MD.440.9.2, PGM - Conservation Security Program (CSP) Assignments of Payment

Maryland Bulletin: 440-9-2
Subject: PGM - Conservation Security Program (CSP) Assignments of Payment
Date: November 6, 2008

Purpose. To provide policy for FY 2009 Assignments of Payment.

Expiration Date. September 30, 2009.

Explanation. 

During the Office of Inspector General’s (OIG) Maryland CSP audit, OIG noted the high number of assignments of payment for CSP contracts. They specifically identified payment assignments where CSP contract holders received payment from more than one contract. That was a result of share-cropping situations. Therefore, it appeared that contract holders exceeded the statutory payment limits. In consultation with OIG and National Headquarters, please follow the following guidance regarding all assignment of payments:

Part 512.62 provides guidance for assignment of payments. Proper use of assignments may include payment made directly to a contractor for work performed or payment to a financial institution or creditor as a requirement of the loan. There may be other special circumstances when an assignment of payment is warranted. Because NRCS must bear an additional administrative workload, assignment of payment should not be used to pay multiple vendors under a conservation program contract or distribution of payment shares under a contract. When a contract holder requests these types of assignments, the assignment of payment is essentially being used as a bill paying service for the contract holder.

For CSP and all Conservation Program Contracts, the only assignment of payment authorized from the field office will be those where a financial institution or creditor has requested the assignment and the contract holder has submitted to the designated conservationist a completed 1199 signed by the financial institution or creditor. All other requests for assignment will need to be forwarded to Mark Rose for review and approval.

Contact. If you have questions or need assistance, please contact Mark Rose at 443-482-2910 or mark.rose@md.usda.gov.

/s/

M. TIFFANY LAWS
Assistant State Conservationist for Programs (Acting)

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