**CONTENTS**

**CHAPTER** **34. INSURANCE COLLECTIONS POLICY**

PARAGRAPH PAGE

SUBCHAPTER 1 - GENERAL 34-1

34.01 ORGANIZATION 34-1

34.02 FUNCTION 34-1

34.03 RESPONSIBILITY-COLLECTIONS ACTIVITY 34-2

34.04 COLLECTIONS MANAGEMENT 34-3

34.05 REPORTING DAILY INSURANCE COLLECTIONS ON AS DEPOSITED BASIS 34-3

34.06 SECURITY AGAINST LOSS 34-4

34.07 ENDORSEMENT OF REMITTANCES 34-5

34.08 REMOVAL OF POSTAGE STAMPS 34-5

34.09 AUTOMATIC RE-PRESENT OF CHECKS BY FRB 34-5

SUBCHAPTER 2 - PROCESSING OF REGULAR (DOMESTIC/NON-CASH) COLLECTIONS
REMITTANCES 34-6

34.10 GENERAL 34-6

34.11 DEPOSIT OF REGULAR REMITTANCES (DOMESTIC) 34-6

34.12 NONNEGOTIABLE REMITTANCES 34-7

34.13 UNCOLLECTIBLE REMITTANCES 34-7

SUBCHAPTER 3 - REMITTANCES FROM OTHER VA STATIONS AND/OR CASH 34-8

34.14 DAILY CASH LEDGER 34-8

34.15 PROCESSING 34-8

34.16 DISASSOCIATED CASH - NO-NAME REMITTANCE 34-10

SUBCHAPTER 4 - PROCESSING AND DEPOSITING FOREIGN REMITTANCES 34-10

34.17 GENERAL 34-10

34.18 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN UNITED STATES
DOLLARS 34-11

34.19 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN FOREIGN CURRENCIES
34-11

34.20 FOREIGN CASH 34-12

SUBCHAPTER 5 - MANILA INSURANCE COLLECTIONS 34-13

34.21 GENERAL 34-13

34.22 MANILA INSURANCE COLLECTIONS-MANILA PROCESSING (AGENT CASHIER)
34-13

34.23 MANILA INSURANCE COLLECTIONS - PHILADELPHIA PROCESSING 34-14

SUBCHAPTER 6 - MONTHLY TREASURY CHECKS FROM SERVICE DEPARTMENTS 34-14

34.24 PROCESSING 34-14

SUBCHAPTER 7 - SERVICEMEN\'S GROUP LIFE INSURANCE (SGLI) PREMIUM
PAYMENTS 34-14

34.25 GENERAL 34-14

34.26 PROCESSING CHECKS RECEIVED FROM UNIFORMED SERVICES 34-15

34.27 PAYMENTS TO THE INSURER 34-15

# Number range chapterCHAPTER 34. INSURANCE COLLECTIONS POLICY

## SUBCHAPTER 1 - GENERAL

### 34.01 ORGANIZATION

The Insurance Collections Activity is within the organizational
structure of the Policyholders Services Division, operating as the
Collections Section in the Philadelphia VA Regional Office and Insurance
Center. In the St. Paul VA Regional Office and Insurance Center, the
Collections Section is within the organizational structure of the
Finance Division. Where reference in this chapter is made to
\"Collections Activity\" or \"Collections\", identification is made with
the Insurance Collections Activity of the Policyholders Services
Division, or Finance Division, Collections Section.

### 34.02 FUNCTION

a\. The Collections activity receives and processes for deposit and
credit to proper accounts, remittances received from the following
sources:

\(1\) Direct from insureds.

\(2\) Agent cashiers at VA field stations (Forwarded for deposit and
processed similarly to direct remittances).

\(3\) Remittances tendered to the agent cashier at Manila, P.I. which
are deposited to the designated depository of the Treasury at Manila for
the credit of the Philadelphia VA Regional Office and Insurance Center
(processed similarly to direct remittances).

\(4\) Military services in the form of a single check from each service
component covering Type \"N\" allotment deductions, the detail posting
of which is processed via mag-tape transfer through the Insurance ADP
system (Philadelphia only).

\(5\) Military services in the form of a single check and paper listing
for in-service personnel who are having their insurance premium payments
deducted from their in-service pay (type \"I\" allotments). These
payments are received monthly in the Collections Activity (Philadelphia
only). Collections personnel will process these payments as no-doc
payments using the no-doc screen on the RPS system and deposit the
service department check as a multi-doc single check transaction in
order to update the individual accounts.

\(6\) Premium payments and loan/lien repayments deducted from VA
benefits (Philadelphia only). These payments are updated via mag-tape
transfer and SF 1081, \"Voucher and Schedule of Withdrawals and
Credits\" supplied by the Hines IL BDC to the Philadelphia BDC. The
related individual accounts are updated by the Insurance ADP system and
the accounting medium is controlled by the Accounting Section of the
Finance Division.

\(7\) Insurance Premium payments received through Electronic Fund
Transfer (EFT) known as Preauthorized Debits (Philadelphia only). These
payments are preauthorized by the policyholder and are automatically
taken from his/her checking account on the premium due date. The premium
transfer is accomplished via electronic data transfer between the
Philadelphia BDC and the Philadelphia Federal Reserve Bank (FRB). The
Philadelphia Collections Activity is responsible for controlling the
output produced by the BDC to be sent to the FRB as well as controlling
the output from the collections sort run once the ADP system has
selected the accounts for monthly update. Collections will also control
the output received from the FRB that itemizes the changes and return
items.

b\. The Philadelphia Collections Activity is also responsible for
processing certain collections items for the Loan Guaranty Service as
follows:

\(1\) Monthly Portfolio Loan payments from individuals repaying VA owned
mortgages. These payments are processed through the RPS system and the
accounts are updated via electronic data transfer to the Austin
Automation Center in Austin Texas.

\(2\) Individual Funding Fee payments received from a variety of lending
organizations representing the fee assessed by the Department on all VA
Home Loan guarantees.

These payments are processed through the RPS system using the \"no-doc\"
screen and the individual transactions are then transferred
electronically to the Austin Automation Center.

c\. The St. Paul Collections activity is also responsible for processing
certain collections items for the Agency as follows:

\(1\) All Centralized Accounts Receivable Systems (CARS) payments
received from veterans and beneficiaries who are repaying an
indebtedness to the Agency. These payments are processed through the RPS
system and the accounts are updated via electronic data transfer to the
Austin Automation Center.

\(2\) All Education Loan Payments (EL) for the Education Service. These
payments are processed through the RPS system and the accounts are
updated in the St. Paul WANG data base.

\(3\) All Veterans Mortgage Life Insurance (VMLI) payments whether they
are transferred via magnetic tape, remitted direct through the
Accounting Section or paid direct through the Agent Cashier.

### 34.03 RESPONSIBILITY-COLLECTIONS ACTIVITY

a\. The primary responsibility of the Collections activity is to process
remittances promptly and to ensure that the remittances are properly
credited to the individual\'s account. This is essential in order to
permit the availability of these funds for investment earnings and for
application to the proper Insurance, Loan Guaranty or Education,
Compensation and Pension subsystem accounts.

b\. Collections is also responsible for making daily deposits in a
timely manner and to provide the Accounting Section with deposit
information broken down by application and insurance fund and deposit
information for the Loan Guaranty applications.

c\. The Collections activity writes and maintains detailed operating
instructions for processing all Insurance remittances. A copy of these
procedures is distributed to all personnel in the Collections Activity.
The Collections Activity also follows the procedures outlined by the
Director, VBA Finance Staff (241) for processing all Loan Guaranty,
Education Loan and CARS remittances. These instructions address both
Open and Closed Mail processing, for all remittance activities as
follows:

\(1\) Premium, loan, lien and interest collections

\(2\) Loan Guaranty Portfolio Loan and Funding Fee Payments

\(3\) Education Loan and Centralized Accounts Receivable payments

\(4\) Preauthorized Debit (EFT) receipts

\(5\) Deposit reconciliation and/or Federal Reserve bank reconciliations

\(6\) Unassociated and/or Unidentified collections

\(7\) Audit trail requirements and/or Micro filming requirements

\(8\) Premium notices and payments received and deposited in the wrong
office

\(9\) Manila collections (VA Regional Office and Insurance Center,
Philadelphia only)

\(10\) Premiums paid as billed, Premiums not paid as billed, Premiums,
correspondence, etc.

### 

### 34.04 COLLECTIONS MANAGEMENT

a\. Workload reports (beginning balance, received, processed, and ending
balance) will be maintained daily to determine equipment and/or
personnel requirements to accomplish the following:

\(l\) To keep collections receipts current to preclude unnecessary lapse
of policies, late payment notices, mortgage foreclosures, late Funding
Fee notices, etc.

\(2\) To practice the most efficient form of cash management within the
budgetary restraints imposed on the Department of Veterans Affairs.

NOTE: Cost per remittance calculations, along with computing
specifications, will be periodically requested by the Director, VBA
Finance Staff (241).

b\. Remittance processing equipment should generate collections
management data as follows:

\(1\) Fund Distribution Reports

\(2\) Payment Analysis (Operators and Types)

\(3\) Cash Control Reports

\(4\) Operator Statistics

\(5\) Modification of Deposit and/or Security Reports

\(6\) Miscellaneous batch summaries and crossfoot checks

\(7\) Portfolio Loan Stopfile Reports

c\. In order to retrieve deposit information, all remittances and/or
billing documents will be imprinted with sufficient audit trail
information and microfilmed. Remittances must be encoded to comply with
Treasury Fiscal Requirements Manual (Part 6, Chapter 8000-Cash
Management) and endorsed according to the current FRB guidelines.

### 34.05 REPORTING DAILY INSURANCE COLLECTIONS ON AS DEPOSITED BASIS

a\. Deposit Tickets are prepared daily for the following remittances:

\(l\) Preauthorized Debits,

\(2\) Direct Payments (checks and money orders),

\(3\) Cash.

b\. These tickets are hand carried to the Finance Division for their
action on the same day the deposit is forwarded to the Federal Reserve
bank. Disbursement authority against the Deposit Ticket(s) for the day
is recognized even though the deposit has not been released to the
Federal Reserve bank.

### 

### 34.06 SECURITY AGAINST LOSS

a\. Adequate precautionary measures will be taken and extreme caution
will be exercised at all times to prevent the loss, destruction, or
misplacement of all remittances and records through negligence, fire or
theft. Fireproof vaults and safes will be used to store all remittances,
together with attachments, on hand at the close of business each
workday.

NOTE: Supervisory employees of the Collections activity are charged with
the responsibility of placing all remittances in the safes or vaults at
the close of business and, after locking vaults and safes, will certify
to that fact by signing a record book maintained by the Collections
Section Chief. As a further precautionary measure, the chief or other
designated employee will check all vaults and safes in the Collections
activity to insure they are locked.

b\. Access to the Collections activity will be limited to Collections
personnel and employees who are authorized to pick up and deliver
remittances. In St. Paul, digital combination locks which allow entry
into the Collections activity will be changed quarterly.

c\. All Collections personnel with access to the Remittance Processing
Terminals, Data Management Center, and Intelligent Communications
Processor, will have their passwords changed every four months. Changing
the passwords is a utility that is available in the Banctec software
package. How to use this utility is described in the Banctec manual.

d\. The chief guard will be furnished with the name, home address, and
telephone number of the responsible official to be notified, should an
emergency involving security arise after business hours.

e\. When an evacuation is declared, and all personnel have left the
Collections activity (Philadelphia), the Policyholders Services Division
Chief will verify with security headquarters that the alarm was
activated.

f\. Prior to the disposal of VA remittance bearing envelopes, they are
examined to assure that all contents have been removed. This is done by
use of an Automatic Mail Extractor with a special sensor to pick up any
remaining contents of an envelope.

g\. Inflammable materials, wastepaper containers and supplies must be
stored in a manner that does not constitute a fire hazard. Fire
extinguishers should be placed at strategic points to be easily
accessible in case of fire. Smoking is prohibited in the Collections
site. Wastepaper baskets should be kept to a minimum, and the contents
examined by employees at the close of business each workday to insure no
pertinent materials were inadvertently discarded. No remittance bearing
envelopes will be disposed of in wastepaper baskets but will be disposed
of in boxes designated specifically for envelopes.

### 34.07 ENDORSEMENT OF REMITTANCES

a\. All remittances made payable to \"Department of Veterans Affairs,\"
\"Treasurer of the United States,\" or any abbreviation thereof will be
deposited with the VA endorsement as specified by FRB directive.

b\. There are also special endorsements which must be made when the
remittance is made payable to other payees:

\(1\) Insurance remittances made payable to \"National Service Life
Insurance,\" \"United States Government Life Insurance\", or other
remittances with any other abbreviation thereof, or to an official of
the VA by name or title, must be specifically endorsed to read as
follows:

ABSENCE OF PAYEE\'S ENDORSEMENT WAIVED

DEPARTMENT OF VETERANS AFFAIRS

\(2\) Checks which are made payable to the insured, but not endorsed by
that person, require special endorsement. For such checks the
endorsement to be used will read as follows:

CREDITED TO THE ACCOUNT OF THE WITHIN-NAMED PAYEE

ENDORSEMENT WAIVED

DEPARTMENT OF VETERANS AFFAIRS

c\. In instances where banks refuse to accept a special endorsement, the
returned check will be processed as an uncollectible remittance.

d\. Loan Guaranty remittances will be stamped \"FOR VA DEPOSIT ONLY\"
before they are released to the Philadelphia Finance Division.

### 34.08 REMOVAL OF POSTAGE STAMPS

Postage stamps are not to be removed from envelopes since re-use of
non-canceled stamps is not permitted. Also, envelopes should not be
defaced or marked in any way that might destroy the postmark.

### 34.09 AUTOMATIC RE-PRESENT OF CHECKS BY FRB

The Federal Reserve banks will automatically re-present uncollectible
checks once unless the reason for refusal of payment is in a category
similar to the following:

\(1\) Maker deceased

\(2\) Account closed, transferred, or no account

\(3\) Signature missing, or defective

\(4\) Payment stopped

\(5\) Payable to third party

\(6\) Stale date or postdated

## SUBCHAPTER 2 - PROCESSING OF REGULAR (DOMESTIC/NON-CASH) COLLECTIONS REMITTANCES

### 34.10 GENERAL

a\. Mail presumed to contain a remittance will normally be any mail
enclosed in an envelope with

P.O. Box 7787, P.O. Box 13129 and P.O. Box 13136. The mail is classified
as either Closed Mail or Open Mail.

\(1\) Closed Mail is mail received at one of the VA specified Post
Office Boxes for remittances,.

\(2\) Open Mail is all commercial mail sent to a P.O. Box other than the
VA assigned P. O. Boxes, or any mail which requires a clerical action
before deposit processing.

b\. A count of remittances is made upon receipt to plan the processing
and to monitor workloads. The count for Closed Mail is made by weight or
tray-count formula, Open Mail is hand counted. A daily inventory is made
of the mail on hand for purposes of determining workload requirements.

c\. Any remittances found by the Administrative Division during the
examination of their regular mail are hand carried to the Collections
Unit. Processing of the Open Mail items begins on the date of its
receipt or on the date it is identified as Open Mail by Collections
personnel.

d\. When Closed Mail is stored in a safe or vault pending processing, it
is marked to indicate the date of its receipt. Closed Mail is always
processed by date received.

e\. All collections input must contain a Postmark Date (PMD). The PMD
will be determined for the various types of mail as follows:

\(1\) Open and Closed Mail. The Closed Mail PMD used is always the
fourth day prior to the date of its receipt, excluding Sundays and
holidays. The Open Mail PMD is the third day prior to the date of its
receipt, excluding Sundays and holidays.

\(2\) Registered or Certified Mail. The actual PMD will be used.

\(3\) Remittances from Agent Cashiers. The actual date of receipt on the
VA Form 4-367, Counter Receipt -

Government Life Insurance, will be used as the PMD.

NOTE: A statistically sound sample will be made periodically to validate
the elapsed time from the PMD to date of receipt. Any recommendation to
change the PMD determination procedures as a result of the sample will
be forwarded to the Assistant Director for Insurance at the VAROIC,
Philadelphia, PA.

### 34.11 DEPOSIT OF REGULAR REMITTANCES (DOMESTIC)

After the remittances have been reconciled, encoded, imprinted with
audit trail information and microfilmed, they will be prepared for
deposit as follows:

a\. An FS 215, Deposit Ticket, will be prepared in accordance with
appropriate guidelines (Treasury Fiscal Requirements Manual for Guidance
of Departments and Agencies, Part 5 - Deposit Regulations).

b\. A VA Form 4-1622, Transmittal List of Posting Media and Report of
Distribution, will be prepared for accounting support and/or run 155
reconciliation.

c\. The agent cashier has verified the counter receipt copies
representing cash, and the cash control machine receipts, with the
adding machine tape for cash to be deposited. Bank drafts and cash will
be exchanged for the cash control machine receipts, which will be filed
in serial number order.

d\. A VA Form 4-1011, Record of Shipment of Valuables, will be prepared.

e\. The completed Federal Reserve bank deposit, including the grand
total adding machine tape, and all copies of SF 215, except the agency
and memorandum copies, will be packaged for forwarding to the
depository. The agency and memorandum copies of the deposit will be sent
to the appropriate Accounting Section at the time the deposit is
dispatched to the Federal Reserve bank. When the receipted copies of the
SF 215 are returned, the appropriate Accounting Section will return the
agency copy to the Collections activity for its information and records.

### 34.12 NONNEGOTIABLE REMITTANCES

a\. The following types of remittances are, for purposes of these
instructions, classified as nonnegotiable:

\(1\) Checks not completed and/or signed

\(2\) Remittances made payable to wrong payee (see exceptions in par.
34.07, Endorsement of Remittances)

\(3\) Postage stamps

\(4\) U.S. Savings Bonds

\(5\) Postdated checks (returned by Federal Reserve bank or found during
processing)

\(6\) Mutilated remittances

\(7\) Written and numerical amounts do not agree

b\. When processing nonnegotiable remittances, care will be taken by the
collections cash clerk to assure that all related material is attached
to the premium notice, including the envelope. All such remittances will
subsequently be reviewed by a supervisor who will make a final
determination concerning the negotiability of each remittance. Those
determined to be negotiable will be introduced into the current deposit.
Those determined to be nonnegotiable will be returned to the
policyholder with the appropriate explanation.

### 34.13 UNCOLLECTIBLE REMITTANCES

a\. The memorandum and confirmed copies of the SF 5515, Debit Voucher,
with uncollectible remittances attached will be received from the
depository. The depository will retain the original and duplicate for
their records.

b\. The Collections activity will identify the application for which the
item was originally processed and note the information, including the
insurance fund for insurance remittances, on the confirmed copy of the
SF 5515 and forward it to the appropriate Accounting element for
posting.

c\. The uncollectible remittances will be processed through the system
and/or reconciled with the Federal Reserve bank via local operating
instructions.

## SUBCHAPTER 3 - REMITTANCES FROM OTHER VA STATIONS AND/OR CASH

### 34.14 DAILY CASH LEDGER

a\. A daily bound columnar ledger with printed prenumbered pages is
maintained by the Collections Activity. This ledger is used to control
the receipt and deposit of all collections from field stations and cash
received with payments. Pertinent information will be entered to
identify the source of the money as follows:

\(1\) Forwarding Office (City and State)

\(2\) Schedule No. (prefixed by Station No.)

\(3\) Number of items

\(4\) Certified or Registered Mail No.

\(5\) Total amount of the schedule

\(6\) Total local cash and source

b\. Entries to the ledger for field stations are made in station number
sequence.

c\. Cash received for loan guarantee and insurance payments in the
Philadelphia ROIC, Collections section, must be handed to the
supervisor. The cash clerk will hand in the entire contents of the
envelope and will annotate the cash amount, date and his/her operator
number.

\(1\) At that time, the supervisor will record in the cash ledger the
following: PMD, name, file number, check amount (if any), cash amount
and the bank I.D.

\(2\) The supervisor will then walk to the VA Federal Credit Union and
obtain money orders for the cash amounts. Separate money orders are
obtained for insurance, portfolio loans and funding fees. The supervisor
indicates on each payment document the cash amount and the check amount
and then indicates the total amount that each account is to be credited.
The supervisor then balances the total document payments with the total
of the check amounts plus the money order amount.

\(3\) The payments are then taken by the supervisor to the terminal
operator, who then inputs the transaction into the system.

### 34.15 PROCESSING

a\. Remittances ready for processing (including cash) generally come
from three sources: (a) Collections Unit/Section (b) Mail Unit, Veterans
Assistance or Administrative Divisions, and (c) Agent Cashiers, VA
offices nationwide. There are instances where remittances could come
from any other division also. A description of applicable processing
procedures follows:

\(1\) Cash Processing

\(a\) Collections. Any cash and related material is taken immediately to
the supervisor who will verify the amount and record the receipt of cash
in the cashbook. The cash is kept in a locked cash box maintained by the
designee who handcarries the cash and related material to the Credit
Union once a day.

\(b\) Mail Unit. Cash is entered in the Registry Log maintained in the
Mail Unit and subsequently hand carried to the agent cashier.

\(2\) Cash and Other Remittance Processing - When a payment is made to
the agent cashier, a VA Form 367, Counter Receipt-Government Life
Insurance Form is prepared. This is a four part form. Part one is the
original white customer copy, and will be given to the customer if
present, or retained by the agent cashier. Part two is used when payment
is made by check or money order. This copy is paper clipped to the
check, and forwarded to Collections. Part three is a yellow copy used
when a payment is made in cash. Part four serves as documentation for
the station of the disposition of accountable funds.

\(3\) Remittance Processing From Other VA Stations

\(a\) All remittances, copies two and three of VA Form 367, Counter
Receipt - Government Life Insurance, and VA Form 1551, Transmittal
Schedule of Insurance Collections are sent certified or registered by
the Station Agent Cashier to the receiving Agent Cashier.

\(b\) The receiving cashier, in the presence of another clerk, opens the
items and verifies the contents by checking the remittances with the VA
Form 367 and the VA Form 1551. Contents should include the schedule in
duplicate and copies 2 (white) and 3 (yellow) of the counter receipts
with remittances. The cashier will count any cash and sign and date both
copies of the transmittal schedule when found to be correct. The
duplicate copy of the schedule will be returned to the originating
office.

[1]{.underline}. Should a discrepancy be found in the amounts, schedule
and/or the amount actually received, and it is not of a serious nature
(i.e. typing error), the agent cashier can make and note the necessary
changes and forward VAF 1551 back to the forwarding office. However,
should the discrepancy be of a serious nature, (i.e. incorrect amount of
cash or check), the issuing office is notified by phone, and the entire
package is returned certified by the receiving agent cashier. If a
response adjusting and explaining the discrepancy is not received within
5 days, the Director of the field station will be notified directly and
requested to conduct an investigation as to the reasons for the delay in
adjusting the discrepancy.

[2]{.underline}. In those instances where there is a discrepancy in the
total amount on the VA Form -1551 or in the amounts shown on the VA Form
367, the transmittal will not be receipted but will be retained until
the information is received from the transmitting field station
adjusting the discrepancy. The VA Form 367 and corresponding remittances
which are in order will be released for processing and deposit.

\(c\) After verification, the cashier will separate the items received
from field stations by respective categories (i.e. cash items, check
items etc.). A processing day number will then be supplied by the
Collections Unit.

\(d\) If the VA Form 1551, Transmittal Schedule of Insurance
Collections, is properly completed, the cashier will process the
remittances as follows:

[1]{.underline}. General Processing Parts #2 and #3 of VAF 367 will be
associated with either cash, drafts, money orders, or checks depending
on the type of payment made. They will then be stacked in groups
accordingly. An adding machine tape will be done for each group and
associated. A VAF 4522 (Register Log Sheet) is then prepared in
duplicate, and each counter receipt is listed with the following
information: (l) Counter Receipt Number, (2) Insured\'s name, (3)
Forwarding R.O., (4) Remittance Amount, (5) Deposition (i.e. cash,
drafts or checks). Each group total is then placed together on a tape.
This tape is then compared to the individual tapes to verify that they
equal. The VAF 4522\'s are then signed, and one is associated with the
package and the other is filed in the Agent Cashier Office.

[2]{.underline}. Check Items. All correspondence associated with the
check payment and part #2 (white copy) of the VAF 367 form are paper
clipped together and placed in a stack. All check items are added
together. The adding machine tape is done in duplicate. One copy of the
tape is attached to the check items and the other copy of the tape is
attached to the VAF 4522 (Register Log Sheet). When a premium notice is
received with a check item, the PMD is verified as shown on the Counter
Receipt (\"DATE PAID\" block) with the date of the check. If the PMD is
the same as the date of the check, the premium notice with the check
will be released to the Collections activity by category. When the date
of the check is in variance with the PMD on the Counter Receipt, the PMD
will be entered in pencil immediately above the date on the check, and
released by category to the Collections activity.

[3]{.underline}. Cash Items. All correspondence associated with a cash
payment and part #3 (yellow copy) of the VA 367 are paper clipped
together, and placed in a stack, aside from the actual cash. The cash is
broken down according to denomination and recorded on a Cash 215
(Currency Deposit with Federal Reserve Bank of Philadelphia) Form. An
adding machine tape is done in duplicate for all the VAF 367\'s (yellow
copies). One tape is attached to the cash items, and the other tape is
attached to VAF 4522. The cash remains in the safe in the Agent
Cashier\'s Office until a Deposit Ticket (Standard Form 215) is prepared
by Collections. In addition a typed Currency Deposit Cash Slip (215) is
done in triplicate. This readies the cash for deposit.

[4]{.underline}. When the daily accountability has been completed, the
cashier will prepare an adding machine tape from all the receipts,
verifying the total against the figure supplied from the Daily Summary
Ledger. When these totals agree, all remittances will be released
accordingly.

### 34.16 DISASSOCIATED CASH - NO-NAME REMITTANCE

a\. Cash which obviously has, through handling, become separated during
routine processing and which cannot be positively reassociated, will be
processed for deposit as follows:

\(1\) The cash will be taken immediately to the supervisor, who will
enter it in the cash book in ink and, along with the reporting employee,
initial the entry. If more than one such instance occurs during the day,
the cash will not be consolidated. The money in each instance will be
reported as a separate \"No Name\" case.

\(2\) The supervisor will take the cash to the credit union and obtain a
money order. The money order will be classed as an unidentified
\"No-Name\" remittance and will be redeemed in the regular manner.

b\. Disassociated cash received from the Mail Unit, Administrative
Division, will also be processed in accordance with the same procedures.

## SUBCHAPTER 4 - PROCESSING AND DEPOSITING FOREIGN REMITTANCES

### 34.17 GENERAL

a\. A foreign remittance, for the purpose of categorizing items for
processing, is foreign cash or any negotiable instrument drawn on a
financial institution located outside the United States, whether written
in a foreign currency or United States dollars. The only exception to
this definition is a check written on a bank in Guam, Puerto Rico or the
Virgin Islands which contains a bank routing and transit number; these
items will be processed as though they were domestic.

b\. The SF 215, Deposit Ticket, is prepared in accordance with paragraph
34.12b. Specific deviations for the different types of foreign
remittances are explained in subsequent paragraphs. The certificate of
deposit for foreign deposits are numbered from the 5000-6999 series of
numbers, beginning with number 5000 each fiscal year.

NOTE: To facilitate the identification of accounts on which foreign
checks were credited and for general reference about the status of
collection of foreign remittances, a suspense file of VA Forms 4-8627 is
maintained by the Collections activity for 6 months and disposed of in
accordance with RCS VB-1.

### 34.18 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN UNITED STATES DOLLARS

a\. When a check is received in the Collections Unit that is drawn on a
foreign bank but paid in U.S. dollars, the following procedures are
followed:

\(1\) The cash clerk gives the check and any accompanying correspondence
to the Unit Chief.

\(2\) The Unit Chief prepares the check for processing by circling the
U.S. dollar amount in red and also in red indicates the file number,
name code and the policy number across the top of the check.

\(3\) A Certificate of Deposit is obtained from Miscellaneous Accounts
and Services Unit, (MASU) and a CD (Form 215) is prepared by the Unit
Chief according to set procedures.

\(4\) Upon completion of the CD, the Unit Chief returns the agency copy
of the CD to MASU. MASU sees that this copy goes to Finance with the
day\'s work.

\(5\) The payment is prepared for terminal insertion. After insertion,
the checks are microfilmed and returned to the Unit Chief.

\(6\) The Unit Chief removes the memorandum copy of the CD and retains
it eventually to be filed in MASU.

\(7\) A record of Shipment of Valuables (VA Form 1011) is prepared. It
is signed by the lead clerk and a witness. The checks and the remaining
copies of the CD are placed in an envelope addressed to Citibank. The
sealed envelope, the record of shipment of valuables, and a prepared
certified mail card are hand carried to the mailroom by the lead clerk.

\(8\) After mailing, the Record of Shipment of Valuables is returned to
Collections by the mailroom and inserted in a binder by the Unit Chief.

\(9\) Once Citibank processes the check/s, a confirmed copy of the CD is
returned to Collections and is given to MASU and forwarded by them to
Accounting.

### 34.19 REMITTANCES DRAWN ON FOREIGN BANKS PAYABLE IN FOREIGN CURRENCIES

When a foreign check is received in the Collections Unit that is to be
paid in foreign currency, the following procedures are followed:

\(1\) Upon receiving the check, a diary message is inserted \"For Check
Pending 292F1\", with a call-up date

120 days from PMD of the check.

\(2\) The next available C.D.# is selected and recorded in the Unit
Foreign Check-Foreign Currency Log book.

\(3\) The blank C.D. is filled out and copies #2 and #4 are retained.

\(4\) The remaining copies of C.D. and checks are mailed (certified) to
CitiBank, New Hyde Park, NY 11042.

\(5\) After CitiBank processes checks, confirmed copy of C.D. (green
copy) is returned. A PSEUDO DOC (Form 4-3676) is prepared for each
check.

\(6\) The DOCS are separated according to postmark date and target slips
are prepared for each postmark date.

\(7\) The target slips and DOCS are given to the RDC operator and then
to the photo operator to be filmed.

\(8\) The green and yellow copies of C.D. are forwarded to MASU for
filing.

\(9\) The conversion amount is recorded in the Unit Foreign Check Log
book and the diary message is deleted.

### 

### 34.20 FOREIGN CASH

a\. Foreign currency and all related documents received in the Mail Unit
are hand carried to the immediate supervisor, where it is recorded in
the supervisor\'s cashbook. The supervisor delivers the currency to the
cashier with other cash found during the routine processing.

\(1\) The cashier initials a log kept by the Mail Unit for receipt of
the cash. VA Form 367 is prepared assuring the type and amount of
foreign currency is noted. The original is returned to the insured with
FL 4-298, Information to Insured Regarding Remittance for insurance
payments. Copy 2 is retained by the cashier, and copies 3 and 4 are sent
with any enclosure to the Collections activity. For other Collections,
the cash is deposited with the Agent Cashier as described above and the
appropriate Finance activity is notified.

\(2\) The Collections activity prepares the input, which is identical to
that of remittances drawn on foreign banks payable in foreign
currencies. Copy 3 of the counter receipt is exchanged for the cash when
the deposit has been prepared, and copy 4 accompanies the Deposit Ticket
sent to the Accounting Section for control..

\(3\) Disposal of copies 2 and 3 of the counter receipt is accomplished
by the cashier in the same manner as receipts for domestic items
received from agent cashiers.

b\. Each foreign currency is deposited on an individual Deposit Ticket
which is completed in the usual manner, except the amount of deposit is
not completed. The deposit is mailed to:

Federal Reserve Bank of New York

Foreign Department

New York, New York 10045

A letter with specific instructions to sell the enclosed currency and
credit the dollar proceeds to the Treasurer\'s account must accompany
each shipment to the Federal Reserve bank. The letter is prepared in
quadruplicate, 3 copies to accompany the deposit with a description of
each currency as to name of foreign country, medium of exchange and
foreign currency amount. One copy is retained with the VA Form 4-1011,
Record of Shipment of Valuables.

c\. The Federal Reserve bank completes the Deposit Ticket amount of
deposit and returns the accompanying copy when it sells the currency.
The amount received for the currency is then coded on the pending input
document which is released for computer processing.

## SUBCHAPTER 5 - MANILA INSURANCE COLLECTIONS

### 34.21 GENERAL

a\. Insurance remittances collected in the Manila regional office are
deposited with the Manila Branch, National City Bank of New York, rather
than transmitted to the Philadelphia VA Regional Office and Insurance
Center for deposit. Duplicate copies of the deposit slips, including the
confirmed copy, VA Form 4-1551, Transmittal Schedule of Insurance
Collections, VA Form 367 and VA Form 4-1622, Transmittal List of Posting
Media and Report of Distribution, are mailed to the Philadelphia VA
Regional Office and Insurance Center for preparation of input to credit
the insured\'s account.

b\. The control of input prepared for Manila collections must be very
tight because the money is on deposit and the total of the input must
agree with the amount deposited. To facilitate the control of input, the
Manila items are processed in a batch independent of domestic
remittances and the amounts shown on the input are totaled to verify the
amount reported on VA Form 4-1622 prior to computer processing.

### 34.22 MANILA INSURANCE COLLECTIONS-MANILA PROCESSING (AGENT CASHIER)

a\. All collections for premiums, loan and lien payments and accounts
receivable payments, will be processed as follows:

\(1\) U.S. Dollars. All U.S. dollar items will be deposited on an SF
215, Deposit Ticket, with the eight-digit station code, 36-00-0310, and
address of the Philadelphia VA Regional Office and Insurance Center.
Distribution of the SF 215 will be as outlined in paragraph 34.19a, when
the deposit is for credit to another VA station.

\(2\) Pesos. All peso items will be deposited as outlined in paragraph
34.19a, but will include at the top of the commercial deposit slip the
statement \"Credit 36-00-0310.\" Distribution of the commercial deposit
slip will be as indicated in paragraph 34.19a except copy 4 will be
forwarded to the Philadelphia VA Regional Office and Insurance Center
for posting. An additional copy of the deposit slip will be retained at
the station to support the receipts issued in conjunction therewith.
Dishonored (uncollectible) peso items will be returned to the
Philadelphia VA Regional Office and Insurance Center through the Manila
Treasury Regional Disbursing Office on TD Form RO-188, Schedule of
Uncollectible checks, showing the U.S. dollar equivalent, effective at
the time of collection.

\(3\) Document Numbering. For control purposes, SF 215 will be numbered
from the 3,000 series of numbers and the commercial deposit slips from
the 4,000 series of numbers. At the beginning of every fiscal year, each
series will begin with number one (e.g., 3001, 3002).

\(4\) Deposits of Collections. Deposits of insurance collections will be
made once each week and on the last workday of each month. Upon receipt
of the confirmed copies of the deposit documents, all documentation
required and the confirmed copies of the deposit documents will be
shipped to the Philadelphia VA Regional Office and Insurance Center,
ATTN: COLLECTIONS. On the last day of each month and after the
end-of-month deposit has been made, a teletype transmission will be sent
to the Philadelphia VA Regional Office and Insurance Center to advise
them of the last two deposit document numbers from each series, the
accomplished date, amount of each deposit and a distribution of the
deposit by fund. In the case of collections on accounts receivable,
adequate documentation will be included with the shipment to identify
the item as something other than a regular premium payment. VA Form
4-1027, Field Service Receipt - General, should be issued for accounts
receivable collections.

b\. If there is a VA Form 29-369, Notice of Payment Due, or other
identifying information received with the payment, it will be attached
to the VA Form 367 for the use of the Philadelphia VA Regional Office
and Insurance Center.

### 34.23 MANILA INSURANCE COLLECTIONS - PHILADELPHIA PROCESSING

a\. Acknowledgment and verification of receipt of a shipment is
accomplished in the same manner as a domestic shipment.

b\. All confirmed deposit and debit documents are delivered to the
Accounting Section immediately with a notation of the processing day
number on which the input will be introduced into the daily update
processing.

c\. The items received are separated (Paid-As-Billed, Not
Paid-As-Billed, Philippine Service) and processed in accordance with
local operating procedures.

d\. The input is combined and totaled to verify the total amount of
credit to be applied to the insured\'s accounts. The input is then
released for computer processing.

e\. All documents received from the Manila regional office are stamped
with the unit of deposit number. VA Form 4-1622 is released to the
Accounting activity for posting.

f\. If a collection involves a record maintained at the St. Paul VA
Regional Office and Insurance Center, the credit will be processed
through existing procedures for interoffice transfers to move the credit
to the St. Paul VA Regional Office and Insurance Center.

## SUBCHAPTER 6 - MONTHLY TREASURY CHECKS FROM SERVICE DEPARTMENTS

### 34.24 PROCESSING

a\. The monthly allotment checks are to be received via certified mail
so they may be identified and separated from routine mail. The
Collections activity will notify the appropriate service department any
time a discrepancy is discovered in the method of shipments.

b\. The purpose of the strict mailing requirements is to preclude the
loss of investment earnings from the unusually large amounts of the
service checks.

c\. The service checks are deposited on a separate SF 215, Deposit
Ticket which is so marked to indicate the type of deposit.

## SUBCHAPTER 7 - SERVICEMEN\'S GROUP LIFE INSURANCE (SGLI) PREMIUM PAYMENTS

### 34.25 GENERAL

a\. Public Law 89-214 established a Group Life Insurance program for
members of the Uniformed Services of the United States. This program is
administered by a commercial primary insurer and supervised by VA.
Premiums for this insurance are deducted monthly from the insured\'s
service pay and remitted by each Uniformed Service to VA. VA, in turn,
remits the premiums to the primary insurer, with whom it has a contract
to administer this program. Reimbursements for administrative costs are
made to the Philadelphia VAROIC based on quarterly reports submitted to
VACO.

b\. The program is controlled by establishing a subsidiary record for
each of the services. In addition to premiums, the uniformed services
also contribute an amount for any necessary extra hazard costs, as
computed by the Actuarial Staff (290D), VA Regional Office and Insurance
Center, Philadelphia, Pennsylvania. These extra hazard costs are also
funded from the pay appropriations of the uniformed services.

c\. The Program Administration Staff, under the Office of the Assistant
Director for Insurance, Philadelphia VAROIC (29), is responsible for the
deposit and control of receipts and for the payment of amounts due the
primary insurer.

### 34.26 PROCESSING CHECKS RECEIVED FROM UNIFORMED SERVICES

a\. Premiums and extra hazard contributions are received by the
Philadelphia VAROIC, via an Electronic Funds Transfer (EFT) system, and
are wire-transferred to the Servicemen\'s Group Life Insurance

Fund (36X4009).

b\. The amounts received from the Uniformed Services for premiums
withheld are maintained in separate accounts to distinguish between
basic premiums withheld and premiums withheld from Reservists. In
addition, any extra hazard contributions will be separately held and
identified.

c\. The receipt of funds from each of the Uniformed Services will be
controlled by establishing a subsidiary record for each of the services.
The Program Administration Staff will monitor for timely receipt of
payments.

### 34.27 PAYMENTS TO THE INSURER

a\. Disbursements to the insurer will be made on SF 1034, Public Voucher
for Purchases and Services Other Than Personal. The SF 1034 will contain
a breakdown of the premiums received for active service members, and the
premiums for reserve members. In addition, the voucher will contain the
voucher month, the authority number, and any miscellaneous adjustments
for that month. The voucher will be prepared by a member of the Program
Administration Staff in the Philadelphia VAROIC, and then submitted to
the Finance Division, Philadelphia, VAROIC, for processing. A copy of
the voucher will be transmitted to the primary insurer simultaneously
with the forwarding of the payment schedule to the Treasury Disbursing
Office.

b\. Amounts paid to the insurer will be maintained in separate accounts
to distinguish between premiums for active duty members, Reservist
premiums, and extra hazard contributions.