Certification & Payment

1. Certification & Payment March 2, 2005

2. Outline • Rules of Payment • Certification and Payment by Program • Documentation • Cost Analysis Spreadsheet

3. 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

4. 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

5. 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 Matrix GM Title 120 Part 404.70

6. 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).

7. Certification Guidelines • Technician’s Signature (Block 16) • Item 13F = Extent Performed

8. Certification in ProTracts Date Practice was Completed Block 15, if needed Who logged into ProTracts (block 16)

9. Review Bills and Invoices Identify Components Calculating Practice Components

10. 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

11. 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

12. James Dell 2/22/05 Participant Signs CCC-1245 • Certification by Participant • Maintain practice for its life span

13. Participants and Shares … on the contract • Participants are identified on the contract and the payment shares they should receive.

14. Participants and Shares …in ProTracts • Participant(s) identified in ProTracts must coincide with the data on the contract. ProTracts

15. 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

16. Participants and Shares … in Payment Limitation Database (cont) • Identifies: • Participants – who is on contract • Percent shares • Obligation – max. amount for participant • Payments/Unpaid Balance

17. Payment Instructions (ProTracts) • Dictates who will receive practice item payment • Can change payment shares • Cannot exceed unpaid balance for participant. • Might affect future payments

18. 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

19. Fund Manager ProTracts Payment Fund Manager Payment Limitation FFIS Contract: Smith Farms 50% Peter Coffey 50% Payment Limitation Database: Smith Farms 50% Peter Coffey 50% FFIS Contract: Bill Jones 100% Payment Limitation Database: Jones Farms 100% FFIS

20. 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.

21. NRCS Payment Process

22. 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

23. 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

24. Payment Schedule • 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 • Area (time = 5-7 days): • Reviews CCC-1245 packet • Approves in ProTracts • Forwards to SO • State Office (time = 2 day): • Makes payment in FFIS • Time for payment to arrive in bank account (time = 3-5 days)

25. 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.

26. 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.

27. Cost Analysis Spreadsheet

28. IDEA Let’s automate the collection of average costs.

29. 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

30. “EASY BUTTON” to store cost data • Print for payment documentation EASY Here’s the plan… • Create cost estimate and bill of materials • SAVE an electronic copy • Enter actual costs when submitted

31. 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

32. EASY 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

33. THE END

34. 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

35. Bloopers

36. Example #1 ProTracts Contract Payment Limitation Database Original Contract: Mary Smith 100% (Deceased) Mary Smith 100% Modified in ProTracts Contract: James Dell 100% Rejected Payment

37. Example #2 ProTracts Contract Payment Limitation Original Contract: Contract Total = $10,000 Cameron Farms 50% Peter Coffey 50% Practice Item #1 Payment Instructions: Cameron Farms 100% - $7000 Peter Coffey 0% - $0 Rejected Payment

38. Example #3 ProTracts Contract Payment Limitation Database Original Contract: Whole Farms 100% Entity Member include: Bill Collis George Collis Sally Townsend Whole Farm 100% Who should receive payment Rejected Payment Modified in ProTracts Contract: Bill Collis 100%

39. 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 Bulletin 390-5-5