FEDLINK
Information Alert
99-2

FEDLINK Network Operations




TO: FEDLINK Members and FEDLINK Vendors

FROM: Susan M. Tarr, Executive Director, FLICC

SUBJECT: Change in Procedure for Reporting Outstanding Invoice Amounts for Money Move and Refund Transactions

As part of its goal to improve service to members and vendors, FEDLINK continues to review its policies and streamline procedures wherever possible. An area of persistent concern to members has been the turnaround time involved in processing an IAG amendment request and associated delivery orders to move funds from one transfer pay account to another or to refund money. Currently, before issuing a delivery order to reduce a member's funding level, FEDLINK asks the vendor to certify that the member has no outstanding charges for orders or service usage. The vendor has had seven working days to review its accounts receivable, submit any outstanding invoices for payment, and complete the certification. The entire process—from IAG request to delivery order—has averaged 15 working days, which is too long.

Checking for outstanding charges before de-obligating funds protects both vendors and members in money move and refund transactions: vendors are less likely to have invoices rejected after funds have been de-obligated and members are less likely to have to add funds later to cover outstanding amounts. On the Transfer Pay Account Adjustment form, which members use to request a money move or refund, the member signs the following certification:

I certify that I have checked with the vendor and that the balance that will remain in the above service account(s) after funds are removed or refunded will be sufficient to cover all outstanding and projected usage of the service(s) for the fiscal year indicated. My agency will be responsible for any additional charges accrued under the LC/FEDLINK BOA.

FEDLINK's request for certification from the vendor is thus a double check of the account, one that protects both parties from any changes that may have happened while the request was in process. The vendor check is a valuable step in the process and will not be eliminated.

New Procedure

Member will continue to sign the above certification when submitting a money move or requesting an IAG amendment or refund. But, effective October 1, 1998, when FEDLINK asks a vendor to certify that there are no outstanding charges to a member's account, the vendor will have three working days to respond. If the vendor fails to respond within three days, FEDLINK will execute the member's request. If the vendor responds that there is an outstanding amount, FEDLINK will: 1) adjust the member's IAG request to leave sufficient funds in the service account to cover the stated amount; 2) issue delivery orders to move or refund the remaining amount; and 3) contact the member about the discrepancy. If it is not practical to adjust the member's IAG request (e.g., if the outstanding amount is more than the total request or if only a token amount would be free to move), FEDLINK will contact the member directly before proceeding further.

Accurate Vendor Records

Because the turnaround time for vendor certifications will be shorter, two factors become especially important. First, the vendor must keep its accounts receivables current, and monitor the amount of the member's actual orders/usage under the not-to-exceed ceiling stated on the delivery order. Second, the vendor must provide FEDLINK with contact information (name, title, address, phone, fax, email) for a specific individual to whom to issue the requests for certification, and must keep that information current. Please provide contact information to Jim Oliver, Vendor Services Coordinator, at joli@loc.gov, (202) 707-4960, or fax (202) 707-4999.

Questions

If you have questions about this procedure, please contact Jim Oliver, FEDLINK Vendor Services Coordinator by email at joli@loc.gov, by phone on (202)707-4960, or Mary Wilson, Fiscal Manager and Head of Accounts Payable, by email at marw@loc.gov or phone on (202) 707-4970, or the FEDLINK Fiscal Hotline at (202) 707-4900.

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