Certification & Payment

March 2, 2005

March 2, 2005March 2, 2005

Outline

Rules of Payment Certification and Payment by

Program Documentation Cost Analysis Spreadsheet

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Who Pays for What Program?

FSA GRP SWCA (NRCS certifies practice & fills out CCC-

1245) CRP

NRCS EQIP - ProTracts WHIP

2004 and current – ProTracts 2003 and older – NRCS State Office

CSP - ProTracts

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Rules of Payment Pay:

For a Practice that is complete and meets Standards and Specifications.

Do NOT Pay: For materials not installed For a practice that does not meet

Standards and Specifications For a duplication of payment Overbuilding GM Title 120

Part 404.71

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Payment can be made IF…

Payment recipient(s) does NOT exceed payment limitation (if applicable)

Payment recipient(s) is in compliance with HELC/WC

See MatrixGM Title 120Part 404.70

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Certification Guidelines Practice Meets Standards and Specifications.

Certification/Calculation based on field checkout and bills/invoices.

Done in ProTracts or hard copy depending on Farm Bill Program (see matrix).

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Certification Guidelines

Technician’s Signature (Block 16)

Item 13F = Extent Performed

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Certification in ProTracts

Date Practice was Completed

Block 15, if neededWho logged into

ProTracts (block 16)

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Calculating Practice Components

Review Bills and Invoices

Identify Components

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Practice Payment Calculation

… Cost Share Recap AC = Average cost (AC times % cost share

equals producer payment) AM = Actual cost not to exceed a specified

maximum cost AA = Actual cost not to exceed the average

cost FR = Flat rate (no percentage applied) NC = Non-Cost Share

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Payment Calculation

Required Amount Amount must meet the practice standard for

the component. If a minimum amount is entered, it is used to

calculate the payment instead Actual Amount Performed = Installed

Amount Actual Cost = Total Cost

Caps Earned Amount

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Participant Signs CCC-1245

Certification by Participant Maintain practice for its life span

James Dell 2/22/05

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Participants and Shares

… on the contract Participants are identified on the

contract and the payment shares they should receive.

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Participants and Shares

…in ProTracts Participant(s) identified in ProTracts

must coincide with the data on the contract.

ProTracts

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Participants and Shares (EQIP)

… in Payment Limitation Database (web)

Data came from FSA’s system and should reflect contract shares.

Shows contract & summary of payments from other contracts.

EQIP Only

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Participants and Shares

… in Payment Limitation Database (cont)

Identifies: Participants – who is on contract Percent shares Obligation – max. amount for participant Payments/Unpaid Balance

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Payment Instructions (ProTracts)

Dictates who will receive practice item payment

Can change payment shares

Cannot exceed unpaid balance for participant. Might affect future payments

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Rejected Payments

Difference between Contract & Payment Limitation Database

Contract Changes Causing Errors Changed participant Changed payment shares Changed Payment Instructions and

individual exceeded limit on contract

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Fund Manager

ProTractsPayment

Fund ManagerPayment Limitation FFIS

Contract:

Smith Farms 50%Peter Coffey 50%

Payment LimitationDatabase:

Smith Farms 50%Peter Coffey 50%

Contract:

Bill Jones 100%

Payment LimitationDatabase:

Jones Farms 100%

FFIS

FFIS

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What NOT to Do!

Modify contract to change participants and/or shares for one payment. Should:

Use Payment Instructions for a one time change

Owner receives payment for structural practices, Operator receives payments for incentive payments – Must stay within the payment limitations.

NRCS Payment Process

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Documentation SF-1199A * Signature page of CCC-1200 * Signature page of CCC-1245 * Bills/invoices Copy of CCC-36, Assignment of Payment (if

needed) FSA-211 Power of Attorney (if needed) Evidence of Authority (if needed) Payment Limitations print off*Signatures need to be the same

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Signature Documentation

NRCS Processing Payment No additional signature documentation

needed (e.g. evidence of authority), if signature of decision maker on CCC-1200 matches CCC-1245 signature.

For Example… Contract was signed:

Smith Farms by Bill Smith

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Payment Schedule1. Field office (time = 2 weeks, unless could not

obtain signature of participant):• Receives bills and SF-1199A• Complete CCC-1245 and obtain signature(s).• Submit all information to Area for review

2. Area (time = 5-7 days):• Reviews CCC-1245 packet• Approves in ProTracts• Forwards to SO

3. State Office (time = 2 day):• Makes payment in FFIS

4. Time for payment to arrive in bank account (time = 3-5 days)

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Immediate Pay

Immediate pay Not subject to prompt pay rules and

interest. Almost all participants receiving NRCS

program payments are subject to “immediate pay”.

Process payments as quick as possible. FSA has a business practice of paying

interest on payments over 30 days.

March 2, 2005March 2, 2005

NRCS Payment Notification

Jim Andruszewski will notify the DC by email when he has processed the payment.

National Finance Center (NFC) still needs to release payment to participants bank account

Participant is NOT notified.

Cost Analysis Spreadsheet

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IDEA

Let’s automate the collection of average

costs.

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ANOTHER IDEA Bill of Materials for contractor use

Line items match contract Bills tend to resemble bill of materials

Cost Estimate / Bill of Material tool FOs do cost estimates for each job already

Same tool could collect actual cost data

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Here’s the plan…

1. Create cost estimate and bill of materials

2. SAVE an electronic copy3. Enter actual costs when submitted

4. Print for payment documentation

5. “EASY BUTTON” to store cost data

EASYEASY

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Storing Cost Data Database on FO shared drive One click from cost estimate/tracking

tool sends job information: Practice, component & unit Quantity Actual unit cost Contractor Date County

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What happens next?

Once a year, DC sends stored data to Area Office

AO creates area average SO creates state average

Updated cost lists can be made with justification

EASYEASY

THE END

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Definitions

Federal Financial Information System (FFIS) -

Fund Manager - sits between the ProTracts and FFIS systems. Performs error checks, data translations, and data uploading to and from FFIS

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Bloopers

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OriginalContract:

Mary Smith 100%(Deceased)

Modified in ProTracts

Contract:James Dell 100%

ProTractsContract Payment Limitation

Database

Mary Smith 100%

Example #1

RejectedPayment

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OriginalContract:

Contract Total = $10,000Cameron Farms 50%

Peter Coffey 50%

ProTractsContract

Payment Limitation

Example #2

RejectedPayment

Participant Shares Unpaid Balance

Cameron Farms

50% $5000

Peter Coffey

50% $5000

Practice Item #1Payment Instructions:

Cameron Farms 100% - $7000Peter Coffey 0% - $0

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OriginalContract:

Whole Farms 100%

Entity Member include:Bill Collis

George CollisSally Townsend

ProTractsContract

Payment LimitationDatabase

Example #3

RejectedPayment

Modified in ProTractsContract:

Bill Collis 100%

Whole Farm 100%

Who should receive payment

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Checking HELC/WC

EQIP Payments… Previously used MABDIG report from FSA Use FSA Subsidiary website now

Check AD-1026 Section

https://indianocean.sc.egov.usda.gov/Subsidiary/

National Bulletin390-5-5