Questions concerning this policy chapter should be directed to:

• Veterans Health Administration
• Veterans Benefits Administration
• National Cemetery Administration
• Debt Management Center
• Financial Services Center
• Construction and Facilities Management
• All others

0201 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding unclaimed moneys.

Key points covered in this chapter:

• Unclaimed moneys do not affect VA’s budgetary resources;
• Unclaimed moneys cannot be used to pay obligations and expenditures;
• VA will investigate unclaimed moneys; and
• Funds that remain unclaimed for over a year will be transferred to either Treasury’s account, “Payment of Unclaimed Moneys” (20X6133), or VA’s account, “Forfeitures of Unclaimed Moneys and Property” (36X1060).

0202 Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	Reformatted to new policy format and completed a full review	OFP (047G)	General Update	October 2024
0203	Added Central Accounting Reporting System (CARS) and Secure Payment System (SPS) to definitions section	OFP (047G)	Added definitions to cover terms used in policy sections	October 2024
Appendix A	Inserted Appendix A previous policy revisions	OFP (047G)	General Update	October 2024

0203 Definitions

Central Accounting Reporting System (CARS) – The electronic system of record for the government’s financial data which provides streamlined agency reporting and supports government-wide standardization.

Clearing (Suspense) Account – An account established to temporarily hold funds that are later refunded or transferred once an administrative or final determination as to the proper disposition is made.

Deposit Fund – An account established by Treasury’s Bureau of Fiscal Service to record moneys that do not belong to the Federal Government.

Forfeitures of Unclaimed Money and Property – Unclaimed money and proceeds from the sale of abandoned or confiscated property. Account 36X1060 has been established to account for these funds.

Revolving Fund – A fund established by Congress to finance a cycle of business-like operations through amounts received by the fund. A revolving fund charges for the sale of products or services and uses the proceeds to finance its spending, usually on a self- sustaining basis. A revolving fund is a form of permanent appropriation.

Secure Payment System (SPS) –A payment system used by federal government agencies to securely create, certify, and submit payments to the Fiscal Service.

Treasury Accounting Symbol – An identification code assigned by the Department of the Treasury (Treasury), in collaboration with the Office of Management and Budget (OMB) and the owner agency, to an individual appropriation, receipt, or other fund account.

Unclaimed Moneys – Funds belonging to individuals, businesses, or other entities that cannot be returned because the whereabouts of their rightful owners are unknown.

Uninvested Trust Fund – Trust funds not invested in stocks, bonds, or other income- producing assets.

0204 Roles and Responsibilities

Under Secretaries, Assistant Secretaries, Other Key Officials, and Financial Officials are responsible for ensuring compliance with the policies set forth in this and other financial policy chapters.

Administration and Staff Office Chief Financial Officers and Local Fiscal Staff are responsible for appropriately researching, documenting, recording, and reporting of unclaimed moneys in a timely manner.

Financial Services Center (FSC) is responsible for providing support for the accounting and reporting of VA’s unclaimed moneys, including posting, reconciling, and recording transactions related to unclaimed moneys, as requested.

0205 Policies

020501 General Policies

1. VA will manage unclaimed moneys in accordance with 31 U.S.C. § 1322, and comply with Treasury Financial Manual (TFM) Volume I, Part 6, Chapter 3000 when processing unclaimed moneys.
2. Unclaimed moneys may include but are not limited to:
   • Unclaimed Funds of Veterans;
   • Excess proceeds of withheld Veterans Administration foreign checks;
   • Unclaimed funds of patients and residents of VA hospitals;Uncashed payroll checks;Unidentified State and Local withheld taxes; and
   • Customer overpayments, etc.

020502 Identification of Unclaimed Moneys

1. VA staff that receive unidentified remittances, collections, and credits, shall research transactions to determine the proper accounting treatment of these funds.
2. VA staff will deposit moneys into an uninvested trust, revolving, deposit, or suspense fund account as appropriate.
   1. Finance staff at VA field offices will research unidentified funds to determine whether they should be transferred to appropriation-based accounts or returned.
   2. If the unidentified funds should be returned but cannot be because the rightful owner’s whereabouts are unknown, VA will record the unidentified funds as unclaimed moneys and maintain a subsidiary record of the transaction details.

020503 Disposition of Unclaimed Moneys

1. Finance staff at VA field offices will routinely analyze and attempt to properly categorize/account for unclaimed moneys held in uninvested trust, revolving, and deposit fund accounts.
2. FSC will assist VA field offices in analyzing, categorizing, and accounting for moneys that remain in suspense accounts for more than 30 days.
3. If all reasonable efforts have been exhausted in locating the rightful owners of unclaimed moneys, finance staff at the stations will transfer the moneys held over one year to the Treasury account, “Payment of Unclaimed Moneys” (e.g., TAS 20X6133) or the account, “Forfeitures of Unclaimed Money and Property” (e.g., TAS 36X1060) under certain conditions. This account, as established, will hold such moneys in trust for rightful owners.
4. Unclaimed moneys from VA’s uninvested trust, revolving, or deposit fund accounts will be transferred to the Treasury account, “Payment of Unclaimed Moneys” if all of the following criteria are met:
   • Funds are $25 or more;
   • A refund would be justified if a claim was made;
   • There is no doubt as to legal ownership of the funds; and
   • A named individual, business, or other entity has been identified.
5. Documentation showing how the criteria was met will remain part of the active record and will support transactional posting to the subsidiary ledger of the account, “Payment of Unclaimed Moneys”.
6. VA will transfer unclaimed moneys not meeting the above criteria to the account, “Forfeitures of Unclaimed Money and Property” which is one of VA’s miscellaneous receipt accounts.

020504 Disposition Requirements

1. VA will accomplish the transfer of unclaimed moneys from VA’s uninvested trust, revolving, deposit, and suspense fund accounts to the account, “Payment of Unclaimed Moneys” and the account, “Forfeitures of Unclaimed Money and Property” using a Journal Voucher (JV). Refer to VA Financial Policy Volume II Chapter 1A, VA Journal Vouchers for documentation requirements to process a JV.
2. The JV transferring unclaimed balances to the account, “Payment of Unclaimed Moneys” must bear the notation “Unclaimed Balances.” When clearing balances, VA must note on the basic supporting documents that it transferred funds for the individual items to the account, “Payment of Unclaimed Moneys.”
3. The JV transferring unclaimed balances to the account, “Forfeitures of Unclaimed Money and Property” must list individually each amount of $25 or more. VA must annotate amounts under $25 being cleared with the notation “Unclaimed balances of less than $25,” and need only show the total amount.

020505 Refunds

1. If VA receives a valid claim associated with unclaimed moneys that are currently deposited within VA’s uninvested trust, revolving, deposit, or suspense fund accounts, a refund will be made. Refer to Volume II, Chapter 7G, Refunds Issued by VA, for policy on issuing refunds.
2. VA will pay valid claims associated with unclaimed moneys that have been transferred to the account, “Payment of Unclaimed Moneys” from this account. VA will process a payment from the account through VA’s accounting system. Payments will be sent to Treasury via the normal payment files and later certified in Secure Payment System (SPS). FSC will report disbursements made from this account in the Central Accounting Reporting System (CARS).
3. VA will pay valid claims associated with unclaimed moneys that have been transferred to the account, “Forfeitures of Unclaimed Money and Property” from the account, “Refunds of Moneys Erroneously Received and Covered” (20X1807). Payments will be sent to Treasury via the normal payment files and later certified in SPS.

020506 Reporting Requirements

1. VA will maintain its subsidiary ledgers and related documentation to ensure an accurate balance for the account, “Payment of Unclaimed Moneys” and the account, “Forfeitures of Unclaimed Money and Property”.
2. VA will respond to Treasury’s requests and provide reports on transactions or balances pertaining to the account, “Payment of Unclaimed Moneys”.
3. On a quarterly basis, VA will review balances reported by Treasury Bureau Fiscal Service located at https://www.treasurydirect.gov/govt/reports/tma/unclaimed.htm.
4. If VA disputes Treasury’s recorded amount, within the 30-day time period, VA must provide supporting documentation for Treasury to make the necessary adjustments. For further information, please refer to Volume I TFM 6-3000.

020507 Documentation Requirements

1. VA will comply with National Archives and Records Administration (NARA) to maintain financial management and reporting records.
2. VA will comply with Treasury’s requirements to maintain adequate records in support of moneys being held for rightful owners. VA will:
   • Maintain memorandum accounts for the account, “Payment of Unclaimed Moneys”;
   • Maintain individual records of all items transferred to the miscellaneous receipt account, “Forfeitures of Unclaimed Money and Property”;
   • Maintain a file of paid disbursement voucher forms with supporting documents for payments made from accounts, “Payment of Unclaimed Moneys” and “Refunds of Moneys Erroneously Received and Covered”; and
   • Make records available to internal and external auditors conducting onsite audits.

0206 Authorities and References

• Armed Forces Leave Act of 1946
• United States Code
  • 5 U.S.C. 5534a, Unclaimed funds of Veterans under the Armed Forces Leave Act of 1946;
  • 31 U.S.C. 1322, Payments of unclaimed trust fund amounts and refund of amounts erroneously deposited
• 38 CFR Part 12 Disposition of Personal Funds and Effects Left Upon Premises of the Department of Veterans Affairs By Non-Veteran Patients, Employees and Other Persons, Known or Unknown
• A Glossary of Terms Used in the Federal Budget Process, September 2005
• National Archives and Records Administration
• Statement of Federal Financial Accounting Standards 7: Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting
• Treasury
  • Federal Accounts Symbols and Titles: The FAST Book, November 2021
  • TFM, Volume 1, Part 2, Chapter 1500, Description of Accounts Relating to Financial Operations
  • TFM, Volume 1, Part 2, Chapter 4700, Agency Reporting Requirements for the Financial Report of the United States Government
  • Treasury Bureau Fiscal Service Unclaimed Moneys Report
  • Treasury Financial Experience
  • Chapter 3000 Payments Of Unclaimed Moneys And Refund Of Moneys Erroneously Received And Covered | TFX: Treasury Financial Experience
• VA Financial Policy Volume II, Chapter 1A, VA Journal Vouchers
• VA Financial Policy Volume II, Chapter 7G, Refunds
• VA Financial Policy Volume VIII, Chapter 3, Agent Cashier Accountability Policy

0207 Rescissions

Volume II Chapter 2J, Unclaimed Moneys November 17, 2022.

Appendix A: Previous Policy Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	Reformatted to new policy format and completed a full review	OFP (047G)	General Update	November 2022
Various	Deleted repeating accounting codes/numbers	OFP (047G)	General Update	November 2022
0203 Definitions	Added terms “Treasury Accounting Symbols” and “Unclaimed Moneys”	OFP (047G)	General Update	November 2022
All	New Chapter	OFP (047G)	Provide policy on Unclaimed Moneys and related payments	March 2019