The current state of government financing demands a great vigilance in coping with the associated dynamics. The exponential technological advancements and the competing factors have brought about a number of modifications in the day-to-day transactions in the public sector. The government has also enacted a number of Acts for purposes of ensuring smooth and fruitful management of financial services among the financial institutions within and without the territories. For instance, the Internal Revenue Service is a sensitive corporate department that requires high-level management skills given the magnitude of financial obligations that the department handles at a given moment. First, the paper compares and contrasts three payments options of my choice, namely cash transfer, online payment, and wire transfer, as well as discusses the pros and cons of each. It also examines three elements of Prompt Payment Act and one of the four major areas of limiting government cost. Thus, it proposes one strategy that I could use to pair the limiting of government cost with the government’s audit rights. Besides, the essay also makes two revision suggestions to the Truth in Negotiations Act (TINA), deemed to lessen the requirements for the government’s procedures of procurement of software’s technical data. Finally, the paper compares two exceptions to the Buy American Act, explaining their necessity as well.
First, to purchase software for processing tax returns, I have been obliged to consider three payment options, including cash transfer, online payment, and wire transfer. First, the three options are easy and simple to administer as the procedures involved are not complicated. Besides, all the options are also quick and the recipient can get the cash instantly unlike other forms where there are normally delays. Contrary to these similarities, the three payment modes also exhibit differences.
The reason I consider cash transfer appropriate for this kind of transaction is that it is usually relatively simple to accomplish and administer as compared to other forms of payment. All I need to do is to determine my eligible recipients of transfer and then send the cash to them. I may use the checks or simply transfer the money electronically up to the accounts of the recipients. The system is also quite secure given that after every transaction Internal Revenue Service will generate a currency transaction report for reference. However, the major problem with cash transfers is that they can occasionally cause issues of money laundering, which is a predicate crime. The crime has to a large extent encouraged consequential criminal activities ranging from human and drug trafficking to terrorism. In the same breath, cash transfers can in most cases be risky because they encourage robbery cases. Consequently, these rogues result in the loss of much cash in the process of transfer.
Another payment option that I have considered adopting in this transaction is online payment using either the e-pay service or the credit card. I find e-pay to be more convenient since it is faster, easier, and more secure, especially through the use of Government Tax Payment and Filling Service. This mode of payment involves no laundering or robbery as compared to cash transfers. Similarly, I should adopt the use of credit card online transfer. It will only entail feeding the credit card details of my firm and the information of the recipient clients before sending money to them. Such services are not as tasking as in the option of cash transfer. However, online payment has of late been associated with scamming activities. Many fraudsters have come up with the tactics of hacking people’s e-mail accounts to defraud them huge sums of money. Apart from that, e-payments and credit cards have been faulted for perpetuating impulsive spending of money since the internet is a hub of fabulous products for sale.
The third and final option that I should consider in my transaction is the wire transfer via the use of Money Gram and Western Union. Through this mode, services provided by the Society for Worldwide Interbank Financial Telecommunication transfer money. The option is fast as it processes the STP 820 into the ERP packages without upgrades or charges (Acquisition Government, 2015). Cash management between backs is also accurate, confidential, and reliable. Nonetheless, the wire transfer option has largely been faulted for being the conduit through which fraudsters perpetuate fraudulent deals. Criminals such as terrorists and drug traffickers have also been using the wire transfer to orchestrate their heinous acts around the world. All the same the government has launched a crackdown on the illegalities surrounding the wire transfer; however, there is a need for more improvements to fully subdue the system.
The Prompt Payment Act prescribes underlying policies, procedures, and clauses followed in the implementation of Office of Management and Budget’s regulations of prompt payment at 5 CFR Part 1315 (The White House, 2015). The first element of the Act entails paying for goods according to the provisions of the legislation examples of this element including the Accelerated Pay and the Fast Pay. Generally, the government will not be obliged to make invoice payments before the elapse of seven days to the due dates as specified in the contract unless the agency management determines so. It entails making earlier payment on the basis of case-by-case. Regarding the payments made by EFT, the agency ought to specify a date before the due date established for the settlement of payment at a Federal Reserve Bank. In case the due date falls on a weekend or on legal holidays when governmental offices are non-operational, the agency may make payment on the following working day. However, it will save them from the penalty of incurring late payment interest.
Secondly, the Act deals with penalties, interest, and other charges associated with payments effected outside the set dates. Through this element, the Act ensures little or no defaulting. Furthermore, the transaction parties also become vigilant when handling financial endeavors to avoid eventualities that arise as a result of irregularities. For example, concerning late payment, the designated payment office of the agency is supposed to automatically pay an interest penalty, without any prior request from the contractor. Such payment is done on condition that the designated billing office is entitled to receiving a proper invoice.
The third element of the Act provides for reporting cases that demand litigation to relevant institutions mandated to handle them. To make prompt payment seamless, Congress should eliminate certain restrictions that are confining in nature. For instance, Congress should permit banks to operate on Saturday even for half a day. Saturday is the only day of the week on which most employees such as civil servants may be free and can, therefore, carry out certain transactions freely.
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One of the ways through which the government can limit cost is by allowing multitasking in the civil service. It is essential for the government to work out modalities of limiting the cost in its expenditure. Multitasking is the situation whereby workers are to perform more than just one task to remain in their respective lines of duty. It presupposes that employees should gain proficiency in various fields before they can apply for one specific available position in the job market. Such staff members can then be versatile in their service delivery, juggling between a number of areas in which their varied expertise falls. The outcome of all these processes is the lean wage bill that the government will eventually realize. This strategy will perfectly be in line with the government’s audit rights. Constitutionally, the government is to ensure equitable distribution of resources and devise means of regulating expenditure. Wage bill is one of the areas which inflate the government budget of any country. In case the government manages to regulate the escalations in the wage bill, then the economic stability will no doubt be realized.
As pertains to the TINA provisions, Congress should consider making some adjustments geared towards lessening the requirements for the government procurement procedures. First, the government requires contractors to disclose all data pertaining to pricing and ensure that its disclosure is accurate, current, and complete. However, the government should also make use of certified professional valuers (Drezner, 2006). The valuers should receive the details of the commodities for them to work on even in the absence of the contractors. Thereafter, they should present a final report to the panel representing Congress for scrutiny before the final decision is made as to whether to complete the procurement procedure or not. Secondly, the audit department should develop a social computer software to conduct valuation accurately, automatically, and without prejudice. Such revision will eliminate the chances of collusion between the concerned parties and the results will be out promptly and available in every department for scrutiny. Otherwise, the current TINA manner of handling contractors will most likely create a leeway for corrupt deals to be accomplished. Therefore, if the audit department implements special software, it will lessen the corruption. Furthermore, such software is easier to operate for everybody knowledgeable in computer systems.
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The first exception of the Buy American Act restricts the purchase of supplies that are not domestic end products for the use within the United States (Howell, 2005). The second one provides that foreign end products may as well be purchased if the contracting officer finds out and concludes that the price of the least domestic offer is unreasonable. The similarity of these two exceptions is that both are relevant to the American corporate atmosphere. They protect the domestic industries by shielding the market from being dominated by foreign products. Besides, the exceptions also promote innovations and improvement in the production industries because of the bulky market that exists in the proximity.
However, the first exception limits the American diplomatic relations with foreign market partners by restricting the purchases of foreign products. On the contrary, the second exception gives a small leeway although with collateral restrictions which complicate the procedures in transactions. It is weird that the US corporate sector wants to dominate the foreign market when indeed it does not permit foreign products inside its territory.
Corporate financing is demanding and requires concerted efforts in dealing with the dynamics involved. Congress has been on the frontline to enact laws that can eliminate issues that disfigure the sector. The Internal Revenue Service has been the first beneficiary of a series of Acts enacted by Congress. The Acts have aided in streamlining the operations of the sector, hence augmenting efficiency in its service delivery. The continuous advancement in technology should be embraced in the corporate sector. Thus, it will ensure efficiency, accuracy, and credibility prospected by clients and all the stakeholders across the United States. Otherwise, all life’s activities are business-oriented and life is not serviceable without corporate affairs.