This directive:

• Applies to the State cooperative inspection programs that are required to report expenditures to FSIS on Form SF-269A, Financial Status Report, and obtain funding through Letter of Credit drawdowns. The directive:
  1. Describes the requirements for State cooperative MPI programs to meet the financial requirements of Federal and State laws.
  2. Describes the financial responsibilities of FSIS organizational components and State agencies in cooperative MPI programs.
  3. Describes the financial procedures to assist States in meeting the administrative requirements of the cooperative agreements in budgeting, accounting, and other services.
• Does not apply to the State cooperative inspection programs that bill FSIS at 100 percent for MPI and EPI program costs for services rendered in Federally inspected plants. However, the directive:
  1. Provides references to other guidelines and instructions regarding the 100 percent reimbursable inspection programs under which State agencies and the FSIS have entered into formal cooperative agreements.
  2. Describes administrative responsibilities of FSIS offices and State agencies in administering the reimbursable inspection programs.
      

PART ONE – BASIC PROVISIONS
I. PURPOSE 
II. CANCELLATION 
III. REASON FOR REISSUANCE 
IV. REFERENCES 
V. ABBREVIATIONS AND FORMS 
VI. DEFINITIONS 
 A. Accounting Records 
 B. Accrued Expenditures 
 C. Allowable Costs 
 D. Call Letter 
 E. Contract 
 F. Cross-Utilization Program 
 G. Custom Exempt Program  
 H. Disallowed Costs 
 I. Egg Products Inspection Program (EPIP) 
 J. Equipment 
 K. Federal-State Cooperative Inspection Program (FSCIP) (T/A) 
 L. Financial Reporting 
 M. Fringe Benefits 
 N. Grantee 
 O. Head of State Agency 
 P. Obligations 
 Q. Outlays 
 R. Source Documentation 
 S. State-Federal Cooperative Inspection Program (SFCIP) 
 T. Supplies 
 U. Unobligated Balance 
 V. Reimbursable Costs 
 W. Terminal Leave 
 X. Travel 
VII. APPLICABILITY
VIII. REFERENCES TO REIMBURSABLE INSPECTION PROGRAMS 
 A. CU Program 
 B. CE Program 
 C. EPIP 
IX. FSIS RESPONSIBILITIES 
A. Assistant Administrator, OFO 
B. District Offices 
C. TSC 
D. Director, FSRS 
E. Assistant Administrator, OM 
F. Director, FMD 
G. Chief, FRAB 
H. Chief, FAOB 
I. Chief, FPC 
J. Director, BD
K. Director, FAIM 
L. Director, ASD 
M. Other FSIS Officials 
X. STATE AGENCY RESPONSIBILITIES 
XI. CONTACT INFORMATION 
A. DO 
B. FSRS 
C. FRAB 

PART TWO – BUDGET AND ACCOUNTING REQUIREMENTS
Section One – Budgetary Guidelines
I. BACKGROUND
II. BUDGET ALLOCATION REQUEST GUIDANCE
A. Annual Call Letter 
B. Budget Submission Guide 
C. Supporting Documentation for Budget Changes 
III. APPROVAL OF BUDGET ALLOCATION 
A. Approval 
B. Revisions 
IV. CERTIFICATION REQUIREMENTS 
A. Annual certifications 
B. Semi-annual certifications 
V. OTHER SPECIAL REQUIREMENTS 
A. T/A Plants  
B. State Training Program  
C. Ethics and Conduct 
D. CE Status 
E. Contract Veterinarians 
VI. (RESERVED)

Section Two – Accounting Guidelines
VII. GENERAL REQUIREMENTS 
VIII. ACCOUNTABILITY FOR PROGRAM EXPENDITURES 
IX. ACCOUNTING BASIS 
X. CONTROL ACCOUNTS FOR FEDERAL AND STATE FUNDS 
XI. STATE AGENCY SUBSIDIARY ACCOUNTS AND RECORDS 
XII. CLASSIFICATION OF EXPENDITURES BY CATEGORY 
XIII. (RESERVED) 
Section Three – Reporting Expenditures on the Financial Status Report
(Form SF-269A)
XIV. GENERAL REQUIREMENTS 
XV. EXPENDITURES REPORTED ON SF-269A REPORTS 
XVI. PREPARING SF-269A REPORTS 
XVII. SUBMITTING SF-269A REPORTS 
XVIII. (RESERVED) 

Section Four – Cooperative Inspection Program Services
XIX. SERVICES RENDERED UNDER THE FMIA AND PPIA IN STATE PLANTS 
A. SFCIP-Cooperative MPI Program (50/50) Shared Costs 
B. Excludable Inspection Services 
C. Allowable Program Overtime and Holiday Services 
XX. SERVICES RENDERED UNDER THE FMIA AND PPIA IN FEDERALLY INSPECTED PLANTS 
A. FSCIP-T/A Overtime 100 Percent Reimbursable Program 
B. Allowable T/A Overtime Expenditures 
C. Documentation and Reporting Requirements for T/A Overtime 
D. Compensatory Time Applicable to T/A Overtime 
XXI. (RESERVED) 

Section Five – Fiscal Reviews and Audits
XXII. ONSITE FISCAL REVIEWS 
XXIII. AUDIT REQUIREMENTS 

ATTACHMENT 2-1, Budget Submission Guidelines 
ATTACHMENT 2-2, Example of Application for Federal Assistance, SF-424 
ATTACHMENT 2-3, Example of Budget Information – Non-Construction Programs, SF-424A  
ATTACHMENT 2-4, Budget Information – Non-Construction Programs, SF-424B 
ATTACHMENT 2-5, Example of State Establishment Profile, FSIS Form 5720-4 

ATTACHMENT 2-6, Example of State Employment Report,
 FSIS Form 5720-5 
ATTACHMENT 2-7, Financial Status Report, SF-269A 
ATTACHMENT 2-8, Example of FSIS Form 5110-1, Services Rendered 

PART THREE – LETTERS OF CREDIT

I. PURPOSE 
II. LETTER OF CREDIT ACCOUNT 
A. General 
B. Continuing LOC 
C. Completing Form SF-1199A 
D. Superseding Direct Deposit Sign-Up Forms 
E. Requesting Funds 
III. CASH MANAGEMENT REQUIREMENTS
A. Determine Amount of Request 
B. Disbursements 
C. Minimize Time Between Drawdown and Disbursement 
D. LOC Fiscal Requirements 
E. Reporting Requirements 
IV. CHANGE IN NAME, ADDRESS, OR BANKING INFORMATION 
V. LOC CONTACTS AND PMS-SMARTLINK II REPRESENTATIVES 
A. LOC Contacts 
B. PMS-SMARTLINK II Representatives 

ATTACHMENT 3-1, Instructions for Completing the SF-1199A, Direct Deposit Sign-Up Form 
ATTACHMENT 3-2, Sample Drawdown Tracking Report 
ATTACHMENT 3-3, Overview of PMS-Smartlink II Process 
ATTACHMENT 3-4, Example of Payment Request Screen 

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