Overview
This section mandates that the government's payment or disbursing office provide available and transmittable remittance data to a contractor concurrently with the initiation of an Electronic Funds Transfer (EFT).
Key Rules
- Responsibility: The obligation to provide payment information rests with the government's payment or disbursing office.
- Timing: Information must be forwarded as of the date the EFT instruction is released to the Federal Reserve System.
- Scope of Information: The office is required to send "available" payment information that is in a format "suitable for transmission."
Practical Implications
- Reconciliation: This ensures contractors receive remittance advice (detailing which invoices are being paid) at the same time the funds are moved, allowing for efficient accounting and accounts receivable management.
- Transparency: It provides a clear audit trail and timeline for when the government has officially initiated the transfer of funds.