MD.250.9.9, FNM - Processing Quarterly Accruals

Maryland Bulletin: 250-9-9
Subject: FNM - Processing Quarterly Accruals
Date: May 29, 2009

Purpose. To provide guidance for processing quarterly accruals

Expiration Date. September 30, 2009.

Explanation.

In compliance with 31 U.S.C. 3512, which mandates accrual accounting for all federal agencies, NRCS in Maryland will process accruals for open obligations in the accounting system on a quarterly basis.

In order to process accruals on a quarterly basis as directed, the following guidance will be used by all offices to process accruals:

ProTracts:

Accruals must be processed for practices completed and certified in ProTracts prior to the end of the quarter. NHQ will run a report 5 days before the end of the month ending the quarter.

If you certified any practices after NHQ reports are ran, you will need to complete and submit an accrual using the attached Accrual Estimate Documentation form (Attachment No.1). This must be completed and submitted to Marie Monn, State Budget Officer, along with a copy of the supporting documents, as soon as the practices have been certified in ProTracts. The supporting document will be one of the following: NRCS-CPA-1155, Conservation Plan or Schedule of Operations; NRCS-CPA-1156, Revision of Plan/Schedule of Operations or Modification of a CPC; or NRCS-CPA-1245, Practice Approval and Payment Application.

Negative responses are not required.

NOTE: If a payment will be processed by the end of the quarter, an accrual will NOT be needed. If a payment is processed before the end of the quarter and accrual information has been forwarded for that payment, contact Marie Monn to make accrual adjustment.

Grants/Agreements:

Accruals must be processed for goods or services received from participants, and the payment will not be processed by the end of the quarter (December 31, March 31, June 30, and September 30).

Marie Monn will provide program managers a list of agreements with open obligations for their program area no later than the 25th day of the month prior to the month ending a quarter.

Program managers are responsible for collecting accrual information from grants/agreements participants. The attached letter (Attachment No. 2) must be mailed to the participant by the 3rd day of the month ending a quarter in order to collect appropriate accrual data for each open obligation. The participant may submit the accrual information by mail, email, fax, or in person to the designated Natural Resources Conservation Service office. If the participant submits no accrual information, the program manager shall make contact by telephone, fax, or email. Copy of the letters, notes of phone calls, and documentation of all attempts to contact the participant must be maintained in the agreement folder. If the participant then submits no accrual information, develop the accrual amount using all information on hand, including the project manager’s specialized knowledge, and document the case using the attached FNM-500-227, Memo for the Record-Project Manager’s Last Contact w/Trading Partner (Attachment No. 3).

The participant’s submitted accrual information shall not be used if it arrives after knowledge based estimates have been entered into the accounting system or the information received is not accurate.

After accrual data is collected, the attached Accrual Estimate Documentation form (Attachment No. 1) must be completed and submitted to Marie Monn along with supporting documentation for each open obligation no later than the 20th day of the month ending the quarter. Negative responses are required.

NOTE: If a payment will be processed by the end of the quarter, an accrual will NOT be needed. If a payment is processed before the end of the quarter and accrual information has been forwarded for that payment, contact Marie Monn to make accrual adjustment.

Construction Contracts and IAS Documents:

Accruals must be processed for goods or services received from vendors, and the payment will not be processed by the end of the quarter (December 31, March 31, June 30, and September 30).

Marie Monn will provide the contracting officer a list of open IAS and Non-IAS obligations no later than the 25th day of the month prior to the month ending a quarter.

The contracting officer is responsible for collecting accrual information from vendors providing goods or services. The attached letter (Attachment No. 4) must be mailed to the participant by the 3rd day of the month ending a quarter in order to collect appropriate accrual data for each open obligation.

The vendor may submit the accrual information by mail, email, fax, or in person to the designated Natural Resources Conservation Service office. If the vendor submits no accrual information, the contracting officer shall make contact by telephone, fax, or email. Copy of the letters, notes of phone calls, and documentation of all attempts to contact the vendor must be maintained in the contract folder. If the vendor then submits no accrual information, develop the accrual amount using all information on hand, including the project manager’s specialized knowledge, and document the case using the attached FNM-500-227, Memo for the Record-Project Manager’s Last Contact w/Trading Partner (Attachment No. 3).

The vendor’s submitted accrual information shall not be used if it arrives after knowledge based estimates have been entered into the accounting system or the information received is not accurate.

After the accrual data is collected, the attached Accrual Estimate Documentation form (Attachment No. 1) must be completed and submitted to Marie Monn along with supporting documentation for each open obligation no later than the 20th day of the month ending the quarter. Negative responses are required.

NOTE: If a payment will be processed by the end of the quarter, an accrual will NOT be needed. If a payment is processed before the end of the quarter and accrual information has been forwarded for that payment, contact Marie Monn to make accrual adjustment.

Travel

Marie Monn will provide program managers a list of open travel authorizations that have not been vouched. This list will comprise of authorization for periods that have already passed or anticipated completion during the month ending the quarter. Program mangers will need to indicate which authorization will not be vouched and will need to be picked up as an accrual. Program Managers will need to sign and return to Marie no later than the 20th day in the month ending the quarter.

Reminder travelers are to process vouchers within 5 working days from returning from travel.

Reimbursable

Program managers with active reimbursable agreements are to provide Marie Monn the reimbursable earnings for the quarter. The earnings are to include actual earnings up to the date the calculations are made and a projection of anticipated earnings to cover the remainder of the quarter. Supporting documentation must be included for actual cost and estimated projections.

The reimbursable accrual projections should be sent to FNM no later than the 20th day of the month ending the quarter.

Contact. All accrual documents must be faxed to (410) 757-0687. If you have questions or need additional guidance, contact Malcolm Reeves, State Administrative Officer, at (443) 482-292 or Marie Monn, Budget Officer, at (443) 482-2924.

/s/

JON F. HALL
State Conservationist

Attachments: See email dated 06/01/2009

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