Being somewhat technologically challenged, the evolution of electronic payments amazes me. My experience with making government payments began with the paper-based system. Receipt of a federal travel payment took weeks. Today the advancement in technology gives the federal agency the capability to pay the traveler and vendors, if not instantly, then within a few days.
Previously, we issued travel advances in cash through use of an onsite imprest fund cashier. The traveler requested a voucher that authorized the cashier to disburse the cash to the recipient. Now, the traveler, if approved by the agency, receives a travel charge card for an individually billed account (IBA) to obtain travel advances and to pay for travel expenses. To receive a travel advance the traveler uses the IBA travel card at a bank’s automated teller machine and instantly receives cash. In addition, industry vendors accept the traveler’s IBA travel card for payment of transportation, lodging, and rental car expenses.
In the past, issuing a travel reimbursement was a tedious and lengthy procedure. To reimburse the traveler for expenses incurred on official travel, we reviewed paper vouchers for compliance to various federal travel and accounting regulations, manually converted the submitted cost and travel data into accounting codes, and recorded the accounting entries into the financial system. The payment data was generated the next payment cycle. At that time we assembled the vouchers into a schedule of payments, typed the payment information on to a schedule of payments form, and mailed the form to the federal finance center. The disbursing office prepared the check and mailed it to the recipient.
Since the government implemented the Electronic Funds Transfer (EFT) provision contained in the Debt Collection Improvement Act, we make travel payments through the Automated Clearing House (ACH) network. This payment method provides us an electronic means to transfer funds directly into the recipient’s bank account.
Implementation of the E-Gov Travel system, also streamlines the payment process for issuing a travel reimbursement. The performance of the ETS assures us that travel vouchers are submitted in accordance to Federal Travel Regulation and provides us an automated method to assign lines of accounting and to interface the financial travel data with the agency’s accounting system. We also benefit from the ETS capability of assigning split payments. We can direct portions of the reimbursement to the traveler’s bank account and/or to the traveler’s IBA through use of ACH.
By Regina Potter
The contents of this message are mine personally and do not reflect any position of the Government or my agency.