Implementing Reimbursable Standard Operating Procedures and Policies

1
Implementing Reimbursable Standard Operating
Procedures and Policies

• Finance Conference
• May 10, 2007

2
Purpose

• Provide background on reimbursable BPR
  recommendations and Reimbursable Working Group
• Provide update on progress toward improving
  reimbursable policies and procedures

3
Background

• A reimbursable occurs when NOAA receives funds to
  provide goods and/or services to the public,
  private sector and/or other Federal, state and
  local agencies.
• BPR reviewed reimbursable processing in NOAA and
  published findings and recommendations

4
Current Issues with Reimbursable Agreements

• There is no standard NOAA-wide template/model for
  reimbursable agreements
• NOAA-wide guidance on reimbursable agreements is
  outdated
• Each Line Office has different procedures for
  processing reimbursable agreements
• Control/tracking of reimbursable agreements
  varies by Line Office
• Many reimbursable agreements do not have all the
  required information

5
Reimbursable Working Group

• BPR recommended NOAA establish a Reimbursables
  Working Group to discuss and coordinate issues of
  interest to those involved in the reimbursables
  process
• Reimbursables Working Group is comprised of
  representatives from each Line Office, Finance
  Office, NOAA Budget Office and DOC OGC
• Reimbursables Working Group met, developed and
  agreed to standard operating procedures and
  NOAA-wide policies
• Procedures and policies have been presented to
  and approved by the CFO Council

6
Reimbursable Working Group Accomplishments

• Reimbursable staff training plan
• Agreement cover sheet
• Model agreement template
• List of reimbursable authorities
• High level standard operating procedures draft
  detailed standard operating procedures
• Policy document

7
Standard Operating Procedures
LO FMC LO HQ
Finance Office Exec Sec/OGC
FMC Receives customer request to provide reimb
goods or services
FMC defines work to be performed with customer
LO HQ Reviews RA Documents for completeness
FMC Prepares Agreement using NOAA templates and
cost models
Is RA Complete?
Finance reviews for financial/ accounting
information notifies LO HQ
Yes
No
Exec Sec submits RA to DOC OGC for review and
clearance. Returns RA to LO HQ for revisions if
required.
LO HQ submits RA to Exec Sec for review
tracking
Agreement is signed by LO HQ or FMC. LO HQ keeps
copy.
FMC keeps original agreement.
a
8
Standard Operating Procedures
LO FMC LO HQ
Finance Office NOAA Budget
a
FMC Completes RADG002, Project Code Request, and
Allot/UCO Request
Finance reviews agreement, request forms, RADG002
and CM004.
LO HQ Reviews documents unapproved RADG002, and
records CM004 project info.
Finance approves and activates RADG002 CM004
Additional updates needed?
No
Yes
Finance records and approves UCO on RADG003
Finance enters changes to RADG002 CM004
LO HQ notifies FMC that allotment is approved
NOAA Budget records allotment on FM063 and
notifies LO HQ
Finance submits Allotment/UCO Request to NOAA
Budget notifies LO HQ
LO HQ approves Reimbusable BOP on FM066
FMC records Reimbusable BOP on FM066
8
9
Standard Operating Procedures

• LO FMC drafts the agreement using standard
  templates directs questions to LO HQ to
  coordinate response
• LO HQ reviews agreement forwards to FO and OGC
  for clearance notifies FMC when cleared
• FMC enters agreement into reimbursable agreement
  screen (RADG002) completes request forms for
  project code and allotment/UCO forwards to LO HQ
• LO HQ records CM004 project information forwards
  agreement, RADG002, and project code and
  allotment/UCO requests to FO

10
Standard Operating Procedures (continued)

• FO reviews and approves RADG002 and project code
  (CM004) enters and approves UCO (RADG003) sends
  allotment/UCO request form to NOAA Budget
  notifies LO HQ
• NOAA Budget enters allotment notifies LO HQ
• LO HQ notifies FMC FMC enters BOP LO HQ
  approves BOP

11
Changes to Current Operating Procedures

• LO HQ receives information from FMC and passes it
  on to FO, OGC and NOAA Budget. LO HQ receives
  notification from FO, OGC, NOAA Budget and
  forwards it to FMC
• FO only accepts reimbursable requests and
  documents from LO HQ
• NOAA Budget only accepts reimbursable allotment
  requests from Finance Office
• Finance Office approves establishment of
  agreement (RADG002) and project code (CM004) in
  CBS enters and approves RADG003
• All Line Offices follow same procedures

12
Expected Outcome

• Process is centralized at LO HQ
• Provides consistency in processing and oversight
• Reduces redundant processing
• Increased collaboration between Line Offices,
  Finance Office and Budget Office

13
Standard Reimbursable Policies Now in Existence

• Reimbursable work cannot start until a project
  number has been established
• Non-federal sponsors will make payment in advance
  of NOAA incurring costs
• Waivers of overhead require legal authority and
  NOAA Budget Director approval overhead cannot be
  waived for legal authorities that require full
  cost
• Undelivered orders must be deobligated 5 years
  after appropriation expiration date

14
New Reimbursable Policies

• All reimbursable staff must take training
• Reimbursable projects should consist of one
  sponsor/one agreement/one project code
• Reimbursable projects should not be used for
  internal NOAA-only purposes

15
New Reimbursable Policies (continued)

• Temporary work authorities are only valid for 3
  months and cant cross fiscal years FO may shut
  off project
• Agreement with federal sponsors should not
  include both advances and payment plans
• No adjustment of costs that have been
  billed/collected without approval from FO FO may
  shut off project

16
New Reimbursable Policies (continued)

• Bills will be prepared quarterly exceptions
  require NOAA CFO approval
• Collections in excess of cost will be refunded 6
  months after project expiration
• The FO will notify LO/SO when project costs
  exceed funding if no remedy in 30 days, FO will
  shut off project

17
Next Steps for Reimbursable Working Group

• Develop detailed reimbursable processes and
  business rules
• Enhance and present internal NOAA reimbursable
  training
• Roll out procedures and policies on
• July 1, 2007