I. PURPOSE

This directive sets forth policies, procedures, and responsibilities for the administrative and financial requirements for processing FSIS reimbursable agreements. This directive applies to all agreements for reimbursable activities performed by FSIS organizations.

This directive does not include the following types of agreements:

1. Interagency agreements where FSIS procures services from another Federal agency.
2. Cooperative agreements, memorandums of understanding, memorandums of agreement, or Intergovernmental Personnel Act assignments.

II. CANCELLATION

This directive cancels FSIS Directive 1210.2, Revision 1, Reimbursable Agreements, dated 6/25/08.

III. REASON FOR REISSUANCE

This directive is completely revised to update policies, responsibilities, and procedures to effectively and efficiently use reimbursable agreements.

IV. REFERENCES

31 U.S.C. 1535, Economy Act of 1932

Antideficiency Act

Treasury Financial Manual Bulletin No. 2007-03, Intergovernmental Business Rules

OPAC Bulletin 04-1, Intergovernmental Payment and Collection (IPAC) System Procurement and Billing Procedure USDA OCFO Bulletin No. 06-02, Procedures for Recording Reimbursable Activity Without Advances into the Foundation Financial Information System

FSIS Directive 1210.3, Interagency Agreements (IA)

FSIS Directive 4300.5, Detail of Personnel

FSIS Directive 4735.9, Ethics and Conflicts of Interest

Required Checklist for Elements of a Reimbursable Agreement

V. ABBREVIATIONS AND FORMS

The following appear in their shortened form in this directive:

ALC- Agency Location Code

BD- Budget Division

CAN-Common Agreement Number

CFO-Chief Financial Officer

DUNS Dun & Bradstreet Universal Numbering System

FFIS Foundation Financial Information System

FMD Financial Management Division

FMMI Financial Management Modernization Initiative

FY Fiscal Year

IA Interagency Agreement

IPAC Intergovernmental Payment and Collection

OM Office of Management

OMB Office of Management and Budget

RA Reimbursable Agreement

SOW Statement of Work

TAS Treasury Account Symbol

AD-672, Reimbursement or Advance of Funds Agreement

FSIS Form 1210-7, Request for Clearance

FSIS Form 1210-14, Reimbursable Funds Transfer Action

FSIS Form 1210-15, Checklist for Elements of a Reimbursable Agreement

VI. POLICY

A. It is FSIS policy to accept work through RAs, provided there is statutory authority such as the Economy Act.

B. FSIS must obtain anticipated reimbursable budget authority from OMB before entering into an RA. BD annually requests apportionment authority for the upcoming FY based on an estimated amount of RAs expected to be in place for that FY.

C. No commitments or obligations can be established nor work performed until a written RA is approved and signed by the CFO and other authorized representatives of both FSIS and the customer agency.

D. Work performed before the acceptance of a written RA will be funded by the program’s current year allocation.

E. Internal controls must be established and enforced to prevent obligations from exceeding the reimbursement amount specified in the RA. All levels of management involved in the execution of the RA share this responsibility. In addition, controls must be put in place to ensure that amounts collected from reimbursable customers are credited to the FSIS appropriation and program year that was used to pay for the work.

F. All RAs must recover the actual cost of goods and services provided. Before work is accepted, the full costs of the reimbursable work must be calculated and documented by the program offices and then reviewed and approved by the CFO.

G. Reimbursement work is not accepted by FSIS when it is evident that a requesting agency is using the RA to obligate funds solely to:

1. Keep them from being reported as unobligated.
2. Keep them from being reported as unobligated.

H. RAs accepted after June may not allow enough time for FSIS to obligate or expend funds within the period of availability.

I. Reimbursable work must not continue beyond the period of performance or the funding amount provided in the RA.

J. All RAs must be authorized by evidence of signature on FSIS Form 1210-7, Request for Clearance, (see Attachment 1-1) within 5 business days of receipt.

K. RAs showing no activity in FFIS for more than 180 days will be closed unless the program offices provided BD and FMD with evidence of continuing or unbilled work.

VII. DEFINITIONS

A. Administrative Fee. A charge initiated by FSIS to cover the administrative costs of processing an RA. This charge may include accounting, information systems, and Agency overhead.

B. Direct Fund. A monetary resource that receives annual appropriated funding via the congressional budget process.

C. Full Costs. Fees that represent the direct and indirect resources used to provide the work specified in the RA.

D. IA. A written agreement or ordering document between Federal agencies where one agency transfers appropriated funds to another agency to obtain services or supplies. The IA must be signed and in place before any activity begins.

E. Period of Performance. The specified start date and completion date within the FY of an appropriation.

F. Program Code. A seven-digit code used to track FSIS financial activity in FFIS. An FSIS program code captures organization, activity and budget FY. A program code is linked to lines of accounting (funds, divisions, organizations, reporting category, program, and state) using an FFIS default value table. A unique program code is assigned to each RA.

G. Program Official or Office. The entity responsible for authorizing the technical, scientific, or other programmatic aspects of the work conducted under an RA.

H. RA. A written document whereby one agency agrees to provide goods or services to another agency in return for reimbursement of costs incurred. The agreement must be signed and in place before any work is performed.

I. Reimbursable Budget Authority. The decision to enter into agreements with other organizational entities to accept financial reimbursement for the cost of services rendered or goods provided.

J. Requesting Agency or Ordering Agency. The agency receiving the services or supplies.

K. Servicing Agency or Performing Agency. The agency that performs the services or provides the supplies. For the purposes of this directive, the servicing or performing agency is FSIS.

L. SharePoint. A Windows-based application that provides a central repository for agreement information on the Internet. SharePoint provides a mechanism for document sharing and collaboration between team members.

M. Statutory Authority. The law that makes an RA legal. All RAs must cite the authority to which FSIS may enter into an RA.

VIII. MODIFICATIONS

A. Modifications to an RA must be made in writing. Changes may be made to the period of performance, SOW, or obligated amount.

B. Complete FSIS Form 1210-14, Reimbursable Funds Transfer Actions as needed (see Attachment 1-2), when increasing or decreasing an RA.

IX. RA CATEGORIES

(NOTE: These categories are not all inclusive of the types of agreements that FSIS enters into.)

A. Travel-Only Agreements.

1.  Under travel-only agreements, agencies agree to reimburse FSIS for travel expenses incurred by FSIS employees. These agreements are used when FSIS employees make presentations or other appearances that are approved in accordance with FSIS Directive 4735.9, Ethics and Conflicts of Interest, paragraph VIII, Outside Employment and Activities.
2. Travel-only agreements permit reimbursement for travel expenses incurred by employees, including but not limited to, transportation, accommodations, registration fees, automobile rental, meals, and other directly related travel expenses.
3. Travel-only agreements cannot include payment for the cost of the time that employees spend traveling, or while away from their home duty station, or for any services that the employees provide. Employees are not allowed any supplementation of salary in travel-only agreements.

B. Reimbursable Personnel Detail Agreements.

FSIS Directive 4300.5, Detail of Personnel, permits FSIS to enter into an RA governing the assignment of personnel to another Federal or USDA agency or office. Reimbursement is limited to the detailed employee's regular salary, fringe benefits, and any additional, authorized expenses. Such a detail requires a written agreement, to this effect, signed in advance by FSIS and the requesting agency. The Economy Act must be cited when FSIS employees are detailed on temporary assignments to other USDA or Federal agencies.

C. Advisory Committee Agreements.

FSIS may charge an administrative fee to cover the costs associated with processing these agreements. Advisory committees are established by the Secretary of Agriculture to carry out responsibilities imposed by food safety regulations. The committees are composed of other agencies with similar food safety responsibilities. FSIS’ two current advisory committees are:

1. National Advisory Committee on Microbiological Criteria for Foods.
2. National Advisory Committee on Meat and Poultry Inspection.

D. Program Services Agreements

Program services agreements represent RAs, that FSIS enters into with other Federal agencies, that have mutual interests in food safety and security programs, and public health and food science. These agreements are mission related such as RAs with Animal and Plant Health Inspection Service for blood sampling; Agriculture Marketing Service for fruit and vegetable inspections; and the Food and Drug Administration for the Food Emergency Response Network.

X. RESPONSIBILITIES

Each Agency organization and division has specific responsibilities. The Assistant Administrators must approve RAs with Federal agencies for activities within their assigned area of responsibility. They may delegate authority to lower levels of their organization, but no lower than the director level.

A. Program Offices.

• Proper legal citation.
• Required justifications.
• Billing provisions.
• Agency fund citation including the ALC.
• CAN. f. TAS.
• DUNS number.
• Information needed to process collections via IPAC transactions.
• Obligating document number from the requesting agency or FMMI purchase order number.
• Program code(s) for conversion into reimbursable program code(s)

2. Provide all contact information and arrange necessary approvals for RAs and monitor the clearance process.

3. Provide the scientific knowledge, experience, and technical direction of the work to be performed.

4. Serve as primary points of contact for issues regarding RAs.

5. Ensure that appropriations are used for their designated purpose and within the period of performance.

6. Coordinate with the CFO and BD to accurately estimate RA costs.

7. Implement internal controls necessary to prevent over-obligation of reimbursable funds.

8. Ensure that obligations and costs related to RAs are clearly charged to the proper reimbursable fund and correct program code.

9. Approve and document any changes requiring modification and amendment by completing FSIS Form 1210-14.

10. Ensure the official RA file contains all relevant documents.

11. Monitor RA activity and age and provide justification for agreements with no activity over 180 days.

12. Ensure that the RAs are properly closed out and that files are retained in accordance with FSIS record retention policies.

13. Sign the AD-672, Reimbursement or Advance of Funds Agreement (see Attachments 1-3); SOW; FSIS Form 1210-7, approving the funding allocation; FSIS Form 1210-15, Checklist for Elements of a Reimbursable Agreement (see Attachment 1-4); and FSIS Form 1210-14, Reimbursable Funds Transfer Actions, (as needed).

14. Forward all required documentation for the RA to the FMD Director or designee.

B. FMD Director or Designee.

1. Processes and assigns program code requests for all RAs.
2. Provides billing information to the program offices.
3. Develops, issues, and implements standards and procedures for financial requirements for RAs.
4. Coordinates with BD on calculating and issuing annual standard indirect cost rates by using the prior FY’s actual costs.
5. Monitors activity and age of RAs.
6. Reconciles FMD accounts receivables and revenues with the requesting agency’s accounts payable and expenses.
7. Accrues revenue consistent with the accepted accounting principles quarterly.
8. Ensures that the FFIS captures all the detailed transactions associated with all RAs for the life of the RAs.
9. Reviews and determines standard RA rates (indirect costs) to apply to RAs by using the prior FY’s actual costs.
10. Assigns RA numbers and maintains a central file or database of the numbers assigned to each RA by budget FY
11. Bills for services in accordance with the RA terms.
12. Processes the necessary transactions to close out anticipated reimbursable authority at FY end.
13. Signs RAs and FSIS Form 1210-7s, confirming the appropriate accounting information.
14. Forwards RAs (AD-672); SOW; FSIS Form 1210-7s, approving the funding allocation; FSIS Form 1210-15, Checklist for Elements of a Reimbursable Agreement; and FSIS Form 1210-14, Reimbursable Funds Transfer Actions, (as needed) to the CFO or designee.
15. Updates SharePoint with relevant transaction information and provides complete copies of RAs to the requesting agencies.
16. Provides notification to BD to allocate and sub-allocate resources in FFIS.

C. CFO or Designee.

1. Maintains financial control over all RAs and generates all financial reports.
2. Implements internal controls necessary to prevent over-obligation of reimbursable funds.
3. Develops, issues, and interprets financial management policies for RAs.
4. Establishes and oversees the implementation of standard RA rates (overhead rates) to apply to RAs by using the prior FY’s actual costs.
5. Signs AD-672, and FSIS Form 1210-7 to approve the funding allocation.
6. Forwards RAs (AD-672); SOW; FSIS Form 1210-7s, approving the funding allocation; FSIS Form 1210-15, Checklist for Elements of a Reimbursable Agreement; and FSIS Form 1210-14, Reimbursable Funds Transfer Actions (as needed) to FMD or the designee.

D. BD Director or Designee

1. . Assists program offices in estimating full-time equivalent costs, general and administrative expenses, and indirect RA costs.
2. Coordinates with FMD on calculating and issuing annual standard indirect cost rates.
3. Maintains constant awareness of the agreements-in-process.
4. Allocates and sub-allocates resources in FFIS by fund and program code.
5. Develops and maintains accurate and timely financial information on the status of reimbursable projects, obligations, and expenditures incurred for all RAs.

XI. CONTACTS

Contact the following offices for assistance with all budget-related issues, accounting policy, and procedural activities:

• USDA FSIS OM
• FINANCIAL MANAGEMENT DIVISION
• MAILDROP 5265 GWCC . BELTSVILLE MD PHONE 301–344–0750

• USDA FSIS OM
• BUDGET DIVISION
• MAILDROP 2158 SOUTH BUILDING WASHINGTON DC PHONE 202–720–3614

See full PDF for attachments

• SAMPLE FSIS FORM 1210-7, REQUEST FOR CLEARANCE
• SAMPLE FSIS FORM 1210-14, REIMBURSABLE FUNDS TRANSFER ACTIONS
• SAMPLE AD-672, REIMBURSEMENT OR ADVANCE OF FUNDS AGREEMENT
• SAMPLE FSIS FORM 1210-15, CHECKLIST FOR ELEMENTS OF A REIMBURSABLE AGREEMENT