Insurance fund and insurance appropriation accounting reason for issue

SECTION Q. MISCELLANEOUS

1. MAINTENANCE OF CASH JOURNALS
Cash Journals will be maintained manually or in a personal computer file for all funds so that the amount of disbursing authority available for disbursement or transfer will be known at all times. The balances in the journals will be analyzed regularly to determine the amount of disbursing authority needs as prescribed in paragraph D.1.
2. RECONCILIATION CONTROL ACCOUNT G/L ACCOUNT 8_7857.00
Certain accounting transactions may be processed by the ADP system which for various reasons cannot be posted to a valid account. The amounts involved are held in a pending status in general ledger account 8_7857.00 (Corresponding FMS SGL Account #: 9148.9089), until an adjustment entry is processed. Since there are no provisions for this account to appear on the consolidated trial balance, it is important that the transactions involved be adjusted prior to the final month-end processing runs for the station.
3. RECEIVABLE FOR OVERPAYMENTS
a. Overpayments of death or disability awards or XC dividends will be established in the accounts of the general master records as receivables, except in cases where the indebtedness will be completely liquidated by offset from the first subsequent installment due. All entries to the general ledger master records affecting receivables will be prepared from transaction documents.
b. Overpayments Created at Insurance Offices. Overpayments of death or disability awards or XC dividends created at insurance offices will be established as receivables in the accounts of the insurance offices. The contra credit entry will be made directly to the .6 analytical account of the disbursing account to which the erroneous payment was initially charged.
c. Cash Collection of Receivables. Cash collection of receivables includes collection deposited by SF 215 or by withholding from payments charged to another fund or appropriation and transfer to the insurance fund or appropriation for which collection was made. These collections will be deposited or credited to the account of the Treasury Regional Finance Center servicing the station maintaining the receivables for credit of that station.
d. Analyses of Accounts 8_1215.20 (Corresponding FMS SGL Account #: 1311.9089), 8_1227.20 (Corresponding FMS SGL Account #: 1010.9089) and 8_4225.2 (Corresponding FMS SGL Account #: 6725.9089) . Whenever a collection of an overpaid death or disability award or an XC dividend is made, whether by cash or voucher deduction, an OF 1017G will be prepared. The OF 1017G will completely identify the overpaid account and show the policy number affected by the collection. If the collection is reversed as a result of an uncollectible check, another OF 1017G will be prepared to reverse the OF 1017G prepared at time of collection.
e. Collection of Receivables by Offsets. A collection of receivables by offsets refers to collection made by offset from payments charged to the same insurance fund or appropriation. The gross amount of the payment will be charged to the disbursing or other appropriate account, crediting the .3 analytical receivable accounts with the amount withheld and crediting the disbursing authority account with the net amount certified for payment, if any. If a check drawn on a voucher from which an offset collection for a receivable was made is canceled, the entry made from the voucher will be completely reversed.
f. Waiver of Overpayments. When a recovery of an overpayment is waived, two signed copies of VAF 4-1837, Decision on Waiver of Indebtedness, will be furnished the Accounting Section. One copy will be the medium for crediting the .3 analytical receivable accounts with contra debit to the appropriate waiver account. The total of the waiver documents submitted each month must be in agreement with the total amount debited to the appropriate waiver account.
g. Write-off of Receivables. Accounts receivable will be reduced by the amounts which have been determined to be uncollectible. The write-off of the receivable will be documented by a memo prepared in the Operations Section and will be forwarded to the Accounting Section. For the posting of the credit entry to the .3 analytical receivable account with contra debit to the receivable write-off account. The memo will bear the approving signature of the Finance Officer or Acting Finance Officer and will identify the uncollectible receivable by name of debtor, file number, etc., and will indicate that the receivable has been determined uncollectible.
h. Collection of Receivables Previously Written Off. If, subsequent to the writing off of a receivable as uncollectible, a cash collection is made on such account, the related SF 215 will be the medium for a credit entry to the .2 analytical account of the receivable write-off account. If the collection is by offset from payment made from the same insurance fund or appropriation, the amount collected by offset will be credited to the .3 analytical account of the receivable write-off account.
i. Collection and Transfer of amounts Withheld as Insurance or Other Repayments and Receipts:
(1) Collections of insurance receipts and repayments which are withheld from insurance funds will be initially accumulated in the statistical general ledger account (7100 series).
(2) Amounts withheld for credit to other than insurance funds will be accumulated in general ledger account 8_7116.00 (Corresponding FMS SGL Account #: 9140.9089), pending transfer.
(3) The accumulated amounts will be transferred in the same month that they are withheld. The "Zero Balance" report generated by the MSA/GEAC ADP accounting system will show a balance in the statistical holding account if the transfer has not been made. Every effort will be made to process the transfer prior to the final accounting runs for the month. However, if a balance is shown on the report at the time the accounting runs are made in the month of September, the transfer must be made in the month of September prior to the final processing runs. If necessary the final runs will be reprocessed to accomplish the transfer.
(4) SF 1081/OF 1017G as applicable will be used to accomplish the transfer.

4. VETERANS MORTGAGE LIFE INSURANCE (VMLI)
a. As a result of Public Law No. 100-322, the VMLI administrative function was transferred from the private sector to the VA effective September 1, l988.
NOTE: VMLI policyholders are accounted for in appropriation 36X0120.
b. Accounting for VMLI will be done at the Finance Division (241) in Philadelphia and in the VBA ORM Accounting Policy and Reporting Division (101/241B). Philadelphia Finance will account for the financial operations of VMLI and the VBA ORM Accounting Policy and Reporting Division (101/241B) will record all funding related activities.
c. VA Benefits Delivery Center Hines will annotate the DFB listing (VMLI policyholders paying premiums via deduction from their C&P pension) to show the check number and voucher number. The listing will be mailed from Hines to Philadelphia on approximately the 25th of each month. The funds that are supported by the DFB listings are received through IPAC- Hines will provide a documented reconciliation when the VMLI funds do not equal the amount on the related listings.
d. VMLI policyholder premiums paid directly (not through C&P System) to Philadelphia will be closely monitored via monthly reconciliations between Insurance and Finance Division records. Premium refunds will be made through Finance Division.
e. Finance will prepare and send a MSA/GEAC trial balance for VMLI operations to the VBA ORM Accounting Policy and Reporting Division (101/241B), which will use the trial balance to manually record additional funding related entries and to update the computer generated trial balance for 36X0120.
f. General ledger accounts for VMLI program are contained in Attachment 1 (formerly VA Manual MP-4, Part V, Chapter 8, Appendix K).