Who Are Certifying Officers?
Certifying officers are either employees or officials in the government whose duty is to approve and endorse financial transactions in the federal agencies. Their main role is to ascertain the legality, accuracy and legitimacy of payments effected by the use of federal funds.
These people are very instrumental towards ensuring accountability in the government functions. In their absence, there would be no way to counteract improper disbursements, fraud, or misuse of money, which may entail the breach of the federal financial laws and regulations.
Their Role in Federal Agencies
During the federal agencies, the gatekeepers of the public funds are the certifying officers. Before they release any payments they always make sure that there are no violations of the law that they are going to work on the basis of. This also involves examination of paper work including contracts, invoices, and authorizations.
Such officers will be dealing mostly with finance and business units. Their certification is basically an assurance that one has made the correct, accurate and well-supported payment. In a large sense, their certification is a formal document of compliance.
Federal Law on Certifying Officers
Now, what does the federal law have to say about certifying the officers? Section 3528 of the U.S. Code Title 31 contain the personal liability of the certifying officers over any payments which are in contravention of law or procedure which they certify. This legislation will discourage careless or bogus-certifications.
The certifying officer is required to check three important aspects under this statute and they are the legality of the payment, correctness of the information and availability of funds. Otherwise, this would lead to either a financial penalty or censure. This shows how seriously they are bound by federal law.
Key Duties and Liabilities
There are some key requirements of officers who are certifying. These involve checking whether the invoices are accurate, whether the contracts are good and whether goods or services received. In a nutshell, they are accountable in making sure that taxpayers money is well utilized.
But what goes with these responsibilities are large liabilities. They can be held on a personal basis to repay the misused money in case anything goes wrong because of their negligence or deliberate act of incrimination. In other cases, they can be subjected to administrative punishment or even criminal prosecution depending on the scale of the offense.
Also, certifying officers need to keep records and document all the verification processes undergone prior to authorization of payments. Such journal keeping does not only enhance transparency but also acts as essential documentation in case of audits, review or investigations of any wrongful dispensation of finances.
Governing Laws and Rules
There is a complex legal system by which certifying officers conduct their roles and obligations. These laws should be followed with an understanding that they should entail good disbursement of federal funds as well as accountability in financial decisions. The main legal and regulatory guidelines defining and standing behind the role of the certifying officers are given below.
Title 31 U.S. Code § 3528
This is the basic law which stipulates the duties of the certifying officers. In this federal statute, the officers are required to ensure proposals of payments are legal, correct, and attached with valid papers. The certifying officer can even be held personally liable in case a payment is found out to be incorrect or otherwise un-authorized. The law constitutes the hub of financial accountability in all federal institutions.
OMB Circular A-123
OMB Circular A-123 issued by the Office of Management and Budget outlines requirements of internal controls within federal agencies. It focuses on governance, risk management, fraud detection and control, as well as financial reporting. The certifying officers are supposed to adhere to the following guidelines in order to ensure integrity and accuracy of their certifications.
Treasury Financial Manual (TFM)
The TFM, published by the Department of the Treasury, renders elaborate guidelines on how to carry out financial management and disbursement activities. It details steps involved in the certification of the payments, in managing of the vouchers and in coordinating the services with the officers in charge of disbursements. The manual will assist in maintaining conformity and conformance within the various federal departments.
GAO Red Book
Informally called the GAO Red Book, this source of law describes how federal funds may be legally committed and expended. It instructs the certifying officers in guiding principles like purpose rule, time rule, and amount rule that supervises appropriations. It is a much needed source of finding answers to legal matters regarding the certification of payments.
Agency-Specific Financial Regulations
The financial management policies usually adopted by each federal agency are themselves, usually framed on the basis of policies formulated by the wider federal. Such in-house regulations as the DoD Financial Management Regulation or VA Handbook provide certain steps and anticipated compliance specific to the agency mission and funding arrangement.
Penalties for Violations
The punishment of the certifying officers who violate their duties differs with the nature of violation. These include:
- Personal liability to make wrong payments.
- Punitive measures such as being demoted or put on suspension.
- Criminal penalties on intentional fraud cases.
- Disqualification of holding federal financial position permanently.
- Reputational loss, that impacts the future career.
The mentioned punishments help to emphasize the necessity to comply with the federal law and regulations properly and carefully.
Examples and Real Cases
The most commonly known case was that of a Defense Department certifying officer who had okayed various payments that had been made to a contractor although they had not been authorized. The case resulted in individual financial liability and policy change to enhance internal check and balances.
Another case example is that of the Department of Veterans Affairs which had a certifying officer certifying payments without documentation. These situations caused disciplinary measures and triggered an audit showing that procedures of payments had systemic flaws. These cases in the real world demonstrate that mistakes that happened during certifying may have severe consequences.
How to Become One
An applicant has to work in a federal agency to be employed as a certifying officer and should be competent concerning regulations on financial matters. They are usually well trained even in specialized courses like the Prompt Payment Act, Appropriations Law and the internal agency procedures.
A person has to be appointed by the financial management office of the agency after being trained. The classification may be done through writing and the records stored in the personnel records. There is a general necessity to be continuously trained to keep up with the changing financial regulations. Visit this Legal News & Updates category for more updates.
