Insurance fund and insurance appropriation accounting reason for issue

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3. STATUTORY REQUIREMENTS
4. ACCOUNT NUMBER PLAN

2. RESPONSIBILITIES

The Finance Officer, through the Chief of Accounting Section, is responsible for installation and operation of the insurance general ledger accounting system at field stations within the basic VA insurance accounting policies defined in this section and the general framework of accounts and procedures contained in this handbook. Finance personnel at field stations are responsible for rendering technical advice on all phases of insurance accounting matters, including analysis and interpretation of pertinent accounting data. Finance personnel at field stations are also responsible for the form and content of financial statements pertaining to insurance activities for use by local management.

3. STATUTORY REQUIREMENTS

The accounting system will conform to the statutory requirements set forth in MP-4, Part V, Chapter 1 (and its replacement handbook when issued). The accounting system will also account for transactions processed under the provisions of the veterans insurance laws of Title 38, United States Code, Chapter 19, and Servicemen's Indemnity Act of 1951.

4. ACCOUNT NUMBER PLAN

a. A 4-digit basic general ledger account number will be used for all insurance accounts prefixed by a 2-digit code. The first digit in the prefix will be "8" to identify the account with the insurance program. The second digit of the prefix will identify the particular insurance fund or appropriation involved as indicated in Figure A-1.

Account Number PlanCompanyFund CodeV818132RS828455RH834012H840120K858150J864010.07JR864010.08JS864010.09SGLI4009

> Double - click here To display Figure A-1. Account Number Plan

Figure A-1. Account Number Plan
NOTE: The 2-digit prefix is designed to identify insurance general ledger accounts ("8") from other VA accounts and the 1 through 7 codes are used to identify the individual insurance funds. These codes are not normally part of the general ledger master record maintained in the system (refer to the MSA/GEAC accounting users guide to determine which variations of these codes are used on accounting inputs). However, the 4-digit account number and the 2 digit suffix (paragraph (c)) are maintained as insurance accounting master records regardless of what software package and/or custom programs that may be in use at the VA.
b. The first digit of the basic account number will identify the class of account in accordance with the following design:

(1) Asset

(2) Liability or Accountability

(3) Income or Receipt

(4) Expense or Disbursing

(5) Budgetary

(6) Interoffice

(7) Statistical

c. To provide analytical data for management purposes and for reporting requirements, a two-digit decimal suffix will be used. The first digit of the suffix will be used to identify the following types of transactions.

.20 Cash collections

.30 Collections by offset, amounts applied to reduce indebtedness or as income by "no-check" vouchers on another journal type actions. (Excludes credits contra to receivables.)

.40 Premiums-extended or paid-up insurance

.60 Credits for receivables established

.70 Premiums-transfers and adjustments

.90 Assets acquired, liabilities paid or applied

d. The second digit of the suffix will identify various miscellaneous transactions when used with a specific account as follows:

(1) Whenever a policy lien, receivable, write-off or waiver account is used to process transactions for the 36X0120 appropriation, the second digit will identify the following segments of the fund:
._1 Military and Naval "T"

._2 NSLI "H"

._3 Servicemen's Indemnity
(2) Unapplied Collections

2064.01-Direct Collections

(Corresponding FMS SGL Account #: 2323.9089)
2064.02-Allotment/Deductions from benefits (DFB), Collections

(Corresponding FMS SGL Account #: 2323.9089)

(3) Undistributed Insurance Collections

3569.01-Direct Collections