FMM_2_12_2_PaymentofClaims_122110.pdf

TSA Financial Management Manual December 21, 2010

Part 2 - Chapter 12, Section 2 File: 5000.10

PAYMENT OF CLAIMS FOR PROPERTY DAMAGE OR LOSS,

PERSONAL INJURY, OR DEATH

1. PURPOSE

The purpose of this document is to define operating procedures for the disbursement and recording of claims for property damage/loss, personal injury, or death, arising under the Federal Tort Claims Act or the Military Personnel and Civilian Employees’ Claims Act.

During the routine performance of official duties on behalf of TSA, employees interact with millions of passengers on a daily basis. These interactions may give rise to claims for property damage or loss, personal injury, and in extreme cases, death. For example, property may be lost or damaged. Also, a passenger may be injured during passenger or baggage screening, or during a motor vehicle accident involving a TSA employee.

NOTE: This procedure will not address claims for work-related injury or illness arising under the Federal Employees’ Compensation Act, or claims governed by TSA or DHS contracts.

2. POLICY REFERENCES

• 18 USC §§286, 287, 1001 and 1002 – Discusses the punishment options for filing false or fraudulent claims against the United States Government.

• 28 USC §§1346, 1402, 2401, and 2671-2680 (Federal Tort Claims Act (FTCA)) – Provides that with certain exceptions the United States will be liable for the negligent or wrongful acts or omissions of its employees who are acting in the scope of their employment.

• 31 USC §3721 (Military Personnel and Civilian Employees’ Claims Act (MPCECA)) – Provides that an agency may at its discretion pay an employee up to $40,000 (more in cases of emergency evacuation or “extraordinary circumstances”) for property loss or damage (but not personal injury) sustained incident to service.

• 31 USC §§3729-3733 (False Claims Act) – Prohibits the presentation of false claims to the Government and the making of false records to get a claim paid.

• 28 CFR 14 – Discusses the process of filing claims via either a SF-95 (Claim for Damage, Injury, or Death) or other written notification, against the U.S. Government under the Federal Tort Claims Act. The claim must be filed against the Federal agency whose activities gave rise to the claim.

• Treasury Financial Manual, Vol 1, Part 6-3100 – Provides guidance, procedures, and forms necessary to process certifications from the Judgment Fund for settlement of administrative and litigation claims against the U.S. Government.

3. DEFINITIONS

• Authorizing Official (Approving Official) – A TSA accountable official designated to approve payment, based upon consideration of all relevant and reliable information, that a http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00000286----000-.html� http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00000287----000-.html� http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001001----000-.html� http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001002----000-.html� http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001346----000-.html� http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001402----000-.html� http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00002401----000-.html� http://www.law.cornell.edu/uscode/html/uscode28/usc_sup_01_28_10_VI_20_171.html� http://www.law.cornell.edu/uscode/html/uscode31/usc_sec_31_00003721----000-.html� http://www.law.cornell.edu/uscode/html/uscode31/usc_sup_01_31_08_III_10_37_20_III.html� http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=43c7af31669cc7b3a3d0f81893e2cbde&rgn=div5&view=text&node=28:1.0.1.1.15&idno=28� http://www.fms.treas.gov/tfm/vol1/index.html#Part%206�

TSA Financial Management Manual December 21, 2010 payee is eligible for the payment according to applicable statutory, regulatory and policy guidance.

• Claims Management System (CMS)

– A TSA system used to receive, investigate, and adjudicate Federal tort and MPCECA claims against TSA.

Delegated Authority Official (DAO)

– An individual delegated the authority to settle, approve, cancel, or deny a Federal Tort Claims Act or Military Personnel and Civilian Employees’ Claims Act claim on behalf of the Federal Government. This individual is delegated the authority from the Chief Counsel.

Fiduciary Responsibility

– A relationship imposed by law where someone acts in the capacity of a "caretaker" of another's rights, assets and/or well being. The fiduciary owes an obligation to carry out the responsibilities with the utmost degree of good faith, honesty, integrity, loyalty, and undivided service of the beneficiaries' interest.

FINCEN

– U.S. Coast Guard’s Finance Center, TSA’s accounting service provider.

Fiscal Year

– The Federal Government's accounting period that begins on October 1 and ends on September 30, and is designated by the calendar year in which it ends.

Funds Approving Official

– A TSA accountable official (e.g., funds manager – Office of Budget and Performance or designated program office, or Travel Certifier) that attests that funds are available for the purpose, time, and amount required to fulfill an actual or anticipated legal obligation. Funds Approving Officials are often referred to as Funds Certifiers or Funds Certification Officers.

Judgment Fund

– U.S. Treasury maintained fund, which is available for payment of certain court judgments and compromise settlements of actual or imminent lawsuits against the U.S. Government.

Pecuniary Liability

4. RESPONSIBILITIES

– The financial obligation to repay money improperly disbursed.

A. OFM Accounting Branch

(1) Play an oversight role throughout the claim funding and expenditure process.

(2) Coordinate each fiscal year with the OFM Claims Management Branch to establish an obligation posting. The obligation amount will represent the dollar value of claims finalized for payment but not yet disbursed by FINCEN.

(3) Monitor the obligated amount throughout the year and properly close at the end of the fiscal year to ensure the obligation is not over/under stated in TSA’s accounting system.

(4) Provide oversight for any claims filed under the MPCECA that will be obligated individually.

TSA Financial Management Manual December 21, 2010

B. OFM Claims Management Branch (CMB)

(1) Ensure that the claim was filed correctly, within the established timeframes, and is factual in the events and statements presented.

(2) Claims filed under the FTCA and the MPCECA must be presented to TSA within two years after the incident occurred.

(3) Approving payment in full or in part for claims up to $2,500.

C. Office of Chief Counsel (OCC)

(1) Responsible for establishing claim examiners with delegated authority (DAO) who review Federal Tort Claims and claims filed under MPCECA on behalf of the U.S.

Government.

(2) Approving payments greater than $2,500 and reviewing and deciding personal injury claims.

D. FINCEN

(1) A certifying official will attest to the correctness of disbursement vouchers.

(2) The certifying official will use the information provided by the DAO as the basis for the certification. Once a disbursement voucher is certified, a claim will be processed for payment.

5. PROCEDURES

A. Individual or Individual’s Agent Filing the Claim

(1) All FTCA claims against the United States Government will be submitted using either an SF-95 (Claim for Damage, Injury, or Death) or other type of written notification that meets the requirements of a sufficient claim. Claims filed under the MPCECA will be submitted using either a DD Form 1842 or other type of written notification that meets the requirements of a sufficient claim. A TSA web link to the SF-95 and its submission instructions is located at: http://www.tsa.gov

(2) It is important that the individual and/or agent provide all necessary information with the initial claim filing. Once the claim has been adjudicated, if payment is appropriate, the claimant will receive a payment form giving them the choice of receiving their compensation by check or electronic funds transfer (EFT) payment.

B. OFM Claims Management Branch Processes and tracks all claims using the Claims Management System (CMS). Claims $2,500.00 and under adhere to the following process:

(1) Claims are received via U.S. Postal Service, fax, express delivery service, or other means and are entered into the CMS.

http://www.tsa.gov/�

TSA Financial Management Manual December 21, 2010

(2) Claims are automatically pre-assigned to an examiner for review. Based upon the review, a recommendation to approve (pay the full amount of the claim), settle (pay an amount less than the amount claimed), or deny is made. The examiner forwards the claim package along with the recommendation to the DAO.

(3) The DAO reviews the package and examiner’s recommendation and makes the final decision to approve, settle, or deny the claim. The DAO adds the appropriate letter to the claim.

(4) The claimant is forwarded a claim approval, settlement or denial letter. The denial letter gives options for the claimant if they do not agree with TSA’s decision. The settlement letter gives the claimant an opportunity to accept the settlement offer or reject it and request a reevaluation. Both the approval and settlement letter have an attached form that requires the claimants Social Security Number, name, address, signature and payment option. The claimant must respond within 90 days or the claim may be denied.

(5) Upon receipt of the claimant’s completed payment form, the OFM CMB financial analyst reviews the letter for completeness. If any additional information is required the claimant will be notified.

(6) For approved claims:

The OFM CMB financial analyst authorizes the payment and forwards an electronic file to FINCEN for actual disbursement of the funds. A copy of the payment form is also forwarded to FINCEN.

(7) For settlement claims:

(a) If the claimant accepts TSA’s settlement amount, the OFM CMB financial analyst authorizes the payment and forwards an electronic file to FINCEN for disbursement of the funds.

(b) If the claimant rejects TSA’s settlement, he or she may request a reevaluation of the settlement amount. The rejected settlement form and claim file are returned to the examiner to continue the negotiation process. Steps 3 and 4 are repeated after the reevaluation is completed.

(c) If the claimant rejects the reevaluation decision letter, the claim is denied and the claimant may file suit in an appropriate U.S. District Court not later than six months after the date the letter was mailed.

(d) Claims over $2,500.00 follow the same basic process except for the payment phase. These claims are paid out of the U.S. Justice Department’s Judgment Fund.

Disbursements are not posted to the TSA accounting system since TSA funding is not utilized.