5 MASTER COOPERATIVE AGREEMENT MCA Challenge / Star BaseArmy / AirConstructionAppendixAppendixArmyFacilities ProgramsAirFOMAOperationsStaff TrainingArmy Environmental Programs RMAir Environmental Programs MgmtArmySecurity CAAir Security CAAir Fire Program ActivitiesArmy ESS IO&MArmyC4IM Service 15Army Sustainable Range ProgramsArmy Anti-Terrorism Coordinator LearningArmy Distributed Learning Program
6 APPENDIX COMPONENTSAdministration: Provides guidance for any administrative requirements required by the AppendixState Military Department (SMD) Operating Budget: Provides guidance to the Federal Program Managers/Resource Advisors on how to receive funding for the program.
7 APPENDIX COMPONENTS (CONT) Authorized Charges: Provides guidance as to the authorized charges allowed under the appendixUnAuthorized Charges: Provides guidance as to those items that are not allowed to be purchased under the appendix
9 AUTHORITY NGB’s specific Statutory Authority to enter into Cooperative Agreements begins with the United States Constitution.
10 AUTHORITY U.S.CONSTITUTION, ARTICLE I, SECTION 8, CLAUSE 16: “TO PROVIDE FOR THE ORGANIZING, ARMING, AND DISCIPLINING THE MILITIA, AND FOR GOVERNING SUCH PART OF THEM AS MAY BE EMPLOYED IN THE SERVICE OF THE UNITED STATES, RESERVING TO THE STATES RESPECTIVELY, THE APPOINTMENT OF OFFICERS, AND THE AUTHORITY OF TRAINING THE MILITIA ACCORDING TO DISCIPLINES PRESCRIBED BY CONGRESS.” NOTE: CONGRESS HAS DELEGATED THIS AUTHORITY TO THE ARMED SERVICES.
11 NATIONAL GUARD COOPERATIVE AGREEMENT PROGRAM THE CONCEPT OF THENATIONAL GUARD COOPERATIVE AGREEMENT PROGRAM“STATE PAYS”“FEDERAL REIMBURSES”
15 MDNG FY10 MCA Funding Army Appendices $5,581, ChalleNGe Program $1,700, Military Construction Cooperative Agreement $9,088, Special Master Cooperative Agreement $1,641, Air Appendices $4,505, $22,516,479.00
16 Organization Players Relationships FEDERAL STATENational Guard Bureau Governors OfficeUSPFO TAGFinancial Mgr (Comp) Resource MgrGrants Officer Rep (GOR) Agreement CoordProgram Mgr/Resource Advisors Program MgrFacilities Management Off Dir of Installations(FMO)Judge Advocates Gen Attorney GenDirector of Info Mgt Dir of Info Tech(DOIM)Asst USPFOs (Property/Finance)
17 ASSISTANT USPFOs Appointed in writing by the USPFO The USPFO may place conditions upon the appointment, i.e., trainingArmy National GuardReal Property (Facility Management Officer)Air National GuardFiscal (Base/Wing Comptroller)Property (Base/Wing Readiness Management Officer)Real Property (Base Civil Engineer)
18 ASSISTANT USPFOsAppointed IAW NGR 130-6, Chapter 2, para 2-3, in writing with the TAG/Commander’s concurrenceResponsible technically and militarily to their Commander or TAG (Title 32)There is a FIDUCIARY LINK between the USPFO and Assistant USPFOs for statutory and regulatory management of their programs
19 COOPERATIVE AGREEMENT PROGRAM MANAGERS(ARNG)Appointed in writing by the USPFOMust be Federal employeeObligates Federal funds IAW Federal laws, regulationsand directivesCoordinates with State finance personnelState link to NGB-OPR-PMsProvides financial reportsPrepares input to annual Federal budgetThey also have a FIDUCIARY LINK to the USPFO
20 AIR NATIONAL GUARD RESOURCE ADVISORS (ANG) Appointed by the respective Group/Squadron Commander at the WINGPlace orders against the program fundsResponsible for the proper expenditure of funds within laws and regulationsCoordinates with NGB OPMs, GOR, SMD Resource Manager and Wing Financial ManagerThey do not obligate funds – No FIDUCIARY LINK to the USPFO
21 FISCAL LAW CONCERNS (Three Elements) (Purpose, Time, Amount) The basis analysis applicable to obligating Federal funds is applicable to Cooperative Agreements
23 Funding Master Cooperative Agreement > < 5yr Life Initial Funding Arrives With DocumentEach Appendix Has Own FundingNeeds To Be Approved/Signed By:JAGStates Attorneys General OfficeTAGUSPFOCopies Forwarded To NGB
24 Following Years Federal Program Managers Submit Funding Requirements to NGB (USPFO Coord)Upon Approval – An Agreement ModificationIs Prepared (GOR)Forwarded to SMD and Federal ProgramManagers
27 Formal Subdivision of Appropriated Funds CongressOffice of Management and BudgetOffice of Secretary of DefenseChief, National Guard BureauArmy Guard ComptrollerAir Guard ComptrollerUSPFOProgram ManagerAsst USPFO, Fiscal
28 Obligations of Cooperative Agreements Program Manager/Air Comptroller Submits request to setup initial or modify CAGOR Reviews request/Prepares CA or modificationUSPFO and TAG SignatureGOR makes distributionFederal PM/RA sets up informal ledger, Army PM enters reservation in AFCOSFederal Accounting ensures obligation is posted in accounting systemSMD Resource Mgr sets up data in State Accounting System
29 Accounting and Tracking of Funds SMD Should Have Knowledge Of FundsDuring The Year.Federal Program Manager Must HaveKnowledge Of Status Of Funds.GOR Should Be Maintaining Complete FileOn All Appendices.
30 ProcessAgreements Are Based On Reimbursement To The SMD For Expenses Incurred In Maintaining the GuardMethods Of Reimbursement:Advance Payment - Known Amount Forwarded To SMD On A Designated ScheduleReimbursement - Monthly Request For Reimbursement For Expenses Which Occurred During The Month
31 STEPS FOR REIMBURSEMENT Step 1: SMD funds expendedStep 2: SMD submits for reimbursementStep 3: Federal Program Manager/Resource Advisor must:Verify documentation for accuracyCertify charges are valid and are authorized for paymentStep 4: Forward to ARNG (Pay/Exam)/ANG-FM for State Reimbursement
33 ProcessIdentify Expense As Non-Reimbursable Or Reimbursable (From Appendix Or NGR 5-1 Chapters)Determine Percentage Of Reimbursement (Appendix,NGR 5-1 Chapters, FISP (Army O&M), Air Facilities 7115 ReportPrepare Request For Reimbursement (SF 270) - Must Be Signed By Federal Program ManagerForward To USPFO / Or Air Comptroller ByAMSCO / Or EEICCopy Forwarded To GOR
35 FISP : Facilities Inventory And Support Plan Air Facilities 7115 ReportAMSCO : Army Management Structure CodeEEIC : Element Of Expense Code
36 Reimbursement Flowchart State Military Department Contracts with Vendor Pays Vendor Prepares request for Reimbursement and submits to Federal PM/RAFederal PM/RA request supplies, etc.Federal PM/RA reviews request and certifies Forward request to Federal comptrollerFederal comptroller ensures funds are obligated to cover reimbursement Reimbursement processed through CAPS as EFT PaymentDFAS processes EFT payment toState Military Department
37 RISK ASSESSMENT Conducted by the Program Manager Assistance may be available from:Internal Control Program AdministratorInternal ReviewSupervisors, past Program ManagerMust identify vulnerabilities to determine the extent of controlsThe risk assessment is not static – it needs continual review
38 DEFINITION OF INTERNAL CONTROLS SAME AS MANAGEMENT CONTROLS Internal controls are the process that helps ensuremission objectives are met:Helps ensure accountabilityDoes not guarantee success or ensure against waste, fraud or mismanagement, but helps mitigate RISKThree objectives of internal controls:Effective and efficient operationsReliable financial reportingCompliance with applicable laws and regulations
40 MANAGEMENT CONTROLSDetermine which programs within your state may generate Program Income.Validate whether the programs are generating Program IncomeIs the Income being submitted to the State Resource Manager?Has the State Resource Manager used the Income to support the appropriate program that generated the Income?Has the GOR modified the appropriate Cooperative Agreement and reported the Income in DAADS?
41 MANAGEMENT CONTROLSIs In-Kind Assistance (IKA) approved by the USPFO as an exception?Has the CA been modified converting cash contribution to IKA with no change in total value? Validate that any State share is applied on future reimbursement.
42 MANAGEMENT CONTROLS Has advance been collected in a timely manner? Do requests for reimbursement meet the cost reimbursement rules of allowable, allocable, reasonable and availability of funds?Has the Federal Program Manager or Assistant USPFO’s certified requests for reimbursement prior to submitting to the Finance Office for payment?
53 THE USPFO IS REQUIRED TO CLOSE OUT THE AGREEMENTS NLT 90 DAYS AFTER THE END OF THE FEDERAL FISCAL YEAR
54 CLOSE OUT DEFINED When the SMD has submitted their FINAL request for reimbursement, the Cooperative Agreement/Appendices are considered closed
55 REQUIREMENTS FOR CLOSURE All items have been received and nothing is on backorderAll services have been performedAll construction contracts are completed and final payment to contractor has been made
56 Federal Program Managers must have all requests for services, supplies, etc. to the SMD Resource Managerby established cutoffNLT 30 Sep SMD Resource Manager awards contracts
58 End of Federal Fiscal Year Need To Closeout Each Appendix(Use Agreement Modification)If Appendixes Need To Remain OpenAfter 30 Dec / Or 90 Days After TerminationOf Appendix – A Request For Extension is Forwarded to USPFO.
59 EQUIPMENT PURCHASED BY THE SMD Purchased by the SMD under a CATitle vested with the SMDSMD uses and manages equipment in accordance with state laws and proceduresEquipment used in the program in which acquired
60 EQUIPMENT PURCHASED THROUGH FEDERAL PROCUREMENT SYSTEM Equipment purchased by the USPFO or Assistant USPFOs utilizing IKAUsed by the SMD under a CAConsidered Government Furnished Equipment (GFE)Remains the property of the Federal government
61 EQUIPMENT ACCOUNTABILITY Government Furnished Equipment is accounted for on Federal property booksThe SMD must maintain property records on SMD acquired equipmentThe SMD inventories equipment at least once every two yearsThe SMD must certify property accountability to the USPFO