Appendix B to Part 1128 - Terms and Conditions for FMS Article II, “Payments”
2:1.2.8.6.13.7.64.7.29 : Appendix B
Appendix B to Part 1128 - Terms and Conditions for FMS Article II,
“Payments”
Unless a DoD Component adds, deletes, or modifies wording, as
permitted by §§ 1128.210 through 1128.220, a DoD Component's
general terms and conditions must include the following wording for
FMS Article II.
FMS Article II. Payments. (DECEMBER 2014)
Section A. Awards to States. If the award-specific terms
and conditions of this award do not identify it as an award subject
to Subpart A of 31 CFR part 205 (Department of the Treasury
regulations implementing the Cash Management Improvement Act), then
this award is subject to Subpart B of that part. Consistent with
Subpart B of 31 CFR part 205:
1. Payment method, timing, and amounts. You must:
a. Minimize the time between your receipt of a payment under
this award and your disbursement of those funds for program
purposes.
b. Limit the amount of each advance payment request to the
minimum amount you need to meet your actual, immediate cash
requirements for carrying out the program or project.
c. Submit each advance payment request approximately 10 days
before you anticipate disbursing the requested amount for program
purposes, so that your receipt of the funds will be as close in
time as is administratively feasible to your actual cash outlay for
direct project costs and the proportionate share of any allowable
indirect costs.
2. Interest. Unlike awards subject to Subpart A of 31 CFR
part 205, neither you nor we will incur any interest liability due
to a difference in timing between your receipt of payments under
this award and your disbursement of those funds for project or
program purposes.
Section B. Awards to institutions of higher education,
nonprofit organizations, local governments, and Indian
tribes.
1. Payment method. Unless the award-specific terms and
conditions of this award provide otherwise, you are authorized to
request advance payments under this award. That authorization is
contingent on your continuing to maintain, or demonstrating the
willingness to maintain, written procedures that minimize the time
elapsing between your receipt of each payment and your disbursement
of the funds for program purposes. Note that you are not required
to request advance payments and may instead, at your option,
request reimbursements of funds after you disburse them for project
or program purposes.
2. Amounts requested. You must:
a. Limit the amount of any advance payment request to the
minimum amount needed to meet your actual, immediate cash
requirements for carrying out the purpose of the approved program
or project, including direct project costs and a proportionate
share of any allowable indirect costs.
b. Exclude from any payment request amounts you are withholding
from payments to contractors to assure satisfactory completion of
the work. You may request those amounts when you make the payments
to the contractors or to escrow accounts established to ensure
satisfactory completion of the work.
c. Exclude from any payment request amounts from any of the
following sources that are available to you for program purposes
under this award: program income, including repayments to a
revolving fund; rebates; refunds; contract settlements; audit
recoveries; and interest earned on any of those funds. You must
disburse those funds for program purposes before requesting
additional funds from us.
3. Timing of requests. For any advance payment you
request, you should submit the request approximately 10 days before
you anticipate disbursing the requested amount for project or
program purposes. With time for agency processing of the request,
that should result in payment as close as is administratively
feasible to your actual disbursements for project or program
purposes.
4. Frequency of requests. You may request payments as
often as you wish unless you have been granted a waiver from
requirements to receive payments by electronic funds transfer
(EFT). If you have been granted a waiver from EFT requirements, the
award-specific terms and conditions of this award specify the
frequency with which you may submit payment requests.
5. Withholding of payments. We will withhold payments for
allowable costs under the award at any time during the period of
performance only if one or more of the following applies:
a. We suspend either payments or the award, or disallow
otherwise allowable costs, as a remedy under OAR Article III due to
your material failure to comply with Federal statutes, regulations,
or the terms and conditions of this award. If we suspend payments
and not the award, we will release withheld payments upon your
subsequent compliance. If we suspend the award, then amounts of
payments are subject to adjustment in accordance with the terms and
conditions of OAR Article III.
b. You are delinquent in a debt to the United States as defined
in OMB Circular A-129, “Policies for Federal Credit Programs and
Non-Tax Receivables,” in which case we may, after reasonable
notice, inform you that we will not make any further payments for
costs you incurred after a specified date until you correct the
conditions or liquidate the indebtedness to the Federal
Government.
c. The award-specific terms and conditions of this award include
additional requirements that provide for withholding of payments
based on conditions identified during our pre-award risk
evaluation, in which case you should have been notified about the
nature of those conditions and the actions needed to remove the
additional requirements.
6. Depository requirements.
a. There are no eligibility requirements for depositories you
use for funds you receive under this award.
b. You are not required to deposit funds you receive under this
award in a depository account separate from accounts in which you
deposit other funds. However, FMS Article I requires that you be
able to account for the receipt, obligation, and expenditure of all
funds under this award.
c. You must deposit any advance payments of funds you receive
under this award in insured accounts whenever possible and, unless
any of the following apply, you must deposit them in
interest-bearing accounts:
i. You receive a total of less than $120,000 per year under
Federal grants and cooperative agreements.
ii. You would not expect the best reasonably available
interest-bearing account to earn interest in excess of $500 per
year on your cash balances of advance payments under Federal grants
and cooperative agreements.
iii. The best reasonably available interest-bearing account
would require you to maintain an average or minimum balance higher
than it would be feasible for you to do within your expected
Federal and non-Federal cash balances.
iv. A foreign government or banking system precludes your use of
interest-bearing accounts.
d. You may retain for administrative expenses up to $500 per
year of interest that you earn in the aggregate on advance payments
you receive under this award and other Federal grants and
cooperative agreements. You must remit annually the rest of the
interest to the Department of Health and Human Services, Payment
Management System, using the procedures set forth in OMB guidance
in 2 CFR 200.305(b)(9).
Section C. Electronic funds transfer and other payment
procedural instructions or information.
1. Electronic funds transfer. Unless the award-specific
terms and conditions of this award provide otherwise, you will
receive payments under this award by electronic funds transfer.
2. [Reserved].