Page 18 - FCA Diamond Point Sept 24_Edits

FROM THE FIELD

BEING A PIONEER IN MILITARY BANKING (Cont’d)
In evaluating the test results, participating offices made over 43,000 disbursements valued at $21.7
million. That represented about 5% of total cash and Treasury check disbursements. Additionally,
800 survey responses indicated an 82% rating of good or very good; 11% as fair; and, 7% as poor
(usually without specifying a reason). Anticipating Army approval for a full roll-out, BA agreed to a
new contract at the end of May 1984, pending approval by Department of the Army.

On June 25, 1984, the Assistant Secretary of the Army (Financial Management) approved the use of
travelers checks by Army finance and accounting offices worldwide. This was followed on June 26,
1984, with the contracting officer signing the contract with BA effective July 1, 1984, for 12 months,
with two additional 12-month periods. Those initially involved in evaluating the concept started
very quickly under the new contract.

To expand the travelers checks program, the Office of the Comptroller of the Army, Indianapolis,
issued a letter on July 19, 1984, to all major Army commanders and finance offices (with
Disbursing Station Symbol Numbers) inviting them to participate on a volunteer basis.

Finally, on September 28, 1984, the Secretary of Defense signed a memorandum to all Military
Departments and Defense Agencies, Subject: Cash Management Improvements, recommending
the Army travelers check program. His letter recognized some of the benefits of reducing levels of
cash in finance offices; reducing interest from U.S. Treasury borrowing activities, reducing
administrative costs for travel programs; and providing protection in case of loss or theft.
On December 6, 1984, the Secretary of the Treasury presented 19 government
employees, including myself, with an “Award for Distinction in cash management
for excellence in endeavors associated with the Department’s Governmentwide
Cash Management Project.” Treasury held the ceremony in their “Cash Room,”
which opened in June 1869 to conduct the government's financial business and is

now part of the Treasurer of the United States' office.

The travelers check program continued for a few years after my departure.
Unfortunately, little is known when the program stopped, in the early 1990s
after BA stopped issuing travelers checks. More modern alternatives, such
as charge cards and automatic teller machines, and electronic funds transfers
became more desirable financial management tools. Certainly, the federal
government’s travel card program, which continues to this day, vastly reduced
the need to make travel advances and accrued per diem payments by cash or
Treasury checks. Increase emphasis on SURE-PAY and check-to-bank in 1986
also dramatically reduced the need of unit payrolls and large cash balances.
One thing for sure, BA presented a plaque to the United States Army, date not
indicated, recognizing the disbursement of $1 billion of “World Money Bank America Travelers
Checks.”

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