ENROLLMENT LETTER BEING SENT TO RECIPIENTS
The Bureau of Reclamation (Reclamation) is issuing this letter to provide your organization with information regarding a mandatory conversion to a new system for payment of advances and reimbursements to recipients of grants and cooperative agreements. This payment system is being offered as a result of a decision by the Chief Financial Officers Council (CFO) to adopt a major new financial management improvement initiative designed to streamline and reduce the number of grant payment systems currently utilized throughout the Federal government.
In order to comply with this initiative, Reclamation has selected as its payment system the Automated Standard Application for Payment (ASAP) System, made available through the Department of Treasury, Financial Management Service (FMS). Reclamation must offer the use of this system to recipients by no later than October 1, 2002; however, at this time, your organization will not be required to convert to ASAP in order to request payment for current grants and cooperative agreements.
ASAP is a recipient-initiated payment and information system, designed to provide a single point of contact for the request and delivery of Federal funds. Additionally, ASAP provides on-line data for account balances, account history, and status of payment requests. Through ASAP, funds which have been preauthorized by Reclamation can be drawn by your organization to coincide with cash outlays required to meet the needs of your funded programs. Once a request is made through ASAP, funds are provided to your organization either immediately through Fedwire, or within 24 hours through the use of the Automated Clearinghouse (ACH). Requests may be made daily, weekly, or monthly depending on the needs of your organization, and with the use of ACH, payments can be scheduled for future dates.
There is no cost to the recipient for use of this system or for the software which provides access to ASAP. The FMS website at http://www.fms.treas.gov/asap will provide you with an ASAP overview, and information on frequently asked questions, payment formats, hardware and software requirements, enrollment, and training.
Attached to this letter is an Agency Notification Form for your use in indicating whether or not your organization elects to enroll in ASAP. Please complete the form and return it to Reclamation within 2 weeks following receipt of this letter. If you elect to enroll in ASAP, this information will be forwarded to FMS and you will be contacted by a liaison who will assist your organization with the enrollment process. Following enrollment, FMS will continue to be your contact for ASAP training and customer support. After your organization has completed the enrollment process with FMS, you will be contacted by Reclamation to inform you of when you may begin requesting Reclamation payments through ASAP.
Conversion to the ASAP payment system will not change the payment regulations applicable to your organization as stated in the General Provisions of your agreement. For States, local and tribal governments, these requirements are found at 43 CFR 12.61, and for all other recipients, the requirements are at
43 CFR 12.922. For your reference, these regulations are attached to this letter.
These regulations are intended to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of these funds by the recipient. When using ASAP to request payment advances, requests shall be limited to the immediate cash needs of the recipient and should not be requested more than 3 days in advance of need. For recipients that do not elect to use ASAP, payment will continue to be made via the SF-270 Request for Advance or Reimbursement. This form may be submitted on a monthly basis, at least two weeks prior to the date on which the funds are required, and with advance payment requests limited to your immediate cash needs for the following 30-day period.
These regulations also state the requirements for maintenance of advances in interest-bearing accounts and reimbursement of interest to the Federal government. Recipients who cannot comply with these regulations, or who fail to comply with these regulations or other terms of the agreement, may be limited to the reimbursement method of payment. Continued non-compliance may result in withholding of payments, or suspension or termination of your agreement, and may affect your ability to obtain future financial assistance agreements.
If you have questions regarding this matter, please contact Stephanie Bartlett at the letterhead address, Attention: Mail Code 84-27800, or by facsimile at 303-445-6344.
Sincerely,
Linda Waring-Wilson
Manager, Acquisition and
Assistance Management Division
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