administrative cost of collecting late charges exceeds the amount of the charges, it may at its discretion waive such charges. The determination will be supported by a prepared statement citing the amount of late charges to be waived, and the elements of costs and their estimated values that would be incurred in attempting to collect the late charges owed. Only direct processing costs will be considered in the cost comparison analysis, unless the indirect costs are significant and easily verifiable. Statements are to be signed by the preparer, and submitted for approval of the waiver by the appropriate official, as prescribed in FHWA Order 1-1, FHWA Organization Manual, who will also sign and date the statement as evidence of approval.
(1) Except for imprest funds held in FHWA regional and division offices, no cash will be held outside of the U.S. Treasury.
(2) Regional Administrators and Direct Federal Division Engineers are responsible for conducting quarterly operational reviews of imprest fund use and balances, to ensure that such funds are commensurate with actual needs and do not exceed the maximum limitations, in accordance with I TFRM 4-3000.
(3) Imprest fund amounts in excess of actual needs will be promptly withdrawn and deposited in the U.S.Treasury.
The Office of Fiscal Services will conduct an annual review of the FHWA cash management program operations carried out by headquarters and field offices, in accordance with the responsibilities discussed in paragraph 4 above. A copy of the annual report of findings will be submitted to the Departmental Office of Financial Management (M-80), for review and submission to the U.S. Treasury as required by I TFRM 6-8080.30 and 8080.40.