- Statutory Compliance
- Electronic Billing / Timekeeping
- Legal Services
Delegations of Authority
Litigation & Resolutions
Corporate Operations Branch
Consumer & Legislation
7.1 Invoice Package
This chapter covers the procedures for completing an Invoice Package
and submitting it to the FDIC.
Complete a separate Invoice Package for each matter you have been
assigned. The FDIC assigns each matter a different matter number.
Therefore, each matter should have its own invoice. Each matter is
charged to a different account and is often supervised by a
different Oversight Attorney.
The Invoice Package consists of the following:
Chapter 6 (Case Plan and Budget), you must have an approved
Budget from the FDIC before you can be paid. An approved Budget
gives you the “all clear” to submit an Invoice Package for payment
of your services.
7.2 Invoice Package Submission
You should submit Invoice Packages on a monthly basis unless the
amount (fees and expenses) to be invoiced is less than $500. If the
amount (fees and expenses) is less than $500, you should submit
Invoice Packages on a quarterly basis, unless doing so would cause
undue hardship to your firm.
You should submit Invoice Packages for fees and expenses within 30
days of the last day in your billing period, except as noted above.
The Legal Division recognizes that firms may experience delays in
receiving supporting documentation for expenses included in your
Invoice Package to the FDIC. Therefore, you should submit Invoice
Packages for such expenses within 60 days of the last date in your
At the conclusion or termination of the matter, you should submit
your final Invoice Package for fees and expenses within 90 days of
the matter’s conclusion or termination. Refer to
Chapter 8 and
You may not bill the FDIC more than once per month. You also
may not bill for overlapping service periods (e.g., May 1
through May 31 and then May 15 through June 15).
Failure to submit invoices in a timely manner as set forth
above may significantly delay the FDIC’s invoice processing
ABSENT EXTRAORDINARY CIRCUMSTANCES, THE FDIC WILL NOT PAY
INVOICES SUBMITTED OVER ONE YEAR FROM THE DATE THAT SERVICES
The distribution and mailing instructions are unique to the Legal
Division office or section supervising the matter. See your
referral letter or contact your Oversight Attorney for instructions.
7.3 Billable Fees and Expenses
You may bill the FDIC reasonable charges for fees and expenses in
accordance with the following guidelines.
You may bill the FDIC reasonable fees at approved LSA rates or other
billing arrangements approved by FDIC in writing for:
Legal work on matters as approved; and
Travel time (when no substantive FDIC work is performed) at 50% of
approved LSA rate.
The FDIC requires law firms to reduce the hourly rate
charged by 50% while an attorney is traveling unless legal
work is being performed for the FDIC. The FDIC does not pay
for First Class airfares or luxury hotel accommodations. The
FDIC will pay only for air travel at coach rates, and
accommodations at the lower of the government or corporate
discount rates. Travel-related expenses must be incurred in a
prudent manner and in accordance with the guidelines set forth
in the Deskbook.
Compensation cannot be based upon a contingent fee arrangement
unless specifically approved in writing. Absent express Legal
Division permission, experts and other professional service
providers may only be compensated for fees and expenses in
accordance with the requirements of this Deskbook. . The Legal
Division considers your oversight of experts and other professional
service providers an important duty under your legal referral.
You may bill the FDIC reasonable charges for the following expenses.
Requirements for submitting copies of receipts are indicated below.
These requirements do not alter your duty to maintain original
receipts and other supporting documentation for all expenses for
- Itemized in-house copy charges (no more than $.08 per page; no
receipts necessary, but indicate total number of copies).
- Itemized fax charges (telephone long distance charge (line charge)
is the only acceptable charge; receipts not necessary).
- Itemized long distance telephone charges (receipts not necessary).
- Itemized overnight delivery (receipts necessary). Itemization should
include name of person to whom the delivery was sent.
- Itemized electronic research (receipts and/or invoices necessary).
Itemization should include person’s name who is performing the
research. In addition, the FDIC Research Bank should be consulted
before any other research is performed and it should be itemized on
the invoice. Prior approval by the Oversight
Attorney is required for electronic research.
- Out-of-pocket expenses relating to providing training to FDIC
- Itemized extraordinary postage (i.e., bulk or certified mail;
- Expert witnesses and other professional service providers (invoices for fees and receipts for expenses necessary).
Investigators (invoices for fees and receipts for expenses
- Court reporters (invoices necessary).
- Outside photocopying (receipts and/or invoices necessary).
- Publication notices (receipts and/or invoices necessary).
- Other Subcontractors, if approved (receipts and/or invoices
- Filing Fees (receipts and/or invoices necessary). Please note that outside counsel should not bill for federal court fees when filing
on behalf of the FDIC.
- Other case-specific (non-overhead) expenses (receipts and/or
invoices necessary). Approval should be documented in the case file.
- Allowable travel expenses (refer to Section 7.7 for submission
and receipt requirements).
State and local taxes on FDIC allowable expenses will be
7.4 Non-Billable Fees and Expenses
You may not bill the FDIC for the following fees
Services of billable individuals who have not been included on the
approved rate schedule attached to your LSA.
· Excessive number of attorneys performing services in a matter.
Invoice preparation, review, or for corrections to the invoice
required by the
FDIC oversight attorney or legal Information
Secretarial or clerical overtime that has not been approved by your
· Hourly fees for time spent photocopying, sending facsimiles, etc.
Excessive intra-office conferences between attorneys or paralegals
purpose of providing instruction or status.
Excessive time spent in “file review.”
Excessive time spent in “review and revision” of documents that
· Educational or development costs for you to become generally
with statutory and case law affecting the FDIC.
Charging attorney time for tasks that should be performed
effectively at less expense by a paralegal or
secretary, or charging
paralegal time for tasks that should be
performed by clerical workers.
· Hours charged at a more senior attorney rate when a matter should be
handled by a less senior attorney.
- Ordinary postage.
- Charges related to word processing.
- Charges other than “actual time” charges for electronic research
(e.g., Westlaw or Lexis). The FDIC Research Bank should be
consulted before any other legal research is performed.
- In-house photocopying charges at more than $0.08 per copy.
- Clerical time for photocopying, sending facsimiles, filing etc.
- Excessive/unnecessary overnight mail charges.
- Meals, unless you are on approved travel.
- Daily commuting expenses.
- Sales tax (except for lodging) or surcharges imposed by utilities or
- Tax on services.
- Any costs relating to filing fees in United States District Courts
or Courts of Appeal which the FDIC is not required to pay (pursuant
to 12 U.S.C. 1819(b)(4)).
- Cell phone roaming charges.
service that is customarily included in the normal overhead or
administrative expense of running a law firm (e.g., rent,
electricity, local telephone charges, HVAC, bill preparation).
- Routine budget preparation.
- Charging attorney time for preparing and presenting training
to the FDIC.
7.5 Over Budget Invoices
the full payment of the Invoice Package causes the legal matter to
exceed the grand total of the approved Budget, the
FDIC will notify you. The Invoice Package cannot be paid until an
Amended Budget is submitted and approved. Refer to
Chapter 6 for further information.
Invoice Package will be returned to you with a notice that an
approved Amended Budget is required before the Invoice Package
can be properly resubmitted for payment.
7.6 Law Firm Invoice Format
Law firm invoice format requirements are discussed below.
Use the following format when totaling the hours and charges for all
Date of Service
Name/Initials of Individual
Approved Hourly Rate
Amount (Rate x Time)
Draft Motion to Dismiss Complaint
Use the following format for recapitulation of the total services
billed on your statement:
Block Billing of Services
Time billed for each activity should be identified separately. Do
not combine different types of activities in one entry on the
invoice. “Block billing” of fees is not acceptable, even if the same
individual performed the activities, except for multiple, related
activities for which only a small amount of time (no more than 30
minutes) is expended, as in the following example:
Date of Service
Name/Initials of Individual
Approved Hourly Rate
Amount (Rate x Time)
with E. White re: briefing schedule; draft letter to E. White
Description of Fees
The description of services or activity should be brief and
"Legal research on statute of limitations issues."
"Telephone calls to J. James and M. Smith re: motion to
Billing in increments of greater than 0.1 billing hour (6 minutes)
Use the following format for expenses:
- Copy charges (unit cost multiplied by unit amount).
- Fax charges (date, phone number, and amount); telephone long
distance charge (line charge) is the only acceptable charge.
- Long distance telephone charges (date, phone number, and amount).
- Overnight delivery (date, amount and name to whom delivery was
- Electronic research, including the Legal Research Bank, (date, amount and name of person performing research).
- Extraordinary postage (i.e., bulk or certified mail) (date and
Claims for travel-related expenses must be made using the FDIC’s
Firm Travel Voucher - Word
(see also the sample travel voucher)
Example of Itemized Expenses
Faxes 02/28/05 (617-261-9192)
Telephone 02/02/05 (617-262-8119)
Overnight Delivery 02/15/05
Electronic Research 02/2705
Extraordinary Postage 02/1905
J. Smith 02/01/05 - 02/25/05
- Expert Witness
Travel for J. Cox 02/5-02/6
Washington DC to Settlement Conference
7.7 Travel Reimbursement Guidelines
The following guidelines are provided to assist in compliance with
requirements to limit expense reimbursement to those costs that do
not exceed FDIC travel reimbursement regulations.
Eligibility for Reimbursement
To be entitled to travel reimbursement, you must be on a temporary
assignment that is at least 50 miles in distance from either your
office or residence. If a temporary assignment concludes during the
workday and is located within 100 miles of your office or residence,
you are expected to return to your residence, rather than remain at
the temporary location overnight.
You must ensure that all travel on behalf of the FDIC is necessary
and approved by the Oversight Attorney.
Air travel should be in coach class only, unless you bear the cost
of the difference between coach and business or first class. Travel
should be planned as far in advance as possible to take advantage of
discounted fares, especially if reasonable certainty exists that the
event will take place. If a restricted fare is booked and you
require a change, a reasonable exchange fee may be claimed. Special
approval is required for international air travel.
No car larger than a mid-size should be rented, unless there are
three or more passengers or a larger vehicle is necessary to
transport equipment, files, etc.. Deviations from standard policy
should be documented. Original receipts must support claims for
rental car gasoline. The FDIC will not reimburse you for Personal
Accident Insurance (PAI) or Personal Effects Coverage (PEC). The
cost of Collision Damage Waiver (CDW) coverage is allowed if you do
not have insurance coverage for collision damage.
You should make use of government rates whenever possible. Any hotel
expenses considered excessive or unreasonable will not be
On overnight travel status you may only be reimbursed on a per diem
basis. The current FDIC prorated per diem rates allowable are
listed below. The current FDIC per diem rates allowable are
listed in Section 16.0 of the
Contractor Travel Reimbursement Guidelines. Specific per diem
rates for different localities may be found on the
General Services Administration (GSA) web site. Where the
information contained on the GSA web site and
Guidelines differs, the GSA web site controls. When you are on
per diem, incidental expenses such as laundry and cleaning are
considered to be covered by the per diem.
Per Diem for Overnight Travel
If travel extends into more than one calendar day, prorated per diem
for partial days is required. One-fourth of the per diem allowance
is payable for each quarter-day or fraction thereof:
If you leave your
Prorated Per Diem Rates
12 Midnight to 5:59AM
6:00 AM to 11:59 AM
12 Noon to 5:59 PM
6:00 PM to 11:59 PM
If you leave your
12 Midnight to 5:59AM
6:00 AM to 11:59 AM
12 Noon to 5:59 PM
6:00 PM to 11:59 PM
you depart from and/or return directly to your residence, per diem
is allowed from the time of departure from your residence until the
time of return to your residence. If departure is from and/or return
is to your office, per diem is allowed from the time of departure
from your official station until the time of return to your official
station. Outside Counsel must provide start and return times with
their supporting travel documentation to demonstrate the number of
quarters of the per diem allowance they are entitled to receive.
Miscellaneous Meal Expense
If you are in non-overnight travel status and are away from your
residence for at least 11 consecutive hours excluding mealtime, you
may be reimbursed on an actual expense incurred basis with the meal
cost limited to a $10.00 charge (receipt required) or $6.00 without
Long Distance Personal Calls
While on an overnight travel assignment, you may claim the actual
amount incurred, not to exceed $3 per day, for personal long
distance calls. This is in addition to per diem, if applicable.
Itemize your calls on the Law Firm Travel Voucher.
Use of Privately-Owned Vehicle
You may be reimbursed for use of your privately-owned vehicle while
on FDIC-related business. The maximum reimbursement rate will be the
rate stipulated by the IRS.
you choose to use your vehicle in lieu of air travel, the maximum
reimbursement will be the lesser of the cost of air travel or
mileage reimbursement and the additional per diem, if any.
FDIC does not insure privately-owned vehicles for liability.
The use of taxicabs is permitted while you are on official travel
for FDIC. Reimbursement for taxicab fares (plus the customary 15%
tip) will be made only if an appropriate receipt is submitted. Taxi
hire is appropriate when:
· Public transportation, airport limousine service, and/or hotel
transportation is not available or when time or other
factors make it
impractical to use available public conveyances;
· Traveling between transportation terminals and your residence, hotel
office while on official travel status; or for
· Traveling from your residence to your office to depart on assignment
requiring at least one night’s lodging, and from your office to your
residence on the day you return from that trip.
Taxi fares for trips used to obtain meals will not be reimbursed.
Non-Reimbursable Travel Expenses
Examples of expenses that will not be reimbursed include the
· Alcoholic beverages, entertainment;
· Laundry, dry cleaning and pressing (covered by per diem
· Travel insurance;
· Parking fines;
· Gratuities and tips paid to service staff inside the lodging
by per diem reimbursement).
Cost of travel for spouses, other family members, and friends is
allowable under any circumstances.
Travelers will not be reimbursed for excess costs caused by:
indirect route as a matter of personal preference;
· Premature departure for personal reasons from a temporary location;
Extending a stay for personal reasons.
Law Firm Travel Voucher Completion
After completion of travel, a Law Firm Travel Voucher must be
submitted with the Invoice Package for reimbursement. Indicate the
purpose of travel on the first line. Dates and times of each
departure from residence or office, arrival at the place of
temporary assignment, and arrival at the office or residence must be
shown on the Law Firm Travel Voucher
(see also the sample Travel
Except for per diem expenses, you must submit valid original
receipts with the Law Firm Travel Voucher for all travel
expenditures regardless of cost. If a receipt is not normally
provided for the expense (bus or subway token, etc.) the
certification signed by the traveler on the Law Firm Travel Voucher
will justify the expense.
Receipts submitted with the Law Firm Travel Voucher should be
originals indicating the name of the payee, date paid, amount, and
the service rendered. This includes the original Passenger Receipt
Coupon of the airline ticket. If an electronic ticket is used, the
boarding passes for each flight must be submitted with the Law Firm
The penalty for submitting a Law Firm Travel Voucher that
knowingly falsifies any item in the claim can be three times
the amount of the claim plus a civil money penalty of $10,000
under the False Claims Act. 31 U.S.C. 3729. Also, false
statements may be criminally prosecuted under 18 U.S.C. 1001.
The penalty can be up to 5 years in jail. A corporation that
violates 18 U.S.C. 1001 can be fined up to $500,000. 18 U.S.C.
7.8 LIF&E Form
The following provides guidance when completing the
LIF&E form - Word.
must have a number unique to the law firm or law firm office that
is submitting the invoice.
If you are submitting multiple Invoice Packages, make sure you
have a separate LIF&E form for each Invoice Package.
number can be no longer than 20 characters. Omit any dashes,
slashes, spaces, leading zeros, or other special characters.
The law firm
and financial institution involved with the legal matter must be
the same as identified in the referral letter.
period should be monthly. For example: FROM: 12/01/05 THROUGH: 12/30/05.
period should be quarterly when monthly fees and expenses are less
than $500. For example: FROM: 01/01/05 THROUGH: 03/31/05.
If there are
expenses incurred for anything other than the present billing
period or the immediately preceding billing period, ensure that
the expenses have not been previously reimbursed.
Sign at the bottom to certify that the LIF&E form is true and
LIF&E form must have an original signature.
7.9 FDIC Invoice Package Review
The Invoice Package should be submitted in a timely manner (refer
to Section 7.2) and as directed in your referral letter or by
your Oversight Attorney. Upon receipt, the FDIC Legal Information
Technician reviews the package and does one of two things:
Forwards it to your Oversight Attorney for review and/or approval;
Rejects it. If your Invoice Package is rejected, your Oversight
Attorney or Legal Information Technician will notify you of the
deficiencies to be corrected.
The Oversight Attorney performs a substantive review of your
invoice. If any amounts are disallowed, you will be notified at the
time of payment; such information appears on the check stub or EFT
NOTE: FDIC invoice processing time is a minimum of thirty
(30) days after receipt of a correct or proper Invoice
Package. Payment is generally not made in less than thirty
The FDIC is required by statute to make payments by
funds transfer (wire transfer) absent a waiver.
7.10 Reconsideration of Disallowances
must submit all requests for reconsideration of disallowances
within 90 days from receipt of notice of disallowance. The
request must include matter number, invoice number, and the amount
disputed, along with justification for reconsideration (e.g.,
copies of missing documentation, narrative rationale).
The submission of erroneous bills or requests for
reimbursement of inappropriate charges may result in
sanctions. Under no circumstances may Outside Counsel attempt
a set-off or recoupment, obtain a charging or retaining lien,
or withhold files in the event of a dispute over payment for
7.11 Audit and Records Retention
Outside Counsel must permit the FDIC, the FDIC Office of Inspector
General, the FDIC Legal Division's Internal Review Unit, and the
General Accounting Office, or their representatives, to conduct
audits or reviews of your FDIC billings, including previously paid
For purposes of subsequent audits, Outside Counsel must retain the
Copies of all
Invoice Packages (refer to Section 7.1);
underlying support documentation not submitted with the Invoice
sheets and time and expense adjustment records. Example of
adjustment records includes documentation explaining differences
between time sheet hours and invoice hours for billable
See the Electronic Billing
Guidelines for recording requirements. The FDIC reserves the right to obtain additional
information upon review of any itemized fee bill or support
7.12 Frequently Asked Questions
Below you will find answers to questions often raised by Outside
Counsel when submitting Invoice Packages.
May I have expert witnesses hired by my firm call you when they have
questions about their payment?
No. Any expert or other entity hired or retained by your firm is a
subcontractor and should address all payment questions to you. Their
invoices are included as expenses in your Invoice Package to the
FDIC. The FDIC will not pay them directly.
When should I submit an Invoice Package?
On a monthly basis, if the total equals $500.00 or more. If your
total is less than $500.00, submit your Invoice Packages quarterly,
unless this causes undue hardship.
May I bill for clerical or secretarial overtime?
No, unless such overtime is requested by the Legal Division or
occasioned by an emergency situation created by the FDIC. In any
case, the Oversight Attorney assigned to your matter must approve
clerical or secretarial overtime.
know I may bill the FDIC for extraordinary postage (e.g. bulk or
certified mail). May I also charge for ordinary postage?
What common mistakes should I avoid when submitting my Invoice
Make sure you use a different invoice number for each Invoice
Package you submit.
Ensure the totals on your Invoice Package equal the totals on the
Do not forget to submit all necessary receipts.
Make sure your “billing from” and “billing through” dates do not
overlap. For example, if an Invoice Package covers the period from
January 2 to January 16, a subsequent Invoice Package should not
cover the period from January 10 to January 29.
sure to itemize attorney and non-attorney fees separately.
Our firm charges $0.10 per page for in-house photocopying. May I
bill the FDIC for this amount?
No, the maximum charge is $0.08 per page.
What information do I need to include regarding fax and phone
You need to include the date, phone number and charge for each call.
The bill from the carrier must be retained for three years after
final payment under the legal referral for audit purposes.
What happens if there is something wrong with my Invoice Package?
An FDIC Legal Information Technician will notify you. If certain
fees and expenses are disallowed, you will be notified on your check
stub or EFT remittance form.
Where the provisions of the Guidelines and Legal Division
policies are contrary, the Legal Division policies and the