PAYMENTS
(CT:FMP-92; 10-22-2015)
(Office of Origin: CGFS/FPRA/FAFM)
4 FAH-3 H-651 GENERAL
(CT:FMP-92; 10-22-2015)
a. Recipients are to be paid in advance, provided they maintain or demonstrate the willingness to maintain:
(1) Written procedures that minimize the time elapsing between the transfer of funds and disbursements by the recipient, and
(2) Financial management systems that meet the standards established in paragraph 200.302, Financial Management, of 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. Unless specifically permitted in the terms and conditions of the award, advances to a grantee must be limited to the minimum amount needed and must be timed to be in accordance with the actual, immediate cash requirements of the grantee in carrying out the purpose of the approved program. The timing and amount of cash advances must be as close as is administratively feasible to actual disbursements for direct program costs and the proportionate share of any allowable indirect cost. When authorized advances for needs in excess of 60 days are requested, the recipient will have to request approval from the grants officer prior to processing the payment request through the HHS/Payment Management System (PMS) if the grant is paid via PMS or complete block 12 of Form SF-270 if the grant is not in PMS.
c. Unless otherwise required by statute, bureaus must not withhold payments for proper charges made by recipients unless:
(1) A recipient has failed to comply with the project objectives, the terms and conditions of the award, or Federal reporting requirements; or
(2) The recipient is delinquent in a debt to the United States.
d. Payments for Federal assistance must be made to a specific vendor with an established vendor code. There must be no payments to blank vendors, miscellaneous vendors or Financial Service Centers for Federal assistance programs.
e. Interest earned on Federal advances deposited in interest bearing accounts must be remitted annually to Department of Health and Human Services if the grant is paid via PMS, Payment Management System, Rockville, MD 20852. Or remit annually to Department of State, Accounts Receivable Division if the grant is paid via Form SF-270. The recipient for administrative expense may retain interest amounts up to $500 per year.
4 FAH-3 H-652 federal ASSISTANCE PAYMENTS IN THE global FINANCIAL MANAGEMENT SYSTEM (gfms)
(CT:FMP-91; 08-25-2015)
a. Based on the terms of the Federal assistance agreement, the Bureau will send a signed Form SF-270, Request for Advance or Reimbursement.
b. Requests for payments of Federal assistance will be examined in accordance with the provisions of 4 FAH-3 H-420, Voucher Examination, and certified and paid in accordance with the provisions of 4 FAH-3 H-430, Voucher Certification and Payment.
4 FAH-3 H-653 GRANT AND COOPERATIVE AGREEMENT PAYMENTS IN PAYMENT MANAGEMENT SYSTEM (PMS)
4 FAH-3 H-653.1 General
(CT:FMP-91; 08-25-2015)
a. The Department offers the use of the Department of Health and Human Services (HHS) Payment Management System (PMS) to those organizations awarded grants and cooperative agreements that have established an account with a domestic bank. PMS was selected as the Department’s electronic payment method for these grants. PMS is a U.S. Government-approved grant payment system, which provides automatic transfers of funds to grantees and cash management services for agencies. In accordance with 4 FAM 616, PMS must be used to pay all U.S.-based recipient organizations. The only exceptions to making payments through PMS are when:
(1) The recipient is an individual;
(2) The U.S.-based recipient will only receive a single lump sum payment (a method usually reserved for certain voluntary or assessed contributions to international organizations) under the award agreement; or
(3) The recipient is based overseas and utilizes a non-U.S. bank account.
NOTE: Only domestic bureaus and posts are eligible to use PMS as an electronic payment processor because GFMS has a system interface with PMS that allows for processing. Overseas bureaus and posts are not eligible to use PMS because the Regional Financial Management System (RFMS) does not have the system capability to interface with PMS.
b. If the obligation is made with Washington-held funds that will be obligated through GFMS, contact your Bureau Budget Officer to determine who can assist in processing awards and obligations that will be paid via PMS.
4 FAH-3 H-653.2 Establish Payment Authorization in PMS
(CT:FMP-91; 08-25-2015)
a. At the end of each fiscal year, domestic bureaus should work with the Bureau of the Comptroller and Global Financial Services (CGFS) to ensure that the correct confirmed account numbers (CANs) are properly rolled over in GFMS and PMS at the start of the next fiscal year. Additionally, bureaus should make requests to CGFS when new CANs are needed throughout the fiscal year.
b. All changes in banking information go directly to the bureau and then the bureau sends the request to Department of Health and Human Services, Division of Federal Assistance Financing, PO Box 6021, Rockville, MD 20852. Changes require a new Form SF-1199-A, Direct Deposit Signup Form. A copy of the Form SF-1199-A and a new signature card should be retained by the bureau for recordkeeping.
4 FAH-3 H-653.3 Payment Request
(TL:FMP-13; 09-06-2002)
Recipients who chose PMS as the government payment mechanism may originate cash requests through their own computers using the PMS Smartlink II System, or with touch-tone phones using the PMS Cashline System. When necessary, PMS can also respond to payment requests made through fax or hard copy mailings. PMS processes payments up to the amount of the authorization without action by the Department.
4 FAH-3 H-653.4 Refunds
(CT:FMP-91; 08-25-2015)
All HHS-PMS refunds will be sent directly to the Department of Health and Human Services, Division of Federal Assistance Financing, PO Box 6021, Rockville, MD 20852. Contact HHS-PMS at (301) 441-9180. Refunds must be made by check and made payable to the Department of Health and Human Services (refunds can also be made through PMS if the grantee has multiple awards and requesting a payment on one award and returning fund on another award. The net payment request must be at least $1.00.)
4 FAH-3 H-653.5 Accounting for PMS Accounts in GFMS
(CT:FMP-91; 08-25-2015)
a. The Interface Control Branch of the Payments Division of CGFS will receive a monthly HHS-PMS payment record entitled “Charges by Appropriation.” This report identifies all payments made in HHS-PMS for the Department of State identified with a “19” for the period. The payment record provides appropriation, grant number, resource code and dollar amount. It does not contain the allotment, function, or sector codes.
b. CGFS will prepare a monthly “Schedule Preparation Report” from the HHS-PMS payment record, “Charges by Appropriation,” to post the grant payment. This schedule contains the complete accounting classification (including allotment and function codes) for data input. CGFS obtains an accounting system document master list for each grant obligation number, which shows the complete accounting classification and summaries of all obligations and payments/refunds. Each payment will be entered into GFMS, including the vendor, transaction code, accounting period, and amount. The transaction code is always “G1.” For no-year funds, the report does not provide the funding year; this can be obtained from the obligation screen in GFMS.
c. For any grant where there is not enough money in GFMS to post payment, the payment request may post at the allotment level. When this occurs research must be conducted by the bureau which often includes review of available funding, verification as to why the payment was processed in PMS, and reconciliation of GFMS and PMS amounts. In addition, it may require a reobligation/deobligation memo.
d. The Department must receive the Form SF-224, Statement of Transactions, from HHS. This identifies, by agency (19 for the Department), net payments summed at the appropriation level made through PMS for the month. The general ledger reports “General Ledger Activity Account” for multiple and current years from RMS must be pulled. These two reports must be totaled and reconciled to the total for the Department in the SF-224.
e. CGFS will prepare a reconciliation spreadsheet for each month. This will identify the payment amount by budget year in the general ledger and the amount in Form SF-224 and any differences.
4 FAH-3 H-654 THROUGH H-659 UNASSIGNED