Army Facilities Programs Air FOMA Army Environmental Programs RM Air Environmental Programs Mgmt Army Security CA Air Security CA Army ESS IO&M Air Fire Program Activities Army C4IM Service 15 Army Sustainable Range Programs Army Anti-Terrorism Coordinator Learning Appendix Army / Air OperationsStaff Training Appendix Challenge / Star Base Construction MASTER COOPERATIVE AGREEMENT MCA Army Distributed Learning Program
APPENDIX COMPONENTS Administration: Provides guidance for any administrative requirements required by the Appendix State Military Department (SMD) Operating Budget: Provides guidance to the Federal Program Managers/Resource Advisors on how to receive funding for the program.
APPENDIX COMPONENTS (CONT) Authorized Charges: Provides guidance as to the authorized charges allowed under the appendix UnAuthorized Charges: Provides guidance as to those items that are not allowed to be purchased under the appendix
AUTHORITY NGB’s specific Statutory Authority to enter into Cooperative Agreements begins with the United States Constitution.
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.
THE CONCEPT OF THE NATIONAL GUARD COOPERATIVE AGREEMENT PROGRAM “STATE PAYS” “FEDERAL REIMBURSES”
COOPERATIVE AGREEMENTS ARE BIG BUSINESS
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
Organization Players Relationships FEDERAL STATE National Guard Bureau Governors Office USPFO TAG Financial Mgr (Comp) Resource Mgr Grants Officer Rep (GOR) Agreement Coord Program Mgr/Resource Advisors Program Mgr Facilities Management Off Dir of Installations (FMO) Judge Advocates Gen Attorney Gen Director of Info Mgt Dir of Info Tech (DOIM) Asst USPFOs (Property/Finance)
ASSISTANT USPFOs Appointed in writing by the USPFO The USPFO may place conditions upon the appointment, i.e., training Army National Guard –Real Property (Facility Management Officer) Air National Guard –Fiscal (Base/Wing Comptroller) –Property (Base/Wing Readiness Management Officer) –Real Property (Base Civil Engineer)
Appointed IAW NGR 130-6, Chapter 2, para 2-3, in writing with the TAG/Commander’s concurrence Responsible 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 ASSISTANT USPFOs
COOPERATIVE AGREEMENT PROGRAM MANAGERS (ARNG) Appointed in writing by the USPFO Must be Federal employee Obligates Federal funds IAW Federal laws, regulations and directives Coordinates with State finance personnel State link to NGB-OPR-PMs Provides financial reports Prepares input to annual Federal budget They also have a FIDUCIARY LINK to the USPFO
AIR NATIONAL GUARD RESOURCE ADVISORS (ANG) Appointed by the respective Group/Squadron Commander at the WING Place orders against the program funds Responsible for the proper expenditure of funds within laws and regulations Coordinates with NGB OPMs, GOR, SMD Resource Manager and Wing Financial Manager They do not obligate funds – No FIDUCIARY LINK to the USPFO
FISCAL LAW CONCERNS (Three Elements) (Purpose, Time, Amount) The basis analysis applicable to obligating Federal funds is applicable to Cooperative Agreements
FUNDING APPROVAL FISCAL YEAR
Funding Master Cooperative Agreement > < 5yr Life Initial Funding Arrives With Document Each Appendix Has Own Funding Needs To Be Approved/Signed By: JAG States Attorneys General Office TAG USPFO Copies Forwarded To NGB
Following Years Federal Program Managers Submit Funding Requirements to NGB (USPFO Coord) Upon Approval – An Agreement Modification Is Prepared (GOR) Forwarded to SMD and Federal Program Managers
Letter to Request MOD
Formal Subdivision of Appropriated Funds Congress Office of Management and Budget Office of Secretary of Defense Chief, National Guard Bureau Army Guard Comptroller Air Guard Comptroller USPFO Program ManagerAsst USPFO, Fiscal
Obligations of Cooperative Agreements Program Manager/Air Comptroller Submits request to setup initial or modify CA GOR Reviews request/Prepares CA or modification USPFO and TAG Signature GOR makes distribution Federal PM/RA sets up informal ledger, Army PM enters reservation in AFCOS Federal Accounting ensures obligation is posted in accounting system SMD Resource Mgr sets up data in State Accounting System
Accounting and Tracking of Funds SMD Should Have Knowledge Of Funds During The Year. Federal Program Manager Must Have Knowledge Of Status Of Funds. GOR Should Be Maintaining Complete File On All Appendices.
Process Agreements Are Based On Reimbursement To The SMD For Expenses Incurred In Maintaining the Guard Methods Of Reimbursement: Advance Payment - Known Amount Forwarded To SMD On A Designated Schedule Reimbursement - Monthly Request For Reimbursement For Expenses Which Occurred During The Month
STEPS FOR REIMBURSEMENT Step 1: SMD funds expended Step 2: SMD submits for reimbursement Step 3: Federal Program Manager/Resource Advisor must: –Verify documentation for accuracy –Certify charges are valid and are authorized for payment Step 4: Forward to ARNG (Pay/Exam)/ANG-FM for State Reimbursement
Process Identify 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 Report Prepare Request For Reimbursement (SF 270) - Must Be Signed By Federal Program Manager Forward To USPFO / Or Air Comptroller By AMSCO / Or EEIC Copy Forwarded To GOR
FISP : Facilities Inventory And Support Plan Air Facilities 7115 Report AMSCO : Army Management Structure Code EEIC : Element Of Expense Code
Reimbursement Flowchart Federal PM/RA request supplies, etc. State Military Department Contracts with Vendor Pays Vendor Prepares request for Reimbursement and submits to Federal PM/RA Federal PM/RA reviews request and certifies Forward request to Federal comptroller Federal comptroller ensures funds are obligated to cover reimbursement Reimbursement processed through CAPS as EFT Payment DFAS processes EFT payment to State Military Department
RISK ASSESSMENT Conducted by the Program Manager Assistance may be available from: –Internal Control Program Administrator –Internal Review –Supervisors, past Program Manager Must identify vulnerabilities to determine the extent of controls The risk assessment is not static – it needs continual review
DEFINITION OF INTERNAL CONTROLS SAME AS MANAGEMENT CONTROLS Internal controls are the process that helps ensure mission objectives are met: Helps ensure accountability Does not guarantee success or ensure against waste, fraud or mismanagement, but helps mitigate RISK Three objectives of internal controls: –Effective and efficient operations –Reliable financial reporting –Compliance with applicable laws and regulations
FUNDING APPROVAL FISCAL YEAR
MANAGEMENT CONTROLS Determine which programs within your state may generate Program Income. Validate whether the programs are generating Program Income Is 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?
MANAGEMENT CONTROLS Is 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.
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?
Operations & Maintenance Army - % varies w/FISP Air – 100% (Real Property) 75%
Environmental Army – 100% Air – 75%
Security Guard Army - 100% Air – 100%
Army Electronic Security 100%
Telecommunications & Distance Learning 100%
AntiTerrorism Program Management 100%
Challenge Program Operations – 75% (Appendix 1) Staff Training – 100% (Appendix 3)
THE USPFO IS REQUIRED TO CLOSE OUT THE AGREEMENTS NLT 90 DAYS AFTER THE END OF THE FEDERAL FISCAL YEAR
CLOSE OUT DEFINED When the SMD has submitted their FINAL request for reimbursement, the Cooperative Agreement/ Appendices are considered closed
REQUIREMENTS FOR CLOSURE All items have been received and nothing is on backorder All services have been performed All construction contracts are completed and final payment to contractor has been made
Federal Program Managers must have all requests for services, supplies, etc. to the SMD Resource Manager by established cutoff NLT 30 Sep SMD Resource Manager awards contracts
End of Federal Fiscal Year Need To Closeout Each Appendix (Use Agreement Modification) If Appendixes Need To Remain Open After 30 Dec / Or 90 Days After Termination Of Appendix – A Request For Extension is Forwarded to USPFO.
EQUIPMENT PURCHASED BY THE SMD Purchased by the SMD under a CA Title vested with the SMD SMD uses and manages equipment in accordance with state laws and procedures Equipment used in the program in which acquired
EQUIPMENT PURCHASED THROUGH FEDERAL PROCUREMENT SYSTEM Equipment purchased by the USPFO or Assistant USPFOs utilizing IKA Used by the SMD under a CA Considered Government Furnished Equipment (GFE) Remains the property of the Federal government
EQUIPMENT ACCOUNTABILITY Government Furnished Equipment is accounted for on Federal property books The SMD must maintain property records on SMD acquired equipment The SMD inventories equipment at least once every two years The SMD must certify property accountability to the USPFO