Transcript MARY MOINESTER USPFO for Maine

COOPERATIVE AGREEMENTS
ADVANCE PAYMENTS
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MARY MOINESTER
USPFO for Maine
BACKGROUND
1. Comptroller Division – 14 yrs
Fiscal Acctg, Voucher Exam, Budget
2.
Purchasing & Contracting – 4 years
Contract Specialist, GOR (1 year)
3. Email: [email protected]
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Cooperative Agreements
and Advance Payments
•
Regulation NGR 5-1:
Chapter 10
•
Two methods of payment to the States under the
MCAs:
A. Reimbursement – State makes payments and
requests Federal reimbursement in accordance
with the terms of each Appendix.
B. Advance Payment – Funds requested up
front in support of the particular Appendix.
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REASON FOR
ADVANCE REQUEST
• Two reasons why a State would request an advance:
1. State statute requires sufficient funds are available
in State Treasury prior to funding an obligation
2. Sufficient funds are not required to be
appropriated by the State legislature in order to incur
funding obligations in contemplation of Federal
reimbursement. (This could be due to a new project
or supply need for which funds were not
appropriated.)
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REQUESTING AN ADVANCE
• The State Military Department will prepare a
memorandum requesting an advance which will
include:
1. State statute (if applicable)
2. Statements indicating the following:
a. SMD agrees funds will be used only for
authorized services
b. SMD books and records are available upon
request by authorized representatives of USPFO,
Chief of NGB, Comptroller, or State Auditor
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c. Time between receipt of Federal Treasury funds and
State disbursement is minimal
d. Reimbursement cycle time period – State billing to
receipt of payment from DFAS
e. Action Officer name, address and telephone number in
the event additional information or clarification is required
3. Complete SF 270 form (Request for Advance or
Reimbursement)
4. Attach a Estimated Cash Flow Requirements Worksheet
Memorandum and SF 270 sent to USPFO for
review and certification
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(State Action Office)
MEMORANDUM FOR USPFO FOR (State)
SUBJECT: Request for Advance Payment Approval - (State),
(lst/2nd/3rd or 4th) Quarter
1. Request advance payment authority for Army National
Guard's FYXX Cooperative Agreement (No.) between the
National Guard Bureau and (State).
2. This request is required by (State) Statute (Number) which
precludes incurring of an obligation by the (State) unless
funds
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are available in the State Treasury in the form of an
balance to pay for the obligation. (State) has insufficient
funds to fully support the federal portion unencumbered
of this agreement. [IF APPLICABLE]
OR
The funds apportioned by the (State) as its share of the
agreement cost are not adequate to support the
obligation and disbursement of funds for service
required under the agreement. Therefore, in order to
provide the service as required, an advance payment
from the Federal Government is necessary.
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3. (State) agrees that all advance payments received
under this agreement shall be used solely for the
authorized services specified in the agreement. Further,
the books and records of the State shall be made
available, on request, for inspection by properly
authorized representatives of the United States Property
and Fiscal Officer; Chief, National Guard Bureau and the
Comptroller General. The books and records are also
subject to the review of the State Auditor.
4. Furthermore, (State) agrees to minimize the time
elapsing between the transfer of funds from the U.S.
Treasury and their disbursement by the State.
5. The attached Standard Form 270 [Request For
Advance or Reimbursement] is forwarded for certification
and approval.
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6. Request Reimbursement Cycle of (No.) days.
7. The Cash Flow Forecast is attached and deviations in
excess of 10% have been explained in a footnote.
8. Point of contact is (Name), (Office Symbol),
(Telephone Number - commercial and DSN)
Encl
(State Representative)
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(STATE)
AGREEMENT NUMBER (#)
FISCAL YEAR 20XX
ESTIMATED CASH FLOW REQUIREMENTS
MONTH
APPENDIX
1002
APPENDIX
1003
OCT XX
NOV XX
DEC XX
JAN XX
FEB XX
MAR XX
APR XX
MAY XX
JUN XX
JUL XX
AUG XX
SEP XX
27,500
27,500
27,500
35,000
27,500
27,500
30,000
30,000
30,000
30,000
30,000
30,000
9,600
29,600
9,600
9,600
19,600
9,600
9,600
9,600
14,600
9,600
9,600
9,600
5,700
5,500
5,250
5,250
5,250
5,250
5,250
5,450
5,500
5,500
5,500
5,300
42,800
62,600
42,350
49,850
52,350
42,350
44,850
45,050
50,100
45,100
45,100
45,000
352,500
155,200
64,800
567,500
TOTAL
APPENDIX
1004
TOTAL
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Payment Process
1. USPFO prepares an SF 1034 monthly with the SF
270 as Backup documentation and is processed in
Commercial Accounts Payable System (CAPS – Army
or ANG equivalent)
2. Funds are placed in the State Treasury earmarked
as advance payment for the State National Army/Air
National Guard. As the State uses advanced funds, an
SF 1034 is processed through the USPFO to clear the
advance.
3. Payment is made as soon as practicable in one of
the following ways:
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a. EFT: no longer than 7 days after receipt of the
request
b. Non-EFT: no longer that 30 days after receipt of
the request
c. No more that 7 days after each date specified
when advance payments are authorized.
4. Advance payments shall not exceed the unpaid
portion of the CA. At the end of the Fiscal year,
reimbursements shall directly offset the advance held
by the State.
5. SMD shall close out the advance payment NLT close
of the fiscal year. If the SF 1034 does not clear the
advance, the State shall issue a check payable to DFAS-13
IN for the balance of the funds.
INTEREST PAYMENTS
• Interest may be due if advanced funds are not
repaid in a timely manner (60-90 days after
receipt of funds).
• Rate of interest is calculated in accordance with
21 U.S.C. 6503. Equal to average of equivalent
bond rate of 13-week Treasury bill auctioned
during the period for which interest is calculated.
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QUESTIONS ? ? ?
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