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Part 9. Criminal Investigation

Chapter 11. Fiscal and Personnel Matters

Section 1. Fiscal and Budgetary Matters

9.11.1  Fiscal and Budgetary Matters

9.11.1.1  (11-04-2004)
Overview

  1. This section provides guidance on the fiscal and budget matters for Criminal Investigation (CI). The following will be discussed in this section:

    • Central Financial Plan

    • Incidental Investigative Expenditures

    • Confidential Investigative Expenditures (Pre-authorized)

    • Relocation Program for CI Employees

    • Relocation Bonuses

9.11.1.2  (09-24-2007)
Central Financial Plan

  1. Criminal Investigation operates under a centralized financial plan managed by CI. The Chief, CI, is responsible for the financial plan, the Director, Finance (CI:S:F) manages the plan.

  2. Criminal Investigation is allocated a portion of the IRS total budget. Criminal Investigation also receives reimbursement from the Department of the Treasury, State Department and other government agencies.

  3. Directors, Field Operations and Special Agents in Charge (SAC) receive funds from CI:S:F to operate their areas and field offices.

  4. Each field office and Fraud Detection Center (FDC) is responsible for effectively using budget allocations in accordance with all relevant guidelines.

9.11.1.2.1  (09-24-2007)
Director, Finance

  1. The Director, CI:S:F is responsible for:

    1. ensuring resources are effectively expended to accomplish CI program goals (Financial Plan Execution)

    2. distributing available resources to field offices, FDCs and Headquarter (HQ) components (Financial Plan Development)

9.11.1.2.1.1  (09-24-2007)
Budget Formulation

  1. The Director, Planning and Strategy (CI:S:PS) develops budget initiatives to include in the IRS budget requests sent to the IRS’ Chief Financial Officer (CFO), Department of the Treasury, Office of Management and Budget, and Congress. The Director, CI:S:PS provides additional information as requested and monitors the progress of the initiatives through the CFO, Treasury, Office of Management and Budget (OMB) and Congress.

9.11.1.2.1.2  (09-24-2007)
Financial Plan Development

  1. Each year, the Director, CI:S:F requests financial plan requirements from the field offices. These requirements are compared to the budget availability received from the IRS CFO. Funds are then allocated to each field office based on historical expenditures, projections, and current budget conditions.

9.11.1.2.1.3  (09-24-2007)
Financial Plan Execution

  1. The Budget Execution Section of CI:S:F monitors and reviews field offices and HQ expenditures to ensure appropriate use of resources. Financial Operating Guidelines are issued annually to assist field offices in the most effective use of available resources. Staff provides advice and assistance to field offices. Reviews are conducted to compare overall resource use and financial plan availability.

  2. Some funds are allocated directly to the individual field offices. These include:

    1. travel

    2. training

    3. overtime

    4. cash awards

    5. various enforcement expenses to perform day-to-day operations

  3. Other funds are provided to the field offices to reimburse expenses that relate to specific projects. These include:

    1. High Intensive Drug Traffic Areas (HIDTA)

    2. Interagency Crime and Drug Enforcement (ICDE)

    3. Treasury Asset Forfeiture Fund (TEOAF)

  4. Other expenses are controlled centrally and paid at the HQ level. These include:

    1. salaries/benefits (full time equivalents (FTE))

    2. purchase of automobiles and vans

    3. investigative equipment

    4. confidential expenditures for undercover operations

    5. relocation

    6. automatic data processing (ADP) equipment

9.11.1.2.1.4  (09-24-2007)
Staffing Levels - Authorized Staffing Pattern

  1. The Director, CI:S:PS is also responsible for the authorization of appropriate staffing levels. The Authorized Staffing Pattern (ASP) report is the authorizing document for distribution of positions (by employment category and grade) to field offices, FDC's and HQ.

  2. Written requests for changes in the ASP should be submitted in accordance with procedures found on the Planning and Strategy WEB page.

9.11.1.2.2  (09-24-2007)
Criminal Investigation Field Office Responsibilities

  1. Criminal Investigation field offices are responsible to deliver CI program goals in accordance with all relevant guidelines and within allocated resources. Financial Operating Guidelines are issued annually by Director, CI:S:F.

9.11.1.3  (09-24-2007)
Incidental Investigative Expenditures

  1. Incidental expenditures are minor expenses of a special agent. They are unexpected and generally do not recur in an investigation. Incidental expenditures are generally made without prior approval of a management official. Incidental expenditures are independent of Delegation Order No. 16 (Rev. 16), Authorization to Approve Confidential Expenditures.

  2. Incidental expenditures are expenditures which fall into Sub-Object Class Code (SOC) 252E (see CFO WEB page.)

  3. Incidental expenditures may not:

    1. total more than $75 on each occasion without SAC approval (may be authorized to $125)

    2. exceed $125 in a calendar month without prior SAC approval

    3. total more than $500 in any calendar month for one special agent

  4. If a special agent is in travel status and incurs incidental expenditures for daily subsistence (surveillance activities, meeting with informants, etc.), that result in the purchase of a special agent's meal by the Government, he/she should claim reimbursement as an incidental expenditure and reduce his/her per diem per the Travel Handbook.

  5. A special agent should use discretion in incurring incidental expenditures. Incidental expenditures will not be used instead of pre-authorized confidential expenditures, especially as it relates to payments to informants for information and other defined categories that require various levels of approval. For example, if a special agent meets an informant once a week about a narcotics project and incurs costs, this would not be considered incidental expenditures.

9.11.1.3.1  (11-04-2004)
Defining Incidental Expenditures

  1. Incidental expenditures are defined as follows:

    1. Purchase of a cup of coffee, a sandwich, a drink, a meal, or other similar minor purchases for an informant when it is necessary for a special agent to meet the informant at an inconspicuous place in order to ensure security or to protect the identity of the informant. A special agent should also seek reimbursement for himself/herself, as well as for the informant.

    2. Cost of copies of third-party records, such as county real estate records, whose purpose is determining and establishing tax liabilities or for investigation and enforcement activities. These would not include documents or research costs that are reimbursable under summons provisions. Tax Fraud Investigative Aides (TFIA’s) may be reimbursed for this type of expenditure, but they are limited to this category of expenses.

    3. Cost of minor expenses related to surveillance activities, such as a drink or a meal to maintain one’s cover.

    4. Other miscellaneous expenses to secure evidence that are not of a recurring nature. The term "evidence" is not restricted to that used or admissible in a court case. For example, a special agent may incur miscellaneous expenses related to the execution of a search warrant or purchase material at a tax shelter seminar.

9.11.1.3.2  (09-24-2007)
Accounting For Incidental Expenditures

  1. A special agent is required to account for incidental expenditures and obtain reimbursement as follows:

    1. If prior written approval is not possible, a special agent must notify his/her Supervisory Special Agent (SSA) in writing (routing slip or memo) and record in his/her diary on the date a brief description of the expense, amount expended, place, and persons present, including the assigned informant number or code name, if applicable. These memorandums will be maintained at the direction of the SAC. Whenever possible, receipts should be obtained for items costing $75 or more. If not possible, an explanation of why a receipt was not obtained should be in the diary. The SSA is expected to follow up and review a special agent’s diary for the proper documentation.

    2. When a special agent determines that he/she will have incidental expenditures of more than $125 in a calendar month, or will have an incidental expense greater than $75 on a single occasion (example: drilling a safe deposit box during a search warrant execution may exceed $75), he/she will prepare a memorandum to the SAC, stating expenditures spent to date, amount of possible additional expenses, reasons for the additional expenditures, and a request for authorization to spend funds at the approval level. The SAC may authorize incidental expenditures totaling no more than $125 per occasion with a maximum of $500 in any calendar month for each special agent. The SAC should maintain a photocopy of the approved authorizations exceeding $125 in a given month or greater than $75 in a single incident.

    3. A special agent should claim reimbursement of incidental expenditures on his/her travel voucher by showing the date of expenditure, amount, and the following explanation: "Incidental Expenditures " . A special agent should not give any additional description or explanation of the incidental expenditure on the travel voucher, nor should related receipts or memoranda be attached.

9.11.1.4  (09-24-2007)
Confidential Investigative Expenditures (Pre-Authorized)

  1. Confidential Expenditures allows special agents to purchase or acquire information and services that are necessary to complete an investigation. For example, special agents may:

    1. pay cash to informants to gather information and evidence about the violation of Federal statutes

    2. pay for meals and entertainment of an informant

    3. make cash payments when it is not possible for an informant to file a claim for payment

    4. use cash when it is necessary to protect or conceal the identity of the special agent or informant

    5. pay cash when immediate action is required to gather information and records.

    Note:

    In all situations, the agent must use good judgment and ensure that effective investigation development is served by the use of these funds. This includes reviewing information before payment is made. Expenditures must be approved by the correct official and follow the dollar limits set by the Commissioner.

  2. The SAC is authorized to approve special agents’ claims for reimbursement for authorized confidential expenditures through the imprest fund. The Director, Field Operations and the Director, Operations Policy and Support (CI:OPS) are the approving officials for the areas offices and HQ, respectively.

  3. The authorization to incur confidential expenditures requires identifying the location of the imprest fund being utilized. Area office employees will specify and use the imprest fund of the appropriate field office. Imprest funds located at area offices or HQ will be specified and used only when employees concerned are performing duties for those offices.

    Note:

    In situations where an expenditure is not confidential and normal procurement procedures cannot be used, a disbursement may be made from the investigative imprest fund. Normal procurement procedures include the use of the travel voucher, Citibank card, requisitions, and small purchase imprest funds. The Director, CI:S:F has authorizing officials on staff who are authorized by Procurement to approve non-confidential purchases from the investigative imprest fund. These individuals must be contacted before any procurement may be authorized and they will provide record-keeping instructions. An authorization for confidential expenditures should not be used for this type of expenditure.

9.11.1.4.1  (11-04-2004)
Pre-authorized Confidential Expenditures

  1. Pre-authorized confidential expenditures fall into one of the following categories and sub-object class code (SOCs):

    1. Confidential Expenditures for Informants (SOC 9101)

    2. Confidential Expenditures for Undercover Operations (SOC 9102-9UNDE)

    3. Confidential Expenditures for Cover Agent Identity (SOC 9102-9COVE)

    4. Confidential Expenditures for Store Fronts (SOC 9102-9STOR)

    5. "Other" Confidential Expenditures (SOC 9103)

    6. Confidential Expenditures for Protection and Maintenance of Witnesses and Informants (SOC 9104)

    (See CFO Web page.)

9.11.1.4.1.1  (11-04-2004)
Confidential Expenditures for Informants (SOC 9101)

  1. Confidential Expenditures for Informants (SOC 9101) - Represents the cost of payments to informants for:

    1. information

    2. assisting in an investigation which could save time and reduce costs

    3. services such as locating witnesses and assets which will result in obtaining essential information, testimony, or evidence relating to an investigation

    4. payments for assisting in apprehending fugitives

  2. Costs incurred because of payments on behalf of an informant are also confidential expenditures. This includes payments on behalf of an informant, instead of a direct payment, such as purchasing an airline ticket for an informant or similar expenditures and payments made to reimburse expenses of the informant for gathering information for the IRS.

  3. This terminology is not intended to include such minor " courtesy" expenses that an investigator may pay when meeting an informant, payments to or for an informant in connection with an approved undercover operation, or expenses for protecting an informant whose identity has been compromised (see IRM 9.11.1.4.1.4). The SOC 9101 also does not include the cost of rewards to informants awarded in tax investigations, which are chargeable to SOC 1182.

  4. Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

9.11.1.4.1.2  (09-24-2007)
Confidential Expenditures for Undercover Operation

  1. Confidential Expenditures for Undercover Operations (SOC 9102-9UNDE)- Represents the cost of all confidential expenditures incurred in connection with the undercover program:

    1. travel costs for undercover support team members - SOC 9102-9UNDE

    2. represents cost for store front operations - SOC 9102-9STOR

    3. cover document and premise expenses preliminary to an undercover operation - SOC 9102-9COVE

      Note:

      Payments to an informant incidental to an undercover operation are charged to SOC 9101 although it is part of the undercover. For this purpose the budget office code would be V002.

  2. It does not include travel and per diem incurred by agents outside of their undercover assignment. Reimbursement for confidential expenditures is claimed only through imprest funds for investigative purposes and not on travel vouchers.

  3. Case agent or management travel should not be included in expenses for the undercover operation unless the case agent or manager are part of the cover team.

9.11.1.4.1.3  (09-24-2007)
"Other" Confidential Expenditures (SOC 9103)

  1. "Other" Confidential Expenditures (SOC 9103) - Represents expenditures not included in SOC 9101, 9102, or 9104. Other confidential expenditures may include the following types of expenditures:

    1. The cost of admission to race tracks and racing forms.

    2. The cost of surveillance facilities and related expenses for the conduct of investigations and the authorized gathering of information regarding individuals or authorized projects involving suspected violations of laws under the jurisdiction of CI (including money laundering and Title 31); the authorized gathering of information concerning the administration and enforcement of the laws under the jurisdiction of CI (including money laundering and Title 31).

    3. Confidential expenses incurred in locating certain witnesses.

    4. Cost of maintaining the surveillance van (i.e., repairs, maintenance, storage, fuel, etc.). All surveillance van authorizations start October 1st of each fiscal year and end September 30th of each fiscal year. The funds are not carried over to the next fiscal year.

  2. Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

9.11.1.4.1.4  (11-04-2004)
Confidential Expenditures for Protection and Maintenance of Witnesses and Informants (SOC 9104)

  1. Confidential Expenditures for Protection and Maintenance of Witnesses and Informants (SOC 9104) - Represents the cost of all confidential expenditures incurred in protecting and relocating an informant or witness.

  2. Reimbursement for confidential expenditures may be claimed only through imprest funds for investigative purposes and not on travel vouchers.

9.11.1.4.2  (09-24-2007)
Authorization For Confidential Funds

  1. Whenever authorized expenditures are necessary, the total expected cost will be determined. Based upon the tentative cost, an authorization will be requested using the procedures and guidelines that follow. If later it is determined that additional funds are needed, a revised request must be made.

  2. An authorization may be established in the name of an investigation, a general investigation, an undercover operation, "other" confidential expenditures, or a protected witness. An authorization may not be established in the name of an informant except for a SOC 9104 authorization.

    1. An "investigation" is either an information item or an investigation that has been assigned a number per Criminal Investigation Management Information System (CIMIS).

    2. A "general investigation" is one specific information gathering or project to determine compliance with laws enforced by IRS in a defined geographical area or in a defined group of taxpayers. The existence of a National Project does not authorize approval to pay for any confidential expenditures or information gathering activities.

  3. An authorization may be established at the area office or HQ to develop and maintain cover documents and premises or to authorize confidential expenditures necessary to conduct undercover training.

  4. A field office may establish multiple general investigations (GIs) for the same investigative purposes, but involving distinctly different geographical areas. The field offices may obtain authorizations to use separate funds for each GI established in a different geographical area. The number of GIs and approved authorizations in a field office must be based on reasonable and prudent judgment. Multiple GIs in a single group’s area or in a single geographical area, covered by multiple groups would not be warranted. General investigations for areas involving posts of duty (POD’s) not having a SSA will generally be considered too small.

  5. Confidential fund authorizations in regard to investigations and undercover operations are valid for the duration of the assignment. In instances of an undercover operation, funds may be expended through the due date of the undercover closing report. With the exception of cover documents, confidential fund authorizations for GIs are valid for the duration of the GI. Authorizations for cover documents are valid for the duration of the undercover agent’s assignment.

9.11.1.4.2.1  (09-24-2007)
Requests For Authority To Establish Authorizations

  1. Written requests for approval for an authorization for confidential expenditures should originate from a special agent and contain the following information on Form 8561, Request for Recoverable/Confidential/Incidental/Seizure Funds (see Document Manager):

    1. name of the investigation, project, or other identifying entry

    2. investigation or project number, when applicable

    3. sub-object code(s) (i.e., 9103, 9102-9COVE)

    4. expiration date of the authorization

    5. location of the investigative imprest fund to be utilized

    6. reason or purpose for the expenditures

    7. other relevant information useful to the management officials who will approve the authorization

    8. specific amount to be authorized

  2. If the original request is insufficient, the special agent should submit an amended request for the additional expenditures and obtain the same level of approvals as the original request.

  3. For requests requiring the approval of the Chief, CI, the Director, Field Operations will approve the initial $20,000, as well as concur with the request for the additional funds.

  4. Authorization requests requiring approval of either the Director, Field Operations or the Chief, CI, should also include the amount of imprest funds authorized and total payments made to date.

  5. Authorization may be established based on oral approval in emergency situations. When oral approval is given at the above-authorized levels, the special agent must submit a follow-up written request (Form 8561, see Document Manager) for authorization within 24 hours.

  6. In all requests, on all forms, and in other documentation, a special agent will refer to an informant by code name and/or number. None of the imprest fund files will include any information that would compromise the identity or confidentiality of the informant.

  7. The SAC is responsible for ensuring the security and confidentiality of any grand jury information received in relation to an authorization, including information for the grand jury from an informant. Grand jury information cannot be disclosed to IRS personnel not assisting in the grand jury. See IRM 9.5.2, Grand Jury Investigations.

  8. Confidential expenditures do not include normal travel and per diem expenses incurred by special agents. The only exceptions are:

    1. In the case of undercover operation expenditures.

    2. The SAC may approve on a case-by-case basis confidential expenditures by a special agent when meeting with an informant.

9.11.1.4.2.2  (11-04-2004)
Requests for Authority to Establish Cover Document/Premise Authorization

  1. If appropriate, the SAC may request authorization for confidential expenditures to pay costs incurred by cover agents and trained undercover agents in obtaining and maintaining cover documentation which is not associated with a specific undercover operation (SOC 9102-9COVE).

  2. All requests for cover documentation expenditures must be approved by the Director, Field Operations or the Chief, CI. For those requests exceeding $20,000, approval authority rests with the Chief, CI. Cover documentation expenditure authorizations may be approved for the duration of the general investigation. Authorized funding for this type of general investigation is cumulative. For example, the general investigation is originally approved for two years with authorized funding (SOC 9102-9COVE) of $15,000. At the end of two years, the general investigation is extended for 18 months with additional funds (SOC 9102) of $6,000 being requested. The total authorization for this general investigation now becomes $21,000.

  3. Requests for this type of authorization should be made on Form 8561.

  4. All requests for cover premises (storefronts) must be approved by the Chief, CI (see IRM 9.14.2, Undercover Operations, Law Enforcement Manual).

9.11.1.4.3  (11-04-2004)
Approval Levels For Confidential Expenditure Authorizations

  1. The following individuals can approve all types of imprest fund authorizations in regard to single assigned investigations, general investigations and protected witnesses:

    1. More than $20,000: the Chief, CI.

    2. $20,000 or less: the Director, Field Operations and the Director, CI:OPS.

    3. $10,000 or less: the SAC and Director, Financial Crimes (CI:OPS:FC). Authority is limited to payments to or on behalf of informants, witness protection, and "other" expenses. They may not authorize confidential expenses for undercover operations.

    4. $5,000 or less: The Director, Narcotics & Counterterrorism (CI:OPS:NC) may only authorize confidential expenditures for payments to or on behalf of informants or payments which fall into the other category.

  2. Authorizations sought on the same investigation or general investigation will be combined together to determine the proper approval level. For example, if a field office had an authorization to spend "other" confidential funds in connection with a general investigation of $5,000, and it sought an additional amount of $17,000, the total authorization for this project would be $22,000, and, therefore, the operation would be classified as Group I. See IRM 9.4.8, Undercover Operations.

9.11.1.4.4  (09-24-2007)
Management Responsibilities For Confidential Expenditures

  1. This subsection discusses the responsibilities of the Chief, CI; Director, Field Operations and SAC.

9.11.1.4.4.1  (11-04-2004)
Chief, Criminal Investigation

  1. The Chief, CI, is responsible to review confidential expenditure activity during regularly scheduled HQ reviews to ensure compliance with IRS policy and guidelines.

9.11.1.4.4.2  (11-04-2004)
Director, Field Operations

  1. The Director, Field Operations is responsible for monitoring the overall program of expenditures made from investigative imprest funds in the area and field offices. This will be accomplished through a vigorous program of evaluation and follow up to ensure that:

    1. Funds are used effectively and in a manner that is both lawful and consistent with the administration and enforcement of the laws enforceable by CI.

    2. Use of confidential expenditures is not abused, value is received when confidential funds are expended, and the effectiveness of confidential expenditures is periodically reviewed.

    3. Correct procedures and controls are being followed.

9.11.1.4.4.3  (09-24-2007)
Special Agent in Charge

  1. The Special Agent in Charge (SAC) is responsible for:

    1. Supervising the imprest fund, including assisting, training, and directing the cashier in the performance of his/her duties and in the safeguarding of the fund and related records.

    2. Approving authorizations, advances, reimbursement vouchers, and attached receipts, and accountability of reports after reviewing them for proper approval levels, completeness, and timeliness.

    3. Requiring the employee’s immediate supervisor or higher management officials to conduct administrative reviews of requests for advances and reimbursement vouchers prior to his/her own personal review and approval.

    4. Ensuring that cashiers maintain detailed records of authorizations, funds advanced to investigative officers, checking accounts, and expenditure documentation.

    5. Ensuring that accountability reports (SF 1129, Cash Reimbursement Voucher and/or Accountability Report, and Form 10411, Reimbursement Claim for Confidential Expenditures on Official Business (see Document Manager)) are prepared, approved, and submitted:
      • By the 10th workday of each month (minimum requirement).
      • Whenever there is a change in the approval level of the amount of funds to be maintained.
      • Whenever there is a change in cashiers, the SF 1129 must be signed by the incoming cashier and the outgoing cashier.

    6. Ensuring that the accountability reports, SF 1129’s, with all attached Forms 10411, are mailed directly to Beckley Finance Center (BFC).

    7. Having the alternate cashier assume the imprest fund responsibilities in those instances in which the cashier has been absent for more than 15 calendar days.

    8. Notifying BFC and/or the disbursing officer by memorandum to prepare Optional Form 211, Application for Reward for Original Information (see Document Manager), whenever there is a change in the imprest fund due to the following:
      • Designation of principal or alternate cashier.
      • Revocation of principal or alternate cashier’s designation.
      • Change from principal to alternate cashier, or vice versa, when absent or assigned to other duties for more than 15 workdays.
      • Change in cashier’s name or location.
      • Increase or decrease in the amount of funds. Any requests for increases or decreases must be sent first to Finance, CI:S:F for approval.
      • Establishment of a new checking account, transferring an existing bank account to a different bank, or closing of a bank account due to termination of cashier or alternate cashier.

    9. Requesting a cash verification of the fund due to transfer of accountability between cashiers.

    10. Determining the geographical locations of investigative imprest funds within the field office with the approval of the Director, Field Operations.

    11. Ensuring that the fund is maintained at the lowest practical level and reviewed regularly to be sure it does not exceed actual needs.

    12. Ensuring that all imprest fund checks, and other items making up the fund will be retained under the exclusive control of the cashier in containers which meet the requirements of IRM 1.4.6, Managers Security Handbook.
      • Security requirements for the type of storage facility will vary according to the amount of cash involved.
      • Investigative imprest funds should not be intermingled with other funds, including private or unofficial funds, but will be kept separated in a locked cash box within the imprest fund storage container.
      • Forms, records, and documentation relating to the imprest fund, as well as checks, and non-cash items making up the fund should be under the exclusive control of the cashier with the same security requirements as noted above.

    13. Ensuring that keys and combinations are issued and accounted for in accordance with IRM 1.4.6.
      • Combinations and/or keys to the lock on the imprest fund container and the cash box should be placed in a separate container in a signed, sealed, and dated envelope using Treasury Form 700, Security Container Information, and maintained by the SAC; Director, Field Operations; or Security Officer.
      • The lock on the container should be changed at least once a year, or whenever there is a change in cashiers or transfer of accountability due to unforeseen extended absences of the cashier, or whenever the combination is compromised in any way.
      • Alternate cashiers may have knowledge of the combination to the investigative imprest fund storage container when the fund is maintained in a checking account, so that detailed records can be maintained when assuming the duties of the principal cashier in his/her unforeseen absence.
      • An alternate cashier who maintains an advance from the cashier for purposes of making advances to special agents must store it in a separate secure lock box within the imprest fund storage container.
      • Keys and combinations must be limited to the SAC.

    14. Following the procedures in the IRM, Imprest Fund Handbook, whenever the imprest fund duties are transferred, the alternate cashier may act on behalf of the principal cashier in the principal cashier’s unforeseen absence of less than 15 consecutive days or during a period when no accountability report and/or reimbursement vouchers are due.

    15. Making formal transfer of the fund following the IRS, Imprest Funds guidance, when the foreseen absence of the principal cashier is more than 15 days or during a period when an accountability report and/or reimbursement vouchers are due.

    16. Taking actions to correct problem disclosed by unannounced cash verifications, local reviews, audits, and reviews conducted by the Director, Field Operations and others who have oversight responsibilities.

    17. Submitting reports and taking corrective actions in case of loss or possible loss from the imprest funds following the IRS Imprest Funds guidance.

    18. Managerial Control Plan for the Imprest Fund for Investigative Purposes, (see Imprest Fund guidance) is a mandatory control plan to assess the maintenance of the imprest fund for investigative purposes. It should be used by management and the imprest fund cashiers for the efficient and accurate operation of the investigative imprest fund.

    19. Personal goods purchased at governmental expense in connection with an official investigation, but not consumed or otherwise disposed of in connection with the investigation are not to be appropriated to the private use of the purchaser, but will be turned over to the SAC, at such time as circumstances of the investigation permit. The SAC will transmit such goods to the Facilities Management office in the field office for appropriate disposition. The transmittal memorandum will identify the goods and state how they were acquired.

9.11.1.4.5  (09-24-2007)
Investigative Imprest Fund For Confidential Expenditures

  1. With the approval of the Director, Field Operations and BFC, the SAC may establish investigative imprest funds in different geographical locations in the field office. For example, a major POD may spend substantial confidential funds, which require a separate investigative imprest fund in addition to the field office HQ imprest fund.

  2. Any additional investigative imprest funds which are established must be completely independent from any other investigative imprest fund. No secondary imprest funds can be established. Multiple imprest funds provide for immediate access to monies and serve to eliminate any "sub-cashier" problems.

9.11.1.4.5.1  (09-24-2007)
Imprest Fund Level

  1. The SAC is responsible for determining the dollar size and any increase or decrease in an investigative imprest fund.

  2. Considerations, such as average usage in comparison to the dollar size of the fund, will not be the only factor to determine the dollar limitation of the imprest fund. The SAC is responsible to ensure that adequate funds are maintained to meet any reasonable need. At times, this may require funds on hand, which are many times greater than the average monthly usage. The SAC must consider the lead time to process the reimbursement voucher and the return of the replenishment check, including mail time. In addition, the SAC should recommend increases and decreases in the amount of maintained funds following the field office’s needs in relation to major investigations and projects in progress.

  3. When a determination is made that the amount of the investigative imprest fund should be either increased or decreased, (within the maximum amount if it's an increase) the SAC responsible for the field office in which the imprest fund is located will request permission through the Director, CI:S:F. The Director, CI:S:F must approve before sending the request to BFC. Beckley will not process increases or decreases without the approval of Finance, CI:S:F and a corresponding RTS action. See the IRS Imprest Funds guidance for further instructions.

9.11.1.4.5.2  (11-04-2004)
Advances From The Investigative Imprest Fund

  1. When an authorization has been approved, special agents should obtain advances from the imprest fund. Requests for advance of funds must be made on Form 8562, Request/Receipt For Advance From Investigative Imprest Fund/Or Non-Recoverable Funds (see Document Manager) and approved by the SSA and authorized by either the Assistant Special Agent in Charge (ASAC); SAC; or Director, Field Operations. An agent may spend no more than $500 in personal funds for "out-of-pocket" confidential expenditures for any approved authorization.

  2. When appropriate, the SAC may wish to personally make a confidential expenditure. In other instances, confidential expenditures may be made on behalf of the SAC, such as a special agent purchasing beverage and food that the SAC may consume at a meeting with an informant. In these situations, if the SAC is personally making the request for an advance from the imprest fund, or a request is being made on behalf of the SAC, Form 8562 will be submitted to the Director, Field Operations for approval and will detail the amount, nature, and purpose of the proposed expenditure.

  3. If the SAC wishes to personally make an expenditure or another CI employee desires to make a confidential expenditure on behalf of the SAC against an authorized fund without securing an advance from the imprest fund, he/she can only do so with the prior written approval of the Director, Field Operations. The record of approval can be accomplished by memorandum that will be attached to Form 10411, Claim for Reimbursement for Expenditures on Official Business.

  4. In the case of an emergency, a request for an advance may be made through prescribed channels by telephone, telegraph, teletype facsimile, or electronic mail. Proper personal identification and official written documentation are to be made in every case by both the sender and receiver of such communication.

  5. Form 8562 also serves as a receipt for the advance of funds. The cashier or an alternate is the only individual who can make an advance of funds. The cashier(s) may not disburse more than the amount authorized by the ASAC; SAC; or Director, Field Operations and cannot release money from the imprest fund without an approved copy of the authorization or written notification from the SAC or Director, Field Operations of an emergency approval.

  6. There are no subsidiary imprest funds except in undercover operations wherein the cover agent is allowed to receive advances from the imprest fund cashier and make advances to other special agents. A special agent may not receive an advance from the cashier and advance all or part of it to another special agent or group of special agents. Each special agent must submit a request for an advance and receive it individually from the cashier.

  7. Special agents will not use an advance for personal purposes. At any time, a special agent should be in a position to account for advances and able to return the unused funds. For example, a special agent should not deposit an advance into a personal bank account (except for conversion into currency) or combine it with any other official funds. A special agent must keep the advance(s) intact, readily available for use on official business.

  8. The cashier may transmit advances or make payments for expenses to special agents in POD’s or geographical areas outside the location of the imprest fund by wire transfer, cashier’s check, checks drawn on the imprest fund, or by courier. Such transmittals are not to be construed as establishing a subsidiary imprest fund. In such instances, the cashier is also responsible for securing proper signatures on Form 8562.

  9. Special agents should account for an advance, as soon as possible after the expenditure(s) is made and return any excess funds. When a special agent returns all or part of the funds advanced, the cashier will prepare and sign in duplicate Form 2507, Receipt for Money-Cashier Advance Fund (see Document Manager), and forward the original to the special agent and retain the duplicate. Special agents may also deposit advances into their personal account for the purpose of returning advances to the cashier. Cashiers are not allowed to accept cash from special agents when they return an advance.

  10. The special agent will complete Form 10411 to account for expenditures made and request extensions of the outstanding balance when it is not practical to spend any portion of the advance by the end of the calendar month, from the SAC or the appropriate approving official. The special agent will complete Form 10411 by the 5th workday after the close of the month, irrespective of when the advance was issued during the month. If the special agent spent none of the advance, he/she still must request an extension using Form 10411. The special agent must submit a separate Form 10411 for each authorization.

9.11.1.4.5.3  (11-04-2004)
Accounting For Expenditures From The Investigative Imprest Fund

  1. To account for an advance, a special agent will prepare and submit Form 10411, a memorandum of activity, and an itemization of the expenditures. The special agent should attach to this itemization, original receipts, bills, cashier’s tape, and other documentation regarding the expenditures. A separate Form 10411 should be submitted for each authorization.

  2. If the SAC makes the confidential expenditure, or another CI employee makes a confidential expenditure on behalf of the SAC, Form 10411 will be approved by the Director, Field Operations. The Director, Field Operations is responsible for reviewing and monitoring confidential expenditures.

  3. Receipts for all items claimed as confidential expenditures should be obtained whenever possible. The receipts should be original, dated, itemized as to the services or supplies obtained, and show amount(s) expended. In undercover operations, the nature of some expenditures will render it impossible to obtain receipts. For expenditures of $25.00 or more in which a receipt was not obtained, the agent should include information as to the date, nature and amount of expenditures, as well as describe the reason(s) or circumstances as to why a receipt was not obtained using Form 10224, Confidential Expenditure Explanation (Optional) (see Document Manager) or by memorandum. The Form 10224 or memorandum should be attached to the Daily Expense Sheet claiming the expense.

  4. Expenditures without receipts that are less than $25.00 should be fully described on the agent’s Daily Expense Sheet or Form 10226, Summary of Daily Expenses/Advances Received (see Document Manager). In certain circumstances, the agents may retain original receipts for evidentiary, warranty or backstopping purposes. In these situations, the agents should submit a photocopy of the receipt annotated with the agent’s initials, date, and submit a memo with the reason(s) for maintaining the original receipt. The original receipt(s) maintained by the submitting agent should always be retained for audit purposes. All receipts must be initialed and dated by the special agent making the purchase. Copies of bank statements for all existing accounts are also to be forwarded to the cashier.

  5. Funds expended for security deposits may be treated as recoverable or non-recoverable funds, depending upon the certainty of their recovery. (See IRM 9.4.8, Undercover Operations).

  6. On the front of Form 10411, the special agent should show only the total amount claimed and describe it only as "Confidential Expenditures " . The special agent should also include a statement about the amount of advance to remain outstanding. The special agent is responsible for designating the correct SOC and authorization number. Form 10411 must be approved by the SAC.

  7. The special agent should not disclose sensitive confidential information on Form 10411 because the cashier forwards the original to the BFC. The receipts and other documentation are retained by the cashier with an attached photocopy of Form 10411.

9.11.1.4.5.3.1  (09-24-2007)
Accounting For Payments To Informants

  1. Criminal Investigation employees must adhere to the following guidelines when involved in paying informants: