You have read only a summary of the
responsibilities of DOs and CDOs for submitting the
required financial reports. Many more factors and
important procedures are involved with these reports
before a DO submits them to his or her designated CDO.
In the following sections, we will take a look at some
of these requirements.
All DOs are considered to be agents of the Treasury.
Each DO is accountable to the Treasury for the cash
items (including receivables) in his or her possession.
Consequently, every DO must follow certain prescribed
procedures for maintaining accountability. We will
now look at some of these procedures and their required
BALANCING OF CASH FUNDS
Although all Navy DOs are responsible for the
balancing of cash funds, the requirements and
procedures for carrying out this responsibility are not
the same for all DOs. The balancing requirements are
based on whether the DO is located ashore or on board
a ship. We will look first at the general balancing
requirements and then at the requirements for afloat offices.
Cash in the possession of all DOs shall be balanced
daily. To do this, DOs will use the Daily Statement of
Accountability, DD 2657, as the permanent written
record. A DO must also account for documents
(One example of documents
representing cash are receipts for advances to agents.)
A DO remains responsible and accountable for these
documents even though they may not be physically in
the DOs custody. Documents representing cash will be
kept in the DOs safe and accounted for daily on the
Daily Statement of Accountability, DD 2657, and
monthly on the Statement of Accountability, SF 1219.
When the DOs accounts are inspected, the DD 2657
will be presented to the inspectors for examination.
In reality, most cash transactions are performed by
deputies, agents, and cashiers. For deputies, agents, and
cashiers, the Daily Agent Accountability Summary, DD
Form 2665, is the prescribed daily accountability
document. Daily, a deputy, agent, or cashier will submit
the DD Form 2665 to the DO using the Statement of
Agent Officers Account, DD Form 1081, as the covering
transmittal document. Except in the case of some afloat
units, the DO or primary deputy will balance all
deputies, agents, and cashiers daily, using a DD 2665.
The DOs aboard ship will also use the DD 2665 to
balance all deputies, agents, and cashiers. Whenever
workload and manning conditions permit, DOs aboard
ship are encouraged to balance all deputies, agents, and
cashiers on a daily basis.
Regardless of the
circumstances, however, DOs aboard ship are required
to balance all deputies, agents, and cashiers at the
following specific times:
Once each week
Immediately before and after each payday
The last day of each month
At any other time the DO suspects an irregularity
Remember, these times represent the minimum
requirement for DOs aboard ship. This means DOs
aboard ship must balance all deputies, agents, and
cashiers no less frequently than at each of these times.
DAILY STATEMENT OF ACCOUNTABILITY
The Daily Statement of Accountability, DD 2657,
is very similar to the monthly Statement of
Accountability, SF 1219. In fact, the DD 2657 is to one
day what the SF 1219 is to one month. If the DO should
cease operations on that day, the U.S. Treasury would
look on the DD 2657 for the amounts it would seek to
recover from that DO.
Refer to figures 7-1 and 7-2 for a sample DD 2657.
Amounts on the DD 2657 are reported at a summary
level only, including a summary of all disbursements
and collections made during the business day by the DO
and all reporting deputies, agents, and cashiers.
Detailed transactions are reported by the DOs
subsidiary records. Section I of the DD 2657 computes
the DOs accountability to the Treasury at the end of the
The accumulated DD 2657
accountability on the last day of the accounting period
(Month-to-Date column) is the accountability reported
on the SF 1219. Section II (for the current DO) and
Section III (for all prior DOs of that disbursing station
symbol number [DSSN]) summarize the elements that
make up total DO accountability. Sections II and III are
totaled in Section IV. Section I totals (except for line
1.0, AccountabilityBeginning of Day) will start with
a zero balance at the beginning of each new accounting
period (month) and whenever there is a change of DOs
before the end of an accounting period.