4 FAH-3 H-650
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 Departments
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